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HomeMy WebLinkAbout05.29.12 EDA Packet AGENDA REGULAR ECONOMIC DEVELOPMENT AUTHORITY MEETING May 29, 2012 6:30 P.M. CITY COUNCIL CHAMBERS Todd Larson, Chair; Julie May, Vice-Chair Jason Bartholomay, Terry Donnelly, Christy Fogarty Doug Bonar, Geraldine Jolley Action Taken 1. Call Meeting to Order 2. Pledge of Allegiance 3. Roll Call 4. Approve Agenda 5. Citizen Comments/Presentations 6. Consent Agenda a) Meeting Minutes (4/23/12 Regular) b) Bills: 4/23/12—5/28/12 c) April 2012 Budget 7. Public Hearings 8. Continued Business a) EDA Composition 9. New Business 10. City Staff Reports/Open Forum/Discussion a) Razberry Beret Thrift Store—Opening June 1, 2012 b) Park Dental Ribbon Cutting July 17, 2012 c) Quality Ingredients Corporation 11. Adjourn MINUTES ECONOMIC DEVELOPMENT AUTHORITY Regular Meeting April 23, 2012 1. CALL TO ORDER The meeting was called to order by Chair Larson at 6:30 p.m. 2. PLEDGE OF ALLEGIANCE 3. ROLL CALL Members Present: Larson,Bartholomay(arrived 6:34 p.m.), Donnelly, May, Bonar, Jolley Members Absent: Fogarty Also Present: Kevin Schorzman, City Engineer; Lee Smick, City Planner; Cynthia Muller, Executive Assistant 4. APPROVE AGENDA MOTION by May, second by Donnelly to approve the Agenda. APIF, MOTION CARRIED. 5. CITIZEN COMMENTS/PRESENTATIONS 6. CONSENT AGENDA MOTION by Donnelly, second by May to approve the Consent Agenda as follows: a) Approved EDA Minutes (3/26/12 Regular) b) Received March 2012 Budget APIF, MOTION CARRIED. 7. PUBLIC HEARINGS 8. CONTINUED BUSINESS a) Immanuel Dental Sidewalk At the March 28, 2011, EDA meeting,the EDA approved a sidewalk option to match the streetscape. It is up to the City to install the sidewalk between Immanuel Dental and the Farmington Steakhouse. At that time the cost was $13,400. Due to this sidewalk being between two buildings,there will have to be drainage installed underneath the sidewalk. Staff contacted five companies and one quote was received from C.R. Fischer and Sons, Inc. for$19,222 for the base quote and both alternates. For the base quote and one alternate, which is the transverse brick, the cost is $11,075.50. The base quote for a plain concrete sidewalk is $8,275. The cost of this will come from the EDA fund. Member May was in favor of the cheapest option as the sidewalk is not visible. Member Bonar asked about drainage if we go with the base quote. City Engineer EDA Minutes(Regular) April 23,2012 Page 2 Schorzman explained the sidewalk is narrower with the base quote because it is not surrounded by bricks. There would be space between the sidewalk and both buildings for drainage. Member Bonar asked if something could be placed to prevent weeds and to give it the color of brick. He wanted to use the base quote, but still have the appearance as if there was brick installed. Member Bartholomay noted the rest of the sidewalks have bricks. He asked if there was an issue with weeds growing in between the bricks. That could happen over time, but can be controlled with spray. It is the City's sidewalk, so staff would maintain it. Chair Larson agreed with the idea of installing the base sidewalk, but was concerned with placing decorative rock on the sides. He asked about placing mulch on the sides. Staff agreed that would have to be replaced over time, but it would give the coloring of brick. Member Donnelly agreed with installing the base sidewalk. Member Jolley also agreed with the base sidewalk. MOTION by Bartholomay, second by May to approve the base quote and authorize C.R. Fischer and Sons to complete the sidewalk as quoted with mulch along the sides. Staff will install the mulch. APIF,MOTION CARRIED. b) Review Strategic Plan i. Tracking Sheet City Planner Smick reviewed the items that have been accomplished under the strategic plan. ii. Create a Business Retention/Expansion Program There are three approaches to accomplish this. One is traditional business visits, or have a Town Hall meeting and bring businesses in, or bring owners in one at a time to meet with City staff. The reason for the business visits is to show our appreciation for our businesses, find out strengths and weaknesses of the business climate, look at a marketing strategy, and determine the climate. There are four purposes for visits to the businesses; to introduce Council and City staff, provide information about available programs and services, respond to specific requests, and learn about business needs, plans and attitudes of the community through an informal survey. Business visits take up a lot of time. Another City holds Town Hall meetings and they work very well. Several businesses attend at one time and they can talk- among themselves. Staff could develop a basic survey to a very detailed survey. Chair Larson liked the Town Hall idea, and if that does not work,try another method and see what works best. Member Donnelly felt the Town Hall would be similar to Grow Farmington. His first option would be for staff to visit the businesses, as that is the least intrusive for them, but does take up staff