7.5. EDSR 01-22-2019
Request for Action
To Item Number
Economic Development Authority 7.5
Agenda Section Meeting Date Prepared by
General Business January 22, 2019 Amanda Othoudt, EDD
Item Description Reviewed by
Modifications/Amendments to Statute and/or Cal Portner, City Administrator
Enabling Resolution
Reviewed by
Action Requested
Receive report on modifications or amendments to statutes and/or enabling resolution.
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.
These updates will be reflected in ongoing processes and policies.
Financial Impact
N/A
Attachments
EDA attorney memo dated January 7, 2019
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity
Offices in 470 U.S. Bank Plaza
200 South Sixth Street
Kennedy
Minneapolis
Minneapolis MN 55402
&
(612) 337-9300 telephone
Saint Paul
(612) 337-9310 fax
Graven
www.kennedy-graven.com
St. Cloud
Affirmative Action Equal Opportunity Employer
CHARTERED
MEMORANDUM
TO: Elk River EDA Chair and Commissioners
FROM: Gina Fiorini
DATE: January 7, 2019
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 2018 that are relevant to the EDA.
There were no legislative changes to the Economic Development Authority Act.
Other economic development legislative changes impacting the EDA included the following:
Bonding Bill. Chapter 214 (HF 4425/SF 4021) is the capital investment “bonding” bill and
contains several funding provisions relevant to the EDA including:
o $5 million for the Greater Minnesota Business Development Public Infrastructure
Program.
o $3 million for the Transportation Economic Development Program.
o $2 million for the Innovative Business Development Infrastructure Program.
o $123 million for Public Facilities authority water infrastructure programs, including
general obligation bond funding in the amount of $14 million to provide state
matching funds for federal EPA grants and $25 million for Water Infrastructure Fund
grants.
o $35,000,000 for the Local Road Replacement Program.
o $5,000,000 for the Local Bridge Replacement Program.
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o $1,500,000 in funding assistance to dredge Lake Orono in Elk River from proceeds
from the state Environment and Natural Resources Trust Fund.
o $10 million in general obligation bonding authority for the Minnesota Housing
Finance Agency (“MHFA”) to provide financing for public housing rehabilitation.
o $30 million in housing infrastructure bonding authority for the MHFA to provide
financing for permanent housing for those with behavior health needs.
o $50 million in housing infrastructure bonding authority for the MHFA to provide
financing for non-profit affordable housing projects. Effective July 1, 2018.
DEED Programs and Funding. No new funding was provided for Minnesota Department
of Employment and Economic Development (“DEED”) economic development grant and
loan programs. Funding for certain DEED programs will continue with previously
appropriated agency funds on hand.
Tax Increment Financing (TIF). There were no modifications to Minnesota Statutes,
Sections 469.174 through 469.1794 in the 2018 session.
Tax Abatement. There were no changes to the tax abatement act, Minnesota Statutes,
Sections 469.1813 through 469.1815.
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