10-15-2018 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 T IN G
R IC H F IE L D MU N IC IPAL C E N TE R, C O U N C IL C H AMB E R S
O C TO B ER 15, 2018
7:15 PM (I MME D I AT ELY FO L L OWI NG THE HRA ME ETI NG)
C all to Order
Approval of the Minutes
A pproval of the minutes of the regular E conomic D evelopment A uthority meeting of A ugust 20, 2018.
AG E N D A APPR O VAL
1.A pproval of the A genda
R E S O L U T IO N S
2.C onsideration of the adoption of a resolution approving an Inclusionary A ffordable Housing P olicy.
S taff Report No. 6
O T H E R B U S IN E S S
3.C onsideration of the adoption of an amended version of the B ylaws of the Richfield E conomic D evelopment
A uthority.
S taff Report No. 7
4.C onsideration of the appointment of a new E xecutive D irector of the E conomic D evelopment A uthority to serve
following the retirement of current E xecutive D irector S teve D evich.
S taff Report No. 8
E D A D ISC U SSIO N IT E MS
5.E D A D iscussion Items
E X E C U T IV E D IR E C TO R R E P O R T
6.E xecutive D irector's Report
C LAIMS AN D PAYR O L LS
7.C laims and P ayrolls
8.A djournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96
hours in advance to the City Clerk at 612-861-9738.
ECONOMIC DEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
August 20, 2018
CALL TO ORDER
The meeting was called to order by President Supple at 8:23 p.m.
EDA Members Mary Supple, President; Pat Elliott; Michael Howard; Sue Sandahl; and
Present: Erin Vrieze Daniels.
Staff Present: Steve Devich, Executive Director; John Stark, Community Development
Director, and Kate Aitchison, Housing Specialist.
APPROVAL OF THE MINUTES OF THE REGULAR ECONOMIC DEVELOPMENT AUTHORITY
MEETING OF MARCH 19, 2018.
M/Vrieze Daniels, S/Howard to approve the minutes of the regular Economic Development
Authority meeting of March 19, 2018.
Motion carried 5-0.
Item #1
APPROVAL OF THE AGENDA
M/Sandahl, S/Vrieze Daniels to approve the agenda.
Motion carried 5-0.
Item #2
CONSIDERATION OF THE ADOPTION OF RESOLUTIONS APPROVING
PROPOSED PROPERTY TAX LEVY FOR PAYABLE 2019 FOR CERTIFICATION
TO HENNEPIN COUNTY. (S.R. NO. 5)
Community Development Director Stark presented Staff Report No. 5.
Commissioner Sandahl asked how many transformation loans could be made with the
$130,000 budgeted. Housing Specialist Aitchison stated that 6 were made this year, but the overall
number depends on the loan amount. Recipients can receive anywhere from $7,500-$25,000
Chair Supple questioned how the Kids@Home program is marketed. Community
Development Director Stark stated that a partnership with the school has always been part of it, but
that staff is exploring other ways as well.
EDA Meeting Minutes -2- August 20, 2018
M/Howard, S/Vrieze Daniels to adopt resolutions approving the 2019 Proposed Economic
Development Authority Budget and Tax Levy and 2018 Revised Economic Development Authority
Budget.
Commissioner Howard stated that in the second year, the EDA is doing a good job of laying
out priorities and tweaking things.
Motion carried 5-0.
Item #3
EDA DISCUSSION ITEMS
None.
Item #4
EXECUTIVE DIRECTOR REPORT
Devich stated that he has nothing to report.
Item #5
CLAIMS AND PAYROLL
M/Howard, S/Sandahl that the following claims and payroll be approved:
U.S. BANK 4/16/2018
EDA Checks: 20044-20053 $6,475.00
TOTAL $6,475.00
U.S. BANK 5/21/2018
EDA Checks: 20054-20064 $6,920.25
TOTAL $6,920.25
U.S. BANK 6/18/2018
EDA Checks: 20065-20075 $6,357.25
TOTAL $6,357.25
U.S. BANK 7/16/2018
EDA Checks: 20076-20085 $10,475.00
TOTAL $10,475.00
U.S. BANK 8/20/2018
EDA Checks: 20086-20094 $5,475.00
TOTAL $5,475.00
Motion carried 5-0.
EDA Meeting Minutes -3- August 20, 2018
ADJOURNMENT
The meeting was adjourned by unanimous consent at 8:32 p.m.
