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Home My WebLink About2009-04-08 HRA Packet AGENDA MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY WEDNESDAY, AprilS, 2009 7:00 P.M. CITY HALL, CITY COUNCIL CHAMBERS 1. Call to Order 2. Roll Call 3. Approval of Agenda 4. Approval of Minutes a. January 14, 2009 Minutes b. February 11, 2009 Minutes 5. Communications a. Discussion-Open Meeting Law, City Attorney Presentation 6. Unfinished Business a. Code Enforcement Abatement Properties b. HRA Levy Authority Report 7. New Business 8. Date of Next Meeting May 13, 2009 9. Adjournment DRAFT MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY 1830 COUNTY ROAD BEAST, MAPLEWOOD,MINNESOTA WEDNESDAY, JANUARY 14, 2009 CITY COUNCIL CHAMBERS I. CALL TO ORDER Chairperson Pearson called the meeting to order at 7:00 p.m. II. ROLL CALL Commissioner Rita Andreoli Commissioner Josh Richter Chairperson Gary Pearson Commissioner Joy Tkachuck Vice-Chairperson Beth Ulrich Present Present Present Present Present Staff Present: Tom Ekstrand, City Planner DuWayne Konewko, Community Development and Parks Director III. APPROVAL OF AGENDA Commissioner Andreoli moved to approve the agenda as presented. Commissioner Ulrich seconded. The motion passed. Ayes - all IV. APPROVAL OF MINUTES a. June 25, 2008 Commissioner Tkachuck moved approval of the June 25, 2008 minutes as presented. Commissioner Andreoli seconded The motion passed. Ayes - Andreoli, Richter, Pearson, Tkachuck; Ulrich V. COMMUNICATIONS a. Update on Code Enforcement Officer City planner Ekstrand reported that after reorganization within the community development department, building inspector Jason Brash is now doing the code enforcement work. Mr. Ekstrand said that code enforcement is on track and still managed by the community development department. Planner Ekstrand introduced community development and parks director DuWayne Konewko. Director Konewko said that he will be formally reporting to the HRA commission at its next meeting, but he assured members that a full-time code enforcement officer is currently working and that updated statistics will be provided to the commission as in the past. Housing and Redevelopment Authority -2- Minutes of 01-14-09 VI. UNFINISHED BUSINESS a. Comprehensive Plan Update-Review of Housing Chapter Final Draft Jennifer Haskamp of Pulse Land Group explained that she has been working on this plan update for the past year and the HRA last reviewed the housing chapter in the fall of 2008. Ms. Haskamp discussed the process for review and adoption of the comprehensive plan update. Ms. Haskamp said that the planning commission reviewed the updated plan and held a public hearing on it. Ms. Haskamp said there has been little comment in discussions regarding modifying the housing chapter. Ms. Haskamp asked for any questions or comments from the commission. Ms. Haskamp suggested the commission may want to add something into the housing chapter on small business owners whose businesses may be affected by new development. Ms. Haskamp suggested that small business owners might be included in the item of Goal 1. Commissioner Andreoli agreed that language could be incorporated within an objective or added through language in the introduction. Commissioner Tkachuck said she was part of the Gladstone task force which planned a walkable and livable community with small businesses planned on the ground floor. Commissioner Pearson suggested dropping the word "accomplish" in Goal 3. Ms. Haskamp suggested adding "the" to Goal 3 to read: Accomplish the adopted Livable Communities Goals for Affordable Housing, since the livable communities goals have already been adopted but need to be accomplished. VII. NEW BUSINESS a. Metrostudy Report "Twin Cities 2008 Report and 2009 Housing Outlook" Planner Ekstrand said this informational document has been provided to commissioners from Shann Finwall, who received it at a Sensible Land Use Coalition meeting. b. Discussion: What would the HRA Wish to Explore in 2009? Commissioner Ulrich said she is interested in Maplewood's and surrounding cities' foreclosure rates and said she previously sent a copy of a foreclosure registration ordinance to Dave Fisher and asked whether it had been reviewed. Planner Ekstrand said rates will be provided to the commission. Director Konewko said he will check with the building official on the foreclosure registration ordinance and report to the commission in February. The commission discussed the possible results of foreclosed houses such as sidewalks not being shoveled, overgrown yards and utilities being shut off. Commissioner Richter said he wants to reiterate Commissioner Tkachuck's request earlier in the meeting that the commission review code enforcement data during the meetings. Commissioner Pearson said he wants to revisit and review the Livable Communities Act regarding what requirements the city might have in affordable housing above the 333 units by 2030 in the comprehensive plan. Mr. Pearson also asked how many affordable housing units are available in Maplewood, especially to the section eight program. Commissioner Pearson said he wants to Housing and Redevelopment Authority -3- Minutes of 01-14-09 review the truth in housing program and suggested that commissioners attend open houses and look at the truth in housing inspection report for each house before the next meeting. Commissioner Ulrich suggested the review of the building code that was started in 2008 should be completed. Commissioner Pearson asked about review of sprinklers. Director Konewko said he would check with the building official on these items and report back. c. Election of Chair and Vice Chair for 2009 Commissioner Tkachuck nominated Mr. Pearson as chair and Ms. Ulrich as vice-chair. Commissioner Andreoli seconded; the commission voted: ayes - all The motion passed. It was agreed by consensus that Ms. Ulrich would continue in the position of secretary also. VIII. VISITORS PRESENTATION Gene Tschida, 1721 White Bear Avenue, said he was attending the meeting to see what the housing and redevelopment authority was all about. Mr. Tschida said he owns properties and is familiar with section eight housing and agreed with Commissioner Tkachuck's earlier comments that things can get pretty bad in foreclosed houses. Mr. Tschida asked whether the code enforcement officer is experienced. Director Konewko responded the officer was previously a building inspector so he is familiar with city codes and is gaining code enforcement experience now. Mr. Tschida asked if the city does any lending for housing. Chairperson Pearson said the city does not directly lend funds, but participates in some state lending programs. VIX. DATE OF NEXT MEETING February 11, 2009 IX. ADJOURNMENT The meeting was adjourned at 7:44 p.m. DRAFT MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY 1830 COUNTY ROAD BEAST, MAPLEWOOD, MINNESOTA WEDNESDAY, FEBRUARY 11, 2009 CITY COUNCIL CHAMBERS I. CALL TO ORDER Chairperson Pearson called the meeting to order at 7:00 p.m. II. ROLL CALL Commissioner Rita Andreoli Commissioner Josh Richter Chairperson Gary Pearson Commissioner Joy Tkachuck Vice-Chairperson Beth Ulrich Present Present Present Present Present Staff Present: Tom Ekstrand, City Planner Dave Fisher, Building Official Bob Mittet, Finance Director III. APPROVAL OF AGENDA Commissioner Ulrich moved to approve the agenda as presented. Commissioner Andreoli seconded. Ayes - all The motion passed. IV. APPROVAL OF MINUTES The January 14, 2009 minutes were not available for review and will be presented in the next packet. V. COMMUNICATIONS a. Discussion-Meeting Start Time (change to 6 p.m.?)-no memo City Planner Ekstrand explained most of the city commissions are starting at 7 p.m. but the community design review board starts at 6:00 p.m. A 6:00 p.m. start would be beneficial in managing time and an earlier end if the HRA member's schedules would allow. Two members thought a change would likely conflict with their current schedules. After discussion by the commissioners it was decided to continue with the 7 p.m. meeting start time. b. Presentation by Staff-An Overview of the Department's Reorganization-no memo City Planner Ekstrand gave a short review of the community development department's reorganization. Mr. Ekstrand said that director of community and parks development, DuWayne Konewko, had planned on giving a more in-depth presentation, but was unable to attend the meeting due to a family emergency. Housing and Redevelopment Authority -2- Minutes of 02-11-09 VI. UNFINISHED BUSINESS a. International Property Maintenance Code Discussion (IPMC) Planner Ekstrand presented the staff report explaining that staff now feels that there are sufficient existing ordinances in place in the city that cover the same issues and address the same problems as the IPMC. Mr. Ekstrand said there would be very little to gain and it would also be costly for the city to contract to use the IPMC. Commissioner Tkachuck asked what the surrounding cities are using. Planner Ekstrand responded that most cities have regulations such as nuisance codes and property maintenance codes, but was not aware how they might compare on building codes issues. Building official Dave Fisher responded that Roseville and White Bear Lake have license programs with IPMC. Building official Fisher said he would like to put this issue on hold until the city gets to a point of doing a rental license program. Commissioner Tkachuck said it is important to have a standardized process. Building official Fisher said the city ordinance is more restrictive with residential rental properties than for owner-occupied properties. Mr. Fisher said the IPMC also applies to commercial properties and would affect more areas than city ordinance. Mr. Fisher said there are planning and zoning requirements already in place in the IPMC. Mr. Fisher said the majority of nuisance complaints deal with parking issues, garbage, junk vehicles and overgrown yards. Commissioner Pearson said when the commission previously reviewed this issue there were questions about commercial application, but when enforcement records were studied it was found there were no commercial complaints and only residential complaints. Planner Ekstrand said that it is a goal of the department this year to get the recent code amendments added to the ordinance on the city's website. VII. NEW BUSINESS a. Report on Foreclosures Planner Ekstrand introduced city finance director Bob Mittet, who gave a report on foreclosures in the city. Mr. Mittet presented information on the worst five states in the country for foreclosures and also for Minnesota and the neighboring four states. Mr. Mittet showed a Ramsey County map illustrating the foreclosure count of sales by census block groups for northern suburban cities. Planner Ekstrand said that staff has been meeting with Ramsey County and neighboring cities to discuss foreclosure issues. Mr. Ekstrand said the county will apply for grants to be used for acquisition, clean up and possibly removal of foreclosed properties that are problem sites. Mr. Ekstrand said staff will eventually be working with Ramsey County identifying problem properties located in Maplewood. Commissioner Ulrich asked if it would be possible to get a map of foreclosures for Maplewood only and the status on whether they are still vacant or have been resold. Ms. Ulrich said she would like to see better recordkeeping begin as the city looks toward more foreclosures in the future. Ms. Ulrich said she is uncomfortable with Maplewood letting Ramsey County take the lead and Maplewood needs to be proactive with Ramsey County on this issue. Housing and Redevelopment Authority -3- Minutes of 02-11-09 Mr Mittet said Federal criteria for grants is based on minimum population and Maplewood does not have a high enough population number to apply for the grants on its own. b. Code Enforcement Update Planner Ekstrand explained the code enforcement report listing the number of enforcement cases worked on by the department. Planner Ekstrand said data will be reported to the commission annually. Commissioner Tkachuck said she feels an annual report would not show a trend if there were something that needed to be addressed and suggested that data be reported quarterly to the commission. Planner Ekstrand said staff would provide quarterly reports as requested. Building official Fisher explained that some of the elevated numbers of enforcement data are due to lawn mowing services that the city has provided to foreclosed or vacant properties with overgrown lawns. Commissioner Tkachuck suggested that asterisks be added to the items that are done for foreclosure properties. Mr. Fisher said that foreclosed properties could be so noted in the data. Commissioner Uirich suggested that the vacant or foreclosure property data could be broken out of the general data numbers and entered separately. Ms. Ulrich asked if the city is contacting the vacant property owners. Mr. Fisher said if the city is unable to contact the owner, the property is posted and then after ten days the city then needs to take care of the problem. Commissioner asked if the foreclosure data could be entered by the location area in Maplewood. Mr. Fisher responded that this could be done, but it would take quite a bit of time for the code enforcement items since it is a larger list. c. Amendment to HRA Bylaws-Special Meeting Notification Planner Ekstrand explained the proposed modification to the HRA bylaws to change the special meeting notification from two to three days in order to be consistent with the Minnesota Open Meeting Law. Commissioner Ulrich moved to adopt the changes proposed to the Housing Redevelopment Authority bylaws that modify Article III, Section 3 (Meetings) to be consistent with the Minnesota Open Meeting Law which requires at least 72 hours notice for special meetings. Commissioner Tkachuck seconded Ayes - all Chairperson Pearson said at the previous meeting the subject of Maplewood securing levy authority was discussed. Mr. Pearson asked if the information that Mr. Konewko has on this issue could be given to the commission for discussion at the next meeting. Planner Ekstrand agreed. VIII. DATE OF NEXT MEETING March 11, 2009 IX. ADJOURNMENT The meeting was adjourned at 7:56 p.m. MEMORANDUM TO: FROM: SUBJECT: DATE: Housing Redevelopment Authority Shann Finwall, AICP, Environmental Planner Open Meeting Law Discussion April 1 , 2009 for the April 8 HRA Meeting The Minnesota Open Meeting Law (Minnesota Statutes, section 13D) requires that meetings of governmental bodies generally be open to the public. The Minnesota Supreme Court has articulated three purposes of the law: 1. Prohibit actions being taken at a secret meeting where it is impossible for the interested public to become fully informed about a public board's decision or to detect improper influences. 2. To assure the public's right to be informed. 3. To afford the public an opportunity to present its views to the public body. Alan Kantrud, city attorney, will be present at the April 8 HRA meeting to summarize the Minnesota Open Meeting Law and how it impacts the commission. Attachments: 1. Minnesota House of Representatives Open Meeting Law Information Brief 2. Minnesota Open Meeting Law 3. Alan Kantrud Open Meeting Law White Sheet (2-3-09) A-ltQGhmef1.t-l IN'~r6N~:tmIJifF:: fr Research Department "'~_Wl~Jil.~!ti~~p~~v,,~. , 600 State Office Building St. Paul, MN 55155 Deborah A. Dyson, Legislative Analyst 651-296-8291 Revised:~_;~~ Minnesota Open Meeting Law iil!fE_~~~illg;i~kf'equires that meetings of governmental bodies generally be open to the public. The Minnesota Supreme Court has articulated three purposes of the law: . To prohibit actions being taken at a secret meeting where it is impossible for the interested public to become fully informed about a public board's decisions or to detect improper influences . To assure the public's right to be informed . To afford the public an opportunity to present its views to the public body' This information brief discusses the groups and types of meetings covered by the open meeting law, and then reviews the requirements of and exceptions to the law and the penalties for its violation. Contents Groups and Meetings Governed by the Open Meeting Law ...................................2 Requirements ofthe Open Meeting Law .................................................................5 Exceptions to the Open Meeting Law......................................................................7 Penalties ....................................... ....... .............. .................................................... .11 Advice. ...................................................................................................................12 I Minn. Stat. ch. l3D (recoded from Minn. Stat. S 471.705 in 2000). The Minnesota Open Meeting Law was originally enacted in Laws 1957, chapter 773, section 1. 