HomeMy WebLinkAbout2012-03-22 BEDC Packet
AGENDA
CITY OF MAPLEWOOD
BUSINESS AND ECONOMIC DEVELOPMENT COMMISSION
Thursday, March 22, 2012
6:00 P.M.
Council Chambers - Maplewood City Hall
1830 County Road BEast
1. Call to Order
2. Roll Call
3. Approval of Agenda
4. Approval of Minutes:
a. June 23, 2011
b. February 23, 2012
5. New Business:
a. Mark Phillips - DEED Commissioner
6. Unfinished Business:
a. Update on Highway 120 and Interstate 94 Intersection
7. Visitor Presentations:
8. Commission Presentations:
9. Staff Presentations:
a. Development Summary (No Report)
b. Update on Work Plan and Consultant Schedule (No Report)
10. Adjourn
MINUTES
CITY OF MAPLEWOOD
BUSINESS AND ECONOMIC DEVELOPMENT COMMISSION
5:15 p.m., Thursday, June 23, 2011
Council Chambers, Maplewood City Hall
1830 County Road BEast
1. CALL TO ORDER
A meeting of the Commission was held in the City Hall Council Chambers and was called to order
at 5:17 p.m. by Acting Chairperson Ulrich.
2. ROLL CALL
Commissioners
Karen Anderson, Commissioner
David Hesley, Commissioner
Mark Jenkins, Chairperson
Jennifer Lewis, Commissioner
Christine Novak, Commissioner
Beth Ulrich, Commissioner
Warren Wessel, Commissioner
Ayes - All
Staff
Michael Martin, Planner
3. APPROVAL OF AGENDA
Seconded by Commission
The motion passed.
4. APPROVAL OF MINUTES
Commissioner Novak moved to table the April 28. 2011. BEDC minutes.
Seconded by Commissioner Wessel.
Ayes - All
The motion to table passed.
5. NEW BUSINESS
a. New Member Introduction
i. Planner, Michael Martin introduced the new members, Karen Anderson and Jennifer
Lewis to the BE DC Commission. .
ii. Members Karen Anderson and Jennifer Lewis introduced themselves. The current BE DC
members introduced themselves to the new members and shared their background.
June 23, 2011
Business and Economic Development Commission Meeting Minutes
1
. b. St. John's Hospital Trillion BTU Program
i. Planner, Michael Martin gave the report on Sl. John's Hospital Trillion BTU Program.
ii. Peter Klein, Sl. John's Hospital addressed and answered questions of the commission.
Commissioner Wessel moved to approve the loan of UP to $400.000 from the Citv of Maplewood.
in partnership with the Sl. Paul Port Authority. to HealthEast's Sl. John's Hospital for energy
efficiency improvements.
Seconded by Commissioner Lewis.
Ayes - All
The motion passed.
c. Maplewood Living Streets Task Force
i. Planner, Michael Martin gave a brief report on Maplewood Living Streets Task Force and
requested representation from the BEDC.
Commissioner Lewis volunteered to be the representative on the Maplewood Living Streets Task
Force from the BEDC.
None.
6. UNFINISHED BUSINESS
7. VISITOR PRESENTATIONS
None.
8. COMMISSION PRESENT
a. Commissioner report at the panning commission meeting of May 17, 2011. Commissioner
Wessel was scheduled to attend. The item scheduled for review by the Business and
Economic Development Commission at this meeting was the Maplewood Capital
Improvement Plan Public Hearing.
9. STAFF PRESENTATIONS
a. BEDC Meeting Time
i. Planner, Michael Martin stated the BEDC meeting time was at 5: 15 p.m. but will now
change to 6:00 p.m. held on the fourth Thursday of the month.
Commissioner Wessel moved to approve the meeting start time be changed to 6:00 p.m. the
fourth Thursday of the month.
Seconded by Commissioner Novak.
Ayes - All
The motion passed.
June 23, 2011
Business and Economic Development Commission Meeting Minutes
2
b. Election of Vice Chairperson
i. Planner, Michael Martin gave a brief report on electing a Vice Chairperson to repiace
Shelly Strauss who resigned.
Commissioner Wessel moved to table this item until all commission members are presenl.
Seconded by Commissioner Novak.
Ayes -All
The motion passed.
c. Resolution of Appreciation for Shelly Strauss
i. Planner, Michael Martin gave a brief report for the resolution of appreciation for Shelly
Strauss.
Commissioner Novak moved to approve the resolution of appreciation for Shelly Strauss.
Seconded by Commissioner Wessel.
Ayes - All
The motion passed.
Commissioner Noyak moved to
10. ADJOURNMENT
June 23, 2011
Business and Economic Development Commission Meeting Minutes
3
MINUTES OF THE BUSINESS AND ECONOMIC DEVELOPMENT COMMISSION
1830 COUNTY ROAD BEAST, MAPLEWOOD, MINNESOTA
6:00P.M., THURSDAY, FEBRUARY 23,2012
1. CALL TO ORDER
A meeting of the Commission was held in the City Hall Council Chambers and was called to order
. at 6:05 p.m. by Chairperson Jenkins.
2. ROLL CALL
Commissioners
Gary Kloncz, Commissioner
David Hesley, Commissioner
Mark Jenkins, Chairperson
Jennifer Lewis, Commissioner
Beth Ulrich, Commissioner
Warren Wessel, Commissioner
Present
Present
Present
Absent
Present
Present
Commissioner Kloncz moved to a
Ayes - All
Staff
Michael Martin, Planner
3. APPROVAL OF AGENDA
The motion passed.
4. APPROVAL OF MINU
The June 23, 2011, BED
present to approve.
re Tabled due to lack of commission members that are
Commissioner Ulrich moved to approve the BEDC minutes for September 22. 2011. as
submitted.
Seconded by Commissioner Hesley.
Ayes - Chairperson Jenkins,
Commissioner's Hesley
& Ulrich
Abstention - Commissioner's Kloncz,
& Wessel
The motion passed.
Commissioner Hesley moved to approve the BEDC minutes for January 26.2012. as submitted.
Seconded by Commissioner Wessel.
Ayes - Chairperson Jenkins,
Commissioner's Hesley,
Kloncz & Wessel
February 23,2012
Business and Economic Development Commission Meeting Minutes
1
Abstention - Commissioner Ulrich
The motion passed.
5. NEW BUSINESS
a. Capitallmproyement Plan 2013 - 2017
i. Assistant City Manager, Public Works Director, Chuck Ahl gave the report on the Capital
Improvement Plan. .
Commissioner Hesley moved to approve the Capital Improvement Plan for 2013 - 2017.
Seconded by Commissioner Ulrich.
Ayes - All
The motion passed.
6. UNFINISHED BUSINESS
1) BE DC Role in Maplewood Business C
a. Education
i. BEDC Meetings - Guest Spekers i e By Commissioners and staff)
1. Invite businesses to me g in person
2. Share links to gue r vi with businesses
3. If speaker brings m , Ink to materials on BEDC website
ii. Small Business R e on city website
1. Financial, a ources
2. Federal, Sta nd Lo I resources
3. Federal, State al contacts
4. Area Business As ciations
5. Property Finder
b. Listening
i. Encourage a "visitors presentations" participation at BEDC meetings for Maplewood
business owners
ii. Change retention tour from pre-call to drop in visits at Commissioners (and businesses)
convenience. Staff will maintain and distribute a list of Maplewood businesses visited for
Commissioner reference.
1. Focus on businesses near open space or in future development area
2. Consider businesses that have had some press attention, new products, just
expanded, etc
3. Visit new businesses after they have been in Maplewciod for 6 months or so.
iii. Retention visits should include annual visits with Maplewood's top employers
1. Commissioner, staff and City Council representative present at each
2. Visit should be on employer's site.
iv. Include Maplewood Business Open House (meet and mingle) at close of annual
Maplewood Business event at the Maplewood Community Center. Strongly encourage
Commission, staff and Council attendance.
c. Advocacy
February 23, 2012
Business and Economic Development Commission Meeting Minutes
2
i. Commissioners represent Maplewood and Maplewood businesses on area business
associations. Commissioners will give a short report at BEDC meetings concerning
activities and issues discussed at association events/meetings.
1. Saint Paul Area Chamber of Commerce - Mark Jenkins, already a member
2. White Bear Avenue Business Association - OPEN
3. Oakdale Business and Professionals Association - OPEN
4. Others - OPEN
ii. Represent Maplewood and its businesses interests when making recommendations to
Maplewood City Council and Maplewood Area Economic Development Authority
2) How to promote BEDC's new role in the business community
a. Create, print and distribute flyers describing BEDC meetings
i. Flyers should include:
1. Include mission statement or short paragraph describing BEDC and what it can do
for Maplewood businesses.
2. Include Commissioner's contact information for outreach
3. Include Mike Martin's contact info for staff representation and as contact point for
business. visit requests
4. Include City Council liaison's contact info
5. Include website address and short list of resources available on the site
a. Can we get a shorter url for BEDC? . aplewood.mn.us/business (or bedc))
ii. Flyers would be distributed
1. by mail to all registered Maplewood
2. in a business welcome pack (yet t
in Maplewood.
3. by BEDC members at association
4. Available at City hall
b. Commissioners, staff and City Counc
Maplewood businesses
c. Press release to Lillie New
i. Cc'd to area business as i
d. One time BE DC articl m
for all new business registrations
DC meetings when meeting with
I Pioneer Press
clusion in their newsletters
of press release) in Maplewood Monthly
3) BEDC Role in Maplewo City
a. Become knowledge
Maplewood
i. TIF Financing
ii. Loan programs
iii. Federal, State and local business development tools available to Maplewood
b. Become familiar with open or vacant spaces for new and growing businesses
c. Become familiar with the City's future development/redevelopment plans (Gladstone)
d. Become familiar with the businesses in and around the vacant spaces as well as those in
and around any proposed development
e. Be willing to share your own unique business experiences with the Commission and the
Council
f. Attend or watch City Council meetings where BE DC advisories are considered
vernment
ut various business development tools available to
4) Recommendations
a. Use "consultant" dollars towards promoting the BEDC.
i. BEDC Commissioners should be the EDA's consultants
ii. Dollars could be used for
1. design and printing costs of flyers, .
2. association membership costs with area business associations
3. towards an annual BEDC/Council/Business open house at the Community
Center
February 23,2012
Business and Economic Development Commission Meeting Minutes
3
7. VISITOR PRESENTATIONS
None.
8. COMMISSION PRESENTATIONS
Chairperson Jenkins mentioned a new CEO at 3M in Maplewood.
9. STAFF PRESENTATIONS
a. 2011 Annual BEDC Report
i. Planner, Michael Martin gave the 2011 Annual BE DC Report
Commissioner Hesley moved to approve the 2011 Annual BE DC Report.
Seconded by Commissioner Wessel.
Ayes - All
The motion passed.
10. ADJOURNMENT
February 23,2012
Business and Economic Development Commission Meeting Minutes
4
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
James Antonen, City Manager
Michael Martin, AICP, Planner
Update on Highway 120 and Interstate 94 Intersection
March 13, 2012
INTRODUCTION
At the February business and economic development commission meeting (BEDC) the
commission inquired about the Highway 120 and Interstate 94 intersection improvement project.
Staff stated it would provide information at the March BEDC meeting.
DISCUSSION
Attached is a report from Michael Thompson, city engineer, addressed to the city council
requesting approval of a cooperative agreement with the Minnesota Department of
Transportation for this project. The council approved this agreement in February. Also attached
to this report is the handout that was sent to nearby properties before a recent open house and
a map detailing the project as currently proposed.
RECOMMENDATION
Review the attached data to prepare for the March 22, 2012 BEDC meeting.
Attachments:
1. Michael Thompson staff report, dated February 16, 2012
2. Open House Handout
3. Project Layout and Profile
Agenda Item G4
Attachment 1
AGENDA REPORT
TO:
FROM:
SUBJECT:
James Antonen, City Manager
Michael Thompson, Dep. Public Works Director/ City Engineer
TH 120 I Innovation Blvd Signal Improvement, City Project 12-01, Consider
Approval of Cooperative Agreement with Mn/DOT
February 16, 2012
INTRODUCTION
DATE:
The council will consider approving a cooperative agreement with MnlDOT for the Mn/DOT led
improvements slated for TH 120 generally between Innovation Blvd and 1-94, City Project 12-01.
BACKGROUND
Over the past decade various improvements have been explored to address the high number of
crashes that occur at the intersection of Highway 120 and Hudson Boulevard. The majority of crashes
are the right-angle type with those most susceptible being vehicles exiting Hudson Boulevard frontage
road making a through or left turn movement.
Because this intersection has been consistently on MnIDOT's statewide top 200 list for intersections
with high crash rates the problem must be addressed.
DISCUSSION
The proposed improvements include:
. Changes to the Highway 120/ Hudson Blvd intersection from full access to a three quarter
access (There would be no change entering Hudson Blvd from Highway 120, however all
vehicles exiting Hudson Blvd on to Highway 120 would be required to make a right out).
. Addition of an auxiliary lane from Innovation Blvd onto southbound Highway 120 to the freeway
ramp.
. Mill and overlay of Highway 120 from just north of Innovation Blvd down to Brookview Drive.
. Replacement and revision of traffic signals within project limits.
While the project has many benefits, the city of Landfall has conveyed concerns to MnlDOT about the
loss of full access to Highway 120. If a motorist from Landfall wants to access the freeway or head
southbound on Highway 120 a U-turn movement would be required at Innovation Blvd. Drivers would
need to drive a short distance to the north to then head southbound. This is a much safer movement
than currently exists.
Mn/DOT has stated its intent to improve the turning radius for that U-turn movement and also to make it
a protected movement (green arrow).
PROJECT BUDGET
The project budget is $1.7 million with a city municipal state aid share of just under $24,000.
Agenda Item G4
Attachment 1
RECOMMENDATION
It is recommended that the city council adopt the attached resolution ratifying the approval of Cooperative
Agreement 00708R with Mn/DOTfor funding purposes of the Highway 120 /Innovation Blvd signal
improvement project. Changes are authorized if made or approved by the City Attorney.
Attachments:
1. Project Map
2. Resolution
3. Cooperative Agreement 00708
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Agenda Item G4
Attachment 1
Attachment 1
Agenda Item G4
Attachment 2
Attachment 1
CITY OF MAPLEWOOD
RESOLUTION
IT IS RESOLVED that the City of Maplewood enter into MnIl,)bT Agreement No. 00708R with
the State of Minnesota, Department of Transpprtation for the following purposes: '
To provide for payment by the City to the State of the City's share of the costs of the Traffic
Control Signal construction and other associated construction to be performed on Trunk '
Highway No. 120 (Century Avenue) at Innovation Boulevard (3M Road)(formerly Hastings
. Avenue); and for installation of Interconnect on Trunk, Highway No. 120 from Trunk Highway ,
No. 94, South Ramps, to Trunk Highway No. 94, North Ramps, and from Trunk Highway No. '
94, North Ramps, to Innovation Boulevard (3M Road) ) (formerly Hastings Avenue)within the
corporate City limits of Maplewood under State Project No. 6227-57, State Aid Project No. 138- ,
010-020; and City Project No. 12-01 (T.H.120~117) , ,
IT IS FURTHER RESOLVED that the
and the
. . (Title). . . .
are authorized to executethe Agreement and any
(Title)
amendments to the Agreement.
CERTIFICATION
I certify that the above Resolution is an accurate copy of the Resolution adopted by the Council
of the City of Maple wood at an authorized meeting held onthe ' day of
,2012, as shown by the minutes bfthe meeting in my possession.
Subscribed and sworn to before me this
day of ,2012
(Signa.ture)
(Type or Print Nama)
Notary Public
My COlnmissionExpires
(Title)
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STATE OF MINNESOTA
DEPARTMENT OF TRANSPORTATION
And
CITY OF MAPLEWOOD
TRAFFIC CONTROL SIGNAL AGREEMENT
Agenda item G4
Attachment 3
Mn/DOT Contract No: 00708R
Attachment 1
State Project Number (SP)':
Trunk Highway Number (TH):
State Project Number (SP):
City Project:
Signal System ID
6227-57
120=117
138-010-020 ,
12-01 '
21432
Total City Obligation
$118.419.30 '
Anticipated ;Federal Aid
$94.735.44
City Non-Federal Aid
$23.683.86 ,
This Agreement is between the State of Minnesota, acting throilghits Commissioner of Transportation ("State") and
the City of Maplewood acting through its City Council ("City"). "
" ,Recitals", ,,' ,
1. The State will remove the existing Traffic Control Signal and install a new Traffic Control Signal with Street
Lights and Signing ("Signal System"), on Trunk Highway No. 120 (Century Avenue) at Innovation Boulevard
(3M Road)(formerly Hastings Avenne); and instilll Interconnect onTrunk Highway No. 120 from Trunk
Highway No. 94, South Ramps, to Trunk Highway No. 94, North Ramps, and from Trunk Highway No. 94, '
North Ramps, to Innovation Boulevard (3M Road)) (formerly Hastings Avenue) in the City of Maple wood, '
Ramsey County, Minnesota, according to State-prepared plans, specifications and special provisions
designated by the State as State Project Ni>. 6227~57, State Aid Project No. 138-010-020, and City Project No.
12-01 (T.H: 120=117)("Project"); and ' ,/ ""', " ,
2. The State will install an Emergency Vehicle Pre-emption System ("EVP System") and Accessible Pedestrian
Signals ("APS") as part of the new Signal System; and '
, ,
3. The State will furnish the following items: one (1) traffic control signal cabinet and controller, one (1)
Ml\Ifunction Management Unit (MMU), one (1) Ethernet Switch (Ruggedeom RS900G-HI-P-2SFF), one (1)
PTZ II' Camera (Infinova v-I492N-M) with adaptor plate, one (1) SFP Modnle, one (1) Camera Mount (Pelco .
PM20IO), one (1) Camera Power Supply (Pelco WCSI-4), one (1) power cord, patch cable, and Ethernet
jumper, and two (2) 5-section cluster signal indications, ("State Furnished Materials"), according to the
Project Plans; to operate the Signal System covered under this Agreement; and
4. The City wishes to participate inthe costs of the Signal System, APS, EVP System and Interconnect
construction, State Furnished Materials lump sum amolmts and associated construction engineering; and
5. The federally eligible City participation construction and associated construction engineeriug will be reduced
bY,the amoilnt of Federal aid ftmding received for said construction; and
6. The City and the State will participate in the operation aud maintenance of the new Signal System, AI'S, EVP
Syste~ and Interconnect.
7. Mimlesota Statutes ~ 161.20, subdivision 2 authorizes the CornmissiouerofTransportation to make
arrangements with and cooperate with any governmental authority for the purposes of constructing,
maintaining and improving the truuk highway system.
-1-
Receivable 2 Party, Signal Federal Aid (Municipal Agreemellts 1/3111 J)
Agreement
Agenda Item G4
, Attachment:i
Mn/DOT Contract No: 00708R
Attachment 1
1. Term of Agreement; Survival of Terms; Pllins
1.1. Effective date. This Agreement will be effective on the date the State obtains all signatures required by
Minnesota Statutes ~ 16C.05, subdivision 2. " ' ' , ' "
1.2. Expiration date. This Agreement wili expire when all obligations have been satisfactorily fulfilled.
1.3. Survival of terms. All clauses which impose obligations continuing in their nature and which must survive
in order to give effect to their meaning will-survive the expiratiOli ortennination of this Agreement;','
including, without limitation, the following clauses: 8. Liability; Worker Compensatiou Claims; 10. State,
Audits; 11. Government Data'Practices; 12. Governing Law; Jurisdiction; Venue; and 14. Force Majeure.
The tenns and conditions set forth in Article 3. Signal System and EVP System Operation and Maintenance
will survive the expiration of this Agreement, but may be terminated by another Agreement between the'
parties. " "
1.4. Plans, Specifications, Special Provisions. Plans, specifications and special provisions designated by the '
State as State Project No. 6227-57, State Aid Project No. 138"010-020, and City Project No. 12-01
(T.H. 120=1(7) are on file in the office of the Commissioner of Transportation at St. Paul, Minnesota, and
incorporated into this Agreement by reference. ("Project Plans") . " " '
1.5. Exhibits. Preliminary Schedule "I" is on file in the office of the City Engineer and incorporated into this
Agreement by reference. '
2. Construction by the State
2.1. COlltractAward. The State will advertise for bids and award a: construction contract to the lowest,
responsible bidder according to the Project Plans., " '
2.2. Direction, SupervisiOn and Inspection of Constrltction. The State will direct and supervise all construction
activities performed under the construction contract, and perform all constnlction engineering and
inspection functions in connection with the contract construction. All contract construction will be
performed according to the Project Plans.
2.3. Plan Changes, Additionai Construction, Etc.
A. The State will make changes in the Project Plans and contract construction, which may include the City
participation ,construction covered under this Agreement, and will enter into any necessary addenda,
change orders and supplementaLagreements with the State's' contractor that are necessary to cause the
contract construction to be performed and completed in a satisfactory manner. The State District
Engineer's authorized representative will inform the appropriate City official of any proposed addenda,
change orders and supplemental agreements to the construction contract that will affect the City
participation construction covered under this Agreement. '
B. The CitY may request additional work or changes to the work in the plans as part of the construction
contract. Such request will be made by an exchange ofletter(s) with the State. If the State determines
that the requested additional work or plan changes are necessary or desirable and can, be accommodated
without undue disr.uption to the Project, the State will cause the additional work or plan changes to be
made. '
2.4. Satisfactory Completion of Contract. The State will perform all other acts and functions necessary to cause
the construction contract to be completed in a satisfactory manner. '
3. Signal System and EVP System Operation and Maintenance
All operation and maintenance terms, including timing and power provisions, in Traffic Control Signal
Agreement No. 62399, dated Febr~ary 1, 1985, for the existing traffic control signal on T.H. 120 (Century
Avenue) at Innovation Boulevard (3M Road)(formerly Hastings Avenne)will remain in full force and effect. .
