CC_Minutes_2015_0914 - Laserfiche WebLink

Home

Regular City CouncillVdeeting Monday, September 14, 2015 Page 15 a. Discuss Housing & Redevelopment Authorities and Alternative Entities Community Development Director Paul Bilotta provided a broad overview of types of entities via Power Point presentation, and as detailed in the RCA and at- tachments dated September 14, 2015. Mr. Bilotta noted the key decisions points revolved around the desired outcomes related to housing and/or economic devel- opment, and elected versus appointed levy control; as well as the desired role of citizens. Mr. Bilotta provided a brief suinmary for each entity addressed: Housing & Re- development Authorities (HRA), Economic Development Authorities (EDA), Port Authorities (PA) or advisory commissions and reviewed statutes addressing the powers for each entity. Discussion included potential pitfalls to the City's PA in taking on EDA powers that may occur under certain circumstances; the process in dissolution of an HRA according to state statute and transfer of assets to the City for capital or permanent improvement funds or related debts for improvements to a new entity, but not to the General Fund; and inability to dissolve an HRA if it had entered into a con- tract with any federal government agency for a loan or grant for urban develop- ment or low rent public housing project that remains in effect. Mr. Bilotta reported that initial research indicated the City had no such federal contracts at this time, but if the City Council decided on dissolving the HRA, staff would undertalce more due diligence in perforining further research. Mr. Bilotta reviewed public hearing requireinents per statute for HRA dissohition and the subsequent paperwork process involved; with the City retaining all rights of the HRA in addition to its assets and obligations. Councilmember Willmus asked the role of the Greater Minnesota Housing Corpo- ration (GMHC) regarding operations and how it was tied to the City's existing, HRA. Mr. Bilotta advised that the GMHC saved the City significant time and effort in monitoring and implementing housing programs for individuals from references to the loan process and criteria; with the City's only relationship basically in mak- ing sure there was enough money to support the program and to alter the program standards as applicable. If the City should determine to dissolve the HRA, Councilmember Willmus asked if the GMHC relationship could remain intact with the City moving forward. Mr. Bilotta advised that it could pending contract revisions; and noted he had spoken to GMHC staff earlier today to assure them whatever decision the City