2A, Economic Development Authority

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E 470 US Bank Plaza _ 200 South Sixth Street Minneapolis MN 55402 (612)337-9300 telephone (612)337-9310 fax http://www.kennedy-graven.com CHARTERED MEMORANDUM TO: Patrick Klaers Sue Iverson FROM: Stephen Bubul DATE: February 17, 2012 RE: EDA v City Powers You asked me to provide some background information on the function of an EDA, and how its powers differ from those of the City. Cities have certain economic development powers, most significantly under the municipal development district act, Minnesota Statutes, Section 469.124 to 469.134. Other scattered statutes give Cities powers needed for a wide variety of activities, including tax increment financing and abatement. An EDA, by contrast, has its own broad powers related to economic development, along with most other powers given to other entities (including the city powers under Section 469.124 to 469.134). Further, the City has the ability, in the EDA enabling resolution, to determine how these various powers will be used. In the case of the Arden Hills EDA,the original enabling resolution gives the EDA all the powers it can have under law, and does not require City Council approval of any EDA action. Presumably, this is because the enabling resolution designates the City Council itself as the board of commissioners, so requiring separate approval by the Council was thought to be redundant. If the City Council is also the board of commissioners of the EDA, the practical significance of the EDA is that it provides maximum flexibility in use of various development and redevelopment powers (see separate memo on EDA and HRA powers). In a sense, the EDA simply expands the City's "tool box" of development powers. In many cases,the EDA may use these powers on its own without City Council action(so no duplication is needed). There are exceptions, where statutes require actions by both