-2-
Receivable 2 Party Signal Federal Aid (Municipal Agreements 1I~ 1111)
Agenda Item G4
Attachment 3
Mn/DOT Contract No: 00708R'
3.1. Right of WayAccess. Each party authorizes the other party to enter upontheir respective put\l~Cn~n'r \"'ay
to perform the maintenance activities describea in this Agreement. '
4. Basis of City Cost , . , ," " ' ",'. ',', ' " . '
4.1. SCHEDULE "I". The Preliminary SCHEDULE "I" includes all anticipated City participation construction
items, State Furnished Materials lump sum amounts and the construction engineering cost share covered
under this Agreement, and is based on engineer's estimated unit prices.
. . . l ,
4.2. City Participation Construction. The City wiII participate in the following at the percentages indicated. It is
anticipated that Federal aid funding will be available to the City as defined beloW. The City will be billed.
for the match of their cost participation as shown in the Schedule "I". 'City costs will include an amount
equal to all anticipated Federal aid funding not applied to the federally eligible City participation'
construction, State Furnished Materials and associated construction ~ngineering.. ' . , '
A. 50 Percent will be the City's rate of cost participation for the Signal System, APS, EVP System and
'State Furnished Materials on T.H. 120 (Century Avenue) at Innovation Boulevard (3M Road)(formerly
Hastings Avenue). Federal aid fundswill be applied at a rate of80 Percent. '
B. 50 Percent will be the City's rate of cost participation for State Furnished Materials on T.H. 120
(Century Avenue) at Innovation Boulevard (3M Road) (formerly Hastings Avenue). Federal aid funds
will be applied at arate of80 Percent.
C. 12.50 Percent will be the City's rate of cost participation for Interconnect on Trunk Highway No. 120
from Trunk Highway No. 94, South Ramps, to Trunldiighway No. 94, North Ramps, to Innovation
Boulevard (3M Road). Federal aid funds wilIbe applied at it rate of 80 Percent.
4.3. Construction Engineering Costs. The City will pay a constrllCtionengineering charge equal to 8 percent of
the total City participation construction covered under this Agreement. '
4.4. Plan Changes, Additional Constrllction, Etc. The City will share in the costs of construction contract
addenda, change orders and supplemental agreements that are necessary to complete lhe City participation
construction covered under this Agreement, inchlding any City requested additional work and plan changes.
The State reserves the right to invoice the City for the cost of any additional City requested work arid plan
changes, construction contract addenda, change orders and supplemental agreements, arid associated
construction engineering before the completion of the contraclconstruction. '
5. City Cost and Payment by the City
5.1. City Cost. ~J~I~.~ is the City's estimated share of the costs of the contract construction and State
Furnished Materials, including Federal aid, and the 8 percent construction engineering cost share as shown
in the Preliminary SCHEDULE "I". The Preliminary SCHEDULE ,"I" was prepared using estimated
quantities and \JIlit prices, al).d may include any credits or lump sum costs. Upon award of the construction
contract, the State will prepare a Revised SCHEDULE "I" based on construction contract unit prices.
5.2. Conditions of Payment The City will pay the State the full and complete lump sum amount, minus
anticipated City Federal aid, as shown in the Revised SCHEDULE, "I", after the following conditions have
been met: ' '
A. Execution of this Agreement and transmittal to the City, including a copy ofthe Revised SCHEDULE
"Ill,
B. The City's receipt of a written request from the State for the advancement of funds.
5.3. ,Acceptance of the City's Cost and Completed Constrlletion. The computation by the State ofthe amount
due from the City will be final, binding and conclusive. Acceptance by the State of the completed contract
construction will be final, binding and conclusive upon the City.as to the satisfactory completion of the
contract construction.
-3-
Receivable 2 ~rty SignAl Federal Aid (Municipal Agreements 1/31/11)
Agenda Item G4
Attachment 3
Mn/DOT Contract No: 00708R
S.4. Final Payment, Adelitional City Requesteel Work
l!pon completion of all contract construction and upon computation of the final amount dne the State's
contractOr and determination by the Federitl Highway Administration of the ainount, of its reimbursementto
the State, and only if additional work has been requested under Article 2.3.B of this Agreement, the State
will prepare a Final SCHEDULE "I" and submit a copy to the City. The Final SCHEDULE "I" will be
based on final quantities of any additional City requested participation construction items and the ' .
construction engineering cost share due to additional requested work. The Final SCHEDULE "I" will also
.include City/County costs in an amount equal to all Federal aid funding not appiiedto the federally eligible
City/County participation construction, State Furnished Materials, and associated construction engineering.
The computation by the State of the amouut due from the City will be final, binding and conclusive.
6. Authorized Representatives " , " . , '," ,,' , , ' ' , '
Each party's Authorized Representative is responsible for administering this Agreement and is authorized to give
and receive any notice or demand required or permitted by this Agreement.
6.1. The State's Authorized Representative will be: ,
NamelTitIe: . Allan Espinoza, Mu/DOT Metropolitan District Traffic Engineering, (or succ:>essor)
Address: 1500 County Road B2 West, Roseville, MN 55113
Telephone: (651) 234-7812 .
Fax: (651) 234-7850
E-Mail: allan.espinoza@state.mn.us
Attachment 1
6.2. The City's Authorized Representative will be:
NametTitle: ,Michael Thompson, Maplewood City Engineer / Dep. Director of Public Works
(or successor) ,
Address: 1902 County Rd BEast, Maplewood, MN 55109
Telephone: (651) 249-2403 '
Fax: (651) 249-2409
E-Mail: michael.thompson@ci.maplewood.mn.us
7. Assignment; Amendments; Waiver; Contract Complete
7.1. Assignment. Neither party may assign or transfer any rights or obligations under this Agreement without the
prior consent of the other party and a written assignment agreement, executed and approved by the same
parties who executed and approved this Agreement, or their successors in' office.
7.2. Amendments. Any amendment to this Agreement must be in Writing and will not be effective until it has
been executed and approved by the same parties who executed' and approved the original Agreement, or
their successors in office.
7.3. Waiver. If it party fails to enforce any provision ofthis Agreement, that failure does not waive the provision
or the party's right to subsequently enforce it.
7.4. Contract Complete. This Agreement contains all prior negotiations and agreements between the State and
the City. No other understanding regarding this Agreement, whether written or oral, may be used to bind
eitIler party. '
8. Liability; Worker Compensation Claims
8.1. Each party is responsible for its own acts, omissions and the results thereof to the extent authorized by law
and will not be responsible for the acts and omissions of others and the results thereof. Minnesota Statutes
~ 3.736 and other applicable law govern liability of the State. Minnesota Statutes Chapter 466 and other
applicable law govern liability ofthe City.
-4-
Receivable 2 Party Signal Federal Aid (Municipal Agreements 1131/11)
Agenda Item G4
Attachment 3
Mn/DOT Contract No: '00708R
8 2 E I . 'bl ~ . ]" " I . ..' d h W k _Attachment 1
.. ac 1 party IS respons! e ,or ItS own emp oyees lor any c aUDS arlsmg un er t e or ers Compensation
Act.
9 . Nondiscrimination
Provisions of Minnesota Statutes 9 181.59 and of any applicable law relating to civil rights and discrimination are
considered part of this Agreement. '
10; State Audits
. .. .
, '
Under MilUlesota Statutes 9 16C.05, subdivision 5, the City's books, records, documents, and accounting
procedures and practices relevant to this Agreement are subject to examination by the State and the State Auditor
or Legislative Auditor, as .appropriate, for a minimum of six years from the end of this Agreement.
11. Government Data Practices
, , ,
The City and State must comply with the MilUlesota Govenunent Data Practices Act, Minnesota Statutes Chapter
13, as it applies to all data provided under this Agreement, and as it applies to all data created, collected, received,
stored, used, maintained, or disseminated by the City under this Agreement. The, civil remedies of Minnesota
Statutes 913.08 apply to the release of the data referred to in this clause by either the City .orthe State.
12. Governing Law; Jurisdiction; Venue
Minnesota law governs the validity, interpretation and enforcement of this Agreement. Venue for all legal
proceedings arising out of this Agreement, or its breach, must be in the appropriate state or federal court with
competent jurisdiction in Ranisey County, Minnesota.
13. Termination.
13.1. By Mutual Agreement. This Agreement may' be terminated bymutual agreement of the parties.
13.2. Terminationfor Insufficient Funding. The State may immediately terminate this Agreement ifit does not
obtain funding from the MilUlesota Legislature, or other funding source; or if funding cannot be continued at
a level sufficient to allow for the performance of contract construction under the Project. Tennination must
be by written or fax notice to the City.
14. Force Majeure
Neither party will be responsible to the other for a failure to perform under this Agreement (or a delay in
perfonnance), if such faihire or delay is due to a force majeure event. A force majeure event is an event beyond a
party's reasonable control, including but not limited to, unusually severe' weather, fire, floods, other acts of God,
labor disputes, acts of war or terrorism, or public health emergencies. '
[The remainder of this page has been intentionally left blank]
-5-
Receivable 2 Party Signal Federfll Aid (Municipal Agreements 1/31111)
CITY OF MAPLEWOOD
The undersigned certil)rthat they have lawfully
executed this contract on behalf oflhe Governmental
Unit as required by applicable charter provisions, "
" resolutions or ordinances. .
By:
Title:
Date:
By:
Title:
Date:
Receivable 2 Party Signal Federal Aid (Municipal Agreements ]/31/11)
Agenda Item G4
Attachment 3
, MI1/DOt Contract No: 00708R
Attachment 1
DEPARTMENT OF TRANSPORTATION
Recommended for Approval: .
By:'
Date:
Approved: '
By:
Date:
(District Engineer)
(State Design Engineer)
COMMISSIONER OF ADMINISTRATION
By:
Date:
-6-
(With delegated authority)
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SChedule:
Prellminary DesiQ" OOllcept: September, 2011
Public Meeting:, Nov 91~; 2011
OQnipl~teDeslgn: Dec(!mb~r, 2011
Current LeUlng:February 24~, 2012
Const(ucllon begins: :S.ummer 2012
Project Ben&flts:
. Llmllln9 the higher risk through and
left turn mQVements from HUdson
R\5aq wilt ittGrease safety tor the
Inters6'otloTl.
. Not'allowlng motorists to oross.all Jour
limes of Hwy 120 (through
rnoven'fenls,) ,at thls.lnterseollon
means that.moredrlvers. will turn
around at Innovation Boulevard
,(signaliZed) or will use other routes to
~el to 1-9.4
. Adding an auxiliary lane for
southbound Hwy 120 will allow for
less weaving and traffic flow
disruption.
Project Rlskl\:
. ,Community reaotlon to this solution
with redui:ied access to HWy 120 from
H!.Id$on RoM.
. Business linpacts durIng construction
. Addlllonal trafflo on looal roads. Left
turns onto Hwy 120 at other locallons.
Preliminary Project Cost: $1.3 M
Currllnt estlmata 1$ $1. 7.M
Project Delivery Completed
Proje(lt LQ~_~'P
ProJjJct 'J)il~QrIAfIQfli
. 09nstntot a:% intll!iel:illon; IImlJ ' "
the movements al Hwy120 and
Huds9n ~6ad .to e.Ui1'Ihlate the
unsafewestbourrd through
movements and ,the hill turns
chtQ Hwy120 (rom HUdson
Road.
. Add auxiliary lane from
Innov,atlon Blvd. onto
southbound Hwy 120 to
HUdsonRd;
. Mill ahdoverlay Hwy 120 from
4'h street to Brookvlew Dr.
. Replace or revise signals wflhln
projai;llImlts.
Project History:
Mahy crashes have occurrEld at this hite-rsactlon, With' a majOrity 6f
these crashes being rIght angle crashes Involving vehlcle$ from
Hudson Road making a through movement or left turn. 6ecau$e Qf
that thls Intersection has consistently been In Ihe Statewide Top
200 Ust forlnterseclion$ with high craSh fates. Multiple opllons
have been studied to Improve,safetyil'l tHe area and the current
design was the preferred option thaI alla'gencles agrEred would
best Improve sa'fety.
R_Q_l1JChang~s an~Vp,da.~~;
This proJEl~twa$ otlQlnallY'plElrnedln a001, t]1El.ilydiffllrElrJI.deslgl1s Were
di$(:u$'$lldPEllWellll MI1DOT, MapIElWQo,d,llhdOElKdale. lJltlh1;;itely oomlhlfup
With Il1ls, design IhEltallpartle,s ()QUldagree on.
KllY CO$t EstImate/Funding A$$umptlol1l1:
The fUhding available for this prQ)eot expires In MarOh, $0 the project needs to be
let bef6re then or tile funding 90'e'8 'aWay:
PQbll~"npilJ
Prelim. Design
$~QP,lnll
Plsnnlng
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~E~'If)' ,'", , Mlnneso Ie D ~p'eflm. en I of irensporje.llol1 Metro
, , Dlstrlot - Will~ts a~ge
," 1500WCounty Rd 82
'Oti.' , Roseville. 'Mill 65443
(661) 234-7600 /1'S00.657,3666'
DIstrlcl Engineer: $oott McBride
PI'<iJe~IMan.egilr: Mofiilmmil~ Dehd.9htl
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MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
James Antonen, City Manager
Michael Martin, AICP, Planner
Mark Phillips -'DEED Commissioner
March 13, 2012
INTRODUCTION
Mark Phillips, commissioner of the Minnesota Department of Employment and Economic
Development (DEED), will attend the March business and economic development commission
(BEDC) meeting for a discussion on city-level economic development. Mr. Phillips is a resident
of neighboring Oakdale and a former member of that city's economic development commission.
DISCUSSION
The Minnesota Department of Employment and Economic Development (DEED) is the state's
principal economic development agency. DEED programs promote business recruitment,
expansion, and retention; international trade; workforce development; and community
development. DEED facilitates an economic environment to produce jobs and improve the'
quality of the state's workforce. These actions work to support the economic success of
Minnesota individuals, businesses, and communities by providing opportunities for growth.
DEED's three major functions are to:
. Support business creation, expansion, relocation, and retention in Minnesota.
. Stabilize and stimulate the economy in times of downturn through benefit payments.
. Support the workforce needs of Minnesota's businesses, workers, and communities.
DEED also provides services to local governments through the use of loan and grant programs,
shovel-ready site certification, assistance with building and financing public utility facilities and
assistance with mandatory business subsidy reporting.
EDA Handbook
DEED, along with the Minnesota Economic Development Foundation, Marry Ippel of Briggs and
Morgan and the city of Oakdale, created an EDA Handbook. This handbook is intended to
provided economic development officials deep background on the formation, operation and
powers of local economic development authorities. Staff is attaching this handbook to this
report for the BEDC's review.
RECOMMENDATION
Review the attached data and come to the March 22, 2012 BEDC meeting prepared to discuss
local economic development with Mark Phillips.
Attachments:
1, Oakdale Lake Elmo Review article on Mark Phillips DEED appointment, dated January 26, 2011
2. DEED Economic Development Authority Handbook
Oakdale Lake Elmo Review I Mark Phillips named state DEED commiss...
http://oakdaleiakeelmoreview.com/print.asp? ArticleID~7282&Sectionl...
Attachment 1
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wedneSdaY,January26,2011 -.
Mark Phillips named state DEED commissioner
Job growth a/oeus/or Oakdale resident
Katv Zillmer
staff writer
Wednesday,January26,2011
Mark Phillips found out last week his new appointment as the commissioner of Minnesota's Department of Employment
and Economic Development (DEED) will be under the leadership of a colleague from 25 years ago.
Phillips' colleague now happens to be the top leader of the state, Gov. Mark Dayton.
Phillips, an.Oakdale resident, has served on the city's EconomiC Development Commission (EDe) fOf three years.
Coming from a backgrou,nd and lengthy career in economic development, Phillips said he knew there would be an
opening for the DEED commissioner when Gov. Dayton took office.
. He said it's been "a whirlwind" since his appointment just over a week ago.
submitted photo
Mark Phillips of Oakdale Given his experience in the field, Phillips decided to apply for the commissioner job, had an interview, but didn't hear
speaks at a press conference to from Gov. Dayton for some time. Then, in just a two*week span, he had a second interview and found out he got the
announce his appointment by job.
Gov. Mark Dayton as
commissioner of the
Department of Employment
and Economic Development. "I'm honored to be selected," he said. "It's going to be a little bit of a daunting task to start with, but I'm sure we'll get
through."
He has since resigned as director of business development for Kraus~Anderson Construction in Circle Pines. His wife,
Patty, is the North St. Paul*Maplewood-Oakdale School District superintendent.
Phillips is a former director of Community and Economic Development with the Iron Range Resources and Rehabilitation Board and worked in that role
while Gov. Rudy Perpich was in office. Perpich served from 1976 to 1979 and 1983 to 1991.
Dayton is also a former DEED commissioner from the 1980s and worked with Perpich as well, Phillips said.
Common goals
"Both (Dayton) and I want to engage the business community more in economic development and find out if what we're doing in the department aligns with
the business community," Phillips said.
With the economy starting to rebound from the Great Recession, Phillips said he needs to make sure DEED is running efficiently. There are 1,800
employees In the department in addition to workforce development centers across the state, he said.
While he may not be" able to serve on the Oakdale EDC anymore, Phillips said he will still work with the city.
"If they need help, I will give it to them," he said.
During his time on the Oakdale EDC, Phillips was a key partner in the city's ongoing focus on redevelopment and new businesses, said Dave Schaps, the
assistant to the city administrator.
"He was a wonderful resource In that he's got a background in economic development. He was a very good sounding board to talk about the city's
approach with the business community," Schaps said.
Partners In job growth
Dayton appointed Phillips as DEED commissioner with two other cabinet members who will help with the state's job growth efforts.
Dayton re*appointed John Edman as the director of Explore Minnesota, the state agency that promotes tourism. Kathy Tunheim will serve as a volunteer
senior job creation advisor for Dayton to push outreach efforts for job growth, according to a press release from the governor's office.
"The best solutions to Minnesota's chronic budget deficits are jobs and economic growth," said Dayton in the media statement. "They will be my top
priorities and these three outstanding leaders will be tremendous partners in putting these words into action. I will work closely with this strong team of
Kathy Tunheim, Mark Phillips and John Edman to encourage Minnesota's economic growth and help put Minnesotans back to work," he said.
lof2
3/15/201211:41 AM
Oakdale Lake Elmo Review I Mark Phiilips named slale DEED commiss...
http://oakdalelakeelmoreview.com/print.asp? ArlicleID~7282&Seclionl...
Attachment 1
Phillips has economic development experience in the metro area and throughout the state. He was also director of development for Minnesota Power and
vice president of Northeast Ventures Corporation. He is a recipient of the Economic Development Association of Minnesota's Career Achievement Award.
A goo~ match
When asked her reaction to her husband's appointment, Patty Phillips said she is happy Mark is returning to economic development. "Most of our life
together he's worked in that career," she said. "It's what he loves to do. He's very passionate about It. It's a good fit when you can match your passion with
your vocation."
Phillips said he will start as DEED commissioner on Jan, 31.
"It will be a learning curve and a common goal with the governor is engaging the business community in a dialogue in understanding a way we can be
helpful to them," he said,
"Gov. Dayton has made it clear that jobs are his No, 1 priority, and I am ready to get to work to enhance Minnesota's economic environment and support
the governor in his mission to get Minnesotans working again,"
Katy Ziflmercan be reached at kziflmer@liIlienews.com or at 651-748-7822,
(g:::Wt!.6.Ri;Ziil~ii1j:;;)
Contenl@2012U1lleSuburbanNewspapers
Software@1998-20121upISoftware,AlIRightsReserved
20f2
3/15/201211:41 AM
Attachment 2
ECONOMIC
DEVELOPMENT
AUTHORITY
HANDBOOK
October 2011
i~~ MINNESOTA
, ECONOMIC DEVELOPMENT
.. FOUNDATION
l3ulidlng Stronger Mlnnewta Communities
~. POSITIVEl~7'_
, " rutlte5(JUf/.
Dlprlltment fEmp~)'mantand ECOtlomloDovtlropment
."""',....,'"
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PREFACE
. . . - . . . " '. . '. ',.' "'
In ,these uncertain economic tiWes, it i~ mori} important than. ever for cities, t6 develop' and utilize,
sound economic development procedures and practices to addr,ess l)n ever, )liore ,complex and
changing marketplace. '
This handbook has been prepared as a guide to assist local economic development leaders to
ut.ilize their limited resources in the best practical manner. Furthermore, this handbook seeks to
ascertain methods in which one can better set up one's EDA to make it more efficient and
effective in utilizing scarce resources. The key to successful economic development is
communication with local businesses to learn of their needs and concerns, and to determine how
to best use the community's resources to address those concerns.
Throughout my career in various economic development roles, I have seen, firsthand, just how
vital development tools such .as EDAs, Housing' and Redevelopment Authorities, and Port
Authorities can be to a community in building a vibrant business climate and in generating
significant employment opportunities. Early in my career at the Region Nine Development
Commission, I would have given anything to have a document such as this to utilizel As a
B\lsiness Finance Specialist with the Minnesota Department of Trade and Economic
Development (now MN DEED) I was able to see directly just how important EDAs are to local
communities and how they could be utilized to great effect by cities in Southern Minnesota. In
addition, the ability to utilize EDA powers, significantly benefited economic development
through my tenure as Community DeveloPment Director :in ,the City of Roseville and as City
Administrator for Oakdale. In both communities/l ,fOUl1d' the use of an EDA (01' similar
authorities) to be an invaluable tool in niany development and redevelopment projects.