time. Member Jolley stated if you want to get people to come to a Town Hall meeting, they will have to have a personal invitation and they need to feel there is a purpose to come. She suggested the EDA members could personally invite people to come. Member Bonar liked the options and offered another one being EDA Minutes(Regular) April 23,2012 Page 3 quadrant visits; industrial park, hwy 3, Pilot Knob, downtown and work in small groups to meet with them and use the one on one visits for those who could not attend the small group meetings. He suggested finalizing the process with a Town Hall meeting that brings all four groups together. Member Donnelly was concerned with calling attention to the fact there are different groups. Member May was not concerned with how much time the visits would take. She felt the FBA is doing some of this. The EDA needs one-on-one visits with going into the business and looking around. She suggested staff develop a calendar for the visits and the EDA members can fill in when they are available. One of the questions could be what type of meeting they think would be most helpful. We have to go to them. Mr. Clyde Rath, FBA President, suggested having two Town Hall meetings per year. Member May asked how that would be different from FBA meetings. Mr. Rath stated they could have FBA meetings here and include the EDA. Member May asked how the discussion would be different from an FBA meeting. Mr. Rath stated at FBA meetings they are doing reports and organizational things; they are not focused on economic development activities and business retention. If we had one or two Town Hall meetings per year, that could be the focus. He would definitely go the route of business visits. Some owners would like to show you what they have. In order to include industrial businesses he suggested also including the Chamber in the Town Hall meetings. Regarding the business visits, Mr. Rath suggested one EDA member and one staff person and have several teams to cover the businesses quickly. He noted we talk about Farmington businesses, so don't plan on visiting Castle Rock,because they are not in Farmington. He noted this is especially true along hwy 3, so suggested saying visits to Farmington area businesses and include everyone on hwy 3. City Planner Smick will prepare a calendar for business visits to cover three weeks and send it to the EDA. Member May suggested scheduling a Town Hall meeting with the FBA, Chamber, and EDA. iii. Satisfaction Survey When a property owner goes through the 30-day permit process, staff has prepared a satisfaction survey to follow-up. Dr. Dungy, Immanuel Dental, completed the survey. His responses were positive and staff will follow-up with him. iv. Development Assistance City Planner Smick and Assistant City Planner Wippler will set up meetings for developers with the appropriate staff for them to obtain all permits and licenses. They will work through the entire development process with the owners. c) EDA Composition The EDA has been discussing changing the composition of the EDA to two Councilmembers and five residents. Staff researched the Faribault EDA EDA Minutes(Regular) April 23,2012 Page 4 composition and designation of seats. The City Attorney has suggested leaving out any prescribed criteria or designated seats and have the Council evaluate the individual merits of each candidate with the goal being to establish the highest quality EDA. Staff recommended following State Statute and the City Attorney's recommendation and not designate seats. Regarding the residency requirement, if Council wants to appoint a non-resident they would need to change the ordinance. Farmington residency is a requirement for all boards and commissions. Staff recommended following the City code and maintaining the residency requirement. EDA members wanted to change the composition within the next few months and make it effective February 1,2013. Having five residents on the EDA would mean budgeting $600 for stipends;having three residents would require $360 for stipends. Member Bartholomay stated he had received information from the City Attorney that designating seats was possible if they were taxpayers. Member May agreed with staffs recommendation, but felt there should be five members not seven. You could add a couple ex-officio members. Member Donnelly agreed with staff's recommendation, but have five members. Mr. Clyde Rath was more concerned with the make-up than the number of members. Member May stated the fact the EDA has taxing authority, Council will appoint those three seats if there are five members. She felt Council would choose wisely from those that apply. Mr. Rath stated because of the unique nature of the EDA, he looks at it differently than other commissions. The EDA is about the business community and you have business people in this community that are paying taxes, that are part of the community, that are very much invested in this community, yet because you are not living in the community, you cannot participate. For the rest of the commissions, he felt it was