2 Prior Lake American v. Mader, 642 N.W.2d 729, 735 (Minn. 2002) (citing St. Cloud Newspapers, Inc. v. District 742 Community Schools, 332 N.W.2d t, 4 (Minn. 1983)). While the courts consistentty say that the open meeting law is to afford the public an opportunity to present its views to the public body, there is no general right for members of the public to speak at a meeting. Some statutes, and perhaps some home rule charters, specifY that a hearing on a particular matter must be held at which anyone who wishes to address the public body may do so. See, e.g., Minn. Stat. S 117.0412, subd. 2. Copies of this publication may be obtained by calling 651-296-6753. This document can be made available in alternative formats for people with disabilities by calling 651-296-6753 orthe Minnesota State Relay Service at 711 or 1-800-627-3529 (TTY). Many House Research Department publications are also available on the Internet at: www.house.mn/hrd/hrd.htm. House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 2 Groups and Meetings Governed by the Open Meeting Law The law applies to all levels of state and local government. The open meeting law applies to: . a state agency, board, commission, or department when it is required or permitted by law to transact public business in a meeting; . the governing body of any school district, unorganized territory, county, city, town, or other public body; . a committee, subcommittee, board, department, or commission of a public body subject to the law; and . the governing body or a committee of a statewide or local public pension plan.' "Public body" is not defined but the Minnesota Supreme Court has slated that "[i]n conunon understanding, 'public body' is possibly the broadest expression for the category of governmental entities that perform functions for the public benefit.'" In determining whether the open meeting law applies to a particular entity, one should look at all of the entity's characteristics. For example, in a 1998 case, the Minnesota Supreme Court held that because the statute authorizing creation of a municipal power agency authorized an agency to conduct its affairs as a private corporation, it could hold closed meetings.' The court held so notwithstanding the statute that provides for municipal power agencies to be political subdivisions of the state.' The open meeting law and the Government Data Practices Act apply to the University of Minnesota Board of Regents, and the application of these laws to the university does not violate the university's constitutional autonomy.' 'Minn. Stat. ~ 13D.Ol, subd. 1. 'Star Tribune Co. v. University a/Minnesota Board a/Regents, 683 N.W.2d 274, 280 (Minn. 2004). 'Southern Minn. Mun. Power Agency v. Boyne, 578 N.W.2d 362, 364 (Minn. 1998) (citing Minn. Stat. ~ 453.54, snbd. 21, and discussing the factors that distinguish a public corporation from a private corporation). 'Minn. Stat. ~ 453.53, subd. 1, ~ (1) (The agency agreement shall state: "(1) That the municipal power agency is created and incorporated. .. as a municipal corporation and a political subdivision of the state, to exercise thereunder a part of the sovereign powers of the state;"). . , Star Tribune Co., 683 N.W.2d 274. In 2002, Mark Yudofresigned from the presidency ofthe University of Minnesota. When finalists for the position had been selected but not announced, the Board of Regents closed a meeting to interview them, ensuring their privacy. The university asserted that its constitutional autonomy meant it was not subject to these laws. A number of newspapers sued, claiming that the university is subject to the open meeting law and data practices act, and that it violated both laws. The district court and court of appeals agreed with the newspapers, and the state supreme court affirmed those decisions. House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 3 The law generally applies to nonprofit corporations created by governmental entities. The list of groups covered by the open meeting law does not refer to nonprofit corporations created by a governmental entity. However, the law creating a specific public nonprofit corporation may specifY that it is subject to the open meeting law.' In addition, corporations created by political subdivisions are clearly subject to the open meeting law.' Gatherings of less than a quorum ofa public body are not subject to the law; a "meeting" is held when the group is capable of exercising decision-making powers. The Minnesota Supreme Court has held that the open meeting law applies only to a quorum or more of members of the governing body or a committee, subcommittee, board, department, or commission of the governing body.1O Serial meetings in groups ofless than a quorum held in order to avoid open meeting law requirements may also be found to be a violation, depending on the facts ofthe case.ll A public body subject to the law should be cautious about using e-mail to communicate with other members ofthe body. Although the statute does not specifically address the use of e-mail, it is likely that the court would analyze use of e-mail in the same way as it has telephone conversations and letters.12 That is, communication about official business through telephone conversations or letters by a quorum of a public body subject to the law would violate the law. Serial communication through telephone conversations or letters by less than a quorum with the intent to avoid a public hearing or to come to an agreement on an issue relating to official business could also violate the law. In a 1993 case, the Minnesota Court of Appeals held that the open meeting law was not violated when two of five city council mell!-bers attended private mediation sessions related to city 8 E.g., Minn. Stat. SS 62Q.03, subd. 6 (Minnesota Risk Adjustment Association); 1160.03, subd. 5 (Minnesota Technology, Inc.); t t6V.OI, subd. 10 (Agricultural Utilization Research Institute); 116S.02, subds. 6 and 7 (Minnesota Business Finance, Inc.); 124D.385, subd. 4 (Minnesota Commission on National and Community Service may create a nonprofit b~t it is subject to the open meeting law); 128C.22 (State High School League); and Laws 1990, ch. 535, S 2, subd. 6 (Lake Superior Center Authority). 'Minn. Stat. S 465.719, subd. 9 (enacted by Laws 2000, ch. 455, art. 1, S 2, subd. 9). A 1986 attorney general opinion stated that the open meeting law did not apply to nonprofit corporations created by political subdivisions. Op. Att'y Gen. 92a-30, Jan. 29, 1986. The 1999 Legislatute established a task force to recommend legislation in 2000, governing corporations created by political subdivisions. Laws 1999, ch. 186. Among other things, the 2000 legislation addressed the issue of application ofthe open meeting law, stating that the law applied and a corporation created by a political subdivision cannot be exempted from it. 10 Mobergv. Independent School Dist. No. 281, 336N.W.2d 510 (Minn. 1983). II Id. at 518; see also Manlwto Free Press Co. v. City o/North Mankato, 563 N.W.2d 291,295 (Minn. App. 1997). On remand to the district court for a factual fmding on whether the city used serial interviews to avoid the open meeting law, the trial court found, and the court of appeals affirmed, that the serial meetings were not held to avoid the law. Manlwto Free Press Co. v. City o/North Mankato, 1998 WL 865714 (Minn. App. 1998) (unpublished opinion). 12 Moberg, 336 N.W.2d at 518. The Commissioner of Administration stated in a July 9, 2008, opinion that an e-mail sent to all members of a city council was effectively "printed material" that should be available to members of the public and also suggested that the legislature revise the statute to recognize the use of electronic and other types of communications. Minn. Dept. of Admin. Advisory Op. 08-15. House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 4 business. The court determined that the two council members did not constitute a committee or subcommittee of the council because the group was not capable of exercising decision-making powers. 13 The law applies to informational meetings. The Minnesota Supreme Court has held that the open meeting law applies to all gatherings of members of a governing body, regardless of whether or not action is taken or contemplated. Thus, a gathering of members ofa public body for an informational seminar on matters currently facing the body or that might come before the body must be conducted openly.14 However, a 1975 attorney general opinion stated that city council attendance at a League of Minnesota Cities training program for city officials did not violate the open meeting law if the members did not discuss specific municipal business." Under a 2007 law, it appears that informational meetings of the Legislative-Citizen Commission on Minnesota Resources may be closed.16 The law does not cover chance or social gatherings. The open meeting law does not apply to chance or social gatherings of members of a public body.17 However, a quorum ofa public body may not, as a group, discuss or receive information on official business in any setting under the guise of a private social gathering.18 The law does not apply to certain types of advisory groups. The Minnesota Court of Appeals has held that the open meeting law does not apply to certain types of advisory groupS.19 In that case, a presidential search advisory committee to the University of Minnesota Board of Regents was held not to be a committee ofthe governing body for purposes of the open meeting law. In reaching its holding, the court pointed out that no regents were on the search committee and that the committee had no power to set policy or make a final decision. It is not clear if a court would reach the same result if members of the governing body were also on the advisory committee. Depending on the number of members of the governing body involved and on the form ofthe delegation of authority from the governing 13 Sovereign v. Dunn, 498 N.W.2d 62 (Minn. App. 1993). 14 St. Cloud Newspapers, Inc. v. District 742 Cmty. Schools, 332 N.W.2d 1 (Minn. 1983). 15 Op. Att'y Gen. 63a-5, Feb. 5, 1975. 16 Minn. Stat. S 116P.08, subd. 5 ("(a) Meetings ofthe commission, committees or subcommittees of the commission, technical advisory committees, and peer review panels must be open to the public. The commission shall attempt to meet throughout various regions of the state during each biennium. For purposes of this subdivision, a meeting occurs when a quorum is present and action is taken regarding a matter within the jurisdiction of the commission, a committee or subcommittee of the commission, a technical advisory committee, or a peer review panel. (b) For legislative members of the commission, enforcement of this subdivision is governed by section 3.055, subdivision 2. For nonlegislative members ofthe commission, enforcement of this subdivision is governed by section 13D.06, subdivisions 1 aud 2." (emphasis added)). 17 St. Cloud Newspapers, Inc., 332 N.W.2d at 7. 18 Moberg, 336 N.W.2d at 518. 19 The Minnesota Daily v. University of Minnesota, 432 N.W.2d 189 (Minn. App. 1988). House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 5 body to the members, a court might consider the advisory committee to be a committee of the governing body. A separate law applies to the legislature. In 1990, the legislature passed a law separate from the open meeting law that requires all legislative meetings be open to the public.20 The law applies to House and Senate floor sessions and to meetings of committees, subcommittees, conference committees, and legislative commissions. For purposes ofthis law, a meeting occurs when a quorum is present and action is taken regarding a matter within the jurisdiction ofthe group. Each house of the legislature must adopt rules to implement these requirements. Remedies provided under these rules are the exclusive means of enforcing this law. Requirements of the Open Meeting Law The primary requirement ofthe open meeting law is that meetings be open to the public. The law also requires that votes in open meetings be recorded in a journal and that the journal be open to the public. The vote of each member must be recorded on appropriations of money, except for payments of judgments and claims and amounts fixed by statute." A straw ballot to narrow the list of candidates for city administrator and not made public was held to be a secret vote in violation of the open meeting law." Open meetings must be held in a public place within the borders of the public body." Meetings may be held by interactive television if specified conditions are m~t to ensure openness and accessibility for those who wish to attend." Specific agencies have broader authority to hold meetings by telephone conference call or other electronic means as long as. specified conditions are met to ensure openness and accessibility for those who wish to attend. In addition, a meeting of any public body may be conducted by telephone or other electronic means if a health pandemic or other emergency makes meeting in person impractical or imprudent and all of the same conditions as for other meetings held by telephone conference call or other electronic means are met, unless unfeasible due to the pandemic or emergency. In general, those conditions include the following: 20 Minn. Stat. ~ 3.055 (added by Laws 1990, ch. 608, art. 6, ~ I). 21 Minn. Stat. ~ 13D.OI, subds. 4 and 5. " Mankato Free Press Co., 563 N.W.2d at 295-96. " Quast v. Knutson, 150 N.W.2d 199, 200 (Minn. 1967) (school board meeting held 20 miles outside the jurisdiction of the school board at a private office did not comply with open meeting law; consolidation proceedings were fatally defective because the resolution by which the proceedings were initiated was not adopted at a public meeting as required by law). 24 Minn. Stat. ~ 13D.02. See also Minn. Stat. ~ 471.59, subd. 2 (joint powers board for educational purposes). House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 6 . All members of the body can hear one another and can hear all discussion and testimony . Members of the public at the regular meeting location can hear all discussion, testimony, and votes . At least one member of the body, chief legal counsel, or chief administrative officer is present at the regular meeting location . All votes are conducted by roll call . The public body must allow a person to monitor the meeting electronically from another location. The body may require the person to pay for any documented additional costs the body incurs as a result of the additional connection . The public body must give notice ofthe regular meeting location, ofthe fact that some members may participate by telephone or other electronic means, and of the right ofthe public to monitor the meeting from another location" The law requires public bodies to give notice of their meetings. In 1974, the Minnesota Supreme Court held that failure to give notice ofa meeting is a violation of the open meeting law." The court has also held that it is a violation ofthe open meeting law to conduct business before the time publicly announced for a meeting.27 In 1987, the legislature spelled out the notice requirements in statute for regular, special, emergency, and closed meetings. . "Minn. Stat. ~~ 13D.02t (health pandemic, other emergency); 35.066t (Board of Animal Health during restricted travel for animat health reasons); 41A.0235 (Minnesota Agriculturat and Economic Development Board); 4 t B.026 (Rural Finance Agency); It 6J.68, subd. 5 (Small Business Development Center Advisory Board); 116L.03, subd. 8 (Minnesota Jobs Skills Partnership Board); 116L.665, subd. 2a (Governor's Workforce Development Councit); t 16M.15, subd. 5 (Urban Initiative Board); t 16U.25 (Explore Minnesota Tourism Council); 129C.105 (Perpich Center for Arts Education); 248. t 0 (Rehabilitation Council for the Blind); 256.482, subd. 5b (Minnesota State Council on Disability); 256.975, subd. 2a. (Minnesota Board on Aging); 256C.28, subd. 7 (Commission of Deaf, Deaf-Btind, and Hard of Hearing Minnesotans); 268A.02, subd. 3 (State Rehabilitation Council and Statewide Independent Living Council); 326B.32, subd. 7 (Board of Electricity); 326B.435, subd. 7 (Board of Plumbing); 341.26 (Combative Sports Commission); 462A.041 (Minnesota Housing Finance Agency). "Sullivan v. Credit River Township, 217 N.W.2d 502 (1974). 