"
I would like to offer special thanks to a number of individuals for their hard work and dedication
in updating this handbook. I would, especially like to thank Mary lppel from Briggs and Morgan
for her experience and for her extensive help preparing this handbook. I would also like to thank
the City of Oakdale staff including Assistant to the Administrator Dave Schaps, for coordinating
the update of this handbook and compiling the information, and Intern Devin Swanberg for
conducting the background research. In addition, my thanks to the Minnesota Economic
Development Foundation for funding this project, the Minnesota Department of Employment
and Economic Development forits review and subsequent publication of the handbook, and the
Economic Development Association of Minnesota for its review of the handbook. We hope this
guide will help you in your own economic development endeavors. Now go out there and create
jobs and develop that tax basel,
Sincerely,
Craig A. Waldron,
City Administrator, ICMA-CM
City of Oakdale
ACKNOWLEDGEMENTS
. The.Minnesota Economic Development Foundation would -like to thank and acknowledge the
e'fforts of Mary lppel of Briggs and Morgan and the City 'Of Oakdale stliffbn thewritilig and
(;clInpiling ofthe infdrmation contained in this'document:' ' .
'"
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: oj.
www.ci.oakdale.mn.us.
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BRIGGS
B H I () (1 f)
ND
PROFESSIONAL ASSOCIATION
www.briggs.com
ii
TABLE OF CONTENTS
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" 1 ' " .... "".',: "",," ,. :'."; .:".11 :; ..
A,ckriowledgem~nis ...,......................,....,...............................................,................,......;....,.............. 11
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in~r6dijpiion t,Q. Local EponoJTIic b~~ejri#liiel).i Qrgal1izations .,. ..,":..:;:~.: .~.:. ..::.:. ::.. .:;,.. .:...',m.;,. :.... ...1
,:', '.'..~~~~r,;~~!ta~~~;~~~~~$ri;:::~::;::::.:::::;::::::::::.:::::::::.:,::~:;:.::::,::.:::~,:.:::;::;:::::::::::::::;:::::::.::\:;'::;::;::::.::::l
qov~mm~nt.O.rgan]?)~tlOl1~' .:.::.:..:,.:~~:"..;....,........,....., .....,...".. ......,........ ...... ..m.,::... ..,..... ,...,::.... ','," ..2
". . . . . ... I , . . . , '
, P6rli1~ti9~ an\\qp~~ah~~ofEco!101J11~O~~eloPll1e!1iA\lthiirlties (EOA).....:;;::..,.. .:. ..,.. ...~..'..~ .:... ,..4
'. ,,', .Reason~, ~or Forlliing '~\1.EDA 'j"":';;"':':" .,'. ....;.: .~!::....: .;.:......,:;.:."...:. ,;. .:!'.:,,,:.,:. ,..:. ..... ....:.,......4
, , PrOC~411(eS Jor' ~stablishirig arEPA :,:..:;,.,....... ..~m,..:. :...:.. ':"" ..,;. .,;.. ...... :;::..."..::. ,.,... ....... .~......4
, Board of Commissioliers.'......,...::::.,:.:::.....................:......::.....:.......:.....:.....;;..;........:.:....:............7
'. . ,., ,.. .".. '_I' . I' ., .' "
Officers, Dllties and Organizational Issues ....'..........,.....:..........:...:..::.......:......,:..;..:.......:...;....9
Powers of EDAs ...........................................................................................................................16
General Powers and, Purposes ................................................................................................16
Specific Powers.............. .................. ............. ................ ................... ..................................... .17
Financing and Bonding Powers ..............................................................................................23
Limitation of Powers ... ................ .................. ............. ............................................. ......... ....25
Glossary... ......... .............. ................... ................ ............. ..... ......... ........... ................ ................ ......27
Tables...... ................... ....................... .... ................ ...... ............. ........ ....... ................ ..... ...... ...... ......3 0
Sample Bylaws and Enabling Resolutions, ..................................................................................34
Sample Job Description .. .................. ................................................. ...... ...................... ........... ....48
Sample Revolving Loan Fund Policy ............................................................................................51
Hi
NOTICE
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. The Minnesota Econohiic Development Foundation; the Mirmesotii Department' of Employment
and Economic Development, the Economic Development Association of Minnesota, and ,the
authOrs and editcitilof this publication have used their best efforts in 'preparing tIlis puliIrcatlon;
and they make no representations or warranties with respect to the accuracy or completeness of .
the contents of this publication '. ani!' speCifically' disclalili 'liiiy'impiied !war~~htle8of
nierchantability or fitness for a palticullir purpose. "the advice alid strategies c()ntalllCid 'herein
, ;..... .",. 'I,..,
niaynot"besultlible for yoU!' situation. Any interpretations and opinions ani'Jiot iiItended to
reflect any position of the Minnesota Economic Development FOtuidatl'oiJ;'ilie'Mlnhesota
Department of Employment and E90~01rtic Development, the Economic Development
Association of Minnesota, or the law t'i6ris; branches of government; ot QrganizatfO/ls'with which
the' authors and editors are associated, unless they 'have be~n specit1caJIy adopt~d'by such
organizations. If legal advice or other professional 'lis~i8taIice iii required, 'the"services of a
competent professional person should' be sought. ",. , ..,". ,,,
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INTRODUCTION TO LOCAL,ECONOMIC
DEVELOPMENT ORGANIZATIONS,'
There are' several types of organizational strUctures available' for community economic
development programs. The type of organizaiion that a community decides to establlshis
dependent on the special activities that are targeted. In some communities, business development
and job creation are ,the primary goals, while others have housinlj"development as a priority.
MallY communities have existing community economic development groups. There are ,several
different kirids, Of organizations availabi.e that focus ope~o'n:cinlle growth. The type of growth
that acomnlunity wishes to achieve will dictate what tyPe of group wWbe formed~ In addition,
the pljrpose and creation of the orga!lizatioi1 will' impact the statutory powers available to the
entity.'Each of these organizations may focus oil differentisinies such as housing development,
creation of jobs, and business development. The majority of community groups focus on
economic growth opposed to housing growth.
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Qlitlin9d b!,lowis a brief description of each type of development organization.
. , . . - . ,. , . .
B~~iriess()riianizations
, "
Commercial Club: Usually an incorporated 501 (c)(4) or (6) organization whose purpose is to
promote community and retail events. This group is usually made up of local retail owners and
owners of-Ideal businesses. This is an unpaid organization consisting of volunteers and has no
staff. '
chamber'of Commerce: A chamber is an incorporated non"profit 501(c)(4) or (6) that is
generally affiliated with the state and national chamber of commerce. The chamber consists of
. local business professionals of the corimmnity who meet together to promote local businesses
'and the community. Generally, they have an elected board with limited staff. Larger chambers
often deal with tourism and overall business development of the community.. They sometimes
are politically active and can be a powerful lobbying force when dealing with policy that affects
the community's economic strategy. Chambers are generally active and can hold educational and
other eventsJor local businesses.
Develoliment CorDorations
For-Profit: A corporation formed to develop and sell industrial land and/or provide financing
for business development within the community. Local Investors can buy shares that can be paid
ihdividends from profits made on projects. Money invested in corporations can be repaid to the
stockholders. 'The board is made lip of shareholders and mayor may not have staff. The
corporation is subject to federal and state Income tax.
Non-Profit: A corporation formed to develop and sell industrial land and/or provide financing
for business development in the community. Shares are sold or funds may be raised in other
wayiNo, dividends are paid on shares. The non-profit corporation must obtain either 501(c)(3)
or SOI(c)(4) status from the IRS. Doniltions made to a 501(c)(3) by both individuals and
I
businesses are tax deductible. Obtaining 501 (c)(3) status can be difficult, expensive and time-
consuming and many communities are not willing to go through the lengthy process. Although
501(c)(4) status Is less difficult to obtain than 501(c)(3) status, only a business may make
contributions that are tax deductible, individual 'contributions. are not eligible for .the tax
deduction. Also, organizations with 501(c)(3) are prohibited from directly or indirectly
participating in, or iptervening in, any political campaign on b,ehalf of or against any candidate
for,\llective public office. '
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Government Orf!anlzatlons
Economic Deveiopment Commls~ion: A boar4 used to' advise a City Council, appointed by the
Mayor and/or City Council. It has limited or no declsion making authority and is used as a
sounding board or a first point of contact for the CiiyCouncil on development projects. The
cOmmissi<>n is u!led to draft 'strategies atidpolicies'for ratification and implementation of)ocal
pians on a volunteer b,asls. " ". " ' ' " ,
Housing Redevelopment Authority (HRA): An HRA is a public corporation with power to
undertake certain types pf housing and redevelopment or renewal activities, While state
legislation conveys authority for housing and redevelopment in each City, it is up to the City
Council to formally establish an HRA before it can do business and uS,e its powers. Once a
council legally establishes an HRA, it may undertake certain types of planning and community
aevelopment activities on its own with counciIapproval.
, ,
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~ort A.uthority: This is a legal entity created by the State Legislature to promote the general
welfare of Ii City's port distflct, increase the voiume of commerce in the port and provide
facilities for ,handling, storage and shipment of freight. The Port Authority actively develops,
commerce, within the City and canenabie business location and expansion. ,The powers of a Port '
Al\thority,aremore expansive then those of au. HRA or an BDA. The State Legislature
authorizes the creation of Port Authorities. A Port Authority Is ,a separate political entity with
,the rjght to sue and be sued in i~own name llnd Is generally organized to increase commerce in
a City. Unlike'BOAs and HRAs, a Port Authority may issue general obligation bonds without
holding ,an 'e!C!{tion.
JointPow~~s Board: This is a board created by multiple Cities, Townships or Counties for a
certain purpose, such as economic development. The agreement between the units of government
would specifically describe activities and powers that the board exercises in carrying out its
duties. '
'.i,_
Economic,Devel9pment Authority (EDA): An EDA is a legal entity created by a City 01' a
County to facilitate a well-rounded development program by taking advantage of some of the
port authority powers and a1i of the HRApowers. By combining and utilizing HRA, EOA and
City powers, community leaders are able to create flel'ible business assistance and development
programs. EOAs for example, are allowed, to buy and sell property; make loans and grants to
businesses; provide guarantees 01' other credit enhancements; and to sell bonds.
All Cities bve authority from the State Legislature to create an EDA. The City may consolidate
the EDA with an existing HRA, or the City may establish the BOA as a separate entity. The City
2
Council may create an EDA bY' passing au'eriabliiig'resoluti(ln;' ,aefore. adopting the.eriabling
resolution, the City must 'first conduct a public hearing. Tile ,ena~ling.resolution:eslabli~hes a
Board of Commissioners for the EDA. The City Counell can choose to serve as the EDA Board
of Commissioners or create a board composed of council members .an4com.munity members.
The'Mayor, with' approval of the Councjl, appoints the Commissioners. The Board may consist
Of,thrlll)"fivepl' seyeJ.:\ ,mePlbersWho serv.e,six~year;ter!11s,The I~oard is subject to the, open
m~et!/lg,law.." ... ',i' ' .
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R~ral. D~velopineiltl<'1n~.nceAuthii~iW ~:fp~)iA'no#profit'~orpor~~io~, eSlablish~~ by a
CO\,rity. or group, of GO\'!1t1es .through; speclall11lillsI,at!pfi:. RfI)As are .deslgned to facll.ltate. the
production and processing ofagdculttii'al productS and promote jobs 'ill agriculture anCl natuml
resources industries. The board is appointed by the County Board of Commissioners. ' ,
. , . . '.
Note: Please seeapPend1'x' for:ll, fable c~mparingse\~cted development laws. '
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FORMATIONAND OPERATIONOF ANECONOMIC
DE;VELOPMENT AUTHORITY ';
.( , '.' ','
Jl;l)~son~ for ForminllaD EDA
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1h~.Minnesota Legislature granted Cities the power to create' econo1i1ic develop'rileni' authorities
in 1987. By giving Cities this ability they can promote economic growth. BOAs were cre'ated to
wor!<: .in. conjunction with and to facilitate other economic development organizations such as
P9rt Ai)thorities andiIousing Redevetopment Authorities (HRA)~ This allows Cities to create a
b~~ej.iipi>i:oach to economic developni.en~ alIowing them to createfle'iilb'leblisiness assiktance
and development programs. ,"" .,", ,'." . .'" "..". '.""
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In addition to HRA powers, BOAs were authorized to exercise the powers of Cities in connection
with City development districts and the powers of rilUniCipaiities or development agencies in
connection with municipal industrial development. By consolidating the powers of economic and
housing development into one body, City officials are not only able to focus ' development on
blighted areas but, also create programs that will prevent blight from occurring elsewhere within
the community.
The primary powers of an BOA:
· Serve to promote business and to recruit new businesses
. Issue revenue, bonds.
. Acquiring property.
. Purchase and sell land.
. Serve as a limited partner.
. Make or guarantee or other credit enhancements.
. Issue general obligation bonds (approved by election).
Procedures for Establishi"!! a" EDA
In order for a City to create an BOA the City Council must adopt a written resolution calIed an
enabling resolution. A County can also create an BOA. This handbook describes the process for
Cities to establish an BOA. Through the enabling resolution BOA's are granted all of the powers
described in Minnesota Statutes, 469.090-1082, subject to any limitation on those powers as
speclfled by the City. BOA's are also granted the powers given to HRAs in the HRA law,
powers almost identical to Port Authorities under the Port Authority Law and alI of the
development powers granted to a City under the municipal development district law and the
industrial development act.
Before adopting an enabling resolution the City Councll must hold a public hearing and it must
detennine the number of Board Members to be on the BOA. The notice of the public hearing
must identify the place and time of the hearing, brief statement ofthe purpose of the hearing, and
the notice must contain a summary of the resolution. The notice of public hearing must be
published in newspaper of general circulation once a week for two consecutive weeks prior to
4
the meeting. The' first'publicatioi{,mist'iippearnot m<irethiln 30'days:frb'm the ditte of the public
hearing. " .
','"
, Without limiting the right of the BDA to petition the City Council irt'.~nytln1e, \lach year, within
60 days of the anniversary date of the first adbpt(oii.of'th~'en~b.ling lreS(ililtion" the BOA shall
submit to the City Council a report stating whether arid' how the enabling resolution should be
modified. Within 30 days, of receiving the recommendation;' the City Council shall review the
enabling resolution;' cO'nsiderthetecommendation of the BOA, and make any modification it
considers appropriate(Minri,..~tai. ~ 469.092, Subd. 3). ,., , "
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All modifications to the enabling resolution must be by written resd!utiim and must be adopted
after notice is given and Ii public hearing conducted as required for the original adoption of the
enabling resolution (Minn. stat., ~ 469.093, Subd. 2). ' ,
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An BOA is a publiC body cOfp6rate and politic as well as a political subdivision o.f the State of
Minnesota' with thll ri!lbt,to'sue 0.1' be sued in its own name. An BOA carries ,out an essential
. .., -." '" "
gov~rnmental functio.n when it\lxei'cises its powers, but is n()t:imlllUl}1l from liability because of
this. (Minn. Stat. ~469.091;Subd. 2)
5
En~~\ing Resolution, :aylaw~, T!'ansf(lr Resolution ,and Qrlfillan,ce ,('hecklist
----' Board Size (Optional)
_.3- Minimum of I. City Council member, ,,'
'... ,5~Minimumof2Cltytouncllmeniber~
, , ..,..,--,- 7':.': Minimum of2 City Council members '
"~"l"','.'-i" ..':. ".'.;
'~ Offic0rslStaffl'owers and Duties
- President'
- Vice President
. Treasurer
, ~ .;A.ssist~nt Treasu\'er, '
. Procedures '
- _ - Board Compensation
_ - Budget
~.Fisclil Year
~- Corporate Seal'
,,) ~ . AnriulillMdnthly/Special Meetings
, _ - Depositories
_ Committee Structure (optional)
_ - Local Publicity
_ - Planning and Zoning
_ . Sites and Buildings
_ Transfer of Authority and Programs
_ Economle Development Powers
_ - Economic Development Districts
-'- . Acquisition of Property
_ . Eminent Domain
_ - Limited Partnerships
.:...:....... - Acceptance of Public Land
_ - Public Facilities
_ - Studies/Analysis/Research
_ - Loans
_ - Mined Underground Space
- Advances
~ Housing and Redevelopment Powers
, _ . Acquisition of Open Land
_ - Sale of Real/Personal Property
_ - Comprehensive Plans
_ - Joint Powers Agreements
_ - Bonding Authority
_ - Property Tax Exemption
- Rehabilitation Loan/Grants
Limitations on Powers
- Limitations on All Powers
",,"
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, , . ~ Executi~e Director '
~-Engi~eers ;,' .",'
~ - TechnicaVSupportStaff
:~ - Secr~tary '",
_'-Quo'rum
, - Treasurer's Bond
~'. ReportstFlnancillls/Audits '
= ~ professlonallTecimi~al Services
_ -Amendments to By.Laws '
- Contlict ofInterest
_ - Business Retention and Expansion
_ - Marketing
_ . Advisory
~ . Redevelopment Distrlcts
_ - Options
- Contracts
=' - Rights and Easements
_ - Foreign Trade Zone
_ - Government Agent
- Public Relations
- Use of Proceeds
_ - Levy of Taxes
- Issuance of Bonds
_ - Acqulsition of Unused Land
_ - Studles
_ - Inventory ofLandlBuildings
_ . Parking Facillties
_ - Special Benefit Tax
_ - Borrowing! Acceptance of Funds
_ - Interest Reduction Program
- Limitations on Individual Powers
6
Board of Commissioners of ED A
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Thil' City CQuncil must 'de~rmine' the'size' and makeup 'of a Bodrd ofCommissior\ers;The' City
Cbliricil may serve as the'B'6afd of Commissioriers or itcaIl'<Ji'eate'a board that-lncludesmerribers
of the community. i' ." , ,", , ,",',
The Board shall be appointed as follows:
~ '.',/", -. .
A:'.' "Three-memb'er,EDA:' the 'Commissioners constituting a' three-member .EDA,'one of
" i ',,' whoinmustbe li'memlierQfthe City Councll;"sh\dlbe:appointed byiheMayor'with: the
,;'",,, ,approval of tlieOity'CDouncil/Those illitililly'iappoil1:tedshalllie appointed for termS of
two, fout;lind' ~ij('yeats,t('spectively. Thereaftet;aJI Coinmlssionersshallbe'opjloitlted
for six-year tenus.
.~ : " .
B. Five-member EDA: the Commissioners constituting a five-member EDA, two of whom
must be members of the City Council, shall be appointed by the Mayor with the approval
of the City Council. Those initially appointed shall be appointed for tenus of two, three,
four, five and six years respectively. Thetellftel"all Gori1missioners shall be appointed for
six-year. tenus.
C. Seven-member EDA: the Commissioners constituting a seven-member EDA, two of
whom must be members of the City Council, shall be appointed by the Mayor with the
approval of the City'Council. Those initially appointed shall be appointed for terms of
one, two,' three, -four, and five years respectively and two members for six years.
Thereafter all Commissioners shall be appointed for six-year tenus.
An EDA may be increased from three to five 01" seven members or from five to seven members
by a resolution adopted by the City Council following the procedures provided for modifying the
enabling resolution.
Cause for Removal
A Cominissioner may be removed by the City Council for inefficiency, neglect of duty, or
misconduct in office. A Commissioner shall be removed only after a hearing. A copy of the
charges must be given to the Commissioner at least ten days before the hearing. The
Commissioner must be given an opportunity to be heard in person or by counsel at the hearing.
When written charges have been submitted against a Commissioner, the City Council may
temporarily suspend the Commissioner. If the City Council finds that those charges have not
been substantiated, the Commissioner shall be immediately reinstated. If a Commissioner is
removed, a record of the proceedings, together with the charges and findings, shall be filed in the
office of the City clerk.
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Vacancy
A vacancy is created in the membership of an BDA when a City Council member of the J:i;DA
ends 'council mep1bership. A vacancy for this or another reason must be filled for the ballmce of
the~unexpired,tllrm..ln the ,mannllr.in w~ichtheoriginal appolmment,was, !!lade. ,The City
Gau(ll(j\Jnay.set the tenn (lfthe cQmmissioners w)1o'afll members:ofthe c,ity Council to coincide
with their term of office as members of the City Council.'
Committees
The..Ji:.DA Boardof,CO!!lmissioners is responsible, for the decision maldngpro,cess for the EDA,
many Cities Iiav!;l.found .it helpful. to d\\v,e!op,a committee stl1lcture.tQ assist in reaching the
ecollon:1ic..development goals of the, cOl11nlunity on or, ongoing or ad ho,c depending on ,upon the
workload and p"rticul"r is~ues that may arise, ,l'.ossible committees could include:
Local Publicity and Education Commtttee
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.'" Sitell and Buildings Committee. "', '
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.' ,Bustness Retention and :Expansion (BRE)
Marketing Committee
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EDA :Soard
Executive Director
EDA Staff
I
" M!lrketing
C,ommittee'
, , Bqsinyss Retention
An4Expansion
'Commiitee
Sites and Buildings
" Committee
Local Publicity
and Education
Committee
Offlllers: Duttes and Otl!i\nizational Issues
. .. .
The EDA must adopthylaws, rules of procedure and an' official seal. In the appendix is an
exlimpleof organizational bylaws.
OjJ1cers .
An EDA shall elect a president, a vice-president, a treasurer, a secretary and au. assistant
'treasurer. The Authority shall elect the president, treasurer, and secretary annually. 'A
. Commissioner must not serVe as' president and vice-president at the same time. The other offices
liiay'be held by the same Commissioner. The offices of secretary and assistant treasurer need not
beheld by a Commissioner. ' At a minimum, there must be three officers on the board. (Minn.
. Stat. ~ 469.096).