fine to have a residency requirement,but for the EDA it is the business community you are trying to work with. If you don't include some of your best and brightest people from the business community, how are you going to achieve your mission? That was part of the business community's complaint about what was happening with the EDA in the past. Member May agreed and understand they pay taxes, but you have that taxing authority. She thought there are enough business owners that are residents that there would be a large enough pool. Mr. Rath stated you are leaving out a good number of the business owners that could really help you out. They would have taxing authority and have the power to say we are going to raise taxes, but they are also paying the taxes. So for them to raise taxes, it is a double edge sword because they will have to pay it. They have as much interest to make sure taxes are not raised unnecessarily as anybody else. Commercial taxes are far steeper than residential taxes so if a business person says we are raising taxes, they are looking at a steeper tax than residential. Member Bartholomay agreed with Mr. Rath and felt we should have seven members. He would like to ask the City Attorney more about the taxing authority. Staff clarified at the last meeting the issue about paying taxes had to do EDA Minutes(Regular) April 23,2012 Page 5 with the residency requirement, and did not pertain to designation of seats. Member Donnelly stated if I am a business owner and don't live in town, but lease a building,technically I am not paying taxes. Mr. Rath stated if you have a triple net lease then you pay the taxes in addition to the rent and taxes are listed separately. If you have a straight lease then you are paying taxes within the lease. Member Donnelly did not want to exclude anyone, but asked if the EDA or the Council has final authority on taxing. Member May stated so we are supposed to ask an applicant if they have a triple net lease? The residency requirement could be a sticking point with a lot of residents. A lot of residents feel the EDA should be the Council because they are elected. If we change the members of the EDA and now say they can be non-residents,that is why some of us are uncomfortable. Mr. Rath asked if the EDA were to propose a tax increase, would that have to go to Council for approval. Mayor Larson thought it did. Staff will check with the City Attorney on the taxing authority. Member Donnelly would approve having non-residents if the Council as final approval on taxing. Member May stated then we would say it is open to non-residents. Member Bartholomay felt they would have to pay taxes here. Member Donnelly stated they could apply if they have a business here. The reason people want seven is because two of the seats have to be Councilmembers. The EDA can decide on how to spend the EDA money. If they decided to increase the tax levy,would that have to come back to the Council? Staff stated the State Statute calls for two Councilmembers. The City code contains the residency requirement. Member May asked if this could be changed for just the EDA. Staff noted each commission has its own code. When we advertise for vacant seats, it is advertised everywhere. If there are business owners that live in Farmington and want to be on the EDA, they can apply. It is up to Council as to whether that person is the best fit. If they happen to be a business owner, great; but you would not have to specifically designate the seat. It is up to Council as to whom they chose, and the people that apply. In the past we have not had business owners applying. In fact very few people apply for boards and commissions. Member Bonar noted we do have the option to have two ex-officio seats. If they happen to be business owners that are non-residents, then you have a voice without a vote. Member May stated that would be her recommendation to have five members with two ex-officio's. Member Jolley stated she and Member Bonar were not designated when they were appointed, so where does that leave them if they decide to designate the ex-officio seats as they do not fit the pattern. Mayor Larson clarified they are throwing the Faribault model out. Member May did not like the Faribault model. She would like to leave it more up to the Council and who applies. Mr. Rath stated if you have your five sitting members and have advisory members,then you could have advisory members with a designated seat. You could have an FBA person and a Chamber person as an advisory seat. Member May stated if you as a very active member of the FBA applied for an advisory seat, you would likely be appointed. Once we designate, it might be easy to say that now with the current people. She felt they should not EDA Minutes(Regular) April 23,2012 Page 6 go to any type of designation. Mr. Rath stated that is not the way it was advertised last time. You had to be a resident. Member May stated that is the current ordinance,but we are talking about changing that going forward. Mr. Rath stated if you want to make it a strong team going