HomeMy WebLinkAbout4.b. Port Authority PowersROSEMOUNTEXECUTIVE SUMMARY
PORT AUTHORITY
Port Authority Regular Meeting: March 19, 2013
AGENDA ITEM: Port Authority Powers
AGENDA SECTION:
Old Business
PREPARED BY: Kim Lindquist, Deputy Director
AGENDA NO. 4.b.
ATTACHMENTS: Summary of MN HRA, EDA and Port
APPROVED BY:
Authori Powers dated 4/2012
RECOMMENDED ACTION: Discussion Item
DISCUSSION
During the course of my ten year employment I have been asked on numerous occasions why the City
chose to have a port authority versus a housing and redevelopment authority or an economic development
authority. When the question was recently raised by Chair Weisensel, the City Attorney made available a
memo that was crafted in their offices for a different client, answering that question. This information is
being passed on to the Port Authority for your information.
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470 US Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
(612) 337 -9300 telephone
(612) 337 -9310 fax
http://www.kennedy-graven.com
CHARTERED
SUMMARY OF MINNESOTA HRA, EDA AND PORT AUTHORITY POWERS
Stephen J. Bubul
Kennedy & Graven, Chartered
April, 2012
Following is a generalized summary of the powers of a housing and redevelopment authority
( "HRA ") under Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "), an economic
development authority ( "EDA ") under Minnesota Statutes, Sections 469.090 to 469.108 ( "EDA
Act "), and a port authority under Minnesota Statues, Sections 469.048 to 469.068 ( "Port Act ").
/Va -lor �
1. Housing
Housing powers are generally grouped under the definition of a "housing project" and a "housing
development project."
Housing projects are any work or undertaking to provide decent, safe and sanitary dwellings for
persons of low income and their families. Section 469.002, Subd. 13. Such persons are those who
lack a sufficient income to enable them, without financial assistance, to live in decent, safe and
sanitary dwellings without overcrowding.
Housing development projects are any work or undertaking to provide housing for persons of
moderate income. Section 469.002, subd. 15. Such persons are those whose income is not
adequate to cause private enterprise to provide, without governmental assistance, a substantial
supply of decent, safe and sanitary housing and rents or prices within their financial means.
The statute includes a more specific schedule of powers that fleshes out this general authority, most
of which are discussed below. Generally, HRAs may do all things necessary and convenient to
acquire, construct and operate housing projects and housing development projects.
Key specific powers that supplement the general language above include:
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a. Interest reduction programs, allowing financial assistance to reduce the cost of interest on
privately financed housing intended primarily for occupancy by low and moderate income
individuals. Sections 469.0012, Subds. 7 to 9.
b. Housing rehabilitation loan and grant program, for property owned by person of low and
moderate income. Section 469.012, Subd. 6.
c. Down payment assistance loans and grants, where the HRA finds that the program is
necessary to promote economic integration or encourage owner occupancy of single family
residences. Section 469.012, Subd. 13
HRAs may finance housing projects and housing development projects through issuance of bonds
secured by a mortgage on HRA property, a pledge of HRA revenues, or a pledge of grants or
contributions from the federal government or any other source. Section 469.012, Subd. 1 q, Section
469.034. If certain criteria are met, and subject to certain limits, the HRA may sell bonds for
housing development projects secured by the City's general obligation pledge, with the City
Council's approval after public hearing. Section 469.034, Subd. 2.
2. Redevelopment
HRA powers regarding redevelopment are described under the powers to create and operate
"redevelopment projects." That term means, generally, any work or undertaking to acquire property
in order to remove, prevent or reduce blight or blighting factors; construct utilities and site
improvements essential to the preparation of sites for uses in accordance with the redevelopment
plan; sell or lease land for uses in accordance with the redevelopment plan; prepare a
redevelopment plan; or conduct an "urban renewal project," which itself is broadly defined to
include any undertaking for the elimination or prevention of blighted or deteriorating areas. Section
469.002, Subd. 14.
The specific schedule of powers regarding redevelopment includes the power:
a. To establish a redevelopment project. The HRA (and City Council) must approve a
redevelopment plan, which is a general plan for the development or redevelopment of the
project area. After a public hearing, with at least 10 days published notice, the City Council
must find that:
(i) the land in the project area would not be made available for redevelopment
without the financial aid to be sought;
(ii) the redevelopment plans for the redevelopment areas in the locality will afford
maximum opportunity, consistent with the needs of the locality as a whole, for the
redevelopment of the areas by private enterprise; and
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(iii) the redevelopment plan conforms to a general plan for the development of the
locality as a whole.
Section 469.028, Subd. 2.
b. To undertake, prepare, carry out and operate projects' and to provide for the construction,
reconstruction, improvement, extension, alteration, or repair of any project or any part
thereof. Section 469.012, Subd. 1 d.
C. To give, sell, transfer, convey or otherwise dispose of real or personal property or any
interest therein, and to execute leases, deeds, conveyances, negotiable instruments, purchase
agreement and other contracts or instruments and take action that is necessary or convenient
to carry out the purposes of the HRA Act. Section 469.012, Subd. le.
d. To acquire real or personal property or any interest therein by gifts, grants, purchase,
exchange, lease, transfer, bequest, or otherwise, and by exercise of the power of eminent
domain. Section 469.012, Subd. 1 g.
e. To borrow money or other property and accept contributions, grants, gifts, services or other
assistance from the federal government, state public bodies, or from any other public or
private sources. Section 469.012, Subd. lo.
f. To cooperate with or act as the agent for the federal government, the state or any state
public body, or any agency or instrumentality of the forgoing, in carrying out the HRA Act.