Duties and Powers ofOjJ1cers
The president and vice-president have the usual duties and powers of their offices. They may be
given other duties and powers by theEDA.
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The treasurer is responsible for receiving, disbursing and monitorIng all funds of the EDA. When
disbursing funds, the transaction must be by check only. The treasurer must also keep an account
9
ofthe source of all receipts, as well as the nature, purpose and authority of all expenditures. The
trea,surer is responsible for filing a detailed financial statement with the secretary at least once a
, year at times set by the BOA. Quarterly reports may also' be' filed. The treasurer is also
responsible for the acts of the assistant treasu~er, Th.e assistant treasurer has the powers and
duties ifthe treasurer is absent or disabled. (Minn. Stat. ~ 469.096, Subd. 4).
The BOA must obtain a treasurer's bond conditioned for the faithful discharge of official duties.
The bond must be approved as a form and surety by the BOA and filed with the secretary. The
bond must be for twice the amount of money likely to be on hand at one time, as determined at
least annually by the BOA provided that the bond may not exceed $300,000 (Minn. Stat. ~
469.096, Subd. 6) .
The EOA may choose to have the secretary and the assistant treasurer position filled by a non.
board member (Minn. Stat., ~ 469.096, Subd. 2).
Public Money
EOA moneyls public money.
Checks
An EOA check must be signed by the treasurer and one otl1el' officer named by the EOA in a
resolution. 'The check must state the name of the payee and the nature of the claim that'the check
is issued for.
Financial Statement
The EOA's detailed financial statement must show all receipts and disl?ursements, their nature,
the money OIi hand, the purposes to which the money on hand is to be applied, theEONs credits
and. assets; and its outstanding liabilities in a form required for the City's financial statements.
The EOA shall examine the statement together with the treasurer's vouchers. lfthe EOAfinds
that the statement and vouchers are correct, it shall approve them by resolution and enter the
resolution in its records. (Minn. Stat. ~ 469.051). '
Compensation and Reimbursement
)
A Commissioner, including the president, shall be paid for attending each, regular or special
meetings in im amount to be determined by the City Council. (Minn. Stat., ~ 469.095, Subd. 4).
In addition to receiving pay for meetings, the Commissioners may be reimbursed for actual
expenses incurred in doing official business of the EOA. All money paid for compensation or
reimbursement must be paid out of the BOA's budget.
Conflict of Interest
A Commissioner 01' employee of an EDA shall not acquire any financial interest, direct or
indirect, in any project or in any property included or planned to be included in any project
sponsored by the EOA. BOA Commissioners or.employees may not have any financial interest,
10
dircict'orindir~ct; in'any contra~t.or proposed cOntract for materials'or services tobe furnished or
uswin connection with any project (Minrt,' Stat.,~ 469.098).' ' "
J. :'".;1,!:'. y.; " .-' .' ;'._ ":.,. '. ':(;.. .' ", " ;", ,
The (ollo""ing is a list of exceptions when an EDA may contract for goods or services with a
Commissioner or officer of the EDA who has a financial interest in a project. Approval of this
action 'lriusl' be passed by a unanimous vote of the EDA with the affected Commissioner
abstairting from the vote on the resolution (Minn. Stat., ~ 471.88).
L When an officer 01' Commissioner is employed by a bank or savings assoGiation that
.serves as the EDAs depository or as a source of borrowing, and that Commissioner has an
interest either direct or Indirect, no restri~tions apply. HoweVer, if a COl):JlI'\issioner 01'
officer does have a direct 01' indirect interest as a director or an ,eltlployee cif,t\1e bank or
savings association, he or she must make that disclosure and enter it into theininutes of
" the ,EDA. This disclosllrl} serves ,as ,notice of the Commissioner's interest and does not
,,' need to be made on futu're trimsactionswith that designated financial institution.
, ,
2. When a Commissioner of the EDA is employed by a'bank th~t is engaged in'inaking
, "",.lo!lns Or perfQl'lJ:lil1g trust services, iqvolving real or personal property affe\)ted by any
, ,:' ::' , planqfthe BOA, ihereis no restriction that applies to the loans, made or trust services
." ',' pel'f6mltid by:t\1e Commis'sioner's bank ifheor she discloses the, nature oftfieloans or
.' ' ',trustservices of which the Commissioner has, personal knowledge. This disclosure must
,b.e entered in. the mimites of theEDA.' , , . ' ',. '
-". . ,
3.
, If the EDA has designated an 6fficial newspaper, or publication where It publishes its
, " ,p,ublic; noticesandl11infltes, and a Commissioner has an interest in the paper.
, .... ,." ",.. . . <
' 'lfthe, BOA ~nters into a contract with' a cooperative assoCiation where a Commissioner is
, a shareholder oi' stockholder, but not an officer 01' mana!1er. '
A. contract for which competitive bids are not required by law and where the amount does
not' exceed $5,000. ' ,
4.
5.
6.
Contracts for goods 01' services when consideration does not exceed $5,000 in any year
and the sealed bid process is used and the contracting governmental unit has a population
Qfless.than 1..000.
7.~ ", , Whel1, an EDA Commissioner is engaged in or employed by, a firm that Is in the business
of linporting 61' exporting or general trade, the EDA may enter into business transactions
,with the Co'm~issioner or t~e Commissioner;semployer provided that the Commissioner
abstairis from 'voting on any resolution that sets rates affecting sl]lppers 01' users of an
EDA-owned facility. (Minn. Stat. ~ 471.88)
Eth/csLaw
Changes';'inade irt the 1994 Ethics 111 Government Act not only affect .state legislators but also
localofflcials. The definition of a local'official is "a person who holds elective office in a
poiitical subdivision or who is appointed to or employed in a public position in a pqlitical
subdivision". Minn. Stat. ~ 10A.Dl Subd. 22 goes on to state that local officials are those who
'I
II
hll,,~,t):le "lIuth9rity to:recommc::nd, or as a memb,e~, ofthegoverl)ing, body, ml!ke major.decisions
regarding the expenditure or investment.of'pul111c' m.on,ey.': Based 0/1 these defin.itions; EDA
executive directors and commission members are subject to the 'gift restrictions of the Ethics in
Government Act , '
1:
A,localofficial is prohibited from accepting gifts from a lobq~i~t.or lobbyist principal including:
· Money, .
· Real or personal property,
. A service, ',' '
.' Aloan,
· ' A f9rbearance or forgiveness of indebtedness, or
.' "A 'promise offriture employment,
, IIrilessthe lobbyist or lobbyist principal receives consideration of equal or, greater value hi return.
lI,!,plo~ees, S~rvlces, and Supplies ,
The EOA may employ iili executive director; a chief engineer, other technical experts and agents,
and other ehiployees as it may require. The EOA' must determine their duties, qualifications and
compensation.' Also, the EDA may coniract for the sllrvices of consultants, 'agents; public
a:ccouritanf~,iind other persons needed to performlts duties and exercise its powers. the EDA
may uselhe services of the City Attorney or 'hire II general counsel for its legal needs (Minn.
Stat ~ 469.097). (See appendix for sample job description).
.,", '". '. .., .'
The EOA may utilize the City/County's purchasing department in connection with construction
, worJ.<:and to purchase equipment, supplies and materillls. The City/County mllY furnish offices,
structures and space, stenographic, clerical, engineering and other assistance to the EOA in order
for iHo perform its duties and to carry out its powers. '
TheEI::lA may also delegate to one or more of its agents or employees powers or duties it may
deem proper.
J)ef;osltorJes ,
Every two years the EOA shall name a national or state bank(s) within Minnesota as depositories
for its funds. Before acting as a depository, the bank must give the EOA a bond approved as to
f~rniandilUrety by' the EDA. The bond m\.!st state the conditions for the safekeeping and the
prompt repayment' of deposits. The amount of the bond must be at least equal to the, maximum
ilm~unt expected to be deposited at anyone ,time. An EOA may deposit all its, money from any
one source in'one bank account.
When the EDA funds are deposited by the treasurer in a bonded depository, the treasurer and the
surety on the treasurer's official bond are exempt from liability for the loss of the deposits
,becaus!" of the failure, bankruptcy or other act Or default of the depository bank. However, an
EPA may accept assignments of collateral from the depository bank to secure the deposits just as
assignnients pf collateral are permitted bylaw to secure deposit ofthe EOA's City (Minn. Stat. ~
4~9.699) , ,,' ,
12
Budget, Fiscal Year, Taxes, Audits and Reports
.,' "
The'fiscal year of the! BOA must be the' same as that of .its goverl'ling City. : Itinust annually
submit its, budget to the City in a time frame that matches the City's normaLbudget cycle. This
budget must include'a detailed wrItten estimate of the amount of money that the BOA expects to
need from the City during the next fiscal year. " ,
There are'many ways in which BOA's budgets are established. BDAs have the ability to receive
funding from virtually any' source, public and private, and including the, general funds of the
underlying City. In addition, BOAs utilize administrative fees from loan or grant agreements,
guarantees or other credit enhancements or contributions from local businesses or organizations. '
The ,most common practice is a' direct general fund appropriation to the 'EOA ,out' of the City
general fund. The BDA is required to send its budget to the City Council with an estimate of
funding requirements for the next fiscal year, and it is through this procedure that a City may
givemomiy from the City's general funds 'for the BOAto use. There is no ,limit to the amount of
funding that can be provided to an BOA through this mechanism.
One of the fringe benefits of City general fund monies lies in the fact that their use may not be as
restricted as monies from other funding sources. This enables an BOA to use them for virtually
ariy 'economic development purpose; lis 'long, as appropriate findings are made and safeguards
ini.posed to demonstrate the use will 'promote economic development in the City. Such uses
include' write downs," grants or loans,' working-capital loans' and the purchase of limited
partnership interests. For example, an BOA received funding using dollars remaining in a City's
bond f~nd after all bonds were retired, and used these dollars to capitalize a revolving loan fund.
In addition to the annual budget, the BOA must submit a detililed annual report to the City
Council outlining Its activities, receipts and expenditures during'the preceding calendar year. The
report may also include 'other matters and recommendations that the BOA deems advisable for
, the economic development of the City.
On an annual basis the financial statements of the BOA must be prepared, audited, filed and
published or posted in the manner required for the financial statements of the City. The financial
statements must permit a Comparison and recOliclliation with the City's accounts and financial
reports. The report must be filed with the State Auditor by June 30th of each year. The auditor
will review the report and may accept it or audit the books of the BOA for cause (Minn. Stat. ~
469.100).
City Levy of Taxes for EDA Activities
The City may, at the request of the BOA, levy a tax in any year forthe benefit of the BDA in an
amount not more than 0.01813 percent of taxable market value. The amount levied must be paid
by the City treasurer to the treasurer of the BOA, to be spent by the EOA. A City may increase
its levy for economic development authority purposes under Minnesota Statutes 469.107,
Subdivision 1 in the following way. The City Council must first pass a resolution stating the
proposed amount of levy increase. The City must then publish the resolution together with a
notice of public hearing on the resolution for two successive weeks in its official newspaper or if
none exists in a newspaper of general circulation in the City. The hearing must be held two to
13
four weeks after the first publication. After the hearing, the, <::ity C~>uncil may decide to' take no'
action or may adopt a resolution authorizing the proposed increase or a lesser increase. A
resOlution authorizing an increase must be published in ,the CIty's official newspaper or if none
exists,in a,newspaper of,general circulation in, ,the City. The resolution, is, not f;Jffective ,if a
petition requesting a referendum on the resolution is filed with the City Clerk within 30 days of
publication of the resolution. The petition must be signed by voters equalingnve percent of the
votes cast in the City in the last general election. The election must be held at a general or
special election. Notice of the election must be givenin the m'anner required by law. The notice
must-state the purpose and amount of the levy.'
Levy of Taxes for HRA Activities
Subject to the approval by resolution of the governing body of the City, the, EDA may levy a tax
for HRA'purposes upon all taxable property within that taxing district. The levy cannoLnot
exceed;an amount equal to 0.Ol8Spercent of t!\xable market value, and must be spent for
purposes authorized under the HRA statutes. These levies must be included -in the EDAs annual
budget.
Transfer of Authority
," ", ", ..
. ... .
The. City may by ordinance divide the eConomic developll!ent, housing and redevelopment
powers granted under the EPA and HRA sections in Minnesota Statutes, Chapter 469 between
the BOA and any other authority or commission established under statute or City charter for
\lcQJ1,omic developm\lnt, housing or redevelopment. '
',:' .
The, City may, by resolution, transfer the control, authority and operation of any ,project or
program located witltinthe City from another governmental agency or subdivision that
llstablished the project or program to the EOA. The City may also require the BOA to accept
control, authority and operation of the project or program. If a project or program is transferred
to the EOA, it may exercise all ofthe powers that the governmental unit establishing the project
or program could have exercised with respect to the project or program.
When,a project or program is transferred to the EDA, the BOA must pledge in writing to perform
the terms, conditiQns and covenants of the bond indenture Or other agreements executed for the
security ofany bonds that were issued by the governmental subdivision that initiated the project
or progl'9m. The EDA may exercise all of the powers necessary to perform the, terms, conditions
and contracts of any indenture or other agreements executed for the security of the bonds and
wiII become obligated for the bonds when the project or program is transferred.
If the City transfers a housing project or a housing development project to the EOA, the City
must transfer all housing development and management powers relating to that specific project
or Program.
Transfer of Personnel
Thll, City may also' by resolution place any employees of the HRA under the direction,
sUPllrvision or control of the EDA. The transfer of employees does not affect the employee rights
14
existing under a collective bargaining agreement or fringe benefit pllin; Upon' transf~r; the
employees will become employees of the EDA.
,; :.,"
".' , .,;.
i;
':.'
",,',','
:':',
. . . I' .
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.... :
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15
POWERS OF EDAS
GenerillPowers and PurDoses
The primary benefit of an BDA rests in its ability to easily and flexibly accomplish a wide range
of development and redevelopment objectives. An BDA is granted a remarkably full complement
of development powers. These include (subject to any limitation in the enabling resolution) the
powers enumerated by its enabling legislation, but also those powers granted by cross-reference
to housing and redevelopment authorities (HRAs), to Cities in connection with projects and
development districts, of municipalities and redevelopment agencies in connection with
Municipal Industrial Development. These development powers allow an BDA great latitude,
flexibility and efficiency in pursuing economic development objectives.
The purposes to which BDAs, may direct their powers are not entirely clear in the statutes. They
appear to include making land suitable and available for economic development and to
encourage the location or expansion of economic development facilities. Also, through
incorporating the purposes of HRAs, EDAs also Qan provide adequate housing in addition to
clearing and developing blighted areas. And by incorporating the broad purposes of Municipal
Industrial Development, EDAs may actively promote, attract and encourage the development of
economically sOilnd industry and commerce .for the purpose of preventing the emergence of
blighted and marginal lands and areas of chronic unemployment.
J
Usually, an EDA ,must adopt or reference a broader plan to exercise its powers. Certain EDA
POWers can only be exercised within the boundaries, of an "Economic Development District;
certain HRA powers must be exercised within the boundaries of a "Redevelopment Project," and
certain municipal powers must be exercised within a "Municipal Development District."
Certain EDA Powers must be exercised only within the boundaries of an' "Economic
Development District." The EDA may create and define the boundaries of economic
development districts at any place or places within the City, except the district boundaries must
be contiguous. An EDA must hold a public hearing on the establishment and at least 10 days
before the hearing the EDA shall publish notice of the hearing in a daily newspaper of general
circulation in the City. The EDA must find that an economic development district is proper anil
desirable to establish and develop within the City.
Redevelopment Project
Whel\ the BOA exercises many of the powers of an HRA, such powers must be used within the
boundaries of a Redevelopment Project established under the HRA law.
When establishing a Redevelopment Project, the EDA must develop a redevelopment plan which
provides an outline for the development or redevelopment of the area. The EDA must obtain the
written opinion ofthe City's planning agency if there is one.
The City Council must approve or disapprove the plan within 30 days after holding a public
hearing on the Redevelopment Project. The council must make the following findings in
connection with its approval: '
16
1.
The land in the project area would not be made available for redevelopment Without the
, financial aid to be sO\l~ht from the EDA.
;:.
The redevelopment plans for ,the redevelopment areas in the 10caJity wlll 'afford
maximum opportunity consistent with needs of the locality as a whole for the
redevelopment of the areas by private enterprise.
3. The'redevelopmel\tplljn confoinis to the general coltiprehensive plan for the
development &ftlie locality as a whole. (Minn. Stat. ~ 469;028);'
"":. .
2.
Municlpal Development District
, When the EDA exercises certain powers of cities identified in the City DevelopmFnt District law
(Minn. Stat. ~~ 469.124-469.143), they must be used within the boundaries of a Municipal
Devel\lpment District. A development district may' be designated anywhere within the
bouhdaries of a CitY' arid the City must adopt a Development Program for the development
district, which is a statement of objections for the development district imd contain the
infonnation set forth in Minn. Stat. ~ 469.125, Subd. 3. The City may develop a program for
improving the district to provide the impetus for commercial development, increase employment,
prote~t pedestrians, provide open space relief and other actions which are in the pui;llic purpose.
pf(oito de~ignation, the City must consl!Jt with its planning agency or department; publish
, notice, ~nd hold a public hearing.' ,
SP'~clfic Powers'
gecalise' EOAs derive powers both directly from EDA law and indirectly by 01'OSS reference with
other development statutes, there is often considerable overlap in the statutes which can be cited
as authority for a given power.
For~:Xampl~~' the power to acquire and develop 'pr6perty under the EDA Law must be exercised
within the boundaries of an "economic development district." Since the definition of an
eco)l,omiC development ,district is very restrictive, the EDA power to acquire land cannot be
.exer9isedhi many circumstances. However, the comparable HRA power to acquire and develop
property. is far more' general and can. be exercised in a broad range of development
circumstances. By picking and choosing the particular statutory authority best suited to a given
proposed action, an BOA can usually cal'l'Y out its purposes with a minimum of inconvenience.
Many of the powers of an EDA are listed below, including powers derived from EDA, HRA and
mlluicipal authorities. When considering the exercise of any specific power cited, your should
always review the available legislation and consult with your legal and development advisors.
Acquisition of Property
An EOA may acquire the necessary rights, titles or interest in property through purchase, lea~e or
gift. Wl:lile the property is owned by the EDA and used for governmental purposes, the property
is exempt from taxation by the state or its political subdivisions. However, once the EOA sl'lIs
or leases the property for use by a non-governmental body, it becomes subject to taxation.
17
Options'" "
The BOA may sign options to purchase, sell or lease property. ''fhi's power may be used to set
aside;ll particular building or site for future development purposes. '
eminent Domain
All EO~ may exer!lise the right of eminent domain under Chapter 117 or, u,nder its City's charter
to acquire property by condemnation. If the property is owned, by the City for public use; the
City must approve the taking: Also, the EOA may take possession of the property' after it files a
petition in condemnation proceedings describing the property -- a practice sometimes referred to
as a "quick take" proceeding.
",(: '!.....
Loans '
"!; . , .
An EDA may make loans to businesses to carry out the purposes outlined in the EOA Law
(Minn.1:!taQ469.,l<,l2). ','
COfitracis
The BDA, may enter into contraCts with both governmental and non-governmental entities for the
pilrp'ose of economic development, inCluding the purchase or sale of real and personal property.
An EOA may not incur an obligation or expense under the BRA Law, unless it has an existing
appropriation, or can identify reasonably expected revenues sufficient to discharge ,the obligation
or pay the expense. Independent authority is found in the 'EOA Law for the EOA to guarantee
((lans,as more fully discussed under the "Advances" power described later in this handbook.
Limited Partnership
All BpA l]Iay be a limited partner in a partnership whose purpose \s .consistent with the EOA's
p\lrpose,
If aCitf. is participating in a project as a limited partner, it may wish to stipulate in the equity
agreement II limit on its current and future liability. This stipulation will serve as a safeguard for
the City if iegal action is brought against the firm as a result of its operation or inequities in its
serVices or products: ' ,
Rishts and Easements
The' EOA . maY acquire rights and easements for development of ail e!lonomic development
district. . It 'may be necessary for an BOA to utilize these' powers when extending public
infrastructure to a project area. '
Acceptance fll Public Land and Property
The BOA may accept land, money, or assistance, either by gift, loan or otherwise, in any form
from the' federal or state government, or its agencies, or a local subdivisiori of the state
government to carry out its economic development activities.
18
An EDA' may accept conveyances of land; from all other public agencies; commissions, or other
Ilniis'bf government,' it: the Iandcan be prop'ei'ly i.1sedby the EDA in ati 'economic deveJopment
district. ' ,
Foreign Trade Zone
Minnesotii'Sll\tlJte 469.101, Subdivision n authorizes EDAs to op'erate'and manage Foreign
Ti'ade'Zones>'Foreign 01" "Free" Trade Zones '(FTZ) were established to 'facilitate international
trade by serving as "safe havens" and can increase a company's cash .f1oVli, by reducing costs
associated with import restrictions and duties. FTZs can be warehouses, storage tanks or fenced.
inarea~ nea~ h\lrbors, airports .or industrial parks, For~ign and d?mestic goods' a~e brought into a
iQrib where 'they can be stored, sold" exhiOited,broken up, repacked,' assembled, distributed,
$Qii~'d;'gra:aed~' "Cleaned' and mixedwithforeigrt anddolriestic products or used in a
;1" ' '. ;' -, :., . . '. \ '. _.' . .
manufactu'dng Process. ' " '" ' ' " '", ,
< :,.' ~ i!. .,.!. .. - I ~ . -' . :: - " , . . . '.' ," .. I -. '. , . .
Thgre' are"iw6 types offoreign trade zones: General zones are located at 01' adjacerit to a U.S.
