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91-2172�RIG�NAI � ��Council File # _ Gree et # RESOLUTION 'CITY OF SAINT PAUL, MINNESO � Presented By +` Referred To Co at WHEREAS, certain economic development and financing needs exist outside of Saint Paul's existing redevelopment areas and CDBG eligible areas; and WHEREAS, many of the areas which are in need of Redevelopment and Economic development assistance do not qualify as redevelopment areas or fulfill CDBG eligibility criteria; and WHEREAS, Saint Paul has identified the need to target and better direct its economic and redevelopment resources to meet the Community's needs for redevelopment of vacant buildings, working capital, day care facilities, neighborhood parking facilities, and other development assistance targeted to individual business enterprises and economic development projects outside of currently eligible areas; and WHEREAS, the activities authorized by the State Legislature for Economic Development Authorities (EDA) and other housing and economic development entities provide for greater flexibility in financing economic and redevelopment projects; and WHEREAS, last legislative session Senator Kelly and Representative Hausman introduced bills that would allow Saint Paul to accomplish its goals and the language was amended on to the omnibus housing bill. However; this bill did not make the deadline in the House, but is still ,alive for the 1992 session. NOW, THEREFORE, BE IT RESOLVED, that the Mayor and City Council of the City of Saint Paul hereby strongly support legislation to provide the City of Saint Paul and the Housing and Redevelopment Authority of the City of Saint Paul with expanded authority to undertake redevelopment and�economic development activities and implement a citywide economic development program. smon Ye�- Nav$ Ab$ent Requested by Department of: oswi a �- on � acca ee � et man � vne i By: Adopted by Council: Date �gg� Fo� Approved by City Attorney t1EC 5 Adoption Ce 'fie�l by Counci ec etary /---..., By: By� n� Approved by Mayor for Submission to Approved by or: Date �J ti °�' Council B l ��c��`�i ay: Y= . PUBIISHED DEC 14'91 � rr-��a � DEPARTMENT/OFFICE/COUNCIL DATE INITIATED N� 15 8 21 city counci� 11/25/91 GREEIV SHEET CONTACT PERSON&PHONE INITIAL/DATE INITIAUDATE �DEPARTMENT DIRECTOR a CITY COUNCIL Councilmember Long x4473 ASSIGN �CITYATfORNEY �CITYCLERK MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR �BUDf3ET DIRECTOR �FIN.8 MGT.SERVICES DIR. ROUTING ORDER �MAYOR(OR ASSISTANT) � TOTAL#OF SIGNATURE PAGES (CLIP ALL LOCATIONS FOR SIGNATURE) ACTION RE�UESTED: Supporting State legislation to expand the authority of Housing and Redevelopment Authority (HRA) . RECOMMENDATIONS:Approve(A)or ReJect(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: _ PLANNING COMMISSION _CIVIL SERVICE COMMISSION �• Has this person/firm ever worked under a contract for this department? _CIB COMMITTEE _ YES NO _3TAFF _ 2• Has this personlfirm ever been a city employee? YES NO _DI3TRICT COURT _ 3. Does this person/firm possess a skill not normall y possessed by any current city employee? SUPPORTS WHICH COUNCIL OBJECTIVE7 YES NO Explaln all yes answers on separate sheet and attach to green aheet INITIATINQ PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): Many areas that are in need of economic redevelopment aid are ineligible for assistance from the HRA. ADVANTAGES IF APPROVED: The HRA would be able to expand its operations to work on redevelopment projects that it would not otherwise be able to work on. DI3ADVANTAGES IF APPROVED: None. DISADVANTAOES IF NOT APPROVED: Areas in need of redevelopment assistance will not be helped. TOTAL AMOUNT OF TRANSACTION S COST/REVENUE BUDGETED(CIRCLE ONE) YES NO FUNDING SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION:(EXPLAIN) � � NOTE: COMPLETE DIRECTIONS ARE INCLUDED IN THE GREEN SHEET INSTRUCTIONAL MANUAL AVAILABLE IN THE PURCHASING OFFICE(PHONE NO.298-4225). ROUTING ORDER: Below are correct routings for the five most frequent rypes of documents: CONTRACTS(assumes suthorized budget exists) COUNCIL RESOLUTION (Amend Budgets/Accept. Grants) 1. Outside