Item 3.5 - County EDA0
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MINNESOTA V
DEPARTMENT INFORMATION
Request for
City Council Action
ORIGINATING DEPARTMENT REQUESTOR:
MEETING DATE:
Administration City Administrator/Finance Director Flaherty
April 26, 2021
PRESENTER(s) REVIEWED BY:
ITEM #:
Consent
3.5
STRATEGIC VISION
MEETS:
I THE CITY OF OTSEGO:
X
Is a strong organization that is committed to leading the community through innovative
communication.
IS A PUBLIC HEARING REQUIRED?
Has proactively expanded infrastructure to responsibly provide core services.
No
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
In November 2020, the Wright County Board established the Wright County Economic Development
Is a social community with diverse housing, service options, and employment opportunities.
townships that have adopted resolutions electing to participate in the EDA.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending the City Council approve a resolution opting to participate in the Wright County
Economic Development Authority.
ARE YOU SEEKING APPROVAL OF A CONTRACT?
IS A PUBLIC HEARING REQUIRED?
No
No
BACKGROUND/JUSTIFICATION:
In November 2020, the Wright County Board established the Wright County Economic Development
Authority (the EDA). In accordance with Minnesota Statutes, the EDA may only operate in cities and
townships that have adopted resolutions electing to participate in the EDA.
In April 2021, the City received a letter from the EDA requesting the City elect to participate, which has
been attached for your reference. As noted in the request letter, the Wright County Board has no intent for
the EDA to levy its own dedicated property tax, and notes that EDA activities will be funded with Wright
County resources.
In accordance with Minnesota Statutes, the City may elect to withdraw participation from the EDA every
fifth year following adoption of the original resolution, along with certain notice requirements to the EDA.
Additionally, if the Wright County Board eventually decides to implement a property tax, the City would be
notified and have the ability to withdraw participation before said levy would go into effect.
If the City were to not elect participation, the EDA would not be authorized to assist any development
project within the City, even if requested to do so by the City.
The City's Economic Development Authority is not affected whatsoever by electing to participate.
SUPPORTING DOCUMENTS ATTACHED:
• Letter from the Wright County Economic Development Authority
• Minnesota Statute 469.1082
• Resolution 2021-33
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE ITTO APPEAR IN THE MINUTES:
Motion to approve Resolution 2021-33 opting to participate in the Wright County Economic Development
Authority.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A N/A
April 12, 2021 By
Adam Flaherty
City Administrator/Finance Director
City of Otsego
WRIGHT COUNTY
13400 90th St NE
Economic
Otsego, MN 55330
Development
Authority
Board Members
Dear Adam Flaherty,
Darek vetsch, President
In November 2020, the Wright County Board established the Wright County
Christine Husom, vice -President
Economic Development Authority (EDA). Under state law, county EDAs may
Mark Dalelden, Board Member
operate only in cities and townships that have adopted resolutions electing to
Mary wetter, Board Member
participate in the EDA. The attached factsheet provides information on what the
Michael Kaczmarek, Board Member
Teri Lachermeler, Board Member
Wright County EDA is, what it expects to do and not do, and what local participation
Phil Kern, Board Member
means. Information is also available online: www.co.wright.mn.us/1012/Economic-
Lee Kelly, Executive Director
Development -Authority
The EDA is requesting that each city and township in Wright County elect to
10 2nd St. NW, Room 235
Buffalo, MN 55313
participate but understands that some entities may not see a need for development
activities and resources in their communities.
Ph: (763) 682-7378
Fax: (763) 682-6178
The EDA has prepared the attached sample resolution that your governing body can
edit and consider for adoption.
www.co.wright.mn.us
If your entity elects to opt into the EDA's area of operation, please send the fully
executed resolution to the contact below.
If your entity decides to opt out of the EDA's area of operation, please notify the
contact below:
Elizabeth Karels
Wright County Project Administrator
Direct: (763) 684-8604
Elizabeth.Karels@co.wright.mn.us
EDA board members and staff are available to attend city council and township
board meetings upon request for additional discussion. Please reach out to Elizabeth
Karels to schedule.
The EDA would appreciate receiving notice of all city and township
participation decisions no later than June 30, 2021.
Sincerely,
The Wright County Economic Development Authority
An Equal Opportunity Employer
.NRIGHT COUNTY
ECONOMIC DEVELOPMENT AUTHORITY
What is the Wright County Economic Development Authority?
The Wright County Economic Development Authority (EDA) is a local authority, a subdivision of Wright County
with the primary objective of shepherding economic growth within Wright County.
The EDA operates under the authority of Minnesota Statutes, Sections 469.090 through 469.1082.
How was the EDA established?
The formation of the EDA was recommended by an Advisory Committee which included city and township
representatives. The committee met in August and October 2020 and provided a report in November 2020.
In November 2020, The Wright County Board passed a resolution establishing the Wright County EDA.
What will the EDA do?
Facilitate and guide redevelopment of county owned properties.
County EDAs have much more legal authority to pursue the repurposing of public assets than do counties
themselves. The EDA will facilitate and guide the redevelopment of the current Government Center and
Health & Human Services Building located in Buffalo. These two properties are anticipated to be vacated by
Wright County staff at the end of 2021.
