6.6 EDSR 01-21-2014 - Laserfiche WebLink

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MEMORANDUM TO: Elk River EDA Chair and Commissioners FROM: Andrea McDowell Poehler DATE: Friday, December 27, 2013 RE: Amendments to Economic Development Authority Act Background The bylaws for the EDA require an annual update of legislative changes to the Economic Development Authority Act, Minn. Stat. § 469.090 to § 469.1082. Only one change to the Act was adopted this past legislative session: • Minn. Stat. § 469.107, subd. 1 was amended to convert the EDA city levy from 0.01813 percent of taxable market value to the same percentage of estimated market value. This amendment took effect on May 24, 2013. Other economic development legislative changes included the following: • Minn. Stat. § 116J.5764, subd. 1, the statute authorizing the Department of Employment and Economic Development(DEED)to administer demolition redevelopment loans to development authorities. The law expands the acceptable means by which an authority may secure a loan to pay for demolition costs from solely a general obligation of the authority payable primarily from a dedicated revenue source to include other security subject to review and approval by DEED, such as TIF or land sale proceeds. The amendment took effect August 1, 2013. • Jobs, economic development,housing, commerce and energy omnibus budget bill Chapter 85 (HF 729*/SF 1057) is the omnibus jobs, economic development, housing, commerce, and energy bill. It appropriates biennial funding for the Department of Employment and Economic Development(DEED), Housing Finance Agency(HFA), Department of Labor& Industry (DLI), Department of Commerce, Public Utilities Commission(PUC), and various boards. The provisions relating to the jobs and economic development portion of the bills of interest to cities are summarized below. Article 1:Appropriations Minnesota Investment Fund (MIF). Section 3, subd. 2(a) appropriates $15 million in FY 2014 and 2015 for the MIF program. MIF funds are available to local units of government to provide loans to assist expanding businesses: • Minnesota Job Creation Fund. Section 3, subd. 2(b) appropriates $12 million in FY 2014 and 2015 for the newly created Minnesota Job Creation Fund in Minn. Stat. § 116J.8748 (see Article 3, sec. 8 below).