Section 469.012, Subd. 11.
g. To issue bonds for any corporate purposes and to secure the bonds by mortgages upon
property held or to be held by the HRA or by pledge of its revenues, including grants or
contributions. Section 469.012, Subd. 1 q; Section 469.034.
h. To levy a special benefits tax on all property in the HRA's area of operation (in this case, the
City as a whole). The City Council must approve the tax levy either annually or without a
time limitation; in any event, the HRA must file a budget with the City in accordance with
the procedures for executive departments of the City. The special benefits tax may not
exceed .0185% of the taxable market value in the City. Section 469.033, Subd. 6.
i. To carry out studies of the housing and redevelopment needs within its area of operation
and of the meeting those needs. Section 469.012, Subd. lt.
' The term "project," unless otherwise indicated, includes a housing project, a housing
development project, a redevelopment project, and an interest reduction program. Section 469.002,
Subd. 12.
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To lease or rent any dwellings, accommodations, land, buildings, structures or facilities
included in any project. Section 469.012, Subd. lv.
k. To own, hold and improve real or personal property and to sell, lease, exchange, transfer,
assign, pledge or dispose of any real or personal property or any interest therein. Section
469.012, Subd. lw. Sale or lease of land in a redevelopment project generally requires a
public hearing with 10 days published notice and restrictions on use or resale of the property
to accomplish the public purpose of the redevelopment plan. Section 469.029.
To exercise the powers of a City in carrying out a commercial rehabilitation loan program
under Section 469.184, if the City by ordinance so authorizes. Section 469.184, Subd. 7.
m. To make loans to a business, a for - profit or nonprofit organization, or an individual for any
purpose that an HRA is otherwise authorized to carry out under the HRA Act. Section
469.192.
Note than an HRA may issue revenue bonds, but may not issue bonds secured by the City's full
faith and credit, with one exception: the City Council may pledge the City's full faith and credit to
HRA bonds issued to finance "qualified housing development projects." Those projects must be
rental housing, owned by the HRA and intended for occupancy by elderly or persons with no more
than 80% of median income, and where revenues are expected to cover at least 110% of debt
service on the bonds.
In addition to the powers described above, HRAs are one of the "authorities" with the power to
establish tax increment financing districts (with City Council approval) under Sections 469.174 to
469.179. The tax increment must be used to finance or otherwise pay the "public redevelopment
costs" pursuant to the HRA Act, which term is defined to mean the entire cost of a "project" (See
Footnote 1), including administrative expense of the HRA allocable to the project and debt charges
an all other costs authorized to be incurred by the HRA in the HRA Act.
B. EDAs
The powers of an EDA are more ambiguous and complex than those of an HRA. Most of the
powers specified in the EDA Act itself must be exercised within an "economic development
district" (not to be confused with a tax increment financing district with the same name). Until
2010, an EDA economic development district was required to meet all the requirements of a
redevelopment tax increment financing district, including the finding that more than 50% of the
buildings are structurally substandard. The odd result was that, despite the name, the core of the
EDA Act provided powers only in an area that meets stringent redevelopment criteria.
Legislation in 2010 finally corrected this problem by removing the redevelopment tax increment
reference. Now, EDAs may create economic development districts in any contiguous area that the
EDA deems appropriate.
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In addition, EDA Act offers significant flexibility because of its cross - referencing provisions. An
EDA has all the powers of an HRA (described above) and all the powers of a city under Minnesota
Statutes, Sections 469.124 to 469.134 (the "Municipal Development District Act "). The Municipal
Development District Act provides broad authority to carry out economic development. Further, an
EDA may use powers under Sections 469.152 to 469.165 (the "Municipal Industrial Development
Act") for a purpose under the HRA Act or EDA Act, and may use the powers under the HRA Act
and EDA Act for a purpose under the Municipal Industrial Development District Act.
In addition to these cross - referenced powers, the EDA Act includes some specific unique powers,
including the power to become a limited partner in a partnership "whose purpose is consistent with
the authority's purpose" (Section 469.101, subd. 6); to carry out public relations activities in
furtherance of economic development (Section 469.101, subd. 16); and to invest in certain venture
capital businesses (Section 469.101, subd. 23).
The net result is that EDAs generally have similar powers to HRAs, except that the purposes extend
beyond housing and redevelopment to include the broader goals of economic development.
A final point involves tax levies. EDAs have access to two types of tax levies. First, an EDA may
use its HRA powers and levy the HRA tax described above (subject to Council approval). In cities
that have both an EDA and an HRA, the maximum levy (.0185% of market value) probably applies
collectively to the two bodies. That is, if both an EDA and HRA wish to levy a special benefit tax,
they probably need to allocate the statutory limit between them.
Secondly EDA Act authorizes a tax levy for EDAs as described in Section 469.107. If the EDA
requests, a City may (but is not required to) levy a tax "for the benefit of the authority." The
maximum amount is.01813% of the City's taxable market value. Unlike the HRA levy described
above, this is not a separate levy made by the EDA; it is made by the City and is included within the
City's levy limits. As a result this so- called "EDA levy" is not a significant benefit except in
unusual circumstances.
Like HRAs, EDAs may issue revenue bonds, and technically may issue general obligations bonds
secured by the City's full faith and credit (with consent of the city council), but such bonds are
subject to election.
