Missouri Statute | Act | Code |Cities, Towns And Villages| US Code - US Statute

Sections 99.010 to 99.230 may be referred to as "The Housing
Authorities Law". (RSMo 1939 § 7853)

CROSS REFERENCE: Urban redevelopment corporations law, RSMo 353.010 to
353.180

The following terms, wherever used or referred to in sections
99.010 to 99.230, shall have the following respective meanings unless a
different meaning clearly appears from the context:

(1) "Area of operation", in the case of a housing authority of a city,
shall include such city; in the case of a housing authority of a county,
shall include all of the county except that portion which lies within the
territorial boundaries of any city as herein defined;

(2) "Authority" or "housing authority" shall mean any of the municipal
corporations created by section 99.040;

(3) "Blighted" shall mean any area where dwellings predominate which, by
reason of dilapidation, overcrowding, lack of ventilation, light or
sanitary facilities or any combination of these factors are detrimental
to safety, health and morals;

(4) "Bonds" shall mean any bonds, notes, interim certificates,
debentures, or other obligations issued by the authority pursuant to this
chapter;

(5) "City" shall mean any city, town or village in the state;

(6) "The city" shall mean the particular city for which a particular
housing authority is created;

(7) "Clerk" shall mean the clerk of the city or the clerk of the county
commission, as the case may be, or the officer charged with the duties
customarily imposed on such clerk;

(8) "County" shall mean any county in the state;

(9) "The county" shall mean the particular county for which a particular
housing authority is created;

(10) "Federal government" shall include the United States of America, the
United States Department of Housing and Urban Development or any other
agency or instrumentality, corporate or otherwise, of the United States
of America;

(11) "Governing body" shall mean, in the case of a city, the city
council, common council, board of aldermen or other legislative body of
the city, and in the case of a county, the county commission or other
legislative body of the county;

(12) "Housing project" shall mean any work or undertaking, whether in a
blighted or other area:

(a) To demolish, clear or remove buildings. Such work or undertaking may
include the adaptation of such area to public purposes, including parks
or other recreation or community purposes; or

(b) To provide decent, safe and sanitary urban or rural dwellings,
apartments or other living accommodations for persons of very low and
lower income. Such work or undertaking may include buildings, land,
equipment, facilities and other real or personal property for necessary,
convenient or desirable appurtenances, streets, sewers, water service,
site preparation, gardening, administrative, community, health, welfare
or other purposes. Such work or undertaking may also include housing, for
persons of moderate income, offices, stores, solar energy access, parks,
and recreational and educational facilities, provided that such
activities be undertaken only in conjunction with the provision of
housing for persons of very low and lower income, and provided further
that any profit of the authority shall be distributed as provided in
subsection 3 of section 99.080; or

(c) To accomplish a combination of the foregoing. The term "housing
project" also may be applied to the planning of the buildings and
improvements, the acquisition of property; the demolition of existing
structures, the construction, reconstruction, alteration and repair of
the improvements and all other work in connection therewith;

(d) In the planning and carrying out of any housing project owned and
operated by a housing authority, a housing authority shall establish
procedures for allocating any training and employment opportunities which
may arise from such activity to qualified persons of very low and lower
income who have been unemployed for one year or more and reside within
the area of operation of the housing authority;

(13) "Mayor" shall mean the elected mayor of the city or the elected
officer thereof charged with duties customarily imposed on the mayor or
executive head of the city;

(14) "Obligee of the authority" or "obligee" shall include any
bondholder, trustee or trustees for any bondholders, or lessor demising
to the authority property used in connection with a housing project, or
any assignee or assignees of such lessor's interest or any part thereof,
and the federal government when it is a party to any contract with the
authority;

(15) "Persons of very low income" means those persons or families whose
annual income does not exceed fifty percent of the median income for the
area. "Persons of lower income" means those persons or families whose
annual income is greater than fifty but does not exceed eighty percent of
the median income for the area. "Persons of moderate income" means those
persons or families whose annual income is greater than eighty but does
not exceed one hundred and fifty percent of the median income for the
area. For purposes of this subdivision, median income for the area shall
be determined in accordance with section 1437a, Title 42, United States
Code, including any amendments thereto. Any and all references to
"persons of low income" in this chapter shall mean persons of very low,
lower or moderate income as defined herein;

(16) "Profit" shall mean the difference between gross revenues and
necessary and ordinary business expenses, including debt service, if any;

(17) "Real property" shall include all lands, including improvements and
fixtures thereon, and property of any nature appurtenant thereto, or used
in connection therewith, and every estate, interest and right, legal or
equitable, therein, including terms for years and liens by way of
judgment, mortgage or otherwise and the indebtedness secured by such
liens. (RSMo 1939 § 7855, A.L. 1941 p. 455, A.L. 1951 p. 331, A.L. 1963
p. 156, A.L. 1986 S.B. 767, A.L. 1988 H.B. 1105, A.L. 1995 S.B. 16)

It is hereby declared

(1) That there exist in the state insanitary or unsafe dwelling
accommodations and that persons of low income are forced to reside in
such insanitary or unsafe accommodations; that within the state there is
a shortage of safe or sanitary dwelling accommodations available at rents
which persons of low income can afford and that such persons are forced
to occupy overcrowded and congested dwelling accommodations; that the
aforesaid conditions cause an increase in and spread of disease and crime
and constitute a menace to the health, safety, morals and welfare of the
residents of the state and impair economic values; that these conditions
necessitate excessive and disproportionate expenditures of public funds
for crime prevention and punishment, public health and safety, fire and
accident protection, and other public services and facilities;

(2) That these areas in the state cannot be cleared, nor can the shortage
of safe and sanitary dwellings for persons of low income be relieved,
through the operation of private enterprise, and that the construction of
housing projects for persons of low income (as herein defined) would
therefore not be competitive with private enterprise;

(3) That the clearance, replanning and reconstruction of the areas in
which insanitary or unsafe housing conditions exist and the providing of
safe and sanitary dwelling accommodations for persons of low income are
public uses and purposes for which public money may be spent and private
property acquired and are governmental functions of state concern;

(4) That it is in the public interest that work on projects for such
purposes be commenced as soon as possible in order to relieve
unemployment which now constitutes an emergency; and the necessity in the
public interest for the provisions herein enacted, is hereby declared as
a matter of legislative determination. (RSMo 1939 § 7854)

1. In each city (as herein defined) and in each county of the
state there is hereby created a municipal corporation to be known as the
"Housing Authority" of the city or county; provided, however, that such
authority shall not transact any business or exercise its powers
hereunder until or unless the governing body of the city or the county,
as the case may be, by resolution or other declaration shall determine at
any time hereafter that there is need for an authority to function in
such city or county. The determination as to whether or not there is such
need for an authority to function may be made by the governing body upon
the filing of a petition signed by fifty taxpayers of the city or county,
as the case may be, asserting that there is need for an authority to
function in such city or county and requesting that the governing body so
declare.

2. The governing body shall determine that there is need for a housing
authority in the city or county, as the case may be, if it shall find
that insanitary or unsafe inhabited dwelling accommodations exist in such
city or county or that there is a shortage of safe or sanitary dwelling
accommodations in such city or county available to persons of low income
at rentals they can afford. In determining whether dwelling
accommodations are unsafe or insanitary said governing body may take into
consideration the degree of overcrowding, the percentage of land
coverage, the light, air, space and access available to the inhabitants
of such dwelling accommodations, the size and arrangement of the rooms,
the sanitary facilities, and the extent to which conditions exist in such
buildings which endanger life or property by fire or other causes.

3. In any suit, action or proceeding involving the validity or
enforcement of or relating to any contract of the authority, the
authority shall be conclusively deemed to have become established and
authorized to transact business and exercise its powers hereunder upon
proof of the adoption of a resolution or other declaration by the
governing body declaring the need for the authority. Such resolutions or
other declaration shall be deemed sufficient if it declares that there is
such need for an authority and finds in substantially the foregoing terms
(no further detail being necessary) that either or both of the above
enumerated conditions exist in the city or county, as the case may be. A
copy of such resolution or other declaration duly certified by the clerk
shall be admissible in evidence in any suit, action or proceeding. (RSMo
1939 § 7856)

(1989) Public housing authorities are statutory municipal corporations
and exercise only governmental functions which are subject to
governmental immunity. Privately owned rental property enrolled in rental
assistance program is not "public property" and was not within statutory
exception to government immunity. (Mo. App.) Tyler v. Housing Auth. of
Kansas City, 781 S.W.2d 110.

When the governing body of a city adopts a resolution or other
declaration as aforesaid, it shall promptly notify the mayor of such
adoption. Upon receiving such notice, the mayor shall appoint five
persons who shall be taxpayers who have resided in said city for one year
prior to such appointment as commissioners of the authority created for
said city. When the governing body of a county adopts a resolution or
other declaration as aforesaid, said body shall appoint five persons as
commissioners of the authority created for said county. Three of the
commissioners who are first appointed shall be designated to serve for
terms of one, two, and three years, respectively, from the date of their
appointment, and two shall be designated to serve for terms of four years
from the date of their appointment. Thereafter commissioners shall be
appointed as aforesaid for a term of office of four years except that all
vacancies shall be filled for the unexpired term. No commissioner of an
authority may be an officer or employee of the city or county for which
the authority is created. A commissioner shall hold office until his
successor has been appointed and has qualified, unless sooner removed
according to sections 99.010 to 99.230. A certificate of the appointment
or reappointment of any commissioner shall be filed with the clerk and
such certificate shall be conclusive evidence of the due and proper
appointment of such commissioner. A commissioner shall receive no
compensation for his services for the authority, in any capacity, but he
shall be entitled to the necessary expenses, including traveling
expenses, incurred in the discharge of his duties. The powers of each
authority shall be vested in the commissioners thereof in office from
time to time. One more than one-half of all commissioners shall
constitute a quorum of the authority for the purpose of conducting its
business and exercising its powers and for all other purposes. Action may
be taken by the authority upon a vote of a majority of a quorum, unless
in any case the bylaws of the authority shall require a larger number.
The mayor (or in the case of an authority for a county, the governing
body of the county) shall designate which of the commissioners shall be
the first chairman and he shall serve in the capacity of chairman until
the expiration of his term of office as commissioner. When the office of
the chairman of the authority thereafter becomes vacant, the authority
shall select a chairman from among its commissioners. An authority shall
select from among its commissioners a vice chairman, and it may employ a
secretary (who shall be executive director), technical experts and such
other officers, agents and employees, permanent and temporary, as it may
require, and shall determine their qualifications, duties and
compensation. For such legal services as it may require, an authority may
call upon the chief law officer of the city or the county or may employ
its own counsel and legal staff. An authority may delegate to one or more
of its agents or employees such powers or duties as it may deem proper.
(RSMo 1939 § 7857, A.L. 1985 H.B. 425, A.L. 1988 H.B. 1105, A.L. 2002
S.B. 1039)

1. Notwithstanding any conflicting provisions of section 99.050,
in cities not within a county the following provisions shall govern the
composition of the housing authority commission and the selection of the
members thereof:

(1) Appointive members of the housing authority commission shall be
appointed by the mayor subject to the approval of the governing body of
the city;

(2) Within one hundred days of the date the term of two appointed members
is to expire, and every fourth year thereafter, an election shall be
conducted by the housing authority commission, after ten days' written
notice to each tenant of the housing authority, to elect from among the
tenants in good standing of the housing authority two housing authority
commissioners in addition to the five appointed members. The election
shall be by written ballot and each tenant of the housing authority who
has attained the age of eighteen years shall be entitled to one vote. The
two persons, tenants of the housing authority, receiving the two highest
numbers of votes cast at the election shall be elected to terms of four
years and until their successors are elected and qualified. The elective
members of the commission, in addition to being tenants in good standing
of the housing authority, shall possess the other qualifications required
for the office by the provisions of sections 99.010 to 99.230, and shall
not be employed in any capacity by the authority.

2. Commissioners of the housing authority required by this section to be
tenants of the housing authority shall not be construed, because of such
tenancy, to have a direct or indirect interest in any housing authority
project, or in any property included or planned to be included in any
project, or in any proposed contract for materials or services within the
meaning of section 99.060.

3. Any commissioner required by provisions of this section to be a tenant
of the housing authority who ceases to be such shall thereby forfeit his
office. In the event a tenant commissioner forfeits his office, a special
election shall be held for the purpose of filling the vacancy. The
election shall be conducted according to the procedures specified in
subdivision (2) of subsection 1 of this section governing the conduct of
regular elections of tenant commissioners. The successor elected at a
special election shall serve only the remaining term of his predecessor.
(L. 1985 H.B. 425, A.L. 1988 H.B. 1105)

Notwithstanding any provision in section 99.050 to the contrary,
one commissioner of an authority may be an officer or employee of the
city or county for which the authority is created. (L. 1995 S.B. 16 § 1)

1. Notwithstanding any provision of section 99.050 to the
contrary regarding the number of housing commissioners, in any political
subdivision except those described in subsection 2 of this section, a
sixth housing commissioner may be appointed. Such a commissioner may be
appointed, in the same manner as other appointees pursuant to section
99.050, if the housing authority determines that such a commissioner is
needed to fulfill any federal requirement stating that at least one
person who receives direct assistance from the housing authority shall
serve as a commissioner. Any commissioner appointed to serve as a
commissioner for the purposes of meeting the requirement of having a
person who is directly assisted by the housing authority shall forfeit
such appointment if that person:

(1) Ceases to meet the requirements of housing commissioners pursuant to
section 99.050; or

(2) Ceases receiving direct assistance from the housing authority for
which he or she is a commissioner.

2. The provisions of this section shall not apply to those housing
authorities:

(1) Located within a city not within a county;

(2) Located within a city with a population of over four hundred thousand
inhabitants;

(3) Which are exempted, pursuant to federal law or regulation, from any
federal requirement stating that at least one person who receives direct
assistance from the housing authority shall serve as a commissioner. (L.
2000 H.B. 1238 merged with S.B. 557)

The board of commissioners of each housing authority shall
conduct an annual audit of all operations and activities undertaken by
said housing authority pursuant to this chapter, including, but not
limited to, reports of revenues and expenditures of said housing
authority and such related entities as described in subsection 3 of
section 99.080, divided and broken out by each project or undertaking as
defined in paragraph (b) of subdivision (12)* of section 99.020. The
board of commissioners shall issue a detailed report of said audit and
shall make said report available to the public upon its completion. In
connection therewith and after the final issuance of such audit, each
board of commissioners shall conduct not less than one public hearing
and, with respect to authorities which own and operate one thousand or
more rental units prior to the final issuance of such audit as part of
audit procedure not less than two hearings and after the final issuance
of such audit not less than one hearing, at locations reasonably
accessible to tenants of housing project, for the purposes of obtaining
tenant and public responses regarding the activities of the authority
during the preceding year and suggestions for future activities of the
authority. (L. 1986 S.B. 767, A.L. 1988 H.B. 1105)

*"Subsection 11" appears in original rolls.

No commissioner or employee of an authority shall acquire any
interest direct or indirect in any housing project or in any property
included or planned to be included in any project, nor shall he have any
interest direct or indirect in any contract or proposed contract for
materials or services to be furnished or used in connection with any
housing project. If any commissioner or employee of an authority owns or
controls an interest direct or indirect in any property included or
planned to be included in any housing project, he immediately shall
disclose the same in writing to the authority and such disclosure shall
be entered upon the minutes of the authority. Failure so to disclose such
interest shall constitute misconduct in office. Upon such disclosure such
commissioner or employee shall not participate in any action by the
authority affecting such property. (RSMo 1939 § 7858)

For inefficiency or neglect of duty or misconduct in office, a
commissioner of an authority may be removed by the mayor (or in the case
of an authority for a county, by the governing body of said county), but
a commissioner shall be removed only after he shall have been given a
copy of the charges at least ten days prior to the hearing thereon and
had an opportunity to be heard in person or by counsel. In the event of
the removal of any commissioner, a record of the proceedings, together
with the charges and findings thereon, shall be filed in the office of
the clerk. (RSMo 1939 § 7859)

1. An authority shall constitute a municipal corporation,
exercising public and essential governmental functions, and having all
the powers necessary or convenient to carry out and effectuate the
purposes and provisions of sections 99.010 to 99.230, including the
following powers in addition to others herein granted:

(1) To sue and be sued; to have a seal and to alter the same at pleasure;
to have perpetual succession; to make and execute contracts and other
instruments necessary or convenient to the exercise of the powers of the
authority; and to make and from time to time amend and repeal bylaws,
rules and regulations, not inconsistent with sections 99.010 to 99.230,
to carry into effect the powers and purposes of the authority;

(2) Within its area of operation: To prepare, carry out, acquire, lease
and operate housing projects; to provide for the construction,
reconstruction, improvement, alteration or repair of any housing project
or any part thereof; except that, when the authority shall lie within an
unincorporated area of a first class county having a charter form of
government and that unincorporated area is bordered by a city or cities
of the third class which may provide services to that authority, the city
or cities shall give its approval before said construction,
reconstruction, improvement, alteration or repair takes place;

(3) To arrange or contract for the furnishing by any person or agency,
public or private, of services, privileges, works, or facilities for, or
in connection with, a housing project or the occupants thereof; and
(notwithstanding anything to the contrary contained in sections 99.010 to
99.230 or any other provision of law) to include in any contract let in
connection with a project, stipulations requiring that the contractor and
any subcontractors comply with requirements as to minimum wages and
maximum hours of labor, and comply with any conditions which the federal
government may have attached to its financial aid of the project;

(4) To lease or rent any dwellings, houses, accommodations, lands,
buildings, structures or facilities embraced in any housing project and
(subject to the limitations contained in sections 99.010 to 99.230) to
establish and revise the rents or charges therefor; to own, hold, and
improve real or personal property; to purchase, lease, obtain options
upon, acquire by gift, grant, bequest, devise, or otherwise any real or
personal property or any interest therein; to acquire by the exercise of
the power of eminent domain any real property in fee simple or other
estate; to sell, lease, exchange, transfer, assign, pledge, or dispose of
any real or personal property or any interest therein; to insure or
provide for the insurance of any real or personal property or operations
of the authority against any risks or hazards; to procure or agree to the
procurement of insurance or guarantees from the federal government of the
payment of any bonds or parts thereof issued by an authority, including
the power to pay premiums on any such insurance; to allocate federal or
state tax credits or other economic benefits or inducements allocated to
an authority;

(5) To invest any funds held in reserves or sinking funds, or any funds
not required for immediate disbursement, in property or securities in
which savings banks may legally invest funds subject to their control; to
purchase its bonds at a price not more than the principal amount thereof
and accrued interest, all bonds so purchased to be canceled;

(6) Within its area of operation: To investigate into living, dwelling
and housing conditions and into the means and methods of improving such
conditions; to determine where blighted areas exist or where there is a
shortage of decent, safe and sanitary dwelling accommodations for persons
of very low, lower and moderate income; to make studies and
recommendations relating to the problem of clearing, replanning and
reconstructing of blighted areas, and the problem of providing dwelling
accommodations for persons of very low, lower and moderate income, and to
cooperate with the city, the county, the state or any political
subdivision thereof in action taken in connection with such problems; and
to engage in research, studies and experimentation on the subject of
housing;

(7) Acting through one or more commissioners or other person or persons
designated by the authority: To conduct examinations and investigations
and to hear testimony and take proof under oath at public or private
hearings on any matter material for its information; to administer oaths,
issue subpoenas requiring the attendance of witnesses or the production
of books and papers and to issue commissions for the examination of
witnesses who are outside of the state or unable to attend before the
authority, or excused from attendance; to make available to appropriate
agencies (including those charged with the duty of abating or requiring
the correction of nuisances or like conditions, or of demolishing unsafe
or unsanitary structures within its area of operation) its findings and
recommendations with regard to any building or property where conditions
exist which are dangerous to the public health, morals, safety or welfare;

(8) To contract with private owners to manage, lease and operate any
rental, cooperative or condominium housing project within its area of
operation and to act as management agent for any such project for a
management fee;

(a) The persons and families who occupy the housing project shall be very
low, lower or moderate income persons as defined in sections 99.010 to
99.230;

(b) Any profit derived by housing authorities from such management fees
should be applied to the development, improvement or maintenance of
housing projects in the following manner: no less than fifty percent of
said profits shall be applied toward improving, developing or maintaining
housing units that are occupied by or will be occupied by persons of very
low income; the remaining profits shall be applied toward improving,
developing or maintaining housing units that are occupied by, or will be
occupied by persons of low income;

(9) To loan the proceeds of its bonds and notes to provide for the
purchase, construction, extension and improvement of any housing project;

(10) To exercise all powers or parts or combination of powers necessary,
convenient or appropriate to undertake and carry out housing projects and
all the powers herein granted.

