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HomeMy WebLinkAbout12-05-11 EDA Packet Chair: Address: David Grant 1245 West Highway 96 Arden Hills MN 55112 Commissioners: Q AR N HILLS d Werner l�_`, Phone: renda Holden 651.792.7800 Fran Holmes Agenda Nick Tamble Website: December 5, 2011 www.ci.arden-hills.mn.us Special Economic Development Authority Meeting — 7:30 p.m. City vision Arden Hills is a strong community that values its unique environmental setting, strong residential neighborhoods, vital business community, well-maintained infrastructure,fiscal soundness, and our long-standing tradition as a desirable City in which to live, work, and play. CALL TO ORDER 1. APPROVAL OF AGENDA 2. NEW BUSINESS A. Approval of EDA Budgets 3. UNFINISHED BUSINESS 4. EDA MEMBER COMMENTS STAFF COMMENTS 6. ADJOURN • - ZEN HILLS MEMORANDUM I DATE: December 5,2011 TO: Honorable Mayor and City Council Members FROM: Patrick Klaers, City Administrator SUBJECT: EDA Meeting Background Mayor Grant requested that the EDA hold a meeting prior to the end of the calendar year. The reason for the meeting is to review and consider the 2012 proposed budget and to discuss the current status and future of the EDA in Arden Hills. Discussion • Hi torn The Economic Development Authority (EDA)has had an interesting history of activity and inactivity in Arden Hills. We are still reviewing EDA documents in order to piece all of the information together. The EDA was established in January 1996, when the City Council approved the Enabling Resolution. This resolution declared the City Council to also be the EDA and for the EDA to have all the powers, rights, duties, and obligations as set forth in MN Statutes. The EDA did not meet in 1996 and its first meeting was on January 13, 1997. The EDA bylaws were approved on April 14, 1997. Also on April 14, 1997,the City Council, in Resolution 97-18, transferred TIF Districts 1, 2 and 3 to the EDA. Between 1997 and 2004, the EDA typically met at least annually to approve its budget. The EDA also met as needed to address TIF District issues and to consider some special projects such as approving a Business Subsidies Policy(Res. 02-01) and authorizing the Indykiewiez appraisal (on March 8, 2004). The City Council established the Economic Development Commission(EDC) on March 8, 2004, and we can find no records of any EDA meeting after this date. Additionally, staff cannot find any comments in any City Council or EDA minutes as to why the EDA stopped meeting. Budget In spite of the EDA not meeting since 2004, it has been acceptable to have the City Council • approve the EDA budgets. Director of Finance and Administrative Services Sue Iverson has discussed this issue in the past with Steve Bubul, TIF Bond Consultant from Kennedy and Graven. Since the City Council is also the EDA,there are no legal problems with how the City has been approving EDA budgets and spending EDA monies. However,per state statutes and the EDA bylaws, it is appropriate for the EDA to start meeting again at least annually to approve its budget. In the "early years"of the City EDA,budget funds came from TIF districts. The budgets mainly provided for financing staff time spent on economic development activities. After a few years, TIF funds became scarce and the EDA became less active. During these years the staff time for economic development activities remained in the General Fund budget. Today,the TIF funds available for staff time dedicated to economic development activities has rebounded and staff time spent in economic development has increased. Accordingly, staff time and other expenses have again been shifted out of the General Fund and into the EDA Fund. The proposed 2012 EDA budget has been reviewed with the City Council at budget work sessions and is included within the draft 2012 City budget. Attached is the draft 2012 EDA budget. Sue Iverson, Director of Finance and Administrative Services, will review the 2012 EDA proposal at the meeting. Additionally, staff will review some EDA budget funding options for the next few years. EDA Activities/Work Plan The EDA should be the focal point for economic development activity in the City. The EDA should be the pro business arm of the City. Meeting as an EDA forces the City Council to "put on a different hat"and to approach City issues and challenges from a business point of view. The EDA can do some things that the City Council cannot do such as own and operate public parking facilities; be a limited partner in an economic development partnership; and buy, sell and/or lease land for economic development activities. At the next EDA meeting in early 2012,the work plan and goals should be discussed. Issues and projects to talk about include redevelopment options in the B2 district and the status of existing TIF districts. Recommendation It is recommended that the EDA approve the proposed 2012 EDA budget. Attachments: City Resolution 96-08 EDA Resolution 97-01 City Resolution97-18 EDA State Statutes 469.090-469.1082 2012 EDA Budget I CITY OF ARDEN HILLS RAMSEY COUNTY RESOLUTION NO. 96-08 RESOLUTION ENABLING THE ESTABLISHMENT OF AN ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, Minnesota Statutes, Chapter 469 authorizes cities to establish economic development authorities ('`EDA") with specified powers and obligations to promote and to provide incentives for economic development and redevelopment; and WHEREAS, the City Council of the City of Arden Hills,Minnesota(the "City") has determined that it is in the best interest to establish an EDA in order to preserve and create jobs, enhance its tax base, and to promote the general welfare of the people of the City; and WHEREAS, the City has provided public notice and conducted a public hearing on the proposed adoption of this enabling resolution on January 29, 1995 and has fulfilled all other legal requirements for the establishment of the Authority. NOW, THEREFORE,BE IT RESOLVED, by the City Council of the City of Arden Hills: 1. An economic development authority to be known as the "Economic Development Authority of the City of Arden Hills" with all of the powers, rights,duties, and obligations as set forth in Minnesota Statutes 469.090 to 469.108 and any other law is hereby established in and for the City. 2. The Authority shall be governed by a board of five (5) commissioners who shall be members of the City Council. The Commissioners shall be elected and qualified in the same manner as the members of the City Council. 3. Nothing shall prevent the City from modifying this enabling resolution to improve upon the powers of the EDA or provide for other matters as authorized by Minnesota Statutes, Sections 469.09 to 469.108 or other law. PASSED AND ADOPTED BY THE CITY COUNCIL OFT TY O E HILLS THIS 29th DAY OF JANUARY, 1996. ENMS PR BST,MAYOR ATTEST: BRIA FRITSING R, C ADMINISTRATOR CITY OF ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY RAMSEY COUNTY STATE OF MINNESOTA RESOLUTION NO. EDA-97-01 RESOLUTION ADOPTING BY-LAWS OF THE ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY WHEREAS,the Arden Hills City Council did on the 29th day of January, 1996, create an Economic Development Authority (EDA) in and for the City of Arden Hills, Ramsey County, Minnesota, pursuant to law; and WHEREAS,the EDA is authorized by Minnesota Statutes, Chapter 469, and specifically under Section 469.096 to elect officers, adopt by-laws, assign duties, and address other organizational matters. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF ARDEN HILLS, MINNESOTA that the Board hereby adopts the attached by-laws, dated April 14, 1997, of the Economic Development Authority. • PASSED AND ADOPTED BY THE ECONOMIC LOP NT AUTHORITY OF THE CITY OF ARDEN HILLS THIS 14TH D AP , 1997. DENNIS OBST, PRESIDENT ATTEST: BRIAN FRIT IN ER, SECRETARY/TREASURER M:\USERS\SHEILA\ADMIN\PLANNING\EDA\97-0 I EDA.RES BY-LAWS OF THE ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY DATED: APRIL 14, 1997 1. THE AUTHORITY Section 1.1. Name of the Authority. The name of the Authority shall be the Arden Hills Economic Development Authority (hereinafter, the "Authority"), and its governing body shall be called the Board of Commissioners (hereinafter, the "Board"). Section 1.2. Office. The principal office of the Authority shall be the Arden Hills City Offices. Section 1.3. Seal. The official seal of the City of Arden Hills shall be the Authority's official seal. 2. ORGANIZATION Section 2.1. Officers. The officers of the Authority shall consist of a President, a Vice President, a Secretary-Treasurer, Controller, and an Executive Director. The • President, the Vice President shall be members of the Board and shall be elected annually at the annual meeting. No Commissioner may serve as President and Vice President at the same time. The offices of Secretary- Treasurer, Controller, and Executive Director shall be appointed as set forth herein. Section 2.2. President. The President shall preside at all meetings of the Board. The President shall be the Mayor. Section 2.3. Vice President. The Vice President shall preside at any meeting of the Board in the absence of the President and may exercise all powers and perform all responsibilities of the President if the President cannot exercise or perform the same due to absence or other inability. The Vice President shall be the Acting Mayor. i - 2 - Section 2.4. Secretary-Treasurer. The Secretary-Treasurer shall be the City Administrator. The Secretary- Treasurer shall receive and be responsible for Authority money, shall disburse authority money by check or telephonic transfer, keep an account of all Authority receipts and disbursements and the nature and purpose relating thereto, shall file all financial reports and disclosures required of the Authority, make investments consistent with the City's Investment Policy, and be responsible for the acts of the Controller. The Secretary-Treasurer shall also keep minutes of all meetings of the Board and shall maintain all records of the Authority. The Secretary- Treasurer shall have such additional duties and responsibilities as the Board may from time to time and by resolution prescribe. Section 2.5. Controller. The Controller shall have all the powers and duties of the Secretary- Treasurer if the Secretary-Treasurer is absent or disabled. The Controller shall be the City Accountant. Section 2.6. Executive Director. The City's Community Development Director shall be the Executive Director of the Authority, and shall have such additional responsibilities and authority as the Board may from time to time by resolution prescribe. Section 2.7. Advisory Committees. The Authority may by resolution establish one or more advisory committees to the Authority. 