C. PORT AUTHORITY
A port authority may be established only by special legislation, and once established has the powers
described in the Port Act (except as modified by the special legislation). In Roseville, the port
authority powers are granted by Minnesota Statutes, Section 469.083 (the "Roseville Special
Law ").
Rather than authorizing the creation of separate port authority, the Roseville Special Law gives the
City Council the authority to exercise all the powers of a port authority under the Port Act.
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Most powers of a port authority are exercised in "industrial development districts." To establish
such a district, the City Council must find that the district is characterized by "marginal property,"
and that the district is needed to promote "industrial development." Marginal property is defined in
the Port Act as property that suffers from at least one of a number of conditions, such as faulty
planning, lower values, and stagnant or unproductive land. This is more limiting than EDA powers,
which may be exercised in broadly- defined "economic development districts," and EDA purposes
are not limited to industrial development.
In addition, port authorities have the same cross - referenced powers given to EDAs, as described
above. That is, a port authority powers under the Municipal Industrial Development Act for a
purpose under the HRA Act or Port Act, and may use the powers under the HRA Act and Port Act
for a purpose under the Municipal Industrial Development District Act. These cross - referenced
powers are often the most useful tools to a port authority, particularly where the authority wishes to
pursue activities other than industrial development.
The key difference between an EDA and Port Authority is in the powers related to tax levies and
issuance of bonds. At the Port Authority's request, the City must levy up to .1813% of taxable
market value in the City for activities under the Port Act. Like the EDA levy, this amount is within
City levy limits, but unlike the EDA levy, this levy is mandatory if the Port Authority requests the
City to make the levy. In Roseville, this "mandatory" feature is not as relevant, because the City
Council itself effective acts as the Port Authority board.
More importantly, port authorities may issue general obligation bonds, with consent of the City
Council, for any purpose under the Port Act. Unlike bonds issued by either HRAs or EDAs, these
Port Authority general obligation bonds may be issued without election. This is the single most
important advantage of Port Act powers compared to either EDA or HRA powers.
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1991 - 53_
a A RESOLUTION ESTABLISHING THE ROSEMOUNT PORT AUTHORITY,
M A DEVELOPMENT AGENCY
Q
WHEREAS, the Minnesota State Legislature has enacted Laws of Minnesota,
1991, Chapter 291, Article 21, Section 17, authorizing the City of Rosemount to
establish a port authority with the same powers as a port authority established
under Minnesota Statutes, Section 469.049, or other law, as a housing and
redevelopment authority established under Minnesota Statutes, Chapter 469.047,
or other law, and shall constitute an "agency" that -may administer one or more
municipal development districts under Section 469.110; and
WHEREAS, the City of Rosemount wishes to establish such a port authority
andfb= define the relationship between it and the Council by adoption of this
resolution; and
WHEREAS, it is intended that this resolution be amended from time to time
as required to further define or redefine the respective roles of the p,�,sf
authority and the Council regarding development and redevelopment within the City
of Rosemount; and
WHEREAS, it is intended that by this resolution and actions taken
hereunder, the Council of the City of Rosemount shall establish broad policies
for public- assisted development within the City of Rosemount and that the
implementation of such policies be the responsibility of -the port authority; and
WHEREAS, it is the desire of the Council that adoption of this resolution
and the creation of a port authority will result in a conscientious and
coordinated effort to encourage and precipitate future develonmcn+ L,; +ti;.. +I... —nin
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City of Rosemount so as to increase tax base, promote employment and enhance the
health, safety and welfare of City of Rosemount residents; and
WHEREAS, the Council has conducted a public hearing, pursuant to published
notice, as required by Laws of Minnesota, 1991, Chapter 291, Article 21, Section
17;
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
Section 1. Definitions.
"Authority" means the Rosemount Port Authority, a development agency.
"City" means the City of Rosemount, Minnesota.
"Commission" means the Rosemount Port Authority, a development agency.
"Commissioner" means a person serving on the Rosemount Port Authority.
"Council" means the duly elected governing body of the City of Rosemount.
"Enabling Act" means Laws of Minnesota, 1991, Chapter 291, Article 21,
Section 17, authorizing the City of Rosemount -to create a-port authority.
"Enabling Resolution" means this resolution of the Council establishing
the Authority pursuant to the Enabling Act.
"The Development Act" means Minnesota Statutes, Chapter 469.124 to 469.134,
inclusive.
"Executive Director" means the City Administrator.
"The HRA Act" means Minnesota Statutes, Chapter 469.002 to 469.047,
inclusi.ve.
"The Housing Bond Act" means Minnesota Statutes, Chapter 462C.
"Industrial Bond Act" means Minnesota Statutes, Chapter 469.152 to
469.1651, inclusive.
"Project Budget" means a financial budget containing the sources and uses
of public funds to be expended in carrying out the public costs associated with
a Project Plan or Project Area Plan. In the event any or all such public costs
are to be paid with tax increment, the Project Budget shall constitute a "tax
increment financing plan," as described in Section 469.175 of the Tax Increment
Act.
"Project Plan" means an outline for the development or redevelopment of
a geographic area or single parcel which contains a statement of objectives for
improvement of the area as well as a description of public facilities to be
constructed, an estimated schedule of the open space to be created, the
environmental controls to be applied, the property to be publicly acquired and
the condition under which the Authority shall exercise the right of eminent
domain, if any, the proposed reuse of private property, and the general standards
of development. Said plan shall be sufficiently complete to constitute a
"development program" pursuant to Section 469.125, Subdivision 3 of the
Development' Act and a "redevelopment plan" pursuant to Section 469.027. of the
•, HRA Act. - -- - -- _
"The Port Act" means Minnesota Statutes, Chapter 469.048 to 469.068,
inclusive.