27 Merz V. Leitch, 342 N.W.2d 141, 145 (Minn. 1984). 28 Minn. Stat. ~ 13D.04, subd. 1 (~ 130.04, previously ~ 471.705, subd. 1c, was added by Laws 1987, ch. 313, ~ 1). 29 Minn. Stat. ~ 130.04, subd. 2; Rupp V. Mayasich, 533 N.W.2d 893 (Minn. App. 1995) (bulletin board must be reasonably accessibte to the public). A February 3, 2004, advisOlY opinion by the Commissioner of House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 7 · Make good faith efforts to notify news media that have filed written requests (with telephone numbers) for notice of emergency meetings (special meetings called because of circumstances that require immediate consideration)30 The same notice requirements apply to closed meetings." For state agencies, absent any other specific law governing notice, publication requirements can be satisfied by publishing notice in the State Register.32 The law requires relevant materials to be publicly available. The open meeting law requires that for open meetings, at least one copy of any printed material prepared by the public body and distributed or available to all members of the public body also be available in the meeting room for inspection by the public. This requirement does not apply to materials that are classified as other than public under the Goverrnnent Data Practices Act." Exceptions to the Open Meeting Law A closed meeting, except one closed under the attorney-client privilege, must be electronically recorded at the expense of the public body. Unless otherwise provided by law, the recordings must be preserved for at least three years after the date ofthe meeting." The law does not apply to state agency disciplinary hearings. The open meeting law does not apply to any state agency, board, or commission when exercising quasi-judicial functions involving'disciplinary hearings." Certain meetings involving employee evaluation or discipline must he closed. A public body must close meetings for preliminary consideration of allegations or charges against an individual subject to its authority." If the members ofthe public body conclude that discipline may be warranted as a result of those charges, further meetings or hearings relating to Administration stated that a public body's actions at a special meeting are limited to those topics included in the notice of special meeting. Minnesota Department of Administration Advisory Opinion 04-004. 30 Minn. Stat. ~ I3D.04, subd. 3. 31 Minn. Stat. ~ I3D.04, subd. 5. 32 Minn. Stat. ~ I3D.04, subd. 6. " Minn. Stat. ~ I3D.Ol, subd. 6. "Minn. Stat. ~ I3D.05, subd.l, c1. (d). "Minn. Stat. ~ I3D.Ol, subd. 2 (2); see also Zahavy V. University of Minnesota, 544 N.W.2d 32, 41-42 (Minn. App. 1996). "Minn. Stat. ~ I3D.05, subd. 2 (b). House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 8 the charges must be open. Meetings must also be open at the request of the individual who is the subject of the meeting. Statutes other than the open meeting law may permit or require closed meetings for certain local governmental bodies to conduct specific kinds of disciplinary hearings. For example, school board hearings held to discharge or demote a teacher are private unless the affected teacher wants a public hearing.37 A public body may close a meeting to evaluate the performance of an individual who is subject to its authority.38 Before closing a meeting, the public body must identifY the individual to be evaluated. The public body must summarize the conclusions of the evaluation at its next open meeting. An evaluation meeting must be open at the request of the subject of the meeting. A meeting must be closed if an individual's medical records governed by Minnesota Statutes, section 144.291 to 144.298, are discussed.39 A meeting may be closed to discuss labor negotiations. The open meeting law permits a public body to hold a closed meeting to discuss strategy and proposals for labor negotiations conducted under the Public Employment Labor Relations Act.40 The statute specifies procedures for tape-recording of these meetings, and for the recordings to become public when negotiations are completed.'1 Another law permits the Commissioner of the Bureau of Mediation Services to close negotiations and mediation sessions between public employers and public employees. These negotiations are public meetings, unless the commissioner closes them.42 The law permits closed meetings. based on a limited attorney-client privilege. In 1976, the Minnesota Supreme Court held that there is a limited exception, based on the attorney-client privilege, for meetings to discuss strategy for threatened or pending litigation." In 1990, the legislature added the attorney-client exception to the open meeting law.44 Although the statute is not limited, the court has since held that the scope of the exception remains limited in relation to the open meeting law.45 37 Minn. Stat. ~ 122AAt, subd. 9. 38 Minn. Stat. ~ 13D.05, subd. 3(a). 39 Minn. Stat. ~ 13D.05, subd. 2. 40 Minn. Stat. ~ 13D.03, subd. 1. 41 Mum. Stat. ~ t3D.03, subd. 2. 42 Minn. Stat. ~ t79A.14, subd. 3. 43 Minneapolis Star & Tribune CO. V. Housing & Redevelopment Auth., 25t N.W.2d 620, 626 (1976). 44 Minn. Stat. ~ 13D.05, subd. 3(b) (added by Laws 1990, ch. 550 ~ 2). 45 Star Tribune V. Board of Ed, Special School Dist. No.1, 507 N.W.2d 869 (Minn. App. 1993) review denied (Minn. Dec. 22, 1993). The court of appeals did not accept the argument that the statutory exception encompassed the full attorney-client privilege because that would result in the exception swallowing the rule in favor of open meetings. In 2002, the Minnesota Supreme Court restated that the attorney-client privilege exception only applies House Research Departmeut Minnesota Open Meeting Law Revised: November 2008 Page 9 The attorney-client privilege exception does not apply to a mere request for general legal advice. Nor does it apply when a governing body seeks to discuss with its attorney the strengths and weaknesses of a proposed legislative enactment (like a city ordinance) that may lead to future lawsuits because that can be viewed as general legal advice. Furthermore, discussion of proposed legislation is just the sort of discussion that should be public." In order to close a meeting under the attorney-client privilege exception, the governing body must give a particularized statement describing the subject to be discussed. A general statement that the meeting is being closed to discuss pending or threatened litigation is not sufficient.47 A meeting may be closed to address certain security issues. If disclosure of the information discussed would pose a danger to public safety or compromise security procedures or responses, a meeting may be closed to: . receive security briefings and reports, . discuss issues related to security systems, . discuss emergency response procedures, and . discuss security deficiencies in or recommendations regarding public services, infrastructure, and facilities. Before closing a meeting, the public body must refer to the facilities, systems, procedures, services, or infrastructures to be considered during the closed meeting. A closed meeting must be tape-recorded at the expense ofthe governing body, and the recording must be preserved for at least four years. Financial issues related to security matters must be discussed and all related financial decisions must be made at an open meeting." when the purposes for tbe exception outweigh the purposes ofthe open meeting law. In that case, the city council was threatened with a lawsuit if it did not grant a request. The court found that the threat of a lawsuit did uot warrant closing the meeting. Prior Lake American v. Mader, 642 N.W.2d 729 (Minn. 2002) (en bane). Cf Brainerd Daily Dispatch v. Dehen, 693 N.W.2d 435 (Minn. App. 2005) (applying analysis of StarTribune and Prior Lake American, fmding threats were sufficiently specific and imminent that confidential consultation with legal counsel appointed by city's insurer to discuss defense strategy or reconciliation to address a threatened lawsuit justified closing the meeting). " Nortlnvest Publications, Inc. v. City a/St. Paul, 435 N.W.2d 64, 68 (Minn. App. 1989); Star Tribune, 507 N.W.2d at 872. 47 The Free Press v. County a/Blue Earth, 677 N.W.2d 471 (Minn. App. 2004). 48 Minn. Stat. ~ 13D.05, suhd. 3. House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 10 A meeting may be closed to discuss certain issues relating to government property sales or purchases. A public body may close a meeting to: . determine the asking price for real or personal property to be sold by the government entity; . review confidential or nonpublic appraisal data; and . develop or consider offers or counteroffers for the purchase or sale of real or personal property. Before holding a closed meeting, the public body must identify on the record the particular property that is the subject of the closed meeting. The proceedings must be tape-recorded at the expense ofthe public body. The recording must be preserved for eight years after the date of the meeting and made available to the public after all property discussed at the meeting has been purchased or sold or the governing body has abandoned the purchase or sale. The property that is the subject of the closed meeting must be specifically identified on the tape. A list of members and all other persons present at the closed meeting must be made available to the public after the closed meeting. If an action is brought claiming that public business other than discussions allowed under this exception was transacted at a closed meeting held during the time when the tape is not available to the public, the court would review the recording of the meeting in camera and either dismiss the action ifthe court fmds no violation, or permit use ofthe recording at trial (subject to protective orders) if the court finds there is a violation." An agreement reached that is based on an offer considered at a closed meeting is contingent on approval of the public body at an open meeting. The actual purchase or sale must be approved at an open meeting after the notice period required by statute or the governing body's internal procedures, and the purchase price or sale price is public data. 50 There is a narrow exception for certain meetings of public hospital boards. Boards of public hospitals and certain health organizations may close meetings to discuss competitive market activities and contracts.51 On-site inspections by town board members are not subject to the law. The law does not apply to a gathering oftown board members to perform on-site inspections, if the town has no employees or other staff able to perform the inspections and the town board is acting essentially in a staff capacity. The town board must make good faith efforts to provide notice of the inspections to the media that have filed a written request, including a telephone 49 Minn. Stat. 9 13D.OS, subd. 3, referring to 9 I3D.03, subd. 3. 50 Minn. Stat. 9 t 3D.OS, subd. 3. Property appraisal data covered by this law is described in Minnesota Statutes, section 13.44, subdivision 3. 51 Minn. Stat. 9 144.581, subds. 4 and 5. House Research Departmeut Minnesota Open Meeting Law Revised: November 2008 Page 11 number, for notice. Notice must be by telephone or by any other method used to notify the members of the public body.52 The law does not apply to meetings of the Commissioner of Corrections." The law specifies how it relates to the Government Data Practices Act. Except as specifically provided, public meetings may not be closed to discuss data that are not public data under the Government Data Practices Act.54 Data that are not public may be discussed at an open meeting without liability, if the matter discussed is within the public body's authority and if it is reasonably necessary to conduct the business before the public body." A portion of a meeting must be closed if the following data are discussed: . Data that would identify alleged victims or reporters of criminal sexual conduct, domestic abuse, or maltreatment of minors Of vulnerable adults" . Active investigative data collected by a law enforcement agency, or internal affairs data relating to alleged misconduct by law enforcement personnel" . Certain types of educational, health, medical, welfare, or mental health data that afe not public data" Penalties The open meeting law provides a civil penalty of up to $300 for intentional violation." A person who is found to have intentionally violated the law in three or more legal actions involving the same governmental body forfeits the right to serve on that body for a time equal to the term the person was serving. The Minnesota Supreme Court has held that this removal provision is constitutional only if the conduct constitutes malfeasance or nonfeasance and provided that the violations occurred after the person had a reasonable amount of time to learn the responsibilities of office.60 52 Minn. Stat. ~ 366.01, subd. 11. 53 Minu. Stat. ~ 13D.OI, subd. 2 (I). This exception does uotmake sense. Until 1982, the exception was for meetings of the corrections board-a multimember body. A 1983 instruction directed the revisor of statutes to change "corrections board" to "commissioner of corrections" throughout the statutes. Laws 1983, ch. 274, ~ 18. 54 Minn. Stat. ~ 13D.05, subd. 1. "Minn. Stat. ~~ 13.03, subd. II, 13.05, subd. 4, ~ (e), and 13D.05, subd. 1. "Minn. Stat. ~ 13D.05, subd. 2 (a)(I). "Minn. Stat. ~ 13D.05, subd. 2 (a)(2). 58 Minn. Stat. ~ 13D.05, subd. 2 (a)(3). " Minn. Stat. ~ 13D.06. 60 Claude v. Collins, 518 N.W.2d 836, 843 (Minn. 1994) (discussing the constitutionality of provision relating to removal from office); see also Brown v. Cannon Falls Township. 723 N.W.2d 31, 41-44 (Minn. App. 2006) (discussing the statutory history and that since 1994 the statute has required three or more legal actions). House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 12 A public body may not pay a civil penalty on behalf of a person who violated the law. However, a public body may pay any costs, disbursements, or attorney fees incurred by or awarded against a member of the body in an action under the open meeting law if the member was found not guilty of a violation.6l A court may award reasonable costs, disbursements, and reasonable attorney fees of up to $13,000 to any party in an action under the open meeting law. However, the following conditions apply: . A court may award costs and attorney fees to a defendant only if it finds that the action was frivolous and without merit . A court may award monetary penalties or attorney fees against a member of a public body only ifthe court finds there was an intent to violate the open meeting law The court must award reasonable attorney fees to a prevailing plaintiff if the public body was also the subject of a prior written opinion issued by the Commissioner of Administration, and the court finds that the opinion is directly related to the cause of action being litigated and that the public body did not follow the opinion.62 The appropriate mechanism to enforce the open meeting law is to bring an action in district court seeking injunctive relief or damages. The statute does not provide for a declaratory judgment action.63 The Minnesota Supreme Court has held that actions taken at a meeting held in violation of the open meeting law are not invalid or rescindable.64 Advice Public bodies subject to the open meeting law may seek advice on the application ofthe law and how to comply with it from three sources: . The governmental entity's attorney . The attorney general65 . The Commissioner of Administration66 6l op. Att'y Gen. 471-a, Dec. 3t, t992; Minn. Stat. ~ 130.06, subd. 4 (c). 62 Minu. Stat. ~ 130.06, subd. 4. 63 Rupp v. Mayasich, 561 N.W.2d 555 (Minn. App. 1997). 64 Sullivan v. Credit River Township, 299 Minn. 170, 176-177, 2t7N.W.2d 502, 507 (Minn. t974). 