HomeMy WebLinkAbout04/26/2022 03. Public Development Authority 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 3.
For Meeting of:April 26, 2022
ITEM TITLE: Public Development Authority
SUBMITTED BY: Ryan Bleek, Senior Assistant City Attorney
SUMMARY EXPLANATION:
Several communities in Washington have successfully used Public Development Authorities in
Economic Development projects. A list of those projects can be found at the MRSC Listing of
PDA's in the State of Washington which has a description of how these cities are utilizing these
entities in economic development projects. As we look at continued opportunities in the
downtown, a PDA can be an effective economic development tool for the City. Following the
presentation, if the Council agrees, we will be able to utilize this economic development tool in
economic development discussions, TI F financing, and future planning. At the time a project is
developed that would utilize this tool, Council would have to create the PDA at that time.
ITEM BUDGETED: NA
STRATEGIC PRIORITY:
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
Provide direction to the administration.
ATTACHMENTS:
Description Upload Date Type
D Public Development Authorities 4/18/2022 Presentation
Public Development
Authorities
What is a Public Development
Authority (" PDA") ?
• Public corporation authorized to
"perform any lawful public purpose or
public function." RCW 35 .21 . 730 .
• Quasi-municipal corporation.
What is public purpose or
function ?
• Purpose or function can be very specific
or more broad. For example :
— Affordable housing projects
— Economic development
A PDA is a quasi municipal
corporation, meaning it is
subject to :
• Audits by the State Auditor
• OPMA and PRA
• Code of Ethics for Municipal Officers
• Whistleblower laws
What authority does a PDA have ?
• Own and sell real and personal property;
• Contract with individuals, corporations, and
government entities;
• Sue and be sued;
• Loan and borrow funds and issue bonds and other
debt;
• Transfer any funds, real or personal property, or
services;
• Do anything a natural person may do; and
• Perform all manner and type of community services.
What authority does a PDA
NOT have ?
A PDA may not:
• Levy taxes or special assessments
• Exercise eminent domain
What are the main advantages
of a PDA ?
1 . Limited liability : A PDA's liability is
limited to the assets of the PDA. . .
unless a city explicitly agrees
otherwise by contract; and
What are the main advantages
of a PDA ? (continued)
2 . Greater focus and expertise specific
to the purpose of the PDA.
Examples from other cities :
1 . Pike Place Market Preservation &
Development Authority
2 . Bellevue Convention Center Authority
3 . Odessa Public Development Authority
(industrial park)
How are PDAs formed ?
• A PDA is created by ordinance or
resolution approving the PDA's charter.
What 's in a PDA charter?
• Charter outlines PDA's purpose,
governance structure, bylaws, and the
term of its existence and dissolution.
• City has wide latitude in determining
board composition, which is often based
on expertise particular to the project.
What are a city ' s ongoing
responsibilities for a PDA?
• A city must "provide for [the PDA's]
organization and operations and shall
control and oversee its operation and funds
in order to correct any deficiency and to
assure that the purposes of each program
undertaken are reasonably accomplished."
RCW 35 .21 .745 .
How are PDAs financed ?
• Grants
• Transfers of money or property of entity
that creates the PDA
• Debt, typically by issuing bonds
• Operating revenues