05-15-17 Complete AgendaE C O N O MIC D E V E L O P ME N T AU T H O R IT Y ME E TIN G
R IC H F IE L D MU N IC IPAL C EN TER, C O U N C IL C H AMB E R S
MAY 15, 2017
7:15 P M (I MMEDI AT ELY FO L L OWI NG THE H R A M EE T I N G)
Roll C all
N E W B U SIN E S S
1.C onsideration of the approval of a resolution establishing the Richfield E conomic D evelopment A uthority and
approving certain matters in connection therewith.
S taff Report No. 1
2.C onsideration of the election of officers for the Ri chfield E conomic D evelopment A uthority.
S taff Report No. 2
3.A djournment
Auxiliary aids for individuals with disabilities are available upon request. R equests must be made at least 96
hours in advance to the C ity Clerk at 612-861-9738.
AGENDA SECTION:NEW BUSINESS
AGENDA ITEM #1.
STAFF RE P ORT NO. 1
E CONOMIC DEVELOPME NT AUT HORIT Y
ME E T ING
5/15/2017
RE P O RT P RE PA RE D B Y: J ohn S tark, C ommunity D evelopment D i rector
D E PA RTM E NT D IRE C TOR RE V IE W: J ohn S tark, C ommunity D evelopment D i rector
5/10/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
5/10/2017
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the approval of a resolution establishing the Richfield E conomic D evelopment
Authority and appr oving certain matters in connection therewith.
E X E C UT IV E S UM M ARY:
At both the 2016 goal setting and budget presentations, C ity staff had recommended the c onsideration of the
formation of an E conomic D evelopment Authority (E D A) to the Richfield City C ounc il. Based on that
rec ommendation, the C ity Council and Housing and Redevelopment Authority (HRA ) held joint work sessions
on March 20 and A pril 25, 2017, to discuss the topic .
At eac h of those meetings, there was a general consensus that the c reation of an E D A would provide both
the authority and a funding mec hanism (through an E D A levy ) to provide benefic ial economic development,
business assistanc e, and housing assistance programming. I n particular, an E D A would provide a long-term
funding solution to continuing the Kids@Home and Transformation Loan programs.
As a result of these ongoing disc ussions and staff recommendations, the Richfield C ity Council approved a
resolution authorizing the creation of an E D A at its May 9, 2017, meeting. Acc ording to that resolution, the
composition of the E D A's Board of Commissioners is to be coinc idental to that of the HRA.
As a result of the City C ounc il's authorization of an E D A, the newly formed E D A must now approve a
resolution confirming its establishment. This resolution includes a request that the City enact a levy of up to
$600,000 in 2018 and it also inc ludes adoption of E D A bylaws.
RE C O M M E ND E D AC T IO N:
By motion: Approve a resolution establishing the Richfield Economic D evelopment Authority and
approving cer tain matters in connection therewith.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
City staff and the City Council have disc ussed the c reation of an E conomic D evelopment
Authority (E D A) on a number of oc casions, inc luding:
The 2016 City Counc il Goal S etting Session on March 3, 2016;
The presentations of the proposed budget to the City Council on August 31, 2016;
A joint work session of the C ity Council and HRA on March 20, 2017; and,
A joint work session of the City C ounc il and HRA on April 25, 2017.
At eac h of those meetings, there was a general c onsensus that the c reation of an E D A, and the
programming that an E D A could administer, would be beneficial to the c ommunity. I n particular,
an E D A would provide a long-term funding solution to c ontinuing the Kids@Home and
Transformation Loan programs.
On May 9, the Richfield City Counc il adopted an enabling resolution establishing the Ric hfield
Economic D evelopment Authority.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
An E D A is established by the City Council holding a public hearing and adopting an enabling
resolution per State Statute 469.091 (1).
On May 9, the Richfield City Counc il adopted an enabling resolution establishing the Ric hfield
Economic D evelopment Authority.
C.C R IT IC AL T IMIN G ISSU E S:
I n order to impose an E D A levy in 2018, the City must form an E D A prior to J uly 1, 2017.
This resolution must be approved prior to the establishment of an E D A or taking any actions as an
E D A.