"Port District" means the City of Rosemount.
"Tax Increment Act" means Minnesota Statutes, Section 469.174 to 469.191,
inclusive.
Section 2. Establishment.
There is hereby created in the City of Rosemount a port authority which,
subject to the provisions of this Enabling Resolution, shall have all of the
powers, duties and responsibilities of any port authority created pursuant to
the Port Act, or other law, a housing and redevelopment authority created
pursuant to the HRA Act, or other law and which shall constitute an "agency"
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that may administer one or more municipal development districts under Section
469.110. It shall be the role and responsibility of such port authority to carry
out economic and industrial development and redevelopment within the City of
Rosemount in accordance within such general policies as may from time to time
be established by the Council.
Section 3. Legal Status.
The Authority shall be a public body politic and corporate and a political
subdivision of the State of Minnesota. It shall not be considered a department
of the City of Rosemount nor shall the City of Rosemount be liable for its
obligations, unless assumed by the City of Rosemount in writing. Its relationship
to the Council shall be governed by the Enabling Act, this Enabling Resolution
and the various statutes under which it operates, including the Port Act, the
HRA Act, the Development Act, the Industrial Bond Act, the Housing Bond Act and
the Tax Increment Act; provided-that in the.event there is a conflict between
• the terms of this Enabling Resolution and any such statute, the Enabling
Resolution shall control and in the event there is a conflict between the Port
Act and any such statutes, the Port Act shall control; provided further that a
statute granting authority shall not be deemed to be in conflict with a statute
that grants less or no such authority.
Section 4. Name.
The port authority created by the Enabling Act and this Enabling Resolution
shall be known legally as the Rosemount Port Authority, a development agency.
Section 5. Governing Body.
The powers of the Authority shall be vested in the commissioners thereof
in office at any time, a majority of whom shall constitute a quorum for all
purposes. Pursuant to Minnesota Statutes, Section 469.050, Subdivisions I and
. _* 4
3, such commissioners shall be seven (7) in number, shall be residents of the
.
City of Rosemount and shall be appointed and serve as follows:
Seat Number Term
1 1 year
2 2 years
3 3 years
4 4 years
5 5 years
6 6 years
7 6 years
Not less than two commissioners shall also be members of the Council.
Appointments shall be by the Mayor and shall be subject to the approval and
consent of the Council. A vacancy shall be created whenever a commissioner who
is a council member ends council membership, in which case such vacancy shall
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be filled by the mayor with the approval and consent of the Council, for the
balance of the term. If a citizen member of the Commission becomes a member
of the Council or Mayor, a vacancy on the Commission shall be thereby created
and shall be filled by the proper reappointing authority for that seat.
Section 6. Authority Staff.
The commissioners of the Authority shall be empowered to hire such
employees, agents and consultants as they deem proper and as further provided
in the Port Act, including the appointment of an Executive Director of the
Authority who shall have the following powers and duties:
(1) To see that all resolutions, rules, regulations, or orders of the
Authority are enforced.
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(2) To direct and manage the subordinate officers and regular
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employees of the Authority.
. (3) To present to the Authority plans, studies, and
reports prepared for Authority purposes and recommend to the
commissioners for adoption such measures as defined necessary to
enforce or carry out the powers and duties of the Authority or the
efficient administration of the affairs of the Authority.
(4) To keep the Authority fully advised as to its financial
condition, and to prepare and submit to the commissioners the annual
budget and such other financial information as requested.
(5) To recommend to the commissioners for adoption such rules and
regulations as deemed necessary for the efficient operation of the
Authority's functions.
(6) To. perform such other duties as may be prescribed by the
. commissioners.
(7) To make necessary purchases - - -of supplies for the operation of the
Authority in accordance with State and City regulations (City Code).
(8) To establish and maintain a system of filing and indexing records
and reports.
(9) To be responsible for the proper maintenance of all Authority
property and equipment.
Section 7. Authority Officers.
The commissioners of the Authority shall elect officers as provided in
Section 469.051 of the Port Act; provided, however, that the City Clerk shall
be secretary thereto.
Section 8. Reports.
A. At least once annually by April 1st, the Authority shall:
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(1) submit its Enabling Resolution modification recommendations
. to the Council pursuant to Section 2 of the Enabling Act.
(2) appear at a regularly scheduled Council meeting and report to
the Council, Mayor and members of the public regarding the
operational status of the Authority. Such report shall comply
with Section 469.055, Subdivision 2(9) of the Port Act and
shall include a description of current and proposed projects
as well as general development goals for the City of Rosemount.
B. The Authority shall be responsible for all filings and reports
required by the various statutes under which it operates. Copies
of all such reports shall be provided to the Council and Mayor and
shall be available to members of the public unless otherwise
permitted or required by law.
Section 9. Accounting, Budgets and Fiscal Year._
• A. The accounting, maintenance of books and records, establishment and
maintenance of funds and accounts, investment of cash surpluses,
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disbursement of monies and other necessary financial matters of the
Authority shall be the responsibility of the City Financial Director.
Direction of and control over the City Financial Director with
respect to such Authority financial matters shall reside in the
commissioners and the Authority Executive Director; provided,
however, that Authority accounting, investment, fund maintenance and
disbursement shall be consistent with City of Rosemount procedures.