Customs Port of Entry (i.e. Minneapolis-St. Paul International Airport or Duluth Port) and
sl,Ibzones which are technically part of the general zone but are physically removed from it.
,General zones typically have multiple users occupying a facility or warehouse site, while
"subZO\1es" ,are, special-purpose fa,c!lIties operated by individual firms that cannot be
accommodated :-within a general zone and are engaged in, large.scale manufacturing. The major
, gbbd's' being 'pt.!;d~ced 'in subzol)e8 are' automobiles, ~ruc~s, motorcycles, tractors, women's
, . " "...... . ",' '" . . .. .
giiriJ::lent's, 'andreflried oil.' ""',,' " ' " '" ' ,
,.' ,",".' . .....,. ,j"r. '. ',', . ". . .
Although a zd1te'is' operated as a public utility and: can be'managed by either a public or private
corporation, it is treated as foreign territory and considered to be in foreign comml;lrce, therefore
providing benefit to the users. The usual formal Customs entry procedure and payment of duties
is. ,not r~!Iuir~d 01\ ~he, foreign merchandise unless and until it enters Customs territory for
. ,."'" ,\.'. ,. ," -" . ,". - - - . .
d(jhie~tic consilmpti~l\.iii~/Iich case t~e iiilpoqer ordinarily has a choice of paying duties either
<iiUl)e origina)' fO,reign mJlterhllor the finisheil'pr9duct. Itiaddition, quota restriction~ do not
r:(#in~UyappIy to foi'~igh'!lRo.ds stored in zones. DomestiC,goods moved into a zonefor export
m~y be, corsidehidexp:6rted upon entering the zone for purposes of excise tax reliates and
drawbac~: In s9me casescotrpanies cali avoid both import duties on an item arid state and local
ad valorem llixes' whim goods 'ilr~ exported fhim tile zone. In most cases, Federal taxes and
excise taxes can be deferred on the goods until they enter the U.S. marketplace.
f~111i~i:d,ciiitl(!$
.'. '. ....,."
The EDA may operate and maintain a public parking facility or other public facility to promote
development or prevent the emergence of slum and blight. Frequently, these powers are
exercised in cooperation with other units of government, including CitieS, 'counties and school
distri9ts.J.>rojec~s may include City halls, fire stations, libraries, community centers,
!\dininis,triltion buildings, and mapy others. ' ,
For'.~x.a'itipl~ aclty, may want Jl community center' for' its residents. In order for the project to
9c~~r,'.tlw EDA sells rey~nue bonds, constructs the community center, and leases the community
ceiiier,tothe' City. The lease i~ paid by an annual appropriation from the City's general fund to
:::.. 'j . .': . " . . . .";..
19
the EQA, ~n4 the, EPAuses the lease payments ,to: pay the prim;ipal:and interest due on the
re;yepue.'bi:mds. Whell,the revenue, bonds are retired,title,!o thene\!Vcommunity cen,ter wUIbe
transferred to the City.
Government Agent
An EPA maycQoperate.with Or act as an agent for the federal or state government, a stat\lpublic
body, ,(In agellcy or.ilnstrument. of a government, ,Ora public bOdy to carry,ouUts mission.
',J. .
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Public Rlllatfol/s
-,;,
", . ',.' I.'. -';.' "., .
Tq .further ,its economic development efforts, an EPA may J01l1 an official, industrial,
com.,mercial, or ~radeassoclation, Or other orgardzation.li may also have a reception of offi~ials
who may contribute to advancing the City and its economic development activities. It may also
carry out other public relations activities as it deems appropriate in fulfilling' its efforts to
promote the City,a,nd its economic development projects (Minn. Stat. ~ 469.101, Subd,. 16).
.,", ! '. . . .
JoInt polljersAgreenients
Any t\yo or more EDAsusing HRA powers ortogether with an HRA inay join with one another
to' exercise; either jointly or otherwise; anyorall of their powers. This joint powers agreement
may beu~ed for the,purpose of financing, including the issuance of bonds and giving security,
plaririi'ng, ullilel:tliking, owning, constructing, operating, or contracting a housing project located
witl)ir) the 'area of operation of anyone or mote of the EDAs or BRAs. The EDA may, by
resolution,' 3uthoriz(;':' any other housilrg authofity or EDA utilizing BRA powers to act on its
behalf with respect to '~ny or all powers, as its agent or otherwise: ' ,
An EDAmay by resolution authorize another housing authority to exercise its powers within the
authorizing EDAs area of operation at the same time that the authorizing authority is exercising
th~~ame pp)Vers, ,
Tax in~;.elile;,(Flnallcfng
, ,
There 'are many benefits afforded to a City by utilizing Tax Increment Financing (TIF) to
facilitate economic development. Some of these are: the City can 'realize new development,
which would not otherwise occur without the use of TIF; the City m\lY realize broader economic
gainsof.new deve'lol?n1ent in terms of employment, tax base enhancement and secondary spin-
off eff\lcl!i; the City can facilitate the construction of related public improvements it wishes to
achic!ve by coordinating a TIP project with more general jlublic improvement projects; the City
20
mayilave better cOl1trol 'over the nature of the. development;'. the' ,City may be' able .to fund
administrative and/or community development costs with' revenue from the TIFdistrict and; in
~ome cases, the qualifying of new development is enhanced by the TlF financing. .' "
A.n BPA'may act as an Authority for the purposes of creating a~d'~dministering tax increment
fin!lrlcillg district~ and plans. Thes\lpow.ers must be 'exercised within a, Red(lveJopment Project,
when acting under HRA powers, or within a Municipal Development District when, exercising
City powers. In general, an EDA must receive approval from the City Council prior to adoption
of II' ,Tax Increment Financing pl!ln, and comply in. all respects with' the: requirements of
Minnesota Statutes 469.174 - 469.179. ' "
Th\lre are several types ofTIF districts allowed by statute. The'following is a brief description ,of
each. '
Redevelopment District:
· Generally a blighted area co~taining substandard buildings.
· Requires documentation to evaluate occupied land area and, analysis of ,substandard
buildings. "
. Maximum duration ofTIF ilistrict is 25 years from receipt of the first increment.
,Renewal and Renovation District:
.,1;,
· ' , Blight and obsolescence tests must be met.
· Maximum duration ofTlF district is 15 years from receipt of the first tax increment.
Housing District
· Provides housing opportunities for persons and families of low and moderate income.
.. ''Maximum duration ofTlF district is 25 yearS from receipt of the first tax increment.
Soils Condition District:
"'."
· Provides for the removal or remediation of hazardous substances or contaminants as
specified, in a development action response plan.
.'Such costs must exceed (II) the fair market value of the land before completion of the
preparation 01' (b) $2 per square foot of the area of each parcel.
· Maximum duration of the TIF di,strict is 20 years from receipt of the first tax increment.
J:lROI:\Omic Development District: ,
.
May be used only for manufacturing, production, processing, warehousing, storage,
distribution (excludillg retaIl sales), research and development, telemarketing, certain
tourism and border City retail facilities and uses are directly related to or in support of
such qualifying activities. Prohibits establishment if more than 15 percent of the square
, footage of such facilities are used for other purposes.
I
21
· ,. , "Mustdemonstrate retention of locaL businesses, increased employment or ,preservation or
, , ,!", ,enhancement of the state tal!: base, etc,
· Maximum duration of TIP district is 8 years from receipt of.the first tax increment.
. May be used for commercial facilities not exceeding 15,000 square feet in Cities with
populations of 5,000 or less located at least 10 miles outside' of a City with a 'population
.,"ofIO,OOO or more.',:Other than administrativeel!:penses; allili.crertJents must be spent
" Wltbhtthe TIP district. '
. .' '.. I
· ' .Expanded Rules for any type of development if construction commences by July 1, 20U '
and certification of district is requested by June 30,2011.
Compact, Development District:
· May be used to redevelop property where 70 percent of the parcel is industrial or utility
property.
'. The project must result in an increase of square footage of industrial or utility property by
three times or more over its current level. '
. ' Must be approved before June 30,2012.'
'In order to establish a TIP district, a specific process must be followed including the following:
1. A Development Program or Redevelopment Plan (depending on statutory authority used)
must be prepared. This sets forth the general goals for the development or redevelopment
project area.
2. A Tax Increment Financing Plan must be prepared. This sets forth the specific project(s)
to be undertaken, costs involved, and revenues projected, and is the guiding document for
the proposed project.
,", I' ..' .,' 0"
3. .A publi\l hearing on the, TIF Pial) and district must be conduct~d. Notification of the
public hearing must be published 10-30 days prior to the hearing.
4. A TIP' district "fiscal and economic impact" letter must be received by the County and
.' school district at least 30 days prior to the public hearing.
. .; . .
5. The City planl)ing commission must review the TIP Plan and Development Program prior
to Cliy approval. " " ' , ,
, . ,
6. At the public hearlng, all'hiterested parties 'are invited to express their opinion(s).
7. Subsequent to the public hearing, the City must approv~ or reject the TIP Plan and
, district.
8. " 'Upon approval, the City trlust request County certification of the original value of the TIP
, district' which will begin the tilx increment collection process;
. , . . . . .
9. Actual project expenditures may not be made unti/the TIP Plan is adopted and the TIF
district is established.
22
Fhlancinl! and Bondinl! Powers
Issuing Gener(4lObllgatlonBonds
, "'.". ....l'.,.:.: ". .
, ~ ; , !' .: .
i' :1
.;:.;:: ,
The;.EOA may issue general Obligation 'Bonds {GO Bonds) in anticipation of income from any
sdurce fonny- purpose, allowed by statute. TIle Ci(y. must; by ordinance and by two, thirdil'Vote,
give specific,conseil,t'to'pledge the City'duIHai!hand creditto tl1e'GO'Boilds. The BOA must
comply' with the provisions of Minnesota Statutes g 475, the general public indebtedness statute.
A,ilelection is reqilii'ed ,to'issue GO Bonds backed by the City's full faith' and credit.
Issuing Re~e,!ue Bonds
Revenue bonds may be issued by' the EOA to fund any authorized activity of the EOA. The
revenues generated by the projects to be financed 'and/or other revenues of the EOA may be
pledged,to the' payment of;the :revenuebonds.Bonds may also be; secured by a mortgage on
certain:EDA,property;,T<he BOA can pledge its;full.fl\ith and credit 'and limited taxing power to
the payment of revenue bonds, but it may not pledge, the full faith and credit of the City.
Because the credit ,strength of an -BOA. is usually very limited, the feasibility of a revenue bond
offerhig is highly dependent upon the:projecHo'be,financed.For:example, if. an EOA were to
ilisue:a revenue bond ti> finance the construction of a,building to be leased to, a manufacturing
film;' the interest .rate' and security tenns oHhe .revenue bond would depend primarily on the
creditworthiness of the manufacturer., For ,weake.r projects and tenants, issuance may not be
feasible. '
Advances
..:' ." ,..,
A~noted earlier in this handbook, there i~ independent authority for an, EOA to make a .loan. An
BOA may advance (loan) its general fund money or credit without'lnterest. The advances must
be, repaid from'the sale or lease of land. If the money advanced for the development or
redevelopmimt project was obt!lined from the sale of the BOAs general obligation bonds, then
the :interest rate on the advances must not be lower than the average annual interest rate on the
EDAs general obligation bonds ;that are outstanding at the time the advances are made. Advances
made to acquire land and to construct facilities for recreational purposes, do not need to be
reirilbursed(Minn. S1at. g 469.106).
Secondary Market
..'; ;.J
An EDAmaysell, at private or public sale, at the price or prices determined by the BOA, any
note"mortgage, lease, sublease; lease purchase, or other instrument or 'obligation evidencing or
securing a loan made for the purpose of economic development, job creation, redevelopment, or
community revitalization by a public agency to a business, for-profit or nonprofit organization,
oran.indlvidual (Minn, Stat. g 469.101, Subd. 22). An EOA operating a revolving loan fund may
chbose toselhdoan on the secondary market if it needs to recapItalize the loan fund in order to
finance additional projects.
I'
23
Borrowing In Anticipation of Bonds
After authorizing a bond issue, an BDA may borrow funds ,(0 : provide money immediately
required for the project, but the loan must not exceed the amount of the bonds. The BOA must
approve a resolutipn stating the terms of-the loan., The due date'for the loan niaynot be for more
than i2 months from the date of the loan ' origination and may be repaid with, interest from the
proceeds ofthe bonds when the bonds are issued and delivered to the bond purchasers. The loan
must ,not. be obtained from any Commissioner of-the BDA or from any corporation" association,
or other institution of which a Commissioner is a stockholder or officer (Minn. Stat. ~ 469;\01,
Subd. 19).
, Revol~/ng loan Funds
, "
St:i1all. business ,growth in most communities provides the greatest opportunity for new
investment and job development. However, because constraints on capital markets, financial
institutions may be unable or unwilling to'provide a coinplete financing package, and many good
companies end up with marginallong-term financing;
Businesses and financial institutions invest dollars in projects to make a profit and to earn a
return on that investment. Unless the project offers the promise of a positive return, it is difficult
to.:8ella, prospective investor on locating or expanding a business. Stimulating investment
requires. impacting 'a business and a bank's spending deoisions"An BDA can impact 'business
sp'ending decisions.by providing an opportunity where rates of return on investment are attractive
and competitive. Many BOAs do this by operating a local Revolving Loan Fund (RLF) designed
to facilitate small business investment.
The typical goal of a local RLF is to leverage private sector investinent by filling the capital
market' gap for financing long'termassets. '
'.-'J
, Most RLFs provide a cost advantage to the business to lessen their financial constraints and meet
the community!s goal of increasing productivity and creating new, permanent jobs. The RLF can
'provide lower interest payments, more flexible equity requirements, longer terms, deferred
principle payments and a subordinate collateral position to the bank, '
The type of businesses that are eligible for loan funds type of businesses that are eligible for loan
funds will depend on the loan guidelines established by the particular BOA.
An RLF can be designed in several different ways. The most common type of RLFs structure is
the direct lolinto the busineSs. Direct. loans are made to the business with a separate set,of.loan
docuri1ents'and:collateral to secure the loan. These loans, are typically made to fill the gap in a
development project.
.: .).1< ",
The, second type of funding structure is a loan guarantee. The BDA provicles a partial guarantee
to th!;l private, lender to ensure repayment of the, loan and to limit the risk to the private lender.
, This type of activity provides severaladvantliges to the EOA, notably, smaller capitalization
requirements, increased leverage of funds, and limited administrative activity
24
Athitdtype ofRLF is a1inkeddepositprogram.' With a linke'd'de~osit'prograin,the'BDA works
with other government agencies anq large non.profit institutions to place a certificate of deposit
with the lendi)l!l institution at bel9w market rate., This action allows the ba~ to increase its
liquidity of fU/ids, gain it higher return oh it riskier projeCtanq improve colhiteralcoverage.
The most fundamental issue in the development of a revolving loan program is the developme
of policies and procedures for operating, marketing, financing and dealing with delinquencies I
defaults. It is important to consider working with development counsel and/or financial adviso
to discuss the intricacies and mechanics of a RLF program.
The source of capitalization for local loan funds varies by community. Communities are
utilizing local sources through the use of excess general fund or municipal utility reserves, Tax
Increment Financing reserves and partnerships with banks or utilities to capitalize local revolving
loan funds.
Limitation of Powers
The City Council may place limits on the activities of the BOA in the enabling resolution. These
limitations may be placed on the power to issue general obligation or revenue bonds, the power
to grant or loan BOA funds, power to enter into limited partnerships, or any other specific power
over which the governing body wishes to exercise control. The following is a list of specific
areas where the governing body may exercise control (Minn. Stat. ~ 469.092):
I. that the BOA may not exercise any specified power contained in Minn. Stat. ~~ 469.001
to 469.047, 469.090 to 469.108, and 469.124 to 469.134 or that the B])A must not
exercise any powers without the prior approval of the City Council.
2. that, except when previously pledged by the BOA, the City Council may by resolution
requh'e the BOA to transfer any portion of the reserves generated by activities of the BOA
that the City Council determines is not necessary for the successfuf operation of the
authority to the debt seivice fund of the City, to be used solely to reduce tax levies for
bonded indebtedness of the City;
3. that the sale of all bonds or obligations issued by the BOA be approved by the City
Council before issuance;
4. that the BDA follows the budget process for City departments as provided by the City
and as implemented.by the City Council and Mayor;
5. that all official actions of the EOA must be consistent with the adopted comprehensive
plan of the City, and any official controls implementing the comprehensive plan;
6. that the EOA submit all planned activities for influencing the action of any other
governmental agency, subdivision, or body to the City Council for approval;
25
7. , " thatthe,EDA to submit i~ administratiyestructure and, management practices .to the City
" ',Counci\:forapprova!., "" '."
8. 'any ~ih~rlimltition or control e~iablished, by~e ~ityCo~~cH by tJi~ en~bling ~esolution.
" '"
..;.
. i..
26
'GLOSSARY'
':-' ::-!:,;" ,";,." ",
'. ,;, .,'. ~ :
C~sh flow:,:Cae the~usi?es's l'Cp~y the I()an out of operating cash flow.
Collateral: A iangible asset like land, building, inventory,'machinery and equipment; etc., offered
aii'security ona'loarLTypfcally, the value of the offeritigis greater than the amountJoaned. ,
......: 'I .:;"",. ::",
Commercial Club: UsuallY'atIincorporated 501(c)(4) or (6}organization whose purpose is to
pr6inotecommunity andi'etallevents. The membership is usually made up of retai/business
oWners or owners of businesses 1n the central or downtown business district. "
.' .
,Chamberof,Commerce: A chamber is an incorporated; ,non-profit 501(c)(4) or (6),tbat is
generally affiliated with the state and national chamber of commerce. The chamber consists of
looalb\\siness,pro.fessionals'of,the community who meet together to promote local businesses
and 'the community, Generally; they have an elected board with and most have limited 'staff.
birgerchambei's"oftendeal with, tourism and overall business development of the community.
They.sometimes are'politically acdve and can be a powerful lobbying force when dealing with
policy.thilt'affects the. communIty's economic strategy. Chambers are generally active and can
, hold educational and other events for local businesses.
Development .commission:' A board used to advise City Council, appointed by the Mayor and/or
"City,Counci/. It has' liinited or no decision making authority and is used as a sounding board or a
first point of contacffor the City Councll.for development projects. The commission is used to
draft strategies and policies for ratification and Implementation of local plans on a volunteer
basis.' '
Economic,Develonment District: A type of tax increment financing district which consists ofany
project; or portions of a project, but which the authority finds to be in the public interest because:
it will discourage commerce, industry, or manufacturing from moving their operations to another
stat!:' 6.r municipality; or it will 'result in increased employment in the state; or it will result in
preservation and ,enhancement of the tax base of the state.
..:t-:
'Excess Incremetits: Tax increments that exceed the amount needed to pay the costs authorized
'under the tax increment financing plan; Increments are not excess increments if the TIP plan has
been amended or modified to permit additional spending. The law requires that excess
increments be used to prepay outstanding bonds or deposited in an escrow account for bond
paymetit~or returned to the City, County, and school district(s) in proportion to their local tax
rates,:" ,',
,Fot-Profit Develooment Corooration: A corporation formed to develop and sell industrial land
,andloi' provide .fimincing for business development within the community. Local investors can
buy, shares that oan ' be 'paid dividends for profits made on projects. Money invested in
corporations can be repaid to the stockholders. The board is made up of shareholders and mayor
may not have staff. The corporation is subject to federal and state income tax.
27
Guarantee Fee: Money paid by a borrower to a government agency, company, ,or individual to
guarantee repayment of a loan. The fee is usually a percentage of the amount of the guarantee.
Housinl! District: A type of tax increment financing district which consists of a project, or a
portion of a project, intended for occupancy" in part, by,persons \>1' families of low and mod~rate
'income, as defined in chapter A, Title II of the NaiiOlial Housing Act of 1934, the National
Housing Act of 1959, the Un,ited States, :r.rQu~ing ,Act of 1-937, as amended, Title V of the
Housing Act-of 1949; asamende4, anyo,~her ,similar pre~ent or future federal, ~ta\j:l, or municipal
legislation, or the regulations promulgated Jlnder any of those acts. A project does not qualify
under this ,subdivision, if ,the, fair,. ma~ket value of the, improvements which are constructed for
commercial use or for uses other than low and moderate ,income housing consists of more than
, 20 percent of the total fair market value of the planned improvements in ,the development plan '01'
agreement. The fair market value of the improvements may be determined using the cost of
construction,. capitalized income, or other appropriate method of estimating market value. .
, ",':'- ;
Housinl!. Redevelopment Authoritv:, An HRA is a, public corporation with power to undertake
,certliin types 'of housing and, redevelopment of renewal activities" While state legislation
conveys, authority, for housing and redevelopment in each City,:it is up to the City Council to
fonnaIly, establish an HRA before it can do business and use its powers. Once a council legally
estilblishesan HRA,it may undertake certain types of planning and community development
activities on its own with council approval" '
Joint Powers Boardi This is a board created by two or more Cities, townships, or counties for a
specific- purpose, 'such as economic development. The 'agreement between the units of
'government would specifically describe activities and powers thai the board exercises in carrying
out its duties.,
Limited Partnership: A form of group ownership with at least one general partner and one
limited. partner; the general partner has unlimited liability. Limited partners can only lose their
initial investment.
" ',. ,"..-. '"
Port ,Authoritv: This is a legal entity creilted by the State Legislature to promote the general
welfare of a City's port district, increase the volume of commerce in the port and provide
facilities for handling, storage and shipment of freight. The Port Authority actively develops
commerce within the City and 'can enable business location and expansion. The powers of the
Port Authority are more expansive than the HRA,or EDA. Port Authorities can issue General
Obligation bonds without an election.
