06-19-2012 CCM - Laserfiche WebLink

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LAKE ELMO CITY COUNCIL MINUTES JUNE 19, 2012 Page 4 of 7 MOTION: Council Member Smith moved to approve the Financial Planning Agreement between the City of Lake Elmo and Northland Securities for an amount not to exceed $5,280 for the Purpose of Developing a Financial Strategy for the Construction of Water Main and Sewer Force Main in the City’s Growth Areas. The Funds are to be Disbursed Equally from the City’s Undesignated Fund Balance and the City’s Water Utility Fund – With Funds to be Recovered Through Mechanism Determined by the Study. Council Member Park seconded the motion. Motion passed 5-0. ITEM 11: ECONOMIC DEVELOPMENT AUTHORITY (EDA) STRUCTURE DISCUSSION City Administrator Zuleger explained the Minnesota Department of Employment and Economic Development document “Powers of EDA’s” which outlines an Economic Development Authority’s (EDA) responsibilities and the purpose of creating an EDA. He explained the EDA in his opinion would be the most encompassing tool for the City to support and encourage development in both the Old Village and the I-94 Corridor. He noted that quality firms seeking to locate in a community prefer working with an EDA regarding the details of a proposed project since the process can be more streamlined, with the City Council making ultimate decisions based on the groundwork of the EDA. He then explained how the EDA in his former city had done the groundwork for the city to acquire 240 acres for an industrial park that resulted in 1,900 new jobs in the city. Council Member Park inquired whether Paul Donna would have anything to offer with regard to EDA's. Mr. Donna, Northland Securities, gave a brief description of an EDA and explained that an EDA has certain abilities that the Council does not have in the way of financing and contracting. He stated he felt there numerous benefits can come to the city through an EDA, but the EDA structure needed to be assembled thoughtfully. He cited some very positive results cities have made possible through their EDA’s. The Council made inquiries with regard to the roles and the power of an EDA in relation to those of the City Council. Paul Donna stated that an EDA could be structured to stand alone with respect to many development functions, but that many cities choose to limit an EDA’s powers regarding such things as bonding and eminent domain. City Administrator Zuleger explained that the concept of ‘quiet enjoyment’, where a city council can become liable for the actions of an independent EDA even if no “full faith and credit” of the city is pledged to EDA financial programs. City Attorney Snyder stated many cities still have their EDA’s, and for the most part answer to the Council but are the basic development arm of the city. When large scale economic development occurs, most developers expect to be dealing with an EDA, as it is a vehicle for the city to be more tightly engaged with commercial activities. He stressed that the governing documents of the EDA are approved by the City Council. Council Member Park reiterated Council’s discretion on the decision made on how the EDA is structured and its responsibilities. Council Member Park inquired how the EDA may specifically benefit the City in future development.