5.0 EDSR 03-12-2007ITEM # 5.
liver
MEMORANDUM
TO: Economic Development Authority
FROM: Catherine Mehelich, Director of Economic Development
DATE: March 12, 2007
SUBJECT: Consider Recommendation to City Council on Resolution
Authorizing Participation in the Sherburne County Economic
Development Authority (EDA)
Attachments
• Memo dated February 2, 2007 from Brian Benson, Sherburne County Administrator
• DRAFT Resolution Authorizing City Participation in the Sherburne County EDA
• Summary Sherburne County Economic Development Strategic Plan Goals
• Sherburne County EDA Enabling Resolution
• Report to Sherburne County Board of Commissioners from the Economic
Development Structure Task Force, August 2006
Issue
Sherburne County Administrator Brian Benson will be presenting information to the EDA
regarding the proposed establishment of a Sherburne County EDA as outlined in the
attached memo and related materials.
The Elk River EDA is asked to provide a recommendation to the City Council on the
attached draft resolution authorizing the City of Elk River's participation in the Sherburne
County EDA. It is anticipated that the City Council would consider the EDA's
recommendation regarding the resolution at its March 19, 2007 Council meeting.
Recommendation
Staff recommends the EDA consider recommending the City Council approve a resolution
authorizing the City of Elk River's participation in the Sherburne County Economic
Development Authority.
S:\EDA\AGENDA\Year2007\County EDA 3.12.07.doc
Memo
February 2, 2007
To: City Economic Development Authorities in Sherburne County
City Council Members
From: Brian Bensen, Sherburne County Administrator
Re: County Board consideration of a County EDA
CC: County Commissioners
Kathleen Heaney, County Attorney
Greetings.
Over the past 2 years Sherburne County has been studying our Economic Development
needs. The result was an Economic Development Strategic Plan that provides a road map
for our continuing efforts. A major thrust of our Economic Development Plan is to
provide assistance to local governments in a way that compliments rather than competes
with local efforts. Coupled with another goal to preserve an available supply of industrial
land for the future, the County Board is studying how to proceed. The County Board,
following the requirements laid out in Minnesota Statutes 469.1082, Sub 2, appointed the
Economic Development Structure Taskforce. The takforce was defined as a committee
"to recommend a County Economic Development Service Provider" in the County Board
resolution dated April 11, 2006. (A copy is included in the materials.) The Taskforce
members appointed included citizens, local EDA and HRA members, City Council and
City EDA staff members, town board members, County Board and County HRA
members, Sherburne County Economic Development Alliance members, and
business/industry representation.
The Taskforce met over the summer to review the history of the County's economic
development efforts, study the current County Housing and Redevelopment Authority,
the cities and their governance, and finally different options which the County could
implement.
The Taskforce recommended to the County Board the creation of a County Economic
Development Authority (EDA) to work in cooperation with the cities. I am now meeting
with the cities EDA's and Councils to inform you of the process and the recommendation
which will go to the County Board. I will ask your EDA and City Council for a
resolution of support to be forwarded to the County Board of Commissioners.
Resolution 07 -
EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF ,MINNESOTA
HELD: , 2007
Pursuant to due call and notice therefore, a meeting of the City Council of the City of ,
County of Sherburne, State of Minnesota, was duly called and held at the City Hall in said City on
,the _ day of , 2007, at _:_0 _.m.
The following members were present:
And the following were absent:
Member
introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE CITY OF TO PARTICIPATE IN THE
SHERBURNE COUNTY ECONOMIC DEVELOPMENT AUTHORITY
BE IT RESOLVED by the City Council (the "Council") of the City of
Minnesota (the "City"), as follows:
Findings for Participating: The City Council hereby makes the following findings:
(a) Minnesota Statues Section 469.1082 authorizes a County to form a county
economic development authority if the County receives a recommendation to do so from a
committee formed, pursuant to Minnesota Statutes Section 469.1082, Subdivision 2, to
recommend options for a county economic development service provider.
(b) It was found and determined by the Sherburne County Board of Commissioners
that its commitment to economic development and redevelopment in Sherburne County (the
"County") is vital to the orderly development of the County, contributes to continued growth and
diversification of the tax base, increases employment opportunities, and is in the best interests of
the health, safety, prosperity, and general welfare of the citizens of Sherburne County.
(c) On April 11, 2006, the Sherburne County Board of Commissioners passed
Resolution Number 041106-AD-1089 which created a committee, pursuant to Minnesota
Statutes Section 469.1082, Subdivision 2, to explore and recommend the type of entity
appropriate to serve as the Sherburne County economic development service provider.
(d) Pursuant to the aforementioned Resolution, the Sherburne County Economic
Development Structure Task Force ("Task Force") was created, met on June 21, July 13, July 27,
0701 L7 Propose~t City E.D.A. Participntion Resolution Page 1 of 4
and August 10, 2006; and presented its findings and recommendations to the Sherburne County
Board of Commissioners in a written report entitled Report to the Sherburne County Board of
Commissioners From the Economic Development Structure Task Force ("Report").
(e) The Task Force, in its Report, concluded that an Economic Development
Authority ("E.D.A." or "Authority") is the most effective and efficient structure to provide the
necessary economic development for Sherburne County. The report further concludes that it is
not the County of Sherburne's role to act in a manner to duplicate the efforts of its member Cities
and Townships but to utilize tools that will assist the local governing authority to continue their
efforts;
(f) At the conclusion of a public hearing held on September 12, 2006, the Sherburne
County Board of Commissioners accepted the Report of the Task Force, adopted its
recommendation, and directed County Staff to develop the Bylaws and Enabling Resolution for
the Sherburne County Economic Development Authority.
(g) As stated in the proposed Bylaws of the Sherburne County Economic
Development Authority, the stated intent is for the Sherburne County E.D.A. to complement the
economic development activities of municipalities and townships located within Sherburne
County by collaborating, coordinating, expanding, and enhancing those efforts; as opposed to
regulating, duplicating or interfering with the economic development activities undertaken by the
townships and municipalities. Specifically, the need identified by the Cities and the Townships
was assistance in the development of necessary infrastructure to support business within our
community and the need to retain lands for future economic growth. These objectives are
consistent with the past identified goals of the County of Sherburne.