2. No provision of law with respect to the acquisition, operation or
disposition of property by other public bodies shall be applicable to an
authority unless the law shall specifically so state.

3. An authority may exercise any and all of the powers conferred upon it
by this section, either generally or with respect to any specific
activity or activities, through or by any agent which it may designate
including any corporation or corporations formed under the laws of this
state and for such purposes, an authority may cause one or more
corporations to be formed under the laws of this state, provided,
however, that no employee of any housing authority or publicly elected
official shall receive, directly or indirectly, any compensation
therefrom other than their salary as such an employee or publicly elected
official and that all profits from such corporations and agents shall be
distributed in the following manner: not less than seventy percent of
said profits shall be applied, in such manner as the housing authority
shall determine, toward improving, developing or maintaining housing
units that are occupied by, or will be occupied by persons of very low or
lower income; not more than thirty percent of said profits shall be
applied in such manner as the housing authority shall determine; and if
such corporation or agent is involved in managing, developing or
purchasing a housing project, at least twenty percent of the units of
said project shall be reserved for very low or low income. The
distribution of project units reserved for persons of very low and lower
income by size shall be proportional to the distribution of units by size
for the entire housing project. (RSMo 1939 § 7860, A.L. 1978 H.B. 1155,
A.L. 1986 S.B. 767, A.L. 1988 H.B. 1105)

1. It is hereby declared to be the policy of this state that each
housing authority shall manage and operate housing projects owned by it
in an efficient manner so as to enable it to fix the rentals for its very
low and low-income tenants at the lowest possible rates consistent with
providing decent, safe and sanitary dwelling accommodations, and at rates
not higher than rental guidelines established by the United States
Department of Housing and Urban Development for such persons. To this end
an authority shall fix the rentals for dwellings in its projects at no
higher rates than it shall find to be necessary in order:

(1) To pay, as the same become due, the principal and interest on the
bonds of the authority;

(2) To meet the cost of, and to provide for, maintaining and operating
its projects, including the cost of any insurance and any other
administrative expenses of the authority; and

(3) To create (during not less than the six years immediately succeeding
its issuance of any bonds) a reserve sufficient to meet the largest
principal and interest payments which will be due on such bonds in any
one year and to maintain such reserve.

2. The provisions of this section shall not apply to any moderate income
tenants of the authority. (RSMo 1939 § 7861, A.L. 1978 H.B. 1155, A.L.
1986 S.B. 767)

1. In the operation or management of housing projects owned by
it, an authority shall at all times observe the following duties with
respect to rentals and tenant selection:

(1) It may rent or lease the dwelling accommodations therein only to
persons of very low income, low income or moderate income and at rentals
within the financial reach of such persons;

(2) It may rent or lease to a tenant dwelling accommodations consisting
of the number of rooms (but no greater number) which it deems necessary
to provide safe and sanitary accommodations to the proposed occupants
thereof, without overcrowding; and

(3) In the operation or management of housing projects, an authority
shall ensure that at least twenty percent of the units of each new
project built or developed by said housing authority will be occupied by
persons of very low or lower income.

2. Nothing contained in this or section 99.090 shall be construed as
limiting the power of an authority to vest in an obligee the right, in
the event of a default by the authority, to take possession of a housing
project, or cause the appointment of a receiver thereof, free from all
the restrictions imposed by this or section 99.090. (RSMo 1939 § 7862,
A.L. 1978 H.B. 1155, A.L. 1986 S.B. 767, A.L. 1988 H.B. 1105)

1. In addition to the duties imposed by section 99.100, no
housing authority in any city with a population of four hundred thousand
or more inhabitants, and whose jurisdiction covers more than one county,
shall rent or lease accommodations to any person who, within the
preceding five years, has been convicted of a crime involving
prostitution or the possession or sale of controlled substances listed in
schedule I and II of section 195.017, RSMo, or whose dwelling unit is
known to have been the site of crimes involving prostitution or the
possession or sale of controlled substances listed in schedule I and II
of section 195.017, RSMo.

2. If a family which is living in accommodations rented or leased by the
housing authority becomes ineligible for such accommodations because a
member of that family was convicted of a crime listed in subsection 1 of
this section, the remaining members of such family may reapply to the
board of commissioners of the housing authority for accommodations. (L.
1988 H.B. 1105)

1. Any two or more authorities may join or cooperate with one
another in the exercise of any or all of the powers conferred hereby for
the purpose of financing, planning, undertaking, constructing or
operating a housing project or projects, or other federally subsidized
housing programs located within the area of operation of any one or more
of said authorities. An authority may also provide technical assistance
to other authorities and charge a fee for such services, provided that
the profits from such fees shall be distributed as provided in subsection
3 of section 99.080.

2. An authority may provide technical assistance to public and private
developers of housing for persons of very low, lower or moderate income
and charge a fee for such services, provided that any profits from such
fees shall be distributed as provided in subsection 3 of section 99.080.

3. An authority may participate, with other public or private entities,
in partnerships, joint ventures, or other co-ownership arrangements as
long as the profits from such participation are distributed as provided
in subsection 3 of section 99.080. If a housing project is the subject of
the participation, at least twenty percent of the units shall be occupied
by persons of very low or lower income. The distribution of project units
reserved for persons of very low and lower income by size shall be
proportional to the distribution of units by size for the entire housing
project.

4. An authority which participates with a private entity, in a
partnership, joint venture or co-ownership arrangement in the development
or the management of a housing project for which the property has been
acquired by the power of eminent domain and results in the displacement
of persons and/or businesses, shall establish written policies and
procedures for the payment of displacement and relocation benefits to
such affected parties.

5. No authority in any city partially contained within a county of the
first class having a charter form of government with a population in
excess of four hundred thousand inhabitants shall create in whole or in
part, directly or indirectly, any additional housing units within any
area that is within two and one-half miles from the center of any other
area having a radius of one-half mile that contains more than five
hundred housing units subject to any provisions of this chapter. Excepted
from this subsection is any area that formerly contained multiple
building high rise public housing. (RSMo 1939 § 7863, A.L. 1986 S.B. 767,
A.L. 1988 H.B. 1105)

An authority shall have the right to acquire by the exercise of
the power of eminent domain any real property in fee simple or other
estate which it may deem necessary for its purposes under sections 99.010
to 99.230 after the adoption by it of a resolution declaring that the
acquisition of the real property described therein is necessary for such
purposes. An authority may exercise the power of eminent domain in the
manner provided for corporations in chapter 523, RSMo; or it may exercise
the power of eminent domain in the manner provided by any other
applicable statutory provision for the exercise of the power of eminent
domain. Property already devoted to a public use may be acquired in like
manner, provided that no real property belonging to the city, the county,
the state or any political subdivision thereof may be acquired without
its consent. (RSMo 1939 § 7864)

All housing projects of an authority shall be subject to the
planning, zoning, sanitary and building laws, ordinances and regulations
applicable to the locality in which the housing project is situated. In
the planning and location of any housing project, an authority shall take
into consideration the relationship of the project to any larger plan or
long-range program for the development of the area in which the housing
authority functions. (RSMo 1939 § 7865)

1. The provisions of this section shall apply to housing
authorities of any city with a population of more than four hundred fifty
thousand inhabitants which is located in more than one county.

2. Notwithstanding the provisions of section 99.130, any such housing
authority shall be liable for violations of the city property maintenance
code in single-family or duplex units by tenants of the housing authority
or by the housing authority. The executive director of the housing
authority, appointed pursuant to section 99.050, or, if no executive
director is appointed, the chairman of the housing authority or, if a
chairman is not designated, the senior member of the housing authority
shall be the person held responsible for such violations, shall be the
person upon whom service of process is served, and shall be subject to
any penalty provided by law.

3. The housing authority shall make payments in lieu of taxes for any
single-family or duplex unit to the school districts located wholly or
partially within the city in the same amount as if such property were
subject to taxation within such school district based on the latest
assessed valuation of such property.

4. Subject to the provisions of subsection 5 of section 99.110, when the
housing authority acquires, purchases or constructs additional single- or
multiple-family units, all such acquisitions, purchases or construction,
shall be scattered in such a manner that the additional units are divided
proportionately among all school districts located wholly or partially
within the city, in accordance with the proportion of each school
district's population within the city to the population of the city as a
whole, based upon the most current United States Bureau of the Census
data. Further, within all such school districts, except the urban school
district the greater portion of which lies within the city, no additional
unit may be acquired, purchased or constructed in any census tract, as
defined by the Bureau of the Census, within a particular school district,
except in the census tract or tracts wholly or partially located within
the city, which have the least number of units within the school
district. (L. 1990 H.B. 1510)

Effective 6-14-90

This section shall apply to housing authorities of any home rule
city with more than four hundred thousand inhabitants and located in more
than one county. The provisions of this section shall apply to such
housing authorities and the following provisions shall govern the
composition of the housing authority and the selection of the members
thereof:

(1) There shall be seven members of the housing authority commission, six
shall be appointed and one shall be elected by the tenants of the housing
authority;

(2) The appointive members of the housing authority commission shall be
nominated by a nominating committee and appointed by the mayor. The
nominating committee shall consist of five members, consisting of two
disinterested persons selected by the jurisdiction-wide resident
organization of which one must be a public housing resident and the other
a person receiving Section 8 housing assistance, the remaining three
members of the nominating committee shall be selected by the housing
authority commissioners. At least one appointive member must be a
resident in good standing receiving Section 8 housing assistance and
participating in a self-sufficiency program or successfully completed a
self-sufficiency program, and at least one appointive member must be an
owner of rental property located within the limits of the city who is a
resident of such city, but shall not own any property containing public
housing;

(3) The election of the tenant commissioner shall be conducted by the
jurisdiction-wide resident organization and overseen by an independent
third party. The election shall be by written ballot and each tenant of
the housing authority who has attained the age of eighteen years shall be
entitled to one vote. In addition to the qualifications required for the
office by the provisions of sections 99.010 to 99.230, the elected member
of the commission shall be a tenant in good standing;

(4) Commissioners of the housing authority required by this section to be
tenants of the housing authority or tenants receiving Section 8 housing
assistance shall not be employed in any capacity by the housing authority
and shall not be construed, because of such tenancy or receipt of housing
assistance, to have direct or indirect interest in any housing authority
project or in any property included or planned to be included in any
project, or in proposed contract for materials or services within the
meaning of section 99.060;

(5) Each elective commissioner shall serve a term of four years. Of the
six appointive members of the commissioners first appointed pursuant to
this section, two shall serve a term of one year, two commissioners shall
serve a term of two years, and two commissioners shall serve a term of
three years. Thereafter all commissioners shall serve a term of office of
four years except that all vacancies shall be filled for the unexpired
term;

(6) The commissioners shall select from among its members a chairperson
and a vice chairperson;

(7) Each commissioner shall receive a stipend of two hundred dollars per
month for his or her services to the housing authority in any capacity in
addition to reimbursement for expenses incurred for special travel or
conference expenses incurred in the discharge of the commissioner's
duties. The board of commissioners shall have the power to adjust the
stipend amount annually to reflect changes in the Consumer Price Index or
similar prudent and object pre-escalator method;

(8) A quorum shall consist of at least four commissioners; and

(9) All commissioners shall be residents of the jurisdiction of the
housing authority. (L. 1990 H.B. 1510, A.L. 1995 S.B. 16, A.L. 2002 S.B.
1039)

1. An authority shall have power to issue bonds from time to time
in its discretion, for any of its corporate purposes. An authority shall
also have power to issue refunding bonds for the purpose of paying or
retiring bonds previously issued by it. An authority may issue such types
of bonds as it may determine, including (without limiting the generality
of the foregoing) bonds on which the principal and interest are payable
from income and revenues of the authority and from grants or
contributions from the federal government or other source.

2. Such income and revenues securing the bonds may be:

(1) Exclusively the income and revenues of the housing project financed
with the proceeds of such bonds;

(2) Exclusively the income and revenues of certain designated housing
projects, whether or not they are financed in whole or in part with the
proceeds of such bonds; or

(3) The income and revenues of the authority generally.

3. Any such bonds may be additionally secured by a pledge of any income
or revenues of the authority, or a mortgage of any housing project,
projects or other property of the authority.

4. Neither the commissioners of an authority nor any person executing the
bonds shall be liable personally on the bonds by reason of the issuance
thereof. The bonds and other obligations of an authority (and such bonds
and obligations shall so state on their face) shall not be a debt of the
city, the county, the state or any political subdivision thereof and
neither the city or the county, nor the state or any political
subdivision thereof shall be liable thereon, nor in any event shall such
bonds or obligations be payable out of any funds or properties other than
those of said authority. The bonds shall not constitute an indebtedness
within the meaning of any constitutional, statutory or charter debt
limitation or restriction. (RSMo 1939 § 7866)

1. Bonds of an authority shall be authorized by its resolution
and may be issued in one or more series and shall bear such date or
dates, mature at such time or times, bear interest at such rate or rates,
be in such denomination or denominations, be in such form, either coupon
or registered, carry such conversion or registration privileges, have
such rank or priority, be executed in such manner, be payable in such
medium of payment, at such place or places, and be subject to such terms
of redemption (with or without premium) as such resolution, its trust
indenture or mortgage may provide.

2. The bonds shall be sold at not less than par at public sale held after
notice published once at least five days prior to such sale in a
newspaper having a general circulation in the area of operation and in a
financial newspaper published in Kansas City or in the city of St. Louis;
provided, that such bonds may be sold to the federal government at
private sale at not less than par and, in the event less than all of the
bonds authorized in connection with any project or projects are sold to
the federal government, the balance of such bonds may be sold at private
sale at not less than par at an interest cost to the authority of not to
exceed the interest cost to the authority of the portion of the bonds
sold to the federal government.

3. In case any of the commissioners or officers of the authority whose
signatures appear on any bonds or coupons shall cease to be such
commissioners or officers before the delivery of such bonds, such
signatures shall, nevertheless, be valid and sufficient for all purposes,
the same as if they had remained in office until such delivery. Any
provision of any law to the contrary notwithstanding, any bonds issued
pursuant to sections 99.010 to 99.230 shall be fully negotiable.

4. In any suit, action or proceedings involving the validity or
enforceability of any bond of an authority or the security therefor, any
such bond reciting in substance that it has been issued by the authority
to aid in financing a housing project to provide dwelling accommodations
for persons of low income shall be conclusively deemed to have been
issued for a housing project of such character and said project shall be
conclusively deemed to have been planned, located and constructed in
accordance with the purposes and provisions of sections 99.010 to 99.230.
(RSMo 1939 § 7867, A.L. 1982 H.B. 1164)

In connection with the issuance of bonds or the incurring of
obligations under leases and in order to secure the payment of such bonds
or obligations, an authority, in addition to its other powers, shall have
power

(1) To pledge all or any part of its gross or net rents, fees or revenues
to which its right then exists or may thereafter come into existence;

(2) To mortgage all or any part of its real or personal property, then
owned or thereafter acquired;

(3) To covenant against pledging all or any part of its rents, fees and
revenues, or against mortgaging all or any part of its real or personal
property, to which its right or title then exists or may thereafter come
into existence or against permitting or suffering any lien on such
revenues or property; to covenant with respect to limitations on its
right to sell, lease or otherwise dispose of any housing project or any
part thereof; and to covenant as to what other or additional debts or
obligations may be incurred by it;

(4) To covenant as to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition of
the proceeds thereof; to provide for the replacement of lost, destroyed
or mutilated bonds; to covenant against extending the time for the
payment of its bonds or interest thereon; and to redeem the bonds, and to
covenant for their redemption and to provide the terms and conditions
thereof;

(5) To covenant (subject to the limitations contained in sections 99.010
to 99.230) as to the rents and fees to be charged in the operation of a
housing project or projects, the amount to be raised each year or other
period of time by rents, fees and other revenues, and as to the use and
disposition to be made thereof; to create or to authorize the creation of
special funds for moneys held for construction or operating costs, debt
service, reserves, or other purposes, and to covenant as to the use and
disposition of the moneys held in such funds;

(6) To prescribe the procedure, if any, by which the terms of any
contract with bondholders may be amended or abrogated, the amount of
bonds the holders of which must consent thereto and the manner in which
such consent may be given;

(7) To covenant as to use of any or all of its real or personal property;
and to covenant as to the maintenance of its real and personal property,
the replacement thereof, the insurance to be carried thereon and the use
and disposition of insurance moneys;

(8) To covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenant, condition, or obligation; and to
covenant and prescribe as to events of default and terms and conditions
upon which any or all of its bonds or obligations shall become or may be
declared due before maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived;

(9) To vest in a trustee or trustees or the holders of bonds or any
proportion of them the right to enforce the payment of the bonds or any
covenants securing or relating to the bonds; to vest in a trustee or
trustees the right, in the event of a default by said authority, to take
possession and use, operate and manage any housing project or part
thereof, and to collect the rents and revenues arising therefrom and to
dispose of such moneys in accordance with the agreement of the authority
with said trustees; to provide for the powers and duties of a trustee or
trustees and to limit the liabilities thereof; and to provide the terms
and conditions upon which the trustee or trustees or the holders of bonds
or any proportion of them may enforce any covenant or rights securing or
relating to the bonds;

(10) To exercise all or any part or combination of the powers herein
granted; to make covenants other than and in addition to the covenants
herein expressly authorized, of like or different character; to make such
covenants and to do any and all such acts and things as may be necessary
or convenient or desirable in order to secure its bonds, or, in the
absolute discretion of said authority, as will tend to make the bonds
more marketable notwithstanding that such covenants, acts or things may
not be enumerated herein. (RSMo 1939 § 7868)

An authority may submit to the state auditor any bonds to be
issued hereunder after all proceedings for the issuance of such bonds
have been taken. Upon the submission of such proceedings to the state
auditor, it shall be his duty to examine into and pass upon the validity
of such bonds and the regularity of all proceedings in connection
therewith. If such proceedings conform to the provisions of sections
99.010 to 99.230 and are otherwise regular in form and if such bonds when
delivered and paid for will constitute binding and legal obligations of
the authority enforceable according to the terms thereof, the state
auditor shall certify in substance upon the back of each of said bonds
that it is issued in accordance with the constitution and laws of the
state of Missouri. (RSMo 1939 § 7869)

An obligee of an authority shall have the right in addition to
all other rights which may be conferred on such obligee, subject only to
any contractual restrictions binding upon such obligee:

(1) By mandamus, suit, action or proceeding at law or in equity to compel
said authority and the commissioners, officers, agents or employees
thereof to perform each and every term, provision and covenant contained
in any contract of said authority with or for the benefit of such
obligee, and to require the carrying out of any or all such covenants and
agreements of said authority and the fulfillment of all duties imposed
upon said authority by sections 99.010 to 99.230;

(2) By suit, action or proceeding in equity, to enjoin any acts or things
which may be unlawful, or the violation of any of the rights of such
obligee of said authority. (RSMo 1939 § 7870)

An authority shall have power by its resolution, trust indenture,
mortgage, lease or other contract to confer upon any obligee holding or
representing a specified amount in bonds, or holding a lease, the right
(in addition to all rights that may otherwise be conferred), upon the
happening of an event of default as defined in such resolution or
instrument, by suit, action or proceeding in any court of competent
jurisdiction:

(1) To cause possession of any housing project or any part thereof to be
surrendered to any such obligee;

(2) To obtain the appointment of a receiver of any housing project of
said authority or any part thereof and of the rents and profits
therefrom. If such receiver be appointed, he may enter and take
possession of such housing project or any part thereof and operate and
maintain same, and collect and receive all fees, rents, revenues, or
other charges thereafter arising therefrom, and shall keep such moneys in
a separate account or accounts and apply the same in accordance with the
obligations of said authority as the court shall direct;

(3) To require said authority and the commissioners thereof to account as
if it and they were the trustees of an express trust. (RSMo 1939 § 7871)

All real property of an authority shall be exempt from levy and
sale by virtue of an execution, and no execution or other judicial
process shall issue against the same nor shall judgment against an
authority be a charge or lien upon its real property; provided, however,
that the provisions of this section shall not apply to or limit the right
of obligees to foreclose or otherwise enforce any mortgage of an
authority or the right of obligees to pursue any remedies for the
enforcement of any pledge or lien given by an authority on its rents,
fees or revenues. (RSMo 1939 § 7872)

(1959) Property of housing authority created under §§ 99.010 to 99.230 is
exempt from ad valorem taxes. Schmoll v. Housing Authority of St. Louis
County (Mo.), 321 S.W.2d 494.