forward, you should have a business person who is a member of the Chamber as an advisory seat and a member or officer of the FBA as an advisory seat. Member May stated it has to remain open. Mr. Rath stated the bigger issue is the six-year term. Mayor Larson asked if we need to have a workshop and spend a couple hours talking about this. Member May felt we should just keep talking about this and staff will bring back more information from the City Attorney. Mayor Larson stated he still feels the way the EDA is set up right now is the way it should be. The Council needs to be up here and have advisory people. If we do change,we should have seven members. Member Donnelly wanted to clarify his position. He does not like the designation, but would be open to seven members, and open to having non-residents, but as ex-officio seats to get their input. He liked the idea of an FBA and a Chamber member. There would be five voting members that would be residents. Member May wanted staff to ask the City Attorney if we can open the ex-officio seats to non-residents and designate them. Member Bonar felt diversity is the correct cause. Member May felt we should not designate seats and just let it happen. Member Jolley stated if you box yourself into designating, you will not always get the best candidate. She did not see why representatives from these groups don't just apply. They would be very well viewed by the Council because they are active. If you designate, you may have a second candidate that is excellent,but you can't select them because they are not in the right pool. 9. NEW BUSINESS a) EDA Elm Street Sign Mayor Larson noted according to Mr. Rath the FBA would be willing to take over the sign and lease it from the EDA for$1. At the March EDA meeting,members noted we are spending$27/month to light the sign. Staff provided a timeline of discussions on this topic over previous years. Currently there are ten businesses on the sign rotation and signs are rotated every month so a business is shown four or five times during the year. There is no fee being charged to businesses. The sign is outdated, but plain panels are still available for$325 and there would be an additional cost for vinyl graphics. Staff provided four options: 1. No longer light the sign and thereby eliminating the electrical expense. 2. Keep the sign lit and charge businesses $25/month to advertise. 3. Demolish the sign and leave the area empty. City staff may be able to handle demolition of the sign. The EDA would pay staff time for demolition and an electrician to cap off the electricity. EDA Minutes(Regular) April 23,2012 Page 7 4. Demolish the sign and put up an LED sign perhaps in a new location to advertise community events and businesses. Costs could be covered through business advertising fees, Water Board advertising, or liquor store advertising. Logo signs from organizations could be placed on the sign for a sponsorship. Mayor Larson noted option 5 would be from the FBA. Mr. Rath has spoken informally with the FBA and did not see any problems. Most of the people advertising are FBA members and he felt they could take over the sign and manage it. He would need to meet with the City Administrator on insurance and felt it would be covered through the City's insurance policy. These things need to be determined before a fee is set. He spoke with Godfrey Signs and a glass panel is $325 and then you have to add your vinyl graphics. There should be glass panels around with old vinyl, so we may not have to have a new glass panel for some cost savings. He did not see this as a long term solution, but just a bridge to get a plan in motion for the LED signs for downtown and Pilot Knob. Member Bartholomay liked options 4 and 5. Mr. Rath stated if you don't want to do either of these,then demolish it. If you don't light it, it just sits there,and sends the wrong message. Member May asked if it would be open to just FBA members. Mr. Rath stated it would be open to anyone. They would contact the FBA if they wanted to advertise and obtain a rate. Member Bartholomay suggested going with option 4 because that is where we need to be. We would need to get partners involved to pay for it and he would also add the school district as a partner. He also agreed with the FBA option for the current sign. Member May recalled at one time the Rotary looked at putting in an LED sign, the cost was $40,000 - $50,000, but then it came down to who would manage the notices. That turned into a much bigger discussion than putting up the sign. Member May asked if the FBA would rent it out and make money on it. Is there any issue with something that is owned by the City and the FBA rents it out? Staff has spoken briefly with the City Attorney and a lease agreement would need to be drafted that would cover the City as far as any liability. Staff asked if FBA members would be changing out the panels. Mr. Rath stated that needs to be determined. He did not see it being a money maker as there is space for only four signs and they have to rotate. Member May wondered if it was legal