Northfield EDA Still in State of Flux; Council Discussion Continues Feb. 8

After Tuesday night’s Northfield City Council meeting, the Economic Development Authority still exists, but is not functional, as discussion of its future continues.

In order for the board to be functional, it must have all seven of its members. The council has yet to appoint three members to the EDA this year, including two council members. Councilors must be appointed annually and former EDA member Victor Summa’s term expired Dec. 31, 2010.

On Tuesday, Mayor Mary Rossing proposed she and Councilor Erica Zweifel be appointed to the EDA in the interim while long-term plans of the EDA are fleshed out, but no councilor made the motion to adopt the proposal, killing it.

At its Feb. 8 meeting, the council will spend the majority of its time revisiting its definition of what economic development is, what Northfield wants to accomplish with economic development and what the Economic Development Authority’s role is in that discussion. The council, along with members of the existing EDA, will meet Feb. 22 for further discussion.

At Tuesday’s meeting, councilors vigorously debated how to proceed and what questions need to be asked about the aforementioned topics. Most notably, Rossing and Councilor Betsey Buckheit agreed their views on economic development greatly differ.

“We need to be very honest and direct on those concerns,” Rossing said of the EDA.

Buckheit said she’s pleased to see time scheduled to discuss economic development and the EDA, saying she’s frustrated that the conversation has been deferred many times.

“We have to establish, quite soon, what our shared vision is,” Buckheit said.

At last week’s meeting, Zweifel proposed a motion to temporarily dissolve the EDA, giving councilors, who have oversight over the board, decision-making power while it sorts out its role and mission.

Robert Scott, sitting in for City Attorney Chris Hood at Tuesday’s meeting, presented two potential options for the EDA should the council choose to overhaul it.

The council could repeal the “Enabling Resolution,” which established the seven-member EDA board of commissioners, two of which must be members of the council, according to state statute.

Because the EDA derives its authority from the Enabling Resolution, Scott says, repealing it would in effect terminate the board.

However, because the EDA has existing bond debt of about $2.5 million, according to Northfield Finance Director Kathleen McBride, the EDA cannot be dissolved.

“The EDA must exist for as long as the bonds are outstanding,” she said she was told by Ehlers’ associations, the issuers of the bonds.

The council could also amend the Enabling Resolution. Amendments to limit the EDA’s power can be executed “so long as the modification does not impair the security of any bonds issued or contracts executed by the EDA before the limit is imposed,” according to a written report from Scott and Hood.

However, before either option is considered, the council must conduct a public hearing.