In addition to the powers conferred upon an authority by other
provisions of sections 99.010 to 99.230, an authority is empowered to
borrow money or accept contributions, grants or other financial
assistance from the federal government for or in aid of any housing
project within its area of operation, to take over or lease or manage any
housing project or undertaking constructed or owned by the federal
government, and to these ends, to comply with such conditions and enter
into such mortgages, trust indentures, leases or agreements as may be
necessary, convenient or desirable. It is the purpose and intent of this
chapter to authorize every authority to do any and all things necessary
or desirable to secure the financial aid or cooperation of the federal
government in the undertaking, construction, maintenance or operation of
any housing project by such authority. (RSMo 1939 § 7873)

At least once a year, an authority shall file with the clerk a
report of its activities for the preceding year, and shall make
recommendations with reference to such additional legislation or other
action as it deems necessary in order to carry out the purposes of
sections 99.010 to 99.230. (RSMo 1939 § 7874)

No funds derived from the United States Department of Housing and
Urban Development for the subsidization, directly or indirectly, of very
low and low-income housing may be used by any housing authority, directly
or indirectly, for any of the nonhousing related activities or housing
projects for moderate income persons described in sections 99.010 to
99.230, unless authorized by federal statutes or regulation. (L. 1986
S.B. 767)

Insofar as the provisions of sections 99.010 to 99.230 are
inconsistent with the provisions of any other law, the provisions of
sections 99.010 to 99.230 shall be controlling. (RSMo 1939 § 7875)

Sections 99.300 to 99.660 shall be known and may be cited as the
"Land Clearance for Redevelopment Authority Law". (L. 1951 p. 300 § 1)

(1954) This law is constitutional. State on Inf. Dalton v. Land Clearance
for Redev. Auth. 364 Mo. 974, 270 S.W.2d 44;

(1954) Land Clearance for Redev. Auth. v. City of St. Louis (Mo.), 270
S.W.2d 58.

(1964) Election of city by resolution and vote of people, to come under
this law could not be revoked by initiative proceedings since law was not
enacted for solely municipal objectives but for state purposes as well,
and law remains effective until legislature repeals it or provides by
statute for means of withdrawal. Anderson v. Smith (A.), 377 S.W.2d 554.

(1966) Land Clearance for Redevelopment Authority Law, §§ 99.300 to
99.660, and the Urban Redevelopment Corporation Law, chapter 353 do not
violate the constitutional provisions prohibiting the taking of private
property for public use without consent of owner. Annbar Associates v.
West Side Redevelopment Corp. (Mo.), 397 S.W.2d 635.

(1968) Where redevelopment authority had condemned plaintiff's land and
was now owner and possessor, plaintiff had no legally protectable
interest and there was no justiciable controversy for plaintiff to
maintain action for declaratory judgment on question of authority's
compliance with statutory requirements. Brooks v. Land Clearance for
Redevelopment Auth. (A.), 425 S.W.2d 481.

It is hereby found and declared that there exists in
municipalities of the state insanitary, blighted, deteriorated and
deteriorating areas which constitute a serious and growing menace
injurious to the public health, safety, morals and welfare of the
residents of the state; that the existence of such areas contributes
substantially and increasingly to the spread of disease and crime,
necessitating excessive and disproportionate expenditures of public funds
for the preservation of the public health and safety, for crime
prevention, correction, prosecution, punishment and the treatment of
juvenile delinquency and for the maintenance of adequate police, fire and
accident protection and other public services and facilities, constitutes
an economic and social liability, substantially impairs or arrests the
sound growth of communities and retards the provision of housing
accommodations; that this menace is beyond remedy and control solely by
regulatory process in the exercise of the police power and cannot be
dealt with effectively by the ordinary operations of private enterprise
without the aids herein provided; that the elimination or prevention of
the detrimental conditions in such areas, the acquisition and preparation
of land in or necessary to the development, renewal or rehabilitation of
such areas and its sale or lease for development, renewal or
rehabilitation in accordance with general plans and redevelopment or
urban renewal plans of communities and any assistance which may be given
by any public body in connection therewith are public uses and purposes
for which public money may be expended and private property acquired; and
that the necessity in the public interest for the provisions hereinafter
enacted is hereby declared as a matter of legislative determination; and
that certain insanitary, blighted, deteriorated or deteriorating areas,
or portions thereof, may require acquisition and clearance, as provided
in this law, since the prevailing condition of decay may make
impracticable the reclamation of the area by conservation or
rehabilitation, but other areas or portions thereof, through the means
provided in this law may be susceptible of conservation or rehabilitation
in such a manner that the conditions and evils hereinbefore enumerated
may be eliminated, remedied or prevented, and to the extent feasible,
salvable, insanitary and blighted areas should be conserved and
rehabilitated through voluntary action and the regulatory process. A
municipality, to the greatest extent it determines to be feasible in
carrying out the provisions of this law, shall afford maximum
opportunity, consistent with the sound needs of the municipality as a
whole, to the rehabilitation or redevelopment or renewal of areas by
private enterprise. (L. 1951 p. 300 § 2, A.L. 1955 p. 279)

As used in this law, the following terms mean:

(1) "Area of operation", in the case of a municipality, the area within
the municipality except that the area of operation of a municipality
under this law shall not include any area which lies within the
territorial boundaries of another municipality unless a resolution has
been adopted by the governing body of the other municipality declaring a
need therefor; and in the case of a county, the area within the county,
except that the area of operation in such case shall not include any area
which lies within the territorial boundaries of a municipality unless a
resolution has been adopted by the governing body of the municipality
declaring a need therefor; and in the case of a regional authority, the
area within the communities for which the regional authority is created,
except that a regional authority shall not undertake a land clearance
project within the territorial boundaries of any municipality unless a
resolution has been adopted by the governing body of the municipality
declaring that there is a need for the regional authority to undertake
the land clearance project within such municipality; no authority shall
operate in any area of operation in which another authority already
established is undertaking or carrying out a land clearance project
without the consent, by resolution, of the other authority;

(2) "Authority" or "land clearance for redevelopment authority", a public
body corporate and politic created by or pursuant to section 99.330 or
any other public body exercising the powers, rights and duties of such an
authority;

(3) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, insanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property
by fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use;

(4) "Bond", any bonds, including refunding bonds, notes, interim
certificates, debentures, or other obligations issued by an authority
pursuant to this law;

(5) "Clerk", the clerk or other official of the municipality or county
who is the custodian of the official records of the municipality or
county;

(6) "Community", any county or municipality except that such term shall
not include any municipality containing less than seventy-five thousand
inhabitants until the governing body thereof shall have submitted the
proposition of accepting the provisions of this law to the qualified
voters therein at an election called and held as provided by law for the
incurring of indebtedness by such municipality, and a majority of the
voters voting at the election shall have voted in favor of such
proposition;

(7) "Federal government", the United States of America or any agency or
instrumentality, corporate or otherwise, of the United States of America;

(8) "Governing body", the city council, common council, board of aldermen
or other legislative body charged with governing the municipality or the
county commission or other legislative body charged with governing the
county;

(9) "Insanitary area", an area in which there is a predominance of
buildings and improvements which, by reason of dilapidation,
deterioration, age or obsolescence, inadequate provision for ventilation,
light, air sanitation or open spaces, high density of population and
overcrowding of buildings, overcrowding of land, or the existence of
conditions which endanger life or property by fire and other causes, or
any combination of such factors, is conducive to ill health, transmission
of disease, infant mortality, juvenile delinquency and crime or
constitutes an economic or social liability and is detrimental to the
public health, safety, morals, or welfare;

(10) "Land clearance project", any work or undertaking:

(a) To acquire blighted, or insanitary areas or portions thereof,
including lands, structures, or improvements the acquisition of which is
necessary or incidental to the proper clearance, development or
redevelopment of the blighted or insanitary areas or to the prevention of
the spread or recurrence of substandard or insanitary conditions or
conditions of blight;

(b) To clear any such areas by demolition or removal of existing
buildings, structures, streets, utilities or other improvements thereon
and to install, construct or reconstruct streets, utilities, and site
improvements essential to the preparation of sites for uses in accordance
with a redevelopment plan;

(c) To sell, lease or otherwise make available land in such areas for
residential, recreational, commercial, industrial or other use or for
public use or to retain such land for public use, in accordance with a
redevelopment plan;

(d) To develop, construct, reconstruct, rehabilitate, repair or improve
residences, houses, buildings, structures and other facilities;

(e) The term "land clearance project" may also include the preparation of
a redevelopment plan, the planning, survey and other work incident to a
land clearance project and the preparation of all plans and arrangements
for carrying out a land clearance project and wherever the words "land
clearance project" are used in this law, they shall also mean and include
the words "urban renewal project" as defined in this section;

(11) "Mayor", the elected mayor of the city or the elected officer having
the duties customarily imposed upon the mayor of the city or the
executive head of a county;

(12) "Municipality", any incorporated city, town or village in the state;

(13) "Obligee", any bondholders, agents or trustees for any bondholders,
lessor demising to the authority property used in connection with land
clearance project, or any assignee or assignees of the lessor's interest
or any part thereof, and the federal government when it is a party to any
contract with the authority;

(14) "Person", any individual, firm, partnership, corporation, company,
association, joint stock association, or body politic; and shall include
any trustee, receiver, assignee, or other similar representative thereof;

(15) "Public body", the state or any municipality, county, township,
board, commission, authority, district, or any other subdivision of the
state;

(16) "Real property", all lands, including improvements and fixtures
thereon, and property of any nature appurtenant thereto, or used in*
connection therewith, and every estate, interest and right, legal or
equitable, therein, including terms for years and liens by way of
judgment, mortgage or otherwise and the indebtedness secured by such
liens;

(17) "Redeveloper", any person, partnership, or public or private
corporation or agency which enters or proposes to enter into a
redevelopment or rehabilitation or renewal contract;

(18) "Redevelopment contract", a contract entered into between an
authority and redeveloper for the redevelopment, rehabilitation or
renewal of an area in conformity with a redevelopment plan or an urban
renewal plan;

(19) "Redevelopment", the process of undertaking and carrying out a
redevelopment plan or urban renewal plan;

(20) "Redevelopment plan", a plan other than a preliminary or tentative
plan for the acquisition, clearance, reconstruction, rehabilitation,
renewal or future use of a land clearance project area, and shall be
sufficiently complete to comply with subdivision (4) of section 99.430
and shall be in compliance with a "workable program" for the city as a
whole and wherever used in sections 99.300 to 99.660 the words
"redevelopment plan" shall also mean and include "urban renewal plan" as
defined in this section;

(21) "Urban renewal plan", a plan as it exists from time to time, for an
urban renewal project, which plan shall conform to the general plan for
the municipality as a whole; and shall be sufficiently complete to
indicate such land acquisition, demolition and removal of structures,
redevelopment, improvements, and rehabilitation as may be proposed to be
carried out in the area of the urban renewal project, zoning and planning
changes, if any, land uses, maximum densities, building requirements, and
the relationship of the plan to definite local objectives respecting
appropriate land uses, improved traffic, public transportation, public
utilities, recreational and community facilities, and other public
improvements; an** urban renewal plan shall be prepared and approved
pursuant to the same procedure as provided with respect to a
redevelopment plan;

(22) "Urban renewal project", any surveys, plans, undertakings and
activities for the elimination and for the prevention of the spread or
development of insanitary, blighted, deteriorated or deteriorating areas
and may involve any work or undertaking for such purpose constituting a
land clearance project or any rehabilitation or conservation work, or any
combination of such undertaking or work in accordance with an urban
renewal project; for this purpose, "rehabilitation or conservation work"
may include:

(a) Carrying out plans for a program of voluntary or compulsory repair
and rehabilitation of buildings or other improvements;

(b) Acquisition of real property and demolition, removal or
rehabilitation of buildings and improvements thereon where necessary to
eliminate unhealthful, insanitary or unsafe conditions, lessen density,
eliminate uneconomic, obsolete or other uses detrimental to the public
welfare, or to otherwise remove or prevent the spread of blight or
deterioration, or to provide land for needed public facilities;

(c) To develop, construct, reconstruct, rehabilitate, repair or improve
residences, houses, buildings, structures and other facilities;

(d) Installation, construction, or reconstruction of streets, utilities,
parks, playgrounds, and other improvements necessary for carrying out the
objectives of the urban renewal project; and

(e) The disposition, for uses in accordance with the objectives of the
urban renewal project, of any property or part thereof acquired in the
area of the project; but such disposition shall be in the manner
prescribed in this law for the disposition of property in a land
clearance project area;

(23) "Workable program", an official plan of action, as it exists from
time to time, for effectively dealing with the problem in insanitary,
blighted, deteriorated or deteriorating areas within the community and
for the establishment and preservation of a well-planned community with
well-organized residential neighborhoods of decent homes and suitable
living environment for adequate family life, for utilizing appropriate
private and public resources to eliminate and prevent the development or
spread of insanitary, blighted, deteriorated or deteriorating areas, to
encourage needed urban rehabilitation, to provide for the redevelopment
of blighted, insanitary, deteriorated and deteriorating areas, or to
undertake such of the aforesaid activities or other feasible community
activities as may be suitably employed to achieve the objectives of such
a program. (L. 1951 p. 300 § 3, A.L. 1955 p. 279, A.L. 1965 p. 220, A.L.
1972 S.B. 586)

*Word "on" appears in original rolls.

**Word "and" appears in original rolls.

There is hereby created in each community (as herein defined) a
public body corporate and politic, to be known as the "Land Clearance for
Redevelopment Authority" of the community; provided, however:

(1) That such authority shall not transact any business or exercise its
powers hereunder until or unless the governing body shall approve (by
resolution or ordinance as herein provided) the exercise in such
community of the powers, functions and duties of an authority under this
law; and provided further that, if it deems such action to be in the
public interest, the governing body may, instead of such resolution or
ordinance adopt a resolution or ordinance approving the exercise of such
powers, functions and duties by the community itself or by the housing
authority, if one exists or is subsequently established in the community,
and in such event, the community or housing authority, as the case may
be, shall be vested with all the powers, functions, rights, duties and
privileges of a land clearance for redevelopment authority under this law;

(2) The governing body of a community shall not adopt a resolution or
ordinance pursuant to subdivision (1) above unless it finds:

(a) That one or more blighted, or insanitary areas (as herein defined)
exist in such community, and

(b) That the redevelopment of such area or areas is necessary in the
interest of the public health, safety, morals or welfare of the residents
of such community. (L. 1951 p. 300 § 4)

1. When the governing body of a municipality adopts a resolution
or ordinance as aforesaid, it shall promptly notify the mayor of such
adoption. If the resolution or ordinance adopted is one approving the
exercise of powers hereunder by a land clearance for redevelopment
authority, the mayor shall appoint a board of commissioners of such
authority which shall consist of five commissioners, and when the
governing body of a county adopts such a resolution, said body shall
appoint a board of commissioners of the authority created for such county
which shall consist of five commissioners.

2. All commissioners of an authority shall be taxpayers who have resided
for a period of five years in, in the case of a municipality, the area
within the municipality; and, in the case of a county, the area within
the county.

3. Two of the commissioners who are first appointed shall be designated
to serve for terms of one year from the date of their appointment and
three shall be designated to serve for terms of two, three and four years
respectively from the date of their appointment. Thereafter,
commissioners shall be appointed as aforesaid for a term of office for
four years except that all vacancies shall be filled for the unexpired
term. (L. 1951 p. 300 § 4, A.L. 1997 H.B. 689)

1. The powers hereunder vested in each land clearance for
redevelopment authority shall be exercised by the board of commissioners
thereof. A majority of the commissioners shall constitute a quorum of
such board for the purpose of conducting business and exercising the
powers of the authority and for all other purposes. Action may be taken
by the board upon a vote of a majority of the commissioners present,
unless in any case the bylaws of the authority shall require a larger
number. Meetings of the board of an authority may be held anywhere within
the perimeter boundaries of the area of operation of the authority.

2. The commissioners of an authority shall elect a chairman and vice
chairman from among the commissioners; however, the first chairman shall
be designated by the mayor. An authority may employ an executive
director, technical experts and such other officers, agents and
employees, permanent and temporary, as it may require, and shall
determine their qualifications, duties and compensation. For such legal
services as it may require, an authority may call upon the chief law
officer of the communities within its area of operation or may employ its
own counsel and legal staff. An authority may delegate to one or more of
its agents or employees such powers or duties as it may deem proper. (L.
1951 p. 300 § 4)

1. If the governing body of each of two or more communities
declares, by resolution or ordinance, that there is a need for one land
clearance for redevelopment authority to be created for all of such
communities, and has made the findings required by subdivision (2) of
section 99.330, a public body, corporate and politic, to be known as a
regional land clearance for redevelopment authority (herein referred to
as regional authority or authority) shall thereupon exist for all of such
communities and may exercise the powers and other functions of an
authority under this law in such communities.

2. The area of operation of a regional authority shall be increased from
time to time to include one or more additional communities if the
governing body of each of such additional communities adopts the
resolution or ordinance described in subsection 1 of this section and
makes the findings required by subdivision (2) of section 99.330, and the
commissioners of the regional authority consent to the inclusion within
its area of operation of such additional communities. (L. 1951 p. 300 § 4)

1. If a regional authority is created as herein provided, one
person shall be appointed as a commissioner of such authority for each
community for which such authority is created.

2. When the area of operation of a regional authority is increased to
include an additional community or communities as herein provided, one
additional person shall be appointed as a commissioner of such authority
for each such additional community.

3. Each such commissioner appointed for a municipality shall be appointed
by the mayor thereof, and each such commissioner appointed for a county
shall be appointed by the governing body thereof. The first appointment
of commissioners of a regional authority may be made at or after the time
of the adoption of the resolution declaring the need for such authority
or declaring the need for the inclusion of such community in the area of
operation of such authority. The commissioners of a regional authority
and their successors shall be appointed as aforesaid for terms of four
years except that all vacancies shall be filled for the unexpired terms.

4. If the area of operation of a regional authority consists at any time
of an even number of communities, the commissioners of the regional
authority already appointed in the manner described above shall appoint
one additional commissioner whose term of office shall be as provided for
a commissioner of a regional authority except that such term shall end at
any earlier time that the area of operation of the regional authority
shall be changed to consist of an odd number of communities. The
commissioners of such authority already appointed in the manner described
above shall likewise appoint each person to succeed such additional
commissioner; provided that the term of office of such person begins
during the terms of office of the commissioners appointing him.

5. A certificate of the appointment of any such additional commissioners
of such regional authority shall be filed with the other records of the
regional authority and shall be conclusive evidence of the due and proper
appointment of such additional commissioner. (L. 1951 p. 300 § 4)

A commissioner of an authority shall receive no compensation for
his services, but shall be entitled to the necessary expenses, including
traveling expenses, incurred in the discharge of his duties. Each
commissioner shall hold office until his successor has been appointed and
has qualified. A certificate of the appointment or reappointment of any
commissioner shall be filed with the municipal or county clerk, as the
case may be, and such certificate shall be conclusive evidence of the due
and proper appointment of such commissioner. (L. 1951 p. 300 § 4)

For inefficiency or neglect of duty or misconduct in office, a
commissioner of an authority may be removed by the mayor (or by the
governing body of the county in case it appointed such commissioner), but
a commissioner shall be removed only after a hearing and after he shall
have been given a copy of the charges at least ten days prior to such
hearing and have had an opportunity to be heard in person or by counsel.
In the event of the removal of any commissioner, a record of the
proceedings, together with the charges and findings thereon, shall be
filed in the office of the municipal or county clerk, as the case may be.
(L. 1951 p. 300 § 4)

1. No commissioner or employee of an authority shall voluntarily
acquire any interest, direct or indirect, in any land clearance project
or in any property included or planned by the authority to be included in
any such project, or in any contract or proposed contract in connection
with any such project.

