08-03-1987 CC MIN - Laserfiche WebLink

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Page 6 City Council Meeting August 3. 1987 e Mulrooney stated that communities organizations. He expanded on this communities have one organization economic development. h~e by that one or more types of these stating that successful is the major focal point for Mr. Mulrooney explained to the Council the roles of Port Economic Development Authorities. He stated that Port pooled bond reserves and also own real estate which is explained that one advatage of Port Authorities is organization dealing exclusively in development and activities. Authorities and Authorities use leased out. He that it is an redevelopment Mr. Mulrooney continued by saying that the Economic Development Authority can be the Council and the positions can be turned over to other representatives involved in Economic Development. With an Economic Development Authority there is the ability to tax 3/4 mill for activities and administration. Local Development Corporations were then explained. Elk River currently has a Local Development Corporation. Mulrooney stated that this type of organization is intended to provide a means of financing businesses and development of property. The distinctions of a Local Development corporation are: e 1. They are not required to maintain a relationship with the local unit of gavernment; and 2. They do not have the financial capabilities of Economic Development Authorities. which is a municipal established organization. Mr. Mulrooney briefly explained the Certified Development Companies. This organization is required to have a professional staff in order to be effective. They do have access to government finances. Housing and Redevelopment Authorities do not focus on new economic development opportunities as described by Mr. Mulrooney. The Economic Development Commission (EDC) was then discussed by Mr. Mulrooney. He explained that they are limited in the types of activities they can get involved in. The advisory capacity of the EDC is at the discretion of the local unit of government. Mr. Mulrooney stated that an EDC is good for task oriented types of activities such as Star City, a new bridge or a new stadium but they do not have financing powers. e Mike Mulrooney stated that he strongly recommends consideration by the Council to establish an Economic Development Authority (EDA) this year. Establishment this year would enable the EDA to be grandfathered in for next year's legislative changes. Pat Klaers sugested moving along on this proposed EDA so that the 3/4 mill could be included in the October 10. 1987 levy. This would help finance the Staff position previously discussed. Klaers stated that the Council can serve as the Economic Development Authority. It was the concensus of the Council that as the EDA gets up and running. the HRA could be disbanned.