3. PROCEDURES OF BOARD OF COMMISSIONERS Section 3.1. Annual Meeting. The annual meeting of the Board shall be held at 7:00 p.m. on the second Monday of the month of January in each year. Section 3.2. Regular Meetings. The Board shall hold regular meetings on the last Monday of each month, commencing at 7:00 p.m. or at such other time as the Board may determine. - 3 - Section 3.3. Special Meetings. Special meetings of the Board may be called by the President, any two Commissioners, or by the Executive Director. The Executive Director shall post notice of any special meeting in the principal office of the Authority no less than three days prior to such special meeting. Section 3.4. Quorum. A quorum of the five member Board shall consist of three Commissioner. In the absence of a quorum, no official action may be taken by, on behalf of, or in the name of the Board or the Authority. Section 3.5. Adoption of Resolutions. Resolutions of the Board shall be deemed adopted if approved by not less than a simple majority of all Commissioners present. Resolutions may, but need not be read aloud,prior to vote taken thereon. All resolutions shall be executed after passage. Section 3.6. Rules of Order. The meetings of the Board shall be governed by the most recent edition of Robert's Rules of Order. 4. MISCELLANEOUS Section 4.1. Fiscal Year. The fiscal year of the Authority shall be the calendar year. The Authority shall establish a separate enterprise fund for the purpose of maintaining all financial and accounting records of the Authority, including the nature of all receipts and disbursements, money on hand, and the purposes to which it may be applied, and records of Authority's debits and credits. The Authority shall establish such debt service funds as may be properly authorized and necessary for conduct of the Authority's funds. Section 4.2. Bond. The City shall ensure that all persons responsible for management of the Authority's financial records and resources are properly bonded. Section 4.3. Checks. The President, Secretary-Treasurer, and Controller shall execute all checks authorized by the Authority. Vouchers authorizing such expenditures shall be submitted and approved in conjunction and accordance with procedures for payments of other claims against the City. - 4 - Section 4.4. Financial Statements. The Authority's detailed financial statement must show all receipts and disbursements, their nature, the money on hand,the purposes to which the money on hand is to be applied, the Authority's credits and assets, and its' outstanding liabilities in a form required for the City's financial statements. The Authority shall examine the statement together with the Treasurer's vouchers. If the Authority finds that the statement and vouchers are correct, it shall approve them by resolution and enter the resolution in its records. Section 4.5. Report to City. The Authority shall annually make a report to the City Council giving a detailed account of its activities and of its receipts and expenditures for the preceding calendar year. Section 4.6. Budget to City. The Authority shall annually send its budget to the City Council which budget includes a written estimate of the amount of money needed by the authority from the City in order for the Authority to conduct business during the upcoming fiscal year. Section 4.7. Employees. The Authority may employ an executive director, a chief engineer, technical experts and agents and other employees as it may require and determine their duties, qualifications and compensations. Section 4.8. Services. The Authority may contract for the services of consultants, agents, public accountants and others as needed to perform it's duties and to exercise its powers. The Authority may also use the services of the City Attorney or hire a general counsel, as determined by the Authority. Section 4.9. Supplies, Purchasing,Facilities, and Services. The Authority shall purchase such supplies and materials as it needs. The City may furnish offices, structures and space, stenographic, clerical, engineering and other assistance to the Authority. Section 4.10. Execution of Contracts. All contracts,notes, and other written agreements or instruments to which the Authority is a part or signatory or by which the Authority may be bound shall be executed by the President, Secretary-Treasurer, and/or the Executive Director or by such other Commissioners or Officers of the Authority as the Board may by resolution prescribe. - 5 - Section 4.11. Amendment of By-Laws. These By-laws may be amended by the Board by majority vote of all the Commissioners, provided that any such proposed amendment shall first have been delivered to each Commissioner at least five (5) days prior to the meeting at which such amendment is considered. CITY OF ARDEN HILLS RAMSEY COUNTY STATE OF MINNESOTA RESOLUTION NO. 97-18 A RESOLUTION TRANSFERRING VARIOUS BUDGETARY, FINANCIAL,PROPERTY, AND PERSONNEL TO THE ARDEN HILLS ECONOMIC DEVELOPMENT AUTHORITY WHEREAS,the City Council of the City of Arden Hills,Minnesota adopted Resolution No. 96- 08,Enabling the Establishment of an Economic Development Authority; and WHEREAS,Minnesota Statutes, Section 469.094, Subd. 2, allows the City to transfer the control, authority, and operation of any project as defined in Section 469.174, Subd. 8,or any other program or project authorized by Sections 469.001 to 469.047 or 469.124 to 469.134 located within the City,from the government agency that established the project to the Economic Development Authority; and WHEREAS,the City is operating Development District No. 1 and Tax Increment Financing Districts Nos. 1, 2 and 3 within the Development Program;and WHEREAS,the City Council has expressed a desire to transfer to the Economic Development Authority all activities, programs,operations, and control of budgeting, financing,property ownership, and personnel related to the economic development activities taking place within these districts. NOW THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ARDEN HILLS,MINNESOTA: The City transfers all activities,programs,operations, and control of budgeting, financing, property ownership,and personnel related to the economic development activities taking place within Development District No. 1 and Tax Increment Financing Districts Nos. 1, 2 and 3. In addition,the City hereby transfers to the Economic Development Authority,the budgetary components of the Municipal Development/Redevelopment Fund(No. 522),which includes activities related to Development District No. 1 and Tax Increment F41SPR stricts N . 1,2 and 3. PASSED AND ADOPTED BY THE CITY COUNCICI OF RDEN HILLS THIS 14TH DAY OF APRIL, 1.997. E ST, MAYOR ATTEST:` f BRIAN FRI'TSINGER, CITY ADMINISTRATOR 469 -ECONOMIC DEVELOPMENT,2011 Minnesota Statutes Page 4 of 304 Section Headnote 0469.086 Wadena 469.087 Warroad 469.088 White Bear Lake 469.089 Winona ECONOMIC DEVELOPMENT AUTHORITIES 469.090 Definitions 469.091 Economic Development Authority 469.092 Limit of Powers 469.093 Procedural Requirement 469.094 Transfer of Authority 469.095 Commissioners; Appointment, Terms, Vacancies, Pay, Removal 469.096 Officers; Duties; Organizational Matters 469.097 Employees; Services; Supplies 469.098 Conflict of Interest 469.099 Depositories; Default; Collateral 469.100 Obligations 469.101 Powers 469.102 General Obligation Bonds 469.103 Revenue Bonds; Pledge; Covenants 469.104 Sections That Apply If Federal Limit Applies 469.105 Sale of Property 469.106 Advances by Authority 469.107 City May Levy Taxes for Economic Development Authority 469.108 Special Law; Optional Use 469.1081 Liable in Contract or Tort 469.1082 County Economic Development Authority or Housing and Redevelopment Authority with Economic Development Powers AREA REDEVELOPMENT 469.109 Purpose 469.110 Definitions 469.111 Local or Area Agencies; Establishment 469.112 Municipalities May Join Together 469.113 Conflict of Interest 46 469.114 Agencies; Meetings, Expenses 469.115 Powers of Agencies .T;P.W=chanter&year=2011&keyword type... 11/30/2011 87 MINNESOTA STATUTES 2011 469.091 ECONOMIC DEVELOPMENT AUTHORITIES 469.090 DEFINITIONS. Subdivision 1. Generally. In sections 469.090 to 469.108, the terms defined in this section have the meanings given them herein, unless the context indicates a different meaning. Subd. 2. Authority. "Authority" means an economic development authority. Subd. 3. City. "City" means a home rule charter or statutory city. Subd. 4. Development. "Development" includes redevelopment, and "developing" includes redeveloping. Subd. 5. Cost of redevelopment. "Cost of redevelopment" means, with respect to an economic development district project, the cost of: (1) acquiring property, whether by purchase, lease, condemnation, or otherwise; (2) demolishing or removing structures or other improvements on acquired properties; (3) correcting soil deficiencies necessary to develop or use the property for an appropriate use as determined by the authority; (4) constructing or installing public improvements, including streets, roads, and utilities; (5) providing relocation benefits to the occupants of acquired properties; (6) planning, engineering, legal, and other services necessary to carry out the functions listed in clauses (1) to (5); and (7) the allocated administrative expenses of the authority for the project. History: 1987 c 291 s 91 469.091 ECONOMIC DEVELOPMENT AUTHORITY. Subdivision 1. Establishment. A city may, by adopting an enabling resolution in compliance with the procedural requirements of section 469.093, establish an economic development authority that, subject to section 469.092, has the powers contained in sections 469.090 to 469.108 and the powers of a housing and redevelopment authority under sections 469.001 to 469.047 or other law, and of a city under sections 469.124 to 469.134 or other law. If the economic development authority exercises the powers of a housing and redevelopment authority contained in sections 469.001 to 469.047 or other law, the city shall exercise the powers relating to a housing and redevelopment authority granted to a city by sections 469.001 to 469.047 or other law. Subd. 2. Characteristics. An economic development authority is a public body corporate and politic and a political subdivision of the state with the right to sue and be sued in its own name. An authority carries out an essential governmental function when it exercises its power, but the authority is not immune from liability because of this. Subd. 3. Unpaid officers, directors, and agents; liability. Section 317A.257 applies to an economic development authority or to a nonprofit corporation exercising the powers of an economic development authority. History: 1987 c 291 s 92; 1994 c 623 art 5 s 2 Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 88 MINNESOTA STATUTES 2011 469.092 469.092 LIMIT OF POWERS. Subdivision 1.Resolution. The enabling resolution may impose the following limits upon the actions of the authority: (1)that the authority must not exercise any specified powers contained in sections 