(h) Pursuant to the proposed Enabling Resolution of the Sherburne County E.D.A.,
the Sherburne County Board will control the major activities of the Sherburne County E.D.A. by
approving the E.D.A.'s annual operating budget, approving any proposed levy, approving any
proposed bond issue, approving all development plans.
(i) Pursuant to Minnesota Statute Section 469.101, Subdivision 2, one of the powers
of the Sherburne County E.D.A. is to acquire and hold land for such purposes as to create
opportunities for future economic development activities or for transportation or other necessary
infrastructure.
(j) Pursuant to Minnesota Statutes Section 469.1082, Subdivision 5, the area of
operation of the Sherburne County E.D.A. will include all land within the City limits when the
City adopts a resolution electing to participate in the Sherburne County E.D.A.
(k) The City's existing economic development authorities shall continue its function
and operate when the City participates in the Sherburne County E.D.A. The objective of both
parties is to collaborate on projects and not compete.
(1) Pursuant to Minnesota Statutes Section 469.1082, Subdivision 5, once the City
adopts a resolution to participate in the Sherburne County E.D.A., it is unable to withdraw its
participation for a minimum period of five (5) years.
0701 /7 Proposed City E.D.A. Participation Resolution Page 2 of 4
(m) The creation of a County E.D.A. will serve as an enhancement of, and a catalyst
for, necessary economic development in the City and will serve to complement the present and
future economic development activities of the City; and
THEREFORE, electing to participate in the Sherburne County Economic Development
Authority will serve the best interest of the City by encouraging and facilitating necessary
economic development opportunities within the City.
2. Approval of Participating in the Sherburne County Economic Development
Authority.
(a) The City Council hereby approves and authorizes the City of to
participate in the Sherburne County Economic Development Authority, subject to all benefits
thereof.
(b) The approval hereby given unto itself to participate in the Sherburne County
Economic Development Authority includes approval of incidental and necessary actions as to
effectuate this
The Motion for the adoption of the foregoing Resolution was made by member
and duly seconded by member and, upon a vote being taken thereon after full
discussion thereof, the following voted in favor thereof:
And the following voted against the same:
Whereupon said Resolution was declared duly passed and adopted.
ATTEST:
City Clerk
Mayor
070117 Proposed City E.D.A. Participation Resolution Page 3 of 4
STATE OF MINNESOTA )
( SS
COUNTY OF SHERBURNE)
I, the undersigned, being duly qualified and acting Clerk of the City of ,
Minnesota (the "City"), by reason of my Office as Clerk, DO HEREBY CERTIFY that I have
compared the attached and foregoing extract of minutes with the original thereof on file in my
Office, and that the same is a full, true, and complete transcript of the minutes of a meeting of the
City Council of the City, duly called and held on the date therein indicated, insofar as such
minutes relate to participating in the Sherburne County Economic Development Authority.
WITNESS my hand this day Of , 2007.
City Clerk
070117 Proposed City E.D.A. Participation Resolution Page 4 of 4
Summary of Goals
Sherburne County Economic Development Strategic Plan
1. Preserve land for future industrial and commercial growth in key
locations through planning, zoning, and acquisition in cooperation with
affected communities to ensure:
o a strong and balanced tax base
o a healthy employment base, and
o convenient access for residents to goods and services
2. Advocate for transportation and other infrastructure critical to the
county's economic competitiveness.
3. Integrate consideration of economic development into other county
departments, planning and decision-making.
4. Support local government efforts to plan and implement economic
development initiatives throughout Sherburne County.
5. Market the county for economic development.
6. Create the organizational capacity to effectively implement the 2005-
2007 workplan.
Sherburne County Board of Commissioners
Resolution enabling the creation of an
Economic Development Authority
in the County of Sherburne, State of Minnesota.
WHEREAS, Minnesota Statues Section 469.1082 authorizes a County to form a county
economic development authority if the County receives a recommendation to do so from a
committee formed, pursuant to Minnesota Statutes Section 469.1082, Subdivision 2, to
recommend options for a county economic development service provider;
WHEREAS, it was found and determined by the Sherburne County Board of
Commissioners that the encouragement and financial support of economic development and
redevelopment in Sherburne County (the "County") is vital to the orderly development of the
County, contributes to continued growth and diversification of the tax base, increases
employment opportunities, and is in the best interests of the health, safety, prosperity, and
general welfare of the citizens of Sherburne County;
WHEREAS, on April 11, 2006, the Sherburne County Board of Commissioners passed
Resolution Number 041106-AD-1089 which created a committee, pursuant to Minnesota
Statutes Section 469.1082, Subdivision 2, to explore and recommend the type of entity
appropriate to serve as the Sherburne County economic development service provider;
WHEREAS, pursuant to the aforementioned Resolution, the Sherburne County
Economic Development Structure Task Force ("Task Force") was created, met on June 21, July
13, July 27, and August 10, 2006; and presented its findings and recommendations to the
Sherburne County Board of Commissioners in a written report entitled Report to the Sherburne
County Board of Commissioners From the Economic Development Structure Task Force
("Report");
WHEREAS, the Task Force, in its report, concluded that an Economic Development
Authority ("E.D.A." or "Authority") is the most effective and efficient structure to provide the
necessary economic development for Sherburne County;
WHEREAS, at the conclusion of a public hearing held on September 12, 2006, the
Sherburne County Board of Commissioners accepted the Report of the Task Force, adopted its
recommendation, and directed County Staff to develop the Bylaws and Enabling Resolution for
the Sherburne County Economic Development authority;
Be It Therefore Resolved by the Sherburne County Board of Commissioners as follows:
Section 1. Enabling Resolution.
1.01 The Sherburne County Economic Development Authority (E.D.A.)
is hereby established and created.
1.02 The E.D.A. is a Public body corporate and politic, and is a political
subdivision of the State of Minnesota.
06!218 Sherburne County E.D.A. Enabling Resolution Page 1 of 7
1.03 The Sherburne County Economic Development Authority shall
have all the powers, duties and responsibilities as set forth in
Minnesota Statutes Sections 469.090 to 469.1081, or as maybe
amended from time to time, and all other applicable laws, except
as limited by this Resolution. These powers include, without
limitation:
(a). To use all powers granted to it, from any source, to carry
out its purposes.