2. Where the acquisition is not voluntary such commissioner or employee
shall immediately disclose such interest in writing to the authority and
such disclosure shall be entered upon the minutes of the authority.

3. A commissioner or employee who owns or controls any interest, direct
or indirect, in such property shall not participate in any action by the
authority affecting the property. If any commissioner or employee of an
authority owned or controlled within the preceding two years an interest,
direct or indirect, in any property included or planned by the authority
to be included in any land clearance project, he immediately shall
disclose such interest in writing to the authority and such disclosure
shall be entered upon the minutes of the authority. Upon such disclosure
such commissioner or employee shall not participate in any action by the
authority affecting such property.

4. Any violation of the provisions of sections 99.330 to 99.410 shall
constitute misconduct in office. (L. 1951 p. 300 § 4)

1. In any suit, action or proceeding involving the validity or
enforcement of or relating to any contract of an authority or other
public body, such authority or other public body shall be conclusively
deemed to have become established and authorized to transact business and
exercise its powers hereunder upon proof of the adoption of the
appropriate resolution prescribed in subdivision (1) of section 99.330 or
subsection 1 of section 99.360 above. Each such resolution shall be
deemed sufficient if it authorizes the exercise of powers hereunder by
the authority or other public body and finds in substantially the terms
provided in subdivision (2) of section 99.330 (no further detail being
necessary) that the conditions therein enumerated exist.

2. A copy of such resolution duly certified by the municipal or county
clerk, as the case may be, shall be admissible in evidence in any suit,
action or proceeding. (L. 1951 p. 300 § 4)

(1954) In determining the validity of slum clearance legislation granting
power of eminent domain, section 28, Article I, and section 21, Article
VI, are to be construed together and as so construed a legislative
finding that a blighted or insanitary area exists so as to authorize the
exercise of the power of eminent domain is conclusive on the courts in
absence of allegation and proof that the finding is arbitrary, or induced
by fraud, collusion or bad faith. State on Inf. Dalton v. Land Clearance
for Redevelopment Auth. (Mo.), 270 S.W.2d 44.

(1954) Land Clearance for Redev. Authority v. City of St. Louis, 364 Mo.
974, 270 S.W.2d 58.

An authority shall constitute a public body corporate and
politic, exercising public and essential governmental functions, and
having all the powers necessary or convenient to carry out and effectuate
the purposes and provisions of this law, including the following powers
in addition to others herein granted:

(1) To sue and to be sued; to have a seal and to alter the same at
pleasure; to have perpetual succession; to make and execute contracts and
other instruments necessary or convenient to the exercise of the powers
of the authority; and to make and from time to time amend and repeal
bylaws, rules and regulations, not inconsistent with this law, to carry
out the provisions of this law;

(2) To prepare or cause to be prepared and recommend redevelopment plans
and urban renewal plans to the governing body of the community or
communities within its area of operation and to undertake and carry out
land clearance projects and urban renewal projects within its area of
operation;

(3) To arrange or contract for the furnishing or repair, by any person or
agency, public or private, of services, privileges, works, streets,
roads, public utilities or other facilities for or in connection with a
land clearance project or urban renewal project; and notwithstanding
anything to the contrary contained in this law or any other provision of
law, to agree to any conditions that it may deem reasonable and
appropriate attached to federal financial assistance and imposed pursuant
to federal law relating to the determination of prevailing salaries or
wages or compliance with labor standards, in the undertaking or carrying
out of a land clearance project or urban renewal project, and to include
in any contract let in connection with such a project provisions to
fulfill such of the conditions as it may deem reasonable and appropriate;

(4) Within its area of operation, to purchase, lease, obtain options
upon, acquire by gift, grant, bequest, devise, eminent domain or
otherwise, any real or personal property or any interest therein,
including fee simple absolute title, together with any improvements
thereon, necessary or incidental to a land clearance project or urban
renewal project; to hold, improve, clear or prepare for redevelopment or
urban renewal any such property; to develop, construct, reconstruct,
rehabilitate, repair or improve residences, houses, buildings, structures
and other facilities; to sell, lease, exchange, transfer, assign,
subdivide, retain for its own use, mortgage, pledge, hypothecate or
otherwise encumber or dispose of any real or personal property or any
interest therein; to enter into contracts with redevelopers of property
and with other public agencies containing covenants, restrictions and
conditions regarding the use of such property for residential,
commercial, industrial, recreational purposes or for public purposes in
accordance with the redevelopment or urban renewal plan and such other
covenants, restrictions and conditions as the authority may deem
necessary to prevent a recurrence of blighted or insanitary areas or to
effectuate the purposes of this law; to make any of the covenants,
restrictions, or conditions of the foregoing contracts covenants running
with the land, and to provide appropriate remedies for any breach of any
such covenants, or conditions, including the right in the authority to
terminate such contracts and any interest in the property created
pursuant thereto; to borrow money and issue bonds and provide security
for loans or bonds; to insure or provide for the insurance of any real or
personal property or operations of the authority against any risks or
hazards, including the power to pay premiums on any such insurance; and
to enter into any contracts necessary to effectuate the purposes of this
law; provided, however, that no statutory provision with respect to the
acquisition, clearance or disposition of property by other public bodies
shall restrict an authority or other public bodies exercising powers
hereunder, in such functions, unless the legislature shall specifically
so state;

(5) To prepare a workable program;

(6) To make plans for carrying out a program of voluntary repair and
rehabilitation of buildings and improvements, plans for the enforcement
of state and local laws, codes, and regulations relating to the use of
land and the use and occupancy of buildings and improvements, and to the
compulsory repair, rehabilitation, demolition, or removal of buildings
and improvements; the authority may develop, test and report methods and
techniques, and carry out demonstrations and other activities, for the
prevention and the elimination of insanitary, blighted, deteriorated or
deteriorating areas;

(7) To invest any funds held in reserves or sinking funds or any funds
not required for immediate disbursement, in property or securities in
which savings banks may legally invest funds subject to their control; to
redeem its bonds at the redemption price, all bonds so redeemed or
purchased to be canceled;

(8) To borrow money and to apply for and accept advances, loans, grants,
contributions and any other form of financial assistance from the federal
government, the state, county, municipality or other public body or from
any sources public or private, for the purposes of this law, to give such
security as may be required and to enter into and carry out contracts in
connection therewith; an authority, notwithstanding the provisions of any
other law, may include in any contract for financial assistance with the
federal government for a land clearance or urban renewal project such
conditions imposed pursuant to federal law as the authority may deem
reasonable and appropriate and which are not inconsistent with the
purposes of this law;

(9) Acting through one or more commissioners or other persons designated
by the authority, to conduct examinations and investigations and to hear
testimony and take proof under oath at public or private hearings on any
matter material for its information; to administer oaths, issue subpoenas
requiring the attendance of witnesses or the production of books and
papers and to issue commissions for the examination of witnesses who are
outside of the state or unable to attend before the authority, or excused
from attendance; to make available to appropriate agencies, including
those charged with the duty of abating or requiring the correction of
nuisances or like conditions or of demolishing unsafe or insanitary
structures or eliminating substandard or insanitary conditions or
conditions of blight within its area of operation, its findings and
recommendations with regard to any building or property where conditions
exist which are dangerous to the public health, safety, morals or welfare;

(10) Within its area of operation, to make or have made all surveys,
studies and plans, but not including the preparation of a general plan
for the community, necessary to the carrying out of the purposes of this
law and in connection therewith to enter into or upon any land, building,
or improvement thereon for such purposes and to make soundings, test
borings, surveys, appraisals and other preliminary studies and
investigations necessary to carry out its powers but such entry shall
constitute no cause of action for trespass in favor of the owner of such
land, building or improvement except for injuries resulting from
wantonness or malice; and to contract or cooperate with any and all
persons or agencies, public or private, in the making and carrying out of
the surveys, appraisals, studies and plans;

(11) To prepare plans and provide reasonable assistance for the
relocation of families displaced from a land clearance project area or an
urban renewal project area, to the extent essential for acquiring
possession of and* clearing or renewing the area or parts thereof;

(12) To make such expenditures as may be necessary to carry out the
purposes of this law; and to make expenditures from funds obtained from
the federal government without regard to any other laws pertaining to the
making and approval of appropriations and expenditures;

(13) To delegate to a municipality or other public body any of the powers
or functions of the authority with respect to the planning or undertaking
of a land clearance project or urban renewal project in the area in which
the municipality or public body is authorized to act, and the
municipality or public body is hereby authorized to carry out or perform
such powers or functions for the authority;

(14) To exercise all powers or parts or combinations of powers necessary,
convenient or appropriate to undertake and carry out land clearance,
redevelopment and urban renewal plans and projects and all the powers
herein granted;

(15) To loan the proceeds of the bonds or temporary notes hereinafter
authorized to provide for the purchase, construction, extension and
improvement of a project by a private or public developer pursuant to a
development contract approved by the authority. (L. 1951 p. 300 § 5, A.L.
1955 p. 279, A.L. 1972 S.B. 586, A.L. 1982 H.B. 1411 & 1587)

*Word "an" appears in original rolls.

CROSS REFERENCES: Bi-state development agency, bonds of, investment in
authorized, RSMo 70.377 Multinational banks, securities and obligations
of, investment in, when, RSMo 409.950 Savings accounts in insured savings
and loan associations, investment in authorized, RSMo 369.194

1. Preparation and approval of redevelopment and urban renewal
plans shall be carried out within the following regulations:

(1) An authority shall not acquire real property for a land clearance or
urban renewal project unless the governing body of the community in which
the land clearance project area or urban renewal project area is located
has approved the redevelopment or urban renewal plan, as prescribed in
subdivision (9) of this section.

(2) An authority shall not prepare a redevelopment or an urban renewal
plan for a land clearance or urban renewal project area unless the
governing body of the community in which the area is located has
declared, by resolution or ordinance, the area to be a blighted, or
insanitary area in need of redevelopment or in need of rehabilitation.

(3) An authority shall not recommend a redevelopment or urban renewal
plan to the governing body of the community in which the land clearance
or urban renewal project area is located until a general plan for the
development of the community has been prepared.

(4) The authority itself may prepare or cause to be prepared a
redevelopment or urban renewal plan or any person or agency, public or
private, may submit such a plan to an authority. A redevelopment or urban
renewal plan shall be sufficiently complete to indicate its relationship
to definite local objectives as to appropriate land uses, improved
traffic, public transportation, public utilities, recreational and
community facilities and other public improvements and the proposed land
uses and building requirements in the land clearance or urban renewal
project area, and shall include without being limited to:

(a) The boundaries of the land clearance or urban renewal project area,
with a map showing the existing uses and condition of the real property
therein;

(b) A land use plan showing proposed uses of the area;

(c) Information showing the standards of population densities, land
coverage and building intensities in the area after redevelopment or
urban renewal;

(d) A statement of the proposed changes, if any, in zoning ordinances or
maps, street layouts, street levels or grades, building codes and
ordinances;

(e) A statement as to the kind and number of additional public facilities
or utilities which will be required in the area after redevelopment or
urban renewal; and

(f) A schedule indicating the estimated length of time needed for
completion of each phase of the plan.

(5) Prior to recommending a redevelopment or urban renewal plan to the
governing body for approval, an authority shall submit the plan to the
planning agency, if any, of the community in which the land clearance or
urban renewal project area is located for review and recommendations as
to its conformity with the general plan for the development of the
community as a whole. The planning agency shall submit its written
recommendations with respect to the proposed redevelopment or urban
renewal plan to the authority within thirty days after receipt of the
plan for review. Upon receipt of the recommendations of the planning
agency, or, if no recommendations are received within the thirty days,
then without the recommendations, an authority may recommend the
redevelopment or urban renewal plan to the governing body of the
community for approval.

(6) Prior to recommending a redevelopment or urban renewal plan to the
governing body for approval, an authority shall consider whether the
proposed land uses and building requirements in the land clearance or
urban renewal project area are designed with the general purpose of
accomplishing, in conformance with the general plan, a coordinated,
adjusted and harmonious development of the community and its environs
which, in accordance with present and future needs, will promote health,
safety, morals, order, convenience, prosperity and the general welfare,
as well as efficiency and economy in the process of development;
including, among other things, adequate provision for traffic, vehicular
parking, the promotion of safety from fire, panic and other dangers,
adequate provision for light and air, the promotion of the healthful and
convenient distribution of population, the provision of adequate
transportation, water, sewerage, and other public utilities, schools,
parks, recreational and community facilities and other public
requirements, the promotion of sound design and arrangement, the wise and
efficient expenditure of public funds, the prevention of the recurrence
of insanitary or unsafe dwelling accommodations, or insanitary areas, or
conditions of blight or deterioration, and the provision of adequate,
safe and sanitary dwelling accommodations.

(7) The recommendation of a redevelopment or urban renewal plan by an
authority to the governing body shall be accompanied by the
recommendations, if any, of the planning commission concerning the
redevelopment or urban renewal plan; a statement of the proposed method
and estimated cost of the acquisition and preparation for redevelopment
or urban renewal of the land clearance or urban renewal project area and
the estimated proceeds or revenues from its disposal to redevelopers; a
statement of the proposed method of financing the project; a statement of
a feasible method proposed for the relocation of families to be displaced
from the land clearance or urban renewal project area; and a schedule
indicating the estimated length of time needed for completion of each
phase of the plan.

(8) The governing body of the community shall hold a public hearing on
any redevelopment or urban renewal plan or substantial modification
thereof recommended by the authority, after public notice thereof by
publication in a newspaper of general circulation in the community once
each week for two consecutive weeks, the last publication to be at least
ten days prior to the date set for hearing. The notice shall describe the
time, date, place and purpose of the hearing and shall also generally
identify the area to be covered by the plan. All interested parties shall
be afforded at the public hearing a reasonable opportunity to express
their views respecting the proposed redevelopment or urban renewal plan.

(9) Following the hearing, the governing body may approve a redevelopment
or urban renewal plan if it finds that the plan is feasible and in
conformity with the general plan for the development of the community as
a whole. A redevelopment or urban renewal plan which has not been
approved by the governing body when recommended by the authority may be
recommended again to it with any modifications deemed advisable.

(10) A redevelopment or urban renewal plan may be modified at any time by
the authority, provided that, if modified after the lease or sale of real
property in the land clearance or urban renewal project area, the
modification must be consented to by the redeveloper of the real property
or his successor, or their successors in interest affected by the
proposed modification. Where the proposed modification will substantially
change the redevelopment or urban renewal plan as previously approved by
the governing body, the modification must similarly be approved by the
governing body.

2. As an alternative to the procedures prescribed in subdivisions (2) and
(5) of subsection 1, an authority may find an area to be a blighted,
insanitary or undeveloped area in need of redevelopment or
rehabilitation, and simultaneously prepare a plan, or adopt a plan
presented to the authority, and the authority may simultaneously
recommend its finding of a blighted, insanitary or undeveloped area and
the approval of a plan to the governing body of the community, and the
governing body may make its finding that the area is blighted, insanitary
or undeveloped and approve the plan simultaneously. Simultaneously with
such recommendation of a finding of a blighted or insanitary or
undeveloped industrial area and recommendation of a plan to the governing
body for approval, an authority shall submit the finding of a blighted or
insanitary or undeveloped area and the plan to the planning agency, if
any, of the community in which the project area is located for review and
recommendation as to the conformity of the plan to the general plan for
the development of the community as a whole. The planning agency shall
submit its written recommendations with respect to the finding of a
blighted or insanitary or undeveloped industrial area and the plan to the
authority and the local governing body within thirty days after receipt
of the findings and the plan for review. Upon receipt of the
recommendations of the planning agency, or, if no recommendations are
received within the thirty days, then without the recommendations, the
governing body may simultaneously approve the finding of a blighted or
insantiary or undeveloped area and approve the plan in the manner
prescribed in subdivisions (8) and (9) of subsection 1. (L. 1951 p. 300 §
6, A.L. 1955 p. 279, A.L. 1982 H.B. 1411 & 1587)

(1961) Where property acquired by and clearance for redevelopment
authority of city was conveyed to university controlled by religious
denomination pursuant to a plan adopted by the city in slum clearance
project, and where the only bid received was from the university, there
was no subsidy of religion from public funds in the absence of showing of
fraud or arbitrary action. Kintzele v. City of St. Louis (Mo.), 347
S.W.2d 695.

(1979) Land clearance for redevelopment authority of Kansas City does not
have statutory authority to issue revenue bonds, to become mortgage
lender, and exceeded its statutory grant of authority in attempting to
issue mortgage revenue bonds and housing revenue bonds. State ex rel.
Taylor v. Land Clearance for Redevelopment Authority of Kansas City,
(Mo.), 586 S.W.2d 331.

Property in a land clearance project may be disposed of as
follows:

(1) An authority may sell, lease, exchange or otherwise transfer real
property or any interest therein in a land clearance project area to any
redeveloper for residential, recreational, commercial, industrial or
other uses or for public use in accordance with the redevelopment plan,
subject to such covenants, conditions and restrictions as may be deemed
to be in the public interest or to carry out the purposes of this law;
provided that such sale, lease, exchange or other transfer, and any
agreement relating thereto, may be made only after, or subject to, the
approval of the redevelopment plan by the governing body of the
community. Such real property shall be sold, leased or transferred at its
fair value for uses in accordance with the redevelopment plan
notwithstanding such value may be less than the cost of acquiring and
preparing such property for redevelopment. In determining the fair value
of real property for uses in accordance with the redevelopment plan, an
authority shall take into account and give consideration to the uses and
purposes required by such plan; the restrictions upon, and the covenants,
conditions and obligations assumed by the redeveloper of such property;
the objectives of the redevelopment plan for the prevention of the
recurrence of blighted, or insanitary areas; and such other matters as
the authority shall specify as being appropriate. In fixing rentals and
selling prices, an authority shall give consideration to appraisals of
the property for such uses made by land experts employed by the authority.

(2) An authority shall, by public notice published at least two times in
a newspaper having a general circulation in its area of operation, prior
to the consideration of any redevelopment contract proposal, invite
proposals from, and make available all pertinent information to private
redevelopers or any persons interested in undertaking the redevelopment
of an area, or any part thereof, which the governing body has declared to
be in need of redevelopment. Such notice shall identify the area, and
shall state that such further information as is available may be obtained
at the office of the authority. The authority shall consider all
redevelopment proposals and the financial and legal ability of the
prospective redevelopers to carry out their proposals and may negotiate
with any redevelopers for proposals for the purchase or lease of any real
property in the land clearance project area. The authority may accept
such redevelopment contract proposal as it deems to be in the public
interest and in furtherance of the purposes of this law, provided that
the authority has, not less than thirty days prior thereto, notified the
governing body in writing of its intention to accept such redevelopment
contract proposal. Thereafter, the authority may execute such
redevelopment contract in accordance with the provisions of subdivision
(1) of this section and deliver deeds, leases and other instruments and
take all steps necessary to effectuate such redevelopment contract. In
its discretion, the authority may, with regard to the foregoing
provisions of this subdivision, dispose of real property in a land
clearance project area to private redevelopers for redevelopment under
such reasonable competitive bidding procedures as it shall prescribe,
subject to the provisions of subdivision (1).

(3) In carrying out a land clearance project, an authority may:

(a) Convey to the community in which the project is located, such real
property as, in accordance with the redevelopment plan, is to be laid out
into streets, alleys and public ways, this power being additional to and
not limiting any and all other powers of conveyance of property to
communities expressed herein generally or otherwise;

(b) Grant servitudes, easements and rights-of-way for public utilities,
sewers, streets and other similar facilities, in accordance with the
redevelopment plan; and

(c) Convey to the municipality, county or other appropriate public body,
such real property as, in accordance with the redevelopment plan, is to
be used for parks, schools, public buildings, facilities or other public
purposes.

(4) An authority may temporarily operate and maintain real property in a
land clearance project area pending the disposition of the property for
redevelopment, without regard to the provisions of subdivisions (1) and
(2) above, for such uses and purposes as may be deemed desirable even
though not in conformity with the redevelopment plan. (L. 1951 p. 300 § 7)

(1954) Section which requires sale of property cleared at public expense
at fair value is not grant of special privilege or of public property in
aid of private persons. State on Inf. Dalton v. Land Clearance for Redev.
Auth., 364 Mo. 974, 270 S.W.2d 44;

(1954) Land clearance for redevelopment law does not violate
constitutional prohibition against taking private property for private
use without consent of owner. Land Clearance for Redev. Auth. v. City of
St. Louis (Mo.), 270 S.W.2d 58.

