02.16.16 EDA Packet - Laserfiche WebLink

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Levy Authority State Statute permits special levying authority for housing and redevelopment authorities up to 0.0185% upon all taxable property, subject to the consent by resolution of the governing body. In addition, a county may, at the request of an economic development authority, levy a tax of up to 0.01813% upon all taxable property. The EDA levy rate may be increased upon following a procedure detailed in state statutes. The proposed bill, however, retains the County Board consent process currently in place for establishing the levy rate and amount under the HRA limits in section 469.033, subd. 6, and, it waives EDA tax levying authority under section 469.107. But, the proposed language reserves the right to levy the higher of the HRA or EDA permissible rates, as they may be determined by the legislature. This provides the County with future flexibility should there be a program or issue that the County determines is appropriate for this purpose. On an annual basis, the HRA Board has prepared a levy request, within its annual budget, of sufficient size to complete its strategic priorities and financial obligations for approval from the County Board. Under the amended enabling law, the CDA would follow the same process in proposing an annual levy request and obtaining the consent of the County Board. Municipal Economic Development Authorities The HRH's current enabling law requires municipal approval prior to the HRA undertaking a housing development. The proposed bill maintains this requirement and adds the municipal approval requirement prior to exercising economic development powers. Offer of Tax Forfeited Land When the County receives real property through the tax forfeiture process, it may determine the property to be appropriate for a housing, redevelopment, or economic development purpose. Currently, the HRA must purchase forfeited parcels in the same process as the general public. The proposed bill adds that such parcels "may" be offered to the CDA in the same manner it would be offered to a County department with justification of public purpose. Composition of CDA Board The proposed bill offers no change in board composition. The HRA Board is currently composed of seven members: five appointees representing each County district, a representative of the County Board of Commissioners, and a representative of the HRA's public housing and/or rental assistance residents. Next Steps Staffing The HRA will hire a full-time Economic Development Director. The director will work closely with municipalities to supplement and complement their economic development programs and projects. The directorwill lead county -wide economic development efforts and manage county- wide financial assistance programs.