(b). To create and define the boundaries of an Economic
Development District.
(c). To enter into joint powers agreements to carry out its
purposes.
(d). Acquire, by purchase, lease, gift, devise, or condemnation,
the needed right, title and interest in real property. Property so
acquired shall be owned, leased, controlled, used, or occupied by
the Authority for public governmental purposes and is exempt
from taxation by the State of Minnesota or its political
subdivisions.
(e). Accept land, money, or other assistance, whether by gift,
loan, or otherwise, in any form, from the federal government, the
State government, or any political subdivision of the State, or any
agency thereof.
(f). Sign options to purchase, sell, or lease property
(g). Sell, or otherwise dispose of, property acquired.
(h). Make contracts for the purpose of economic development.
(i). Become a limited partner in a partnership, or become a
member of any other organization, whose purpose is consistent
with and will further the economic development goals of the
Authority.
(j). Purchase the supplies and materials it needs.
(k). Contract to retained specialized professional services
needed to perform its duties and exercise its powers, in areas
including, but not limited to, economic development, engineering,
architecture, real estate, marketing, and law.
06!2/8 Sherburne County E.D.A. Enabling Resolution Page 2 of 7
(1). Research, assemble, and disseminate demographic data and
information pertaining to real estate, economic information,
commercial, and industrial activities within Sherburne County.
(m). Undertake outreach and marketing activities in an effort to
encourage and attract commercial and industrial development in
Sherburne County
Section 2. Limitations on Powers.
2.01 The following limits shall apply to the Sherburne County
Economic Development Authority and its operations:
(a). Bylaws of the E.D.A. must be approved by the Sherburne
County Board of Commissioners.
(b). The E.D.A. shall submit its budget to the Sherburne County
Board annually, at a time specified by the County Administrator,
and shall follow the budget process for all County Departments.
(c). The E.D.A. budget must include a detailed, written estimate
of the amount of monies the E.D.A. expects to require from the
County to conduct Authority business during the subsequent fiscal
year.
(d). The fiscal year of the E.D.A. shall be the same fiscal year
as the County.
(e). The E.D.A. annual operating budget and plan must be
approved by the Sherburne County Board.
(f). The E.D.A. may not levy without the approval of the
Sherburne County Board.
(g). The E.D.A. may not issue bonds without the approval of
the Sherburne County Board.
(h). The actions of the E.D.A. must be consistent with the
Sherburne County Comprehensive Plan.
(i). All development plans must be approved by the Sherburne
County Board prior to implementation.
Section 3. E.D.A. Board Appointments and Terms of Office.
3.01 The E.D.A. governing body shall be a Board consisting of nine
Members.
06!218 Sherburne County E.D.A. Enabling Resolution Page 3 of 7
3.02 Two of the members of the E.D.A. Board shall be members of the
Sherburne County Board of Commissioners.
3.03 All E.D.A. Board Members shall be appointed by the E.D.A.
Board Chair, and all Board Members shall be approved by the
Sherburne County Board of Commissioners.
3.04 All E.D.A. Board Members shall either be residents of, or own or
manage a commercial or industrial enterprise at least partially
located within, Sherburne County. The E.D.A. Board shall include
representation from Townships and incorporated municipalities
located within Sherburne County.
3.05 All E.D.A. Board Members shall initially be appointed for terms of
two, three, four, five, and six years, respectively. Thereafter, all
Board Members shall be appointed for six year terms. Any Board
Member who also serves as an elected public official shall be
appointed to a term commensurate with their term in office.
3.06 Any vacancy in the E.D.A. Board created by the resignation or
removal of any Board Member shall be filled, for the balance of
the unexpired term, by appointment from the E.D.A. Board Chair.
This appointment shall also be approved by the Sherburne County
Board of Commissioners.
Section 4. Removal of E.D.A. Board Members.
4.01 An E.D.A. Board Member shall automatically be dismissed and
removed for missing, without justifiable excuse, three consecutive
meetings or the majority of Board meetings in any given calendar
year.
4.02 An E.D.A. Board Member may be removed by the Sherburne
County Board for inefficiency, neglect of duty, or misconduct in
office. A Board Member may only be removed after a public
hearing conducted before the Sherburne County Board. A copy of
the allegations must be presented to the Board Member at least ten
(10) days before the hearing. The Board Member must be given an
opportunity to be heard, and present witnesses and evidence, at the
public hearing. If a Board Member is removed, a record of the
proceedings, along with the charges and written findings, shall be
filed with the Office of the County Administrator.
4.03 Any Board Member may be removed by a majority vote of the
Sherburne County Board of Commissioners.
061218 Sherburne County E.D.A. Enabling Resolution Page 4 of 7
Section 5. Conflict of Interest.
5.01 Except as authorized by Minnesota Statutes Section 471.88, a
Board Member, officer, or employee of the Sherburne County
E.D.A. shall not possess or acquire any financial interest, direct or
indirect, in any project or in any property, included or planned to
be included, in any project; nor shall the person have any financial
interest, direct or indirect, in any contract or proposed contract for
materials or services to be furnished or used in connection with
any prof ect.
5.02 Any Board Member, officer, or employee who has or may have an
actual or perceived conflict of interest in any project or contract for
services in support of any project shall immediately report the
conflict of interest to the full E.D.A. Board. Failure to disclose any
conflict of interest shall constitute misconduct.
5.03 Any Board Member with a conflict of interest in any project, or in
any contract for services in support of any project, is required to
abstain from voting on all actions of the E.D.A. in connection with
the project.
Section 6. Financial Reports.
6.01 The E.D.A. Board shall prepare and approve monthly financial
reports, which shall include all income, expenditures, and claims of
the Authority.
6.02 The E.D.A. must submit an annual financial statement to the
Sherburne County Board of Commissioners, due on or before the
1St day of the month of June of each and every year.
6.03 The financial reports and statements of the E.D.A. must be
prepared, audited, filed, and published or posted, in the manner
required for the financial statements of all other County
departments.