469.001 to 469.047,469.090 to 469.108, and 469.124 to 469.134 or that the authority must not exercise any powers without the prior approval of the city council; (2) that, except when previously pledged by the authority, the city council may by resolution require the authority to transfer any portion of the reserves generated by activities of the authority that the city council determines is not necessary for the successful operation of the authority to the debt service fund of the city, to be used solely to reduce tax levies for bonded indebtedness of the city; (3)that the sale of all bonds or obligations issued by the authority be approved by the city council before issuance; (4)that the authority follow the budget process for city departments as provided by the city and as implemented by the city council and mayor; (5) that all official actions of the authority must be consistent with the adopted comprehensive plan of the city, and any official controls implementing the comprehensive plan; (6)that the authority submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the city council for approval; (7)that the authority submit its administrative structure and management practices to the city council for approval; and (8)any other limitation or control established by the city council by the enabling resolution. Subd. 2. Modification of resolution. The enabling resolution may be modified at any time, subject to subdivision 5, and provided that any modification is made in accordance with this section. Subd. 3. Report on resolution. Without limiting the right of the authority to petition the city council at any time, each year,within 60 days of the anniversary date of the first adoption of the enabling resolution,the authority shall submit to the city council a report stating whether and how the enabling resolution should be modified. Within 30 days of receipt of the recommendation, the city council shall review the enabling resolution, consider the recommendations of the authority, and make any modification it considers appropriate. Modifications must be made in accordance with the procedural requirements of section 469.093. Subd.4. Compliance.The city council's determination that the authority has complied with the limitations imposed under this section is conclusive. Subd. 5. Limits; security. Limits imposed under this section must not be applied in a manner that impairs the security of any bonds issued or contracts executed before the limit is imposed. The city council must not modify any limit in effect at the time any bonds or obligations are issued or contracts executed to the detriment of the holder of the bonds or obligations or any contracting party. History: 1987 c 291 s 93 Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 89 MINNESOTA STATUTES 2011 469.094 469.093 PROCEDURAL REQUIREMENT. Subdivision 1. Enabling resolution. The creation of an authority by a city must be by written resolution referred to as the enabling resolution. Before adopting the enabling resolution, the city council shall conduct a public hearing.Notice of the time and place of hearing,a statement of the purpose of the hearing, and a summary of the resolution must be published in a newspaper of general circulation within the city once a week for two consecutive weeks. The first publication must appear not more than 30 days from the date of the public hearing. Subd. 2. Modifications. All modifications to the enabling resolution must be by written resolution and must be adopted after notice is given and a public hearing conducted as required for the original adoption of the enabling resolution. History: 1987 c 291 s 94 469.094 TRANSFER OF AUTHORITY. Subdivision 1. Economic development,housing, redevelopment powers. The city may, by ordinance, divide the economic development, housing, and redevelopment powers granted under sections 469.001 to 469.047 and 469.090 to 469.108 between the economic development authority and any other authority or commission established under statute or city charter for economic development, housing, or redevelopment as provided in subdivision 2. Subd. 2. Project control, authority, operation. The city may, by resolution,transfer the control, authority, and operation of any project as defined in section 469.174, subdivision 8, or any other program or project authorized by sections 469.001 to 469.047 or 469.124 to 469.134 located within the city, from the governmental agency or subdivision that established the project to the economic development authority. The city council may also require acceptance of control, authority, and operation of the project by the economic development authority. The economic development authority may exercise all of the powers that the governmental unit establishing the project could exercise with respect to the project. When a project or program is transferred to the economic development authority, the authority shall covenant and pledge to perform the terms,conditions, and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the governmental subdivision that initiated the project or program. The economic development authority may exercise all of the powers necessary to perform the terms, conditions, and covenants of any indenture or other agreements executed for the security of the bonds and shall become obligated on the bonds when the project or program is transferred as provided in this subdivision. If the city transfers a housing project or a housing development project to the economic development authority,the city must transfer all housing development and management powers relating to that specific project to the authority. Subd. 3. Transfer of personnel.Notwithstanding any other law or charter provision to the contrary, the city council may, by resolution,place any employees of the housing and redevelopment authority under the direction, supervision, or control of the economic development authority. The placement of any employees under the direction, supervision, or control of the economic development authority does not affect the rights of any employees of the housing and redevelopment authority, including any rights existing under a collective bargaining agreement or fringe benefit plan. The employees shall become employees of the economic development Copyright 0 2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. i 90 MINNESOTA STATUTES 2011 469.095 authority. History: 1987 c 291 s 95; 1990 c 532 s 11,12 469.095 COMMISSIONERS; APPOINTMENT,TERMS,VACANCIES,PAY,REMOVAL. Subdivision 1. Commissioners. Except as provided in subdivision 2, paragraph (d), an economic development authority shall consist of either three,five, or seven commissioners who shall be appointed after the enabling resolution provided for in section 469.093 becomes effective. The resolution must indicate the number of commissioners constituting the authority. Subd. 2. Appointment,terms; vacancies. (a) Three-member authority: the commissioners constituting a three-member authority, one of whom must be a member of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of two, four, and six years, respectively. Thereafter all commissioners shall be appointed for six-year terms. (b)Five-member authority: the commissioners constituting a five-member authority,two of whom must be members of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of two, three, four, five, and six years respectively. Thereafter all commissioners shall be appointed for six-year terms. (c) Seven-member authority:the commissioners constituting a seven-member authority,two of whom must be members of the city council, shall be appointed by the mayor with the approval of the city council. Those initially appointed shall be appointed for terms of one, two, three, four, and five years respectively and two members for six years. Thereafter all commissioners ishall be appointed for six-year terms. (d)The enabling resolution may provide that the members of the city council shall serve as the commissioners. (e)The enabling resolution may provide for the appointment of members of the city council in excess of the number required in paragraphs (a), (b), and(c). (f)A vacancy is created in the membership of an authority when a city council member of the authority ends council membership. A vacancy for this or another reason must be filled for the balance of the unexpired term, in the manner in which the original appointment was made. The city council may set the term of the commissioners who are members of the city council to coincide with their term of office as members of the city council. Subd. 3. Increase in commission members.An authority may be increased from three to five or seven members, or from five to seven members by a resolution adopted by the city council following the procedure provided for modifying the enabling resolution in section 469.093. Subd. 4. Compensation and reimbursement. A commissioner, including the president, shall be paid for attending each regular or special meeting of the authority in an amount to be determined by the city council. In addition to receiving pay for meetings,the commissioners may be reimbursed for actual expenses incurred in doing official business of the authority. All money paid for compensation or reimbursement must be paid out of the authority's budget. Subd. 5. Removal for cause. A commissioner may be removed by the city council for inefficiency,neglect of duty, or misconduct in office. A commissioner shall be removed only after a hearing. A copy of the charges must be given to the commissioner at least ten days before the hearing. The commissioner must be given an opportunity to be heard in person or by counsel at Copyright 0 2011 by the Office of the Revisor of statutes,State of Minnesota.All Rights Reserved. 