Any conflict between the Authority or its Executive Director and the
City Financial Director with respect to the appropriate
interpretation of this paragraph shall be resolved by the Council.
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B. On or before such date of each year, as the Council may designate,
the Authority shall submit its annual budget to the City
Administrator in a form prescribed by the City Administrator. Such
budget shall include a detailed written estimate of the amount of
money that the Authority expects to need from the City of Rosemount
for Authority business during the next fiscal year and shall
otherwise comply with the Port Act. The Council may impose such
conditions upon the issuance of obligations by the City of Rosemount
for the purpose of funding said Authority budget as it may determine.
The City Administrator shall submit such budget to the Council for
review and approval as a part of the City of Rosemount budgetary
process. The commissioners and staff of the Authority shall appear
before the Council as requested to explain and discuss the content
of the proposed Authority budget.. Upon approval of such budget, the
• Authority shall not exceed total budgeted expenditures without
approval of corresponding budget amendments by the Council; provided,
however, that this provision shall not preclude the Authority from
unilaterally making such line -item changes as it deems appropriate.
C. The fiscal year of the Authority shall be the same as that of the
City of Rosemount.
Section 10. Powers.
A. The Authority may exercise all of the powers contained in the Port
Act, provided that:
1. Before establishing the boundaries of and undertaking public
activities with respect to an industrial development district,
as set forth in Section 469.058 of the Port Act, the Authority
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shall submit a Project Plan and Project Budget to the Council
for approval. Such Project Plan shall be submitted to the
Planning Commission of the City for its review and comment
regarding the consistency of said plan with the City's
comprehensive plan. Consideration by the Council shall be made
at a public hearing upon 10 days published notice in the
official newspaper of the City of Rosemount. The Council may
impose such conditions upon its approval as it determines.
2. Before undertaking public activities within the Port District,
but outside an industrial development district, the Authority
shall submit a Project Plan and Project Budget.to the Council
for approval. Such Project Plan shall be submitted to the
Planning Commission of the City for its review and comment
regarding the consistency of said plan with -the City's
comprehensive plan. Consideration b the Council shall be made
P P Y
at a public hearing upon 10 days published notice in the
official newspaper of the City of Rosemount. The Council rn,;?.v
impose such conditions upon its approval as it determines.
3. The Authority shall not issue obligations without the prior
approval of the Council.
B. The Authority may exercise all of the powers contained in the HRA
Act, provided that:
1. Before establishing the boundaries of and undertaking public
activities with respect to a redevelopment project, as defined
in Section 469.002, Subdivision 14 of the HRA Act, the
Authority shall submit a Project Plan and Project Budget to
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the Council for approval. Such Project Plan shall constitute
10 a "redevelopment plan" pursuant to Section 469.027 of the HRA
Act and shall be submitted to the Planning Commission of the
City of Rosemount for its review and comment regarding the
consistency of said plan with the City's comprehensive plan.
Consideration by the Council shall be made at a public hearing
upon 10 days published notice in the official newspaper of the
City of Rosemount. The Council may impose such conditions upon
its approval as it determines.
2. Before undertaking public activities outside of a
"redevelopment project ", the Authority shall submit a Project
Plan and Project Budget to the Council for approval.
Consideration by the Council shall be made at a public hearing
upon 10 days publ ished notice in the official newspaper of the
J City of Rosemount. The Council may impose such conditions upon
its approval as it determines.
3. The Authority shall not issue obligations under the HRA Act
without the prior approval of the Council.
C. The Authority is hereby appointed Administrator of City of Rosemount
Development Districts, numbers 1 -1 previously established
by the Council.
1. Pursuant to the Development Act, the Authority shall have the
following powers:
a. To acquire property or easements through negotiation.
b. To enter into operating contracts on behalf of the City
of Rosemount for operation of any of the facilities
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authorized to be constructed under the terms of the
Development Act.
C. To lease space to private individuals or corporations
within the buildings constructed under the terms of the
Development Act.
d. To lease or sell land and to lease or sell air rights
over structures constructed under the authority of the
Development Act.
e. To enter into contracts for construction of the several
facilities or portion thereof authorized under the
Development Act.
f. Certify to the Council for acquisition through eminent
domain of property that cannot be acquired by
negotiation,--but is required for implementation of the
development program;
g. Certify to the Council the amount of funds, if any, which
must be raised through sale of bonds to finart� :.
program for industrial development districts.
h. Apply for grants from the Federal Government.
i. Apply for grants from other sources.
D. The Authority may exercise all of the powers of a redevelopment
agency contained in the Industrial Bond Act; provided, however, that
obligations shall not be issued without the prior approval of the
Council.
E. The Authority may exercise all of the powers of a city contained in
the Housing Finance Act; provided authorized to do so by ordinance
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of the Council pursuant to Section 462C.02, Subdivision 6 of the
Housing Finance Act and provided further that obligations shall not
be issued without the prior approval of the Council.
F. The Authority may exercise all of the powers of an authority
contained in the Tax Increment Act, provided that obligations shall
not be issued without the prior approval of the Council.
G. The Authority may exercise such powers as may be contained in other
laws applicable to port authorities or housing and redevelopment
authorities not specifically described herein.
Section 11. Levy.
Pursuant to Section 469.053, Subdivision 4 of the Port Act, the Council
may propose to levy in 1992 .01813 percent of the market value of taxable
property within the City of Rosemount for operation, and .00282 percent of the
market value of the taxable property within the-City of Rosemount for creating
e
and development of industrial development districts, which said levy shall be
taken into account for purposes of the City's levy limit and the proceeds of
which shall be set aside by the City Financial Director for purposes of the
Authority for expenditures by it in accordance with its approved budget.