6.04 The financial reports and statements of the E.D.A. are subject to
audit by the Sherburne County Auditor and / or the Minnesota
State Auditor.
Section 7. Staffing.
7.01 The Authority may use the County's purchasing resources in
connection with construction work, or to purchase equipment,
supplies and materials.
061218 Sherburne County E.D.A. Enabling Resolution Page 5 of 7
7.02 The County may furnish offices, meeting rooms, structures, space,
supplies; or stenographic, clerical, engineering, or other services or
assistance to the Authority.
7.03 The Authority shall receive staff support from the Office of the
County Administrator, as well as the Office of the Sherburne
County Auditor /Treasurer.
7.04 The Authority may use the services of the Sherburne County
Attorney's Office.
Section 8. Modification and Amendment.
8.01 This Enabling Resolution may be modified by the Sherburne
County Board of Commissioners from time to time as deemed
appropriate or necessary, or to make any changes authorized by
law.
8.02 As part of its annual report, the E.D.A. Board shall report to the
Sherburne County Board of Commissioners as to whether any
changes or modifications are requested to either the Authority's
By-Laws or this Enabling Resolution.
Section 9. Affect Upon Other Obligations.
9.01 It is the intention of the Sherburne County Board of
Commissioners that nothing in this Resolution, nor any activity of
the Sherburne County E.D.A., be construed to impair the
obligations of the County under any of its contracts or to affect in
any detrimental manner the rights and privileges of a holder of any
bond or other obligation heretofore issued by Sherburne County.
The Sherburne County Board of Commissioners shall 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 of any contracting party.
Section 10. Implementation.
10.01 The Sherburne County Board of Commissioners may, from time to
time as necessary, adopt such ordinances and resolutions as are
required and permitted by law to give full effect to this Resolution.
10.02 The County administrator, and County staff, are authorized and
directed to take the actions and execute the delivery of documents
necessary to give full effect to this Resolution.
06!218 Sherburne County E.D.A. Enabling Resolution Page 6 of 7
Pursuant to MN Stat. 375B.06, this resolution shall be published in the official county newspaper for three
consecutive weeks and become effective 30 days after initial publication.
On , 2007, Commissioner moved the adoption of the above
resolution; Commissioner seconded the motion to adopt said resolution, and
thereupon the same was put to a vote with the following result:
Commissioner Riebel voted aye naye_
Commissioner Engstrom voted aye_ naye_
Commissioner voted aye_ naye_
Commissioner Leonard voted aye_ naye_
Commissioner Schmiesing voted aye_ naye
Attested to:
Brian J. Bensen
Sherburne County Administrator
06!218 Sherburne County E.D.A. Enabling Resolution Page 7 of 7
Report to Sherburne County Board of Commissioners
From
The Economic Development Structure Task Force
August 2006
Creation of Task Force
The Sherburne County Board of Commissioners authorized the creation of an
Economic Development Structure Task Force pursuant to the provisions of
Minnesota Statutes 469.1082, Subdivision 2 on April 26, 2006.
A copy of the County Board Resolution and other organizational documents,
including the membership and staff/consultant lists as well as minutes from the
June 21, 2006, July 13, 2006, July 27, 2006, and August 10, 2006 meetings are
included in the Appendix for reader reference.
The Sherburne County Board of Commissioners determined that formation of the
Task Force was necessary as a means to most effectively meet their established
goal of working cooperatively with local governments to build a strong County tax
base and to encourage the development of quality employment opportunities
within Sherburne County.
Task Force Compliance with Statutory Requirements
Membership on the Task Force is consistent with the statutory direction and
included in the appendix.
The statutory directive for the Task Force is to issue its report within 90 days of
its initial meeting has been complied with by the submission of this report to the
Sherburne County Board of Commissioners.
Issues Considered by the Task Force
The statute requires that the Task Force issue a report identifying:
1. existing economic, housing and community development programs
2. economic, housing and community development services provided by
the existing agencies;
3. any gaps in programs and services;
4. the capacity and ability of existing agencies to expand their activities;
5. the recommended organizational option for providing needed
economic development, housing and community development services
throughout the County in the most efficient manner; and
2
6. The distance from the boundary of a city that may be controlled by
each affected city in the county.
Task force findings and recommendations related to the statute are summarized
below in accordance with the six-point structure identified above. Non-statutory
findings and recommendations follow.
STATUTORY FINDINGS AND RECOMMENDATIONS
1. Existing economic, housing and community
development organizations
Sherburne County HRA
Structure
^ Established May 1992
^ Initial board - 5 members reflecting an area-wide distribution on a
representative basis
^ County board itself has served as the HRA Board since its inception (however
this is not a requirement of the articles or by-laws)
^ Rationale for County Board also serving as HRA Board
o Any taxes assessed were controlled through elected persons
o Meetings held at same time as the County Board
Purpose, powers
^ Sherburne County Board of Commissioners, acting under its authority of MN
Statute Chapter 469 incorporated the HRA
^ Purposes are the lawful business of a county HRA
Budget
No budget at this time; Board composition is the same as the County Board and
meetings are conducted on the same day to avoid additional cost.
Sherburne County Economic Development Alliance (SCEDA)
Structure
^ Established 1994
^ Fifteen member volunteer committee structured to represent a balance of
interests in the county, membership assigned geographically and terms of
service are two years
Purpose, powers
^ Advisory to the County Board
Sherburne County Economic Development Budget
^ 2006 budget - $57,000. Primary expenditures are for professional services
and organization memberships/contributions (Initiative Foundation match, The
3
Partnership). Other expenses include: meeting expenses, marketing &
promotion, travel, supplies.
Becker EDA
Structure
^ Established 1986
^ Have HRA powers (given when HRA was dissolved in mid-1990's)
^ 7 members including 2 members of the City Council, appointed by the Mayor
with approval of the City Council
^ Staggered terms initially; then 6-year terms
Functions, Powers and Duties
^ Hire staff, public accountant and consultants to perform duties and exercise
powers
^ Purchase materials and supplies needed to carry out functions
^ Use the services of the City Attorney and City's purchasing department
^ Create & define the boundaries of an Economic Development District
^ Be a limited partner in a partnership, consistent with the purposes of the
Authority
^ May study and analyze economic development needs of the City and ways to
meet those needs
^ 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. In general, with
respect to an economic development district, the Authority may use all of the
powers given an economic development authority by law."