D.F IN AN C IAL IMPAC T:
Acc ording to an analysis conducted by Rebecc a Kurtz of Ehlers Associates, I nc. (the City/HRA
financial consultants), the impact of the maximum E D A levy on a Ric hfield homeowner with a
homesteaded property with a value between $175,000 - $200,000 will be 28 to 33 cents per year.
E.L E GAL C ON S ID E R AT ION :
J ulie E ddington of Kennedy and Graven will serve as Legal Counsel to the ED A. Ms. Eddington
drafted the attac hed resolution.
ALT E R N AT IV E R E C O MME N D AT IO N(S):
Adopt the resolution with minor amendments as proposed by the Board of Commissioners with the
assent of the ED A Legal Counsel.
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
E D A Attorney J ulie Eddington (Kennedy & Graven)
AT TAC H ME N TS :
D escripti on Type
Resolution Resolution L etter
B ylaws B ackup Materi al
496941v1 JAE RC260-1
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. ____________
RESOLUTION ESTABLISHING THE RICHFIELD ECONOMIC
DEVELOPMENT AUTHORITY; AND APPROVING CERTAIN
MATTERS IN CONNECTION THEREWITH
BE IT RESOLVED BY the Board of Commissioners of the Richfield Economic Development
Authority (the “EDA”) as follows:
1. Pursuant to Resolution No. 11359, adopted by the City Council of the City of Richfield,
Minnesota (the “City”) on May 9, 2017 (the “Enabling Resolution”), the City Council of the City established
the EDA in accordance with Minnesota Statutes, Minnesota Statutes, Sections 469.090 through 469.1082, as
amended (the “Act”), to promote and to provide incentives for economic development in the City.
2. The Enabling Resolution provides that the EDA has and may exercise all of the powers
conferred by the Act upon a housing and redevelopment authority of the City.
3. The EDA approves and adopts the Bylaws of the EDA currently on file with the Executive
Director of the EDA.
4. The EDA approves and adopts the official seal of the EDA currently on file with the
Executive Director of the EDA.
5. The EDA hereby requests that the City levy a tax in 2017 in the amount equal to 0.01813%
of the estimated market value of taxable property within the City (expected to be approximately $600,000)
with respect to taxes payable in calendar year 2018. Such request is made in accordance with Section
469.107, subdivision 1 of the Act.
6. The Executive Director of the EDA is authorized and directed to take whatever steps are
necessary to give effect to this resolution. The President and Executive Director are authorized and directed
to execute, deliver and accept on behalf of the EDA any and all documents and instruments necessary to give
effect to this resolution.
Approved by the Board of Commissioners of the Richfield Economic Development Authority this
15th day of May, 2017.
President
ATTEST:
Executive Director
496926v1 JAE RC260-1
BYLAWS OF THE
RICHFIELD ECONOMIC DEVELOPMENT AUTHORITY
ARTICLE I – THE AUTHORITY
Section 1. Name of Authority. The name of the economic development authority shall
be the “Richfield Economic Development Authority” (the “Authority”).
Section 2. Seal of Authority. The seal of the Authority shall be in the form of a circle and
shall bear the name of the Authority.
Section 3. Office of Authority. The offices of the Authority shall be at City Hall in the City
of Richfield, Minnesota, but the Authority may hold its meetings at such other place or places as
it may designate by resolution.
Section 4. Official Newspaper. The official newspaper shall be the official newspaper
designated by the City as its official newspaper each year.
ARTICLE II – BOARD
Section 1. Number and Appointment of Commissioners. The Authority shall consist of a
governing body of five commissioners (the “Board”). Two commissioners shall be members of
the City Council and three commissioners shall be members at large. The terms of the
commissioners who are also members of the City Council shall coincide with their terms of
office as members of the City Council. The three at large commissioners shall be the three at
large commissioners of the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the “HRA”). The terms of the commissioners at large shall be six years.
At any time an at large commissioner of REDA is not also a commissioner of the HRA, such
commissioner’s term on REDA shall terminate.