Agency 1. Department Director 2. Department Director 2. Ciry Attorney 3. City Attorney 3. Budget Director 4. Mayor(for contracts over$15,000) 4. Mayor/Assistant 5. Human Rights(for contracts over$50,000) 5. City Council 6. Finance and Management Services Director 6. Chief Accountant, Finance and Management Services 7. Finance Accounting ADMINISTRATIVE ORDERS(Budget Revision) COUNCIL RESOLUTION (all others, and Ordinances) 1. Activity Manager 1. Department Director 2. Department Accountant 2. City Attorney 3. Department Director 3. Mayor Assistant 4. Budget Director 4. Ciry Council 5. City Clerk 6. Chief Accountant, Finance and Management Services ADMINISTRATIVE ORDERS(all others) 1. Department Director 2. Ciry Attorney 3. Finance and Management Services Director 4. City Clerk TOTAL NUMBER OF SIGNATURE PAGES Indicate the#of pages on which signatures are required and paperclip or ftag eech of these pages. ACTION REQUESTED Describe what the projecUrequest seeks to accomplish in either chronologi- cal order or order of importance,whichever is most appropriate for the issue. Do not write compiete sentences. Begin each item in your list with a verb. RECOMMENDATIONS Complete if the issue in question has been presented before any body, public or private. SUPPORTS WHICH COUNCIL OBJECTIVE? Indicate which Council objective(s)your projecVrequest supports by listing the key word(s)(HOUSING, RECREATION, NEIGHBORHOODS, ECONOMIC DEVELOPMENT, BUDGET, SEWER SEPARATION). (SEE COMPLETE LIST IN INSTRUCTIONAL MANUAL.) PERSONAL SERVICE CONTRACTS: This information will be used to determine the city's liability for workers compensation claims,taxes and proper civil service hiring rules. INITIATING PROBLEM, ISSUE,OPPORTUNITY Explain the situation or conditions that created a need for your project or request. ADVANTAGES IF APPROVED Indicate whether this is simply an annual budget procedure required by law/ charter or whether there are specific ways in which the City of Saint Paul and its citizens will benefit from this projecUaction. DISADVANTAGES IF APPROVED What negative effects or major changes to existing or past processes might this project/request produce if it is passed(e.g.,traffic delays, noise, tax increases or assessments)?To Whom?When?For how long? DISADVANTAGES IF NOT APPROVED What wiil be the negative consequences if the promised action is not approved? Inability to deliver service?Continued high traffic, noise, accident rate? Loss of revenue? FINANCIAL IMPACT Although you must tailor the information you provide here to the issue you are addressing, in general you must answer two questions:How much is it going to cost?Who is going to pay? �9�� ✓ STATE AUTHORIZATION FOR ECONOMIC DEVELOPMENT ACTIVITIES BRIEFING PAPER Background Saint Paul is in need of state authorization to enable it to target its economic development programs more effectively. In late 1989, as City staff were attempting to launch several new programs for meeting Citywide Economic Development needs, certain severe limitations on Municipal and HRA Statutory Power became evident. The Citywide Vacant Building Program. The Citywide Child Care Financing Program, and The Neighborhood Parking Program were all intended to address the need for small business financing on a citywide basis. Also, the Capital Line Program was intended to provide "working capital" loans. Each of these programs has suffered in implementation from certain HRA and Municipal law restrictions which limit remedial action to blighted areas and that remain, by and large, as obstacles to achieving the intended program objectives. Status To this day, the Vacant Building Program, Child Care Financing Program, Neighborhood Parking Program and other Citywide Programs, are geographically limited by Statute to blighted areas. In struggling to overcome these limitations and to enable PED to target resources. to any geographic location where a legitimate redevelopment need exists, special legislation has been drafted to extend the economic development powers available to the City and the HRA on a broader basis. Enactment of special legislation in this form would have a significant