EDSR INFORMATION #1 01-9-2012 - Laserfiche WebLink

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CHAPTER 15 There is crossover between HRA and EDA levies that can be confusing. Typically, EDAs are not authorized to levy taxes under state law. However, Minn. Star. § 469.107; many city EDA-enabling resolutions adopt all the powers of an HRA, and Minn. star. § 2~s.o66. then the EDA functions as a special taxing district under state law. If the enabling resolution so allows, the EDA levies a separate tax or "HRA levy" not subject to levy limits or city debt limits-but again subject to the 0.0185 percent of total city market value limit in state law. The city attorney may verify the structure and levy authority of each city's HRA and/or EDA. Minn. Star. § 469.012, subd. 4; While HRAs have the legal authority to "do whatever is necessary and Minn. star. § a69.o2a. convenient" to implement redevelopment, they are subject to the ordinances and laws of the city. The city council must approve HRA plans before the housing and redevelopment authority may begin implementation. 6. HRA contracting Minn. Star. § 469.015; All HRA construction work and purchases of equipment, supplies or Minn. star. § a69.ols subd. la. materials that involve expenditure of more than $100,000 must be competitively bid. An HRA (and a city) may also use the "best value alternative." There are limited exceptions to these requirements for emergencies and certain projects, such as parking ramps and certain public transit facilities. 7. HRA financing Minn. Star. §§ 469.033; and Operating funds, capital improvements, and debt retirement expenses for Minn. star. § a69.o3a. HRA projects may be financed by any one, or combination of, the following methods: Federal grants. Revenue bonds the HRA or local governing body sells. • General obligation bonds the local governing body sells. Tax increments from redevelopment projects. • A limited mill levy for redevelopment projects and planning activities. • A limited mill levy for informational and relocation services. Minn. star. § 469.034, subd. 1. When an HRA issues bonds, the revenue generated must be used for the projects financed, or bond costs must be paid from income generated by designated projects. The law states that the principal and interest on bonds are payable exclusively from the income and revenues of the project financed with the proceeds of the bonds, or exclusively from the income and revenues of certain designated projects, whether or not they are financed in whole or in part with the proceeds of the bonds. HANDBOOK FOR MINNESOTA CITIES ls:~ This chapter last revised 12/1/2011