1. An authority shall have the right to acquire by the exercise
of the power of eminent domain any real property which it may deem
necessary for a land clearance project or for its purposes under this law
after the adoption by it of a resolution declaring that the acquisition
of the real property described therein is necessary for such purposes. An
authority may exercise the power of eminent domain in the manner and
under the procedure provided for corporations in sections 523.010 to
523.070, inclusive, and 523.090 and 523.100, RSMo, and acts amendatory
thereof or supplementary thereto; or it may exercise the power of eminent
domain in the manner now or which may be hereafter provided by any other
statutory provision available to the community, and, as to an authority
in a constitutional charter city in the manner provided in the charter of
said city for the exercise of the power of eminent domain.

2. Property already devoted to a public use may be acquired in like
manner, provided that no real property belonging to the municipality, the
county or the state may be acquired without its consent. (L. 1951 p. 300
§ 8)

Upon a determination, by resolution or ordinance, of the
governing body of the community in which such land is located that the
acquisition and development of undeveloped vacant land, not within a
blighted, or insanitary area, is essential to the proper clearance or
redevelopment of blighted, or insanitary areas, or a necessary part of
the general land clearance program of the community, the acquisition,
planning, preparation for development or disposal of such land shall
constitute a land clearance project which may be undertaken by the
authority in the manner provided in the foregoing sections. The
determination by the governing body shall be in lieu of the declaration
required by subdivision (2) of section 99.430 but shall not be made until
the governing body finds that there is a shortage of decent, safe and
sanitary housing in the community; that such undeveloped vacant land will
be developed for predominantly residential uses; and that the provision
of dwelling accommodations on such undeveloped vacant land is necessary
to accomplish the relocation, in decent, safe and sanitary housing in the
community, of families to be displaced from blighted, or insanitary areas
which are to be redeveloped; provided, however, that in the undertaking
of land clearance projects on a regional or unified metropolitan basis,
involving the acquisition and development of undeveloped vacant land in
one community as an adjunct to the redevelopment of blighted, or
insanitary areas, in another community, each determination or finding
required in this section shall be made by the governing body of the
community with respect to which the determination or finding relates. (L.
1951 p. 300 § 9)

1. An authority shall have power to issue bonds from time to time
in its discretion for any of its corporate purposes including the payment
of principal and interest upon any advances for surveys and plans for
land clearance projects.

2. An authority shall also have power to issue refunding bonds for the
purpose of paying or retiring or in exchange for bonds previously issued
by it.

3. An authority may issue such types of bonds as it may determine,
including (without limiting the generality of the foregoing) bonds on
which the principal and interest are payable:

(1) Exclusively from the income, proceeds, and revenues of the land
clearance project financed with the proceeds of such bonds; or

(2) Exclusively from the income, proceeds, and revenues of any of its
land clearance projects whether or not they are financed in whole or in
part with the proceeds of such bonds.

4. Provided that any such bonds may be additionally secured by a pledge
of any loan, grant or contributions, or parts thereof, from the federal
government or other source, or a mortgage of any land clearance project
or projects of the authority. (L. 1951 p. 300 § 10)

1. Bonds of an authority shall be authorized by its resolution
and may be issued in one or more series and shall bear such date or
dates, be payable upon demand or mature at such time or times, bear
interest at such rate or rates, not in excess of the maximum rate, if
any, applicable to general and business corporations, be in such
denomination or denominations, be in such form either coupon or
registered, carry such conversion or registration privileges, have such
rank or priority, be executed in such manner, be payable in such medium
of payment, at such place or places, and be subject to such terms of
redemption (with or without premium) as such resolution, its trust
indenture or mortgage may provide.

2. The bonds shall be sold at not less than ninety-five percent of par at
public or, if the authority determines it is in the best interest of the
authority to sell such bonds at private sale, notwithstanding the
provisions of section 108.070, RSMo. The reason or reasons why private
sale is in the best interest of the authority shall be set forth in the
order or resolution authorizing the private sale; provided, however, that
any issue in excess of ten million dollars shall be sold only at public
sale; provided, further, that notice of such public or private sale shall
be published in a newspaper having a general circulation in the area of
operation and such medium of publication as the authority may deem at
least once and not later than ten days prior to such public or private
sale. The decision of the authority shall be conclusive. (L. 1951 p. 300
§ 10, A.L. 1982 H.B. 1411 & 1587)

1. Neither the commissioners of an authority nor any person
executing the bonds shall be liable personally on the bonds by reason of
the issuance thereof. Bonds issued under this section by a land clearance
for redevelopment authority, created by or pursuant to sections 99.330 to
99.410 or by a housing authority, shall not be a debt of the
municipality, the county or the state and neither the municipality, the
county or the state shall be liable thereon nor in any event shall such
bonds be payable out of any funds or properties other than those acquired
for the purposes of this law and such bonds shall not constitute an
indebtedness within the meaning of any constitutional or statutory debt
limitation or restriction.

2. Bonds of an authority are declared to be issued for an essential
public and governmental purpose and to be public instrumentalities, and
interest thereon and income therefrom shall be exempt from income taxes.
(L. 1951 p. 300 § 10)

1. In case any of the commissioners or officers of the authority
whose signatures appear on any bonds or coupons shall cease to be such
commissioners or officers before the delivery of such bonds, such
signatures shall, nevertheless, be valid and sufficient for all purposes,
the same as if such commissioners or officers had remained in office
until such delivery. Any provision of any law to the contrary
notwithstanding, any bonds issued pursuant to sections 99.300 to 99.660
shall be fully negotiable.

2. In any suit, action or proceedings involving the validity or
enforceability of any bond of an authority or the security therefor, any
such bond reciting in substance that it has been issued by the authority
to aid in financing a land clearance project, as herein defined, shall be
conclusively deemed to have been issued for such purpose and such project
shall be conclusively deemed to have been planned, located and carried
out in accordance with the purposes and provisions of this law. (L. 1951
p. 300 § 10)

In connection with the issuance of bonds or the incurring of
obligations under leases and in order to secure the payment of such bonds
or obligations, an authority, in addition to its other powers, shall have
power:

(1) To pledge all or any part of its gross or net rents, fees or revenues
from land clearance projects to which its right then exists or may
thereafter come into existence;

(2) To mortgage all or any part of its real or personal property in a
land clearance project then owned or thereafter acquired;

(3) To covenant against pledging all or any part of its rents, fees and
revenues from land clearance projects, or against mortgaging all or any
part of its real or personal property in a land clearance project, to
which its right or title then exists or may thereafter come into
existence or against permitting or suffering any lien on such revenues or
property; to covenant with respect to limitations on its right to sell,
lease or otherwise dispose of any land clearance project or any part
thereof; and to covenant as to what other or additional debts or
obligations may be incurred by it;

(4) To covenant as to the bonds to be issued and as to the issuance of
such bonds in escrow or otherwise, and as to the use and disposition of
the proceeds thereof; to provide for the replacement of lost, destroyed
or mutilated bonds; to covenant against extending the time for the
payment of its bonds or interest thereon; and to covenant for the
redemption of the bonds and to provide the terms and conditions thereof;

(5) To covenant (subject to the limitations contained in this law) as to
the amount of revenues to be raised each year or other period of time by
rents, fees and other revenues, and as to the use and disposition to be
made thereof; to create or to authorize the creation of special funds for
moneys held for operating costs, debt service, reserves, or other
purposes, and to covenant as to the use and disposition of the moneys
held in such funds;

(6) To prescribe the procedure, if any, by which the terms of any
contract with bondholders may be amended or abrogated, the amount of
bonds the holders of which must consent thereto and the manner in which
such consent may be given;

(7) To covenant as to the use, maintenance and replacement of any or all
of its real or personal property, the insurance to be carried thereon and
the use and disposition of insurance moneys, and to warrant its title to
such property;

(8) To covenant as to the rights, liabilities, powers and duties arising
upon the breach by it of any covenants, condition or obligation; and to
covenant and prescribe as to events of default and terms and conditions
upon which any or all of its bonds or obligations shall become or may be
declared due before maturity and as to the terms and conditions upon
which such declaration and its consequences may be waived;

(9) To vest in any obligees of the authority the right to enforce the
payment of the bonds or any covenants securing or relating to the bonds;
to vest in any obligee or obligees holding a specified amount in bonds
the right, in the event of a default by said authority, to take
possession of and use, operate and manage any land clearance project or
any part thereof, title to which is in the authority, or any funds
connected therewith, and to collect the rents and revenues arising
therefrom and to dispose of such moneys in accordance with the agreement
of the authority with such obligees; to provide for the powers and duties
of such obligees and to limit the liabilities thereof; and to provide the
terms and conditions upon which such obligees may enforce any covenant or
rights securing or relating to the bonds; and

(10) To exercise all or any part or combination of the powers herein
granted; to make such covenants (other than and in addition to the
covenants herein expressly authorized) and to do any and all such acts
and things as may be necessary or convenient or desirable in order to
secure its bonds, or, in the absolute discretion of said authority, as
will tend to make the bonds more marketable notwithstanding that such
covenants, acts or things may not be enumerated herein. (L. 1951 p. 300 §
11)

An authority shall have power by its resolution, trust indenture,
mortgage, lease or other contract to confer upon an obligee holding or
representing a specified amount in bonds, the right (in addition to all
rights that may otherwise be conferred), upon the happening of an event
of default as defined in such resolution or instrument, by suit, action
or proceeding in any court of competent jurisdiction:

(1) To cause possession of any land clearance project or any part
thereof, title to which is in the authority, to be surrendered to any
such obligee;

(2) To obtain the appointment of a receiver of any land clearance project
of said authority or any part thereof, title to which is in the
authority, and of the rents and profits therefrom. If such receiver be
appointed, he may enter and take possession of, carry out, operate and
maintain such project or any part thereof and collect and receive all
fees, rents, revenues, or other charges thereafter arising therefrom, and
shall keep such moneys in a separate account or accounts and apply the
same in accordance with the obligations of said authority as the court
shall direct; and

(3) To require said authority and the commissioners, officers, agents and
employees thereof to account as if it and they were the trustees of an
express trust. (L. 1951 p. 300 § 12)

An obligee of an authority shall have the right in addition to
all other rights which may be conferred on such obligee, subject only to
any contractual restrictions binding upon such obligee:

(1) By mandamus, suit, action or proceeding at law or in equity to compel
said authority and the commissioners, officers, agents or employees
thereof to perform each and every term, provision and covenant contained
in any contract of said authority with or for the benefit of such
obligee, and to require the carrying out of any or all such covenants and
agreements of said authority and the fulfillment of all duties imposed
upon said authority by this law; and

(2) By suit, action or proceeding in equity, to enjoin any acts or things
which may be unlawful, or the violation of any of the rights of such
obligee of said authority. (L. 1951 p. 300 § 13)

All public officers, municipal corporations, political
subdivisions and public bodies, all banks, trust companies, bankers,
savings banks and institutions, building and loan associations, savings
and loan associations, investment companies and other persons carrying on
a banking business, all insurance companies, insurance associations, and
other persons carrying on an insurance business, and all executors,
administrators, curators, trustees, and other fiduciaries may legally
invest any sinking funds, moneys, or other funds belonging to them or
within their control in any bonds or other obligations issued by an
authority pursuant to this law or by any public housing or redevelopment
authority or commission, or agency or any other public body in the United
States for redevelopment purposes, when such bonds and other obligations
are secured by a contract for financial assistance to be paid by the
federal government or any agency thereof and such bonds and other
obligations shall be authorized security for all public deposits. It is
the purpose of this section to authorize any persons, political
subdivisions and officers, public or private, to use any funds owned or
controlled by them for the purchase of any such bonds or other
obligations. However, nothing contained in this section with regard to
legal investments shall be construed as relieving any person of any duty
of exercising reasonable care in selecting securities. (L. 1951 p. 300 §
14)

In any contract for financial assistance with the federal
government the authority may obligate itself (which obligation shall be
specifically enforceable and shall not constitute a mortgage,
notwithstanding any other laws) to convey to the federal government
possession of or title to the land clearance project and land therein to
which such contract relates which is owned by the authority, upon the
occurrence of a substantial default (as defined in such contract) with
respect to the covenants or conditions to which the authority is subject;
such contract may further provide that in case of such conveyance, the
federal government may complete, operate, manage, lease, convey or
otherwise deal with the land clearance project in accordance with the
terms of such contract; provided, that the contract requires that, as
soon as practicable after the federal government is satisfied that all
defaults with respect to the land clearance project have been cured and
that the land clearance project will thereafter be operated in accordance
with the terms of the contract, the federal government shall reconvey to
the authority the land clearance project as then constituted. (L. 1951 p.
300 § 15)

All property including funds of an authority shall be exempt from
levy and sale by virtue of an execution, and no execution or other
judicial process shall issue against the same nor shall judgment against
an authority be a charge or lien upon its property; provided, however,
that the provisions of this section shall not apply to or limit the right
of obligees to foreclose or otherwise enforce any mortgage of an
authority or the right of obligees to pursue any remedies for the
enforcement of any pledge or lien given by an authority on its rents,
fees, grants or revenues. (L. 1951 p. 300 § 16)

For the purpose of aiding and cooperating in the planning,
undertaking or carrying out of a land clearance project located within
the area in which it is authorized to act, any public body may, upon such
terms, with reasonable consideration, as it may determine:

(1) Dedicate, sell, convey or lease any of its interest in any property,
or grant easements, licenses or any other rights or privileges therein to
an authority;

(2) Cause parks, playgrounds, recreational, community, educational,
water, sewer or drainage facilities, or any other works which it is
otherwise empowered to undertake, to be furnished in compliance with a
redevelopment plan;

(3) Furnish, dedicate, close, vacate, pave, install, grade, regrade, plan
or replan streets, roads, sidewalks, ways or other places, which it is
otherwise empowered to undertake;

(4) Plan or replan, zone or rezone any part of the public body or make
exceptions from building regulations and ordinances if such functions are
of the character which the public body is otherwise empowered to perform;

(5) Cause administrative and other services to be furnished to the
authority of the character which the public body is otherwise empowered
to undertake or furnish for the same or other purposes;

(6) Incur the entire expense of any public improvements made by such
public body in exercising the powers granted in this section;

(7) Do any and all things necessary or convenient to aid and cooperate in
the planning or carrying out of a redevelopment plan;

(8) Lend, grant or contribute funds to an authority;

(9) Employ any funds belonging to or within the control of such public
body, including funds derived from the sale or furnishing of property,
service, or facilities to an authority, in the purchase of the bonds or
other obligations of an authority and, as the holder of such bonds or
other obligations, exercise the rights connected therewith; and

(10) Enter into agreements (which may extend over any period,
notwithstanding any provision or rule of law to the contrary) with an
authority respecting action to be taken by such public body pursuant to
any of the powers granted by this law. If at any time title to, or
possession of, any land clearance project is held by any public body or
governmental agency, other than the authority, authorized by law to
engage in the undertaking, carrying out or administration of land
clearance projects, including any agency or instrumentality of the United
States of America, the provisions of such agreements shall inure to the
benefit of and may be enforced by such public body or governmental
agency. (L. 1951 p. 300 § 17)

Any sale, conveyance, lease or agreement provided for in section
99.580 may be made by a public body without appraisal, public notice,
advertisement or public bidding. (L. 1951 p. 300 § 18)

Any community located in whole or in part within the area of
operation of an authority may grant funds to an authority for the purpose
of aiding such authority in carrying out any of its powers and functions
under this law. To obtain funds for this purpose the community may levy
taxes or may issue and sell its bonds. Any bonds to be issued by the
community pursuant to the provisions of this section shall be issued in
the manner and within the limitations, except as herein otherwise
provided, prescribed by the laws of this state for the issuance and
authorization of such bonds for public purposes generally. (L. 1951 p.
300 § 19)

1. Any two or more authorities may join or cooperate with one
another in the exercise of any or all of the powers conferred hereby for
the purpose of planning, undertaking or financing a land clearance
project or projects located within the area or areas of operation of any
one or more of said authorities.

2. When a land clearance project or projects are planned, undertaken or
financed on a regional or unified metropolitan basis, the terms
"governing body" and "community" as used in this law shall mean the
governing bodies of the appropriate communities and the appropriate
communities cooperating in the planning, undertaking or financing of such
project or projects. (L. 1951 p. 300 § 20)

1. At least once a year, an authority shall file with the clerk a
report of its activities for the preceding year, and shall make
recommendations with reference to such additional legislation or other
action as it deems necessary in order to carry out the purposes of this
law.

2. Within sixty days after August 13, 1982, and every five years
thereafter, the governing body shall hold a public hearing regarding
those land clearances and urban renewal projects under the jurisdiction
of the authority. The purpose of the hearing shall be to determine if the
authority is making satisfactory progress under the proposed time
schedule contained within the approved plans for completion of such
projects. Notice of such public hearing shall be given in a newspaper of
general circulation in the area served by the authority once each week
for four weeks immediately prior to the hearing. (L. 1951 p. 300 § 21,
A.L. 1982 H.B. 1411 & 1587)

Any authority empowered to undertake and carry out land clearance
projects in a constitutional charter city or county under this law is
hereby authorized to and may, upon such terms and conditions as it may
determine not inconsistent with this law, and with the consent of the
governing body of such constitutional charter city or county, contract to
and take over, assume, continue and carry out all undertakings,
obligations, rights, powers, plans and activities, not inconsistent with
this law, of such constitutional charter city or county relating to
planned or existing land clearance projects. (L. 1951 p. 300 § 23)

The governing body of any municipality or county, which is not
otherwise authorized to establish a planning agency with power to prepare
a master plan for the physical development of the community, is hereby
authorized and empowered to prepare such a master plan for the purposes
of initiating and carrying out a land clearance project under this law.
(L. 1951 p. 300 § 24)

This law shall be construed liberally to effectuate the purposes
hereof. Insofar as the provisions of this law are inconsistent with the
provisions of any other law, the provisions of this law shall be
controlling. (L. 1951 p. 300 § 25)

The powers conferred by this law shall be in addition and
supplemental to the powers conferred by any other law. (L. 1951 p. 300 §
27)

In any constitutional charter city any person may apply to the
land clearance for redevelopment authority of the city for certification
that designated real property which he owns, rents, or leases is in a
blighted area as defined in section 99.320, and declared to be a blighted
area as provided in section 99.430. Upon receiving plans, as they may
hereby require, which show that the person applying is engaged in new
construction or rehabilitation of the designated real property in
accordance with an approved redevelopment or urban renewal plan, the
authority shall issue a certificate of qualification for tax abatement to
the applicant. (L. 1973 H.B. 63 § 1, A.L. 1979 H.B. 103, A.L. 1986 H.B.
1327)

Within thirty days of receiving the certificate, the applicant
shall notify the city or county assessor, as the case may be, who shall,
as soon as possible, issue a statement as to the current assessed
valuation of the then existing real property covered by the plans. The
authority shall issue a copy of the plans to the assessor. (L. 1973 H.B.
63 § 2, A.L. 1979 H.B. 103)

The city or county assessor's statement, as issued under section
99.705, shall be the maximum total assessed valuation of all real
property included in the plans, a copy of which shall remain on file in
his office, for each year for a period of ten years from the date on
which the statement was issued. (L. 1973 H.B. 63 § 3, A.L. 1979 H.B. 103)

In no event shall section 99.710 prevent the assessor from
increasing or decreasing the assessed valuation of the real property
other than the new construction or rehabilitation approved in the
certificate of qualification. (L. 1973 H.B. 63 § 4)

Sections 99.800 to 99.865 shall be known and may be cited as the
"Real Property Tax Increment Allocation Redevelopment Act". (L. 1982 H.B.
1411 & 1587 § 1)

As used in sections 99.800 to 99.865, unless the context clearly
requires otherwise, the following terms shall mean:

(1) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property
by fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use;

(2) "Collecting officer", the officer of the municipality responsible for
receiving and processing payments in lieu of taxes or economic activity
taxes from taxpayers or the department of revenue;