65 Under Minnesota Statutes, section 8.06, the attorney general is the attorney for all state officers and boards or commissions created by law. Under Mirulesota Statutes, section 8.07, the attorney general, on request from an attorney for a county, city, town, public pension fund, school board, or unorganized area, gives written opinions on matters of public importance. House Research Department Minnesota Open Meeting Law Revised: November 2008 Page 13 An individual may seek advice from two sources: . The individual's attorney . The Commissioner of Administration" Since 2003, an individual who disagrees with the manner in which members of a governing body perform their duties under the open meeting law may request the Commissioner of Administration to give a written opinion on the governing body's compliance with the law. A governing body or person requesting an opinion ofthe Commissioner of Administration must pay a $200 fee if the commissioner issues an opinion. The commissioner may decide not to issue an opinion. If the commissioner decides not to issue an opinion, the commissioner must notify the requester within five days of receipt of the request. If the commissioner decides to issue an opinion, it must be done within 20 days of the request (with a 30-day extension possible for good cause and notice to the requester). The governing body must be allowed to explain how it performs its duties under the law. Opinions of the Commissioner of Administration are not binding, but a court must give the opinions deference. However, a governing body that follows an opinion is not liable for fines, attorney's fees or any other penalty, or forfeiture of office. For more itiformation about open meetings and other issues related to the government, visit the government operations area of our web site, www.house.mn/hrd/issitifo/gv_state.htm. 66 Minn. Stat. Ii t3.072, subds. 1 and 2. 67 Id.; see www.ipad.state.mn.us/opinions/index.htmlfor access to prior opinions of the Commissioner of Administration or to fmd out how to request an opinion. A\ttIGh Yl\ eJlt 2 I MINNESOTA STATUTES 2008 13D.Ol MEETINGS MUST BE OPEN TO THE PUBLIC; EXCEPTIONS. Subdivision I. In executive brauch, local government. All meetings, including executive sessions, must be open to the public (a) of a state (I) agency, (2) board, (3) commission, or (4) department, when required or permitted by law to transact public business in a meeting; (b) of the governing body of a (1) school district however organized, (2) unorganized territory, (3) county, (4) statutory or home rule charter city, (5) town, or (6) other public body; (c) of any (1) committee, (2) subcommittee, (3) board, (4) department, or (5) commission, of a public body; and (d) of the governing body or a committee of: (I) a statewide public pension plan defined in section 356A.OI, subdivision 24; or (2) a local public pension plan governed by section 69.77, sections 69.771 to 69.775, or chapter 354A, 422A, or 423B. Subd. 2. Exceptions. This chapter does not apply Copyright (Q 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2 MINNESOTA STATUTES 2008 13D.OI (1) to meetings ofthe commissioner of corrections; (2) to a state agency, board, or commission when it is exercising quasi-judicial functions involving disciplinary proceedings; or (3) as otherwise expressly provided by statute. Subd. 3. Subject of and gronnds for closed meeting. Before closing a meeting, a public body shall state on the record the specific grounds permitting the meeting to be closed and describe the subject to be discussed. Subd. 4. Votes to be kept in journal. (a) The votes of the members ofthe state agency, board, commission, or department; or of the governing body, committee, subcommittee, board, department, or commission on an action taken in a meeting required by this section to be open to the public must be recorded in a journal kept for that purpose. (b) The vote of each member must be recorded on each appropriation of money, except for payments of judgments, claims, and amounts fixed by statute. Subd. 5. Public access to journal. The journal must be open to the public during all normal business hours where records of the public body are kept. Subd. 6. Public copy of members' materials. (a) In any meeting which under subdivisions I, 2, 4, and 5, and section 13D.02 must be open to the public, at least one copy of any printed materials relating to the agenda items of the meeting prepared or distributed by or at the direction of the governing body or its employees and: (1) distributed at the meeting to all members of the governing body; (2) distributed before the meeting to all members; or (3) available in the meeting room to all members; shall be available in the meeting room for inspection by the public while the governing body considers their subject matter. (b) This subdivision does not apply to materials classified by law as other than public as defined in chapter 13, or to materials relating to the agenda items of a closed meeting held in accordance with the procedures in section 13D.03 or other law permitting the closing of meetings. History: 1957 c 773 s 1; 1967 c 462 s 1; 1973 c 123 art 5 s 7; 1973 c 654 s 15; 1973 c 680 s 1,3; 1975 c 271 s 6; 1981 c 174 s 1; 1983 c 137 s 1; 1983 c 274 s 18; 1984 c 462 s 27; 1987 c 313 s 1; 1990 c 550 s 2,3; 1991 c 292 art 8 s 12; 1991 c 319 s 22; 1994 c 618 art 1 s 39; 1997 c 154 s 2; ISp2001 c 10 art 4 s 1 Copyright <0 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. I MINNESOTA STATUTES 2008 13D.02 13D.02 MEETINGS CONDUCTED BY INTERACTIVE TV; CONDITIONS. Subdivision 1. Conditions. A meeting governed by section 13D.O I, subdivisions 1,2,4, and 5, and this section may be conducted by interactive television so long as: (I) all members of the body participating in the meeting, wherever their physical location, can hear and see one another and can hear and see all discussion and testimony presented at any location at which at least one member is present; (2) members ofthe public present at the regular meeting location of the body can hear and see all discussion and testimony and all votes of members ofthe body; (3) at least one member ofthe body is physically present at the regular meeting location; and (4) each location at which a member ofthe body is present is open and accessible to the public. Subd. 2. Members are present for qnornm, participation. Each member of a body participating in a meeting by electronic means is considered present at the meeting for purposes of determining a quorum and participating in all proceedings. Subd. 3. Monitoring from remote site; costs. If interactive television is used to conduct a meeting, to the extent practical, a public body shall allow a person to monitor the meeting electronically from a remote location. The body may require the person making such a connection to pay for documented marginal costs that the public body incurs as a result ofthe additional connection. Subd. 4. Notice of regnlar and all member sites. If interactive television is used to conduct a regular, special, or emergency meeting, the public body shall provide notice of the regular meeting location and notice of any site where a member of the public body will be participating in the meeting by interactive television. The timing and method of providing notice must be as described in section 13D.04. History: 1957 c 773 s 1; 1967 c 462 s 1; 1973 c 123 art 5 s 7; 1973 c 654 s 15; 1973 c 680 s 1,3; 1975 c 271 s 6; 1981 c 174 s 1; 1983 c 137 s 1; 1983 c 274 s 18; 1984 c 462 s 27; 1987 c 313 sI; I990c550s2,3; 1991 c292 art8s 12; 1991 c3I9s22; I994c6I8artI s39; I997cI54s2 Copyright C 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. I MINNESOTA STATUTES 2008 13D.021 13D.021 MEETINGS BY TELEPHONE OR OTHER ELECTRONIC MEANS; CONDITIONS. Subdivision 1. Conditions. A meeting governed by this section and section 13D.OI, subdivisions 1,2,4, and 5, may be conducted by telephone or other electronic means so long as the following conditions are met: (I) the presiding officer, chieflegal counsel, or chief administrative officer for the affected governing body determines that an in-person meeting or a meeting conducted under section 13D.02 is not practical or prudent because of a health pandemic or an emergency declared under chapter 12; (2) all members of the body participating in the meeting, wherever their physical location, can hear one another and can hear all discussion and testimony; (3) members of the public present at the regular meeting location ofthe body can hear all discussion and testimony and all votes of the members of the body, unless attendance at the regular meeting location is not feasible due to the health pandemic or emergency declaration; (4) at least one member ofthe body, chieflegal counsel, or chief administrative officer is physically present at the regular meeting location, unless unfeasible due to the health pandemic or emergency declaration; and (5) all votes are conducted by roll call, so each member's vote on each issue can be identified and recorded. Subd. 2. Members are present for quorum, participation. Each member ofthe body participating in a meeting by telephone or other electronic means is considered present at the meeting for purposes of determining a quorum and participating in. all proceedings. Subd, 3. Monitoring from remote site; costs. Iftelephone or another electronic means is used to conduct a meeting, to the extent practical, the body shall allow a person to monitor the meeting electronically from a remote location. The body may require the person making a connection to pay for the documented additional cost that the body incurs as a result of the additional connection. Subd. 4. Notice of regular and all member sites. If telephone or another electronic means is used to conduct a regular, special, or emergency meeting, the public body shall provide notice of the regular meeting location, of the fact that some members may participate by telephone or other electronic means, and of the provisions of subdivision 3. The timing and method of providing notice is governed by section 13D.04 of the Open Meeting Law. Copyright lO 2008 by the Revisor of Statutes, State of Minnesota. AU Rights Reserved. I MINNESOTA STATUTES 2008 13D.03 13D.03 CLOSED MEETINGS FOR LABOR NEGOTIATIONS STRATEGY. Subdivision 1. Procedure. (a) Section 13D.OI, subdivisions 1,2,4,5, and section 13D.02 do not apply to a meeting held pursuant to the procedure in this section. (b) The governing body of a public employer may by a majority vote in a public meeting decide to hold a closed meeting to consider strategy for labor negotiations, including negotiation strategies or developments or discussion and review of labor negotiation proposals, conducted pursuant to sections 179A.OI to 179A.25. (c) The time of commencement and place of the closed meeting shall be announced at the public meeting. (d) A written roll of members .and all other persons present at the closed meeting shall be made available to the public after the closed meeting. Subd. 2. Meeting must be recorded. (a) The proceedings of a closed meeting to discuss negotiation strategies shall be tape-recorded at the expense of the governing body. (b) The recording shall be preserved for two years after the contract is signed and shall be made available to the public after all labor contracts are signed by the governing body for the current budget period. Subd. 3. Ifviolation claimed. (a) If an action is brought claiming that public business other than discussions of labor negotiation strategies or developments or discussion and review of labor negotiation proposals was transacted at a closed meeting held pursuant to this section during the time when the tape is not available to the public, the court shall review the recording of the meeting in camera. (b) If the court finds that this section was not violated, the action shall be dismissed and the recording shall be sealed and preserved in the records of the court until otherwise made available to the public pursuant to this section. (c) If the court finds that this section was violated, the recording may be introduced at trial in its entirety subject to any protective orders as requested by either party and deemed appropriate by the court. History: 1957 c 773 s 1; 1967 c 462 s 1; 1973 c 123 art 5 s 7; 1973 c 654 s 15; 1973 c 680 s 1,3; 1975 c 271 s 6; 1981 c 174 s 1; 1983 c 137 s 1; 1983 c 274 s 18; 1984 c 462 s 27; 1987 c313 sI; I990c550s2,3; 1991 c292art8s 12; 1991 c3I9s22; I994c6I8art 1 s39; I997c I54s2 Copyright <0 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. MINNESOTA STATUTES 2008 13D.04 13D.04 NOTICE OF MEETINGS. Subdivision I. Regular meetiugs. A schedule of the regular meetings of a public body shall be kept on file at its primary offices. If a public body decides to hold a regular meeting at a time or place different from the time or place stated in its schedule of regular meetings, it shall give the same notice of the meeting that is provided in this section for a special meeting. Subd. 2. Sp~cial meetings. (a) For a special meeting, except an emergency meeting or a special meeting for which a notice requirement is otherwise expressly established by statute, the public body shall post written notice of the date, time, place, and purpose of the meeting on the principal bulletin board of the public body, or if the public body has no principal bulletin board, on the door of Its usual meeting room. (b) The notice shall also be mailed or otherwise delivered to each person who has filed a written request for notice of special meetings with the public body. This notice shall be posted and mailed or delivered at least three days before the date of the meeting. ( c) As an alternative to mailing or otherwise delivering notice to persons who have filed a written request for notice of special meetings, the public body may publish the notice once, at least three days before the meeting, in the official newspaper of the public body or, ifthere is none, in a qualified newspaper of general circulation within the area of the public body's authority. (d) A person filing a request for notice of special meetings may limit the request to notification of meetings concerning particular subjects, in which case the public body is required to send notice to that person only concerning special meetings involving those subjects. (e) A public body may establish an expiration date for requests for notices of special meetings pursuant to this subdivision and require refiling of the request once each year. (f) Not more than 60 days before the expiration date of a request for notice, the public body shall send notice of the refiling requirement to each person who filed during the preceding year. Subd. 3. Emergency meetings. (a) For an emergency meeting, the public body shall make good faith efforts to provide notice of the meeting to each news medium that has filed a written request for notice if the request in~ludes the news medium's telephone number. (b) Notice of the emergency meeting shall be given by telephone or by any other method used to notifY the members of the public body. (c) Notice shall be provided to each news medium which has filed a written request for notice as soon as reasonably practicable after notice has been given to the members. Copyright 10 2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. 