91 MINNESOTA STATUTES 2011 469.096 the hearing. When written charges have been submitted against a commissioner, the city council may temporarily suspend the commissioner. If the city council finds that those charges have not been substantiated, the commissioner shall be immediately reinstated. If a commissioner is removed, a record of the proceedings, together with the charges and findings, shall be filed in the office of the city clerk. History: 1987 c 291 s 96 469.096 OFFICERS; DUTIES; ORGANIZATIONAL MATTERS. Subdivision 1. Bylaws, rules,seal. An authority may adopt bylaws and rules of procedure and shall adopt an official seal. Subd. 2. Officers. An authority shall elect a president, a vice-president, a treasurer, a secretary, and an assistant treasurer. The authority shall elect the president,treasurer, and secretary annually. A commissioner must not serve as president and vice-president at the same time. The other offices may be held by the same commissioner. The offices of secretary and assistant treasurer need not be held by a commissioner. Subd. 3. Duties and powers. The officers have the usual duties and powers of their offices. They may be given other duties and powers by the authority. Subd. 4. Treasurer's duties. The treasurer: (1) shall receive and is responsible for authority money; (2) is responsible for the acts of the assistant treasurer; (3) shall disburse authority money by check only; (4) shall keep an account of the source of all receipts, and the nature, purpose, and authority of all disbursements; and (5) shall file the authority's detailed financial statement with its secretary at least once a year at times set by the authority. Subd. 5. Assistant treasurer. The assistant treasurer has the powers and duties of the treasurer if the treasurer is absent or disabled. Subd. 6. Treasurer's bond. The treasurer shall give bond to the state conditioned for the faithful discharge of official duties. The bond must be approved as to form and surety by the authority and filed with the secretary. The bond must be for twice the amount of money likely to be on hand at any one time, as determined at least annually by the authority provided that the bond must not exceed $300,000. Subd. 7. Public money. Authority money is public money. Subd. 8. Checks. An authority check must be signed by the treasurer and one other officer named by the authority in a resolution. The check must state the name of the payee and the nature of the claim that the check is issued for. Subd. 9. Financial statement. The authority's detailed financial statement must show all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the authority's credits and assets, and its outstanding liabilities in a form required for the city's financial statements. The authority shall examine the statement together with the treasurer's vouchers. If the authority finds that the statement and vouchers are correct, it Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 92 MINNESOTA STATUTES 2011 469.098 shall approve them by resolution and enter the resolution in its records. History: 1987 c 291 s 97 469.097 EMPLOYEES; SERVICES; SUPPLIES. Subdivision 1. Employees. An economic development authority may employ an executive director, a chief engineer, other technical experts and agents, and other employees as it may require, and determine their duties, qualifications, and compensation. Subd. 2. Contract for services. The authority may contract for the services of consultants, agents,public accountants, and other persons needed to perform its duties and exercise its powers. Subd. 3. Legal services. The authority may use the services of the city attorney or hire a general counsel for its legal needs. The city attorney or general counsel, as determined by the authority, is its chief legal advisor. Subd. 4. Supplies. The authority may purchase the supplies and materials it needs to carry out sections 469.090 to 469.108. Subd. 5. City purchasing. An authority may use the facilities of its city's purchasing department in connection with construction work and to purchase equipment, supplies, or materials. Subd. 6. City facilities, services. A city may furnish offices, structures and space, and stenographic, clerical, engineering, or other assistance to its authority. Subd. 7. Delegation power. The authority may delegate to one or more of its agents or employees powers or duties as it may deem proper. History: 1987 c 291 s 98 469.098 CONFLICT OF INTEREST. Subdivision 1. Disclosure; criminal penalty. (a) Before taking an action or making a decision which could substantially affect the 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 shall: (1)prepare a written statement describing the matter requiring action or decision and the nature of the potential conflict of interest; and (2) submit the statement to the commissioners of the authority. (b)The disclosure under paragraph(a) shall be entered upon the minutes of the authority at its next meeting. The disclosure statement must be submitted no later than one week after the employee or commissioner becomes aware of the potential conflict of interest. However, no disclosure statement is required if the effect on the commissioner or employee of the decision or act will be no greater than on other members of the business, profession, or occupation or if the effect on the organization with which the commissioner or employee is affiliated is indirect, remote, and insubstantial. (c) A potential conflict of interest is present if the commissioner or employee knows or has reason to know that the organization with which the commissioner or employee is affiliated 0 is, or is reasonably likely to become, a participant in a project or development which will be affected by the action or decision. Copyright 0 2011 by the Office of the Revisor of statutes,State of Minnesota.All Rights Reserved. 93 MINNESOTA STATUTES 2011 469.099 (d)Any individual who knowingly fails to submit a statement required by this subdivision or submits a statement which the individual knows contains false information or omits required information is guilty of a misdemeanor. Subd. 2. Effect of disclosure; criminal penalty. (a) If an employee has a potential conflict of interest,the employee's superior shall immediately assign the matter to another employee who does not have a potential conflict of interest. (b)A commissioner who has a potential conflict of interest shall not attempt to influence an employee in any matter related to the action or decision in question, shall not take part in the action or decision, and shall not be counted toward a quorum during the portion of any meeting of the authority in which the action or decision is to be considered. (c)Any individual who knowingly violates this subdivision is guilty of a misdemeanor. Subd. 3. Conflicts forbidden; criminal penalty. A commissioner or employee of an authority who knowingly takes part in any manner in making any sale, lease, or contract in the commissioner's or employee's official capacity in which the commissioner or employee has a personal financial interest is guilty of a misdemeanor. Subd.4. Agent or attorney.For one year after termination of a position as a commissioner or employee of an authority, no former commissioner or former employee of an authority shall appear personally before any court or governmental department or agency as agent or attorney for anyone other than the authority in connection with any proceeding, application,request for ruling or other determination, contract, claim, controversy, charge, accusation, arrest, or other particular matter in which the authority is substantially interested, and with respect to which the commissioner or employee took any action or made any decision as a commissioner or employee of the authority at any time within a period of one year prior to the termination of that position. Subd. 5. Limitations. With respect to each program established by the authority to provide financial assistance or financing for real property other than rental assistance programs, an employee or commissioner may not receive such financial assistance or financing more than once. Subd. 6. Injunction. The county attorney may seek an injunction in the district court to enforce the provisions of this section. Subd. 7. Exceptions. The exceptions in section 471.88 apply to this section. History: 1987 c 291 s 99; 2008 c 197 s 1 469.099 DEPOSITORIES; DEFAULT; COLLATERAL. Subdivision 1. Named; bond. Every two years an authority shall name national or state banks within the state as depositories. Before acting as a depository, a named bank shall give the authority a bond approved as to form and surety by the authority. The bond must be conditioned for the safekeeping and prompt repayment of deposits. The amount of bond must be at least equal to the maximum sums expected to be deposited at any one time. Subd. 2. One bank account. An authority may deposit all its money from any source in one bank account. Subd. 3. Default; collateral. When authority funds are deposited by the treasurer in a bonded depository,the treasurer and the surety on the treasurer's official bond are exempt from liability for the loss of the deposits because of the failure,bankruptcy,or other act or default of the depository. However, an authority may accept assignments of collateral from its depository to Copyright C 2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 94 MINNESOTA STATUTES 2011 469.101 secure J deposits just as assignments of collateral are permitted by law to secure deposits of the p g authority's city. History: 1987 c 291 s 100 469.100 OBLIGATIONS. Subdivision 1. Taxes and assessments prohibited. An authority must not levy a tax or special assessment,except as otherwise provided in sections 469.090 to 469.108,pledge the credit of the state or the state's municipal corporations or other subdivisions, or incur an obligation enforceable on property not owned by the authority. Subd. 2. Budget to city.Annually, at a time fixed by charter,resolution,or ordinance of the city, an authority shall send its budget to its city's council. The budget must include a detailed written estimate of the amount of money that the authority expects to need from the city to do authority business during the next fiscal year. The needed amount is what is needed in excess of any expected receipts from other sources. Subd. 3. Fiscal year. The fiscal year of the authority must be the same as the fiscal year of its city. Subd.4. Report to city. Annually, at a time and in a form fixed by the city council,the authority shall make a written report to the council giving a detailed account of its activities and of its receipts and expenditures during the preceding calendar year,together with additional matters and recommendations it deems advisable for the economic development of the city. Subd. 5. Audits. The financial statements of the authority must be prepared, audited, filed, and published or posted in the manner required for the financial statements of the city that established the authority. The financial statements must permit comparison and reconciliation with the city's accounts and financial reports. The report must be filed with the state auditor by June 30 of each year. The auditor shall review the report and may accept it or, in the public interest, audit the books of the authority. Subd. 6. Compliance examinations. At the request of the city or upon the auditor's initiative, the state auditor may make a legal compliance examination of the authority for that city. Each authority examined must pay the total cost of the examination, including the salaries paid to the examiners while actually engaged in making the examination. The state auditor may bill monthly or at the completion of the audit. All collections received must be deposited in the general fund. History: 1987 c 291 s 101; 1989 c 335 art 4 s 88 469.101 POWERS. Subdivision 1. Establishment.An economic development authority may create and define the boundaries of economic