In the event that the City of Rosemount levies an amount in excess of
.00282 percent of the market value of the taxable property within the City of
Rosemount for the creation and development of industrial development districts,
the City Administrator shall prepare a separate resolution and shall publish the
same, together with a notice of public hearing on said resolution for two
successive weeks in the City's official newspaper. The hearing shall be held
on a date specified in said resolution which is two to four weeks after the first
publication. After the hearing, the Council may decide to take no action or may
12
k�
adopt a resolution authorizing the proposed levy or a lesser levy. A resolution
. { authorizing such levy shall be published in the City's official newspaper. In
1
the event that the City levies an amount in excess of .00282 percent of the
market value of the taxable property within the City of Rosemount, the resolution
shall not be effective if a petition requesting a referendum on said resolution
is filed with the City Cleric within 30 days of publication of said resolution.
The petition must be signed by voters equaling five percent of the votes cast
in the City of Rosemount in the last general election. Then the resolution is
only effective if approved by a majority of those voting on the question. The
referendum must be held at a special or general election before October 1 of the
year for which the levy increase is proposed.
Section 12. Influencing Government Actions.
Neither the Commissioners or the staff of the Authority shall present to
. i Congress, the state legislature, any federal or state agency_, or any member
thereof, proposals regarding the structure and organization of the Authority or
any matter of policy affecting the City of Rosemount generally without the prior
approval of the Council. It is the intention of this section that the Autht;'
be prohibited from representing to these or similar governmental entitles policy
positions which might be in conflict with those held by the Council and Mayor.
Section 13. Amendments.
The Authority shall not act inconsistently with this Enabling Resolution;
provided that a determination by the Council that the limitations imposed by this
resolution have been complied with by the Authority shall be conclusive.
Amendments to this resolution shall be by written resolution and upon notice and
hearing in accordance with Subdivision 3(b) of the Enabling Act.
Section 14. Effective Date.
. The Rosemount Port Authority, a development agency, shall be deemed created
1 as of January 2, 1992.
13
Adopted this 3rd day of �9aj2t-,gmh_pr , 1991
\ \ Vernon J. - pp m6yof
ATTEST:
M. 4talshlCity Clerk
Motion by:- Wippermann seconded by: KI assPn
Voted in favor: Wippermann, rapper, Oxborough, Klassen
Voted against: None
•14
_.1
14
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2001- 34
A RESOLUTION RELATING TO THE ROSEMOUNT PORT AUTHORITY;
AMENDING RESOLUTION NO. 1991— 53
WHEREAS, City Council Resolution No. 1991 -53 established the Rosemount Port Authority
pursuant to the authority of Minnesota Laws 1991, Chapter 291, Article 21, Section 17; and
WHEREAS, the Council has determined that it is appropriate and in the interest of the public to
amend the resolution establishing the port authority as hereinafter provided:
NOW, THEREFORE, BE IT RESOLVED, that the City of Rosemount, Resolution No. 1991-
53, Section 5 is amended to read as follows:
Section 5. Governing Body.
The powers of the Authority shall be vested in the commissioner thereof in office at any
time, a majority of whom shall constitute a quorum for all purposes. Pursuant to Minnesota
Statues, Section 469.050, Subds. 1 and 3, such commissioners shall be seven (7) in number, shall
be residents of the City of Rosemount and shall be appointed and serve as follows:
(1) All mayors and members of the city council shall automatically be appointed
commissioners for a term which coincides with their term of office as mayor or council
member. If a mayor or council member declines to serve as a commissioner, or resigns
from his or her position as commissioner, a vacancy is created which shall be filled by
appointment by the mayor with the approval and consent of the council. The appointment
so made shall be for a term which coincides with the time in office of the individual
council member whose resignation or decision not to serve as a commissioner created the
vacancy.
(2) Commissioners who are not members of the council shall be appointed for terms of three
(3) years. If a vacancy occurs in seat so appointed, including a vacancy created when a
commissioner becomes a member of the city council, a replacement shall be appointed by
the mayor subject to approval and consent of the council.
ADOPTED this 17th day of April, 2001.
ATTEST:
1 1'
CERTIFICATION
RESOLU'T'ION 2000 - 34
I hereby certify that the foregoing is a true and correct copy of a resolution presented to and
adopted by the City Council of Rosemount at a duly authorized meeting thereof, held on the
17th day of April, 2001, as disclosed by the records of said City in my possession.
Motion by:
(SEAL)
Cisewski
Linda J. Jentink, Rosemount City Clerk
Second by:
KIassen
Voted in favor: K I assen, Cisewski , Busho, R i I ey, Edweards
Voted against: None.
Member absent: N o n e .
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2003- 2 5
A RESOLUTION RELATING TO THE ROSEMOUNT PORT AUTHORITY;
AMENDING RESOLUTION NO. 1991 - 53
WHEREAS, City Council Resolution No. 1991 -53 established the Rosemount Port Authority
pursuant to the authority of Minnesota Laws 1991, Chapter 291, Article 21, Section 17; which
resolution was amended by Resolution No. 2001 -34; and
WHEREAS, the Council has determined that it is appropriate and in the interest of the public to
amend the resolution establishing the port authority as hereinafter provided:
WHEREAS, the Public Hearing held this day has been properly noticed and published in the
official city newspaper, The Rosemount Town Pages, on March 7 and 14, 2003.