^ May join trade associations; hold receptions of officials who may contribute to
advancing the City and carry out other appropriate public relations activities to
promote the city and its economic development.
^ Must follow the budget process for City departments
^ Must be consistent with the comprehensive plan
^ Must submit its administrative structure and management practices to the City
Council for approval
Limitations of Power
^ May not exercise any specific powers contained in the Act, Minn. Stat. 462
and 472A without the prior approval of the City Council
^ Sale of all bonds issued by the Authority, must be approved by the City
Council before issuance
Budget
2006 budget - $175,400. Primary expenditures are staff, taxes and
assessments, tax abatement and EDA subsidies. Other expenses include:
membership dues, professional development & conferences, marketing,
contracted services, legal & contracted services.
4
Bi_q Lake EDA
Structure
^ Established 1990
^ 7 members including 2 members of the City Council, appointed by the Mayor
with approval of the City Council
^ Members must be residents of Big Lake or business owners in Big Lake
^ 2 members appointed by the township board who are ex-officio at all times,
except when discussing matters related to a joint powers industrial
development project, at which time they become full voting members
^ 2 city members become non-voting when township members have voting
rights; at no time are there more than 7 voting members
^ Staggered terms initially; then 6-year terms, except city council members and
elected township officials whose term coincides with their existing term as an
elected city or town official
Functions, Powers and Duties
^ Hire staff, engineers and consultants to perform duties and exercise powers
^ Purchase materials and supplies needed to carry out functions
^ Use the services of the City Attorney and City's purchasing department
^ Exercise the powers granted to carry out its purpose
^ Create & define the boundaries of an Economic Development District
^ Related to Joint Powers agreement with township
^ Acquire property by lease, purchase, gift, devise or condemnation
proceedings, the needed right, title and interest in the property to create
Economic Development Districts
^ May sign options to purchase, sell or lease property; make contracts; be a
limited partner in project consistent with Authority's purpose
^ May acquire rights and easements for a term of years
^ May receive property from other units of government
^ May operate and maintain a public parking facility or other public facilities to
promote development in an Economic Development District
Limitations of power
^ Sale of bonds or obligations shall be issued and approved by the City Council
^ Must be consistent with the comprehensive plan
^ Obligations
o Must submit budget annually to the City Council
^ City of Big Lake sets the levy annually for the purpose of the BLEDA,
separate from the City's general fund.
Budget
The Big Lake EDA has total assets of $762,058. Operating revenues for 2006
total $143,500; operating expenses for 2006 total $18,500. Sources of income
include grant proceeds, net lease revenue after debt service, and interest.
Expenses include legal and professional services, engineering, advertising and
property related expenses.
5
Elk River EDA
Structure
^ Established 1987; bylaws adopted 1988
^ 7 members including the Mayor, 3 City Council members, 3 residents who are
not members of the City Council
^ Terms of City Council members coincide with terms on the council. Non-
council members begin with staggered terms and thereafter serve 6 year
terms.
Functions, Powers and Duties
^ The powers of an HRA under MN Stat § MN Stat §469.001 et seg;
^ The powers of a City under MN Stat § 469.124 et seq.;
^ The powers and duties of a redevelopment agency under MN Stat § 469.152
et seq.;
^ The power to create and define the boundaries of economic development
districts as provided by law;
^ The power to acquire by lease, purchase, gift, devise, or condemnation
proceedings property required to create economic development districts; and
to dispose of property acquired, as provided by the Statute;
^ The power to sign options to purchase, sell or lease property;
^ The right of eminent domain, as provided by the Statute;
^ The authority to be a limited partner in a partnership whose purposes are
consistent with the Authority's purpose;
^ The power to acquire rights or an easement fora term of years, or
perpetually, for development of an economic development district;
^ The power to buy supplies and materials to carry out the purposes of the
Statute;
^ The right to receive public property;
^ The power to sell or lease land held by it for economic development in
economic development districts;
^ The power to operate and maintain a public parking facility or other public
facility to promote development in an economic development district;
^ The right to cooperate with or act as agent for the federal or state government
or other public body to carry out the Statute;
^ The power to study and analyze economic development needs in the City and
ways to meet the needs; to study the desirable patterns for land use for
economic development and community growth, and other factors affecting
local economic development in the City; to make the result of the studies
available to the public and to industry in general; to engage in research and to
disseminate information on economic development in the City;
^ The power to utilize public relations activities to promote the City;
^ The right to accept conveyances of land from all other public agencies,
commissions or other units of government, if the land can be used to carry out
the purposes of the Statute;
^ The power to develop and improve the lands in an economic development
district to make it suitable and available for economic development uses and
purposes; to fill, grade and protect the property;
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^ The power to borrow money in anticipation of bonds, after bonds have been
authorized;
^ The power to issue general obligation bonds, pursuant to the procedures set
forth in and as provided by the Statute and when authorized by 2/3 majority of
the City Council;
^ The power to issue revenue bonds;
^ The power to sell or convey property;
^ The power to advance its general fund money or its credit or both without
interest for the objects and purposes of the Statute;
^ The right to request that the City levy a tax for the benefit of the Authority;
^ Must name a national or state bank within the state as its depository every 2
years;
^ Financial statements shall be prepared, audited, filed and published in
accordance with the Statute;
^ Shall prepare an annual report and annual budget;
Budget
2006 budgeted revenue is $345,800; including $307,200 general levy and
$32,100 from the business incubator. 2006 budgeted expenses total $297,850.
Primary expenditure is for staff related expenses, advertising/marketing,
professional, legal and engineering services, and incubator related expenses.
Other expenses include professional development and conferences, dues and
subscriptions, insurance, supplies, postage, and phone.
Elk River HRA
Structure
^ Established July 1980;
Functions, Powers and Duties
^ Created by resolution referencing MN Stat § 462.411-462.712;
^ Bylaws dated November 25, 1996 and signed by 5 commissioners
Limitations
^ Unknown at this time
Budget
2006 budgeted revenues are $264,950, including a general levy of $221,950.