ARTICLE III – OFFICERS
Section 1. Officers. The officers of the Authority shall be a President, Vice-President,
Treasurer, Secretary, and Assistant Treasurer, each of whom shall have the usual duties and
powers of such offices, the duties and powers given to them by the Board from time to time, and
those duties and powers prescribed by Minnesota law or these bylaws. The President,
Treasurer, and Secretary shall be elected annually by the Board. No commissioner may be
both President and Vice-President simultaneously. No commissioner may be both Treasurer
and Assistant Treasurer simultaneously. The Secretary and the Assistant Treasurer need not
be commissioners.
Section 2. President. The President shall preside at all meetings of the Board. Except
as otherwise authorized by resolution of the Board, the President shall sign all contracts, deeds,
and other instruments made or authorized by the Board. At each meeting the President shall
submit such recommendations and information as he or she may consider proper concerning
the business, affairs, and policies of the Authority.
Section 3. Vice-President. The Vice-President shall perform the duties of the President
in the absence or incapacity of the President. In case of the resignation or death of the
2
496926v1 JAE RC260-1
President, the Vice-President shall perform the duties of the President until such time as the
Board shall elect a new President.
Section 4. President Pro Tem. In the event of the absence or incapacity of both the
President and the Vice-President at any meeting, the Board may appoint any remaining
commissioner as President Pro Tem to preside at such meeting.
Section 5. Secretary. The Secretary shall keep the minutes of all meetings of the Board
and shall maintain all records of the Authority and shall have such other duties and
responsibilities as the Board may from time to time prescribe by resolution.
Section 6. Treasurer. The Treasurer shall have the care and custody of all funds of the
Authority and shall deposit the same in the name of the Authority in such national or state bank
or banks in Minnesota as the Board may select. The Treasurer shall sign all Authority orders
and checks for the payment of money and shall pay out and disburse such moneys under the
direction of the Board. The Treasurer shall keep regular books of accounts showing receipts
and expenditures and shall render to the Board, at least annually (or more often when
requested), an account of such transactions and also of the financial condition of the Authority
by filing a detailed financial statement with the Secretary. The Treasurer is responsible for the
acts of the Assistant Treasurer and must give bond as required by law.
Section 7. Assistant Treasurer. The Assistant Treasurer has the powers and duties of
the Treasurer if the Treasurer is absent or disabled.
Section 8. Executive Director. The Authority shall employ an Executive Director who
shall be the chief executive officer of the Authority and shall have general supervision over the
administration of the Authority’s business and affairs, subject to the direction of the Authority.
He or she shall have such additional responsibilities and authority as the Board may from time
to time by resolution prescribe. Initially, the City Manager shall serve as the Executive Director
of the Authority. The Executive Director may designate the City’s Director of Community
Development as acting Executive Director during periods when the Executive Director is absent
or incapacitated.
Section 9. Other Administrative Officers. The Authority may designate an assistant to
the Secretary who shall keep the records of the Authority, shall act as recorder of the meetings
of the Authority and record all votes, and shall keep a record of the proceedings of the Authority
in a journal of proceedings to be kept for such purpose, and shall perform all duties incidental to
his or her office. He or she shall keep in safe custody the seal of the Authority and shall have
power to affix such seal to all contracts and instruments authorized to be executed by the
Authority.
Section 10. Additional Employees. The Authority may from time to time such personnel
as it deems necessary to exercise its powers, duties, and functions, including but not limited to a
chief engineer, other technical experts and agents, and other employees. The selection and
compensation of such personnel shall be determined by the Board.
Section 11. Advisory Committees. The Authority may by resolution establish one or
more advisory committees to the Authority.
Section 12. Signature Authority. The following signature authority shall be authorized
for transactions executed under direction of the Board:
3
496926v1 JAE RC260-1
(A) All orders and checks of the Authority for payment of money as directed
by the Board shall be signed by the ______________ [NOTE: must be an officer] and
the Treasurer.
(B) All contracts, deeds, and other instruments made or authorized by the
Board, except as otherwise authorized by resolution of the Board, shall be signed by the
President and the Executive Director.
