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ECONOMIC DEVELOPMENT AUTHORITY <br /> <br />II. <br /> <br />Baeklu'ound on the Economic Development Authorities Legislation. <br /> <br />The 1986 Minnesota Legislature enacted legislation (Chapter 458C) which <br />authorized cities to establish an economic development authority (the <br />"Authority"). The law provides the cities with the powers of Chapters 462 <br />(relating to Housing and Redevelopment Authorities) and 472A (relating to <br />Municipal Development Districts), as well as additional powers specified in <br />Chapter 458C. <br /> <br />In 1987 the Legislature repealed the statutes cited above and re-enacted <br />them as Chapter 469. References to statutes in this summary are <br />references to the new citations. <br /> <br />Procedural Requirements. <br /> <br />Enabling Resolution <br /> <br />Publication Requirements. Pursuant to Minnesota Statutes, <br />Section 469.093, the city council must pass a resolution known <br />as the "enabling resolution". Prior to adopting the enabling <br />resolution, a public hearing must be held, with notice of the <br />public hearing being published in a newspaper of general <br />circulation within the city once per week for two consecutive <br />weeks. The first publication must not appear more than 30 <br />days from the date of the public hearing. <br /> <br />Limitations of Powers. Minnesota Statutes, Section 469.092 <br />provides the following limitations upon the actions of the <br />Authority which may be imposed through the enabling <br />resolution: <br /> <br />(a) <br /> <br />No powers contained in Sections 467.001 to 469.047, <br />469.090 to 469.108, and 469.124 to 469.134 may be <br />exercised by the Authority without the prior approval <br />of the city council. <br /> <br />(b) <br /> <br />The city council may, by resolution, require the <br />Authority to transfer any portion of the reserves <br />generated by activities of the Authority, except when <br />previously pledged by the Authority, to the debt service <br />fund of the city, to be used solely to reduce tax levies <br />for bonded indebtedness of the city. <br /> <br />(c) <br /> <br />That the sale of all bonds or obligations to be issued by <br />the Authority be approved by the city council prior to <br />issuance. <br /> <br />(d) <br /> <br />That the Authority follow the budget process for city <br />departments. <br /> <br /> <br />