Partner with local communities.
The EDA will partner with local cities and townships as well as the Wright County Economic Development
Partnership (WCEDP) and support their efforts to achieve specific projects and advance broader initiatives.
Access state and federal resources.
The EDA will seek to access state and federal resources that are available mainly to larger public development
agencies.
EDA Board Members & Staff
Darek Vetsch, President
Christine Husom, Vice -President
Mark Daleiden, Board Member
Ph: (763) 682-7687
Darek.Vetsch@co.wright.mn.us
Ph: (763) 682-7697
Christine.Husom@co.wright.mn.us
Ph: (763) 682-7686
Mark.Dalelden@co.wright.mn.us
Mary Wetter, Board Member
Michael Kaczmarek, Board Member
Teri lachermeier, Board Member
Ph: (763) 682-7696
Ph: (763) 682-7685
Ph: (763) 464-4732
Mary.Wetter@co.wright.mn.us
Mike. Kaczmarek@co.wright.mn.us
teri.lachermeier@ci.buff alo.mn.us
Phil Kern, Board Member
lee Kelly, Executive Director
Elizabeth Karels, Project Administrator
Ph: (763) 972-0565
pkern@delano.mn.us
Ph: (763) 682-7377
Lee.Kelly@co.wright.mn.us
Ph: (763) 684-8604
Elizabeth.karels@co.wright.mn.us
What will the EDAM NOT do?
The EDA does not intend to enact its own levy.
In establishing the EDA, the Wright County Board was clear that it has no intent for the EDA to levy its own
dedicated property fax. EDA activities will be funded with Wright County resources.
The EDA will be limited to economic development.
Although some county EDAs also exercise powers available to housing and redevelopment authorities (HRAs),
the Wright County EDA's powers are limited to economic development.
The EDA does not intend to lead any development projects except for the development of county owned
properties.
With its focus on partnering with local communities and the WCEDP to achieve their objectives, the EDA does
not expect to lead any projects other than the redevelopment of the Government Center and Health and
Human Services Building. The EDA's role will be to augment the resources that other entities are bringing to
advance projects throughout Wright County.
What does local participation mean?
Under state law, county EDAs may operate only in cities and townships that have adopted resolutions electing
to participate in the EDA.
Opting into the EDA
If a city or township chooses to opt into the EDA's area of operation, the entity will be included in the EDA's
area of operation.
Opting in does not impose any obligation, financial or otherwise on the participating city or township.
Opting in allows the participating city or township to take advantage of tools offered by the EDA, which may
include tax increment financing (TIF), tax abatement, business loan programs and grant programs.
Every five years, cities and townships having opted into the EDA may elect to withdraw, per Minnesota Statute,
Section 469.1082 Subdivision 5.
Opting out of the EDA
If a city or township chooses to opt out of the EDA's area of operation, the EDA is not allowed to assist any
development project in that community, even if requested by the city or township.
Future EDA levies
If the EDA ever decides to levy an EDA tax, all participating entities will have the option to withdraw from the
EDA and not be subject to the EDA levy.
Updated March 12, 2021
MINNESOTA STATUTES 2020 469.1082
469.1082 COUNTY ECONOMIC DEVELOPMENT AUTHORITY OR HOUSING AND
REDEVELOPMENT AUTHORITY WITH ECONOMIC DEVELOPMENT POWERS.
Subdivision 1. Authority to create. A county may form a county economic development authority or
grant a housing and redevelopment authority the powers specified in subdivision 4, clause (2), if it receives
a recommendation to do so from a committee formed under subdivision 2. An economic development
authority established under this section has all the powers and rights of an authority under sections 469.090
to 469.1081, except the authority granted under section 469.094 if so limited under subdivision 4. This
section is in addition to any other authority to create a county economic development authority or service
provider.
Nothing in this section shall alter or impair any grant of powers, or any other authority granted to a
community development agency, a county housing and redevelopment authority, or any county as provided
in section 383D.41; Laws 1974, chapter 473, as amended; or Laws 1980, chapter 482, as amended. Any
county that has granted economic development powers to a community development agency or a county
housing and redevelopment authority under any of these provisions may not form a county economic
development authority or grant a housing and redevelopment authority the powers specified in subdivision
4, clause (2).
Subd. 2. Local committees. Upon notice to all local government units and development agencies within
the county, a county may adopt a resolution to create a committee to recommend options for a county
economic development service provider.
The committee shall consist of no fewer than 11 and no more than 15 members appointed by the county
board. At least one city official, at least one housing and redevelopment official, and at least one township
official from the county to be served by the county economic service provider shall be included on the
committee. Members may also represent school districts, political subdivisions that currently provide services
under sections 469.001 to 469.047 and 469.090 to 469.108 1, nonprofit or for-profit housing and economic
development organizations, business, and labor organizations located within the county. Political subdivision
representatives must be selected by their local governments and must constitute at least 50 percent of the
total committee membership. The county may appoint no more than two county commissioners. The
committee shall select a chair at its initial meeting.
Subd. 3. Committee report. The committee shall issue its report within 90 days of its initial meeting.