Date Approved: October 15, 2018
Mary B. Supple
EDA President
Kate Aitchison Steven L. Devich
Housing Specialist Executive Director
AGENDA SECTION:RESOLUTIONS
AGENDA ITEM #2.
S TAFF REPORT NO. 6
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
10/15/2018
RE P O RT P RE PA RE D B Y: John S tark, C ommunity D evelopment D irector
D E PA RTME NT D IRE C TO R RE V IE W: John S tark, C ommunity D evelopment D irector
10/10/2018
O THE R D E PA RTM E NT RE V IE W: N/A
C ITY MA NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
10/10/2018
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of a resolution approving an Inclusionary Affordable Housing Policy.
E X E C UT IV E S UM M ARY:
I n 2013, both the Richfield City Council and the Richfield Housing and Redevelopment Authority (HRA)
adopted a Housing Policy Vision Statement that supports a "full range and balance of housing types that
match the choices of its diverse residents." Furthermore, there have been many HRA discussions in the past
eighteen months related to continuing support for affordable housing. As a part of the implementation of the
Housing Visioning Statement, and in conformance with City Council direction, staff is recommending the
adoption of a formal I nclusionary Affordable Housing Policy (Policy).
A preliminary draft of this Policy was presented to the City Council and Richfield HRA at a July 16
concurrent work session, with Economic Development Authority (E D A) Commissioners also in
attendance. Much of this Policy has been consistently applied to developments receiving public
assistance over the past twenty years. A formal Policy, however, will better define expectations and
requirements in a more transparent manner.
The proposed Policy would require housing developers receiving public subsidy to either:
Make at least 20% of all housing units to be affordable to either renters earning less than 60% of the
Area Median I ncome (A MI ) or owners earning less than 115% of the A MI , or;
Pledge 15% of the net-present-value of the subsidy they receive to the Richfield Housing and
Redevelopment Fund, and;
Must provide 90-day notice of sale, and;
Must agree to not discriminate against renters receiving rental subsidies (including the Section 8
Housing Choice program).
Based on feedback from the September 25, 2018 City Council meeting, the proposed Policy has been
revised to state that it is to be applied only for development of 5 or more units and that, in the case of
"scattered site" developments (Richfield Rediscovered and New Home) the 20% affordability
requirement shall be applied cumulatively over a three-year period.
I t is unknown at this time whether the E D A would ever provide public financial assistance for the construction
of new housing. I n the event that such financing were provided, this policy would be in effect.
RE C O M M E ND E D AC T I O N:
By motion: Adopt a resolution approving an Inclusionary Affordable Housing Policy.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
I n 2013 the Richfield City Council and HRA adopted a Housing Policy Vision Statement that
supports a "full range and balance of housing types that match the choices of its diverse
residents."
Since April of 2017, the HRA has been considering the need to preserve the City's Naturally
Occurring Affordable Housing (NOA H) and to insure the construction of a mix of housing
affordability.
I n October 2017 the City Council and HRA established goals and a work plan for strengthening
the City's apartment communities. The proposed Policy supports these goals and is one step in
the work plan.
I n May 2018 the City Council and HRA directed staff to move forward on drafting a Policy.
On J uly 16, 2018, the HRA reviewed a draft Policy.
The City Council adopted the proposed Policy in concept at their September 25 meeting and will
vote to affirm this action at their October 23 meeting.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The proposed Policy furthers the stated goal to provide a mix of housing types (including a mix of
affordability levels).
This Policy applies to the inclusion of affordable housing units. I n the coming months, staff will be
researching and drafting a policy regarding the inclusion of physically accessible housing units
and amenities.
C.C R IT IC AL T IMIN G IS S U E S:
I f approved by the E D A, the Policy will become effective immediately for projects that receive
financial assistance from the E D A.
D.F IN AN C IAL IMPAC T:
W hile there is no fiscal impact on City/HRA/E D A operational costs, a developer's election to
pledge funds to the HRA's Housing and Redevelopment Fund would be available to assist in
affordable housing costs throughout the community.