Other revenue is from tax increment financing. 2006 budgeted expense total
$123,750. Primary expenditures are for staff related costs, legal and
professional services, and publishing. Other expenses include dues and
subscriptions, insurance, and postage.
Princeton EDA
Structure
^ Established 1994
^ 7 commissioners; 3 shall be members of the City Council and 2 may be
residents of area townships
^ Appointed by the Mayor with the approval of the City Council
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^ Staggered terms initially; then 6-year terms, except city council members
whose term coincides with service as a city council member
Functions, Powers and Duties
^ Resolution establishing an EDA references City authority under MN Stat§
469.
^ Authorized to coordinate and administer economic development and
redevelopment plans and programs of the City.
Limitations
^ Sale of bonds or other obligations must be approved by the City Council.
^ Must be consistent with the comprehensive plan and official controls
implementing the comprehensive plan.
^ Must submit its plans for development and redevelopment to the City Council
for approval in accordance with City planning procedures and law.
^ EDA administrative structure, management practices and policies must be
approved by the City Council.
^ Must get City Council approval for the acquisition or disposition of property.
Budget
No information received from the City as of the publication of this report.
St. Cloud HRA
Structure
^ Established 1966
^ 5 commissioners, appointed by the Mayor; two must be members of the City
Council; all must be residents of the City of St. Cloud
^ Staggered terms initially; then 5-year terms, except city council members
whose term coincides with service as a city council member
Functions, Powers and Duties
^ Resolution establishing the HRA references City authority under MN Statutes,
Chapter 462.425, the municipal Housing and Redevelopment Act of 1947.
Restated By-Laws, September 2004 reference exercising its powers, duties,
and functions as "prescribed by MN Statutes Chapter 469 and all other law of
the State of Minnesota applicable thereto."
^ In 1966, determined a need to establish the HRA based on substandard or
blighted areas that cannot be redeveloped without the assistance of
government; the need for housing for servicemen, veterans and their families;
the need for safe, sanitary dwellings for persons of low income and their
families.
^ May employ personnel as it deems necessary to exercise its powers, duties
and functions.
^ Staff of 25.
^ Section 8 Authority in Sherburne County.
Limitations
Sale of general obligations bonds or other general obligations must be
approved by the City Council.
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^ Sale of revenue bonds does not require City Council approval.
^ Must be consistent with the comprehensive plan and official controls
implementing the comprehensive plan.
^ JOBZ must be approved by the City Council after recommendation by the
H RA.
^ Must submit its plans for development and redevelopment to the City Council
for approval; the purchase or disposition of property is included in these
plans; therefore, the City Council does have authority over the purchase or
disposition of property.
Budget
2006 annual revenue (budget) - $11,829,297
2006 annual expense (budget) - $11,626,497
The primary source of revenue is intergovernmental ($8.2M) including MHRA,
HUD CDBG, HUD Section 8. Developer fees total $691,653. Levy is $420,556.
Other sources of revenue include interest on investments, property management
fees, and real estate sales. The most significant expenses are housing
assistance payments, debt service, salaries and benefits, maintenance services
and supplies and utilities.
St. Cloud Area Economic Development Partnership "The
Partnership"
Structure
^ Organized in 1985 as anon-profit corporation with powers under MN Statutes
§ 317
^ IRS classification as a 501(c)4 non-profit corporation (civic organization)
^ Organizational memberships for cities, counties, utilities, educational
institutions, and business organizations (e.g. Chamber of Commerce, St.
Cloud Opportunities)
^ Associate members for businesses
^ Annual dues for basic membership with Board representation - $7,500
^ Board representation based on level of financial support
Purpose
^ "The general purpose and nature for which this corporation is organized
shall be for promoting the social welfare and common good of the
citizens of the St. Cloud area by coordinating and facilitating a
private/public partnership to aid and assist investment decisions that will
further the economic development of the St. Cloud area as measured by
increased employment, payroll, business volume, tax base and
corresponding factors..."
^ "The corporation shall: assist existing businesses and industries in
maintaining, expanding, and upgrading their facilities within the St. Cloud
area; seek out, encourage and assist new businesses and industries to
locate within the St. Cloud area; and provide technical, research and
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financial assistance in support of area economic development as deemed
appropriate by the Board of Directors."
Budget
2006 budgeted revenue - $323,700
2006 budgeted expense - $318,737
Major expenditures are salaries and benefits, program related expense
(marketing, job fair, quarterly economic profile), office expense. Other expenses
include travel, professional education, board and committee expenses, and
prospect related expenses.
2. Programs and services provided by existing agencies
Sherburne Countv HRA
Major accomplishments
^ 1992 approved Housing Plan for Sherburne County.
^ Joined with the St. Cloud Area Planning Organization for a bonding pool for
first time homebuyers.
^ Establishment and creation of a TIF district for the expansion of Appert's
(Appert's did not want to be annexed by the City of St. Cloud.) TIF district was
decertified early.
^ Contemplated potential bond issuance for a combined pool between
Guardian Angels and Wilder Foundation for elderly housing. The County
Board chose not to participate; perhaps because the majority of the issuance
would have benefited persons who were not residents of Sherburne County.
^ $19 million bond forjail facility.
Focus/goals
^ The HRA does not currently have separate goals from those established by
the Sherburne County Board of Commissioners.
^ The HRA may need to stay in existence until its obligations (bonds) are
repaid.
Sherburne Countv Economic Development Alliance
Major accomplishments
^ Started the "Money Breakfasts" to support entrepreneurs.
^ Provided guidance to the 2005 economic development strategy.
^ Advisory on TIF requests including Appert's.
^ Participated in developing the tax abatement policy.
Focus/goals
^ Responsive to tax abatement requests.
Becker EDA
Major accomplishments
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^ Industrial projects -Liberty Paper, Inc. (issued bonds) and a number of
smaller industrial projects.
^ Industrial Park -development of various phases, design standards.