because it is owned by the City and someone else makes money off of it. Mayor Larson suggested putting this on hold, Mr. Rath should meet with City Administrator McKnight to work out the details and when it is ready, bring it back to us. 10. CITY STAFF REPORTS Member May stated Ramble Jam did go live on K102 with an announcement of the lineup. It will be two days with 260 camp sites. EDA Minutes(Regular) April 23,2012 Page 8 City Planner Smick stated the Farmington BrewHaHa is Thursday at Roundbank. The tri-folds were a combination of Mr. Rath and Ms. Tutewohl getting information to the community. They will be used as table tents for restaurants and on counters. Staff provided the artwork. City Planner Smick will be attending a seminar on grant writing. Executive Assistant Muller reminded the EDA of the ribbon cutting for Pellicci Hardware on May 3, 2012, and Immanuel Dental on May 18, 2012. Pizza Man has started his expansion project. 11. ADJOURN MOTION by Bartholomay, second by May to adjourn at 8:03 p.m. APIF, MOTION CARRIED. Respectfully submitted, Cynthia Muller Executive Assistant oe _ §1 _ 2 a 0 § § 3 AI § 0 o 0 § \ 0 I— z \ w / 0 0 0 0 § 0 / j 0 °1m % i i \ La a ® k 0 E < \ 0 \ J 0 13 I § a n _ co k k B 8I 2 § . �I 2 0 0 0 § § § 3 i < { \ \ 2 2 co In k / q e \ of z w 0.10 0 CO Q k 0 ? ° CO I- z co F. ) W § § .cif G. ] co s in .J CO cu ) j ri > \ L..9 w 0 f ƒ 0 < d < 0 < $ / § / § § Ti 2 § § - R § k ` ° § § / / % q (0 ( ti C> E k § _ _ csi $ a \ 2 j ui as CO _ ■ _ co LC) § k _ a 0 6e_ k - kk i 22 2 - N ' ') § ` °` § §§ § / § . . Ft 8 . fn•: ©g . . ) . . . k . . ; . e . 2 / . . , ■ . K 1 . $ [ O \ . ! } ! \ ¢ . A a ƒ 8 E $ 7 . k 7 f k f $ 7 , k T k J E # 8 # \ E § § f § f , ' f £ i. \ k ° K i § n 2 § k 9 ® ! f K 7 \ ° R m ■ B k ! \ ! k \ ■ K ƒ ■ m ■ _ m A ! 7 , ! \ k t K \ a g E 2 5, ! 2 1 ., • ! . f . . A . § §§ S § ! kk I ~ ~ § " i ■ II ia, | § il - - ! 2 !§ 2§ | •ki& ! .1 r `k §2k I& tiflilil g!ti 7 { `!! �!2- i ! /� § i!P o II !LW£ atlkk� l ! | ®ll§ � k� I g a | § � §© § 2 § Rn §2§e§■°§e 12 §e ; § aasa 4 v� ARki4 City of Farmington j 430 Third Street P`. Farmington, Minnesota toggs8 a>es• 651.280.6800•Fax 651.280.6899 www.ci.farmington.mn.us TO: Economic Development Authority FROM: Cynthia Muller, Executive Assistant SUBJECT: EDA Composition DATE: May 29, 2012 INTRODUCTION EDA members have been discussing changing the composition of the EDA to two Councilmembers and five residents. DISCUSSION Staff has contacted the City Attorney to follow-up on several questions members raised at the last meeting regarding the following: Taxing authority—The statute allows the Council to grant or limit the powers of the EDA through the enabling resolution. The resolution can condition all of the EDA's particular powers, such as issuing bonds, on prior approval of the Council,but with regard to its taxing authority,the statute specifically provides that"the City may, at the request of the authority, levy a tax in any year for the benefit of the authority." If the EDA decided to increase the tax levy, the EDA could only request an increase. The final decision on whether the levy is increased would remain with the Council. Final approval on spending the EDA budget—In the enabling resolution the Council can require that the authority follow the budget process for City departments as provided by the City and as implemented by the Council, and any other limitation established by the Council by the enabling resolution. But the law contemplates that its checks are signed by the treasurer of the EDA and one of its officers. Designation of ex-officio seats and allowing non-residents—The EDA statute is silent as to the eligibility of non-residents to serve as commissioners, but the HRA statute specifies that an authority shall consist of up to seven commissioners, who shall be residents of the area of operation of the authority. The difference between those two sections of law at least raises questions with regard to whether an EDA, particularly one that exercises the powers of an HRA, can have non-residents as commissioners. One factor guiding other cities is whether the board is purely advisory to the Council or whether it has more independent taxing, spending, or decision- making authority, and where it has greater responsibility, there more frequently is a determination that the members must be residents. The statute is also silent whether the Council can condition appointment on the commissioner's status with an outside group. The role of an applicant can be taken into account when the Council makes the appointment, but whether a subsequent change in role would serve to affect the EDA appointment is an open question. Given that commissioners are protected from arbitrary removals by statute that provides a commissioner may be removed by the Council for inefficiency, neglect of duty, or misconduct in office, it is foreseeable that a non-resident or designated representative appointee might refuse to resign or could challenge a decision of the Council to appoint a successor because the commissioner moved out of the area