1 . ~ .' . , ,
Redevelooment District: A type of tax increment financing district consisting of a project, or
portions of a project, within which the authority finds by resolution that one of the following
conditions, reasonably distributed throughout the district, exists: parcels consisting of 70 percent
of,theareaofthe district are occupied by buildings, streets, utilities, paved or gravel parking lots,
or other similar structures and more than 50 percent of the buildings, not .including outbuildings,
are structurally substandard to a degree requiring substantial renovation or clearance; or the
property consists, of vacant, used, under used, inappropriately used, or infrequently used rail
yards, rail storage facilities, or excessive or vacated railroad rights-of-way.
28
Renewal and Renovation district: A type of tax increment financing district con~isiiligof a
Project, or portions of a project, within which the authority, finds by resolution that one of the
following conditions exist: parcels consisting'of,70perceiit'of the'atea.of the district are
occupied by buildlngsl streets, utilities, or other i.rtprovements, 20qpercent of the ' buildings are
structurally substandard; and 30 petcehtof the other buildings require substantial renovatit;ii"or
clearance to remove existing conditions such as: inadequate street layout, incompatible uses or
land use 'reI4t1onshlps; overcrowding, pf buil~lngs on the land, .elf;~!\ssive d'r\'ellIng unit, den~ity,
obsolete building's not suitable fodniprovementor 'conversion; or identified hazards to the
health,', safety,iiiid generalwell-bei,l1g, oftlie cOmmuriity; and th~ conditiims are reasonably
distributed throughout the geographlc.areaotthe distriet, ' , ' '.. .."
Rural,Develooment : Fimlnce Authority' 'CRFDA):A non~prot1t corporatloilestabllshed b)': 'iI
County or group of counties 'through specillllegisla.iion. RFDAs ate Aesigned to faeilitate, th~
production and ,processing of agricultural"products and promote jobs in agriculture and n~tura'1
resour~e In~ustrie~. T~e, bO~rd of directors Is' appointed by the CoUnty board of commi~~ionei's~
1 ',','. ,'" ;' .' ,
Structurallv'Substandard: A building that contains defects, in,' structural' elements or a
combination, of, d!\f1ciericies,' in 'essenti!iI'\Itilities lln,d faeilities,' llghtarid ve!itiiiltipn,: fire
protection including adequate egress, layout and condition' of the interi01~ partitions; or similar
'factors. whfchdefeci~ or deficienriies' areot sufficientt9tllL significance to justify.su)Jstantial
renovaticnor clearance.' '
.; ,",
A building is not structuialiy substanditd ifit is in compliance with thebty's building code
app,licablet6newbili!dings or it'cOlild be' modified to ~atisfy the building code at a cost of less
than 15% of the cost of constructing a new structure of the same square footage and type'on the
site. ' " ,
.....,
Tax Increment District: A district consists bfthe geographic area for which tax increments are
collected. The developmellt authority defines the area In the ta.x increment plan. A district may
be contiguous or non.con~iguous area within a project area.
29
TABLES
'I:'"
Rural Qave!onmenf FinAnce ,
~"
COMPARISON OF SELECTED DEVELOPMENT LAWS
P..con~miCl"AlllhnriliR~
P"rpllSC: .
AnRDFA ma~b; eslablished by
a COl,mty OJ &roup of co~ntl6s to
bring. a,?out the produotion of
agdoilltural 'products: and.
to encourage Increased
empJoymen,t in agriculture. A
ROFA.. is ,8 non-profit
corporation, ': . " .
, '
". . ':.'.
Governing Body:
~ '., ) .' . . : ; '., .
An WFA, Is, controlled by a
Baa"rd of Direotors who are
either elected or appointed by
tho, County B!}ard, If more .than
ono County is involved, then all
oounties: Involved must' be'
(epr~s~nted on tho board, .
. The bb~rd' tnuSt have a mlillmum
oft'ive members.
All projects and activities ~f the
RDFA must have approval o~
the Commissioner of .the
Deparlment"ofBmployment and
Economic Dev~lopment. .'
MUnicinl'l11nclu~lrjB.I;
nevel~n~,ent Ant:
'Purpose:.
. TIle main focus" of Minn, Stat. ,
',' n 469.152 10469,1651 inoludes
, Ihe fo!lowing; oxpansion an4
.economlc growth in blighted
land aroas. retention of industl)'
within the district; overaU
strengthening of community tax
'base; and the' general
, enhan~ment of the economy in
- thedislrio.t. . .
. . 9~vetOing J;3ody;
Consists of the roprosentihg
govemmenta' . unit--e,g. . City
C~mnol.lrq?unty Commi98ione~
for Cities, County Board for
. COlll'!tJes, etc.
. All rights of a h1unloipality are
granted to bondholders.
Wlu,:n beglnning.a project~ each
municipality. must;.pi"ovide. the
C{lm.~iS9ioll:er of:. tlie
~epartment of Employment and
Bcohomic Development- with
speoifled lnfonnation regarding
- the details of the c{lntracling
agreement.
,All projl;:~I.9, must be approved
by the stat.a Commissloner
(exCept ComIty jails).' '
HOUlline: Rl'AlflVelorimenl
D,e-velo~met'Jf A,~th~riti6S
Puip.ose:
An 'HM Is respt>nsi6Ie' for-
,detenoining blighted land area~
8n4,for prev~ntil)g, the spread of
blight, Including subsland~rd
buildjng slructures. A .blish~ed
area is ol'le with buildings and
areas that are detdmental to the
h..ith,..rety and welfare Of lh.'
,commllnity. 'Qle HRA I)1I\Y thef!
provide_ for. irilpmvements or
; J'ed"ev.eJopment of. these' are~s .
through ~ ,redevelopment .plaf!.,
An HRAs maiil area of'operation
is housing program
. de~elopmel1t.,'. : ~RAs , arc
. . primarily c{lncemed with .fftmlly
reb.bilil,tion;' 'housing
red~velopment, publio. housing;-
an4 rent Il:SSls1n~ce.
Governing Body:
:'Purpose:
'The. ove~aJI purp~se of an BPA
is to' 'promote ecQnoinic
development within a 'dislrict.
BOAs m,ay ~){e!'Cf~.e thoir .own
'powers 'which" are simila~ to port
authority.. powers~; p()w~rs. of II:
HRA, and lho powers of eWes in
connection with development
districts and'munioipal industi'jal
. deveJopmenlaoliviti.es. .
. Governfng Body;
BDA is created through Em
enabling f68{1lu1ion written and
. approved'by City Cou,noil..
EDAs hav~'8 boa~d consisting of
. 31 5, Of ..0/, oommissioners
appointed by ~he Mayor with 1he.
approval of City Q)unoil. The
board may.also.consist entirely of
City Council members.
Approval for any p~ject through.
: the approval of a redevelopment . The City Councjl .may 000lro11he
plan" must. be granted by lhe . activities of the ~DA by limltin~
appropriate City Council, ' its powers under. the enabling
; resolution and through the annual
Activities are controlled .by a approval of the EDA budget.
board of oommissioners.
An ERA. is independen.t of the.
local gQvernm.ent. Approval of
Ihe redevelopment" plan for' the
pmp9s!ld projeot _ is. needed,
however, by the governmental
unit in order to proceed.
30
Ad\yities:"""'; ':', ..~" "Activities .' "'; A~lIyities~.. .;. ..,
r,. Ill.,'"'' "J.I :"'\:"" :. ,'.;<"':. < .l~ . i ;.;.. ....', BOAs are:grantdd powers wltliii1
t;:';Buiid ;';'obMn "ahd' hpCir~te" !L" ;Build, acquir~,: and:feia"in iall ',I. ~ay estabJish.a redevelopment'.: their" own':dlsirict;" outsl~e "their'
piojc'9Is;': .'Ciesigned .for': the". "!ari.i1s, struotures. and equipment project (Mitmi. 8Ial..'469.oo2) -foi . deVelopttl'enr~districl; "and, by
ptoductlon'- ,'. "". of' . .ti8ficul\~ml . '. relaU,ng to a project. the elimination/and prevention of erosg.;refcreilce;' th~"'power8 of
products: r-, . , I . .. blighted areas., :","., I' , HRAs~ development. d.islricts In
:1. Bntsr into contraots with other . ,connection" with :t~eJ City; and
2. Perfonn agricu1turartes~a'roh, "l'ful,lIiicipalities and', ag,ep.oie.s . .In 2.' Carty out. proJects designed. to . "agencies in-:' connection' . with
connection wjth projects, " "'"!' improve blighted areas. Municipal .'.. ' ". 'Industri.al
3:'.1, Seek i liid;' from additiollal ;: '. '. ',. .i","" . . "~I! ':'. '" Development:
sQutce..(to promote 6mp'!oYJli.eiit. """~..:'.'Assign ravenue$ trom, pr.ojects..;;'3.:~, Acquire' .'.real:-. ~r pefsonol
. . .!, - ,. .... '.' .,. ;nl/;l'tpe holders ofboncls, .' I --I .: ; .;property'.for. activities related to Powers:
4> Under.!ake'proj(!OtsRlJlhOriucJ":!':'.:" . 'I.,,';;!( . ..,::".,: .projects; .:.' '
Ui1de'r.'"the. 'agricultural - resourco"':;~':.' 'Sell pT<?perty., ass~piated . with .; .;.;. . ;'" ,
ioanguatailleeprcigram,. '. .... . 'piojdcts. '1': ,,',':. .;, " 4/' .May. ". provjdo for the
,'," " - ,..,~ ',. '.' ],; ,-. ,atlmlnlslmtion of, a commercial
'S;.' May 'enier c6ntracts '~~d . S,:Bxempl from PYope,rtY,taxesoll. 'buildingiloan,program to preserve
employ':'flnanci.~t 'spechUlsls' fur" nonresidential structures built. for ..s,mall sized". buildings in :'its
assistance:".. ""saie!'or rent until 1ho building is district. .
...,.,' : Sold or rented; maximum timo is4
6. Issue bonds or notes for y'ear~.,
financing pui}1osoS: . . .., "
7. Engage in researeh to
8, May' exercise. the powers' determine factors' _ of specified
granted to, redovolopnient development pi'ojecls, .
agencies under Minn, Slat. ~~ .
469.152 to 469,16.51. . :'8, Aot 'as a-' limited parther in
conlract8-wl~h addili~n'al ~.artles..
,Rural Develonment Finance
~
(continued)
.' Milnicinallndustrial nev6Ior)!t1~ritL:
Act:
'.' '(Cbhtinued)
H~u&i",di-td6~~lo:nnient
Develonme.nt Aulhorjlie.'~
(continued) .1:I..:f
.'.' .,.....
s. May sell real or personal
property~t: for. ,project related
,purposes.; ,', ;", .;.. r.
..,,..
6. . May contractually limit -:its.
'.', ;ability to exeroise authority,
bllbwing a municipality 10 enter
. intO. a contract w.ith ~,ondholders,
.1 ~ '" . "'!"
6, .' May', ,sdl , .ils. lands and
'. pr9pertle!!:to._privato or pubJic
.partle~,:, ,S~le is',,4ependent on
these patlies',.,rooponsibllity to
. continue with ,t4e redevelopment
plan8peoifi~d;by.the:HRA. .
;..."
,Ii'
7," :Make alll1l!Cessary ~().ntracts
';:in order to secu~ payments'pf"its
bonds,
.'
.'),
'''',
1-,.,
7; May. act as,(oo_eral government
. agent ill carrying out provisions of
Mun'icipal 'Housing 8!1d
Redevelopmont Aot.
:;'
,
",:
.",:
.,
. .9, Provide r~location payments
and ijsslstaltce in 'acco'rdanco with
. federal guidelines, '.
"
I
31
Hconomia Aulhorltie.'l .
(continued)
Activities:
I. Acquire property for creation
of development dl$l,ti.ct that .is tax
exempt. . " . .
. '2:'$ell 'or lease"land'either by
. private or pub~I.~. ~~~n&;.
3. Cany out EDA lawto develop
and improvef' 'land,' wilhin tho
dislrict. The BDA may make any
nccessai)' arr~n'gemei'lts to make
land ~uitab.lo fot development.
4. Exeroise Eminenf Domaht
, ,,,.
S, Enter -into' contracts'. for tho
purpose' 'of ....' eConomic
development. ' .
6, PurcHase 'all ma(oriills needed
'to carry oul development.
CroSs reference powers:
I. Exercise .' Induslrlitl
Development powers for HRA
and BOA powers 'Cot indutltrial
development activities,
Port Aulho~iti6S:
Purpose:
Originally. tho purpos.c' behind port
authorities, was t9 _a~NUlr.e and pr(lmote
dcyclopmcnt. of ,'hllrbo~ . and . port~.
Currently, tb~ Qnly operattng port In this
regard i~ .that of, th,a . Dulu.th P(lrt
Autbority. The. ,addilionol 2$ port
authorities in .MlnlJesQta exist.to prom?te
econQmlc .< '..development, ,h~,ludmg'
inc~ellsw .,commerce an4 acqUlslU~n ,of
filcllities within the speci,fied port dIstrict
ofthe City.
Governing Body:
i' 'p'ort . a~tb.ority: .is. ~ :govemmental
subdivision of tile state. D'ireot ~."tbority fs
handled by a board of commissioners
(u~l.!ll.11y:3.-7 members) appointed by t~e
City Counoil.; Ports. ~r.e. a s~lutoflly
created municipal body,
Ge~:eral Pori; Activities:
1." Adopt pl@l1~ 'f~r improvelpent and
development of port iJjslrict~, " "
2. Oversee 1he aotivities of pnvately
owned port.faoilili~s: "." " '. .
3. Acquire and construct various fa.c~litie8
an4 oh~rge for t~e use of these faCIlities,
4. ,Acqulre.lease,'oym and operate, real or
plfrsonal property. "'< .
S, Sell or exchange property (real or
p~rs.QnfllrQwned 1,'ly .the port,
6. DetelnJ.i,tte legislptl,on to I.mprove
development and commerce within the
district, , : ,I, '
7. .Apply to the, federnl. Foreign Trade,
Board for ftllthodUltion to eK.ercise 111e:
powers relating 10 foreign trade zones.
8." . ,AQt,; fl8:"~gent for the. ~eral
gover.mnent to carry' out the prOVlS.lons of
8eotions469~090 to 469.108. . .
9, Issue Revenue Bond~ and with the
approval of the City Council. given by
ordinance; Gener!.'l. Obligation. Bonds
seQu'red by,a pledge ofthe,"FulI Paith and
Cr~WI.ofth~.Cily:, .
I
M~nf9ip81 D~velnpmetll.nlstricls:
Purpose:
The purpose of an MOD is to improve the
general economy of a community by
: ,increaslrigempl6yment and enhancJng1he':
'Iaxbllsc;' " .. . 1.:1 .'. 1.1 .
Governing'BodYI
'..-,
the MOD :falls under control of the City
Council/County.,., Commissioners,.' .The.
c(luncil then designates a board to
. admlnister"thcr. districts, ,'In ,'Jirst ; class. '.'
{lilies, an advisory board must be c~l~d."
to aid with district 'activitles. A ml\lonty
<If members on' the board must. b~ 'feal
property oWners on lands wJthin the
district., Tn St.. Paull and Minneapolis the
board.must be,elected, in other Cftle$ the'
members may b~ appointed. . .
Activities:
t,:.'.An"MDD may obtain land through
eminent domain or negotiation.
2. The MOD may desigh: a development
progmm withfn the district,. . --:. ....
3.. The'MQD may.llIrther'develop'the
. facilitieS transpol1atlon, or overall quality
of life, 'in a district through buJlding', ':1
. acquisilion, construction or .
reConstruction,:
4, Tho" munloipality may bD siven.
ordinances regulating traffic In parking
. .facililles or pedestrian skyway systems,
'S...'A muniCipalitY may lease all or
pOrtions of the basement,lst or 2nd floors
of buildings within the dislrict.
. . 6, The. MDD may' acoept smnts from
. private. inslitulions .or other sources for
public' facilities and general
improvements.. .
7. The municipality may use pnvate
de-veloperS: to 'oonstruct buildings/~oilili~9
under the development plan, The CIty Will
reimburse the developers from MOD
llinds,
8. A municJplility has the authorizatio~ to:
install lighting systems, street SignS,
construct speciallandscapit1S, install snow
removal systems. and build public parking
ramps,
City.Conncil ",_. ,"!' :"
;loPUJP9se:
" The main purPose of any City C9uncil
. '. regardhlg the development U!1its in this
,,:report, is,t", ~9~ as.a;cqn.lrol.meph8nj~m
, 'for, operations. The p,ower of the. City
COUncil a.nd the Controls H has o'y~r.~ch
'of these un'ils varies :from City to City.
.Fpr Port .{\,utho.rity!, _ , I
Tho ..,City" ,Co,.nelllCounty
Commissjon6r~ pf.flUY P()ff:, ~as j.ndi~eot
.pon1ro) oVe'r a port's use of general
obligatiQJlll .b.!J.I1ds. u.s~ . for, ind",slrial.
pf<)J~ts... t. .Clty ._:.; C01\nQiI!~ounly
Commissioners h!\~ .the. flul.h9T1ty, to
approve the board ofcominissioners for
. ", any port. If a ~evc;n.Jl1eJ:'ll~ef bOJlr~ is
.,.. . . developed,' tyro meIJ:Iber~ l11\{st be)ro.~
..... ., the' City 'Council!9,om\ty..
.commissioners,
. .' . . . ~ ,
For Mu~jolpal Developmept pistr~ot:
" Cily:Counoil has tho power to desi8l:1ale
an existing department, agency, HRA, or
ottierto administrate Ihe district.
City Council may adopt ordimmoes
:, designed to aid specific MDD proJecl8,
The City has the power to create an
MDD advisory board. .
The City C(luncll may defer p[(lperty
taxes on improved pr(lperty (within the
dislrict) vmere' Il private de~eloper
oonstrucls the improvement upon request
of the economic developer,
32
Port Authorities:
(continued)
10, : Contraot with outside parties for the
port,
J 1. Bmploy a director or additional staff
. as it deeins neceSsary.
'12, Allow membership in'organi,Uj.tions
to advance port activities and Provide
funds for publio relations assistance.
,<
CitvCout1r.i1'
(ooplipu<<I)
For Municipal Industrial Development
Act:
These powers granted to a port are
connected with powers of industrial
deve~opment distriots:
'I:; 'DGvillop' aild:improve property wilhiti
an. indusfripl district and 'ffillke them .
.~dequ~te ior induslrlal use, ' ,.
2. EXercise the power of a City
regarding mined underground
deveJop,"cJ1f..
3; Obtain rights and e~sements
conneCted with industrial districts.
'4, Exercise the powers specified .under
Min.. SI.1. !! 469.152 to 469.1651 to
fur1herimprove the purposes of sections
469,090 to 469,108 (port .u'hor;ll.. n.d
industrial development districts).
S.: - Bnter into a partnership agreement
where tbe port serves as a Umi,ed:partner,:
"only, ". ".' .' .'" ' ,
6. Receive for one dollar, taK forfeited
iand.
7. Usethepo:werofeminontQoinain,.
8. A port aulhor!!)' may create lntluslrial
developmM~ disldcls withiri: lhe 'port
distriot.' .
. 9, A port may obtain lands and taoilities
required for ip-du~trial developinent
pUlposes. ,
t.O. Cooperale~ and become an agent to
the federal government in carrying out
legislation concerned wilh opomlions in
harbor and industrial districts.
II.. Op518te and maintain vado'us
parking sysfems and faoilities.to improve
economic developmen~,
City . Council acts ,as the overall
, Qoveming Body with direct and indirect
.: control 'over municipal activities,
For Rural Developmont Finance
Authority Act:
lti:appllcable--Co\lnty related.
For an HltA:
'. : ,
qry CQunoil: approves appointees'to the
HRA Boa~d of Directors.
lCity, .~ouncil. lla,sc~rtal!'J powers of
, restrictions that may be enforced on the
HRA, Generally, projects and aClivilies
must be approved by the City Council.
': For an EDA;'
The City.Colinoil may establish an BDA
by way of enabling resoJutlon, It may
also det,~nnine, ~he l!Peoiflo powers the
BOA, is to havo in that
resolution.
""
. City Council must hfllve ,nembership on
the BOA Board of Commissioners, Tt
may. serve. as the' ~DA, BOllrd of
Commissioners in entirety or choose a
portion of members from the business
community or general publle.
City Cou"ncil' approves the Mayor's
appointments to the EOA Board of
Directors. .
33
SA/JIPI:e llYLAWS AND ENABLING RESOLUTIONS
EXTRACT OF MINUTES
OF MEETING OF THE CITY COUNCIL
,OF THE CITY QF [NAMEOFCITY], MINNESOTA
", .'1."
HELD:
, [Year]
Pursuant to due call and notice thereof, a regular 01' special meeting of the City Council
of.the, City of [NameofCity], Minnesota, was held at the [NameofCity] City Hall on
" ,[Year], commencing at p.m.
T!1efollowing members of the Council were present:
and the following were absent:
,: .
, Councilmetriber
adoption:
introduced the following Resolution" and moved' its
, RESOLUTION CALLING FOR PUBLIC HEARING ON THE QVIlSTION OF
., ESTABLISHING AN ECONOMIC DEVELOPMENT AUTHORITY FOR THE CITY
, ,
'. "' ," . .,
IT IS HEREBY RESOLVED by the City Council of the City of [NameofClty],
Minnesota, I\s follows:
, ,
, 1. Recitals.
(a) The City is authorized pursuant to Minnesota Statutes, Sections 469.090
through 469. I 082, to establish an Economic Development Authority for the City.
(b) The Council desires to initiate the pl'Ocess for considering the
establishment of an Economic Development Authority.
