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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. 2 470 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: 3667060 KG400 -12 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 SJB- 222120vl 2 (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. SJB- 222120v1 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. SJB- 222120v1 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. sJB- 222120v1 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. SJB- 222120vl 6 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 .s 1 .l 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" 3 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 • 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. i (2) To direct and manage the subordinate officers and regular 5 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: F 1 . � 6 (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, .1 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. 7 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 3 8 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 't . Z 9 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 10 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 l i 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