E.L E GAL C ON S ID E R AT ION:
The Richfield City Attorney prepared the resolution.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
The E D A may choose to:
Approve the Policy with changes;
Delay consideration of the Policy for further study; or
Not to adopt the Policy.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
Resolution Resolution L etter
Inclusionary Housing P olicy B ackup Material
2013 Housing Visioning S tatement B ackup Material
RESOLUTION NO. ____
A RESOLUTION APPROVING THE ADOPTION OF
AN INCLUSIONARY AFFORDABLE HOUSING POLICY
WHEREAS, both the Richfield Housing and Redevelopment Authority (HRA) and City
Council adopted a Housing Policy Vision Statement in 2013 that supports a full range and
balance of housing types that match the choices of its diverse residents; and
WHEREAS, the Economic Development Authority in, and of, the City of Richfield
(EDA) wishes to further support development of high quality housing in the community for
households of various income levels, ages and sizes in order to help the City meet its goals of
preserving and promoting economically diverse housing options in the City; and
WHEREAS, without intervention, housing prices will continue to rise in new
developments;
WHEREAS, the EDA wants to ensure that both the public and private sectors continue
to create affordable housing opportunities in the City; and
WHEREAS, the EDA believes that adoption of a policy setting criteria and incentives
for developers to build new affordable units will assist the City in achieving its inclusionary
housing goals; and
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in, and of, the City of Richfield, Minnesota, that:
1. The Inclusionary Affordable Housing Policy is hereby approved and adopted.
2. EDA staff is authorized to carry out the policy effective immediately.
Adopted by the Economic Development Authority in, and of, the City of Richfield,
Minnesota this 15th day of October 2018.
Mary Supple, President
ATTEST:
Steven L. Devich, Executive Director
City of Richfield
Richfield Housing and Redevelopment Authority
Richfield Economic Development Authority
Inclusionary Affordable Housing Policy
The City of Richfield, Richfield Housing and Redevelopment Authority, and Richfield Economic
Development Authority are committed to building a community that is welcoming and affordable to
a diverse population of individuals and families at all stages of their lives. As such, we hereby
establish the following policy for the inclusion of affordable housing in development proposals.
Requirements
1. Housing Development Projects containing the construction of at least 5 new units which receive
Financial Assistance from HRA, EDA or City:
a. Must contain at least 20% affordable units
i. At least 20% of rental housing units must be made affordable to tenant
households earning no more than 60% of the Area Median Income over a period
of ten years or the duration of the subsidy (whichever is longer);
ii. At least 20% of owner-occupied housing units must be made affordable to, and
initially sold to, households earning no more than 115% of the Area Median
Income;
iii. At least 20% of the grand total of housing units in a mixed rental/ownership
development must be affordable at the affordability levels established in 1.a)i
and 1.a)ii,
or;
b. Must contribute to the Richfield Housing and Redevelopment Fund
i. 15% of the “net present value” of Tax Increment generated by the project (or
15% of the net present value of other types of assistance) must be pledged to
the Richfield Housing and Redevelopment Fund over a period of ten years or the
duration of the subsidy (whichever is longer), or;
ii. A pro-rata combination of the above (i.e. 10% affordable units and a 7.5%
contribution) may be considered, and;
c. Must agree to provide 90 days’ advance notice to the public body providing funding of
any sale of the property,
and;
d. Must agree to not discriminate against households utilizing Housing Choice Vouchers
(Section 8) or other forms of rental assistance.
2. Non-Housing Development Projects that receive Financial Assistance from HRA, EDA or City and
which result in the loss of affordable housing:
a. Affordable housing units eliminated by the project must be replaced on-site or at
another location in Richfield by the developer at similar affordability levels, or;
b. 5-15% (depending on the magnitude of the loss of affordable housing) of the “net
present value” of the Financial Assistance provided must be pledged to the Richfield
Housing and Redevelopment Fund over a period of ten years or the duration of the
subsidy (whichever is longer).
Incentives
3. Housing Development Projects which include affordable units (as outlined in 1a above) are
eligible to apply to the City for the following considerations regardless of whether or not they
receive Public Financial Assistance:
i. Building Permit Fee Reductions (10% reduction for rehabilitation and/or 5%
reduction for new construction);
ii. 4d Property Tax Reduction (rental projects);
iii. Consideration of code flexibility (e.g., smaller setbacks, excessive impervious
surface, etc.) in planned unit developments;
iv. A housing unit density bonus of 5-15% (e.g., a project in an area that allows 8-24
units/acre could add an additional 1-4 units/acre and remain in compliance).
