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CHAPTER 16 . C. Economic development authorities/port authorities Two development approaches gaining in use are the port authority and the economic development authority. Minn.Stat.§§469.048 to More than 25 cities now have the powers of a port authority under special 469.089. laws and many more have created economic development authorities. NLnn.Stat.§§469.090 to All cities may create economic development authorities that have most of 469.1082. the powers of port authorities. The city may consolidate the economic The Minnesota Department of development authority (EDA)with an existing HRA or the city may grant Employment and Economic the authority HRA powers. The city council may create an EDA by passing Development publishes The Economic Development an enabling resolution. Before adopting the enabling resolution,the city Authorities Handbook. must,first conduct a public hearing. The enabling resolution establishes a For a copy of this book,and for board of commissioners for the EDA. The city council can choose to serve sample resolutions and by laws as the EDA board of commissioners or-create a board composed of a cross- for an EDA,contact the League's section of the community. The mayor,with approval of the council, appoints Research Department at(65 1) the commissioners. The board may consist of three, five or seven members 281-1220 or(800)925-1122. who serve six-year terms. The board is subject to the open meeting law. Minn.Stat.§469.192.See also An EDA is authorized to make a loan to a business,a for-profit or nonprofit • various parts of Minn Stat.§§ organization, or an individual. The loan must be for a purpose the EDA is 469.090 to 469.1082. authorized to carry out under the law. An authorized purpose must deal with or contribute to economic or industrial development. EDAs have the ability to use pooled bond reserving. In most development programs,each bond issue is independent of any other bond issue with a separate service or sinking fund account. EDAs, however,may create a single common bond reserve fund. Under this arrangement, each project's revenues go into a common fund,which in tum pays the bondholders on all projects. Through this pooling mechanism,the security of each project's bond increases and borrowing costs decrease as long as the pool has the necessary volume and diversity of cash flow. Minn.Stat.§469.102. EDAs cannot own and operate facilities or issue debt without an election. The city must authorize the issuance of debt in the resolution creating the EDA. Also,EDAs cannot act outside of districts that are contiguous and qualify as blighted under the tax increment law. 16-10 HANDBOOK FOR MINNESOTA CITIES • This chapter last revised 12/15/20 P 04