2 MINNESOTA STATUTES 2008 13D.04 (d) Notice shall include the subject of the meeting. Posted or published notice of an emergency meeting is not required. ( e) An "emergency" meeting is a special meeting called because of circumstances that, in the judgment of the public body, require immediate consideration by the public body. (f) If matters not directly related to the emergency are discussed or acted upon at an emergency meeting, the minutes of the meeting shaU include a specific description of the matters. (g) The notice requirement of this subdivision supersedes any other statutory notice requirement for a special meeting that is an emergency meeting. Subd. 4. Recessed or continued meetings. (a) If a meeting is a recessed or continued session of a previous meeting, and the time and place ofthe meeting was established during the previous meeting and recorded in the minutes ofthat meeting, then no further published or mailed notice is necessary. (b) For purposes of this subdivision, the term "meeting" includes a public hearing conducted pursuant to chapter 429 or any other law or charter provision requiring a public hearing by a public body. Subd. 5. Closed meetings. The notice requirements ofthis section apply to closed meetings. Subd. 6. State agencies. For a meeting of an agency, board, commission, or department of the state: (I) the notice requirements oJ:: this section apply only if a statute governing meetings of the agency, board, or commission does not contain specific reference to the method of providing notice; and (2) aU provisions of this section relating to publication are satisfied by publication in the State Register. Subd. 7. Actual notice. If a person receives actual notice of a meeting of a public body at least 24 hours before the meeting, aU notice requirements of this section are satisfied with respect to that person, regardless of the method of receipt of notice. History: 1957 c 773 s 1; 1967 c 462 s 1; 1973 c 123 art 5 s 7; 1973 c 654s 15; 1973 c 680s 1,3; 1975 c 271 s 6; 1981 c 174 s 1; 1983 c 137 s 1; 1983 c 274 s 18; 1984 c 462 s 27; 1987 c313 s1; 1990c550s2,3; 1991 c292art8s 12; 1991 c319s22; 1994 c 618artl s39; 1997c 154s2 Copyright @2008 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. ~~~f~3 THE OPEN MEETING LAW AND YOU This short white-sheet is intended to provide basic information regarding the Open Meeting Law In Minnesota as codified in Minnesota Statutes S 13D.OI et seq. While nothing can take the place of the actual law, this document will hopefully address very basic questions and situations that you may have. WHAT IS THE PURPOSE OF THE LAW? The open meeting law is intended to provide the public with the most transparent governmental activities possible and ensure that the decision-making process is subject to full public scrutiny and access while still being managed in a way that allows the process of government to function effectively. THE FIRST QUESTION THAT SHOULD BE ASKED: IS YOUR GROUP SUBJECT TO THE OPEN MEETING LAW? ANSWER: In most cases a 'public body' is subject to the Open Meeting Law. Standing Committees of a City Council are specifically called out as being subject to the law, so there really is no debating whether the ENR is subject to the law: It is. THE SECOND QUESTION THAT SHOULD BE ASKED: IS A MEETING OF YOUR GROUP CONDUCTING A 'MEETING' THAT MUST COMPLY? ANSWER: To be subject to the requirement of the Open Meeting Law, a body subject to it has to have a quorum of its members present together to trigger the requirements of the Statute. Less-than quorum size groups cannot meet in order to avoid having an open meeting. Email exchanges between members, if passed between a quorum of members, can be considered a violation of the open meeting law. Telephone calls can also trigger a violation if enough calls are placed between members and public business discussed. My recommendation is to avoid email and phone discussions entirely and restrict all discussions and debate to the gaveling of the meetings. WHAT ABOUT THE TWINS GAME?! Truly social, chance, meetings of a quorum of members are not per se violations of the Open Meeting Law. However, members need to be mindful of the fact that the appearance of impropriety may trigger allegations of a violation so steps should be taken to reduce that appearance. Not sitting together or huddiling, even to exchange pleasantries, would be the best practice. 2.~~-(), THE THIRD QUESTION THAT SHOULD BE ASKED: WHAT DO WE HAVE TO DO TO COMPLY? ANSWER: 1. The open meeting law is simple to comply with. Provide a standing date and time for meetings of the ENR and deliberate in good faith at the meeting. Notice special and emergency meetings 3 days in advance (or with as much time and notice as possible for emergency meetings. 2. have materials available for the public to take and follow-along with if needed. 3. Take discussion and votes in public only and at the meetings. 4. Record your votes! CONSEQUENCES FOR VIOLATIONS Violations are handled in civil court and a complaint must be brought in the district court against the person who is alleged to have violated the law. No City may pay this cost once found to be validly imposed. The Fine my be up to $300.00 and removal from office is possible for multiple-offense violators. As public-body members, your conduct must be found to be intentionally designed to violate the law however and none of the decisions made at such a meeting are deemed invalid or rescindable. MEMORANDUM TO: FROM: SUBJECT: DATE: Acting City Manager Tom Ekstrand, Senior Planner Code Enforcement Abatement Properties March 31, 2009 INTRODUCTION At the last meeting, the HRA requested that staff provide data showing where code violations had been abated by the city. The attached map shows the locations throughout Maplewood where the city staff had to take action to correct a problem. This resulted in staff taking the corrective measures and billing the property owner. Refer to the attached map. In 2008, there were 26 cases where the city had to actually take corrective action. These were all long grass (primarily) or yard debris complaints. In 2009, so far, we have one case involving a dilapidated garage which the city condemned and facilitated its removal. In all cases, the city assessed the property owners for the costs incurred by the city. RECOMMENDATION No action required. p:HRA\Code Enforcement Abatement 3 09 te Attachment: 1. Code Enforcement Abatement Properties Map " ~ " ~ ! Legend . 2009 (iiiJ 2008 .I- JI>St,""II\>C.~ IJllleCafl1ldll ~ "i & , ~ 0; € & Code Enforcement Abatement Properties since 2008 $omllSI.Paul MEMORANDUM TO: FROM: SUBJECT: DATE: City Manager Tom Ekstrand, Senior Planner HRA Levy Authority April 1, 2009 INTRODUCTION The HRA requested that staff check into the statutory and ordinance provisions that may give them levy authority for housing-related issues. Bob Millet, the Maplewood Finance Director, has provided the attached information from the League of Minnesota Cities titled Regulatory and Development Functions of Cities, Community Development and Redevelopment." This data states that, "An HRA is primarily responsible for the planning and implementation of redevelopment and/or low-rent housing assistance programs within its area of operation. An HRA has all the powers necessary to carry out the state HRA Act, but does not have the power to levy and collect taxes or special assessments except with respect to certain redevelopment projects including, but not limited to, the following powers. . . " (See 4. Powers, page 15:6) This section concludes with the statement that "the city council must approve HRA plans before the housing and redevelopment authority may begin implementation." DISCUSSION Establishment of the Maplewood HRA The Maplewood HRA was established by council resolution on October 3, 1974. Since state statutes regulate HRAs, the city council did not establish any ordinances about the governance or duties for the HRA. There is no chapter in the city ordinances that speak to the HRA as it does the planning commission, community design review board or other city commissions. Levy Authority The reason for this report was to answer the question raised by the HRA on getting Levy Authority. The short answer is that it is up to the city council to address this question and grant any such authorization. According to the attached statutory information almost any HRA's authority or action is dependant upon city council approval. RECOMMENDATION This is a discussion item. No action is required. p:HRAILevy Authority 3 09 Attachment: 1. Regulatory and Development Functions of Cities 2. October 3,1974 Council Resolution Establishing the HRA 2 ., Attachment 1 CHAPTER 15 PART IV REGULATORY AND DEVELOPMENT FUNCTIONS OF CITIES CHAPTER 15: COMMUNITY DEVELOPMENT AND REDEVELOPMENT Community development and redevelopment........... ...... ....... ... ..... .......... ..... ..... ......... ........ ......................... ............ 3 I. Business subsidies or [mancial assistance ...................................................................................................3 A. Business subsidies............ ...................................... ... ...................... ............ .................. ............................ 3 B. Financial assistance........................... .... .......... ................................ ................................................ .......... 5 II. Structures....... ................... .......... ...... ..... ... ....... ....... ... ... .............. ........... ................ ........... ........ ..................5 A. Housing and redevelopment authorities ....................................................................................................5 B. General city development powers .............................................................................................................9 C. Economic development authorities/port authorities ................................................................................ 10 D. Municipal or area redevelopment agencies ............................................................................................. 11 E. City development districts ....................................................................................................................... II F. Municipal industrial development...........................................................................................................11 G. Minnesota Housing Finance Agency ....................................................................................................... 12 H. Department of Employment and Economic Development...................................................................... 13 I. Enterprise Minnesota.............................................. .................... ... ................... ................................ ....... 13 III. Programs. .................. ......,........ ..... .......... ......... .......... ....,........................................................................ ..14 A. Housing bonds ..........................:.............................................................................................................. 14 B. Industrial parks........ ................... .......... .... ............. ........... ............ ........ ........... ..... ..... ......... ..................... 14 C. Industrial revenue bonds............. ...... ........ ..... ......................,.................... ............. ....... ..... ....... ....... ........ 15 D. Commercial rehabilitation ....... .................. ..................... ..... .............................. ........... .... ....................... 15 E. Tax increment financing (TlF) ................................................................................................................16 F. Property tax abatement ............................................................................................................................ 18 G. Community development block grants.................................................................................................... 18 H. Transportation... .................. ........ .... .... ..... .... .............. .......................... ..... .......... .............................. ....... 18 I. Advertising ...... ................... ........... ............... ............... ...... .............. ........ ....... .......... ......... .... ..... ............. 20 J. City district heating system .....................................................................................................................21 K. Contributions to economic development organizations .......................................................................... 21 L. Contributions to hospitals, artistic organizations..................................................................................... 21 M. Rural development grants....................................................................................................................21 N. E-commerce ready cities .:...................:...................:."':.:':.:-:.~.:....................................:.............................. 22 O. Corporations created by cities ................................................................................................................. 22 IV. How this chapter applies to home rule charter cities................................................................................22 HANDBOOK FOR MINNESOTA CITIES 15:1 This chapter last revised 1212008 CHAPTER 15 15:2 llANDBOOKFoR MINNESOTA CITIES This chapter last revised 1212008 State. v. Wicklund, 589 N.W.2d 793 (Minn. 1999). Minn. Stat. SS 116J.993 to 116J.995. Minn. Stat. 9.116J.993, subd. 3. CHAPTER IS Chapter 15 Community development and redevelopment This chapter addresses the maj or structures and programs for encouraging and guiding the economic development and redevelopment of a community. Economic development tools can be applied to any size city. These tools are interrelated and a city may use several for one project. Without council coordination and guidelines, a real danger exists for citizen criticism of alleged misuse of these tools. It should be noted that public financing of a privately-owned facility does not make public space in the facility a public forum for free speech purposes. This chapter is divided into three sections. The first section describes the requirement for a city to establish criteria for awarding business subsidies before any subsidy can be made. The second section addresses the various development agencies or structures cities may create or that are available to provide development assistance. The third section addresses the programs or tools available for encouraging development and redevelopment. I. Criteria for awarding business subsidies required II. Structures III. Programs IV. How this chapter applies to home rule charter cities I. Business subsidies or financial assistance A. Business subsidies State law defmes "business subsidy" or "subsidy" as a state or local government agency grant, contribution of personal property, real property, infrastructure, the principal amount of a loan at rates below those commercially available to the recipient, any reduction or deferral of any tax or any fee, any guarantee of any payment under any loan, lease, or other obligation, pr "!lypr,e,ferential use of government facilities given to a business in an amount greater than $150,000. HANDBOOK FOR MINNESOTA CrrlEs 15:3 This chapter last revised 12/2008 Minn. Stat. s 1]6J.994, subds. 5, 11 Minnesota Department of Employment and Economic Development (DEED). Minn. Stat., 116J.994, subd. 3. Minn. Stat. S 1161.993, subd. 3. See also, Minn. Stat. S 469.185. Minn. Stat. S 1161.994, subd. 11. Minn. Stat. , 116J.993, subd. 3. Minn. Stat. S 116J.994, subds. 4, 7,8. CHAPTER 15 Prior to awarding a business subsidy of more than $150,000 (and as defined by law) to any business a city and any BRA, EDA, port authority, non-profit created by a local government, and other units and divisions of cities must hold a public hearing and adopt criteria for awarding business subsidies. The public hearing notice must include a statement that either a resident or a city property owner may file a written complaint with the city ifthe city does not follow the business subsidy law. Written complaints must be filed within specified timelines. The criteria must include a policy regarding the wages to be paid for any jobs created. Copies of the criteria adopted by cities are found on the Minnesota Department ofEmpJoyment and Economic Development (DEED) web site Once the criteria are established, the grantor and the recipient must enter into subsidy agreements that meet the statutory requirements. The agreement must include an obligation to repay part or the entire subsidy if the recipient does not meet its obligations. Types of assistance meeting the definition of a business subsidy include: grants; contributions of real or personal property or infrastructure; the principal amount of a loan at rates below those conunercially available to the recipient; 'any reduction or deferral of any tax or any fee; any guarantee of any payment under any loan, lease or other obligation; or any preferential use of government facilities given to a liusiness. The law imposes a J 80-day statute of limitations on actions to challenge a city after approval of a business subsidy agreement. Citizens or owners of taxable property in a city may bring a civil action against the city for failure to comply with the business subsidy laws. Cities should therefore consult closely with the city attorney before awarding a business subsidy. There are several exceptions to this definition, including a business subsidy ofless th'!ll $150,000; subsidies for redevelopment, pollution control and land clean up, housing, industrial reVenue bonds, utility property tax abatements and other similar programs. Recipients must provide grantors with infonnation on their progress toward the goals outlined in the agreement. The goals for increasing jobs or retaining jobs must result in local job creation and job retention. Grantors must submit the annual Minnesota Business Assistance Fonn (MBAF) to the Department of Employment and Economic Development (DEED) by April J each year for each business subsidy agreement. Local government agencies in cities with a population of2,500 or more must submit an MBAF, regardless of whether they have awarded business subsidies. Local government agencies in cities with a population of 2,500 or less are exempt from filing the MBAF if they have not awarded a subsidy in the past five years. 