(3) "Conservation area", any improved area within the boundaries of a
redevelopment area located within the territorial limits of a
municipality in which fifty percent or more of the structures in the area
have an age of thirty-five years or more. Such an area is not yet a
blighted area but is detrimental to the public health, safety, morals, or
welfare and may become a blighted area because of any one or more of the
following factors: dilapidation; obsolescence; deterioration; illegal use
of individual structures; presence of structures below minimum code
standards; abandonment; excessive vacancies; overcrowding of structures
and community facilities; lack of ventilation, light or sanitary
facilities; inadequate utilities; excessive land coverage; deleterious
land use or layout; depreciation of physical maintenance; and lack of
community planning. A conservation area shall meet at least three of the
factors provided in this subdivision for projects approved on or after
December 23, 1997;

(4) "Economic activity taxes", the total additional revenue from taxes
which are imposed by a municipality and other taxing districts, and which
are generated by economic activities within a redevelopment area over the
amount of such taxes generated by economic activities within such
redevelopment area in the calendar year prior to the adoption of the
ordinance designating such a redevelopment area, while tax increment
financing remains in effect, but excluding personal property taxes, taxes
imposed on sales or charges for sleeping rooms paid by transient guests
of hotels and motels, licenses, fees or special assessments. For
redevelopment projects or redevelopment plans approved after December 23,
1997, if a retail establishment relocates within one year from one
facility to another facility within the same county and the governing
body of the municipality finds that the relocation is a direct
beneficiary of tax increment financing, then for purposes of this
definition, the economic activity taxes generated by the retail
establishment shall equal the total additional revenues from economic
activity taxes which are imposed by a municipality or other taxing
district over the amount of economic activity taxes generated by the
retail establishment in the calendar year prior to its relocation to the
redevelopment area;

(5) "Economic development area", any area or portion of an area located
within the territorial limits of a municipality, which does not meet the
requirements of subdivisions (1) and (3) of this section, and in which
the governing body of the municipality finds that redevelopment will not
be solely used for development of commercial businesses which unfairly
compete in the local economy and is in the public interest because it
will:

(a) Discourage commerce, industry or manufacturing from moving their
operations to another state; or

(b) Result in increased employment in the municipality; or

(c) Result in preservation or enhancement of the tax base of the
municipality;

(6) "Gambling establishment", an excursion gambling boat as defined in
section 313.800, RSMo, and any related business facility including any
real property improvements which are directly and solely related to such
business facility, whose sole purpose is to provide goods or services to
an excursion gambling boat and whose majority ownership interest is held
by a person licensed to conduct gambling games on an excursion gambling
boat or licensed to operate an excursion gambling boat as provided in
sections 313.800 to 313.850, RSMo. This subdivision shall be applicable
only to a redevelopment area designated by ordinance adopted after
December 23, 1997;

(7) "Municipality", a city, village, or incorporated town or any county
of this state. For redevelopment areas or projects approved on or after
December 23, 1997, "municipality" applies only to cities, villages,
incorporated towns or counties established for at least one year prior to
such date;

(8) "Obligations", bonds, loans, debentures, notes, special certificates,
or other evidences of indebtedness issued by a municipality to carry out
a redevelopment project or to refund outstanding obligations;

(9) "Ordinance", an ordinance enacted by the governing body of a city,
town, or village or a county or an order of the governing body of a
county whose governing body is not authorized to enact ordinances;

(10) "Payment in lieu of taxes", those estimated revenues from real
property in the area selected for a redevelopment project, which revenues
according to the redevelopment project or plan are to be used for a
private use, which taxing districts would have received had a
municipality not adopted tax increment allocation financing, and which
would result from levies made after the time of the adoption of tax
increment allocation financing during the time the current equalized
value of real property in the area selected for the redevelopment project
exceeds the total initial equalized value of real property in such area
until the designation is terminated pursuant to subsection 2 of section
99.850;

(11) "Redevelopment area", an area designated by a municipality, in
respect to which the municipality has made a finding that there exist
conditions which cause the area to be classified as a blighted area, a
conservation area, an economic development area, an enterprise zone
pursuant to sections 135.200 to 135.256, RSMo, or a combination thereof,
which area includes only those parcels of real property directly and
substantially benefited by the proposed redevelopment project;

(12) "Redevelopment plan", the comprehensive program of a municipality
for redevelopment intended by the payment of redevelopment costs to
reduce or eliminate those conditions, the existence of which qualified
the redevelopment area as a blighted area, conservation area, economic
development area, or combination thereof, and to thereby enhance the tax
bases of the taxing districts which extend into the redevelopment area.
Each redevelopment plan shall conform to the requirements of section
99.810;

(13) "Redevelopment project", any development project within a
redevelopment area in furtherance of the objectives of the redevelopment
plan; any such redevelopment project shall include a legal description of
the area selected for the redevelopment project;

(14) "Redevelopment project costs" include the sum total of all
reasonable or necessary costs incurred or estimated to be incurred, and
any such costs incidental to a redevelopment plan or redevelopment
project, as applicable. Such costs include, but are not limited to, the
following:

(a) Costs of studies, surveys, plans, and specifications;

(b) Professional service costs, including, but not limited to,
architectural, engineering, legal, marketing, financial, planning or
special services. Except the reasonable costs incurred by the commission
established in section 99.820 for the administration of sections 99.800
to 99.865, such costs shall be allowed only as an initial expense which,
to be recoverable, shall be included in the costs of a redevelopment plan
or project;

(c) Property assembly costs, including, but not limited to, acquisition
of land and other property, real or personal, or rights or interests
therein, demolition of buildings, and the clearing and grading of land;

(d) Costs of rehabilitation, reconstruction, or repair or remodeling of
existing buildings and fixtures;

(e) Initial costs for an economic development area;

(f) Costs of construction of public works or improvements;

(g) Financing costs, including, but not limited to, all necessary and
incidental expenses related to the issuance of obligations, and which may
include payment of interest on any obligations issued pursuant to
sections 99.800 to 99.865 accruing during the estimated period of
construction of any redevelopment project for which such obligations are
issued and for not more than eighteen months thereafter, and including
reasonable reserves related thereto;

(h) All or a portion of a taxing district's capital costs resulting from
the redevelopment project necessarily incurred or to be incurred in
furtherance of the objectives of the redevelopment plan and project, to
the extent the municipality by written agreement accepts and approves
such costs;

(i) Relocation costs to the extent that a municipality determines that
relocation costs shall be paid or are required to be paid by federal or
state law;

(j) Payments in lieu of taxes;

(15) "Special allocation fund", the fund of a municipality or its
commission which contains at least two separate segregated accounts for
each redevelopment plan, maintained by the treasurer of the municipality
or the treasurer of the commission into which payments in lieu of taxes
are deposited in one account, and economic activity taxes and other
revenues are deposited in the other account;

(16) "Taxing districts", any political subdivision of this state having
the power to levy taxes;

(17) "Taxing districts' capital costs", those costs of taxing districts
for capital improvements that are found by the municipal governing bodies
to be necessary and to directly result from the redevelopment project; and

(18) "Vacant land", any parcel or combination of parcels of real property
not used for industrial, commercial, or residential buildings. (L. 1982
H.B. 1411 & 1587 § 2, A.L. 1986 H.B. 989 & 1390 merged with S.B. 664,
A.L. 1991 H.B. 502, A.L. 1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

1. Each redevelopment plan shall set forth in writing a general
description of the program to be undertaken to accomplish the objectives
and shall include, but need not be limited to, the estimated
redevelopment project costs, the anticipated sources of funds to pay the
costs, evidence of the commitments to finance the project costs, the
anticipated type and term of the sources of funds to pay costs, the
anticipated type and terms of the obligations to be issued, the most
recent equalized assessed valuation of the property within the
redevelopment area which is to be subjected to payments in lieu of taxes
and economic activity taxes pursuant to section 99.845, an estimate as to
the equalized assessed valuation after redevelopment, and the general
land uses to apply in the redevelopment area. No redevelopment plan shall
be adopted by a municipality without findings that:

(1) The redevelopment area on the whole is a blighted area, a
conservation area, or an economic development area, and has not been
subject to growth and development through investment by private
enterprise and would not reasonably be anticipated to be developed
without the adoption of tax increment financing. Such a finding shall
include, but not be limited to, a detailed description of the factors
that qualify the redevelopment area or project pursuant to this
subdivision and an affidavit, signed by the developer or developers and
submitted with the redevelopment plan, attesting that the provisions of
this subdivision have been met;

(2) The redevelopment plan conforms to the comprehensive plan for the
development of the municipality as a whole;

(3) The estimated dates, which shall not be more than twenty-three years
from the adoption of the ordinance approving a redevelopment project
within a redevelopment area, of completion of any redevelopment project
and retirement of obligations incurred to finance redevelopment project
costs have been stated, provided that no ordinance approving a
redevelopment project shall be adopted later than ten years from the
adoption of the ordinance approving the redevelopment plan under which
such project is authorized and provided that no property for a
redevelopment project shall be acquired by eminent domain later than five
years from the adoption of the ordinance approving such redevelopment
project;

(4) A plan has been developed for relocation assistance for businesses
and residences;

(5) A cost-benefit analysis showing the economic impact of the plan on
each taxing district which is at least partially within the boundaries of
the redevelopment area. The analysis shall show the impact on the economy
if the project is not built, and is built pursuant to the redevelopment
plan under consideration. The cost-benefit analysis shall include a
fiscal impact study on every affected political subdivision, and
sufficient information from the developer for the commission established
in section 99.820 to evaluate whether the project as proposed is
financially feasible;

(6) A finding that the plan does not include the initial development or
redevelopment of any gambling establishment, provided however, that this
subdivision shall be applicable only to a redevelopment plan adopted for
a redevelopment area designated by ordinance after December 23, 1997.

2. By the last day of February each year, each commission shall report to
the director of economic development the name, address, phone number and
primary line of business of any business which relocates to the district.
The director of the department of economic development shall compile and
report the same to the governor, the speaker of the house and the
president pro tempore of the senate on the last day of April each year.
(L. 1982 H.B. 1411 & 1587 § 3 subsec. 1, A.L. 1986 S.B. 664 merged with
H.B. 989 & 1390, A.L. 1987 S.B. 367 Revision, A.L. 1991 H.B. 502, A.L.
1993 H.B. 566, A.L. 1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

When a county of this state desires to implement a tax increment
financing project within the boundaries of a municipality partially or
totally within the county, such county shall first obtain the permission
of the governing body of the municipality located within the county. When
the term "municipality" is used within sections 99.800 to 99.865, such
term may be interpreted to include a county implementing a tax
incremental financing project. (L. 1982 H.B. 1411 & 1587 § 3 subsec. 2)

1. A municipality may:

(1) By ordinance introduced in the governing body of the municipality
within fourteen to ninety days from the completion of the hearing
required in section 99.825, approve redevelopment plans and redevelopment
projects, and designate redevelopment project areas pursuant to the
notice and hearing requirements of sections 99.800 to 99.865. No
redevelopment project shall be approved unless a redevelopment plan has
been approved and a redevelopment area has been designated prior to or
concurrently with the approval of such redevelopment project and the area
selected for the redevelopment project shall include only those parcels
of real property and improvements thereon directly and substantially
benefited by the proposed redevelopment project improvements;

(2) Make and enter into all contracts necessary or incidental to the
implementation and furtherance of its redevelopment plan or project;

(3) Pursuant to a redevelopment plan, subject to any constitutional
limitations, acquire by purchase, donation, lease or, as part of a
redevelopment project, eminent domain, own, convey, lease, mortgage, or
dispose of, land and other property, real or personal, or rights or
interests therein, and grant or acquire licenses, easements and options
with respect thereto, all in the manner and at such price the
municipality or the commission determines is reasonably necessary to
achieve the objectives of the redevelopment plan. No conveyance, lease,
mortgage, disposition of land or other property, acquired by the
municipality, or agreement relating to the development of the property
shall be made except upon the adoption of an ordinance by the governing
body of the municipality. Each municipality or its commission shall
establish written procedures relating to bids and proposals for
implementation of the redevelopment projects. Furthermore, no conveyance,
lease, mortgage, or other disposition of land or agreement relating to
the development of property shall be made without making public
disclosure of the terms of the disposition and all bids and proposals
made in response to the municipality's request. Such procedures for
obtaining such bids and proposals shall provide reasonable opportunity
for any person to submit alternative proposals or bids;

(4) Within a redevelopment area, clear any area by demolition or removal
of existing buildings and structures;

(5) Within a redevelopment area, renovate, rehabilitate, or construct any
structure or building;

(6) Install, repair, construct, reconstruct, or relocate streets,
utilities, and site improvements essential to the preparation of the
redevelopment area for use in accordance with a redevelopment plan;

(7) Within a redevelopment area, fix, charge, and collect fees, rents,
and other charges for the use of any building or property owned or leased
by it or any part thereof, or facility therein;

(8) Accept grants, guarantees, and donations of property, labor, or other
things of value from a public or private source for use within a
redevelopment area;

(9) Acquire and construct public facilities within a redevelopment area;

(10) Incur redevelopment costs and issue obligations;

(11) Make payment in lieu of taxes, or a portion thereof, to taxing
districts;

(12) Disburse surplus funds from the special allocation fund to taxing
districts as follows:

(a) Such surplus payments in lieu of taxes shall be distributed to taxing
districts within the redevelopment area which impose ad valorem taxes on
a basis that is proportional to the current collections of revenue which
each taxing district receives from real property in the redevelopment
area;

(b) Surplus economic activity taxes shall be distributed to taxing
districts in the redevelopment area which impose economic activity taxes,
on a basis that is proportional to the amount of such economic activity
taxes the taxing district would have received from the redevelopment area
had tax increment financing not been adopted;

(c) Surplus revenues, other than payments in lieu of taxes and economic
activity taxes, deposited in the special allocation fund, shall be
distributed on a basis that is proportional to the total receipt of such
other revenues in such account in the year prior to disbursement;

(13) If any member of the governing body of the municipality, a member of
a commission established pursuant to subsection 2 of this section, or an
employee or consultant of the municipality, involved in the planning and
preparation of a redevelopment plan, or redevelopment project for a
redevelopment area or proposed redevelopment area, owns or controls an
interest, direct or indirect, in any property included in any
redevelopment area, or proposed redevelopment area, which property is
designated to be acquired or improved pursuant to a redevelopment
project, he or she shall disclose the same in writing to the clerk of the
municipality, and shall also so disclose the dates, terms, and conditions
of any disposition of any such interest, which disclosures shall be
acknowledged by the governing body of the municipality and entered upon
the minutes books of the governing body of the municipality. If an
individual holds such an interest, then that individual shall refrain
from any further official involvement in regard to such redevelopment
plan, redevelopment project or redevelopment area, from voting on any
matter pertaining to such redevelopment plan, redevelopment project or
redevelopment area, or communicating with other members concerning any
matter pertaining to that redevelopment plan, redevelopment project or
redevelopment area. Furthermore, no such member or employee shall acquire
any interest, direct or indirect, in any property in a redevelopment area
or proposed redevelopment area after either (a) such individual obtains
knowledge of such plan or project, or (b) first public notice of such
plan, project or area pursuant to section 99.830, whichever first occurs;

(14) Charge as a redevelopment cost the reasonable costs incurred by its
clerk or other official in administering the redevelopment project. The
charge for the clerk's or other official's costs shall be determined by
the municipality based on a recommendation from the commission, created
pursuant to this section.

2. Prior to adoption of an ordinance approving the designation of a
redevelopment area or approving a redevelopment plan or redevelopment
project, the municipality shall create a commission of nine persons if
the municipality is a county or a city not within a county and not a
first class county with a charter form of government with a population in
excess of nine hundred thousand, and eleven persons if the municipality
is not a county and not in a first class county with a charter form of
government having a population of more than nine hundred thousand, and
twelve persons if the municipality is located in or is a first class
county with a charter form of government having a population of more than
nine hundred thousand, to be appointed as follows:

(1) In all municipalities two members shall be appointed by the school
boards whose districts are included within the redevelopment plan or
redevelopment area. Such members shall be appointed in any manner agreed
upon by the affected districts;

(2) In all municipalities one member shall be appointed, in any manner
agreed upon by the affected districts, to represent all other districts
levying ad valorem taxes within the area selected for a redevelopment
project or the redevelopment area, excluding representatives of the
governing body of the municipality;

(3) In all municipalities six members shall be appointed by the chief
elected officer of the municipality, with the consent of the majority of
the governing body of the municipality;

(4) In all municipalities which are not counties and not in a first class
county with a charter form of government having a population in excess of
nine hundred thousand, two members shall be appointed by the county of
such municipality in the same manner as members are appointed in
subdivision (3) of this subsection;

(5) In a municipality which is a county with a charter form of government
having a population in excess of nine hundred thousand, three members
shall be appointed by the cities in the county which have tax increment
financing districts in a manner in which the cities shall agree;

(6) In a municipality which is located in the first class county with a
charter form of government having a population in excess of nine hundred
thousand, three members shall be appointed by the county of such
municipality in the same manner as members are appointed in subdivision
(3) of this subsection;

(7) At the option of the members appointed by the municipality, the
members who are appointed by the school boards and other taxing districts
may serve on the commission for a term to coincide with the length of
time a redevelopment project, redevelopment plan or designation of a
redevelopment area is considered for approval by the commission, or for a
definite term pursuant to this subdivision. If the members representing
school districts and other taxing districts are appointed for a term
coinciding with the length of time a redevelopment project, plan or area
is approved, such term shall terminate upon final approval of the
project, plan or designation of the area by the governing body of the
municipality. Thereafter the commission shall consist of the six members
appointed by the municipality, except that members representing school
boards and other taxing districts shall be appointed as provided in this
section prior to any amendments to any redevelopment plans, redevelopment
projects or designation of a redevelopment area. If any school district
or other taxing jurisdiction fails to appoint members of the commission
within thirty days of receipt of written notice of a proposed
redevelopment plan, redevelopment project or designation of a
redevelopment area, the remaining members may proceed to exercise the
power of the commission. Of the members first appointed by the
municipality, two shall be designated to serve for terms of two years,
two shall be designated to serve for a term of three years and two shall
be designated to serve for a term of four years from the date of such
initial appointments. Thereafter, the members appointed by the
municipality shall serve for a term of four years, except that all
vacancies shall be filled for unexpired terms in the same manner as were
the original appointments.

3. The commission, subject to approval of the governing body of the
municipality, may exercise the powers enumerated in sections 99.800 to
99.865, except final approval of plans, projects and designation of
redevelopment areas. The commission shall hold public hearings and
provide notice pursuant to sections 99.825 and 99.830. The commission
shall vote on all proposed redevelopment plans, redevelopment projects
and designations of redevelopment areas, and amendments thereto, within
thirty days following completion of the hearing on any such plan, project
or designation and shall make recommendations to the governing body
within ninety days of the hearing referred to in section 99.825
concerning the adoption of or amendment to redevelopment plans and
redevelopment projects and the designation of redevelopment areas. The
requirements of subsection 2 of this section and this subsection shall
not apply to redevelopment projects upon which the required hearings have
been duly held prior to August 31, 1991. (L. 1982 H.B. 1411 & 1587 § 3
subsec. 3, A.L. 1991 H.B. 502, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998
S.B. 707 & 484, A.L. 2003 S.B. 11)

(2000) Proposed city charter amendment requiring two-thirds voter
approval on every tax increment financing measure violated section and
thus was unconstitutional pursuant to article VI, section 19(a). State ex
rel. Hazelwood Yellow Ribbon Committee v. Klos, 35 S.W.3d 457
(Mo.App.E.D.).

