Sponsor: Community & Economic Development
Title
title
Ramsey County Economic Development Authority Implementation
end
Recommendation
recommendation
1. Create the Ramsey County Economic Development Authority.
2. Direct the Chief Clerk to execute the certificate and file a copy with the Minnesota Secretary of State.
end
Background and Rationale
body
In furthering the implementation of the goals, strategies and recommended actions identified in the 2019 Economic Competitiveness & Inclusion (ECI) Plan, Ramsey County sought flexibility in the use of Housing and Redevelopment Authority (HRA) levy funding to support small business and entrepreneurship programming. Ramsey County sought a statutory change through the Minnesota Legislature during the 2024 and 2025 Legislative sessions. Ramsey County was successful in obtaining the legislative approval in 2025.
The legislation was comprised of two parts: (1) the creation of the Ramsey County Economic Development Authority (EDA); (2) the expansion of the eligibility of uses for Housing and Redevelopment Authority levy funding to allow for programming that supports small businesses and entrepreneurs.
The legislation is explicit in that the Ramsey County EDA does not have tax levy authority; this is intentional as the EDA will only receive and spend funding from the existing HRA levy and requires cities within Ramsey County HRA’s area of operation to provide a resolution of support for this expanded use of HRA funding. Cities who choose not to opt-in to this expanded use of eligibility will continue to retain current programmatic uses of HRA funding, e.g. investments in affordable housing infrastructure, Emerging and Diverse Developers, First Home downpayment assistance, Critical Corridors, Site Assessment Grants, etc.
This board action is the first of several steps to formally establish and implement the EDA. The first step required under Minnesota Statute 645.021 (Special Laws) is the Ramsey County Board, by a majority vote, approve the creation of the EDA prior to the beginning of the next legislative session. The Chief Clerk must file with the Secretary of State a Certificate “stating the essential facts necessary to valid Board Approval which must include a copy of the resolution of approval.” This step is necessary so that the law is not deemed “disapproved” by the State due to missing the Statute’s mandatory time limit for Board approval. Additional steps that must be taken are the appointment of sitting commissioners, revising the area of EDA/HRA operation, and revisions to the Administrative Code to reflect a new entity. These steps are necessary, however, may be undertaken after Board approval and filing of the Certificate with the Secretary of State.
In 2025, the state legislature passed a law to allow this establishment, specific to Ramsey County. The Ramsey County EDA will not have tax levy authority; this is intentional as the EDA will only receive and spend funding from the existing HRA levy. This allows additional flexibility of funding from the HRA levy, which is limited by statute to spending on affordable housing and redevelopment purposes only. This board action is the first of multiple steps to establish and implement the EDA.
end
County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
As it was stated in the ECI Plan, the secret to Ramsey County’s growth is the thing that makes its economy unique: a place as rich in cultural vitality as it is rich in economic opportunity. Racial equity is a regional competitiveness imperative for the county.
The ECI Plan outlined several strategies and recommended actions that make Ramsey County a more economically competitive community. While Ramsey County has actively pursued opportunities to advance the goals established in the ECI Plan, the limitations of funding have prevented the county from fully acting on its commitment to the economic inclusion of all residents with specific attention previously underserved communities. Implementing EDA powers will lead to increased investment and support of businesses, retention and growth of small businesses, pathways to entrepreneurship for Black, Latinx, Asian, and Indigenous business owners, and will attract and grow high-wage industries. Black, Latinx, Asian, and Indigenous owned businesses are growing: Black, Latinx, Asian, and Indigenous owned businesses grew at 3.5 times the rate of all Minnesota companies in 2014-2015. However, growth in Ramsey County lags other geographies in the GreaterMSP region. While issues that contribute to the county’s lagging rates are numerous and multifaceted, a widening undercapitalization in of minority business enterprises is stifling overall economic growth, causing the county to miss out on the economic contribution of approximately 500 Black, Latinx, Asian, and Indigenous business enterprises. The ECI Plan further noted that adding 500 businesses owned Black, Latinx, Asian, and Indigenous people has the ability to create 6,690 new jobs in Ramsey County and close wage disparities across racial lines that are also contributing to the softening of regional competitiveness and creating unnecessary housing burdens for individuals and families.
Community Participation Level and Impact
This action is informed by the 2019 ECI Plan, which was developed with robust input from residents, community members, and stakeholders over an 18-month period. This action serves to inform residents of the county’s progress to activating the EDA powers. Once established, cities will be required to “opt-in” to the EDA allowing further local participation.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
This action has no fiscal impact. By statute, the Ramsey County EDA will have no taxing authority.
Expansion to include EDA powers, as described by state statute, will allow the county to reelect a portion of HRA levy funding for purposes of small business support and enhanced business programming. Tentative plans are to allocate $1.5 - $2 million yearly from the existing Housing and Redevelopment Authority levy towards business programming. The majority of HRA Levy funding will remain focused on affordable housing and redevelopment purposes.
The adoption of EDA powers will not affect taxation because the authorizing legislation approved by the state legislature in 2025 omits the typical EDA taxation authority. By design, this retains the current HRA tax levy ability and expands only the possible spending without adding taxation ability. The result is a net zero change on taxing and spending.
Last Previous Action
None.
Attachments
1. Minnesota Secretary of State Certificate of Approval of Special Law by Governing Body