2. Public Hearing. The Council shall hold a public hearing on the question of
establishing for the City an Economic Development Authority and the City Clerk is hereby
authorized and directed to cause notice of that public hearing, substantially in the form attached
to and made a part of this Resolution, to be published in the City's official newspaper once a
week for two consecutive weeks prior to the scheduled public hearing date, with the first
publication occurring no earlier than 30 days prior to the public hearing date.
The motion, for the adoption
Councilmember
following voted in favor thereof:
of the foregoing resolution was duly seconded by
and upon vote being taken thereon, the
34
and the followingvoied againstth~'~amei' ';",: '.,' ,
\ ' . ".r ,I.': .
'. " \',<
....:.'1.: :",.
whereupon the resolution,.was, declared 'duly: passed and adopted and was signed by the Mayor
and City Clerk, '
'.:~<';~I.:' "".\:..'o<'~, .." :1 Ii.!;>
....
'"
',"J"
"
. '.'
~dopted by the CitYCounci! on
,[Ye~r].,,""
-,-."
.;,
',\'
",
.,', "
~ttest,"
By
Mayor
"
, '
, :,'/
"
"
, ,.city,Clerk
:..:' ." ".'
..'.'
", i :',-
, -.:1.-
,\:,."
".., .
I. ."
'0", I..,::
;.;..
-!".
.' I.; '..
..i "
"!.
'I
35
NOTICE OF PUBLIC HEAIUl'lG". "
ON THE PROPOSAL TO ESTABLISH
AN ECONOMIC DEVELOPMENT AUTHOIDTY
",FOR THRCITYOP' [NAMEOFCIT'Y], MINNESOl1A .'
'","
'Notice is hereby given that the City Coullci! (the "Council") of the City of [NameofCity].
Minnesota, will hold a publichellring on " [Year],at.a 'meeting of the Council
beginning at approximately ~ p.m.,' at the [NameofCity] City Hall in the City of
[NameofCity]. Minnesota, relating to the question of the establishment by the City of an
economic development authority (the "EOA") pursuant to Minnesota Statutes, Sections 469.090
through 469.1682.
;; ; " .~'.:
Following the public hearing the Council will consider an, enabling resolution (the
"Enabling Resolution") which would establish the EDA. The Enabling Resolution, a copy of
which is on file and available for inspection in the City offices, would authorize the EDA to
exercise all powers granted to such authorities pursuant to the above-mentioned stat,utes and
would designate that the EDA would be governed by a five-member Board of Commissioners.
all of whom would be members of the City Council. Upon approval of the Enabling Resolution,
an organizational meeting of the EDA will be held on the same evening.
All Interested persons may appear at the
views orally or in writing.
public hearing and present their
36
STATE OF MINNESOTA '
COUNTY OF [NAMEOFCOUNTY]
CITY OF [NAMEOFCITY]
)
)SS
)
':..' II
"
, I, the undersigned, being the duly qualified and a~ting City Clerk of the City of
.lNameofCity], Minnesota (the "City"), do hereby certify that I have carefully compared the
attlu)hed and foregolrige*trabi iifmlriutes o(~ reguhli' or~peCial n;eetitigqfthtiCityCouncil held
. .. ..... . .".:'".' . . ','. .". '.", '", :; "':" . '. .". '.' ". ."
on
, [Year], with the original minutes on file in my office and the extract is
a full, true and correct copy ofthe minutes insofar as they ret~te to calling it public hearing on the
question of establishing an Economic Development Authority for the City.
,'I"
Witness my hand as City Clerk and the official seal of the City on
[Year].
City Clerk
(SEAL)
37
EXTRACT OF MINUTES
OF MEETING OF THE CITY COUNCIL
OF THE CITY OF [NAMEOFCITY], MINNESOTA
.. ".
, [Year]
HELD:
!"-
" ,'. ,Pursuant to due call and notice thereof, ,a regular or special meeting .o~ the City C.ouncil
of the City of [NameofCity], Minnesota, was held at ihe [NameofCity] City Hall on '
,[Year], commencing, at p..m" C.T.
The following members of the Council were present:
and the following were absent:
introduced the following Resolution and moved its adoption:
C.ouncilmember
,ENABLING RESOLUTION ESTABLISHING THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF [NAMEOFCITY], MINNESOTA,
UNDER MINNESOTA STATUTES, SECTIONS 469.090 THROUGH 469.1082
BE IT RESOLVED by the City Council (the "Council") of the City .of [NameofClty],
Minnes.ota (the "City"), as follows:
1. Recitals. The City is authorized pursuant to Minnesota Statutes, Sections 469.090
,through 469.1082 (the "Economic Devel.opment Authority Act"), to establish an economic
development authority .for the City and the Council desires to do so in order to promote certain
economic, commercial, housing, and/or industrial development and redevelopment goals and
objectives. The City has caused notice of a public hearing on the establishment by the City of an
economic development authority to be published in a newspaper of general circulation in the
City once each week for two consecutive weeks, and pursuant to such notice, a public hearing on
the proposal has been held by the Council on the' date hereof, at which hearing all persons
desiring to present their oral or written comments on the proposal were given an opportunity to
do. so.
2. Establishment of Economic Development Authoritv. Pursuant to the Economic
Development Authority Act, the Council hereby establishes an economic development authority
for the City to be known as the Economic Development Authority of the City of [NameofClty],
Minnesota (the "EDA"). The EDA shall be governed by a board of commissioners thereof
consisting of five members, all of whom shall be members of the Council. Each Commissioner
of the EDA who is a member of the Council shall cease to be a Commissioner effective at such
time as he or she is no IO,nger a member of the Council, and a successor Commissioner shall be
38
appointed pursuant to the Economic Development'Authority Act to serye:t1iereinairider'ot"the
applicable term so vacated.' i '", ".' ," : ,'.,', ,
[Revise to reflect ifEDA'Board consists of community llIembers and councii members.]
, ,3. , . Powers. T~e EDA shall, ha:ve all pqwers given to an economic d~velopment
authority piirsUlllitto the!Economic Developmerit' Auihority Act,'as the same may'be amended or
supplemented. , '
, '::, : ' \." :.,: :. " .. , , . . , : I ; : ~ .. . .:' : I . : ; : .. ., . . -c. ."
,[Revls,e to reflect if .City Is limiting the poWers of the J!:DA]
p' '..:. ",'" .: .: I. ;, l :;:'., . '. '.. ! ' ~..., ~, .? " . '. . . :'. : ' . .
, ,',' ,The' motion for,;the' adoption'; of the
Councilmember
following, voted in favor. thereof:
; foregoing resolution was duly seconded by
and upon vote being taken thereon, the
and th~' following voted against! the same: '
:. ,," "
whereupQn the resolution was declared duly passed and adopted and was signed by the Mayor
and City Clerk. Treasurer. '
Adopted by the City Council on
. [Year].
Attest
By
Mayor
Clerk
I
39
STATE OF MINNESOTA
COUNTY OF [NAMEOFCOUNTY]
CITY OF (NAMEOFCITY]
,'", ..'"),, ' , ,',' ,
) SS
)
. ',':'
. ",. :. . ',' ., ,"; . . -".:, .', ." . '-,"
I,jhe unqersigned, ,being the duly qu~Hfi.edand ,actin~ City, Cl~*, pf !t~eCitY,of
[NameofCity], Minnesota (the "City"), do, hereby certify that I have carefully c'oinpared the
.' "
attached and foregoing extract of minutes ofa regular or special meeting of the City Couitcil held
on
, IYear], with the original minutes on file in my office, and the extract is
a fuJI, true and correct copy of the minutes insofar as they relate' to an enabling, resolution
establishing the Economic Development Authority of the City of [NameofCity], Minnesota.
'''1: .' . ,.,.
Witness my hand as City Clerk and the official seal of the City on
[Yeai].
,'.
"" .
City Clerk
(SEAL)
40
RESOLUTION ORGANIZING THE ECONOMIC
DEVELOPMENT AUTHORITY OF THE CITY OF [NAMEOFCI1'Y}, MINNESOTA'"
,...';;';'
':."1,' :,:,",
.-'
IT IS HEREBY RESOLVEO'by,the' Board of Commissioners (the "Board") of the
Economic Development Authority 6f thi,. City, of [Nameoffiity], Minnesota (the "EOA")as
follows:
1. Recitals.
:,"!"-':
, (a) On , , [Year}, the City of [NameofCity}, Mipnesota (the'
i'City"),licting through its City' Cou!\cH;adopted an enablirignisolution esiablishing the
EOA pursuant to Minnesota Statutes, Sec~ions 469.090 through 469.108. "
, ,
(b)" The Board wishes to provide for the basic organiiaii611of the EDA,
including appointment of officers and adoption of Bylaws.
2. Adoption of Bvlaws and Appointment of Officers. The Board hereby (I)
approves the Bylaws of the EOA, as pr~sei1ted on the date hereof for the Board's consideration,
, and (2) appoints and approves the foilowjng officers of the EOA (Note: the offices of President,
, Vice,-President and Treasurer must be held by Boardmembers, but the offices of Secretary. and
Assistant Treasurer need not be; the offices of President and Vice-President inust be held by
different persons):
President
Vice~President
Secretary
Treasurer
Assistant Treasurer
The President shall be the chief presiding officer of the Board and shall have such other
responsibilities as may be required by law or conferred on the President by resolution of the
Board. In the absence of the President, the Vice-President shalJ assume, all of said
responsibilities of the President. The offices of President, Treasurer, and Secretary shall be
elected annually, as required by law. The Secretary shall act as the chief recording officer for the
Board and shall maintain a file of minutes of Board meetings and resolutions.
In accordance with Minnesota Statutes, Section 469.096, Subdivision 8, all checks of the
EOA shall be signed by the Treasurer and the Assistant Treasurer and shaH state the nature of the
claim for which the check is issued. As required by law, the EDA shall adopt an official seal.
3. Regular Meetings of the Board. The Board's regular meetings shall be heid at
such times as the Board may designate.
I'
41
The following Boardmembers were present:
and thefollowingwere absent: '
"
" .
The motion for the adoption of the foregoing resolution was introduced by Boardmember
and was duly seconded, by Boardmerober ,
and upon vot~beingtakenthereon,the followingvoted.in favor tl:tereof:
and the following voted against the same:
, "
whereupon the resolution wasdeclared duly pas,~edand ad9pted an,d was sIgned by thePresident
and Secretary~ ,,',", '" "", ,:, ",,' " ',', ,
' ,
A40pted by' the Board of Commissioners on
, [Year].
Attest
. "."
By
, Pre,sldent
"
Secretary
.j.
42
STATE OF MINNESOTA )
COUNTY OF [NAMEOFCOUNTY] ) SS
ECONOMIC DEVEt'OPMENT:'."':" ,i ,,,, 'iJ'" " "
AUTHORITYOFTHECtTV'i,:.;, I,', )' ....,...:'
OF [NAMEOFCITY]. MINNESQTA. '., ) ,
. ..;. ',:ii..:,'': ,.
..1; "
J.' '"
",
, ' ',', 1; ,the urtdersl~edi being the dulycjualified,and ~ciing Seoretary of -the , Economic
!. J::' ":," ',:, "'" "," . .1:.. '. ',", ' .:." '.' ",'"; ,. . '"
"',:'".' "-;'..\;', ."
. .....<
hi "," .. .
Development AuthOfltybf the City of; [NameofCity]; Minnesota; do heteby 'certify thatIhave
.1 ; . . \ .' . . I ~I"," . I . i ; i ~. . ': !"'! Ii -; '-.' ,...: I ,; :.' ", !: ",.:: , ',. , . . 'j~ :.'
carefully compared the attached and foregoing extract of minutes of a regular or special meeting
I ,.,.., '. - . ,-:.'" . "'. .; , ". _ . ,. ~....: . . < I . . . :'-.' .. ' . .:' . .
of the Board of Commissioners Iieldon ' .' '; ,
,: ;, . [Yeili']ivJith the' original
.;" .:
m,inutes qn file in my office and the extract is II full, true and correct cqpy ofth~ minutes insofar
....' ;-:', " ... .", :..,; '. ", ..... .,'j: ";1.: ":' _ :", ,". i\.:' :. 1 :
... .
as they relate to a Resolution Organizing the Economic Development AUthoriiy of the' City of
[NameofCity]. Minnesota.
.';;" . i , . ':,
' WITNESS my, hand officially as Se,cretary on '
I " "
. [I'c:arj,
."':, "
..";.:' .,'
..1.
_i..;.,:,:.
Secretary,
<. .
".
T' :" j ,
'.;
. '" I.
'i:. '!
.,'
I
43
. 'I
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BYLAWS OF THE ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF [NAMEOFCITY], MINNESOTA,' ,
ARTICLE I - THE AUTHORITY
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Section 1. Name of Authority. The name of the Authority shall be the "Economic
Development Authority of the' ,City, of:[Nameofpty] , Minnesota" (which may sometimes be
referred to as the "EDA" or the "Authority"), and its governing body shall be called the Board of
'Commissioners: (the i"Board!'). .1;'heBoardi shalL be, .thebody.responsible for the general
governance of the Authority and shall conduct its officlai business at meetings thereof. '
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Section 2. Seal of Authoritv. As required by Minnesota Statutes, 'Section 469.096,
S!lJ:ldivjsion, I; ,the 1}lIthority shall have an official selll, ~hich shall ,be in the form depicted On
Exhibit A. ' ,
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, , <:.. Section'j:' "'o'ffict of Auilt~fiiy.
[Nameof(;ity] City Hill!.
The' offices ~f th~' Authority shall be the
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ARTICLE II - OFFICERS
Section I. Officers. The officers of the Authority shall be a President" ,a Vice-
President, a Treasurdr, an Assistant Treasurer and a 'Secretary. The' President, the Vice-President
ane! the Treasurer shall be members of the Board and shall be elected annually, and no
Commissioner may be both President and Vice-President simultaneously. The Assistant
Treasurer and the Secretary need not be members of the Board.
, Section 2. President. The 'Presidint shall preside at all meetings of the Board.
Except as otherwise authorized by resolution of the Board, the President and the Secretary (the
Vice-President. in the Secretary's absence or incapacity) shall sign all contracts, deeds and other
instruments made 01' executed by the Authority, except that all checks of the Authority shall be
signed by the Treasurer and Assistant Treasurer. At each meeting the President shall submit
such recommendations and information as he or she may consider proper concerning the
bus.iness, affairs, and policies of the Authority.
Section 3. Vice-President. The Vice-President shall perform the duties of the
President in the absence or incapacity of the President; and in case of the resignation or death of
the President, the Vice-President shall perform such duties as are imposed on the President until
such tinie as the Board shall select a new President.
Section 4. Secretary. The Secretary shall keep minutes of all meetings of the Board
and shall maintain all records of the Authority. The Secretary shall also have such additional
duties and responsibilities as the Board may from time to time and by resolution prescribe.
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:,'!Section 5. " -,'Treasurer.Thc:l Treasurer shall have, the cafe Imdcustody of all funds of
the Authority and shall deposit the same in the name of the Authority in such hank or banks as
the Board may select. The Treasurer and Assistant Treasurer shall sign all orders and checks for
the payment of money and shall payout and disburse .such moneys under the direction of the
Board. The Treasurer shall keep regular books of accounts 'showing recei]its'ai1d expenditures
and shall render to the Board, at h:ast annually (or more often when requested); an account of
such transactions and also of the financial condition of the Authority. The, Treasurer shall post a
bond as required by Minnesota Statutes, Section 469.096, Subdivision 6. 'The Assistant
Treasurer shall act as the Treasurer's agent and assistant to perform the above-described duties,
subject to the Treasurer's approval thereof.
""Section6.' ,Additional Duties., 'The 6fficets 'of the 'Authority shall perform such other
duties and fUnctions as may from time to time be required by'the Board or the bylaws or rules
and regulations of the Autho.rity. ,
" Section7~' 'Vaclmcies. Should the 'office of President; Vice-President, Treasurer,
A,ssistant TreasurClr or Secretary become vliCani, the Board shall elect a successor at the next
regular meeting, or at a special meeting called for such jiurpose; and such election shall befor
the unexpired tenn of said officer. , '
Section 8. Additional Personnel. The Board, may from time to time employ' such
personnel as it deems necessary to exercise its powers, duties, and functions. The selection and
compensation of such persoimel shall be determined by the Board.
"ARTICLE III. MEBTINGS"
Section I. Regular Meetings. The regular meetings of the Board shall occur
according io 'a meeting schedule, if ally, adopted or revised from time to time by resolution of the,
Board.
Section 2. Special Meetings. Special meetings of the Board may be called by the
'President or any two members of the Board for the purpose of transacting any business
, designated in the call. The call for a special meeting may be delivered at any time prior to the
time of the proposed meeting to each member of the Board or may be mailed to the business or
home address of each member of the Board at least two (2) days prior to the date of such special
meeting. At such special meeting no business shall be considered other than as designated in the
, call, but if at least four members of the Board are present at a special meeting, any and all
business may be transacted at such special meeting. Notice of any special meeting shall be
posted and/or published as may be required by law.
Section 3. Ouorum. The powers of the Authority shall be vested in the Board. Three
Commissioners shall constitute a quorum for the purpose of conducting the business and
exercising the powers of the Authority and for all other purposes, but a smaller number may
adjoum from time to time until a quorum is obtained. ' When a quorum is in attendance, action
may be taken by the Board upon a vote of a majority of the Commissioners present.
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", ,Section 4. Order of Business., At the regularme.etingsofthe Board the following
shalt be the order of business I " ',"
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,2.
3.
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,5.
6. :
7.
, Roll cal/. ", ,,' , ' , ' ,
, Approval of the, inInutes of previous meeting, ' '
, ail]s and cOlnmunications.
,Reports, ,
Unfinished business;
, New business, ' '
Adjournment.
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,All resolutions shall be written or transcribed and,shall be retaine4in the jQurnal of the
, proceedings maintained by the Secretary, ' '
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Section 5. Adoption of Resolutions. Resolutions of the Board shall be deemed
adomed if approved by not less than a simple majority of all Commissioners present, unless a
different requirement for adoption is prescribed by Jaw. ~esolutfons may but need not be read
\lloud;prior t() vote. taken thereon and may but ne.ednot be executed after passage.'
Section 6. Rules of Order. The meetings of the Board shall be governed by the most
rel;ent edition of Robert's Rules of Order.
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, ARTICLE IV - MISCELLANEOUS
Section 1. Amendments to Bvlaws. The bylaws of the Authority shall be amended '
only by resolution approved by at least three of the members of the Board.
" ' ,Section 2. Fiscal Vear. The fiscal year of the Authqrity shall coincide with the fiscal
year OCthe City of [NameotCity], Minnesota." , "
, Adopted on
, [Vear].
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Exhibit A
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Form of Official Seal
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SAMPLE JOB DESCRIPTION
POSITION TITLE:
, Econom~~ ?~velo~ment Director
Economic Development
DEPARTMENT:
ACCOUNTABLE TO:
City Administrator
PRIMARY OBJECTIVE OF POSITION:
Serves as chief staff to the Economic Development Authority, planning, directing, and
implementing the economic development efforts of the City under the direction ofthe Authority.
Performs highly skilled, managerial, coordinative and technical tasks. Generates business leads,
promotes business retention and expansion, creates a positive attitude for development and raises
supportive public awareness for strategic economic planning and development.
DUTIES AND RESPONSIBILITIES:
1. Prepares, organizes and implements a coordinated target marketing program to generate
leads for specific business and industry.
2. Researches, designs, recommends and implements programs to encourage location of
new businesses and expansion ,of existing businesses within the City. Coordinates
resources of public and private sectors . i.e. Federal and State Grants, Industrial
Development' Bonds and SPA Loans, Tax Increment Financing, banks, mortgage
companies, etc.
3. Develops strategies and programs for allocation and delivery of City/Authority fil)ancial
assistance resources.
4. Maintains contacts with Minnesota Department of Employment and Economic
Development, area Development Corporations, and area commercial and industrial real
estate brokers and developers.
5. Maintains current inventory of potential business location sites within the City - both
building and vacant land, including contact persons.
6. Maintains updated demographic data, promotional materials and existing building lists
for economic development programs.
7. Works with prospective businesses to tailor a proposal suited to their specific needs,
including alternative locations and financing packages.
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8. 'May negotiate'ecortoriilc""Incentiv'e 'packligeswith 'prospective bbsinesses. ' Analyzes
financial needs of specific 60ll1parties"to insutll'that pliblic/Authol'ity'resources are
applied judiciously.
9.: ' " :Maintairis'cont'libt 'With' clll'rent businesses to stay abreaSt of their 'futute business plans
and needs. ' ,
10. Identifies and contacts prospective clients for location and expansion wlthjii the City;
H. "Assists .locating" orexpliti.ding' busiriesses"'ln understanding' and'imticipating
comprehensive plan locations, zoning districts, standards and processes. W orkii closely
with City Planning, Building Inspections, and Engineering Divisions to help facilitate II
' sm<ioth're;;i~w process:" ,,' " " < '" ' , "';' ,',
12. Periodically reviews all economic development programs for effectiveness, making
recommendatlonsto Authority arid City officials for,(:hariges as deemed appropriate.
13. Participates in exhibitions, seminars, media events and the like to attract businesses to the
City.
14. 'Limited travel may be required to attend conferences, meet with prospective clients,
research potential problems, financing, etc.
, 15. Prepare annual budget and work program for submission to the Authority and City
Council.
16. Provide quarterly and annual report to the Authority and City Council regarding status of
, work program, future program potentials and activities of the staff.
17. Serves as chief staff supporito Economic Development Authority. Prepares agendas and
background information reports for Authol'ity meetings. Attends meetings of the
Authority, Chamber of Commerce, City Council, etc. and follows up staff responsibilities
as assigned.
18. Completes other duties as assigned by the Economic Development Authority.
KNOWLEDGE. SKILLS AND ABILITIES
1. Thorough working knowledge of the principles, practices and procedures of economic
development.
