Agenda - Economic Development Authority - 03/08/2012

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operation of a city HRA is the corporate limits of the City. Governing Body: Activities are controlled by a board of commissioners. An HRA consists of five commissioners who are residents of the city. The Mayor appoints and the Council approves the members who serve five -year, staggered terms. City Councilmembers often serve on the HRA. The entire membership of an HRA may consist of councilmembers. The City Council must approve broad "redevelopment plans" for projects, but otherwise most HRA activities do not require council approval (unless that is required by some other statute, such as approval of TIF Plans under the TIF Act). An HRA is a separate political subdivision; it is not just part of the City. The HRA does have the power to levy a tax (with a specified limit), which is separate from the City tax levy, though the City Council must approve that levy. Activities: 1. May establish a redevelopment project for the elimination and prevention of blighted areas. 2. Acquire real or personal property for activities related to projects. May sell its lands and properties to private or public parties. 3. May provide for the administration of a commercial building loan program to preserve small -sized buildings in its district. 4. May sell real or personal property, including the use of eminent domain, for project - related purposes (though 2006 reform severely limits this power). 5. May act as federal government agent in carrying out provisions of Municipal Housing and Redevelopment Act. 6. May exercise the powers granted to 386164v2 SJB KG400 -12 Governing Body: EDA is created through an enabling resolution written and approved by City Council. The City Council can choose to serve as the EDA Board of Commissioners or create a board composed of a cross - section of the community. If non - council members sit on the Board, the size must be 3, 5, or 7 Commissioners appointed by the Mayor with the approval of City Council. If the Board has 3 members, at least one must be a City Council member; if the Board has 5 or 7 members, at least 2 must be City Council members. Board members serve for six -year terms, or their term as Councilmembers if they are on the City Council. The City Council may control the activities of the EDA by limiting its powers under the enabling resolution and through the annual approval of the EDA budget. Activities: 1. Acquire property for creation of economic development districts. 2. Sell or lease land whether by private or public means. 3. Carry out EDA law to develop and improve land within the district. The EDA may make any necessary arrangements to make land suitable for development. 4. Exercise eminent domain (subject to severe limits of 2006 reform). 5. Enter into contracts for the purpose of economic development. 6. Purchase all materials needed to carry out development. 7. May make loans to a business, a for- profit or nonprofit organization, or an individual. The loan must be for an authorized purpose (e.g., carry out economic development).