development districts at any place or places within the city, except that the district boundaries must be contiguous, and may use the powers granted in sections 469.090 to 469.108 to carry out its purposes. First the authority must hold a public hearing on the matter. At least ten days before the hearing,the authority shall publish notice of the hearing in a daily newspaper of general circulation in the city. Also,the authority shall find that an economic development district is proper and desirable to establish and develop within the city. Subd. 2. Acquire property. The economic development authority may acquire by lease, Is purchase,gift,devise,or condemnation proceedings the needed right,title,and interest in property Copyright 0 2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 95 MINNESOTA STATUTES 2011 469.101 to create economic development districts. It shall pay for the property out of money it receives under sections 469.090 to 469.108. It may hold and dispose of the property subject to the limits and conditions in sections 469.090 to 469.108. The title to property acquired by condemnation or purchase must be in fee simple, absolute. The authority may accept an interest in property acquired in another way subject to any condition of the grantor or donor. The condition must be consistent with the proper use of the property under sections 469.090 to 469.108. Property acquired, owned, leased, controlled, used, or occupied by the authority for any of the purposes of this section is for public governmental and municipal purposes and is exempt from taxation by the state or by its political subdivisions, except to the extent that the property is subject to the sales and use tax under chapter 297A. The exemption applies only while the authority holds property for its own purpose. The exemption is subject to the provisions of section 272.02, subdivision 39. When the property is sold it becomes subject to taxation. Subd. 3. Options. The economic development authority may sign options to purchase, sell, or lease property. Subd. 4. Eminent domain. The economic development authority may exercise the power of eminent domain under chapter 117, or under its city's charter to acquire property it is authorized to acquire by condemnation. The authority may acquire in this way property acquired by its owner by eminent domain or property already devoted to a public use only if its city's council approves. The authority may take possession of property to be condemned after it files a petition in condemnation proceedings describing the property. The authority may abandon the condemnation before taking possession. Subd. 5. Contracts. The economic development authority may make contracts for the purpose of economic development within the powers given it in sections 469.090 to 469.108. The authority may contract or arrange with the federal government, or any of its departments, with persons, public corporations,the state, or any of its political subdivisions, commissions, or agencies, for separate or joint action, on any matter related to using the authority's powers or performing its duties. The authority may contract to purchase and sell real and personal property. An obligation or expense must not be incurred unless existing appropriations together with the reasonably expected revenue of the authority from other sources are sufficient to discharge the obligation or pay the expense when due. The state and its municipal subdivisions are not liable on the obligations. Subd. 5a. Construction contracts. For all contracts for construction, alteration, repair,or maintenance work,the authority may award contracts to the vendor offering the best value, and "best value" shall be defined and applied as set forth in sections 16C.02, subdivision 4a, and 16C.28, subdivision 1, paragraph(a), clause (2), and paragraph(c). Alternatively,the authority may award all contracts for construction, alteration, repair, or maintenance work to the lowest responsible bidder, reserving the right to reject any or all bids. Subd. 6. Limited partner. The economic development authority may be a limited partner in a partnership whose purpose is consistent with the authority's purpose. Subd. 7.Rights; easements.The economic development authority may acquire rights or an easement for a term of years or perpetually for development of an economic development district. Subd. 8. Supplies; materials. The economic development authority may buy the supplies and materials it needs to carry out this section. Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 96 MINNESOTA STATUTES 2011 469.101 Subd. 9. Receive public property. The economic development authority may accept land, money, or other assistance,whether by gift, loan or otherwise, in any form from the federal or state government, or an agency of either, or a local subdivision of state government to carry out sections 469.090 to 469.108 and to acquire and develop an economic development district and its facilities under this section. Subd. 10. Development district authority. The economic development authority may sell or lease land held by it for economic development in economic development districts. The authority may acquire, sell, or lease single or multiple tracts of land regardless of size, to be developed as a part of the economic development of the district under sections 469.090 to 469.108. Subd. 11. Foreign trade zone. The economic development authority may apply to the board defined in United States Code,title 19, section 81 a, for the right to use the powers provided in United States Code,title 19, sections 81a to 81u. If the right is granted,the authority may use the powers. One authority may apply with another authority. Subd. 12. Relation to other redevelopment powers.The economic development authority may exercise powers and duties of a redevelopment agency under sections 469.152 to 469.165, for a purpose in sections 469.001 to 469.047 or 469.090 to 469.108. The authority may also use the powers and duties in sections 469.001 to 469.047 and 469.090 to 469.108 for a purpose in sections 469.152 to 469.165. Subd. 13. Public facilities. The authority may operate and maintain a public parking facility or other public facility to promote development in an economic development district. Subd. 14. Government agent.An economic development authority may cooperate with or act as agent for the federal or the state government, or a state public body, or an agency or instrumentality of a government or a public body to carry out sections 469.090 to 469.108 or any other related federal, state,or local law in the area of economic development district improvement. Subd. 15. Studies, analysis, research. An authority may study and analyze economic development needs in the city, and ways to meet the needs. An authority may study the desirable patterns for land use for economic development and community growth and other factors affecting local economic development in the city and make the result of the studies available to the public and to industry in general. An authority may engage in research and disseminate information on economic development within the city. Subd. 16. Public relations. To further an authorized purpose, an authority may (1)join an official, industrial, commercial, or trade association, or another organization concerned with the purpose, (2)have a reception of officials who may contribute to advancing the city and its economic development, and(3) carry out other public relations activities to promote the city and its economic development. Activities under this subdivision have a public purpose. Subd. 17. Accept public land. An authority may accept conveyances of land from all other public agencies, commissions, or other units of government, if the land can be properly used by the authority in an economic development district, to carry out the purposes of sections 469.090 to 469.108. Subd. 18. Economic development. An authority may carry out the law on economic development districts to develop and improve the lands in an economic development district to make it suitable and available for economic development uses and purposes. An authority may fill, grade, and protect the property and do anything necessary and expedient, after acquiring the Copyright©2011 by the Office of the Revisor of statutes,State of Minnesota.All Rights Reserved. 97 MINNESOTA STATUTES 2011 469.101 property,to make it suitable and attractive as a tract for economic development. An authority may lease some or all of its lands or property and may set up local improvement districts in all or part of an economic development district. Subd. 19. Loans in anticipation of bonds. After authorizing bonds under sections 469.102 and 469.103, an authority may borrow to provide money immediately required for the bond purpose. The loans must not exceed the amount of the bonds. The authority shall by resolution decide the terms of the loans. The loans must be evidenced by negotiable notes due in not more than 12 months from the date of the loan payable to the order of the lender or to bearer, to be repaid with interest from the proceeds of the bonds when the bonds are issued and delivered to the bond purchasers. The loan must not be obtained from any commissioner of the authority or from any corporation, association, or other institution of which an authority commissioner is a stockholder or officer. Subd.20.Use of proceeds.The proceeds of obligations issued by an authority under section 469.103 and temporary loans obtained under subdivision 19 may be used to make or purchase loans for economic development facilities that the authority believes will require financing. To make or purchase the loans,the authority may enter into loan and related agreements, both before and after issuing the obligations, with persons, firms, public or private corporations, federal or state agencies, and governmental units under terms and conditions the authority considers appropriate. A governmental unit in the state may apply, contract for, and receive the loans. Chapter 475 does not apply to the loans. Subd. 21. [Repealed, 2000 c 490 art 11 s 441 Subd. 22. Secondary market.An authority may sell,at private or public sale, at the price or prices determined by the authority, any note, mortgage, lease, sublease, lease purchase, or other instrument or obligation evidencing or securing a loan made for the purpose of economic development,job creation, redevelopment, or community revitalization by a public agency to a business, for-profit or nonprofit organization, or an individual. Subd. 23. Supplying small business capital.Notwithstanding any contrary law, the authority may participate with public or private corporations or other entities,whose purpose is to provide seed or venture capital to small businesses that have facilities located or to be located in the district. For that purpose the