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COMMISSION BUSINESS <br /> <br />Case #1: Economic Development Authority. <br /> <br />Mr. Gromberg informed the Economic Development Commission (EDC) that City Council is <br />examining the possibility of forming an Economic Development Authority (EDA). The EDC <br />should make a recommendation on whether or not to form an EDA. An EDA has different powers <br />and authority than City Council, the Economic Development Commission or even an Economic <br />Development Company. An EDA allows expenditure of funds for the betterment of the city such <br />as public buildings and to build incubator businesses then levy those businesses rather than the <br />citizens or sell bonds. The total levy limit for EDA projects would be a .75 mil rate. <br /> <br />Commissioner Fults feels that funds should be available in the City Budget for the police station <br />and public works garage that are used as an example of items that could be funded through an <br />EDA. Commissioner Fults realizes that a new police station is badly needed, although it is the <br />citizens that need a police station as most businesses have their own security systems and <br />businesses are paying several times the taxes that residents do. Commissioner Fults inquired <br />whether or not an EDA is strictly a city entity or can it be used for private business. <br /> <br />Mr. Gromberg stated that an EDA has the ability to operate as a business as well as selling bonds <br />to cover operating costs without the need to make a profit. <br /> <br />Commissioner Vevea said that business incubators were discussed a number of years ago and we <br />have not acted on the potential. <br /> <br />Tax rates for businesses versus homes were discussed as well as the benefits derived by local <br />businesses and citizens. <br /> <br />Commissioner Fults stated that he would be in favor of an EDA if it worked with the small <br />businesses in the private sector. <br /> <br />Chairman Wagner feels that an EDA would be an excellent tool to encourage business development <br />and streamline the process of bringing new business into Ramsey and a positive step. <br /> <br />Commissioner Vevea believes that an EDA could encourage developers to assist in development of <br />new businesses. <br /> <br />Commissioner Fults has only seen examples of projects that would be for city use such as parks, a <br />police station and a public works building and no examples of projects that would generate tax <br />dollars for the city. <br /> <br />Commissioner Nelson asked the questions "Are we viewed as a progressive City?" and "What do <br />we have in operation?" She sees an EDA as an attractive amenity for businesses seeking a <br />location. <br /> <br />Commissioner Hardin asked Mr. Gromberg whether or not the EDC's previous questions about an <br />EDA were answered. <br /> <br />Mr. Gromberg stated that they had been. An EDA can operate as a business, in partnership with <br />other businesses as well as making expenditures for the betterment of the City, whereas the City <br />Council can only make expenditures that affect the health, safety and welfare of the community. <br /> <br />Commissioner Fults asked if the EDC would be disbanded if an EDA were formed. <br /> <br />Economic Development Commission / November 14, 1990 <br /> Page 2 of 4 <br /> <br /> <br />