^ Work with planning commission to review commercial development proposals
and redevelopment projects. Conducted planning studies for redevelopment
^ Member of "The Partnership"
Focus/goals
^ Continued work with prospects
^ Industrial park expansion, additional 30 acres
^ Ordered railroad study (engineering)
^ Other engineering studies for water and
industrial park
Bi_g Lake EDA
sewer for future expansion of
Major accomplishments
^ Developed and filled a 68-acre industrial park (jointly with Big Lake Township)
^ Redeveloped blighted residential area (9 homes on 10 lots); redeveloped as
townhome and single family residential project
^ Awarded funding from DEED/MHFA for scattered site residential properties
(approximately 10 properties)
^ Rehab of 25-35 housing units
^ Administer facade loan program ($10,000 maximum)
^ Administer revolving loan fund for industrial and commercial projects
^ Participate in MN Community Capital Fund
^ Acquired numerous properties on a key commercial block (anticipate
redevelopment); under discussions with developer
^ Bonded for public facilities (city hall, police and fire, public works facility and
liquor store)
Focus/goals
^ Possible industrial park expansion (negotiating with property owners)
^ Downtown redevelopment
^ Possible involvement in Transit Oriented Development
Elk River EDA
Major accomplishments
^ Developed Northstar Business Park
^ Cooperation with 3 privately initiated
Focus/goals
^ Industrial development
^ Incubator
^ Marketing
^ Commercial development
^ Transportation advocacy (Highways
industrial parks (TIF)
169 & 10)
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Elk River HRA
Major accomplishments
^ $30 million downtown redevelopment
^ King and Main St. -First National Financial Services project
Focus/goals
^ Downtown
^ East Highway 10
^ Monitor housing needs; limited involvement due to results of needs
assessments
Princeton EDA
Major accomplishments
^ Been involved with 3-4 incentive financing packages for manufacturers
(UDAG revolving loan funds)
^ Developed Arrow Commercial Park - 11 acres, Mille Lacs County
^ Sold several tax forfeiture parcels in industrial park east of the airport
Focus/goals
^ 40 acre industrial park expansion in Sherburne County (working on EDA
grant)
^ Downtown revitalization
^ Working on brochure for City of Princeton & Arrow Commercial Park
St. Cloud HRA
Major accomplishments
^ I-94 industrial park in partnership with St. Cloud Opportunities and Stearns
Electric
^ Airport Business Park in partnership with St. Cloud Opportunities and East
Central Energy
^ Secured Business Development Infrastructure Grant from the State of
Minnesota for the extension of sewer and water in the Airport Industrial Park
(2004)
^ Work closely with the City of St. Cloud and the East Side Boosters on a
redevelopment initiative for the East Side
^ Assisted with redevelopment of the Federal Building fora technology
business.
^ Numerous financing packages for expanding businesses -including funds
from the Minnesota Community Capital Fund, Minnesota Investment Fund
and tax abatement from JOBZ.
^ Comprehensive array of affordable housing programs -senior, single family,
multi-family and mixed use housing projects, including both rental and
ownership programs. Oversees and manages 720 apartment units (16
complexes and 40 homes), 830 Housing Choice vouchers, and 5 special
programs.
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^ Administration of CDBG funds
Focus/goals
^ Airport Business Park in Benton County
^ Expansion of I-94 industrial park
^ Downtown redevelopment
^ Comprehensive array of affordable housing programs -senior, single family,
multi-family and mixed use housing projects, including both rental and
ownership programs.
St. Cloud Area Economic Development Partnership
Focus/goals
^ Retention and expansion of existing industries
^ Timely & professional response to prospect inquiries for the Greater St. Cloud
Area -including portions of Benton, Sherburne and Stearns Counties
^ Community and workforce development to support economic growth
^ Attraction of new industry with quality employment opportunities
3. Identification of gaps in programs and services
Sherburne County HRA
The county economic development strategy indicates a need to focus on the
development of business and industrial parks; many potential sites will not qualify
under redevelopment statutes and the EDA would provide greater flexibility in the
achievement of the economic goals of the County Board.
Sherburne County Economic Development Alliance
SCEDA does not have the statutory power to address all the goals identified in
the 2005 economic development strategic plan.
Becker EDA
^ Becker identified the following challenges and gaps in service. Challenges in
working with MnDOT re: reorientation of Co Rd 8 outside the boundaries of
the city
^ Does not utilize existing HRA powers
^ Challenges in getting utility services to new industrial areas
^ Doesn't do extensive marketing to attract businesses to Becker
^ Only offer serviced industrial land with design standards
^ Challenge in attracting retail businesses to Becker
Bi_g Lake EDA
Big Lake identified the following challenges and gaps in programs and services.
^ Extending utilities to land identified in comp plan for industrial use
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^ Acquiring land at reasonable prices for industrial park development
^ Preserving land identified in the comp plan for industrial use
^ Do moderate amount of marketing to attract businesses to Big Lake
^ Only offer serviced industrial land with design standards
^ Need additional support for entrepreneurs
Elk River EDA
Elk River identified the following challenges and gaps in programs and services.
^ Regional marketing
^ Commercial development (resource limitations)
^ Limited funds to acquire and hold properties
Elk River HRA
Elk River identified the following challenges and gaps in programs and services.
^ Limited funds to acquire and hold properties for redevelopment
Princeton EDA
Princeton identified the following challenges and gaps in programs and services.
^ Determining how to best invest in infrastructure to stimulate commercial and
industrial development
^ Extending utilities to new industrial park
^ Limited marketing materials/capacity
^ Only offer serviced industrial land
St. Cloud HRA
The St. Cloud HRA identified the following challenges and gaps in programs and
services.
^ Challenges on public housing and Section 8 housing due to reduction in
federal funds.
^ Can only levy .0144% in property taxes (about 3% of the HRA budget)
^ Attempt to maximize fee income by charging administrative fees, developers'
fees, etc.
St. Cloud Area Economic Development Partnership
The St. Cloud Area Economic Development Partnership is seeking to expand its
membership to secure sufficient funding to support area wide marketing - a gap
identified by its members. Members also feel that marketing is appropriately
handled at the regional level - to reach and work with prospects in the most cost
effective manner.
Other Gaps in Service
The task force identified additional gaps in service as follows:
• Staff, resources and authority available to townships for economic
development;
• A centralized source for county economic and demographic data.
