4.3.
Economic Development Authority (EDA)
- Meeting Date:
- 05/12/2011
- By:
- Aaron Backman, Administrative Services
Title:
HRA/EDA Powers and Responsibilities
Background:
At the joint City Council-EDA meeting on April 14, 2011, the City Administrator brought up the idea of having a comparison of powers and responsibilities between the Ramsey Housing & Redevelopment Authority (HRA) and the Ramsey Economic Development Authority (EDA).
Cities have authority to aid and cooperate in the planning, construction, or operation of economic development, and housing and redevelopment projects. These can be done through various government organizations. The predominant method of delivering and administering housing and redevelopment programs in Minnesota is through a legal public entity, accountable to city government. Since 1947 a city in Minnesota may establish this public agency, often a Housing and Redevelopment Authority (HRA) (MN Stat. 460.001 to 469.047), of which there are more than 230 in Minnesota. An HRA is a public corporation with power to undertake certain types of housing and redevelopment or renewal activities. While state legislation conveys authority for HRAs in each City, it is up to the City Council to formally establish an HRA before it can do business and use its powers. Frequently HRAs are the affordable housing entity that provides decent and safe rental housing for eligible low-income families, the elderly and persons with disabilities. HRA activities can lead to reinvestment in commercial neighborhoods through acquisition, demolition and rehabilitation.
In 1986 the Minnesota Legislative passed legislation (MN Stat. 469.090 to 469.1082) authorizing cities to establish formal Economic Development Authorities (EDAs) to promote local economic growth. An EDA is a legal entity created by a City to facilitate a well-rounded development program by taking advantage of some of the port authority powers and all of the HRA powers. By combining these powers, community leaders are able to create flexible business assistance and development programs. EDAs are allowed to buy and sell property, make loans and grants to businesses, provide loan guarantees and to sell bonds.
Attached is a comparison between the two bodies in terms of purposes, governing body, and activities.
Cities have authority to aid and cooperate in the planning, construction, or operation of economic development, and housing and redevelopment projects. These can be done through various government organizations. The predominant method of delivering and administering housing and redevelopment programs in Minnesota is through a legal public entity, accountable to city government. Since 1947 a city in Minnesota may establish this public agency, often a Housing and Redevelopment Authority (HRA) (MN Stat. 460.001 to 469.047), of which there are more than 230 in Minnesota. An HRA is a public corporation with power to undertake certain types of housing and redevelopment or renewal activities. While state legislation conveys authority for HRAs in each City, it is up to the City Council to formally establish an HRA before it can do business and use its powers. Frequently HRAs are the affordable housing entity that provides decent and safe rental housing for eligible low-income families, the elderly and persons with disabilities. HRA activities can lead to reinvestment in commercial neighborhoods through acquisition, demolition and rehabilitation.
In 1986 the Minnesota Legislative passed legislation (MN Stat. 469.090 to 469.1082) authorizing cities to establish formal Economic Development Authorities (EDAs) to promote local economic growth. An EDA is a legal entity created by a City to facilitate a well-rounded development program by taking advantage of some of the port authority powers and all of the HRA powers. By combining these powers, community leaders are able to create flexible business assistance and development programs. EDAs are allowed to buy and sell property, make loans and grants to businesses, provide loan guarantees and to sell bonds.
Attached is a comparison between the two bodies in terms of purposes, governing body, and activities.
Observations:
Funding Source:
Informational document.
Staff Recommendation:
It is recommended that this information be provided to the Ramsey City Council.
EDA Action:
Move to provide this information to the Ramsey City Council.
Attachments
Form Review
- Form Started By:
- abackman
- Started On:
- 05/06/2011 03:20 PM
- Final Approval Date:
- 05/06/2011