1. Prior to the adoption of an ordinance proposing the
designation of a redevelopment area, or approving a redevelopment plan or
redevelopment project, the commission shall fix a time and place for a
public hearing and notify each taxing district located wholly or
partially within the boundaries of the proposed redevelopment area, plan
or project. At the public hearing any interested person or affected
taxing district may file with the commission written objections to, or
comments on, and may be heard orally in respect to, any issues embodied
in the notice. The commission shall hear and consider all protests,
objections, comments and other evidence presented at the hearing. The
hearing may be continued to another date without further notice other
than a motion to be entered upon the minutes fixing the time and place of
the subsequent hearing. Prior to the conclusion of the hearing, changes
may be made in the redevelopment plan, redevelopment project, or
redevelopment area, provided that each affected taxing district is given
written notice of such changes at least seven days prior to the
conclusion of the hearing. After the public hearing but prior to the
adoption of an ordinance approving a redevelopment plan or redevelopment
project, or designating a redevelopment area, changes may be made to the
redevelopment plan, redevelopment projects or redevelopment areas without
a further hearing, if such changes do not enlarge the exterior boundaries
of the redevelopment area or areas, and do not substantially affect the
general land uses established in the redevelopment plan or substantially
change the nature of the redevelopment projects, provided that notice of
such changes shall be given by mail to each affected taxing district and
by publication in a newspaper of general circulation in the area of the
proposed redevelopment not less than ten days prior to the adoption of
the changes by ordinance. After the adoption of an ordinance approving a
redevelopment plan or redevelopment project, or designating a
redevelopment area, no ordinance shall be adopted altering the exterior
boundaries, affecting the general land uses established pursuant to the
redevelopment plan or changing the nature of the redevelopment project
without complying with the procedures provided in this section pertaining
to the initial approval of a redevelopment plan or redevelopment project
and designation of a redevelopment area. Hearings with regard to a
redevelopment project, redevelopment area, or redevelopment plan may be
held simultaneously.

2. Tax incremental financing projects within an economic development area
shall apply to and fund only the following infrastructure projects:
highways, roads, streets, bridges, sewers, traffic control systems and
devices, water distribution and supply systems, curbing, sidewalks and
any other similar public improvements, but in no case shall it include
buildings. (L. 1982 H.B. 1411 & 1587 § 4, A.L. 1986 S.B. 664 merged with
H.B. 989 & 1390, A.L. 1991 H.B. 502, A.L. 1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

1. Notice of the public hearing required by section 99.825 shall
be given by publication and mailing. Notice by publication shall be given
by publication at least twice, the first publication to be not more than
thirty days and the second publication to be not more than ten days prior
to the hearing, in a newspaper of general circulation in the area of the
proposed redevelopment. Notice by mailing shall be given by depositing
such notice in the United States mail by certified mail addressed to the
person or persons in whose name the general taxes for the last preceding
year were paid on each lot, block, tract, or parcel of land lying within
the redevelopment project or redevelopment area which is to be subjected
to the payment or payments in lieu of taxes and economic activity taxes
pursuant to section 99.845. Such notice shall be mailed not less than ten
days prior to the date set for the public hearing. In the event taxes for
the last preceding year were not paid, the notice shall also be sent to
the persons last listed on the tax rolls within the preceding three years
as the owners of such property.

2. The notices issued pursuant to this section shall include the
following:

(1) The time and place of the public hearing;

(2) The general boundaries of the proposed redevelopment area or
redevelopment project by street location, where possible;

(3) A statement that all interested persons shall be given an opportunity
to be heard at the public hearing;

(4) A description of the proposed redevelopment plan or redevelopment
project and a location and time where the entire plan or project proposal
may be reviewed by any interested party;

(5) Such other matters as the commission may deem appropriate.

3. Not less than forty-five days prior to the date set for the public
hearing, the commission shall give notice by mail as provided in
subsection 1 of this section to all taxing districts from which taxable
property is included in the redevelopment area, redevelopment project or
redevelopment plan, and in addition to the other requirements pursuant to
subsection 2 of this section, the notice shall include an invitation to
each taxing district to submit comments to the commission concerning the
subject matter of the hearing prior to the date of the hearing.

4. A copy of any and all hearing notices required by section 99.825 shall
be submitted by the commission to the director of the department of
economic development. Such submission of the copy of the hearing notice
shall comply with the prior notice requirements pursuant to subsection 3
of this section. (L. 1982 H.B. 1411 & 1587 § 5, A.L. 1991 H.B. 502, A.L.
1993 H.B. 566, A.L. 1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

1. Obligations secured by the special allocation fund set forth
in sections 99.845 and 99.850 for the redevelopment area or redevelopment
project may be issued by the municipality pursuant to section 99.820 or
by the tax increment financing commission to provide for redevelopment
costs. Such obligations, when so issued, shall be retired in the manner
provided in the ordinance or resolution authorizing the issuance of such
obligations by the receipts of payments in lieu of taxes as specified in
section 99.855 and, subject to annual appropriation, other tax revenue as
specified in section 99.845. A municipality may, in the ordinance or
resolution, pledge all or any part of the funds in and to be deposited in
the special allocation fund created pursuant to sections 99.845 and
99.850 to the payment of the redevelopment costs and obligations. Any
pledge of funds in the special allocation fund may provide for
distribution to the taxing districts of moneys not required for payment
of redevelopment costs or obligations and such excess funds shall be
deemed to be surplus funds, except that any moneys allocated to the
special allocation fund as provided in subsection 4 of section 99.845,
and which are not required for payment of redevelopment costs and
obligations, shall not be distributed to the taxing districts but shall
be returned to the department of economic development for credit to the
general revenue fund. In the event a municipality only pledges a portion
of the funds in the special allocation fund for the payment of
redevelopment costs or obligations, any such funds remaining in the
special allocation fund after complying with the requirements of the
pledge, including the retention of funds for the payment of future
redevelopment costs, if so required, shall also be deemed surplus funds.
All surplus funds shall be distributed annually to the taxing districts
in the redevelopment area by being paid by the municipal treasurer to the
county collector who shall immediately thereafter make distribution as
provided in subdivision (12) of section 99.820.

2. Without limiting the provisions of subsection 1 of this section, the
municipality may, in addition to obligations secured by the special
allocation fund, pledge any part or any combination of net new revenues
of any redevelopment project, or a mortgage on part or all of the
redevelopment project to secure its obligations or other redevelopment
costs.

3. Obligations issued pursuant to sections 99.800 to 99.865 may be issued
in one or more series bearing interest at such rate or rates as the
issuing body of the municipality shall determine by ordinance or
resolution. Such obligations shall bear such date or dates, mature at
such time or times not exceeding twenty-three years from their respective
dates, when secured by the special allocation fund, be in such
denomination, carry such registration privileges, be executed in such
manner, be payable in such medium of payment at such place or places,
contain such covenants, terms and conditions, and be subject to
redemption as such ordinance or resolution shall provide. Obligations
issued pursuant to sections 99.800 to 99.865 may be sold at public or
private sale at such price as shall be determined by the issuing body and
shall state that obligations issued pursuant to sections 99.800 to 99.865
are special obligations payable solely from the special allocation fund
or other funds specifically pledged. No referendum approval of the
electors shall be required as a condition to the issuance of obligations
pursuant to sections 99.800 to 99.865.

4. The ordinance authorizing the issuance of obligations may provide that
the obligations shall contain a recital that they are issued pursuant to
sections 99.800 to 99.865, which recital shall be conclusive evidence of
their validity and of the regularity of their issuance.

5. Neither the municipality, its duly authorized commission, the
commissioners or the officers of a municipality nor any person executing
any obligation shall be personally liable for such obligation by reason
of the issuance thereof. The obligations issued pursuant to sections
99.800 to 99.865 shall not be a general obligation of the municipality,
county, state of Missouri, or any political subdivision thereof, nor in
any event shall such obligation be payable out of any funds or properties
other than those specifically pledged as security therefor. The
obligations shall not constitute indebtedness within the meaning of any
constitutional, statutory or charter debt limitation or restriction. (L.
1982 H.B. 1411 & 1587 § 6, A.L. 1990 H.B. 1564, A.L. 1991 H.B. 502, A.L.
1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

1. A municipality may also issue its obligations to refund, in
whole or in part, obligations theretofore issued by such municipality
under the authority of sections 99.800 to 99.865, whether at or prior to
maturity; provided, however, that the last maturity of the refunding
obligations shall not be expressed to mature later than the last maturity
date of the obligations to be refunded.

2. In the event a municipality issues obligations under home rule powers
or other legislative authority, the proceeds of which are pledged to pay
for redevelopment project costs, the municipality may, if it has followed
the procedures in conformance with sections 99.800 to 99.865, retire such
obligations from funds in the special allocation fund in amounts and in
such manner as if such obligations had been issued pursuant to the
provisions of sections 99.800 to 99.865. (L. 1982 H.B. 1411 & 1587 § 7)

1. A municipality, either at the time a redevelopment project is
approved or, in the event a municipality has undertaken acts establishing
a redevelopment plan and redevelopment project and has designated a
redevelopment area after the passage and approval of sections 99.800 to
99.865 but prior to August 13, 1982, which acts are in conformance with
the procedures of sections 99.800 to 99.865, may adopt tax increment
allocation financing by passing an ordinance providing that after the
total equalized assessed valuation of the taxable real property in a
redevelopment project exceeds the certified total initial equalized
assessed valuation of the taxable real property in the redevelopment
project, the ad valorem taxes, and payments in lieu of taxes, if any,
arising from the levies upon taxable real property in such redevelopment
project by taxing districts and tax rates determined in the manner
provided in subsection 2 of section 99.855 each year after the effective
date of the ordinance until redevelopment costs have been paid shall be
divided as follows:

(1) That portion of taxes, penalties and interest levied upon each
taxable lot, block, tract, or parcel of real property which is
attributable to the initial equalized assessed value of each such taxable
lot, block, tract, or parcel of real property in the area selected for
the redevelopment project shall be allocated to and, when collected,
shall be paid by the county collector to the respective affected taxing
districts in the manner required by law in the absence of the adoption of
tax increment allocation financing;

(2) (a) Payments in lieu of taxes attributable to the increase in the
current equalized assessed valuation of each taxable lot, block, tract,
or parcel of real property in the area selected for the redevelopment
project and any applicable penalty and interest over and above the
initial equalized assessed value of each such unit of property in the
area selected for the redevelopment project shall be allocated to and,
when collected, shall be paid to the municipal treasurer who shall
deposit such payment in lieu of taxes into a special fund called the
"Special Allocation Fund" of the municipality for the purpose of paying
redevelopment costs and obligations incurred in the payment thereof.
Payments in lieu of taxes which are due and owing shall constitute a lien
against the real estate of the redevelopment project from which they are
derived and shall be collected in the same manner as the real property
tax, including the assessment of penalties and interest where applicable.
The municipality may, in the ordinance, pledge the funds in the special
allocation fund for the payment of such costs and obligations and provide
for the collection of payments in lieu of taxes, the lien of which may be
foreclosed in the same manner as a special assessment lien as provided in
section 88.861, RSMo. No part of the current equalized assessed valuation
of each lot, block, tract, or parcel of property in the area selected for
the redevelopment project attributable to any increase above the total
initial equalized assessed value of such properties shall be used in
calculating the general state school aid formula provided for in section
163.031, RSMo, until such time as all redevelopment costs have been paid
as provided for in this section and section 99.850;

(b) Notwithstanding any provisions of this section to the contrary, for
purposes of determining the limitation on indebtedness of local
government pursuant to article VI, section 26(b) of the Missouri
Constitution, the current equalized assessed value of the property in an
area selected for redevelopment attributable to the increase above the
total initial equalized assessed valuation shall be included in the value
of taxable tangible property as shown on the last completed assessment
for state or county purposes;

(c) The county assessor shall include the current assessed value of all
property within the taxing district in the aggregate valuation of
assessed property entered upon the assessor's book and verified pursuant
to section 137.245, RSMo, and such value shall be utilized for the
purpose of the debt limitation on local government pursuant to article
VI, section 26(b) of the Missouri Constitution;

(3) For purposes of this section, "levies upon taxable real property in
such redevelopment project by taxing districts" shall not include the
blind pension fund tax levied under the authority of article III, section
38(b) of the Missouri Constitution, or the merchants' and manufacturers'
inventory replacement tax levied under the authority of subsection 2 of
section 6 of article X of the Missouri Constitution, except in
redevelopment project areas in which tax increment financing has been
adopted by ordinance pursuant to a plan approved by vote of the governing
body of the municipality taken after August 13, 1982, and before January
1, 1998.

2. In addition to the payments in lieu of taxes described in subdivision
(2) of subsection 1 of this section, for redevelopment plans and projects
adopted or redevelopment projects approved by ordinance after July 12,
1990, and prior to August 31, 1991, fifty percent of the total additional
revenue from taxes, penalties and interest imposed by the municipality,
or other taxing districts, which are generated by economic activities
within the area of the redevelopment project over the amount of such
taxes generated by economic activities within the area of the
redevelopment project in the calendar year prior to the adoption of the
redevelopment project by ordinance, while tax increment financing remains
in effect, but excluding taxes imposed on sales or charges for sleeping
rooms paid by transient guests of hotels and motels, taxes levied
pursuant to section 70.500, RSMo, licenses, fees or special assessments
other than payments in lieu of taxes and any penalty and interest
thereon, or, effective January 1, 1998, taxes levied pursuant to section
94.660, RSMo, for the purpose of public transportation, shall be
allocated to, and paid by the local political subdivision collecting
officer to the treasurer or other designated financial officer of the
municipality, who shall deposit such funds in a separate segregated
account within the special allocation fund. Any provision of an
agreement, contract or covenant entered into prior to July 12, 1990,
between a municipality and any other political subdivision which provides
for an appropriation of other municipal revenues to the special
allocation fund shall be and remain enforceable.

3. In addition to the payments in lieu of taxes described in subdivision
(2) of subsection 1 of this section, for redevelopment plans and projects
adopted or redevelopment projects approved by ordinance after August 31,
1991, fifty percent of the total additional revenue from taxes, penalties
and interest which are imposed by the municipality or other taxing
districts, and which are generated by economic activities within the area
of the redevelopment project over the amount of such taxes generated by
economic activities within the area of the redevelopment project in the
calendar year prior to the adoption of the redevelopment project by
ordinance, while tax increment financing remains in effect, but excluding
personal property taxes, taxes imposed on sales or charges for sleeping
rooms paid by transient guests of hotels and motels, taxes levied
pursuant to section 70.500, RSMo, or effective January 1, 1998, taxes
levied for the purpose of public transportation pursuant to section
94.660, RSMo, licenses, fees or special assessments other than payments
in lieu of taxes and penalties and interest thereon, shall be allocated
to, and paid by the local political subdivision collecting officer to the
treasurer or other designated financial officer of the municipality, who
shall deposit such funds in a separate segregated account within the
special allocation fund.

4. Beginning January 1, 1998, for redevelopment plans and projects
adopted or redevelopment projects approved by ordinance and which have
complied with subsections 4 to 12 of this section, in addition to the
payments in lieu of taxes and economic activity taxes described in
subsections 1, 2 and 3 of this section, up to fifty percent of the new
state revenues, as defined in subsection 8 of this section, estimated for
the businesses within the project area and identified by the municipality
in the application required by subsection 10 of this section, over and
above the amount of such taxes reported by businesses within the project
area as identified by the municipality in their application prior to the
approval of the redevelopment project by ordinance, while tax increment
financing remains in effect, may be available for appropriation by the
general assembly as provided in subsection 10 of this section to the
department of economic development supplemental tax increment financing
fund, from the general revenue fund, for distribution to the treasurer or
other designated financial officer of the municipality with approved
plans or projects.

5. The treasurer or other designated financial officer of the
municipality with approved plans or projects shall deposit such funds in
a separate segregated account within the special allocation fund
established pursuant to section 99.805.

6. No transfer from the general revenue fund to the Missouri supplemental
tax increment financing fund shall be made unless an appropriation is
made from the general revenue fund for that purpose. No municipality
shall commit any state revenues prior to an appropriation being made for
that project. For all redevelopment plans or projects adopted or approved
after December 23, 1997, appropriations from the new state revenues shall
not be distributed from the Missouri supplemental tax increment financing
fund into the special allocation fund unless the municipality's
redevelopment plan ensures that one hundred percent of payments in lieu
of taxes and fifty percent of economic activity taxes generated by the
project shall be used for eligible redevelopment project costs while tax
increment financing remains in effect. This account shall be separate
from the account into which payments in lieu of taxes are deposited, and
separate from the account into which economic activity taxes are
deposited.

7. In order for the redevelopment plan or project to be eligible to
receive the revenue described in subsection 4 of this section, the
municipality shall comply with the requirements of subsection 10 of this
section prior to the time the project or plan is adopted or approved by
ordinance. The director of the department of economic development and the
commissioner of the office of administration may waive the requirement
that the municipality's application be submitted prior to the
redevelopment plan's or project's adoption or the redevelopment plan's or
project's approval by ordinance.

8. For purposes of this section, "new state revenues" means:

(1) The incremental increase in the general revenue portion of state
sales tax revenues received pursuant to section 144.020, RSMo, excluding
sales taxes that are constitutionally dedicated, taxes deposited to the
school district trust fund in accordance with section 144.701, RSMo,
sales and use taxes on motor vehicles, trailers, boats and outboard
motors and future sales taxes earmarked by law. In no event shall the
incremental increase include any amounts attributable to retail sales
unless the municipality or authority has proven to the Missouri
development finance board and the department of economic development and
such entities have made a finding that the sales tax increment
attributable to retail sales is from new sources which did not exist in
the state during the baseline year. The incremental increase in the
general revenue portion of state sales tax revenues for an existing or
relocated facility shall be the amount that current state sales tax
revenue exceeds the state sales tax revenue in the base year as stated in
the redevelopment plan as provided in subsection 10 of this section; or

(2) The state income tax withheld on behalf of new employees by the
employer pursuant to section 143.221, RSMo, at the business located
within the project as identified by the municipality. The state income
tax withholding allowed by this section shall be the municipality's
estimate of the amount of state income tax withheld by the employer
within the redevelopment area for new employees who fill new jobs
directly created by the tax increment financing project.

9. Subsection 4 of this section shall apply only to blighted areas
located in enterprise zones, pursuant to sections 135.200 to 135.256,
RSMo, blighted areas located in federal empowerment zones, or to blighted
areas located in central business districts or urban core areas of cities
which districts or urban core areas at the time of approval of the
project by ordinance, provided that the enterprise zones, federal
empowerment zones or blighted areas contained one or more buildings at
least fifty years old; and

(1) Suffered from generally declining population or property taxes over
the twenty-year period immediately preceding the area's designation as a
project area by ordinance; or

(2) Was a historic hotel located in a county of the first classification
without a charter form of government with a population according to the
most recent federal decennial census in excess of one hundred fifty
thousand and containing a portion of a city with a population according
to the most recent federal decennial census in excess of three hundred
fifty thousand.