impact, and would put the City and the HRA in the position of having all of the economic development powers of an HRA and an economic development authority (EDA) and certain additional powers. Specifically, this special legislation would allow Saint Paul to: * make working capital loans * loan funds to businesses citywide * engage in broader economic development activities as well as redevelopment activities * apply for foreign trade zone (FTZ) powers Current statutes provide legislative mechanisms for revitalization of run down areas of the City inpartnership with private enterprise to generate employment and municipal tax space. The new law would enhance Saint Paul's authority to generate employment and tax base by financing specific revenue generating enterprises in random locations. In other words, enactment of special legislation in this form would enable Saint Paul to focus development resources in strategic areas on a case- by-case basis as need is identified. This will be especially valuable for financing day care providers who may not reside in a redevelopment area, or remedying vacant buildings which may not be in a redevelopment area. _ �gi��a � STATE AUTHORIZATION FOR ECONOMIC DEVELOPMENT ACTIVITIES BRIEFING PAPER--continued While this special legislation will provide a great deal of flexibility to the City to pursue economic development, it does not conflict in any way with the basic restrictions of tax increment law. The City would also continue to be restricted from making working capital loans from the proceeds of bonds or other obligations where the authorizing statute allows only capital costs. The statutes which authorize industrial development bonds and housing revenue bonds have such limitations on them. However, the City's general revenues and its HRA revenues would be made more flexible. Recommendation Last session legislation was folded into the omnibus housing bills in both bodies that would have accomplished this. However, the conference committee report passed the Senate, but did not make the bill deadline in the House. Fortunately, this legislation is alive for the 1992 legislative session. The City of Saint Paul supports legislation to provide the City of Saint Paul and the Housing and Redevelopment Authority of the City of Saint Paul with expanded authority to undertake redevelopment and economic development activities and implement a citywide economic development program. �-(f�/-d/7� � T A B L E O F C O N T E N T S Initiate PAGE CSSP {Apprvd by Committee, 9/13/91} . . . . . . . . . . . . 3 Property Tax Relief: Local Government Aid {Apprvd by Committee, 10/18/91} . . 5 Constitutional Dedication of Sales Tax {Apprvd by Committee, 10/18/91} . . 7 Fiscal Disparities {Apprvd by Committee, 10/18/91} . . . . . 8 Polluted Lands {Approved by Council, 9/19/91} . . . . . . . 10 MELSA Funding {Apprvd by Committee, 10/18/91} . . . . . . . 13 Housing Issues {Apprvd by Committee, 11/22/91} . . . . . . . 17 HRA Expansion of Powers (Apprvd by Committee, 10/18/91} . . 24 Substantial Support Metropolitan Parks/Como Park Dept Service {Apprvd by Committee, 10/18/91} . . 27 URAP {Apprvd by Committee, 10/18/91} . . . . . . . . . . . . 32 � Public Safety Issues {Apprvd by Committee, 11/22/91} . . . . 34 � Maternal Child Health tApprvd by Committee, 10/18/91} . . . 39 Parking Tag Income {Apprvd by Committee, 10/18/91} . . . . . 41 Housing Court {Apprvd by Committee, 10/18/91} . . . . . . . 43 Photo Cop {No recommendation, lack of quorum, 11/8/91} . . . 45 Metropolitan Transportation Trust Fund {No recommendation, lack of quorum, 11/8/91} , 47 Immunization Transferability/Medical Records {Apprvd by Committee, 10/18/91} . . 49 Metropolitan State University {No recommendation, lack of quorum, 11/8/91} . 51 Presidential Primary Funding {No recommendation, lack of quorum, 11/8/91) . 53 Cultural Tourism/Historical Preservation District {No recommendation, lack of quorum, 11/8/91} . 55 Monitor , Health Care Access {Apprvd by Committee, 10/18/91} . . . . . 58 Ayd Mill Road {Apprvd by Committee, 10/18/91} . . . . . . . 60 Service Charge Definition Change {Apprvd by Committee, 10/18/91) . . 62 