5a. Scandia Memo EDA Billa
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WASHINGTON COUNTY HOUSING
Memo To: Scandia EDA
From: Barbara Dacy, Executive Director
Melissa Taphorn, Deputy Executive Director
Date: January 26, 2016
RE: Proposed Legislation to Add Economic Development
Powers to Washington County HRA
The Washington County Housing and Redevelopment Authority (HRA) has drafted legislation to
amend its enabling law to add economic development powers and requests that the Scandia EDA
support a proposed bill (Attachment A) to be introduced during the 2016 legislative session. The
proposed bill to empower the HRA to undertake economic development activities has been
identified as part of the 2016 legislative agendas for both Washington County and Washington
County HRA.
Background
In 2014, Washington County developed an Economic Development Strategic Plan with the help
of a work group consisting of city economic development practitioners and community
representatives. The Plan defines the County's role in economic development, establishes
guiding policy principles, and identifies specific strategies and goals. In 2015, the County Board
determined the Washington County HRA to be the best organizational structure to be responsible
for county -wide economic development activities. The Board recommended further that the
agency should be renamed to the Washington County Community Development Agency (CDA) to
reflect the full scope of responsibilities.
Implementing the Washington County Economic Development Strategic Plan
Guiding Principles
It is envisioned that the Washington County CDA will fill a vital role in coordinating county -level
economic development activities and will support communities in the county in working towards
their individual economic development goals. The Washington County CDA will also act as the
contact with Greater MSP, while promoting and providing access to federal, state, regional, and
local economic development programs. The Washington County CDA would adhere to the
following economic development guiding principles identified in the Strategic Plan:
• The private sector is the lead that drives the economy.
• The county will not duplicate or replace the work of cities and other public agencies.
• The County supports a strong collaborative approach to economic development.
• Business attraction and business retention are essential policy objectives.
• The diversity of the County requires an adaptable and open-minded approach.
• A deliberate, purposeful and strategic plan is required.
fax 651.458.1696 1 tel. 651.458.0936 1 www.wchra.com 1 7645 Currell Boulevard I Woodbury, MN 55125
Establishing the Washington County CDA
The Washington County HRA was created in 1980 under a special enabling law. In order to carry
out the recommendation of the 20+ member work group and add economic development powers
to the HRA, this enabling law must be amended. The proposed bill will add to the HRA the
powers of an economic development authority and will formally establish the Washington County
CDA. The proposed bill follows the same process taken by CDAs established in Dakota, Scott,
and Carver counties.
Goals and Benefits of Proposed Bill
Goals
The proposed bill to amend the HRA's enabling law was drafted to fulfill the following goals:
• Add powers to enable the County to address economic needs.
• Provide flexibility to determine the nature and extent of economic development activities
given the diversity of municipalities, large and small.
• Maintain current level of control by County Board over levy authorization.
• Complement programs of municipal economic development authorities and not impede
their activities.
• Confer consistent geographic jurisdiction, defined as the boundaries of Washington
County, for both HRA and EDA activities.
Benefits
Adoption of the proposed bill will empower the HRA with the authority necessary to undertake the
following Economic Development Strategic Plan goals, which are not currently provided in its
existing enabling law:
• Implement county marketing and public relations programs.
• Implement any economic development studies needed as a basis to document need for
financial assistance programs.
• Implement financial assistance programs for economic development purposes.
Key Aspects of the Proposed Bill
Key aspects of the proposed bill include naming of the agency, determining levy authority,
establishing relationship to municipal economic development authorities, offering tax -forfeited
lands to the CDA, and identifying limitations requiring County Board approval.
Agency Renaming
In order to adequately represent the combined housing, redevelopment and economic
development powers to be bestowed, it is proposed the HRA be renamed the Washington County
Community Development Agency (CDA). While this term is not defined in statute, the CDA
nomenclature has been adopted by Dakota, Carver and Scott counties in their respective
enabling laws. The consistency in terminology across the Minneapolis -St. Paul metropolitan area
provides for greater recognition and understanding of a county CDA.
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Levy Authority
State Statute permits special levying authority for housing and redevelopment authorities up to
0.0185% upon all taxable property, subject to the consent by resolution of the governing body. In
addition, a county may, at the request of an economic development authority, levy a tax of up to
0.01813% upon all taxable property. The EDA levy rate may be increased upon following a
procedure detailed in state statutes. The proposed bill, however, retains the County Board
consent process currently in place for establishing the levy rate and amount under the HRA limits
in section 469.033, subd. 6, and, it waives EDA tax levying authority under section 469.107. But,
the proposed language reserves the right to levy the higher of the HRA or EDA permissible rates,
as they may be determined by the legislature. This provides the County with future flexibility
should there be a program or issue that the County determines is appropriate for this purpose.
On an annual basis, the HRA Board has prepared a levy request, within its annual budget, of
sufficient size to complete its strategic priorities and financial obligations for approval from the
County Board. Under the amended enabling law, the CDA would follow the same process in
proposing an annual levy request and obtaining the consent of the County Board.
Municipal Economic Development Authorities
The HRA's current enabling law requires municipal approval prior to the HRA undertaking a
housing development. The proposed bill maintains this requirement and adds the municipal
approval requirement prior to exercising economic development powers.
Offer of Tax Forfeited Land
When the County receives real property through the tax forfeiture process, it may determine the
property to be appropriate for a housing, redevelopment, or economic development purpose.
Currently, the HRA must purchase forfeited parcels in the same process as the general public.
The proposed bill adds that such parcels "may" be offered to the CDA in the same manner it
would be offered to a County department with justification of public purpose.
Composition of CDA Board
The proposed bill offers no change in board composition. The HRA Board is currently composed
of seven members: five appointees representing each County district, a representative of the
County Board of Commissioners, and a representative of the HRA's public housing and/or rental
assistance residents.
Next Steps
Staffing
The HRA will hire a full-time Economic Development Director. The director will work closely with
municipalities to supplement and complement their economic development programs and
projects. The director will lead county -wide economic development efforts and manage county-
wide financial assistance programs.
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Passage of the Proposed Bill
The HRA and County are in the process of identifying authors in the both the Minnesota Senate
and House of Representatives. The proposed bill is not expected to be controversial if supported
by municipalities in Washington County.
County Resolution
Upon passage of the proposed bill, the County Board will need to pass a resolution to formally
confer the EDA powers on the HRA. The resolution will further identify any limitations of EDA
powers the County may wish to impose on the CDA.
Recommendation
The HRA requests support for the proposed bill by adopting the attached resolution.
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