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Council and commissioners debate giving EDA housing powers as a way to address local housing shortage
Summary
Consultants suggested exploring whether the EDA should be given HRA powers to support housing assessment and potential projects; council members raised concerns about appointed EDA voting authority, taxpayer tolerance for multifamily housing, and the need for robust market data before incentives are offered.
Consultants proposed that New Prague explore consolidating the Economic Development Authority and the Housing and Redevelopment Authority (HRA) or otherwise give the EDA housing‑related responsibilities so the city could more readily evaluate housing needs and tools.
The consultant framed the idea as an exploratory option: “Under state statute, you can give EDA’s HRA powers,” the consultant said, adding that the intent would be to assess housing stock and consider tools such as infill, annexation options, or capitalization strategies rather than immediately adopting new programs.
Several council or commission participants expressed caution. One participant said consolidation raised accountability concerns because EDA members are appointed and might have a different agenda than elected council members: “The EDA has their agenda, which goes against maybe the council or the ones that are elected. They’re appointed, so there there's a conflict there a little bit.”
Staff and the consultant responded that statutory limits preserve city council authority for key public‑assistance decisions: approvals for tax abatement and tax increment financing still require city council action, the consultant said, noting that the consolidation idea could be structured so the council retains final decision‑making on incentives.
Participants also asked for more market evidence before authorizing housing incentives. Staff recommended pairing wage data from local employers, county vacancy metrics and commercial data sources such as CoStar to determine what housing types and price points a local market could support. A separate discussion noted a new apartment building with leasing anticipated in October as an early test of demand.
Other concerns included community tolerance for multi‑unit developments and the economics of development under current mortgage rates—participants warned that vacancy rates in nearby cities and high financing costs can make large apartment projects risky without targeted demand analysis.
Next steps from the meeting: consultants will refine goals and strategies and staff will compile market and vacancy reports to help the EDA and council evaluate whether consolidation, incentives or zoning changes are warranted.
The meeting adjourned after the discussion and no formal action was taken to change EDA or HRA authority.
