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HomeMy WebLinkAboutIV.E - HEDRA Administrative and Management PracticesHEDRA REVIEW October 11, 2018 HASTINGS ECONOMIC DEVELOPMENT & REDEVELOPMENT AUTHORITY ADMINISTRATION & MANAGEMENT PRACTICES A. RESPONSIBILITIES & POWERS Sect. 1. Responsibilities. The Authority is responsible for encouraging business and industrial development within the city, for the redevelopment of commercial and residential property in designated project areas, for the rehabilitation of commercial and residential buildings and for the prevention or cure of blight and blighting conditions within the city. Sect. 2. Powers. The Authority has all the powers granted by Minnesota Statutes Chapter 469 and other laws to Economic Development Authorities, Housing and Redevelopment Authorities, Municipal Development Districts, Municipal Industrial Development, Tax Increment Districts and other economic development and revitalization programs. Sect. 3. Limitations. The powers of the Authority are limited by the enabling resolution as follows: a. The sale of bonds or other obligations of the Authority must be approved by the City Council. b. The Authority must follow the budget process in accordance with City policies, ordinances and resolutions. The Authority will be treated as a component of the City for financial reporting purposes and the financial management of the Authority will be performed by the City’s Finance Department. c. Development and redevelopment actions of the Authority must be in conformance with the City's comprehensive plan and all other controls implementing the comprehensive plan. d. The Authority must submit its plans for development and redevelopment to the City Council in accordance with City planning procedures and law. e. The administrative structure and management practices of the Authority must be approved by the City Council. f. The Authority must obtain City Council approval for the acquisition of property for economic development purposes through the use of the powers of eminent domain. g. The Authority must submit all planned activities for influencing the action of any other governmental agency, subdivision, or body to the City Council for approval. Planned activities specifically means a grant application or cooperative agreement with a government agency, subdivision or body. Sect. 4. Report. The Authority will report to the City Council annually within 60 days of the anniversary (January 1) whether and how the enabling resolution should be modified. B. COMMISSIONERS Sect. 1. Appointment (469.095.Sub.2). The enabling resolution established a seven (7) member authority, two of which will be Council members. Council members’ terms on the Authority will be the same as their terms on the City Council. Citizen members’ terms will be six years. A city council member commissioner can serve three consecutive full terms and a citizen commissioner can serve two consecutive full terms. Commissioners are appointed by the Mayor with the approval of the City Council. The Authority may advertise, interview and recommend the appointment of citizens to fill vacancies to the Mayor and City Council. No more than one commissioner may be a non- resident of the City. Sect. 2. Compensation. Commissioners shall be paid for attending each regular or special meeting of the authority in an amount determined by City Council. Commissioners may be reimbursed for actual expenses incurred in doing official business of the Authority. Sect. 3. Removal for cause (469.095. Sub. 5). A commissioner may be removed by the City Council for inefficiency, neglect of duty or misconduct in office. Sect. 4. Conflict of Interest (469.098). Except as authorized in Minnesota Statutes 471.88, a commissioner, officer or employee of an authority must not acquire any financial interest, direct or indirect, in any project or in any property included or planned to be included in any project, nor shall the person have an financial interest, direct or indirect, in any contract or proposed contract for materials or service to be furnished or used in connection with any project. Sect. 5. City Code of Ethics (Ordinances 31.30-31.36). Commissioners of the Authority are Public Officials of the City of Hastings and subject to the Code of Ethics. C. STAFF, SERVICES & SUPPLIES Sect. 1. Staff. (a) The City Administrator will hire or designate a City employee as Director of the Authority Economic Development and Redevelopment Director, with the approval of the Authority, to serve as the primary staff liaison with the Authority. (b) The City Administrator will designate a City employee to serve as Secretary of the Authority and an employee of the City Finance Department to serve as Assistant Treasurer. Sect. 2. Services and Supplies. The City will provide equipment, supplies and materials, furnish offices and provide accounting, clerical, engineering, property maintenance and other assistance and include the Authority property, commissioners and staff in its insurance coverage. Sect. 