15:4 HANDBOOK FOR MINNESOTA CITIEs This chapter last revised 12/2008 Minn. Stat. Ii 1161.994, subd. 2. Minn. Stat. S 1161.994, subd. 8. Minn. Stat. SS 469.00] to 469.047. Minn. Stat. Ii 469.003. Minn. Stat. S 469.003, subd. 1. Minn. Stat. Ii 469.003, subds. 2, 4. CHAPTER 15 B. Financial assistance Cities may offer "financial assistance" in the form of a business loan of more than $25,000 or a guarantee of $75,000 or more, but less than $150,000 required to constitute a business subsidy. lfa city offers such fmancial assistance it must develop criteria and set minimum wage floor levels as prescribed in business subsidy law. Cities granting such financial assistance must submit business assistance reports to the Department of Employment and Economic Development (DEED) within one year of granting the assistance. II. Structures A. Housing and redevelopment authorities The predominant method of delivering and administering housing and redevelopment programs in Minnesota is through a legal public agency, accountable to city government. A city may establish this public agency, which is often the housing and redevelopment authority (HRA). There are more than 230 HRAs in Minnesota. 1. Elements of an HRA An HRA is a public corporation with power to undertake certain types of housing and redevelopment or renewal activities. While state tegislation "creates" a housing and redevelopment authority in each city, it is up to the city council to formally establish an HRA before it can do business and use its powe,s. Once a council legally establishes an HRA, it may undertake certain types of planning and community development activities on its own with council approval. To create a housing and redevelopment authority, the city council must, by resolution, make the following findings required by law: . Substandard, slum or blighted areas that cannot be redeveloped without governmental assistance; or, . A shortage of affordable, decent, safe, and sanitary dwelling accommodations available to low-income individuals and families. The council must pass this resolution after a public hearing. A copy of this resolution must go to the commissioner of DEED. HANDBOOK FOR MINNESOTA CrrrEs 15:5 This chapter last revised 1212008 Minn. Stat. ~ 469.004, subds. 1, 2. Minn. Stat. ~ 469.004, subd. 5. Minn. Stat. ~ 469.003, subd. 6. 24 C.F.R 964.415 Minn. Stat. 9469.003, subd. 7. Minn. Stat., 469.011, subd. 2. Minn. Stat. 9469.011, subd. 4. Minn. Stat. 9469.012, subd. 1. CHAPTER 15 2. Area of operation The area of operation of a city lIRA is the corporate limits of the city. County and multi-county lIRAs operate in areas that include all the political subdivisions within the county or counties, except they may not undertake any project within the boundaries of a city that has not adopted a resolution authorizing the county or multi-county lIRA to exercise powers within that city. Establishment of a county or multi-county lIRA precludes the formation of city lIRAs, unless the county or multi-county lIRA and the commissioner of DEED agree to let the city fonn one. 3. Membership An lIRA consists of five commissioners who are residents of the city. The mayor appoints and the council approves the members who serve five-year, staggered tenns. City councilmembers often serve on the lIRA. The entire membership of an lIRA may consist of councilmembers. Federal regulations require that at least one eligible resident be a member on a public housing agency board, which may be the lIRA, an EDA or other public housing authority. This rule applies to any public housing agency that holds a public housing annual contributions contract with HUD or that administers Section 8 tenant-based rental assistance. The rule does not apply to state-fmanced public housing projects or Section 8 project-based assistance. A "small PHA exception" also exists. The city clerk must file a certificate of appointment for each commissioner to a city lIRA and send a certified copy to the commissioner of DEED. State law allows the lIRA to adopt bylaws. Commissioners may accept compensation of up to $75 for each meeting they attend. Commissioners who are elected officials may receive daily payment for a particular day only if they do not receive any other daily payment for public service on that day. Commissioners who are public employees may not receive daily payment, but may not suffer loss in compensation or benefits as a result of their service. 4. Powers An lIRA is primarily responsible for the planning and implementation of redevelopment and/or low-rent housing assistance programs within its area of operation. An lIRA has all the powers necessary to carry out the state lIRA Act, but does not have the power to levy and collect taxes or special assessments except with respect to certain redevelopment projects including, but not limited to, the following powers: . To sue and be sued. . To employ staff and an executive director. 15:6 HANDBooKFoRMlNNEsoTACmEs This chapter last revised 12/2008 Minn. Stat. S 469.033, subd. 6. Minn. Stat. ~ 469.012, subd. 4. Minn. Stat. s 469.028. Minn. Stat. 9 469.015. Minn. Stat. 9 469.015 subd. la CHAPTER 15 . To undertake projects within its area of operation and to provide for the construction, reconstruction, improvement, extension, alteration, or repair of any project or part of a project. . To sell, buy, own, and lease property by any means necessary, including the power of'eminent domain. . To cooperate with and use state and federal financial assistance programs. . To develop rehabilitation and code enforcement techniques. . To issue bonds for any of its corporate purposes backed by the pledge of revenues, grants or other contributions. . To implement renewal or redevelopment programs using tax increment financing. . To own, hold, improve, lease, sell or dispose of real or personal property . . To designate substandard, slum or deteriorating areas needing redevelopment, and unsafe, unsanitary, and overcrowded housing. . To make necessary expenditures to carry out the purposes of the HRA law. . To develop and administer an interest reduction program to assist the financing of the construction, rehabilitation, or purchase of low- or moderate-income housing. The maximum general allowable operational levy ofHRAs is 0.0144 percent of market value to 0.0185 percent oftaxable market value. The levy is based on the previous year's taxable market value and the city council must approve the amount. While HRAs have the legal authority to "do whatever is necessary and convenient" to implement redevelopment, they are subject to the ordinances and laws of the city. The city council must approve HRA plans before the housing and redevelopment authority may begin implementation. 5. Contracting All HRA construction work and purchases of equipment, supplies or materials that involve expenditure of $50,000 or more must be competitively bid. An HRA (and a city) may also use the "best value altemative." There are limited exceptions for emergencies and certain projects, such as parking ramps and certain public transit facilities . HANDBOOK FOR MlNNESafA CmEs 15:7 This chapter last revised 1212008 Minn. Stat. ~~ 469.033 and 469.034. Minn. Stat. ~ 469.003, subds. 4, 6. Minn. Stat. S 469.003, subd. 7. Minn. Stat. ~ 469.013. CHAPTER 15 6. Financing Operating funds, capital improvements, and debt retirement expenses for HRA projects may be financed by anyone, or combination of, the following methods: . Federal grants. . Revenue bonds the HRA or local governing body sells. . General obligation bonds the local governing body sells. . Tax increments from redevelopment projects. . A limited mill levy for redevelopment projects and planning activities. . A limited mill levy for informational and relocation services. 7. Certifications to state The following documents relating to the establishment and activities of local HRAs must go to the DEED commissioner: . Resolution of need. . Certificates of appointment or reappointment of HRA conunissioners. . Project reports. . Applications for federal assistance. . Contracts with federal agencies. . Redevelopment plans. . Low rent public housing project and management plans. In addition, annual financial reports must go to the state auditor. 8. Federal certification In order for a local HRA to use federal Department of Housing and Urban Development (HUD) assistance programs, it must submit a transcript of organizational documents to the BUD area office. 9. Pros and cons of the HRA While HRAs have demonstrated competence and professional expertise in many areas, any special purpose agency like an HRA will have some pros and callS; 15:8 HANDBOOK FOR MINNEsOTA CITIES This chapter last revised 12/2008 Minn. Stat. ~ 469.041. Minn. Stat. ~ 469.043, subd. 2. CHAPTER 15 a. Pros Fiscal self-sufficiency. Due to the nature of the programs an HRA addresses, it can fund projects usually outside the general government budget with minimal, direct impact on the city budget. The enabling legislation also allows for a one-third mi1llevy and the use of revenue bonds. Greater efficiency. Because of the specialized functions of an HRA, it can organize its operations in a certain area better than general government by focusing resources on the delivery of a specific program rather than on a wide-range of conventional services. Flexibility. An HRA can act swiftly to meet a problem and has the flexibility to be more innovative than a city council in developing new approaches. Furthermore, an BRA has the ability to coordinate public and private resources to solve problems. b. Cons Operating too independently. Because it is somewhat free of political pressure, an HRA can administer programs with only a minimal amount of accountability for its actions. Fragmentation of the local government function. An HRA can run the risk of operating at cross-purposes or in contradiction to city policies, which can result in conflict with and duplication of efforts. Responsiveness to public opinion. HRA operations, insulated from the electoral process, can risk being insufficiently responsive to public opinion or community thinking. B. General city development powers Cities have authority to aid and cooperate in the planning, construction or operation of economic development and housing and redevelopment projects. The following is a partial list of actions cities may take, with or without compensation: . Dedicate, sell, conveyor lease any of its interests in any property or grant easements, licenses or any other rights or privileges to an HRA. . Furnish parks, playgrounds, recreational, community education, water, sewer, and drainage facilities or other works adjacent to or in connection with housing and redevelopment projects. . Do any and all things necessary or convenient to aid and cooperate in the planning, undertaking, construction or operation of the projects. . Grant a partial tax exemption of up to 50 percent of all local taxes for housing projects in a redevelopment district. HANDBOOK FOR MINNESOTA CITIES 15;9 This chapter last revised 12/2008 Minn. Stat. g 469.192. Minn. Stat. ii 116J.415,469.001 to 469.068, 469.090 to 469.1082, 469.124 to 469.134, 469.152 to 469.1651. Judd Supply Co. v. Merchants & Mfgs. Ins. Co., 448 N.W.2d 895 (Minn. Ct. App. 1989). Minn. Stat. "469.048 to 469.089. Minn. Stat. Sg 469.090 to 469.1 082. The Minnesota Department of Employment and Economic . Development publishes The Economic Development Authorities Handbook For a copy of this book, and for sample resolutions and by laws for an EDA, contact the League's Research Deparbnent at (651) 281-1220 or (800) 925-1122. Minn. Stat. * 469.192. Minn. Stat. "469.090 to 469.1082. Minn. Stat. g 469.098. CHAPTER 15 A statutory city, a home rule charter city, an economic development authority, a housing and redevelopment authority or a port authority may make a loan to a business, a for-profit or nonprofit organization or an individual for any purpose the entity is otherwise authorized to carry out under any of the laws cited. Private development projects that receive public financial or other assistance will not necessarily become public projects that trigger competitive bidding or other state laws applicable to public works. C. Economic development authorities/port authorities Two development approaches gaining in use are the port authority and the economic development authority. More than 25 cities now have the powers of a port authority under special laws and many more have created economic development authorities. All cities may create economic development authorities that have most of the powers of port authorities. The city may consolidate the economic development authority (EDAJ with an (lxisting HRA or the city may grant the authority HRA powers. The city council may create an EDA by passing an enabling resolution. Before adopting the enabling resolution, the city must first conduct a public hearing. The enabling resolution establishes a board of commissioners for the EDA. The city council can choose to serve as the EDA board of commissioners or create a board composed of a cross- section of the community. The mayor, with approval of the council, appoints the commissioners. The board may consist of three, five or seven members who serve six-year tenus. The board is subject to the open meeting law. An EDA is authorized to make a loan to a business, a for-profit or nonprofit organization, or an individual. Before taking an action or making a decision which could substantially affect an EDA commissioner's or an employee's financial interests or those of an organization with which the commissioner or an employee is associated, a commissioner or employee of an authority must comply with specific requirements to disclose the conflict and obtain prior approval. Failure to do so may result in criminal charges. Loans must be for a purpose the EDA is authorized to carry out under the law. An authorized purpose must deal with or contribute to economic or industrial development. EDAs have the ability to use pooled bond reserving. In most development programs, each bond issue is independent of any other bond issue with a separate service or sinking fund account, EDAs, however, may create a single common bond reserve fund. Under this arrangement, each project's revenues go into a common fund, which in turn pays the bondholders on all projects. Through this pooling mechanism, the security of each project's bond increases and borrowing costs decrease as long as the pool has the necessary volume and diversity of cash flow. 15:10 HANDBOOK FOR MINNESOTA CITIES This chapter last revised 1212008 Minn. Stat. 9 469.101, subds 1,2 Minn. Stat. S 469.102. Minn. Stat. 99 469.109 to 469.123. Minn. Stat. 9 469.110, subd. 11. Minn. Stat. ~ 469.111. Minn. Stat. S469.111. Minn. Stat. 9469.115. Minn. Stat. 99 469.124 to 469.134. Mino. Stat. 9 469.127. Minn. Stat. 99469.152 to 469.1651. Minn. Stat. 9 469.152. CHAPTER 15 EDAs can acquire property and facilities but cannot issue debt without an election. The city must authorize the issuance of debt in the resolution creating the EDA. Also, EDAs can create economic development districts but the districts must be contiguous and qualify as blighted under the tax increment law. D. Municipal or area redevelopment agencies Any municipality or group of municipalities may establish a public body, known as a municipal or area redevelopment agency, in and for the area the municipality covers. This law defmes municipalities as home rule charter or statutory cities, counties, towns or school districts. The law includes only rural areas, which generally means all areas that are not within the boundary of any city having a popl:llation of 50,000 or more, and not inunediately adjacent to urbanized and urbanizing areas with a population density of more than 100 persons per square mile or areas with