(C) The Vice-President shall have the capacity to sign as an alternate officer
of the Authority under extenuating circumstances such as lengthy executed absence,
vacancy, termination, resignation, incapacitation or death of the President or of the
Executive Director. The Vice-President may sign as an alternate for only one absent
individual for any Authority matter until the absent individual has returned or a successor
is appointed to fill the office. The Vice-President may not sign in the capacity of more
than one individual for any particular item requiring more than one signature. For
purposes of this definition, absent is defined as a period, usually significant in length,
during which an officer is away and/or unable to fulfill the officer’s role within the
Authority leading to the potential for business issues of the Authority to be delayed
and/or deadlines to be missed.
ARTICLE IV – FINANCIAL MATTERS
Section 1. Fiscal Year. The fiscal year of the Authority shall be the same as the fiscal
year of the City.
Section 2. Accounting System and Audits; Books and Records. The financial records
and financial statements of the Authority shall be prepared, audited, filed, and published or
posted in the manner required for the financial statements of the City. The books and records of
the Authority shall be public records maintained in accordance with state law and with such
rules, regulations, and ordinances adopted by the City for maintaining public records.
Section 3. Public Money; Checks. All Authority money is public money. An Authority
check must be signed as provided in Section 12 under Article III – Officers. The check must
state the name of the payee and the nature of the claim for which the check was issued.
Section 4. Reports to the City. Annually, at a time and in a form fixed by the City
Council, the Authority shall make a written report to the City Council giving a detailed account of
its activities and of its receipts and expenditures during the preceding calendar year, together
with additional matters and recommendations the Authority deems advisable for the economic
development of the City. The Authority shall also submit a report to the City Council annually
within 60 days of the anniversary date of the adoption of the enabling resolution stating whether
and how the enabling resolution should be modified.
Section 5. Financial Statement. Annually, or more often, the Authority shall examine the
Treasurer’s detailed financial statement, together with the Treasurer’s vouchers, filed with the
Secretary. The financial statement must show all receipts and disbursements, their nature, the
money on hand, the purposes to which the money on hand is to be applied, the Authority’s
credits and assets, and the Authority’s outstanding liabilities in a form required for the City’s
financial statements. If the Authority finds that the statement and vouchers are correct, it shall
approve them by resolution and enter the resolution in its records.
4
496926v1 JAE RC260-1
Section 6. Budget to the City. The Authority shall annually, at a time fixed by the City,
send its budget to the City Council. The budget must include a detailed written estimate of the
amount of money that the Authority expects to need from the City to do Authority business
during the next fiscal year. The needed amount is what is needed in excess of any expected
receipts from other sources.
Section 7. Employees, Services, Supplies, and Contracts. The Authority shall have all
of the power and do all of the things permitted by Minnesota Statutes, Section 469.097, as
amended, including but not limited to employing an Executive Director, a chief engineer,
technical experts and other employees as it may require; contracting for the services of
consultants, agents, public accountants, legal services, and such other persons or services as it
may need to perform its duties and exercise its powers; purchasing supplies and materials; and
using City facilities, offices, and staff, including the City engineer and City attorney, in the
exercise of its powers and the performance of its duties.
Section 8. Execution of Contracts. The Authority may make and enter into contracts
pursuant to Minnesota Statutes, Section 469.101, as amended, and other applicable law. All
contracts, notes, and other written agreements or instruments to which the Authority is a party
or by which the Authority may be bound must be executed as provided in Section 12 under
Article III – Officers. If the president or the executive director is absent or otherwise unable to
execute a document, the vice president may execute the document in place of one individual
but not both.
ARTICLE V – MEETINGS
Section 1. Annual Meeting. The annual meeting of the Authority shall be held on the
________ in January at _____ p.m. at the regular meeting place of the Authority.
Section 2. Regular Meetings. Monthly meetings shall be held without notice at the
regular meeting place of the Authority on the _____________ of each month at _______ p.m.
unless the same shall be a legal holiday, in which event said meeting shall be held on the next
succeeding secular day.