3. Legal Counsel. The Authority may use the services of the city attorney or hire an attorney as general counsel for its legal needs. The city attorney or counsel as determined by the Authority will be its chief legal advisor. Sect. 4. Contracts for services. The Authority may contract for the services of consultants, attorneys or other persons needed to perform its duties and exercise its powers. Sect.5. City costs. Actual or prorated costs of staff, services and supplies provided by the City for the Authority may be charged to Authority funds. D. FINANCIAL MANAGEMENT AND REPORTING Sect. 1. Component of the City. The enabling resolution directs that the Authority will be treated as a component of the City for financial reporting purposes and the financial management of the Authority will be performed by the City’s Finance Department. Sect. 2. Financial Management. (a) The following duties of the Authority Treasurer are delegated to the Assistant Treasurer: receive and be responsible for Authority money; keep an account of the source of all receipts and the nature, purpose and authority of all disbursements; prepare and file the Authority’s detailed financial statement and audit with its Secretary and the State Auditor at least once a year; (b) The Authority Treasurer is responsible for the acts of the Assistant Treasurer and will sign Authority checks.(c) All the financial functions of the Authority will be run through the City financial systems, depositories, bank accounts and investment brokers. Sect. 3. Disbursements. The City Finance Director and Authority Treasurer will sign all checks. The Assistant Treasurer will provide the Authority a list of disbursements for approval at each regular meeting. Sect. 4. Statement and audit. The annual financial statement and audit will be reported to and reviewed by the Authority. The Authority’s accounts will be audited together with the City accounts. The audit will be filed with the State Auditor. E. BUDGETS & LEVIES Sect. 1. Budget required. The enabling resolution directs that the Authority will follow the City budget process in accordance with policies, ordinances and resolutions. Sect. 2. EDA Levy. The Authority may request the City Council to levy a special tax for economic development operations in an amount not to exceed the current statutory limit (MS 469.184). The uses will be specified within the annual budget. Sect. 3. HRA Levy. The Authority can levy under its HRA powers, with City Council approval, a special tax for housing and redevelopment operations in an amount not to exceed the current statutory limit (MS 469.033 Sub 6.). The uses will be specified within the annual budget. Sect. 4. Sources and uses. Funds received and spent under the EDA levy and under the HRA levy will be accounted for and reported separately. F. REAL ESTATE Sect. 1. Title. Real estate acquired by the Authority or the City for economic development, industrial development, housing development, redevelopment or rehabilitation will be held in the name of the Authority. Sect. 2. Proceeds. Revenues from the sale of Authority real estate will be Authority money. Sect. 3. Maintenance. The City will maintain Authority real estate including mowing, landscaping, and the plowing of walks and parking lots. Sect. 4. Insurance. The City will include Authority real estate in its liability and loss insurance. Sect. 5. Eminent Domain. The Authority must obtain City Council approval for the use of the powers of eminent domain for the acquisition of property for economic development purposes. G. BUSINESS SUBSIDIES. Sect. 1. Authority a grantor. The Authority is a “local government agency” authorized by local government (the City) to provide business subsidies, and is therefore a “grantor” under MS 116J.993 Sect. 2. Criteria. The Authority will hold a public hearing and adopt business subsidy criteria before providing public assistance and will amend its criteria as needed to conform to amendments to the statute. Sect. 3. Notice and hearings. The Authority will provide public notice and hold a public hearing on any request for public assistance that meets the criteria and statutory definition of a business subsidy. Sect. 4. Agreements. The Authority must enter into a subsidy agreement with recipients of business subsidies that includes the information required by statute. Sect. 5. Reports. The Authority will submit the required Business Assistance Reports to the Department of Employment and Economic Development each year by April 1. The Authority will also report to the City Council each year on the progress of recipients in meeting their business subsidy goals. H. AMENDMENTS Sect. 1. The Administration and Management Practices may be amended by a majority of the Authority Board, subject to approval by the City Council. An amendment will be introduced at a regular meeting and voted upon at the next regular meeting. Adopted by Authority Board: October 11, 2018. _____________________ Approved by City Council: November 5, 2018. ____________________