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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.