6.6 EDSR 01-19-2016 ht of 1 .: Request for Action
River
To Item Number
Economic Development Authority 6.6
Agenda Section Meeting Date Prepared by
Consent January 19,2016 Amanda Othoudt, EDD
Item Description Reviewed by
Receive report on Modifications/Amendments to Cal Portner, City Administrator
Statute and/or Enabling Resolution Reviewed by
Action Requested
Receive report
Background/Discussion
Economic Development Authority Bylaws allow for the review of any modifications or amendments to
the Statute and/or Enabling Resolution. The EDA attorney has provided a review and submitted an
update as suggested each year,attached.
These updates will be reflected in ongoing processes and policies. If there are any questions on the
update
Financial Impact
N/A
Attachments
• EDA attorney memo dated January 13,2016
ramie IT
NATURE
Kennedy
Offices in 470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis
Minneapolis MN 55402
&
(612) 337-9300 telephone
Graven
Saint Paul
(612) 337-9310 fax
www.kennedy-graven.com
St. Cloud
Affirmative Action Equal Opportunity Employer
CHARTERED
MEMORANDUM
TO:
Elk River EDA Chair and Commissioners
FROM:
Jenny Boulton
DATE:
January 12, 2016
RE:
Economic Development Authority Legislative Update
The bylaws for the EDA require an annual update of legislative changes to the Economic
Development Authority Act, Minnesota Statutes, Sections 469.090 to 469.1082. Outlined below are
legislative changes enacted in 2015 that are relevant to the EDA.
There were no legislative changes to theEconomic Development Authority Act.
Other economic development legislative changes impacting the EDA included the following:
Economic development provisions in the omnibus bonding bill
. First Special Session
Chapter 5 (HF 2/SF 4) is the 2015 omnibus bonding bill. Article 1, Section 14, subd. 2
provides $1 million for Minnesota Department of Employment and Economic Development
Greater Minnesota Business Development Public Infrastructure Grants under Minnesota
Statutes, Section 116J.431. Effective July 1, 2015.
Article 1, Section 14, subd. 2 also provides $2 million for Minnesota Department of
Employment and Economic Development Transportation Economic Development under
Minnesota Statutes, Section 116J.436. Effective July 1, 2015.
Economic development provisions in the jobs and energy act.
First Special Session
Chapter 1 (HF3/SF2) is the omnibus jobs and energy act. Article 1, Section 2 appropriates
approximately $122 million in Fiscal Year 2016 and $105 million in Fiscal Year 2017 to the
Minnesota Department of Employment and Economic Development for its operations and
grant programs. This amount includes:
$15 million each year for the Minnesota Investment Fund (MIF) under Minnesota
o
Statutes, Section 116J.8731
$12.5 million each year for the Minnesota Job Creation Fund under Minnesota
o
Statutes, Section 116J.8748
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$1.272 million in each year from the general fund and $700,000 each year from the
o
remediation fund for contaminated site cleanup and development grants under
Minnesota Statutes, Sections 116J.551 to 116J.558
$1.425 million each year for the business development competitive grant program,
o
$2.189 million in Fiscal Year 2016 and $1.789 million in Fiscal Year 2017 from the
general fund, and $17.567 million in Fiscal Year 2016 and $16.767 million in Fiscal
Year 2017 from the workforce development fund, for workforce development pro-
grams administered by DEED
$4.195 million each year for the Minnesota Jobs Skills Partnership under Minnesota
o
Statutes, Section 116L.01
$900,000 each year from the workforce development fund for job training grants
o
under Minnesota Statutes, Section 116L.42, subd. 3.
$1.9 million in FY16 and $1.3 million for the Greater Minnesota Business
o
Development Public Infrastructure Grant Program under Minnesota Statutes, Section
116J.431.
Effective July 1, 2015.
Economic Development provisions in the omnibus education finance bill.
First Special
Session Chapter 3 (HF1*/SF3) is the omnibus education finance bill. Article 6, Section 7
amends Minnesota Statutes, Section 297a.70, subd. 2 to delay the date on which the sales tax
exemption for government purchases will go into effect for special districts,
instrumentalities of cities, counties, and townships, and all joint powers boards and
organizations, including economic development authorities, by one year, from Jan. 1, 2016,
to Jan. 1, 2017. The exemption was originally granted during the 2014 legislative session but
included a delayed effective date. Effective June 14, 2015.
Housing and Redevelopment Authorities.
There were no changes to the Housing and
Redevelopment Authority Act, Minnesota Statutes, Sections 469.001 through 469.047.
Tax increment financing (TIF).
There were no changes to the tax increment financing act,
Minnesota Statutes, Sections 469.174 through 469.1794.
Tax Abatement.
There were no changes to tax abatement act, Minnesota Statutes, Sections
469.1813 through 469.1815.
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