Exceptions
4. With regards to “scattered-site single family housing development”, at least 20% of the units
constructed in any three-year period must meet the proscribed affordability requirements.
5. The City Council or Board of Commissioners of the Housing and Redevelopment Authority or
Economic Development Authority may vary the application of this policy as circumstances
warrant with the adoption of findings of the reasons for doing so.
Adopted:
This 23rd day of October, 2018 by the Richfield City Council.
______________________ _______________________
Mayor Secretary
This 15th day of October, 2018 by the Richfield Housing and Redevelopment Authority.
______________________ _______________________
Chair Secretary
This 15th day of October, 2018 by the Richfield Economic Development Authority.
______________________ _______________________
President Secretary
June 2013
Richfield Housing Vision Statement
Richfield is a sustainable community that is known for its strong, vibrant and eclectic,
amenity-rich neighborhoods supported by a full range and balance of housing types that
match the choices of its diverse residents at every stage of their lives.
THE MEANING OF WORDS IN THE VISION STATEMENT
Richfield is – means that this is an aspirational statement. The Task Force members are describing the
housing and community they want for their future.
a sustainable community – “community” was a theme repeated by the Task Force members throughout
the process. Housing was acknowledged to be very important, but housing was viewed as a means to
achieving a strong community. “Sustainable” is added to encompass environmental, economic and social
considerations.
that is known for its strong, vibrant and eclectic, amenity rich neighborhoods – like community, strong
neighborhoods were identified over and over again by the members throughout the process. The word
“vibrant” means that these neighborhoods are prospering economically and socially. “Eclectic” was used
to acknowledge that Richfield can have varied and unique neighborhoods, each building on distinct
attributes and opportunities. “Amenity-rich” means environmental amenities like green space, trees,
trails and other natural features, as well as community gathering places, coffee shops and similar
cultural offerings.
supported by a full range and balance of housing types – the concept of housing supporting the
neighborhoods is reinforced with these words.” Full range” of housing types means that there is a wide
variety of housing options available for people to choose from when considering moving to or staying in
Richfield. A “balance of housing types” means the avoidance of concentrations of any housing types.
that match the choices of its diverse residents at every stage of their lives. – “match the choices of
diverse residents” means that the City has what residents want, not just what they have to adapt to. The
Task Force supports a broad definition of diversity. These varied housing offerings mean that residents
can stay in the community their whole lives and find housing that meets their needs and their
preferences.
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #3.
S TAFF REPORT NO. 7
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
10/15/2018
RE P O RT P RE PA RE D B Y: John S tark, C ommunity D evelopment D irector
D E PA RTME NT D IRE C TO R RE V IE W: John S tark, C ommunity D evelopment D irector
10/8/2018
O THE R D E PA RTM E NT RE V IE W: N/A
C ITY MA NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
10/10/2018
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the adoption of an amended version of the Bylaws of the Richfield Economic
Development Authority.
E X E C UT IV E S UM M ARY:
Since its inception in 2017, Steve Devich has served as the Economic Development Authority (E D A)
Executive Director. Mr. Devich has announced his retirement from this role effective November 30, 2018.
Upon the announcement of his retirement, staff reviewed the E D A Bylaws related to the Executive Director
position as described in Article I I I , Section 8. Based on this review, staff is recommending several minor
modifications, including:
An additional sentence stating that, "Regardless of who is appointed as Executive Director, the City
Manager of the City of Richfield shall have ultimate authority in recommending an annual levy and
budget."
A change in language removing the requirement that an Acting Executive Director, as designated by
the Executive Director, must be the Community Development Director.
A change in wording to allow for the designation of a Recording Secretary.
RE C O M M E ND E D AC T I O N:
By motion: Adopt an amended version of the the Bylaws of the Richfield Economic Development
Authority.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
Staff plans to routinely review the E D A Bylaws to ensure that they meet both current practice and
the future needs of the E D A.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Levy and Annual Budget of the Richfield E D A has an impact on the overall tax impacts of the
city as a whole. The authority to formally recommend a Levy and an Annual Budget, therefor,
should be placed with the City Manager of the City of Richfield.
C.C R IT IC AL T IMIN G IS S U E S:
The current Executive Director of the E D A has announced his retirement, effective November 30,
2018. Staff recommends that the Bylaws related to the Executive Director should be modified prior
to his departure.