or dropped their membership in a particular group. Residency requirement for other boards and commissions—Changing the EDA ordinance to allow non-residents does not change the residency requirement for other commissions. However, it increases the likelihood of challenge for extending the same rule to other advisory groups. Attached is a copy of the enabling resolution when the EDA was formed in 2005, stating the powers of the EDA. Also attached is the current EDA City Code. The EDA has a preference for seven members and wants to make this effective February 1, 2013. In December, staff will advertise for three seats; one for a five-year term and two for six-year terms. At that time the current two ex-officio seats would become official seats. The two Council seats would be appointed during the annual organizational matters. BUDGET IMPACT Having five residents on the EDA would mean budgeting $600 for stipends. Having three residents on the EDA would require $360 for stipends. ACTION REQUESTED It is staff's recommendation to not designate seats, continue with the residency requirement, and it appears there is an EDA preference for seven members (including two Councilmembers and five residents)on the EDA. The EDA should direct staff to bring a request to the June 4, 2012, Council meeting to set a public hearing for June 18, 2012,to adopt an enabling resolution and ordinance to change the composition of the EDA to five residents and two Councilmembers. Respectfully submitted, Cynthia Muller Executive Assistant RESOLUTION NO.R104-05 RESOLUTION ENABLING THE CREATION OF AN ECONOMIC DEVELOPMENT AUTHORITY IN THE CITY OF FARMINGTON,MINNESOTA BE IT RESOLVED by the City Council of the City of Farmington,Minnesota: SECTION 1. BACKGROUND AND FINDINGS. 1.01 The City is authorized by Minnesota Statutes, Chapter 469 ("the Act") and specifically Section 469.091, to establish an Economic Development Authority to coordinate and administer economic development and redevelopment plans and programs of the City of Farmington. 1.02 The encouragement and financial support of economic development and redevelopment in the City is vital to the orderly development and financing of the City and in the best interests of the health,safety,prosperity,and general welfare of the citizens of the City. 1.03 The economic development and redevelopment of the City can best be accomplished by the establishment of an Economic Development Authority as authorized by the Act. 1.04 The City Council has in accordance with the Act and Section 469.093 provided public notice and conducted a public hearing on August 15,2005, concerning the establishing of an Economic Development Authority at which hearing all persons desiring to express their views were heard. SECTION 2. ENABLING RESOLUTION. 2.01 The Economic Development Authority of the City of Farmington, Minnesota ("EDA") is hereby established. The EDA is a public body corporate and politic and a political subdivision of the State of Minnesota. 2.02 Subject to the limitations contained in this Resolution, the EDA is granted the powers contained in Minnesota Statutes Sections 469.090 to 469.108, and the powers of a housing and redevelopment authority under Minnesota Statutes Sections 469.001 to 469.047 or other law. 2.03 The EDA consists of a governing body of seven(7)commissioners.Members shall be citizens of the United States and residents of the City.Two seats shall be held by sitting members of the City Council.The remaining seats shall be filled by citizens appointed by the Mayor and approved by the City Council. The terms of the Council members shall be concurrent with the Council members' City Council terms and shall expire at the same time as the members' Council terms of office.The remaining five(5)members will be appointed to one(1),two(2), three(3), four(4)and five(5)year terms initially. Subsequent appointments to the five(5)seats filled by citizens will be for six (6)year terms. SECTION 3. LIMITS OF POWERS. 3.01 The following limits shall apply to the Economic Development Authority and its operation: (a) The sale of all bonds or obligations issued by the EDA shall be first approved by the City Council. (b) The EDA shall follow the budget process for City Departments as may be provided by the City and as implemented by the City Council and Administrator. (c) All official actions of the EDA must be consistent with the City Comprehensive Plan and official controls implementing the Comprehensive Plan. 3.02 This enabling Resolution may be modified by the City to make any changes as authorized by the Act. 3.03 As provided in the Act, it is the intention of the City Council that nothing in this Resolution nor any activities of the EDA shall be construed to impair the obligations of the City under any of its contracts or to affect in any detrimental manner the rights and privileges of a holder of a bond or other obligation heretofore issued by the City. The City Council shall not modify any limit in effect at the time any bonds or obligations are issued or contracts executed to the detriment of the holder of the bonds or obligations or any contracting party. SECTION 4. TRANSFER OF AUTHORITY OF FARMINGTON HOUSING AND REDEVELOPMENT AUTHORITY. 