an unemployment rate of 6 percent or more. The restrictions limit applicability of the law to rural areas and to the Iron Range. The establishment of the municipal or area redevelopment agency is similar to the establishment of an HRA. A municipal or area redevelopment agency has similar powers to an HRA. E. City development districts Any home rule charter or statutory city may designate development districts within the boundaries of the. city. Within these districts, cities may: . Adopt a development program to acquire, construct, reconstruct, improve, alter, extend, operate, maintain or promote developments aimed at improving the physical facilities, quality of life, and quality of transportation. . Promote pedestrian skyway systems. . Install special lighting systems, street signs and street furniture, landscaping of streets and public property, and snow removal systems. The law encourages pedestrian skyway systems, underground pedestrian concourses, people-mover systems, and publicly-owned parking structures. It exempts these structures from taxation even when they are attached to privately-owned buildings. F. Municipal industrial development For the purpose of attracting industrial and commercial development and encouraging local governments to prevent economic deterioration, any home rule charter or statutory city or its redevelopment agency has the power to promote industrial development by: HANDBOOK FOR MINNEsOTA CITIES 15:11 This chapter last revised 12/2008 Minn. Stat. s 469.155, subd. 4. Minn. Stat. 9 469.153, subd. 2. Minn. Stat. S 469.155, subd. 14. Minn. Stat. ch. 462A. For more information about MHF A programs, contact MHF A at 400 Sibley Street Suite 300, Sl Paul, MN 55101-1998, (651) 296.7608 or (800) 657-3769. Minn. Stat. S 462A.073 et seq. CHAPTER 15 . Acquiring, constructing, and holding lands, buildings, easements, improvements to lands and buildings, capital equipment, and inventory for industrial projects. . Issuing revenue bonds and entering into revenue agreements to finance these activities to promote industrial projects. . Refinancing health care and other facilities. Under the legislation, cities assist industries in starting operations and use generated revenues to repay the costs. This law is the basis for issuing most industrial revenue bonds. Industrial projects eligible for assistance include any revenue-producing enterprises engaged in assembling, fabricating, manufacturing, mixing, processing, storing, warehousing or distributing any products of agriculture, forestry, mining or manufacturing, or in research and development activity in these fields. Eligible projects may include costs related to dewatering activities. The law prohibits a city from operating any of these projects as a business or in any other manner. G. Minnesota Housing Finance Agency The goals of the Minnesota Housing Finance Agency (MHF A) are to provide decent, affordable housing to low- and moderate-income people; preserve the existing housing stock in Minnesota; preserve existing neighborhoods and prevent them from deteriorating; prevent mortgage foreclosures and promote energy conservation in residential housing. The Minnesota Legislature created the MHF A in response to a shortage of affordable housing for low- and moderate-income people. Private enterprise and private investment were unable, without public assistance, to provide an adequate supply of safe, sanitary, and decent housing at affordable prices and rents. The sale of state tax-exempt bonds is the primary financing for MFHA programs. The nature of these bonds allows the MHF A to make below- market interest rate loans for the construction or rehabilitation of single- and multi-family housing. Appropriations from the Legislature provide additional funding for programs, including: the promotion of energy conservation; an increase in home ownership opportunities for first time homebuyers; home improvement grants to very low-income homeowners; and programs to improve the housing available to Native Americans, large families, and the disabled. 15:12 HANDBOOK FOR MINNESOTA CITIES This chapter last revised 1212008 Minn. Stat. ch. 116J. Minnesota Department of Employment and Economic Development. Minn. Stat. SS 116JA1fto 116J.424. The USDA Development. Minn. Stat. g 1 ]6J.431. Greater Minnesota Business Development Infrastructure Grant Program. Minn. Stat. g 272.02, subd. 64. CHAl'TER 15 H. Department of Employment and Economic Development The. Minnesota Department ofElTIployment and Economic Development (DEED) is the primary development agency for Minnesota. DEED staff is responsible for a wide range of grant and loan programs, as well as for providing technical assistance to businesses and communities. DEED also provides grants for contamination cleanup and redevelopment, administers the rural development program, makes challenge grants to regional organizations to encourage private investment in rural areas, and administers a revolving loan fund to provide loans to new and expanding business in rural Minnesota. Local government units, including cities, may receive these loans if the community has established a local reviving loan fund and can provide at least an equal match to the loan received. The 2002 Legislature established DEED's greater Minnesota business development infrastructure grant program. Cities outside the seven-county metropolitan area may receive grants for up to 50 percent of the capitol costs of public infrastructure necessary for certain specified economic development projects excluding retail and office space. DEED administers "tax-free" job opportunity building zones (JOBZ). In each of these zones, businesses will be eligible for a broad range of tax incentives for a period of 12 years. Under the program, local units of government, including cities, must submit applications to DEED and follow all statutory requirements related to JOBZ. I. Enterprise Minnesota Minn. Stat ch. 1160. Enterprise Minnesota, Inc. (formerly Minnesota Technology) is a public corporation of the state created by the Legislature in an attempt to combine the best features of a private development corporation and a governmental development agency. The purpose is to foster long-term economic growth and job creation while using the existing development infrastructure. Enterprise Minnesnta Enterprise Minnesota focuses on applied research and technology transfer 612-373-2900 or 800-325-3073 and early stage funding for small manufacturers. Enterprise Minnesota may provide financial assistance, including loan guarantees, direct loans, interest subsidies, equity investments, and joint ventures. Minn. Stat, ] 160.061. Financial assistance may be provided to sole proprietorships, corporations, other entities, or nonprofit organizations. Financial assistance includes, but is not limited to, assisting a qualified company or organization with business services and products that will enhance the ojlerations of the entity. HANDBOOK FOR MlNNESOT A C:mEs 15: 13 This chapter last revised 1212008 CHAPTER 15 III. Programs A. Housing bonds Minn. Stat. ch. 462C. Cities may use revenue bonds for financing single- and multi-family housing, primarily for the benefit oflow- and moderate-income families. The law contains single- and multi-family housing criteria and the specific actions cities must take to comply with the law. Federal law limits the issuance of housing revenue bonds. Bonding authority is allocated by a state formula. B. Industrial parks An industrial park is a tract of land suitable for industrial use because of location, topography, proper zoning, availability to utilities, and accessibility to transportation. A single body has administrative control of the tract. In some cities, an industrial park may be little more than a tract of unimproved land, while in other cities it may be totally served by city services and have restrictive building requirements. An industrial park's purpose is to attract industrial development. Advantages and disadvantages of industrial parks are sometimes justified and sometimes unsubstantiated. Advantages include reduced site development costs and site readiness. Disadvantages include the initial cost of acquiring and improving the land and installing city services, as well as the potential for the land to become subject to county and school district taxation before the city finds a private buyer. Property a city holds for later sale for economic development purposes remains tax exempt for a period of eight ye,,!"s, or until buildings or other improvements that are constructed after acquisition reach one-half occupancy. Currently, private enterprise creates most new industrial park development by establishing a for-profit community development corporation. A city can cooperate with that corporation through its land-use controls and methods of financing public improvements. Many cities have also established industrial parks complete with streets, water, and sewer, in spite of the possible tax ramifications. The city then sells or leases a portion of the park to a business needing a location for its building. 15:14 HANDBOOK FOR MINNESOTA CITIEs This chapter last revised 12/2008 See also, Minn. Stat. S 469.185. MUm. Stat. , 465.035. A.G. Op. 476-B-2 (Mar. 2, 1961). City of Pipestone v. Madsen, 287 MUm. 357, 178 N. W.2d 594 (1970). Minn. Stat. SS 469.152 to 469.]651. For more information, contact DEED at 500 Metro Square Building, 121 East Seventh Place, St. Paul,MN 55101-2146, (651) 297-12910' (800) 657-3858. CIiAPTER 15 The law authorizes any city owning lands that are not restricted by the deed to convey the lands for nominal consideration, to encourage and promote industry, and to provide employment for citizens. In finding that a conveyance ofland for an indoor arena was not within the statute, the attorney general concluded the conveyance must encourage and promote industry and provide employment for citizens. A more direct promotion of industry is necessary, beyond the fact that more potential customers might be in town as a result of athletic contests. Because the Legislature may not constitutionally authorize the expenditure of public funds for private purposes, there may be some doubt about the constitutionality of this law. However, the courts have upheld the municipal industrial development revenue bond law against the same objection. The laws that authorize the granting oflands presumably override any charter restrictions as to bids or voter approval of the disposition of such lands. However, they have no effect in granting authority to convey land a city holds in trust for a particular purpose. The city's attorney can best advise the city concerning the legality of a purchase ofland for resale. Local circumstances are important in detennining the legality. C. Industrial revenue bonds The municipal industrial development laws help cities attract new commercial and industrial development, and keep existing businesses in the city. The law authorizes the council to issue revenue bonds, and use the proceeds to acquire and construct industrial sites and facilities. The city then leases these facilities to private industry and uses the rental fee proceeds to retire the bonds. A city may issue industrial revenue bonds, also known as municipal revenue bonds, without public referendum. It cannot pledge the full faith and credit of a community as security for these bonds. Thus, the city may not tax property owners to pay principal and interest on the bonds. If a city decides to investigate the use of industrial bond fmancing, it should contact the Department of Employment and Economic Development. The department provides the city with infonnation, advice, and technical assistance. This assistance is important, due to the adoption of federal and state laws allocating issuance authority among the states and their political subdivisions. The commissioner of Securities must approve the project. D. Commercial rehabilitation Minn. Stat. ,469.184. Cities have authority to carry out programs for the rehabilitation of small- and medium-sized commercial buildings. The city must adopt a program ordinance that provides for the adoption of program regulations, including a definition of small- and medium-sized commercial buildings. Loans under the program may be for amounts up to $200,000. The city may finance the program through the sale of revenue bonds. HANDBOOK FOR MlNNESOTA CmEs 15:IS This chapter last revised 12/2008 Minn. Stat. ~9 469.174 to 469.1799. Minn. Stat. 9 469.175, subd. 5. Minn. Stat. 9 469.1771, subds. 1, 2b. CHAPTER IS E. Tax increment financing (TIF) Tax increment financing authority is available to most cities. Cities with housing and redevelopment authorities, economic development authorities, port authorities, redevelopment agencies, those cities administering development districts or development projects, or cities exercising port authority powers under a general or special law may use tax increment financing. Certain recent amendments, however, may make the use of this development tool impractical. Tax increment financing is a funding technique that takes advantage of the increases in tax capacity and property taxes from development or redevelopment to pay public development or redevelopment costs. The difference in the tax capacity and the tax revenues the property generates after new construction has occurred, compared with the tax capacity and tax revenues it generated before the construction, is the captured value. The taxes paid on the captured value are called "increments." Unlike property taxes, increments are not used to pay for the general costs of cities, counties, and schools. Instead, increments go to the development authority and are used to repay public indebtedness or current costs the city incurred in acquiring the property, r.emoving existing structures or installing public services. Thus, the property owner in a TIP district continues to pay the full amount of property taxes. TIP involves only the increased property taxes generated within the district. It does not pre-empt the amount of property taxes currently derived from the redevelopment area, nor does it directly affect the amount or rate of general ad valorem taxes the city levies. The result of a TIP project is an increased tax base that will benefit all local taxing jurisdictions. Additionally, TIP districts usually create new johs and help stimulate. the economy. TIP is used to encourage four general types of private development: redevelopment, renovation and renewal, growth in low- to moderate-income housing, and economic development. The city using TIP must report annually to the county board, the county auditor, the school board, and the state auditor as to the status of the TIP district or districts and publish the report. The state auditor has established a uniform system of accounting and financial reporting for TIP districts. The city must annually submit to the state auditor a fmancial report in compliance with these standards. The state auditor may audit TIF districts. If the state auditor notifies a TIP authority of an alleged violation, a copy of the notice is also forwarded to the county attorney. Ifno action is brought within one year, the county attorney must notify the state auditor, who then notifies the attorney general. If the attorney general finds a substantial violation, the attorney general will petition the state tax court to suspend the authority's power to use TIP for a period of up to five years. 