The committee may request one 60 -day extension from the county board. The report must contain the
committee's recommendation for the preferred organizational option for a county economic development
service provider, including the distance from the boundary of the city that may be controlled by each affected
city in subdivision 5. The distance may not exceed two miles from the city boundary. The report must contain
written findings on issues considered by the committee including, but not limited to, the following:
(1) identification of the current level of economic development, housing, and community development
programs and services provided by existing agencies, any existing gaps in programs and services, and the
capacity and ability of those agencies to expand their activities; and
(2) the recommended organizational option for providing needed economic development, housing, and
community development services in the most efficient, effective manner.
Subd. 4. Organizational options. The committee may only recommend:
(1) establishment of a county economic development authority to operate under sections 469.090 to
469.108 1, except that the county shall not have the powers of section 469.094 without the consent of an
Official Publication of the State of Minnesota
Revisor of Statutes
469.1082 MINNESOTA STATUTES 2020 2
existing county housing and redevelopment authority operating within that county. For the purposes of a
county economic development authority's operation, the county is considered to be the city and the county
board is considered to be the city council;
(2) requiring an existing county housing and redevelopment authority or multicounty housing and
redevelopment authority to operate under sections 469.090 to 469.1081;
(3) that the county pursue special legislation; or
(4) no change in the existing structure.
Subd. 5. Area of operation. The area of operation of a county economic development service provider
created under this section shall include all cities and townships within a county that have adopted resolutions
electing to participate. A city or township may adopt a resolution electing to withdraw participation. The
withdrawal election may be made every fifth year following adoption of the resolution electing participation.
The withdrawal election is effective on the anniversary date of the original resolution provided notice is
given to the county economic development authority not less than 90 nor more than 180 days prior to that
anniversary date. The city or township electing to withdraw retains any rights, obligations, and liabilities it
obtained or incurred during its participation. Any city or township within the county shall have the option
to adopt a resolution to prohibit the county economic development service provider created under this section
from operating within its boundaries and (1) within an agreed-upon urban service area, or (2) within the
distance approved in the committee report referenced in subdivision 3. If a city or township prohibits a
county economic development service provider created under this section from operating within its boundaries,
the city's or township's property taxpayers shall not be subject to the property tax levied for the county
economic development service provider.
Subd. 6. City economic development authorities. If a county economic development service provider
has been established under this section, existing city economic development authorities shall continue to
function and operate under sections 469.090 to 469.1081. Additional city economic development authorities
may be created within the area of operation of the county economic development service provider created
under this section without the explicit concurrence of the county economic development service provider.
Subd. 7. Continuation of existing county and multicounty housing and redevelopment
authorities. Existing county and multicounty housing and redevelopment authorities shall continue to
function and operate under the provisions of sections 469.001 to 469.047.
Subd. 8. Nine -member boards authorized. In addition to the board options under section 469.095, a
county economic development authority may have a nine -member board. If the authority has a nine -member
board, at least two members must be county commissioners appointed by the county board. Of the county
economic development authority board members initially appointed, two each shall be appointed for terms
of one, two, or three years, respectively, and one each for terms of four, five, or six years, respectively.
Thereafter, all authority members shall be appointed for six-year terms.
History: 2000 c 484 art I s 4; ISp2005 c 1 art 4 s 106; ISp2005 c 3 art 7 s 10; 2010 c 347 art I s 25
Official Publication of the State of Minnesota
Revisor of Statutes
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2021-33
OPTING TO PARTICIPATE IN THE
WRIGHT COUNTY ECONOMIC DEVELOPMENT AUTHORITY
WHEREAS, the City of Otsego (the City) is located within Wright County, Minnesota (the County); and
WHEREAS, pursuant to a resolution adopted by the Board of Commissioners of the County on November
24, 2020, the County established the Wright County Economic Development Authority (the EDA) in
accordance with Minnesota Statutes, Sections 469.090 through 469.1082, as amended (the EDA Act); and
WHEREAS, Section 469.1082, subdivision 5 of the EDA Act provides that the area of operation of the EDA
shall include all cities and townships within the County that have adopted resolutions electing to participate
in the EDA; and
WHEREAS, the City Council of the City has determined that it is in the best interests of the City to elect to
participate in the EDA; and
WHEREAS, the City may make an election to withdraw from participation in the EDA every fifth year
following the adoption of the resolution electing to participate, all in accordance with the terms of Section
469.1082, subdivision 5 of the EDA Act; and
WHEREAS, notwithstanding Section 469.1082, subdivision 5, if the EDA enacts an EDA levy, the EDA will
notify the City of the enactment of such levy and the City shall have the opportunity to withdraw its
participation in the EDA prior to the levy going into effect.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
The City hereby elects to participate in the EDA.
The election to participate in the EDA shall take effect on the date of adoption of this approval and
may only be withdrawn in accordance with Section 469.1082, subdivision 5 of the EDA Act.
ADOPTED by the Otsego City Council this 26th day of April, 2021.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
2
CITY OF OTSEGO
Jessica L. Stockamp, Mayor
ATTEST:
Audra Etzel, City Clerk