Agenda - Council - 04/08/2014 - Laserfiche WebLink

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Councilmember Riley answered in the affirmative. Finance Director Lund explained that in 1998, there was an enabling resolution that gave rights to the EDA to also have the powers of an HRA. The EDA used these powers in 2003 for 2004 payable to issue an HRA levy. In 2004, for 2005 Payable, the EDA issued an EDA levy and an HRA levy to cover the portion attributed to the Alloy Recovery project. The HRA board was created in 2005 with their first levy for 2006 payable. She stated the 1998 EDA/HRA Resolution is still in place. Finance Director Lund explained that the HRA/EDA cannot exceed the maximum allowable levy. City Attorney Langel explained this is a bizarre historical record. He agreed that the 1998 enabling resolution is still in play and it gives the EDA every power available under the statute. This includes the HRA authority. He explained that if the City wants to continue that after the HRA is dissolved, it would not have to consider a modification to the 1998 enabling resolution. If the Council wants to get rid of HRA levy authority, then the 1998 enabling resolution would need to be amended to remove those powers. City Administrator Ulrich stated if there is an EDA levy, that needs to be approved by the Council because the EDA is not given that authority. In that case, it limits the EDA's power. Councilmember Riley stated that is correct and supported the intent that the HRA levy would go away but the City would preserve that option, if needed in the future. City Administrator Ulrich stated another consideration is whether the City Council is comfortable with giving all of its assets, including land holdings, to the EDA or if the EDA should continue as an advisory board. Councilmember Riley suggested The COR property not be turned over to the EDA but other properties, such as the Alloy Recovery property, but turned over to the EDA. Councilmember Johns asked if it is an all or nothing scenario. City Administrator Ulrich stated the HRA could consider a specific portfolio of assets to distribute to the EDA. City Attorney Langel agreed and noted there is a statutory process to move projects (including real estate) from the HRA to the EDA. City Administrator Ulrich stated staff will meet with the County HRA Chair about the option of using County HRA funds as operating money for the City's HRA. The consensus of the Council was to table further discussion until a full Council was present and to direct staff to make sure the history is clear on what existed if going back to the 2005 scenario, what would be in play, and modifications needed to the 1998 resolution if the Council supports making a change to the EDA's authority. City Council Work Session / March 25, 2014 Page 3 of 7