15.16 HANDBOOK FOR MINNESOTA CITIES This chapter last revised 12/2008 Minn. Stat. ~ 469.177, subd. 8. Lake Superior Paper Indus. v. State, 624 N.W.2d 254 (Minn. 2001). Brookfield Trade Center, Inc. v. County of Ramsey, 609 N.W.2d 868 (Minn. 1998). SeeMinll. Stat. S~469.177, subds. Ib, 11; 469.1771, subd. 1; 469.1791; 469.1793; 469.1799; and469.1814. Minn. Stat. S 469.174 Minn. Stat. S469.175 Walser Auto Sales, Inc. v. City of Richfield, 635 N.W.2d 391 (Minn. Ct. App. 2001), '!ff'd, 644 N.W.2d 425 (Minn. 2002). Chenoweth v. City of New Brighton, 655 N.W.2d 821 (Minn. Ct. App. 2003). CHAPlER15 The TIF agreement with the developer is a complex document. Assistance from a financial advisor and the city attorney is necessary in order to anticipate the many potential problems. An agreement can establish a minimum market value for tax increment assessment purposes, as well as provide that the developer pay a certain level of taxes regardless of any classification rate changes or levy decreases The agreement should be entered into before the assembly and acquisition of the land on which the completed improvements are to be located. The 2001 tax reform legislation, which reduced class rates and provided for the state takeover of the general education levy, resulted in several changes to various statutes to accommodate the changes. The continued viability of TIF in the future has been considerably reduced by these changes. The law imposes a ISO-day statute oflimitations on actions to challenge the creation or modification of a TIF district. The law is complex including a "but-for" finding before a city approves a TIF plan and the creation of a TIF district. Cities must follow statutory requirements as to administrative expenses, plan modifications, reporting requirements, use of increment in pre-1979 districts, excess increments, pool, and decertification, among other things. Before a district can be created, the law requires a detailed estimate of the impact of a proposed district on city"provided services, such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, in addition to other complex estimations must be prepared. Cities should use extreme care in establishing a TIF district and should follow alt procedural requirements; otherwise a court may find the district was not properly established. A TIF district was not properly established where minimal effort was made to ensure the thorough inspection ofthe properties, inaccurate and unprecedented methodology was used to establish the condition of the buildings, and the buildings found structurally substandard were not reasonably distributed throughout the district. A cause of action for inverse condemnation does not arise where a city's involvement with an adjacent property owner's development consists of establishing a TIF district, entering into a contract with a private developer specifying the size and value of structures to be built, and providing for substantial city assistance to facilitate development. Given the complexity of the laws governing the use ofTIF, cities or HRAs should not undertake this method of financing community development projects without the advice of an attorney and professional consultants. HANDBOOK FOR MINNESOTA CITIES 15:17 This chapter last revised 1212008 Minn. Stat. ~~ 469.1812 to 469.1815. More information is available on the HUD web site. Minn. Stat. ch. 398A. Minn. Stat. * 398A.I0, subd. 2. CHAYrER 15 F. Property tax abatement A city may grant an abatement of some Or all of the taxes or the increase in taxes it imposes on a parcel of property ifthe city expects the benefits of the proposed abatement agreement to at least equal the costs of the proposed agreement. The city must also determine that the agreement is in the public interest because it will increase or preserve tax base, provide employment opportunities, provide or help acquire or construct public facilities, help redevelop or renew blighted areas, or help provide access to services for residents of the city. Property taxes in a TIF district cannot be abated unless the period of the abatement will not occur until after the district is decertified. A resolution must be adopted after notice and public hearing, specifYing the terms of the abatement. There are statutory limits on the duration and amount ofthe abatement. Bonds may be issued in an amount equal to the sum of the proposed abatements to provide funds for projects. School districts and counties have similar abatement powers. A city, county, and school district can agree to abate their taxes on the same property. Abatements may be used to phase-in property tax increases that are caused by large increases in market value. G. Community development block grants The Community Development Block Grant (CDBG) program, under the U.S. Department of Housing and Urban Development (HUD), provides cities with federal funding to initiate and continue a diverse array of housing and community development projects. H. Transportation In addition to the basic authority of cities to construct and maintain streets, cities may be involved in alternative methods oftransportation. For some cities, public transportation systems are of major importance in the overall plan for community development and redevelopment. 1. Railroads The Regional Railroad Authorities Act (RRAA) allows counties and other local units of government to provide for the improvement and preservation oflocal rail service. A county regional railroad authority may not contribute any funds to pay the operating and maintenance costs for a light rail transit or commuter rail project. If a county regional railroad authority is contributing funds for operating and maintenance costs on a light rail transit or commuter rail project on February 25, 2008, the authority may continue to contribute funds for these purposes until January 1,2009. 15:18 HANDBOOK FOR MINNEsOTA CITIES This chapter last revised 12/2008 Minn. Stat. ~ 390A03, subd. 1. Minn. Stat. 9 360.032. Minn. Stat. 99 360.061 to 360.074. Minn. Stat. 9 360.0426, subd. 1. Minn. Stat. 9 360.0426, subd. 3. Minn. Stat. S 360.031. Minn. Stat. S 360.0425. Minn. Stat. 9 360.0426, subds. 6~ 8. Minn. Stat. ! 360.046. Minn. Stat. S 412.221, subd. 32. Minn. Stat. S 174.27. Some of these state grants are discussed on the MnlDOT web site. CHAPTER 15 One or more municipalities may form a regional railroad authority. Before a city may organize an authority, however, it must ask the county to organize an authority. If the county or counties do not organize an authority within 90 days after receiving the request, the city or cities may organize under a resolution they adopt after a public hearing. Cities may also loan or donate money; dedicate, sell or lease city property to an authority, and provide public improvements to authority property. The commissioner of the Department of Transportation has the power to pay a portion of a regional railroad authority's cost of acquiring a rail line. 2. Airports and airport authorities Any city may own and operate an airport, and may zone to prevent airport hazards. Cities working with other cities or entities may, by joint resolution, establish an airport authority which is a governmental entity created for the purposes of acquiring, establishing, constructing, maintaining, improving, and operating airports and other air navigation facilities The powers of the airport authority are vested in airport authority commissioners. The commission must have at least five commissioners and each participating governmental unit must be represented. The commissioners terms are three years, provided that initial terms are staggered so that only one-third of the terms expire each year. Airport authorities are considered "municipalities" and may impose a property tax levy. The authority must certify the amount to be levied to the cOlmty auditor where the airport is located. Airport authorities have all the powers of a city to own and operate an airport. State law governs increasing, decreasing or abolishing airport authorities. To close a municipal airport, a city must provide written notice to the commissioner of the Department of Transportation of intent to close the airport, and then provide a hearing within 90 days with a 30-day public notice. 3. Mass transit Some Minnesota cities operate mass transit systems, either under the general authority of the statutory city code, charter provisions or special laws. The law authorizes cities to have commuter van pools for employees. A variety of state grants to assist public transit systems are available. Contact the Department of Transportation for more information. HANDBOOK FOR MINNESOTA CITIES 15:19 This chapter last revised 1212008 Mmn. Stat. ! 469.189. Minn. Stat.! 469.]89. Minn Stat.! 469.187. Minn. Stat. S 469.188. A.G. op. 59-A-22 (May 23, 1958). A.G. Op. 59-A-22 (May 20, 1965). A.G. Op. 469-B-2 (May 25, 1959). A.G. Op. 476-B.5 (Oct. 29, 1959). Mitchell v. City of St. Paul, 114 Minn. 14, 130 N.W. 66 (1911). See 16 McQuillin, Municipal Corporations S 44.40. MintL Stat. 9 469.]86. CHAPTER 15 I. Advertising Cities have wide discretion in using city funds to promote their communities. Because the laws treat certain types of cities differently, this discussion will deal with the laws governing the use of city money for advertising purposes. Except for first class cities (Minneapolis, Duluth, and St. Paul), the council of any statutory or home rule charter city may appropriate money each year for advertising. A city may use the appropriated money only for the purpose of advertising the municipality and its resources and advantages, including cooperative programs of more than one city. First class cities may levy a tax not to exceed .00080 percent of their taxable market value. Second class and third class cities may levy a tax for advertising agricultural, industrial, business, andthe community's other resources. The council has considerable discretion in determining what constitutes advertising. The attorney general has ruled, for example, that: a survey of business and business development is permissible; the council may decide whether the cost of a city progress report is a legitimate advertising expenditure; the city may pay for signs outside city limits advertising the city; under similar authority to levy a tax to advertise the agricultural, industrial, business, and general resources, the city could pay for a parade float if the council determined that the float would advertise the city; and whether the law authorized Christmas decoration was a fact question for the council. As far back as 19i I, the Minnesota Supreme Court held that a contract with a publicity bureau was a reasonable means to promote the general welfare of the city. It is important, of course, that whatever a city chooses to do should be within the bounds of the public rather than the private interest and benefit the community as a whole. 1. Bureau of information and publicity Any statutory city may establish and maintain a bureau of information and publicity. The purpose of the bureau is to furnish tourist information; provide outdoor advertising; and prepare, publish, and circulate information about the recreational facilities, businesses, and industrial conditions of the community. Ibis law does not authorize a special tax levy. Because the statutes give every city the authority to appropriate money for advertising, this would seem to include authority to maintain a bureau of information and publicity. It is doubtful the publicity statute provides any additional authority for statutory cities. 15:20 HANDBOOK FOR MINNESOTA CrITEs This chapter last revised 12/2008 Sverkerson v. City of Minneapolis, 204 Minn. 388, 283 N.W. 555 (1939). A.G. Op. 59-A-22 (Dec. 8, 1965). Minn. Stat. ~ 412.321, subd. 1. Minn. Stat.! 465.74. Minn. Stat. @469.191. Minn. Stat. @ 465.037 (hospitals). Minn. Stat. g 471.941 (artistic organizations). For more information, contact Rural Development State Office 410 Farm Credit Service Building 375 Jackson Street St. Paul, MN 55101-1853, (651) 602-7800. CHAPTER 15 Almost all the home rule charters cities have adopted since 1930 or 1940 contain omnibus grants of power authorizing the city, without more explicit grants of authority, to do anything appropriate for a city that the Legislature might have authorized. It seems clear from the Minnesota cases, that such grants of power authorize expenditures for advertising. The attorney general has ruled that under such a charter provision, the city may promote business and industrial development, and hire a staff for that purpose. It seems likely a charter city, without an omnibus grant but with a typical general welfare clause, has authority to make expenditures for advertising the city as long as the particular expenditures are for a public purpose. J. City district heating system Any city may acquire, construct, own, and operate a city district heating system, and issue and sell general obligation bonds to finance any city expenditures related to the acquisition or operation of a district heating system. Cities may issue revenue bonds payable solely from all or portions of revenues the city receives from a district heating system. The city itself, by ordinance, may authorize a redevelopment agency to exercise any and all ofthe city's powers to issue these revenue bonds. K. Contributions to economic development organizations Cities may appropriate up to $50,000 annually from the general revenue fund to any incorporated development society or organization of the state for promoting, advertising, improving or developing the economic and agricultural resources ofthe city. L. Contributions to hospitals, artistic organizations Cities may make grants to private, nonprofit or public hospitals that serve the city, or to artistic organizations that provide an opportunity for people to participate in the creation, performance or appreciation of a wide range of artistic activities. M. Rural development grants A variety of grants and loans are available to cities from the U. s. Department of Agriculture, rural development program. Sewer, water, rural enterprise, housing, and other types of grants and loans are available. HANDBOOK FOR MINNESOTA CITIES 15:21 This chapter last revised 1212008 Minn. Stat. ! 116J.037. For more infonnation, contact DEED (651)297-1291 or (800) 657-3858. Minn. Stat.! 465.717. CHAPTER 15 N. E-commerce ready cities Cities that meet certain conditions may be designated e-commerce ready cities by the Department of Employment and Economic Development. o. Corporations created by cities Several cities have created non-profit corporations for a variety of reasons, mostly involving community development. Cities are now prohibited from creating non-profit corporations unless authorized by special legislation. A joint powers entity can incorporate itself, but must comply with aU applicable public sector laws (open meeting, gift law, conflicts of interest, competitive bidding, etc.). IV. How this chapter applies to home rule charter cities AU of the tools this chapter lists are av,!ilable to charter cities. The general discussions also apply to all cities. 15:22 lIANDBOOKFoRMINNESOTA CITlES This chapter last revised 12/2008 Attachment 2 Pursuant to due call and notice thereof, a regular meeting.of the City Council of the City of Maplewood, Minnesota, was duly called and held in the Council Chambers in said City on the 3rd day of October, 1974, at 7:30 P.M. The following members were present: Robert T. Bruton, Mayor John C. Greavu, Councilman Donald J. Wiegert, Councilman Norman G. Anderson, Councilman Murton A. Murdock, Councilman The following members were absent: None. Councilman Anderson ihtroduced the following resolution and moved its adoption: 74 - 10 - 221 PURSUANT TO MOTION adqpi:-ed by this body on the 15th day of August, 1974, a hearing has been held by the Council at Maplewood, Minnesota, to determine the need for a housing and redevelopment authority to function in such City. WHEREAS, facts have been submitted to this body showing that.there is a need for a housing and redevelopment authority to function in the City of Maplewoad, Ramsey County, Minnesota; THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF MAPLEWOOD, RAMSEY COUNTY, MINNESOTA, that the .Council of the City of Maplewood, pursuant to the uMunicipal Housing and Redevelopment Act" of the State of ~nnesota, hereby finds, determines and declare~: (1) There is a shortage'of decent, safe and sanitary dwelling accom- modations available to persons of low income and their families at rentals they can afford; (2) It is hereby declared that there is a need for a housing and re- development authority to function in the City of Maplewood and said need continues to exist. Seconded by Mayor Bruton Ayes - Mayor Bruton, Councilmen Anderson and Wiegert. Nays - Councilmen Greavu and Murdock Motion carried. STATE OF MINNESOTA COUN~Y OF RAMSEY SS. CITY OF MAPLEWOOD I, the undersigned, being the duly qualified and appointed Clerk of the City of Maplewood, Minnesota, do hereby certify that I have carefully compared the attached and foregoing extract of minutes of a regular meeting of the City of Maplewood, held on the 3rd day of October, 1974, with the original on file "in my office, and the same is a full, true and complete transcript therefrom insofar as the same relates tb ,the Housing and Redevelopment Authority. witness my hand as such Clerk and the corporate seal of the City this eleventh day of June, 1986. ~~L~~ ~..:; City Clerk City of Maplewood, Minnesota