Isanti City councilors debate shrinking council presence on EDA to boost outside oversight

Council discussion over the composition of the Economic Development Authority (EDA) centered on whether the city council should limit its membership on the EDA and increase the number of non-council appointees.

Unidentified Speaker 4 proposed that, beginning next year, the city "consider choosing 3 people from council to be on that and then having 4 people that aren't on council," arguing the current arrangement concentrates power and previously allowed a hotel project to be "pushed through" with little independent oversight. Several council members said they do not want a repeat of that outcome.

Staff cautioned that the EDA is governed by state statute and the city ordinance, and that changing the boardstructure would require an ordinance amendment. The cityzoning/administrative staff member (Unidentified Speaker 5) told the council, "We do have to follow state statute. It's in our city ordinance, so we'd have to have an ordinance amendment." Staff also described how terms are staggered by statute and noted that, under the language they cited, commissioners serve staggered initial terms and subsequent six-year terms.

City members raised practical and legal questions. Some argued keeping more councilmembers on the EDA ensures elected accountability for financial decisions; others said adding non-council members would bring outside perspective and create checks and balances. Unidentified Speaker 6 suggested raising compensation and shortening terms to attract qualified volunteers; staff said term length is dictated by statute.

Unidentified Speaker 8 described a neighboring example in which a proactive EDA issued loans and attracted people who wanted to serve, noting that budgeting and development agreements remain council-controlled in many scenarios. The staff explanation included: "The EDA board will put together a subsidy, and you would go through with that agreement ... but the development agreement that the city enters with goes through the council."

Council members asked staff to provide the specific statute cited and to return with precise language and options. Unidentified Speaker 4 and others emphasized discomfort with reports of six-year terms for EDA commissioners and requested staff verification before any structural change.

What happens next: Staff will locate and circulate the cited state statute and any required ordinance language so council members can consider a measured proposal. No ordinance amendment or formal vote on board composition occurred at this meeting.