NOW, THEREFORE, BE IT RESOLVED, that the City of Rosemount, Resolution No. 1991-
53, Section 5, as amended by Resolution No. 2001 -34, is amended to read as follows:
Section 5. Governing Body.
The powers of the Authority shall be vested in the commissioner thereof in office at any
time, a majority of whom shall constitute a quorum for all purposes. Pursuant to Minnesota
Statues, Section 469.050, Subds. 1 and 3, such commissioners shall be seven (7) in number, shall
be residents of the City of Rosemount and shall be appointed and serve as follows:
(1) All mayors and members of the city council shall automatically be appointed
commissioners for a term that coincides with their term of office as mayor or council
member. If a mayor or council member declines to serve as a commissioner, or resigns
from his or her position as commissioner, a vacancy is created which shall be filled by
appointment by the mayor with the approval and consent of the council. The appointment
so made shall be for a term in office of the individual council member whose resignation
or decision not to serve as a commissioner created the vacancy.
(2) Commissioners who are not members of the council shall be appointed for terms of six (6)
years. If a vacancy occurs in seat so appointed, including a vacancy created when a
commissioner becomes a member of the city council, a replacement shall be appointed by
the mayor subject to approval and consent of the council.
ADOPTED this 20th day of March, 2003.
I_J
1
ATTEST:
Linda J. Jentink, City Jerk
RESOLUTION 2003 - 2 5
William H. Droste, Mayor
CERTIFICATION
I hereby certify that the foregoing is a true and correct copy of a resolution presented to and
adopted by the City Council of Rosemount at a duly authorized meeting thereof, held on the
March 20, 2003, as disclosed by the records of said City in my possession.
(SEAL)
Linda J. Jentink, Rosemount City Clerk
Motion by: DeBettignies Second by: Riley
Voted in favor: Strayton, Riley, DeBettignies, Shoe- Corrigan, Droste
Voted against: None
Member absent:
2
f I
BYLAWS
OF
ROSEMOUNT PORT AUTHORITY
A DEVELOPMENT AGENCY
Article I. Established
There is hereby created by the City Council of the City of Rosemount, in accordance
with Minnesota Statutes, 469.0813 and City of Rosemount Enabling Resolution No.
1991 -53, the Rosemount Port Authority, a Development Agency.
Article II. F=Qs
The purpose of the Port Authority, a Development Agency, is to carry out economic
development and redevelopment within the City by acting as the development authority
for the City on behalf of the City's interest in continued new job development and
increased tax base.
Article 111. Port Authority Members
The. Port Authority Commission shall consist of seven (7) members appointed in
accordance with the provisions of the Enabling Resolution No. ' 1991 -53, Section 6.
Article IV. Seal of Port Authority
The seal of the Port Authority shall be in the form of a circle and shall bear the na.r. --
of the Port Authority, the year established and contain the logo of the City of
Rosemount.
Article V. Qfficers
Section . l . Chairperson. The Chairperson shall preside at all meetings and
shall have the duties and powers usually attendant upon such
officer. The Chairperson shall be elected by the 04mmission
members at the annual meeting.
Section 2, Vice Chai=rson. The Vice Chairperson s%all, in tt absence or
disability of the Chairperson, exercise all the powers dnd perform
the duties of the Chairperson. The Vice Chairperson shall be
elected by the Commission members at the annual meeting.
Section 3, Executive Secretary. The City Clerk shall act as Executive
Secretary to the Port Authority and shall keep a, record of all
proceedings of Commission meetings. The Secretary shall also
give notice of all meetings of the Commission and shall perform
such other duties as prescribed by the Commission.
Section 4. Treasurer. The Treasurer shall receive and be responsible. for all.
monies from whatever source derived and the same shall be
deemed public funds. Monies shall be disbursed only on checks
signed by the Executive Director or the City Finance Director.
The Port Authority Treasurer, when the Chairperson-and Vice
Chairperson are absent, shall be responsible for chairing the
meeting.
The City Finance Director will serve as the Port Authority
Assistant Treasurer and be responsible for accounting, investment,
fund maintenance and disbursement consistent with city procedures _
under the direction and control of the Commissioners. Other
accounting procedures shall be in accordance with Minn. Stat.
469.049, et seq. and Enabling Resolution No. 1991 -53.
Az'dele VI. AdinUstradve Structure
Section 1. Executive Director. The Port Authority shall employ an
Executive Director who shall have general supervision over the
administration of its business and affairs, subject to the direction
of the Port Authority. He /she shall be charged with the
management of the development projects of the Port Authority.
This person will be the City Administrator of the City of
Rosemount.
Section 2. Assistant Director. The Port Authority may employ an Assistant
Director who shall assist the Executive Director in the
administration of the business and affairs of the Port Authority'
The Assistant Director shall have the responsibility to coordinate
meetings with public and private developers, pursuant to
development /redevelopment projects and general business of the
Port Authority.
2
The Assistant Director shall also be responsible for reviewing and
updating the Redevelopment Plan and written reviews of all
development proposals which come before the Port Authority.
Said reviews and other memorandums shall be directed to the Port
Authority through the Executive Director.
The Assistant Director shall sit at regular or special meetings of
the Port Authority in the absence of the Executive Director, and
shall attend other meetings as requested by the Port Authority or
Executive Director.
Section 3. Additional Personnel. The Port Authority may from time to time
employ such personnel as it deems necessary to exercise its
powers, duties and functions as prescribed by law.