authority may use not more than ten percent of available annual net income or$1,000,000 annually,whichever is less, to invest in equities or acquire equity-type investments. These investments can be made directly in eligible corporations or entities or acquired through participation in a public or private seed or venture capital fund. The participation by the authority may not exceed in any year 25 percent of the total amount of ici ants. The corporation, oration purposes b all of the art rp , r r seed capital u p funds provided for venture o p p rp Y P entity, or fund shall report in writing each six months to the commissioners of the authority all investments and other action taken by it since the last report. Funds contributed to the corporation or entity must be invested pro rata with each contributor of capital taking proportional risks on each investment. As used in this subdivision,the term "small business" has the meaning given it in section 645.445, subdivision 2. History: 1987 c 291 s 102; 1988 c 580 s 5; 1991 c 295 s 2; 1992 c 363 art I s 13; 2000 c 418 art 2s7; 2006c214s20; 2007 c 148 art 3 s 30; 2010 c 389 art 7 s 5 Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 98 MINNESOTA STATUTES 2011 469.102 469.102 GENERAL OBLIGATION BONDS. Subdivision 1. Authority; procedure. An economic development authority may issue general obligation bonds in the principal amount authorized by two-thirds majority vote of its city's council. The bonds may be issued in anticipation of income from any source. The bonds may be issued: (1)to secure funds needed by the authority to pay for acquired property or(2)for other purposes in sections 469.090 to 469.108. The bonds must be in the amount and form and bear interest at the rate set by the city council. Except as otherwise provided in sections 469.090 to 469.108,the issuance of the bonds is governed by chapter 475. The authority when issuing the bonds is a municipal corporation under chapter 475. Subd. 2. Detail; maturity. The authority with the consent of its city's council shall set the date, denominations,place of payment, form, and details of the bonds. The bonds must mature serially. The first installment is due in not more than three years and the last in not more than 30 years from the date of issuance. Subd. 3. Signatures; coupons; liability. The bonds must be signed by the president of the authority,be attested by its secretary, and be countersigned by its treasurer;the signatures may be facsimile signatures. The interest coupons if any, must be attached to the bonds. The coupons must be executed and authenticated by the printed, engrossed, or lithographed facsimile signature of the authority's president and secretary. The bonds do not impose any personal liability on a member of the authority. Subd. 4. Pledge. The bonds must be secured by the pledge of the full faith, credit, and resources of the issuing authority's city. The authority may pledge the full faith, credit, and resources of the city only if the city specifically authorizes the authority to do so. The city council must first decide whether the issuance of the bonds by the authority is proper in each case and if so,the amount of bonds to issue.The city council shall give specific consent in an ordinance to the pledge of the city's full faith, credit, and resources. The authority shall pay the principal amount of the bonds and the interest on it from taxes levied under this section to make the payment or from authority income from any source. Subd. 5. Tax levy. An authority that issues bonds under this section, shall,before issuing them, levy a tax for each year on the taxable property in the authority's city. The tax must be for at least five percent more than the amount required to pay the principal and interest on the bonds as the principal and interest mature. The tax must be levied annually until the principal and interest are paid in full. After the bonds have been delivered to the purchasers,the tax must not be repealed until the debt is paid. After the bonds are issued,the authority need not take any more action to authorize extending, assessing, and collecting the tax. On or before September 15,the authority's secretary shall send a certified copy of the levy to the county auditor,together with full information on the bonds for which the tax is levied. The county auditor shall extend and assess the levied tax annually until the principal and interest are paid in full. The authority shall transfer the surplus from the excess levy in this section to a sinking fund after the principal and interest for which the tax was levied and collected is paid.The authority may direct its secretary to send a certificate to the county auditor before September 15 in a year. The certificate must state how much available income, including the amount in the sinking fund,the authority will use to pay principal or interest or both on each specified issue of the authority's bonds.The auditor shall then reduce the bond levy for that year by that amount. The authority shall then set aside the certified amount and may not use it for any purpose except to pay the principal and interest on the bonds. The taxes in this section shall be collected and sent to the authority by the county treasurer as Copyright 0 2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 99 MINNESOTA STATUTES 2011 469.103 provided in chapter 276. The taxes must be used only to pay the bonds when due. Subd. 6. Authorized securities. Bonds legally issued under this chapter are authorized securities under section 50.14. A savings bank,trust company, or insurance company may invest in them.A public or municipal corporation may invest its sinking funds in them. The bonds may be pledged by a bank or trust company as security for the deposit of public money in place of a surety bond. The authority's bonds are instrumentalities of a public governmental agency. History: 1987 c 291 s 103; 1994 c 416 art I s 49; 1995 c 256 s 9; 2002 c 390 s 8 469.103 REVENUE BONDS; PLEDGE; COVENANTS. Subdivision 1. Authority. An economic development authority may decide by resolution to issue its revenue bonds either at one time or in series from time to time. The revenue bonds may be issued to provide money to pay to acquire land needed to operate the authority,to purchase or construct facilities,to purchase,construct, install,or furnish capital equipment to operate a facility for economic development of any kind within the city, or to pay to extend, enlarge, or improve a project under its control. The issued bonds may include the amount the authority considers necessary to establish an initial reserve to pay principal and interest on the bonds. The authority shall state in a resolution how the bonds and their attached interest coupons are to be executed. Subd. 2. Form. The bonds of each series issued by the authority under this section shall bear interest at a rate or rates, shall mature at the time or times within 30 years from the date of issuance, and shall be in the form,whether payable to bearer, registrable as to principal, or fully registrable, as determined by the authority. Section 469.102, subdivision 6, applies to all bonds issued under this section, and the bonds and their coupons, if any,when payable to bearer, shall be negotiable instruments. Subd. 3. Sale.The sale of revenue bonds issued by the authority shall be at public or private sale. The bonds may be sold in the manner and for the price that the authority determines to be for the best interest of the authority. The bonds may be made callable, and if so issued, may be refunded. Subd. 4. Agreements. The authority may by resolution make an agreement or covenant with the bondholders or their trustee. The authority must first decide that the agreement or covenant is needed or desirable to do what the authority may do under this section and to assure that the revenue bonds are marketable and promptly paid. Subd. 5. Revenue pledge. In issuing general obligation or revenue bonds, the authority may secure the payment of the principal and the interest on the bonds by a pledge of and lien on authority revenue. The revenue must come from the facility to be acquired, constructed, or improved with the bond proceeds or from other facilities named in the bond-authorizing resolutions. The authority also may secure the payment with its promise to impose, maintain, and collect enough rentals,rates, and charges, for the use and occupancy of the facilities and for services furnished in connection with the use and occupancy, to pay its current expenses to operate and maintain the named facilities, and to produce and deposit sufficient net revenue in a special fund to meet the interest and principal requirements of the bonds, and to collect and keep any more money required by the resolutions. The authority shall decide what constitutes "current expense" under this subdivision based on what is normal and reasonable under generally accepted accounting principles. Revenues pledged by the authority must not be used or pledged Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 100 MINNESOTA STATUTES 2011 469.105 for any other authority purpose or to pay any other bonds issued under this section or under section 469.102, unless the other use or pledge is specifically authorized in the bond-authorizing resolutions. Subd. 6. Not city debt. Revenue bonds issued under this section are not a debt of the authority's city nor a pledge of that city's full faith and credit. The bonds are payable only from project revenue as described in this section. A revenue bond must contain on its face a statement to the effect that the economic development authority and its city do not have to pay the bond or the interest on it except from revenue and that the faith, credit, and taxing power of the city are not pledged to pay the principal of or the interest on the bond. Subd. 7. Not applicable. Sections 469.153, subdivision 2, paragraph (e), and 469.154, subdivisions 3, 4, and 5 do not apply to revenue bonds issued under this section and sections 469.152 to 469.165 if the interest on the revenue bonds is subject to both state and federal income tax or if the revenue bond proceeds are not loaned by the authority to a private person. Subd. 8. Tax increment bonds. Obligations secured or payable from tax increment revenues and issued pursuant to this section or section 469.102 are subject to the provisions of section 469.178. History: 1987 c 291 s 104; 2006 c 259 art 9 s 8 469.104 SECTIONS THAT APPLY IF FEDERAL LIMIT APPLIES. Sections 474A.01 to 474A.21 apply to obligations issued under sections 469.090 to 469.108 that are limited by federal tax law as defined in section 474A.02, subdivision 8. History: 1987 c 291 s 105; 2005 c 10 art 1 s 71 469.105 SALE OF PROPERTY. Subdivision 1. Power.An economic development authority may sell and convey property owned by it within the city