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• <br />• <br />WS — Item 2 <br />WORK SESSION STAFF REPORT <br />Work Session Item 2 <br />Date: November 2, 2009 <br />To: City Council <br />From: Mary Divine <br />Re: Amending the composition of the EDA <br />Background <br />In July the city council met with EDAC. EDAC brought up the topic of including <br />representation of EDAC members on the EDA. Council members agreed to <br />consider this modification of the EDA to provide greater communication between <br />the city council and EDAC, and to allow people within the community with <br />business expertise to serve in that capacity. <br />The EDA was originally formed on June 11, 1990. The enabling resolution that <br />was passed specifies the powers which are granted to or withheld from the EDA. <br />The Lino Lakes enabling resolution imposes very few limits on the EDA's power <br />and does not generally require city council approval of any EDA action. It <br />transfers the authority and operation of Economic Development Districts and Tax <br />Increment Financing Districts from the city to the EDA. It also sets up the EDA to <br />be governed by a board of commissioners consisting of the city council <br />members. The terms of the commissioners are to coincide with the terms of <br />office. <br />Purpose of an EDA <br />Attached is a memo from Steve Bubul of Kennedy & Graven explaining the <br />purpose of an EDA. The city and the EDA are separate legal entities. An EDA is <br />usually established because it has more flexibility and legal authority regarding <br />some economic development matters than a city. An EDA can undertake projects <br />with potential liability and only expose the assets of the EDA rather than the <br />assets of a city. <br />Composition of an EDA <br />There are three choices within Minnesota Statutes for the size and makeup of the <br />EDA: <br />a) 3 members, in which case at least 1 must be a member of the city council. <br />1 <br />