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4. Capacity and ability of existing entities to expand
Sherburne County HRA
No legal limitations to expanding the HRA to include EDA powers.
Sherburne Countv Economic Development Alliance/Sherburne
County Board
SCEDA is limited to advisory capacity to the County Board.
The County Board focus on economic development would be more clearly
emphasized with the use of the EDA and the EDA structure can ensure the
accountability of the County Commissioners to the voters.
Becker EDA
The Becker EDA expects to continue to focus on commercial and industrial
development in the City of Becker.
Bi_g Lake EDA
The Big Lake EDA expects to continue to focus on commercial and industrial
development in Big Lake and in areas immediately adjacent to the City.
Elk River EDA
The Elk River EDA expects to continue to focus on economic development
issues in the City of Elk River. The EDA is limited by resources and currently
levies to the maximum.
Elk River HRA
The Elk River HRA expects to focus on redevelopment issues in Elk River and
will continue to monitor housing issues. The HRA is limited by resources and
currently levies to the maximum level.
Princeton EDA
The Princeton EDA expects to continue to focus on commercial and industrial
development in Princeton.
St. Cloud HRA
The St. Cloud HRA manages housing programs in other counties at the request
of HUD, due to the lack of active HRAs in some adjacent counties. However it
operates economic development and redevelopment programs only within the
city limits of St. Cloud.
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St. Cloud Area Economic Development Partnership
The Partnership is a regional organization works with companies and
communities throughout the greater St. Cloud area, including portions of Benton,
Stearns and Sherburne Counties. It may be an appropriate partner for Sherburne
County economic development efforts, but does not have the capacity to address
the land and tax base development goals of the county or provide the type and
depth of services envisioned in the county's economic development strategy.
5. The recommended organizational option for providing
needed economic development, housing and
community development services in the most efficient
manner.
In accordance with the statute, the Economic Development Structure Task Force
considered four options when evaluating the appropriate economic development
structure for Sherburne County.
1. Existing situation -Sherburne County Economic Development Alliance,
Sherburne County HRA, and County Board
2. HRA with EDA Powers
3. EDA
4. Special legislation
The Committee has identified that the existing structure is inadequate to obtain
the goals set forth in the strategic plan as well as the specific goals of the County
Board. It is clear from the Committee that additional efforts and structure will
facilitate economic development in the community. The Committee is cognizant
of the need to supplement the existing structure both in the County as well as the
cities. However, the existing structure is reactive and not progressive in nature.
The Committee has identified that the HRA with EDA powers is not a viable
alternative to recommend to the County Board for consideration.
The Committee identified the creation of an EDA for the County as the preferred
alternative and set forth its rationale below.
The Committee recognizes that the use of special legislation in the past was
used as a means for other County Boards to gain the powers that are now
inherent in the structure of the HRA/EDA or an EDA as a stand alone. For this
reason, the Committee is not recommending this option to the County Board.
Further, any future changes necessary to respond to the needs of the community
would require legislative action. This may result in lost opportunities for the
County and the citizens that they serve.
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6. The distance from the boundary of the city, that may
be controlled by each affected city.
The control of each city should extend only to its geographic boundaries. Some
cities and townships have chosen to work together in efforts for economic
development, which have proven very successful and should be emulated again.
However, that is a choice that is not one the County may direct.
Task Force Recommendation to Sherburne Board of
County Commissioners
Statutory Findings
The Task Force determined that an Economic Development Authority is the
most effective and efficient structure to provide the necessary economic
development for Sherburne County.
After extensive discussion the Task Force members determined that the benefits
of a nine member EDA, appointed by the County Commissioners include:
• The statutory authority needed to accomplish the County's proactive
economic development goals
• Clear economic development focus which will be less confusing to the
public and to businesses
• The best opportunity to address the economic development needs and
opportunities of the townships
• The County Commissioners, by statute, have clear oversight and decision-
making responsibility and adequate controls over the activity of the EDA
• Flexibility and reduced controversy because cities may opt in or opt out
• Creation can direct the entity to supplement the existing initiatives of the
cities (as a goal is to clearly avoid any overlaps in service)
• The larger, nine member Committee allows;
a. Greater citizen involvement
b. Broader access to expertise
c. More opportunities for leadership development
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Non-Statutory Findings
The Task Force discussed characteristics of the EDA and recommends for
further deliberation by the Board of County Commissioners the following:
Membership
^ Nine members on the Economic Development Authority
^ Geographic representation from across the county
^ City and township representation
^ At-large representation
County Duties
^ Responsibility for economic development will remain in the County
Administrator's office at this time; no changes in county staffing are
anticipated.
According to the statute, if there are 9 members on an Economic Development
Authority, at least 2 must be County commissioners. The committee noted that if
3 of the 9 are county commissioners, then additional meeting notice
requirements may apply.
Although the Task Force prefers a nine member EDA, the group considered that
the County Commissioners may be wary of establishing such body. The task
force therefore further recommends that the EDA be subject to the following
requirements and explicit limitations:
^ Bylaws of the new EDA must be approved by the County Board
^ Annual operating Budget and plan must be approved by the County
Board
^ Any levy must be approved by the County Board
^ No bonds may be issued without the approval of the County Board
^ EDA actions must be consistent with the Sherburne County
Comprehensive Plan
^ All development plans must be approved by the County Board prior to
implementation
^ EDA must submit an annual report to the County Board of
Commissioners
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The Board of Commissioners may wish to also consider the provisions
of MN Stat Sec 469.090 to 469.1081, as they develop the charge to
the EDA, should they adopt the recommendations of the Taskforce.
Conclusion
In conclusion, after significant consideration, the task force recommends that the
Sherburne County Board of Commissioners establish an Economic Development
Authority for the purpose of fostering county wide economic development, which
is critical to the long-term well-being of Sherburne County. The structure should
be cooperative, complimentary, supportive and collaborative.
The structure will support effective implementation of the Economic Development
Strategy and Workplan approved by the County Board of Commissioners on May
17, 2005.
It is our belief that an economic development authority will provide a valuable
framework enabling the county to complement and support townships and cities,
and establish a cooperative county-wide approach to economic development.
Stewart Wilson, Chair
Economic Development Structure Task Force
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