Chuck Lutz, MCDA Interim Executive Director, asked that I post the following
answers to the questions posed by Dave Harstad earlier today:


1. What prompted the reform that lead to the termination of the HRA and the
creation of the MCDA?

Don Fraser formed the Mayor's Task Force on Economic Development Structure
in February of 1980 with this charge:

"Economic development results in the city, particularly in the past few
years, have been impressive. However, the economic development functions or
support systems of Minneapolis City government are uncoordinated and often
duplicative. The fragmented city structure does not pose as serious a
problem for the sophisticated and/or large developer or business person as
it does for the small or less sophisticated.

"We have many different agencies or departments with some responsibility for
economic development, housing or development activities. These include the
Minneapolis Housing and Redevelopment Authority, the Minneapolis Industrial
Development Commission, the City Coordinator's Office and the Minneapolis
Planning Department.

"The City of Minneapolis recognizes that the fragmentation of economic
development causes a variety of problems including: unnecessary competition
between agencies for the same development; confusion in the business
community as to where to go in the city for development and development
assistance; duplication of staff and resources; difficulty in implementing
small business and minority assistance programs; and the problems caused by
diffused authority scattered throughout many statutes and the Minneapolis
City Charter."

As a result of the Task Force's report, in July of 1981 the MCDA was formed
as an amalgam of the Minneapolis Housing and Redevelopment Authority (MHRA),
the Minneapolis Industrial Development Commission (MIDC), a portion of the
City Coordinator's office, the Port Authority and Minneapolis Public Housing
Authority (MPHA). A few years later, recognizing differences of mission, the
MPHA was reestablished as a separate entity.

In 1986, the Minneapolis City Council designated itself the MCDA Board of
Commissioners replacing the Board of appointed citizens.  


2. Would the proposed Community Planning and Economic Development Department
be legally and organizationally similar to the old HRA?

It's difficult to say because the final structure of the proposed CPED
department is not yet known. However, the McKinsey & Co. recommendation for
the CPED is broader than that of the MHRA. For instance, the proposal
includes the current departments of Inspections and Health and Family
Support which were never part of the old MHRA.


3. The [McKinsey] proposal looks a lot like St. Paul's approach to
development -- St. Paul has HRA which is staffed by the Department of
Planning and Economic Development. Neighborhood input is through District
Planning Councils which play an important role in development, but don't
have the clout that Minneapolis NRP groups have. Does this seem accurate to
people who know both systems? 

St. Paul actually has two development entities: (1) the Department of
Planning and Economic Development (PED), which carries out planning as well
as commercial and housing development; and (2) the Port Authority, which
carries out industrial development. Perhaps there are others on the list who
are more familiar with the systems in both cities.




Chuck Lutz
Interim Executive Director
Minneapolis Community Development Agency
105 5th Avenue South, Suite 200
Minneapolis, MN 55401
612-673-5196
612-673-5293 Fax
[EMAIL PROTECTED]



Dave Harstad of Whittier wrote:

I'd need a little perspective on the City's effort to
reform the MCDA.  For many years, Minneapolis had a
Housing and Redevelopment Authority.  What prompted
the reform that lead to the termination of the HRA and
the creation of the MCDA?  Would the proposed
Community Planning and Economic Development Department
be legally and organizationally similar to the old
HRA?  

I haven't looked at all the nuances of the McKenzie
report, but my first take is that the proposal looks a
lot like St. Paul's approach to development (St. Paul
has HRA which is staffed by the Department of Planning
and Economic Development.  Neighborhood input is
through District Planning Councils which play an
important role in development, but don't have the
clout that Minneapolis NRP groups have).  Does this
seem accurate to people who know both systems?

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