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ARDEN HILLS CITY COUNCIL WORK SESSION—FEBRUARY 21, 2012 3 City Planner Beekman indicated the proposal calls for 153 single room occupancy units, which are distinct from dwelling units. These units would not have kitchens. Arden Hills City Code would not allow these types of units without a code amendment. She reviewed neighboring city codes and at this time, no cities allow these types of units. City Planner Beekman explained Northwestern College previously leased this building and they operated it as student housing. However, Mr. Davidson is proposing a privately owned apartment, which is very different. For this reason, staff is recommending the proposal be denied. The Sheriff had concerns with the proposal as well. City Administrator Klaers noted staff wanted to inform the Council on the issue and supported Mr. Davidson in reusing the site. However,the proposal did not meet City Code at this time. 2. AGENDA ITEMS A. Economic Development Authority Director of Finance and Administrative Services Iverson presented the City Council with a background memo discussing Arden Hills' EDA. She summarized the highlights within her memo noting that the EDA was created in 1996. The goals and strategies of the EDA were also discussed. She explained further each TIF District within the City of Arden Hills. Steve Bubul, Kennedy & Graven, discussed the role and limits of an EDA. He indicated an EDA was created through a resolution with membership including at least two City Councilmembers and up to seven total members. The City of Arden Hills EDA consists entirely of its City Councilmembers. He stated the EDA focuses on economic development within the community. Mr. Bubul explained that the EDA is a separate governing body from the City Council. Cities can operate without an EDA. However, an EDA can handle TIF Districts and economic development issues for the City. He discussed how redevelopment districts could be managed by the EDA. It was noted that EDA issues could be handled in a separate meeting, with a separate agenda and funding. Councilmember Holden questioned if the EDA could complete the functions of an HRA as well. Mr. Bubul stated this was the case as EDA's have a broad range of powers in comparison to an I-IRA. HRA's deal more closely with blight and affordable housing. Councilmember Holden commented the Holiday Inn property was in great need of redevelopment. She questioned how the EDA could work to redevelop this property. Mr. Bubul explained funds could be used to assist with demolition of the Holiday Inn, or grants could be applied for to assist a developer with redevelopment. He discussed how the EDA could have its own separate levy and funds available for economic development issues in the City. City Administrator Klaers asked if the City would have any complications if the EDA were dissolved.