HomeMy WebLinkAboutHousing & Redevelopment Authority Packet 11-20-1975CITY OF PLYMOUTH
3025 HARBOR LANE, PLYMOUTH, MINNESOTA 55441
TELEPHONE (612) 559-2800
DATE: November 20,
1975Memo
TO: James G. Willis, City Manager
FROM: Charles E., Aillerud, Planning Directo
SUBJECT: Housing and. Redevelopment Authority
At Council direction, we have prepared a sytOpsis (attached) of the Statutory
Membership Requirements, Operations Methods o.nd Powers of a Housing and
Redevelopment Authority in Minnesota.
A very important operational factor involves the project orientation of .an
Authority. Virtually any HRA activity must take the form of a specific
project (resulting in a specified end product). Every project undertaken
must be preceded by a detailed plan,. program and budget. The key relation-
ship between a City Council and an HRA Board is tine stat«tory requirement
that all such plans, programs and budgets must receive specific Ifty Council
approval prior to implementation by the HRA (much like a City Department).
Likewise, any chtanges in a project proposed by an HRA must also receive
City Council approval. Simply stated, most of the statutory HRA powers
particularly those involving real estate transactions) are not available
except to implement a specific project, the plans for which must be approved
by the City Council, in advance.
From where, then, come all those "problems" between City Councils and NRA
Boards that we hear so much of? A significant portion come from the imagina.-
tions of the semi-professional anti -urban renewal legions. what better
HRA?
to embarrass a City Council than to accuse them of creating a "monster"
The vast majority of the problems, .however, are the result -of extended
term projects of immense pomplexity that have been undertaken by many HRA's..
A typical situation involves a City Council approving a project for an
HRA in 1960. Chances are good -,hat the original HRA Board and the City
Council were on the same "wave length" in 1960. The HRA enters into several
contracts to implement the project. The project moves slowly and costs
escalate (if only from infiation). The HRA Board changes as well as the
Council membership. All of a sudden, everyone is on different wave
lengths: the NRA Board must honor contracts and finish the project while
the new Council does not like its predecessors' ideas but cannot easily
stop an already approved project. All of a sudden, we have an '-out of control"
HRA.
The keys to successful NRA projects speed and simplicity, the basic pre-
requisite is a good project plan that all parties understand. To both cut
wn the number of "parties" involved in an HRA project and to maintain
some degree. of continuity Minnesota communities are beginning to use the
following organizational: techniques:
1. Appointing one or more City Councilmen to the HRA Board.
20. Assigning. all HRA planningg and administrative activity within
City operating departments (as opposed to separate andself
perpetuating NRA staff).
The whole concept of a separate KRA body to undertake redevelopment and.
housing projects was with the idea of removing tong term projects from
short term political change. In practice, the concept has worked so well
as to create antagonism and "problems". Plymouth might well carefully
consider the above two organizational features to %void giving "problems"
a place to grow.
Outside of funds generated by specific projects (project "cash flow" or
state/federal grants) an HRA can obtain operating funds in but two ways:
1. A special levy (now limited to cbout 1/3 mill) only upon the
consent of the City Council. A Council should, but does not have
to, require a detailed MRA budget for theTevy expenditure.
2. A direct City Council grant of operating funds. Again, a budget
should be a must.
Without funds, an MRA is powerless. To get funds, an NRA must go to the City
Council. If the "power of the purse" Is properly handled, the HRA remains
the implementing arm of the Council rather than an antagonist to the Council,
It would seem appropriate in Plymouth to establish an immediate and perma-
nent relationship between the NRA Board and the City Community Development
Department for all HRA Staff services. In this manner, all NRA funds,
whether generatieTly Council grant, outside grant, statutory levy or
internally through HRA projects, will be expended under the direct supervision
of the City Manager. This should lessen the free standing "empire" complex
attached to so many existing HRH's,
In addition, Plymouth may wish to appoint cne or more Councilmen to the
HRA Board. This has been legal only for the past few years. It seems
like an excellent nx`thod to assure .a close HRA/City Council relationship.
In summary, many "problems" existing between HRA's and City Councils
in Minnesota are the result of budgetary and staff independence the HRA's
have gained after project plans are approved by the City Council. Careful
Council scrutiny of HRA project plans coupled with proper organizational
arrangements for the HRR will assure an operation free of such problems.
We, in Plymouth, are fortunate in our.position to learn from the unintentional
errors of other communities.