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
E D A Legal Counsel has been apprised of this recommended action.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Do not approve the amended E D A Bylaws, or;
Approve a modified version of the amendments to the E D A Bylaws to better reflect the direction of the
Authority.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A
AT TAC H ME N T S:
D escription Type
A mended B ylaws B ackup Material
496926v3 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
496926v3 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. Regardless of who is appointed as Executive Director, the City
Manager of the City of Richfield shall have ultimate authority in recommending an annual levy
and budget. The Executive Director may designate an acting Executive Director during periods
when the Executive Director is absent or incapacitated.
Section 9. Other Administrative Officers. The Authority may designate a Recording
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
496926v3 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 President and the Executive Director.
(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
496926v3 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
third Tuesday in January immediately following the adjournment of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, which commences at 7:00
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 third Monday of each month immediately following
the adjournment of the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota, which commences at 7:00 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
496926v3 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
Ameded: October 15, 2018
AGENDA SECTION:OTHER BUSINESS
AGENDA ITEM #4.
S TAFF REPORT NO. 8
E CONOMIC DE V E LOP ME NT AUT HORIT Y
MEET ING
10/15/2018
RE P O RT P RE PA RE D B Y: John S tark, C ommunity D evelopment D irector
D E PA RTME NT D IRE C TO R RE V IE W: John S tark, C ommunity D evelopment D irector
10/8/2018
O THE R D E PA RTM E NT RE V IE W: N/A
C ITY MA NA G E R RE V IE W: S teven L . D evich, E xecutive D irector
10/10/2018
I T E M F O R C O UNC IL C O NS ID E RAT I O N:
Consideration of the appointment of a new Executive Director of the Economic Development Authority
to serve following the retirement of current Executive Director Steve Devich.
E X E C UT IV E S UM M ARY:
Since its inception in 2017, Steve Devich has served as the Economic Development Authority (E D A)
Executive Director. Mr. Devich has announced his retirement from this role effective November 30, 2018.
W hile his term is not formally designated, it customarily expires upon the election of officers at the regular
J anuary meeting of the Economic Development Authority (E D A) each year. I n the interim, there will
undoubtedly be E D A business to be undertaken, requiring the appointment of a new Executive Director.
I n the E D A's first year, the Executive Director position has been filled by the City Manager of the City of
Richfield. That practice, however, is not required by the E D A Bylaws and many E D A's employ someone
other than the City Manager of the associated city as their Executive Director.
The Bylaws of the E D A state that the Executive Director "shall have such term as the Authority fixes." Given
the state of transition of the City Manager's office, staff is recommending that the E D A appoint Community
Development Director J ohn Stark as Executive Director to serve out the remainder of 2018 (following Steve
Devich's retirement) and the entirety of 2019 (until the regular meeting of the E D A in 2020).
RE C O M M E ND E D AC T I O N:
By motion: Appoint Community Development Director John Stark as Executive Director of the
Richfield Economic Development Authority following the retirement of current Executive Director
Steve Devich for a term lasting until the first regular meeting of the E D A in 2020.
B AS IS O F RE C O M M E ND AT I O N:
A.H IS TOR IC AL C ON T E X T
I n its first year, the Richfield City Manager served as the Executive Director of the E D A. That
practice, however, is not required by the E D A Bylaws and many E D A's employ someone other
than the City Manager of the associated city as their Executive Director.
B.P OL IC IE S (resolutions, ordinances, regulations, statutes, etc):
The Bylaws of the E D A require it to employ an Executive Director.
Current Executive Director, Steve Devich, has announced his retirement as of November 30,
2018.
The E D A Bylaws allow to set the term of the Executive Director's time in office.
C.C R IT IC AL T IMIN G IS S U E S:
A new Executive Director should be appointed no later than the November 19, 2018, E D A meeting
to ensure that there is no period of time that the E D A will lack someone in this role to conduct the
business of the E D A.
D.F IN AN C IAL IMPAC T:
None
E.L E GAL C ON S ID E R AT ION:
E D A Legal Counsel has been apprised of this recommended action.
ALTE R N AT IV E R E C O MME N D ATIO N(S):
Appoint a new Executive Director only for the remainder of 2018 until the first regular meeting of the
E D A in 2019.
P R IN C IPAL PAR TIE S E X P E C TE D AT ME E TIN G:
N/A