4.01 Pursuant to the authorization of Minnesota Statutes Section 469.094, the City of Farmington hereby transfers to the Economic Development Authority of the City of Farmington established by this Resolution,all activities,programs,operations,and authority of the existing City of Farmington Housing and Redevelopment Authority ("BRA"), including the transfer of the control, authority, and operation of any project as defined in Section 469.174,Subd. 8,or any other program or project authorized by Sections 469.001 to 469.047, or Sections 469.124 to 469.134 located within the City of Farmington. The EDA shall accept the control, authority, and operation of all projects, programs, or activities of the HRA. The EDA shall exercise all of the powers that the HRA could exercise. This transfer of authority from the HRA to the EDA shall be effective January 1,2006. 4.02 The EDA shall covenant and pledge to perform the terms,conditions,and covenants of the bond indenture or other agreements executed for the security of any bonds issued by the Farmington Housing and Redevelopment Authority. The EDA shall exercise all of the powers necessary to perform the terms, conditions, and covenants of any indenture or other agreements executed for the security of the bonds and shall become obligated on any such bonds by reason of the transfer as provided in this Resolution. 4.03 All employees, if any,of the HRA as of December 31,2005, are hereby transferred to the authority, direction, supervision, and control of the EDA. The placement of any employees under this direction, supervision,or control of the EDA does not affect the rights of any employees of the previously existing BRA. Any employees of the HRA shall become employees of the EDA. SECTION 5. IMPLEMENTATION. 5.01 The City Council shall from time to time adopt such ordinances and resolutions as are required and permitted by the Act to give full effect to this Resolution. 5.02 The Mayor, the City Administrator, and other appropriate City officials are authorized and directed to take the actions and execute and deliver the documents necessary to give full effect to this Resolution. PASSED AND DULY ADOPTED by the Council of the City of Farmington this 15th day of August,2005. /✓.�'�� / ayor Attested to the' day of August,2005. S, — City 1-110 •I % or SEAL 2-8-1 2-8-2 CHAPTER 8 ECONOMIC DEVELOPMENT AUTHORITY SECTION: 2-8-1: Authority Established 2-8-2: Governance Provisions 2-8-1: AUTHORITY ESTABLISHED: It is hereby recognized that in the city there was created, March 18, 1974, a housing and redevelopment authority. Effective upon adoption of an enabling resolution as required by Minnesota Statutes Annotated section 469.091, all programs, projects, activities and personnel of the housing and redevelopment authority are transferred to the economic development authority (EDA). The EDA is authorized to exercise on behalf of the city the powers conferred by Minnesota Statutes Annotated sections 462C.01 to 462C.08 including power to issue and sell single-family housing revenue bonds. The EDA shall, upon request of the city council, make periodic status reports to the city council regarding any action(s) undertaken pursuant to the power(s) conferred hereby. (Ord. 005-541, 8-15-2005) 2-8-2: GOVERNANCE PROVISIONS: The following provisions regarding governance of the authority are hereby adopted: (A) Members; Officers: The authority shall consist of five (5) council members who shall choose from among themselves a chair, vice chair and other officers as required by law and two (2) persons to serve in an ex officio capacity. (B) Designated Seats: Five (5) seats shall be held by sitting members of the city council. The two (2) nonvoting or ex officio seats shall be appointed by the mayor with the approval of the city council. September 2011 City of Farmington 2-8-2 2-8-2 (C) Qualifications: Members shall be citizens of the United States and residents of the city. (D) Terms Of Office: The term of the council members shall be concurrent with the council members' city council terms and shall expire at the same time as the members' council term of office. Terms of the ex officio members shall be for six (6) years, except that one of the initial appointments shall be for three (3) years, one for five (5) years and appointments to fill any vacant positions may be made for the balance of the unexpired term. Commissioners who are not council members may be removed as provided by law. (E) Compensation: Members of the authority who are council members shall serve without pay, but may be reimbursed for reasonable personal expenses. Members of the authority who are not council members shall receive ten dollars ($10.00) per meeting in addition to reasonable personal expenses. (F) Oath Of Office: Prior to assuming the duties to which first appointed, each member shall take an oath of office. (Ord. 011-633, 5-16-2011) September 2011 City of Farmington