Article VII. Meetings of the Port Authorill
Section 1. Meeting Place. The meetings shall be at such a place in
Rosemount, Minnesota, as the Commissioners shall from time to
time designate. All meetings, except as otherwise authorized or
provided by law, shall be open to the public. The Chairperson
may change the meeting place by giving five (5) days written
notice to Commission members.
Section 2. Time of Meetings.
A. Regular Meetings. Regular meetings shall be held twice
each month at the time and date specified by the Port
Authority.
B. Special Meetings. A special meeting may be called by the
Chairperson, the Executive Director, or by any three (3)
Commissioners by written request filed with the Executive
Director who shall mail or personally deliver to all
members notice of the time and place of such meeting at
least twenty-four (24) hours in advance of the scheduled
meeting time. Special meeting notices must be posted and
shall state time, place and purpose of the meeting and no
other business shall be considered.
3
C. Executive Session. Any business, properly before the Port
4uthority, which qualifies as attorney client or otherwise
meets the legal standards for closed (Executive) session
meetings, shall, following procedures established for
convening such meetings, be in order. Only that business,
for .which the session was convened shall be'in order.
D. Annual Meeting. The Annual Meeting shall be the first
meeting in February and held with the regular meeting at
the time and date specified by the Port Authority.
Section 3. Quorum. A majority of the commissioners is required to
constitute a quorum. When a quorum is in attendance at a
meeting, action may be taken upon a vote of a majority in
attendance. No voting shall be done by proxy.
Section 4. Governance of Meetings. The meetings of the Port Authority
shall be governed by Robert's Rules of Order, provided that said
rules shall be construed liberally to afford the Port Authority .
flexibility in the conduct of its meetings.
The Chairperson will at his/her prerogative control discussion
among board members and regulate public comment to facilitate
adequate discussion, consideration, and decision making.
Section 5. Conflict of Interest. Personal viewpoints are not to be represented
to outside organizations or individuals as being those of the
authority, city, or city operating departments. Special or personal
interests, which may not represent the betterment of the
community must remain separate from the commissioners'
obligations and actions. Conflicts of interest shall be avoided by
all commissioners at all times.
City Policy AD -1, Committee Selection Policy; shall apply, to all
actions of the authority's members.
Article VM. Manner of Voting
The voting on all questions coming before the Port Authority shall be by roll call, and
the yea and nay votes shall be entered upon the minutes of such meeting.
4
Article IX. Order of Business
1. Call to Order
2. Consent
A. Approval of Minutes
B. Bills and Communications
C. Other Items Not Requiring Discussion
3. Old Business
4. New Business
5. Chairperson's Report
6. Executive Director's Report
7. Adjournment
Article X. Committees
The Chairperson shall appoint such advisory committees and subcommittees as he/she
determines are necessary and select its members. No committee shall consist of more
than five (5) members.. Committee and subcommittee members shall consist of
commissioners and /or other persons selected by the Chairperson.
The Chairperson shall define the purpose of the committee and subcommittee and the
expected length of time necessary to complete a report. At any time these members
may be replaced or removed as deemed necessary by the Chairperson.
Article M. Annual Budget and Annual Report
The Rosemount Port Authority, a Development Agency, shall develop an annual
budget consistent with the requirements of Enabling Resolution No. 1991 -53
Rosemount City Code and Minnesota Statutes, Chapter 469, et seq.
An Annual Report shall be presented by the Port Authority to the City Council each
year during the month of April. reviewing Port Authority plans, projects and
expenditures of the previous year.
All other reports shall be kept and distributed in accordance with various statutes and
Enabling Resolution No. 1991 -53.
5
.
Article X11. Rowers
The' Port Authority may exercise all of the powers contained in the Minnesota
Statutes, Chapter 469, as modified by Section 469.0813; and according to Enabling
Resolution No. 1991 -53.
Article XIII. AMendments' to Bylaws '
The Bylaws may be amended by a vote of a majority of the Commissioners only when
the proposed amendment has been submitted in writing to all the Commissioners two
weeks prior to the meeting at which the amendment to be considered.
Article XIV. Approval of Bylaws
These Bylaws and any amendments to them shall be subject to the approval of the
Rosemount City Council.
Adopted: May 3 , 1993 at a regular meetingof the
Rosemount Port Authority, a Development Agency.
ATTEST:
Executive Director
6
Approved by the Rosemount City Council on June 15 , 1993
at a regular City Council meeting.
7
May
Certification
Date
Type of District
May -79
Redevelopment
Mar -90
Economic Development
Jan -95
Redevelopment
Apr -96
Economic Development
Aug -97
Economic Development
Jul -04
Redevelopment
TIF Districts - City of Rosemount
*Budget modified several times from original
** Required decertification date; was decertified earlier due to no activity
* ** Expenditures as of 12/31/09
* **
District
Decertified
4/1/2001
1/19/1998
12/02/1997 **
12/31/2004
4/1/2008
12/1/2031
Amount
Location
TIF Budget
Expended
Downtown
$13,519,918*
$8,825,183
Knutson
$3,049,232*
$162,156
Carlson
$2,125,000
$0
Business Park
$15,306,000
$9,045,668
Endres
$500,000
$298,126
Downtown
$75,500,000
$7,508,313
*Budget modified several times from original
** Required decertification date; was decertified earlier due to no activity
* ** Expenditures as of 12/31/09
* **
District
Decertified
4/1/2001
1/19/1998
12/02/1997 **
12/31/2004
4/1/2008
12/1/2031