or an economic development district if it determines that the sale and conveyance are in the best interests of the city or district and its people, and that the transaction furthers its general plan of economic development. This section is not limited by other law on powers of economic development authorities. Subd. 2. Notice; hearing.An authority shall hold a hearing on the sale. At the hearing a taxpayer may testify for or against the sale. At least ten, but not more than 20, days before the hearing the authority shall publish notice of the hearing on the proposed sale in a newspaper. The newspaper must be published and have general circulation in the authority's county and city.The notice must describe the property to be sold and state the time and place of the hearing.The notice must also state that the public may see the terms and conditions of the sale at the authority's office and that at the hearing the authority will meet to decide if the sale is advisable. Subd. 3. Decision; appeal. The authority shall make its findings and decision on whether the sale is advisable and enter its decision on its records within 30 days of the hearing.A taxpayer may appeal the decision by filing a notice of appeal with the district court in the city or economic development district's county and serving the notice on the secretary of the authority, within 20 days after the decision is entered. The only ground for appeal is that the action of the authority was arbitrary, capricious, or contrary to law. Subd. 4. Terms. The terms and conditions of sale of the property must include the use that the bidder will be allowed to make of it. The authority may require the purchaser to file security Copyright©2011 by the Office of the Revisor of statutes,State of Minnesota.All Rights Reserved. 101 MINNESOTA STATUTES 2011 469.106 to assure that the property will be given that use. In deciding the sale terms and conditions the authority may consider the nature of the proposed use and the relation of the use to the improvement of the authority's city and the business and the facilities of the authority in general. The sale must be made on the authority's terms and conditions. The authority may publish an advertisement for bids on the property at the same time and in the same manner as the notice of hearing required in this section. The authority may award the sale to the bid considered by it to be most favorable considering the price and the specified intended use. The authority may also sell the property at private sale at a negotiated price if after its hearing the authority considers that sale to be in the public interest and to further the aims and purposes of sections 469.090 to 469.108. Subd. 5. One-year deadline. Within one year from the date of purchase,the purchaser shall devote the property to its intended use or begin work on the improvements to the property to devote it to that use. If the purchaser fails to do so,the authority may cancel the sale and title to the property shall return to it. The authority may extend the time to comply with a condition if the purchaser has good cause. The terms of sale may contain other provisions that the authority considers necessary and proper to protect the public interest. A purchaser must not transfer title to the property within one year of purchase without the consent of the authority. Subd.6. Covenant running with the land.A sale made under this section must incorporate in the deed as a covenant running with the land the conditions of sections 469.090 to 469.108 relating to the use of the land. If the covenant is violated the authority may declare a breach of the covenant and seek a judicial decree from the district court declaring a forfeiture and a cancellation of the deed. Subd. 7. Plans; specifications.A conveyance must not be made until the purchaser gives the authority plans and specifications to develop the property sold. The authority must approve the plans and specifications in writing. The authority may require preparation of final plans and specifications before the hearing on the sale. History: 1987 c 291 s 106 469.106 ADVANCES BY AUTHORITY. An authority may advance its general fund money or its credit, or both, without interest, for the objects and purposes of sections 469.090 to 469.108. The advances must be repaid from the sale or lease, or both, of developed or redeveloped lands. If the money advanced for the development or redevelopment was obtained from the sale of the authority's general obligation bonds,then the advances must have not less than the average annual interest rate that is on the authority's general obligation bonds that are outstanding at the time the advances are made. The authority may advance repaid money for more objects and purposes of sections 469.090 to 469.108 subject to repayment in the same manner. The authority must still use rentals of lands acquired with advanced money to collect and maintain reserves to secure the payment of principal and interest on revenue bonds issued to finance economic development facilities, if the rentals have been pledged for that purpose under section 469.103.Advances made to acquire lands and to construct facilities for recreation purposes if authorized by law need not be reimbursed under this section. Sections 469.090 to 469.108 do not exempt lands leased from the authority to a private person, or entity from assessments or taxes against the leased property while the lessee is liable for the assessments or taxes under the lease. History: 1987 c 291 s 107 Copyright 0 2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 102 MINNESOTA STATUTES 2011 469.1081 469.107 CITY MAY LEVY TAXES FOR ECONOMIC DEVELOPMENT AUTHORITY. Subdivision 1. City tax levy. A city may, at the request of the authority, levy a tax in any year for the benefit of the authority. The tax must be not more than 0.01813 percent of taxable market value. The amount levied must be paid by the city treasurer to the treasurer of the authority, to be spent by the authority. Subd. 2. Reverse referendum. A city may increase its levy for economic development authority purposes under subdivision 1 in the following way. Its city council must first pass a resolution stating the proposed amount of levy increase. The city must then publish the resolution together with a notice of public hearing on the resolution for two successive weeks in its official newspaper or if none exists in a newspaper of general circulation in the city. The hearing must be held two to four weeks after the first publication. After the hearing, the city council may decide to take no action or may adopt a resolution authorizing the proposed increase or a lesser increase.A resolution authorizing an increase must be published in the city's official newspaper or if none exists in a newspaper of general circulation in the city. The resolution is not effective if a petition requesting a referendum on the resolution is filed with the city clerk within 30 days of publication of the resolution. The petition must be signed by voters equaling five percent of the votes cast in the city in the last general election. The election must be held at a general or special election.Notice of the election must be given in the manner required by law. The notice must state the purpose and amount of the levy. History: 1987 c 291 s 108; 1988 c 719 art S s 84; 1989 c 277 art 4 s 64; 1992 c 511 art S s 13 469.108 SPECIAL LAW; OPTIONAL USE. A city that has established a port authority by special law or that has been granted the power to establish a port authority by special law,or a city whose city council has been authorized to exercise the powers of a port authority by special law may elect to use the powers granted in sections 469.090 to 469.108. If the election is made,the powers and duties set forth in sections 469.090 to 469.108 supersede the special law and the special law must not be used after the election. The use of powers under sections 469.090 to 469.108 by a city described in this section does not impair the security of any obligations issued or contracts or agreements executed under the special law. Control,authority,and operation of any project may be transferred to the authority in the manner provided in section 469.094. History: 1987 c 291 s 109 469.1081 LIABLE IN CONTRACT OR TORT. Subject to the provisions of chapter 466, an authority shall be liable in contract or in tort in the same manner as a private corporation. The commissioners of an authority shall not be personally liable as such on its contracts, or for torts, not committed or directly authorized by them. The property or funds of an authority shall not be subject to attachment, or to levy and sale on execution, but, if an authority refuses to pay a judgment entered against it in any court of competent jurisdiction, the district court for the county in which the authority is situated may, by writ of mandamus, direct the treasurer of the authority to pay the judgment from any unencumbered funds available for that purpose. History: 1991 c 342 s 13 Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 103 MINNESOTA STATUTES 2011 469.1082 469.1082 COUNTY ECONOMIC DEVELOPMENT AUTHORITY OR HOUSING AND REDEVELOPMENT AUTHORITY WITH ECONOMIC DEVELOPMENT POWERS. Subdivision 1. Authority to create. A county may form a county economic development authority or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2), if it receives a recommendation to do so from a committee formed under subdivision 2. An economic development authority established under this section has all the powers and rights of an authority under sections 469.090 to 469.1081, except the authority granted under section 469.094 if so limited under subdivision 4. This section is in addition to any other authority to create a county economic development authority or service provider. Nothing in this section shall alter or impair any grant of powers, or any other authority granted to a community development agency, a county housing and redevelopment authority, or any county as provided in section 383D.41; Laws 1974, chapter 473, as amended; or Laws 1980, chapter 482, as amended. Any county that has granted economic development powers to a community development agency or a county housing and redevelopment authority under any of these provisions may not form a county economic development authority or grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2). Subd. 2. Local committees. Upon notice to all local government units and development agencies within the county, a county may adopt a resolution to create a committee to recommend options for a county economic development service provider. The committee shall consist of no fewer than 11 and no more than 15 members appointed by the county board. At least one city official, at least one housing and redevelopment official, and at least one township official from the