2. Ability to organize and coordinate support from professional and technical City staff,
legal consultants, other government agencies, private business, and the financial services
industry.
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3..' .. "Ability to analyze the economic~.of a partIcular husIll~sS locationor eJ!:PIlI1~ion project, so
"as to make independent judgments about, the, effectiveness of financial assistance or
inducements. "', , ,'," ' " ,. " .', ,
4. Ability to e~tablishand maintain contact,s ,and .effective.working rellltionships with
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potential business clients.
QUALIFICATIONS
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I. ' I;lachellJr's Degree in Public Admipistration, BusIness Administration, Or a closely related
, ,,-(ieldhighly desirable. '
2. 'Minimum ~f tliree years of experience wo~ki~g in economic, develQpment, preferably at
the local government level. ' ,
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3~A demonstrated record of ongoing continuing e~ucati(m in economic devellJJlIllent.
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SAMPLE REVOLVING LOAN FUND POLICY
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OakdaleSeed Fund,,"
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Purpose
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The purpose of the Oakdale Seed Fund is to expand the tax' base' and
promote new-joh opportunities 'by providing small business concerns and
, developers" of 'multi-teriantfacilitles with a pOltion of the financing
necessary for their projects. These Administrative Procedures set forth the
" organization and gUidelines for personnel engaged in making "loans
ithtoilgh th'eSeed Fund: All personnel engaged in interviewing applicants '
forPund' assistance and accepting, screening, processing applications and
servicing; 'loans 'for the' program should become familiar with this
'information. The procedures are for use by private lenders as well as staff
employed bytlie City of Oak dale. "
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Scop~ of EDAI
'Seed Fund ' "
Activities '
Putpose '
The' administrative procedures are a guideline for persormel working with
the Oakdale Seed Fund. They set forth 'the internal requirements of the
program and how it should be managed by the OakdaleEDA.
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, The >EDAwas 'created with the intention of assisting small businesses
primarily by providing financial assistance for growth and expansion. The
EDAaildthe'SeedFlind lire intended to provide such assistance within the
, speCified boundaries of the City of Oakdale. Any revenue generated by
the',8eed . Fund 'to the ,EDA: is incidental to the community benefits as
measured by the creation and retention of jobs, increased tax base,
expanded business ownership activities and improved community
services.
Authoritv
Chapter 469 of the Minnesota' State Statutes as amended authorizes the
BDA to make loans to prospective private businesses. Recipients of
financiaL assistance, under this program are subject to non-discrimination
requirements of the laws and policies governing such government
assistance: '
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Project Financed
By the Oakdale
Seed Fund
The purpose of the Oakdale Seed Fund is to provide assistance to
small business. This may occur by directly providing financingto
the small business or indirectly by providing financing to a
developer who will build a facility to assist a small business.
EliglbleApplicaut
, Detlned .
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Applicants mllY, be small businesses, or developers that are
organized as a proprietorship, Pllrtnership or corporation.
Size Eligibility ,
For Businesses
, For purposes of the Oakdale Seed Fund"a business may qualify if
its sales are less than $6 Il)illionllnnually for each of the last two
, fiscal years preceding theappll.cation for assistance from the fund.
:The Economic D\lyelopment Authority may make exceptions to
this rule on Ilcase"by-case basis. ,
Sound Business
Purpose
The proceeds from a loan made through the Oakdale .seed Fund
are to be used to assist an identifiable small business concern ora
developer in accomplishing a sound business purpose. A sound
business purpose WO\lld not exist if any ofthe following conditions,
, ',occur:
a) If the project proposed will destabilize existing multi-tenant
facilities or hav.e an adverse impact on them.
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Ifitis to accomplish an expansion or conversion which is
unwarranted in light o( the small business concern's past
,expedence and management ability.
Ineligible '
Projects
a)
Retail businesses
b) Nonprofit Institutions
, c) Gambling organizations
d) " Lending or investment organizations
e) Land held primarily for sale or investment
Project Costs
"Project costs" should be limited to direct expenditures necessary
to acquire, construct, convert, or expand a business including site
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improvements and professional fees directly attributable and
essential to a project' such as survey; engineering, architectural,
legal and accounting. In this context legal expenditures for such
items aszOnirig charigestitle searches, title insurance, recording
fe~s,: etci.;which are clearly essential to the total project can be
hicluded as project costs. While there is considerable flexibility in
detil11nitihig the composition of a project, in general it should be a
productive asset when competed. In the classic sense, this would
" be land; b\iilding, machinery, ilndequipment. '
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Elements of '
ProJect-CoSts '
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Fund the following guidelines will be used:
Land
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Valuation of/and injected by the-small business concern into the
project should be at the appraised value based on an appraisal
acceptable to the EDA. The appraisal should conform with current
bank regulatory requirements.
Land Imorovements
Improvements which are paid through special tax assessments or
user fees should not be included 'in determining project costs.
Improvements to the land which are a portion of the project cost
could include but are not' limited to the following:
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I) Grading
2) New streets or street improvements including curb and
gutter
3) , Parking lots
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5) Landscaping
Purchased and/or Remodel an Existing Building
The cost of purchasing an existing building generally.includes the
value of the land and applicable fees and charges required to gain
clear title to the property.' Purohasing an existing facility with
funds provided by the Oakdale Seed Fund is permissible.
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"
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Ineligible Project
Costs
Leasehold
Improvements
Limited or Single
Purpose Assets
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" ,Buildin\! Construction,
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Construction includes the erection ofa new building and/or a
!riajQr addition to at,i existing building.
, Purchase Machinery and Equipment
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, , Oakdllle Seed l'~n~ proceeds cat) kused to finance the purchase
, ofml\ior items of machinery and equipment independent ofland
and building. These items are defined to have a useful life of at
least? vears. The term oftheJoan will be commensurate with the'
life, of the asset. , '
The following costs should not be construed as part of the project
costs under this program.
a) Management fees
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b) Financing costs and fees
c) Franchise fees
:iI) Debt consolidation
e) Moyingcosts
Financing ,should be permitted for leasehold improvements
including construction on leased land. The lease should be equal to
or greater than the term of the loan. The remaining, economic life
of the facility or leasehold improvements should be equal to or
greater than the term of the Seed Fund loan. Financing may be
,provided if the land or building owner allows the EDA to secure
lien positions on the land or building llnd improvements, sufficient
to fully secure its exposure or if other collateral sufficient in value
to fully protect the interest of the Oakdale EDA is offered.
:The construction or the purchase of limited use assets should not
, be financed under the Oakdale Seed Fund unless the liquidating
value of the asset plus other available collateral, if sold, would be
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Availability of
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Proceeds from an Oakdale Seed Fund loan should not be used for
'working' oapital or to'refinance prior obligations of, 'thil' 'small
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, , Since the primary focus of the Oakdale Seed Fund is economic
deyeldptnent;petsoluilresources'bfthe owners or principals of the
, , " " ,small, busine~s' concern 'should not usually disqualify the small
,,',busineslf' c'oiicem from 'reoeivihg 'Rssistance. Where credit factors
indicate the need for additionid capitalization, the injection of
,', 'pllrsonal'resources may be required to make the loan credit-worthy;
'" The. EOA should require the, perSonal guaranty of any person
" ". .iowhing,;20% or more' of the small business concem regardless of
the form of ownership. '
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M:a~i~~m Private Sector Eioosure
.'" The Oakdale Seed Fund is designed, to foster projects contributing
, , to 'sound :econol)1lC 'growth in Oakdale in such a way that
"maxhnum private ,sector, exposure is stimulated and encouraged.
The: Seed Fund should not be,a substitute for conventional business
financihll',or, be used in olaae of other soecialized state. federal or
local, programs that- may be better suited to the soecific oroiect
needs. In most Seed Fund projects a private sector lender will
make a separate secured loan equal to a certain percentage of the
,; , , total project. CIlst and will usually be secured by a senior lien on
project assets Required with the, financing. The EDA's share of the
',' " project financing will usually be secured by a junior lien position
, ,on project assets. The, EOA will use the Seed Fund to participate
'with the private sector lender in making the total loan to the small
business concem., ,
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Financing maY",be provided by regulated and/or non-regulated
financial institutions or noninstitutional sources if they are in the
, business of providing financing for commercial purposes and they
are not associated with the small business concern receiving
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Interest Rate
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Amon,nt
Matnrity
Personal Guarantees
Alter Itgo Loans
financial assistance. .' Tl:)e terms,anQ conditions of such financing
must' be acceptable to' the Oakdale EOA based on the small
business concern's ability,to repay the Oakdale Seed Fund Loan.
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, The, lender and BOA may estabH.sh their own rate provided the rate
is legal and reasonable. ,The lender and BOA may charge either a
fixed or variable rate of interest on their loan. A renegotiable rate
of interest is acceptable pr.ovided tenns and conditi.ons ,are
, established and agreed t.o.both by, the Oakdale EDAandthe lender
"at the time .of the loan approval. The EOA must be aware .of the
, lender~,s'.terms",and>conditions' in assessing the small business
concern's ability to repay theOakdale Seed Fund Loan.
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, ,Such paYrnel)ts maY be considered where circumstances warrant
their use.
,Theimaximumamount of private lender financing should be
, . included in e:ach project. At lelist50% of the pr.oject cost should be
funded by a private lender.
Maturity must be reas.onable in relation to the ,life of the ,asset
being financed. In no instance should the maturity of the Oakdale
Seed Fund Loan exceed the maturity of the loan being provided by
thejirivate lel1der. ' '
The,EOA requites ,the personal guaranty of any person owning
,'; 20% 01' more of the small business concern regardless of the fonn
, 'of ownership. "Where ownership ranges from 5% to 19% the
, , ,requirement 'f<irpersonal guarantees is discretionary. A partial
guarantee may'be considered for'less than the t.otal amount of the
'loan~Generally; Ii guaranty will not be required where .ownership is
, less than 5%; ,
Fot tax and .other reasons some small business .owners prefer to
, separate the ownership of. the ',asset from the .operating small
business 'concern. In such cases :the small business .owners form
" ,two'legal entities: One entity Owns part or all of the fixed assets
,; 'and, the other entity is the ojJerating company. Loans will be
permitted t.o the "alter ego" (passive concern) which is an eligible
small business c.oncern when:
, , ':a) The applicant (passive c.oncern) is a business entity that is
.organized, and .operated for pr.ofit, whether operating as an
individualpr.oprietorship, partnership or corporation;
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Franchises
Operational,
Req~irements
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The, operating' small' business' concern is an eligible small
business' ahd the proposed use of proceeds would be allowable
for such assistance if the operating small business concern
were the'ownef' of the property that is owned or to be owned by
the applicant;
'c) The .ownership interests in the applicant shall be completely
, " 'identical with 'arid in the satileproportion as the ownership
, interest insuoh operating small business concern;
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d) Collateral inoludes an assignment of the lease between the
applicant and the operating 'small business concern and a lien
on the property itself. The lease, including options, shall be for
aterin ofi1ot less thim the term ofthe loan;
e) The operating · small business concern must be either a
,guarantor or co-borrower, and any owners of 20% or more of
, the equity, of the operating small business concern and of the
, applicimt must also guarantee the' loan.
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A fninchise'is eligible for the Oakdille Seed Fund if the franchise
has the right to profit from his/her efforts commensurate with
, 'owoershij> 'and is eligible in all other respects. Franchises are
. ineJigibleOrily in the exceptional cases where the franchise
" , agreement 'disguised as iI contract of employment under the guise
Cif a franchise operation. Where royalty or similar payments must
be made by the borrower to the franchisor, a condition should be
considered that prohibits such payment as long as the EDA loan is
in default. Where credit factors, warrant, guarantee of ,the
franchisor shOuld also be considered.
Responsibilities of the EDNOakdaie Seed Fund
The 'Oakdale EDNSeed Fund will offer its assistance to small
business in need of financing. It will cooperate with other lenders
participating in projects. The EDA and the Seed Fund are able to:
a) , Package and process loan applications
b) Close and service loans
, c) Make 'available management services or cause such services to
be made available
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,d) Maint\lin tl].e organizational and operational requirements set
forth in these admiqistrative guidelines
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Disclosure of Information ,',
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On a loan application, n,o' recommendation of any individual,
, (includ,ing a 10l!n officer, city staff person or BDA board member)
may be divulged directly:orlndlrectly to an applicant, or to any' of
its representatives or any other unauthorized source. Only final
IlDA actions may be released.
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" Diversified Portfolio,',
~Iac~ of Business
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" , The BOA wiiI not concentrate t~e Seed Fund In anyone type of
industry. The EDA is encouraged to make loans to a variety of
" ,bllsiqesses' in differen~ industries. The Oakdale Seed Fund is
,desigl;led primarily to assist existing healthy businesses to grow
, !lnd create j()bs. While new businesses (businesses in existence for
,;lQss than two years) <10 create jobs, they should be considere<l for
Seed Fun<l financing only after careful scrutiny as to management
capability, experience, and financial support.
TheEDA s~all maintain an accessible place of business open to
the pu~lic during regular business hours and maintain staff
liejequate to perform normal blJsiness transactions. The EDA's
place of business shall bdocated within the Community
Develol'mel1t 1;>eparment of the Oakdale City Hall.
, Fiscal.Y ear.
The EDA.shall choose and establish a fiscal year. The BDA is
encouraged to establish a fiscal year which coincides with the
City's fiscal year (January I through December 31).
Records
The EDAshall, maintain financial records including books of
accounts and minutes of all meetings of the directors. All records
,and sUPPQrtingdocuments reiating to the EDA's transactions shall
be kept at Its~ principal office. Records and documents which are
, the basis for or related to the financial statements or loans shall be
preserved for the periods required by the Internal Revenue Service '
(IRS) in accordance with generally accepted accounting practices.
. Maintaining
Loan Portfolio
Docu~ents
, The EDJ\ shall develop a filing and control system which ensures
that the following information and documents r!llating to its loan
portfolio are available at its principal office. The EDA filing
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Restfictions
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Servicing'Capability
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sy~tell) must contain infonnation and documents related to each
, 101Ilj.'~aaethr~u~htheSeed Fuhd as follows: ' ' "" '
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''Loan 'applltatiori'lnchiding'all exhibits;
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2)
I,01m 'illtth6rizlitionlind all correspondence related to the
'lo~n prior .to 'closing;
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3)'
Loah' closing docun\ents including all documents relating to
PartiCipation'with the privatC'lender; ,
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" 4)' Evidlloce ot a 10% equity injection by the small business
coricern; ,,'"
5) Amortization schedule;
',."6) FinanciilJ'statemeilts of the small business concern;
'7), 'Related correspondence;
8) Evidence of field visits;
;" 9) Condition of collateral;
10) , Ticklerflle for insurance and UCC;
, , ' II)' , Evidence that taxeS and insurance have been paid;
12)" All other items relating to the loan.
Conflicts of Interest/Self-Dealing
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" : 'Self-oealing'by the EDA, its Board of Directors, employees or any
other related parties to the prejudice of the small business concern,
odheEDA is prohibited. The EDA shall not pennit a significant
relationship to exist or to be created between the EDA and a small
.. bUsiness concern to be assisted while assistance through the Seed
Ftind'is outstanding;
In most cases, the EDA will service the loan. The EDA may
require that the private lender to service the loan. In this instance,
a'setvicingagreement will be completed between the private
,', lender and the EDA. Costs of servicing will be paid for by the
, applicant.
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Notice of Default
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Loan Processing
Process for Analyzing
Loan Applications
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, In cases ,where the, private Iel)per,is servicing the loan, the lender
must agree to furnish the Oakdale EDA with written notice of any
, default,by t4Q,smalLbusinessconcern within thirty (30) days of the
date of default. The lender must give the Oakdale EDA sixty (60)
,days noticep,rior, to a .foreclosure sale.' This agreement must
incorporate provisions providing for a timely written notification
from the lender to the Oakdale EDA of any default, delinquency by
, thesm~nbusiness concern on the lender's portion of the financing
, ' and the right of the Oakd!lle ,EDA to an immediate purchase of the
lender's senior position in the loan thereby allowing the EDA the
opp,ortunity to protect lisposltlon alld to avoid the accumulation of
legal costs, preservation expenses, etc.
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Reoavment abilitv ,
An Oakdale ,~eed FundL(lan must be secured so as to reasonably
assure repayment. Reasonable assurance of repayment takes into
consideratiol)ellrnings, mllnagementability and financial condition
of the borrower as well as the value of collateral.
The intake, of, loan, application~ will be completed by the
Community Development Department staff of the City of Oakdale.
, Upon receipt of a complete application, the staff will complete an
initial review to determine the ability of the program to address the
, identified t'il)llncing need. If the project meets the intent and
general parameters of the program" the application will be
forwarded tothe,city~s economic development consultant who will
complete additional due diligence work on the application. The
consultant will provide a report on the loan request to the Loan
Committee of the EDA.. The loan committee will make ,a
recommendation to the Economic Development Authority who
will make the final decision on the loan request.
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,', Credit InfonUation and Credit Reports
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Upon reoo.ipt of the loanapplicatipn, a credit report will be ordered
from the private lender participating in the project. The report will
be provided to the Oakdale EDA if the lender receives permission
from the borrower. If the application package includes an
, acceptable, credit ,report or sufficient credit information is supplied
,by.the small,business concern/lender or is available from other
, sources a new credit report may not be needed. Letters should be
written by the private lender to credit references and others where ,
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;.' necessary tOdeterniine the-applicant's credit standing. Telephone
, contact sho~ldbe, made With credit references where appropriate.
"
" Credit Requirement. .
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'The smalI':business <;oncern must meet certain practical credit
requiremeiltilincluding the following;
I) The applicant must be in good character as deternihiedby
the private: lender and the Oakdale EOA. '
" 2), 'There must 'be evidence that management has the ability to
" operate the business successfully.
3)
The small business concern must have enough capital in the
business, so that with the assistance through the Oakdale
BOA and Seed Fund it will be possible for the business to
operate on a sound financial basis.
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4) ,: ' ,While. the, questions of security and collateral are important
in determining whether financial assistance will be
,extehded, they' are not the only factors upon which the
approval or rejection of an application is detennined. The
Oakdale BOA attaches great importance to management,
the'inherent soundness of the small business concern, the
small business concern's earnings records and prospects,
the small b].lsiness concern's long-range possibilities for
successful operation and whether the granting of financial
assistance wili increase employment or have other
favorable effects on the economy ofthe City of Oakdale.
Financial Statement Requirements
The: loan officer of the private lender must evaluate the
, reliability of the financial statement submitted. All
, statements must be signed and dated by the proprietor, a
'partner, or unauthorized office of the applicant unless they
are accompanied by an independent accountant's report.
Statements submitted on a compilation basis must be
signed by,the Ilmall business concern owner or designated
, officer. '
'Business Financial Statements
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, ': Ba'~nce sheets, profit and l()ss statements ~nd statement of
'change in, ,financial position are normally required for the
preceding two full ye~rs. In ~ddition, ~n interim statement
for the current period is required when the application is
received more ihim ninety (90) days after the end of the last
, ; fiscal, year. An aging of accounts receivable and payables
should accompany the interim balance sheet.
Ana,IYsis o( ,
Lo!!n Applications,
, Additional Data,
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,Additiona,l,financial data or written explanation may be
required where, necessary for an adequate analysis. This is
especiaIfy true for new businesses or for existing businesses
planning, major changes in their operations. Both caseS
, should require earnings projections. Cash flows or other
, ,types of data may be required where deemed necessary and
, appropriate.
Personal Financial Statements
Personal financial st~tements are required for proprietors,
general partners each owner of 20% or more of the business
including limited partners and guarantors. All statements
must ,be signed and dated.
Processin!! Time
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, All loans are to be processed within thirty (30) working
, ,days., The processing cycle will begin with the day the
application is received as indicated by a date stamp and
..' ends when the loan authorization is issued. Time awaiting
the receipt of additional information will be excluded from
, the processing time; If major delays are anticipated in
, ,receiving additional infonnation to complete the package,
the application, will be returned to the small business
concern within three (3) working days.
There are two options for loan servicing. The BOA may
elect to have loans serviced by lenders participating in the
financing for any project or service the loan internally. The
BOA may require the servicer to obtain and review the
financial statements of the small business concern annually;
,review the small, business concern's payment of taxes and
insurance, review the uniform commercial code filings on
Loan Servicing
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collateral and monitor other financing senior to' the loan to
assure, that payments are current.
The EDA may also require the servicer to make field visits
as necessary to review the condition of collateral and report
to the EDA any default Or any other adverse trend condition
or Information as they occur and take or propose remedial
servicing actions as ordinarily performed by a prudent
lender. The EDA will provide written instructions to the
servicer outlining the services that need to be provided as a
part of the servicing contract. In addition, the servicer will
not, without the prior written authorization of the Oakdale
EDA, authorize any actions regarding the EDA loan
including: '
I) Make or consent to any substantial 'alteration in the
terms of the loan instrument.
2) Make or consent to release of collateral.
3) Accelerate the maturity of the note.
4) Sue upon the loan instrument.
5) Waive any claim against borrower, guarantor, obligor
Or stand-by creditor arising out of the loan instrument.
6) Directly or indirectly charge or receive a bonus, fee,
commission or other payment or benefit in connection
with the making and servicing 'of the loan except as
authorized by the program.
Repayment
7) Require or obtain any funds, certificates of deposit or
compensating balance not under the unrestricted control
of the small business concern or any other agreement
establishing any preference in favor of the lender.
The servicer is required to ensure the timely forwarding of
the small business concern's monthly payment to the
, Oilkdale Seed Fund. '
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Upon request, this information can be made available in alternative formats.
For more information, email economic.development@State.mn.usorcaIl65l-259-7432.
DEED is an equal opportunity employer and service provider.
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