Section 3. Special Meetings. Special meetings of the Authority may be called by the
President or any two commissioners of the Authority for the purpose of transacting any business
designated in the call. The call for a special meeting may be delivered at any time prior to the
time of the proposed meeting to each member of the Authority or may be mailed to the business
or home address of each commissioner of the Authority at least two (2) days prior to the date of
such special meeting. At such special meeting no business shall be considered other than as
designated in the call, but if all of the members of the Authority are present at a special meeting,
any and all business may be transacted at such special meeting.
Section 4. Quorum. The powers of the Authority shall be vested in the commissioners
thereof in office from time to time. Three commissioners shall constitute a quorum for the
purpose of conducting its business and exercising its powers and for all other purposes, but a
smaller number may adjourn from time to time until a quorum is obtained. When a quorum is in
attendance, action may be taken by the Authority upon a vote of a majority of the
commissioners present.
5
496926v1 JAE RC260-1
Section 5. Order of Business. At the regular meetings of the Authority the following
shall be the order of business:
1. Roll Call.
2. Approval of the Minutes of the Previous Meeting.
3. Reports of the Executive Director.
4. Unfinished Business.
5. New Business.
6. Adjournment.
All resolutions shall be in writing and shall be copied in the journal of the proceedings of
the Authority.
Section 6. Combining Administrative Offices; Compensation. The compensation of the
Executive Director and other personnel of the Authority shall be determined by the Authority.
Any two or more administrative offices may be combined.
Section 7. Additional Duties. The officers of the Authority shall perform such other
duties and functions as may from time to time be required by the Authority or the Bylaws or
rules and regulations of the Authority.
Section 8. Executive Director. The Executive Director shall be appointed by the
Authority. Any person appointed to fill the office of Executive Director or any vacancy therein,
shall have such term as the Authority fixes, but no commissioner of the Authority shall be
eligible for this office.
Section 9. Vacancies. A vacancy is created in the membership of the Authority when a
commissioner who is also a City Council member ends his or her City Council membership. A
vacancy for this or another reason must be filled for the balance of the unexpired term, in the
manner in which the original appointment was made. The City Council may set the term of the
commissioners who are members of the City Council to coincide with their term of office as
members of the City Council. Should the office of President, Vice-President, or Secretary
become vacant, the Authority shall elect a successor from its membership at the next regular
meeting, and such election shall be for the unexpired term of said office.
ARTICLE V – AMENDMENTS
Section 1. Amendments to Bylaws. The Bylaws of the Authority shall be amended only
with the approval of at least three of the members of the Authority at a regular or a special
meeting.
Adopted: May 15, 2017
AGENDA SECTION:NEW BUSINESS
AGENDA ITEM #2.
STAFF RE P ORT NO. 2
E CONOMIC DEVELOPME NT AUT HORIT Y
ME E T ING
5/15/2017
RE P O RT P RE PA RE D B Y: J ared Voto, E xecutive A ide/A nalyst
D E PA RTM E NT D IRE C TOR RE V IE W: S teven L . D evich, E xecutive D irector
5/11/2017
O TH E R D E PA RTM E NT RE V IE W: N/A
C ITY M A NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
5/11/2017
I T E M F O R C O UNC I L C O NS I D E RAT IO N:
Consideration of the election of officers for the Richfield Economic Development Authority.
E X E C UT IV E S UM M ARY:
The bylaws of the Richfield Ec onomic Development Authority (E D A) provide that the E D A elec t officers
annually. At this first meeting of the E D A, the Board should elect the following officers:
President
Vice-President
Treasurer
Secretary (not required to be an E D A Commissioner)
Assistant Treasurer (not required to be an E D A C ommissioner)
RE C O M M E ND E D AC T IO N:
By Motion: Elect officers for the Richfield E conomic D evelopment Author ity.
B AS IS O F RE C O M M E ND AT IO N:
A.H IS TOR IC AL C ON TEXT
Provided in the Exec utive Summary.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The E D A by laws provide for the election of officers.
C.C R IT IC AL T IMIN G ISSU E S:
None
D.F IN AN C IAL IMPAC T:
N/A
E.L E GAL C ON S ID E R AT ION :
None
ALT E R N AT IV E R E C O MME N D AT IO N(S):
None
P R IN C IPAL PAR TIE S EXP E C T E D AT ME E T IN G:
N/A