county to be served by the county economic service provider shall be included on the committee. Members may also represent school districts, political subdivisions that currently provide services under sections 469.001 to 469.047 and 469.090 to 469.108 1, nonprofit or for-profit housing and economic development organizations, business, and labor organizations located within the county. Political subdivision representatives must be selected by their local governments and must constitute at least 50 percent of the total committee membership. The county may appoint no more than two county commissioners. The committee shall select a chair at its initial meeting. Subd. 3. Committee report. The committee shall issue its report within 90 days of its initial meeting. The committee may request one 60-day extension from the county board. The report must contain the committee's recommendation for the preferred organizational option for a county economic development service provider, including the distance from the boundary of the city that may be controlled by each affected city in subdivision 5. The distance may not exceed two miles from the city boundary. The report must contain written findings on issues considered by the committee including, but not limited to,the following: (1) identification of the current level of economic development, housing, and community development programs and services provided by existing agencies,any existing gaps in programs and services,and the capacity and ability of those agencies to expand their activities; and (2)the recommended organizational option for providing needed economic development, housing, and community development services in the most efficient, effective manner. Subd. 4. Organizational options. The committee may only recommend: (1) establishment of a county economic development authority to operate under sections 469.090 to 469.108 1, except that the county shall not have the powers of section 469.094 without Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. 104 MINNESOTA STATUTES 2011 469.1082 the consent of an existing county housing and redevelopment authority operating within that county. For the purposes of a county economic development authority's operation,the county is considered to be the city and the county board is considered to be the city council; (2) requiring an existing county housing and redevelopment authority or multicounty housing and redevelopment authority to operate under sections 469.090 to 469.1081; (3)that the county pursue special legislation; or (4) no change in the existing structure. Subd. 5. Area of operation. The area of operation of a county economic development service provider created under this section shall include all cities and townships within a county that have adopted resolutions electing to participate. A city or township may adopt a resolution electing to withdraw participation. The withdrawal election may be made every fifth year following adoption of the resolution electing participation. The withdrawal election is effective on the anniversary date of the original resolution provided notice is given to the county economic development authority not less than 90 nor more than 180 days prior to that anniversary date.The city or township electing to withdraw retains any rights, obligations, and liabilities it obtained or incurred during its participation. Any city or township within the county shall have the option to adopt a resolution to prohibit the county economic development service provider created under this section from operating within its boundaries and (1)within an agreed-upon urban service area, or(2)within the distance approved in the committee report referenced in subdivision 3. If a city or township prohibits a county economic development service provider created under this section from operating within its boundaries,the city's or township's property taxpayers shall not be subject to the property tax levied for the county economic development service provider. Subd. 6. City economic development authorities. If a county economic development service provider has been established under this section, existing city economic development authorities shall continue to function and operate under sections 469.090 to 469.1081. Additional city economic development authorities may be created within the area of operation of the county economic development service provider created under this section without the explicit concurrence of the county economic development service provider. Subd. 7. Continuation of existing county and multicounty housing and redevelopment authorities. Existing county and multicounty housing and redevelopment authorities shall continue to function and operate under the provisions of sections 469.001 to 469.047. Subd. 8. Nine-member boards authorized. In addition to the board options under section 469.095, a county economic development authority may have a nine-member board. If the authority has a nine-member board, at least two members must be county commissioners appointed by the county board. Of the county economic development authority board members initially appointed,two each shall be appointed for terms of one,two, or three years,respectively, and one each for terms of four, five,or six years,respectively. Thereafter, all authority members shall be appointed for six-year terms. History: 2000 c 484 art 1 s 4; ISp2005 c 1 art 4 .s 106; ISp2005 c 3 art 7 s 10; 2010 c 347 art I s 25 i Copyright©2011 by the Office of the Revisor of Statutes,State of Minnesota.All Rights Reserved. City of Arden Hills Economic Development Authority Fund Summary Special Revenue Funds Actual Actual Budget Amended Actual Proposed Adopted °k Change FY 2009 FY 2010 FY 2011 FY 2011 9130/2011 FY 2012 FY 2012 11 vs 12 Operating Revenue EDA General Fund $ 18,512 $ 36,201 $ 9,100 $ 9,100 $ 22,993 $ 35,250 $ 287.36% EDA TIF Dist#3 Cottage Villas 38,540 40,672 32,000 32,000 23,345 40,500 26.56% EDA Revolving Fund 3,998 3,392 2,500 2,500 2,356 2,500 0.00% EDA TIF Dist#2 Round Lake 510,799 511,739 460,000 460,000 241,093 508,500 10.54% Operating Revenues 571,849 592,004 503,600 503,600 289,787 586,750 16.51% Other Financing Sources EDA General Fund 15,000 12,600 12,600 12,600 65,000 415.87% Other Financing Sources 15,000 12,600 12,600 12,600 - 65,000 415.87% Total Revenues $ 586,849 $ 604,604 $ 516,200 $ 616,200 $ 289,787 $ 651,750 $ 26.26% Operatina Expenses EDA General Fund $ 2,184 $ 545 $ 12,000 $ 12,000 $ 2,862 $ 64,397 436.64% EDA TIF Dist#3 Cottage Villas 45,547 1,673 4,000 4,000 1,310 4,000 0.00% EDA Revolving Fund - - - 0.00% EDA TIF Dist#2 Round Lake 591 1,094 1,300 1,300 1,310 1,300 0.00% Operating Expenses 48,321 3,312 17,300 17,300 5,483 69,697 302.87% Capital Outlay EDA General Fund 15,000 15,000 65,000 333.33% Total Capital Outlay - - 15,000 15,000 65,000 333.33% Other Finance Uses EDA TIF Dist#2 Round Lake 280,100 281 525 284,375 284,375 286 698 0.82% Other Financing Uses 280,100 281,525 284,375 284,375 286,698 0.82% Total Expenditures $ 328,421 $ 284,637 $ 316,675 $ 316,675 $ 5,483 $ 421,395 $ 33.07% Fund Balances-January 1 1,009,965 1,268,393 1,588,160 1,588,160 1,588,160 1,787,685 Excess Revenue Over Expenditure 258,428 319 768 199 525 199 525 284 304 230,355 Fund Balances-December 31 $ 1,268,393 $ 1,588,160 $ 1,787,685 $ 1,787,685 $ 1,872,465 $ 2,018,040 $ - City of Arden Hills 2012 Budget Function:Economic Development Department: EDA General Fund Appropriation Detail Actual Actual Budget Amended Projected Proposed Adopted %Change Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12 Revenues Taxes 18,218 35,250 9,100 9,100 21,814 35,250 287.36% Intergovernmental - - - - - - - 0.00% Miscellaneous 294 951 - - 1,179 - - 0.00% Other Financing Sources 15,000 12,600 12,600 12,600 65,000 415.87% Total Revenues $ 33,512 $ 48,801 $ 21,700 $ 21,700 $ 22,993 $ 100,250 $ - 361.98% Expenditures Total Personal Services - - - - - 41,638 0.00% Total Materials and Supplies 977 - 3,000 3,000 210 3,000 0.00% Other Service Charges 1,207 545 9,000 9,000 2,652 19,759 119.55% Capital Outlay 15,000 15,000 65,000 333.33% Total Expenditures $ 2,184 $ 545 $ 27,000 $ 27,000 $ 2,862 $ 129,397 $ 379.25% Fund Balance-January 1 16,012 47,340 95,597 95,597 95,597 90,297 Excess Revenue Over Expenditure 31,328 48,257 (5,300) (5,300) 20,131 (29,147) Fund Balance-December 31 $ 47,340 $ 95,597 $ 90,297 $ 90,297 $ 115,727 $ 61,149 $ • City of Arden Hills 2012 Budget Function:Economic Development Department: EDA TIF District#3 Cottage Villas Appropriation Detail Actual Actual Budget Amended Projected Proposed Adopted %Change Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12 Revenues Taxes 35,627 38,363 30,000 30,000 21,246 38,500 28.33% Intergovernmental 65 64 - - - - 0.00% Miscellaneous 2,849 2,245 2,000 2,000 2,099 2,000 0.00% Total Revenues $ 38,540 $ 40,672 $ 32,000 $ 32,000 $ 23,345 $ 40,500 $ 26.56% Expenditures Other Services and Charges 45,547 1,673 4,000 4,000 1,310 4,000 0.00% Total Expenditures $ 45,547 $ 1,673 $ 4,000 $ 4,000 $ 1,310 $ 4,000 $ 0.00% Fund Balance-January 1 80,220 73,214 112,213 112,213 112,213 140,213 Excess Revenue Over Expenditure (7,006) 38,999 28,000 28,000 22,035 36,500 Fund Balance-December 31 $ 73,214 $ 112,213 $ 140,213 $ 140,213 $ 134,248 $ 176,713 $ II City of Arden Hills 2012 Budget Function:Economic Development Department: EDA Revolving Fund Appropriation Detail — Actual Actual Budget Amended Projected Proposed Adopted %Change Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12 Revenues Total Miscellaneous 3,998 3,392 2,500 2,500 2,356 2,500 0.00% Total Revenues $ 3,998 $ 3,392 $ 2,500 $ 2,500 $ 2,356 $ 2,500 $ 0.00% Fund Balance-January 1 140,596 144,594 147,986 147,986 147,986 150,486 Excess Revenue Over Expenditure 3,998 3,392 2,500 2,500 2,356 2,500 Fund Balance-December 31 $ 144,594 $ 147,986 $ 150,486 $ 150,486 $ 150,342 $ 152,986 $ • City of Arden Hills 2012 Budget _Function: Economic Development Department: EDA TIF District#2 Round Lake Office Park Appropriation Detail Actual Actual Budget Amended Projected Proposed Adopted %Change Activity FY 2009 FY 2010 FY 2011 FY 2011 9/30/2011 FY 2012 FY 2012 11 vs 12 Revenue Taxes 486,563 493,112 450,000 450,000 221,129 493,500 9.67% Miscellaneous 24,237 18,627 10,000 10,000 19,964 15,000 50.00% Total Revenue $ 510,799 $ 511,739 $ 460,000 $ 460,000 $ 241,093 $ 508,500 $ 10.54% Expenditures Other Services and Charges 591 1,094 1,300 1,300 1,310 1,300 0.00% Operating Trans To Debt Services 280,100 281,525 284,375 284,375 286,698 0.82% Total Expenditures $ 280,691 $ 282,619 $ 285,675 $ 285,675 $ 1,310 $ 287,998 $ 0.81% Fund Balance-January 1 773,137 1,003,246 1,232,365 1,232,365 1,232,365 1,406,690 Excess Revenue Over Expenditure 230,109 229,119 174,325 174,325 239,783 220,502 Fund Balance-December 31 $ 1,003,246 $ 1,232,365 $ 1,406,690 $ 1,406,690 $ 1,472,148 $ 1,627,192 $ EDA TIF#2 • •