EDA Meeting Date: February 24, 2025
To: Members of the Economic Development Authority
From: Nate Carlson, Economic Development Coordinator
Title
EDA Resolution relating to the proposed establishment of Economic Development District No. 1, pursuant to Minnesota Statutes, 469.090 through 469.1082, as amended.
Body
Action Requested:
The Economic Development Authority is recommended to consider a motion to approve Resolution 2025-002 approving the proposed establishment of Economic Development District No. 1, pursuant to Minnesota Statutes, 469.090 through 469.1082, as amended.
Summary Report:
Northfield has established an EDA as authorized for cities pursuant to Minnesota Statutes, Section 469.090 through 469.1082 (the Economic Development Authority Act). The EDA’s powers are governed by the EDA Act and the enabling resolution approved by the City Council.
One such power is the ability to create and define the boundaries of one or more economic development districts within the city in order to use its authorized EDA powers to carry out its purposes within them. The establishment of such a district is subject to the EDA holding a public hearing, with public notice published at least 10 days prior to the hearing date. The notice was published in the Northfield News on February 12, 2025.
The EDA Board must find that it is proper and desirable to establish and develop the district within the city. Subsequent activities that an EDA can consider carrying out within such a district potentially include the ability to acquire interest in property, make contracts, study and analyze economic development needs, develop and improve lands within a district for economic development uses, lease its property, issue bonds, engage in public relations, participate as a limited partner, and operate and maintain a public parking facility or other public facilities to promote development.
The statement of need and public purpose within the drafted Economic Development District Plans Section II states that:
The EDA finds that there is a need for development within the City and the Development District to provide employment opportunities, to improve the local tax base, to provide public facilities, and to improve the general economy of the City and the State. The sound development of the economic security of the residents of the City depends upon proper development of marginal and other property, which includes property that meets any one of a number of conditions, including without limitation properties whose values are too low to pay for the public services required or rendered and properties whose lack of use or improper or obsolete use has resulted in stagnant or unproductive land that could otherwise contribute to the public health, safety, and welfare.
The EDA finds that certain existing public facilities are outdated or lack adequate space to serve the needs of the City’s population. The Development District will allow the City to encourage commercial development to stimulate future development of the City by providing access to public services and facilities to the citizens of and businesses in the City. Each Project will be evaluated, from time to time, by the City and the EDA to determine that it is in the best interest of the health, safety and welfare of the City.
Construction of a public parking facility, ice arena, or other public facilities to promote development in cooperation with the City is anticipated to provide a stimulating effect for development of other parcels in the City. The EDA specifically finds that the Development Plan will afford maximum opportunity, consistent with the needs of the City as a whole, for the development of the City by private enterprise and that the Development Plan shall conform to the general plan for the development of the City as a whole, subject to permitted variances or other exceptions as approved from time to time.
The EDA also finds that the welfare of the City and the State requires the active promotion, retention, attraction, encouragement, and development of economically sound industry and commerce through governmental action for the purpose of preventing the emergence of blighted lands and areas of chronic unemployment. It shall also be the policy of the EDA to facilitate and encourage such action as may be necessary to prevent the economic deterioration of such areas to the point where the process can be reversed only by total redevelopment. Through the use of the powers conferred on the EDA pursuant to the Act, promoting economic development may prevent the occurrence of conditions requiring redevelopment and prevent the emergence of blight, marginal land, and substantial and persistent unemployment.
The City of Northfield has requested that the EDA consider the use of its powers to assist in the development and financing of potential public facilities in the future. For example, the City has identified these facilities as a potential public parking facility, ice arena or other public facilities to promote development in the city.
The EDA’s financial advisor, Nick Anhut of Ehlers, will be in attendance of the meeting and presenting this item.
Alternative Options:
The EDA may adopt a district of a different size, not adopt a district at all, or discuss an alternative option pertaining to the economic development district.
Financial Impacts:
Under the EDA Act and enabling resolution, the EDA may consider issuing its revenue bonds upon council approval to provide money to pay to acquire land; purchase or construct facilities; purchase, construct, install, or furnish capital equipment to operate a facility for economic development of any kind within the city, or to pay to extend, enlarge, or improve a project under its control.
The revenue bonds may be secured by a pledge of and lien on EDA revenue from the facility or other named facilities, which may include rents and charges for the use or services furnished by the facilities, lease revenues, or other revenues available to it.
The proposed district is city-wide, reflecting the desire to consider and carry out these purposes throughout the city in keeping with the City’s enabling resolution and not restrict them to any one parcel or contiguous set of properties within the boundaries of the city.
Tentative Timelines:
EDA Resolution Action Approving the District Boundaries - February 24, 2024