2A, Economic Development Authority

Home Browse Search

public hearing with 10 days published notice and restrictions on use or resale of the property to accomplish the public purpose of the redevelopment plan. Section 469.029. 1. To exercise the powers of a City in carrying out a commercial rehabilitation loan program under Section 469.184, if the City by ordinance so authorizes. Section 469.184, Subd. 7. M. To make loans to a business, a for-profit or nonprofit organization, or an individual for any purpose that an HRA is otherwise authorized to carry out under the HRA Act. Section 469.192. In addition to the powers described above, HRAs are one of the "authorities" with the power to establish tax increment financing districts (with City Council approval) under Sections 469.174 to 469.179. The tax increment must be used to finance or otherwise pay the "public redevelopment costs pursuant to the HRA Act, which term is defined to mean the entire cost of a "project" (See Footnote 1), including administrative expense of the HRA allocable to the project and debt charges an all other costs authorized to be incurred by the HRA in the HRA Act. B. EDAs The powers of an EDA are more ambiguous and complex than those of an HRA. Most of the powers specified in the EDA Act itself must be exercised within an "economic development district" (not to be confused with a tax increment financing district with the same name). Until 2010, an EDA economic development district was required to meet all the requirements of a redevelopment tax increment financing district, including the finding that more than 50% of the buildings are structurally substandard. The odd result is that, despite the name,the core of the EDA Act provided powers only in an area that meets stringent redevelopment criteria. Legislation in 2010 finally corrected this problem by removing the redevelopment tax increment reference. Now, EDAs may create economic development districts in any contiguous area that the EDA deems appropriate. In addition, EDA Act offers significant flexibility because of its cross-referencing provisions. An EDA has all the powers of an HRA (described above) and all the powers of a city under Minnesota Statutes, Sections 469.124 to 469.134 (the "Municipal Development District Act"). The Municipal Development District Act provides broad authority to carry out economic development. Further, an EDA may use powers under Sections 469.152 to 469.165 (the "Municipal Industrial Development Act") for a purpose under the HRA Act or EDA Act, and may use the powers under the HRA Act and EDA Act for a purpose under the Municipal Industrial Development District Act. In addition to these cross-referenced powers, the EDA Act includes some specific unique powers, including the power to become a limited partner in a partnership "whose purpose is consistent with the authority's purpose" (Section 469.101, subd. 6); to carry out public relations activities in furtherance of economic development (Section 469.101, subd. 16); and to invest in certain venture capital businesses(Section 469.101, subd. 23). SJB-222120v1 SA285-04