10. The initial appropriation of up to fifty percent of the new state
revenues authorized pursuant to subsections 4 and 5 of this section shall
not be made to or distributed by the department of economic development
to a municipality until all of the following conditions have been
satisfied:

(1) The director of the department of economic development or his or her
designee and the commissioner of the office of administration or his or
her designee have approved a tax increment financing application made by
the municipality for the appropriation of the new state revenues. The
municipality shall include in the application the following items in
addition to the items in section 99.810:

(a) The tax increment financing district or redevelopment area, including
the businesses identified within the redevelopment area;

(b) The base year of state sales tax revenues or the base year of state
income tax withheld on behalf of existing employees, reported by existing
businesses within the project area prior to approval of the redevelopment
project;

(c) The estimate of the incremental increase in the general revenue
portion of state sales tax revenue or the estimate for the state income
tax withheld by the employer on behalf of new employees expected to fill
new jobs created within the redevelopment area after redevelopment;

(d) The official statement of any bond issue pursuant to this subsection
after December 23, 1997;

(e) An affidavit that is signed by the developer or developers attesting
that the provisions of subdivision (1) of section 99.810 have been met
and specifying that the redevelopment area would not be reasonably
anticipated to be developed without the appropriation of the new state
revenues;

(f) The cost-benefit analysis required by section 99.810 includes a study
of the fiscal impact on the state of Missouri; and

(g) The statement of election between the use of the incremental increase
of the general revenue portion of the state sales tax revenues or the
state income tax withheld by employers on behalf of new employees who
fill new jobs created in the redevelopment area;

(h) The name, street and mailing address, and phone number of the mayor
or chief executive officer of the municipality;

(i) The street address of the development site;

(j) The three-digit North American Industry Classification System number
or numbers characterizing the development project;

(k) The estimated development project costs;

(l) The anticipated sources of funds to pay such development project
costs;

(m) Evidence of the commitments to finance such development project costs;

(n) The anticipated type and term of the sources of funds to pay such
development project costs;

(o) The anticipated type and terms of the obligations to be issued;

(p) The most recent equalized assessed valuation of the property within
the development project area;

(q) An estimate as to the equalized assessed valuation after the
development project area is developed in accordance with a development
plan;

(r) The general land uses to apply in the development area;

(s) The total number of individuals employed in the development area,
broken down by full-time, part-time, and temporary positions;

(t) The total number of full-time equivalent positions in the development
area;

(u) The current gross wages, state income tax withholdings, and federal
income tax withholdings for individuals employed in the development area;

(v) The total number of individuals employed in this state by the
corporate parent of any business benefiting from public expenditures in
the development area, and all subsidiaries thereof, as of December
thirty-first of the prior fiscal year, broken down by full-time,
part-time, and temporary positions;

(w) The number of new jobs to be created by any business benefiting from
public expenditures in the development area, broken down by full-time,
part-time, and temporary positions;

(x) The average hourly wage to be paid to all current and new employees
at the project site, broken down by full-time, part-time, and temporary
positions;

(y) For project sites located in a metropolitan statistical area, as
defined by the federal Office of Management and Budget, the average
hourly wage paid to nonmanagerial employees in this state for the
industries involved at the project, as established by the United States
Bureau of Labor Statistics;

(z) For project sites located outside of metropolitan statistical areas,
the average weekly wage paid to nonmanagerial employees in the county for
industries involved at the project, as established by the United States
Department of Commerce;

(aa) A list of other community and economic benefits to result from the
project;

(bb) A list of all development subsidies that any business benefiting
from public expenditures in the development area has previously received
for the project, and the name of any other granting body from which such
subsidies are sought;

(cc) A list of all other public investments made or to be made by this
state or units of local government to support infrastructure or other
needs generated by the project for which the funding pursuant to this
section is being sought;

(dd) A statement as to whether the development project may reduce
employment at any other site, within or without the state, resulting from
automation, merger, acquisition, corporate restructuring, relocation, or
other business activity;

(ee) A statement as to whether or not the project involves the relocation
of work from another address and if so, the number of jobs to be
relocated and the address from which they are to be relocated;

(ff) A list of competing businesses in the county containing the
development area and in each contiguous county;

(gg) A market study for the development area;

(hh) A certification by the chief officer of the applicant as to the
accuracy of the development plan;

(2) The methodologies used in the application for determining the base
year and determining the estimate of the incremental increase in the
general revenue portion of the state sales tax revenues or the state
income tax withheld by employers on behalf of new employees who fill new
jobs created in the redevelopment area shall be approved by the director
of the department of economic development or his or her designee and the
commissioner of the office of administration or his or her designee. Upon
approval of the application, the director of the department of economic
development or his or her designee and the commissioner of the office of
administration or his or her designee shall issue a certificate of
approval. The department of economic development may request the
appropriation following application approval;

(3) The appropriation shall be either a portion of the estimate of the
incremental increase in the general revenue portion of state sales tax
revenues in the redevelopment area or a portion of the estimate of the
state income tax withheld by the employer on behalf of new employees who
fill new jobs created in the redevelopment area as indicated in the
municipality's application, approved by the director of the department of
economic development or his or her designee and the commissioner of the
office of administration or his or her designee. At no time shall the
annual amount of the new state revenues approved for disbursements from
the Missouri supplemental tax increment financing fund exceed thirty-two
million dollars;

(4) Redevelopment plans and projects receiving new state revenues shall
have a duration of up to fifteen years, unless prior approval for a
longer term is given by the director of the department of economic
development or his or her designee and the commissioner of the office of
administration or his or her designee; except that, in no case shall the
duration exceed twenty-three years.

11. In addition to the areas authorized in subsection 9 of this section,
the funding authorized pursuant to subsection 4 of this section shall
also be available in a federally approved levee district, where
construction of a levee begins after December 23, 1997, and which is
contained within a county of the first classification without a charter
form of government with a population between fifty thousand and one
hundred thousand inhabitants which contains all or part of a city with a
population in excess of four hundred thousand or more inhabitants.

12. There is hereby established within the state treasury a special fund
to be known as the "Missouri Supplemental Tax Increment Financing Fund",
to be administered by the department of economic development. The
department shall annually distribute from the Missouri supplemental tax
increment financing fund the amount of the new state revenues as
appropriated as provided in the provisions of subsections 4 and 5 of this
section if and only if the conditions of subsection 10 of this section
are met. The fund shall also consist of any gifts, contributions, grants
or bequests received from federal, private or other sources. Moneys in
the Missouri supplemental tax increment financing fund shall be disbursed
per project pursuant to state appropriations.

13. Redevelopment project costs may include, at the prerogative of the
state, the portion of salaries and expenses of the department of economic
development and the department of revenue reasonably allocable to each
redevelopment project approved for disbursements from the Missouri
supplemental tax increment financing fund for the ongoing administrative
functions associated with such redevelopment project. Such amounts shall
be recovered from new state revenues deposited into the Missouri
supplemental tax increment financing fund created under this section.

14. For redevelopment plans or projects approved by ordinance that result
in net new jobs from the relocation of a national headquarters from
another state to the area of the redevelopment project, the economic
activity taxes and new state tax revenues shall not be based on a
calculation of the incremental increase in taxes as compared to the base
year or prior calendar year for such redevelopment project, rather the
incremental increase shall be the amount of total taxes generated from
the net new jobs brought in by the national headquarters from another
state. In no event shall this subsection be construed to allow a
redevelopment project to receive an appropriation in excess of up to
fifty percent of the new state revenues. (L. 1982 H.B. 1411 & 1587 § 8
subsec. 1, A.L. 1986 S.B. 664 merged with H.B. 989 & 1390, A.L. 1990 H.B.
1564, A.L. 1991 H.B. 502, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 S.B.
707 & 484, A.L. 2003 S.B. 620 and H.B. 289 merged with S.B. 235, A.L.
2005 S.B. 343)

(1995) This statute creates an exception to the county sales tax statutes
(67.582 & 67.700). County of Jefferson v. Quiktrip Corp., 912 S.W.2d 487
(Mo.banc 1995).

1. Notwithstanding the provisions of sections 99.800 to 99.865 to
the contrary, no new tax increment financing project shall be authorized
in any area which is within an area designated as flood plain by the
Federal Emergency Management Agency and which is located in or partly
within a county with a charter form of government with greater than two
hundred fifty thousand inhabitants but fewer than three hundred thousand
inhabitants.

2. This subsection shall not apply to tax increment financing projects or
districts approved prior to July 1, 2003, and shall allow the
aforementioned tax increment financing projects to modify, amend or
expand such projects including redevelopment project costs by not more
than forty percent of such project original projected cost including
redevelopment project costs as such projects including redevelopment
project costs as such projects redevelopment projects including
redevelopment project costs existed as of June 30, 2003, and shall allow
the aforementioned tax increment financing district to modify, amend or
expand such districts by not more than five percent as such districts
existed as of June 30, 2003. (L. 1996 H.B. 1237 § 24, A.L. 2002 S.B.
1107, A.L. 2005 S.B. 516)

(2005) Addition of subsections 2 and 3 of section prohibiting tax
increment financing districts in flood plain areas to bill relating to
emergency services did not violate single-subject requirement of Article
III, Section 23. City of St. Charles v. State, 165 S.W.3d 149 (Mo.banc).

Notwithstanding subsection 1 of section 99.847, any district
providing emergency services pursuant to chapter 190 or 321, RSMo, shall
be entitled to reimbursement from the special allocation fund in the
amount of at least fifty percent nor more than one hundred percent of the
district's tax increment. This section shall not apply to tax increment
financing projects or districts approved prior to August 28, 2004. (L.
2004 H.B. 1529 & 1655)

1. When such redevelopment project costs, including, but not
limited to, all municipal obligations financing redevelopment project
costs incurred under sections 99.800 to 99.865 have been paid, all
surplus funds then remaining in the special allocation fund shall be paid
by the municipal treasurer to the county collector who shall immediately
thereafter pay such funds to the taxing districts in the area selected
for a redevelopment project in the same manner and proportion as the most
recent distribution by the collector to the affected districts of real
property taxes from real property in the area selected for a
redevelopment project.

2. Upon the payment of all redevelopment project costs, retirement of
obligations and the distribution of any excess moneys pursuant to section
99.845 and this section, the municipality shall adopt an ordinance
dissolving the special allocation fund for the redevelopment area and
terminating the designation of the redevelopment area as a redevelopment
area. Thereafter the rates of the taxing districts shall be extended and
taxes levied, collected, and distributed in the manner applicable in the
absence of the adoption of tax increment financing.

3. Nothing in sections 99.800 to 99.865 shall be construed as relieving
property in such areas from paying a uniform rate of taxes, as required
by article X, section 3 of the Missouri Constitution. (L. 1982 H.B. 1411
& 1587 § 8 subsecs. 2, 3, 4, A.L. 1991 H.B. 502)

1. If a municipality by ordinance provides for tax increment
allocation financing pursuant to sections 99.845 and 99.850, the county
assessor shall immediately thereafter determine total equalized assessed
value of all taxable real property within such redevelopment project by
adding together the most recently ascertained equalized assessed value of
each taxable lot, block, tract, or parcel of real property within such
project, and shall certify such amount as the total initial equalized
assessed value of the taxable real property within such project.

2. After the county assessor has certified the total initial equalized
assessed value of the taxable real property in such redevelopment
project, then, in respect to every taxing district containing a
redevelopment project, the county clerk, or any other official required
by law to ascertain the amount of the equalized assessed value of all
taxable property within such district for the purpose of computing any
debt service levies to be extended upon taxable property within such
district, shall in every year that tax increment allocation financing is
in effect ascertain the amount of value of taxable property in a
redevelopment project by including in such amount the certified total
initial equalized assessed value of all taxable real property in such
area in lieu of the equalized assessed value of all taxable real property
in such area. For the purpose of measuring the size of payments in lieu
of taxes under sections 99.800 to 99.865, all tax levies shall then be
extended to the current equalized assessed value of all property in the
redevelopment project in the same manner as the tax rate percentage is
extended to all other taxable property in the taxing district. The method
of extending taxes established under this section shall terminate when
the municipality adopts an ordinance dissolving the special allocation
fund for the redevelopment project. (L. 1982 H.B. 1411 & 1587 § 9, A.L.
1986 S.B. 664 merged with H.B. 989 & 1390, A.L. 1991 H.B. 502)

If any section, subsection, subdivision, paragraph, sentence or
clause of sections 99.800 to 99.860 is, for any reason, held to be
invalid or unconstitutional, such decision shall not affect any remaining
portion, section, or part thereof which can be given effect without the
invalid provision. (L. 1982 H.B. 1411 & 1587 § 10)

Beginning in 1999, and every five years thereafter, a joint
committee of the general assembly, comprised of five members appointed by
the speaker of the house of representatives and five members appointed by
the president pro tem of the senate, shall review sections 99.800 to
99.865. A report based on such review, with any recommended legislative
changes, shall be submitted to the speaker of the house of
representatives and the president pro tem of the senate no later than
February first following the year in which the review is conducted. (L.
1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

1. Each year the governing body of the municipality, or its
designee, shall prepare a report concerning the status of each
redevelopment plan and redevelopment project, and shall submit a copy of
such report to the director of the department of economic development.
The report shall include the following:

(1) The amount and source of revenue in the special allocation fund;

(2) The amount and purpose of expenditures from the special allocation
fund;

(3) The amount of any pledge of revenues, including principal and
interest on any outstanding bonded indebtedness;

(4) The original assessed value of the redevelopment project;

(5) The assessed valuation added to the redevelopment project;

(6) Payments made in lieu of taxes received and expended;

(7) The economic activity taxes generated within the redevelopment area
in the calendar year prior to the approval of the redevelopment plan, to
include a separate entry for the state sales tax revenue base for the
redevelopment area or the state income tax withheld by employers on
behalf of existing employees in the redevelopment area prior to the
redevelopment plan;

(8) The economic activity taxes generated within the redevelopment area
after the approval of the redevelopment plan, to include a separate entry
for the increase in state sales tax revenues for the redevelopment area
or the increase in state income tax withheld by employers on behalf of
new employees who fill new jobs created in the redevelopment area;

(9) Reports on contracts made incident to the implementation and
furtherance of a redevelopment plan or project;

(10) A copy of any redevelopment plan, which shall include the required
findings and cost-benefit analysis pursuant to subdivisions (1) to (6) of
section 99.810;

(11) The cost of any property acquired, disposed of, rehabilitated,
reconstructed, repaired or remodeled;

(12) The number of parcels acquired by or through initiation of eminent
domain proceedings; and

(13) Any additional information the municipality deems necessary.

2. Data contained in the report mandated pursuant to the provisions of
subsection 1 of this section and any information regarding amounts
disbursed to municipalities pursuant to the provisions of section 99.845
shall be deemed a public record, as defined in section 610.010, RSMo. An
annual statement showing the payments made in lieu of taxes received and
expended in that year, the status of the redevelopment plan and projects
therein, amount of outstanding bonded indebtedness and any additional
information the municipality deems necessary shall be published in a
newspaper of general circulation in the municipality.

3. Five years after the establishment of a redevelopment plan and every
five years thereafter the governing body shall hold a public hearing
regarding those redevelopment plans and projects created pursuant to
sections 99.800 to 99.865. The purpose of the hearing shall be to
determine if the redevelopment project is making satisfactory progress
under the proposed time schedule contained within the approved plans for
completion of such projects. Notice of such public hearing shall be given
in a newspaper of general circulation in the area served by the
commission once each week for four weeks immediately prior to the hearing.

4. The director of the department of economic development shall submit a
report to the speaker of the house of representatives and the president
pro tem of the senate no later than February first of each year. The
report shall contain a summary of all information received by the
director pursuant to this section.

5. For the purpose of coordinating all tax increment financing projects
using new state revenues, the director of the department of economic
development may promulgate rules and regulations to ensure compliance
with this section. Such rules and regulations may include methods for
enumerating all of the municipalities which have established commissions
pursuant to section 99.820. No rule or portion of a rule promulgated
under the authority of sections 99.800 to 99.865 shall become effective
unless it has been promulgated pursuant to the provisions of chapter 536,
RSMo. All rulemaking authority delegated prior to June 27, 1997, is of no
force and effect and repealed; however, nothing in this section shall be
interpreted to repeal or affect the validity of any rule filed or adopted
prior to June 27, 1997, if such rule complied with the provisions of
chapter 536, RSMo. The provisions of this section and chapter 536, RSMo,
are nonseverable and if any of the powers vested with the general
assembly pursuant to chapter 536, RSMo, including the ability to review,
to delay the effective date, or to disapprove and annul a rule or portion
of a rule, are subsequently held unconstitutional, then the purported
grant of rulemaking authority and any rule so proposed and contained in
the order of rulemaking shall be invalid and void.

6. The department of economic development shall provide information and
technical assistance, as requested by any municipality, on the
requirements of sections 99.800 to 99.865. Such information and technical
assistance shall be provided in the form of a manual, written in an easy-
to-follow manner, and through consultations with departmental staff. (L.
1982 H.B. 1411 & 1587 § 11, A.L. 1990 H.B. 1564, A.L. 1991 H.B. 502, A.L.
1997 2d Ex. Sess. S.B. 1)

Effective 12-23-97

(2000) Proposed city charter amendment requiring two-thirds voter
approval on every tax increment financing measure violated section and
thus was unconstitutional pursuant to article VI, section 19(a). State ex
rel. Hazelwood Yellow Ribbon Committee v. Klos, 35 S.W.3d 457
(Mo.App.E.D.).

As used in sections 99.875 to 99.912, the following terms mean:

(1) "Abandoned property", any real property on which there is a vacant
structure and on which real property taxes have been delinquent for one
year or more and orders have been issued by the municipality's fire
official, building official or health official and there has been no
compliance with those orders within the prescribed time given by such
official or within ninety days, whichever is longer, or the owner has
declared in writing to the building official that his property is
abandoned or there has been a determination by the municipality that the
vacant structure contributes to housing blight;

(2) "Building official", the person appointed by the municipality to
oversee municipal building codes or housing;

(3) "Fire official", the fire chief or the municipal official authorized
to administer the provisions of the municipal fire safety code;

(4) "Health official", the municipal official authorized to administer
the provisions of any local health code;

(5) "Low- or moderate-income families", families or individuals who lack
the amount of income necessary to rent or purchase adequate housing
without financial assistance, as defined by such income limits as shall
be established by the Missouri housing development commission for the
purposes of determining eligibility under any programs aimed at providing
housing for low- and moderate-income families or persons;

(6) "Municipality", any city, town or village;

(7) "Owner", any holder, as appears in the land records of the
municipality, of title to real property and any mortgage or other secured
or equitable interest in such property;

(8) "Rehabilitation permit" and "demolition permit", those permits
obtained from a local building official for the purpose of rehabilitating
or demolishing a structure;

(9) "Urban homesteader", any person, firm, partnership, corporation or
other legal entity to which urban homestead program property is conveyed;

(10) "Urban homesteading agency", the agency designated by the
legislative body of a municipality pursuant to sections 99.875 to 99.912.
(L. 1992 H.B. 1434 & 1490 § 2)

Any municipality may, by ordinance, establish an urban
homesteading program and may authorize any existing board, commission,
department or agency, including a housing authority, redevelopment agency
or any nonprofit community housing development corporation to be the
urban homesteading agency or may, by ordinance, establish a new board,
commission, department or agency to act as the urban homesteading agency.
Such new "Urban Homesteading Agency" shall be composed of not less than
three nor more than nine members, all of whom shall be residents of the
municipality, appointed by the mayor with the approval of the governing
body of the city. Those first appointed shall be designated to serve one,
two and three years, respectively, and thereafter members shall be
appointed annually to serve for three years. Each member shall serve
until his successor is appointed and has qualified. Action by such an
urban homesteading agency shall be taken by majority vote of members
present, provided no action may be taken unless at least fifty percent of
the members are present. An urban homesteading agency created pursuant to
this section shall select a secretary, who may be a member of the agency
and may elect or employ such other officers, agents, technical
consultants, legal counsel and employees as the agency requires. The
members shall serve without compensation but may be reimbursed for
necessary expenses incurred in the performance of their official duties
out of funds provided by the governing body of the city. (L. 1992 H.B.
1434 & 1490 § 3)

1. In any municipality adopting an ordinance pursuant to section
99.877, the building official shall certify to the urban homesteading
agency all properties which are abandoned, together with a statement as
to which structures are suitable for rehabilitation, and all municipally
owned properties which are vacant, together with a statement as to which
properties are suitable for construction. At least quarterly thereafter
the building official shall certify to the urban homesteading agency any
changes in the number or condition of the abandoned properties or the
vacant municipally owned properties.

2. Upon receipt of the list of the abandoned properties pursuant to
subsection 1 of this section, the urban homesteading agency shall serve
notice to each owner of such properties by mailing to the owner by
certified mail to the last known address of such owner, or, in the case
of the owner who cannot be identified or whose address is unknown, by
publishing a copy of such notice in a newspaper having general
circulation in the municipality, stating such property has been
determined to be abandoned and setting a date for a hearing before the
urban homesteading agency, or any hearing examiner appointed by the urban
homesteading agency, for the purpose of determining whether the owner is
willing and able to rehabilitate or demolish the vacant structure on such
abandoned property within a reasonable time. At such hearing the owner
may contest the designation of such property as abandoned. A decision
rendered by a hearing examiner after such hearing shall be in writing and
shall be filed with the urban homesteading agency for its final decision.
All decisions of the urban homesteading agency shall be in writing and
shall be mailed, by certified mail, return receipt requested, to each
owner and to all parties to the proceedings. A decision of the urban
homesteading agency may be appealed by filing an action in circuit court
within thirty days after notification of the decision is received.

3. In the event that an owner fails to appear, either personally or by an
attorney, on the date set for the hearing or any adjourned date of such
hearing, or in the event the urban homesteading agency, after holding the
hearing pursuant to subsection 2 of this section, determines that the
owner of such property is not willing or able to rehabilitate or demolish
such property within a reasonable time, the urban homesteading agency may
recommend to the governing body of the municipality that the urban
homesteading agency be authorized to acquire the property, either by
purchase of the property, free and clear of any liens, for an amount not
in excess of fair market value of the land and any improvements thereon
as determined by the urban homesteading agency, or by eminent domain,
provided all eminent domain proceedings instituted under this section
shall be undertaken by the urban homesteading agency in the same manner
as provided by law for condemnation proceedings by the municipality, and
title to all property acquired pursuant to this subsection shall be held
in the name of the municipality; or the building official that he order
the structure demolished; or the tax collector, if any liens for real
property taxes are due to the municipality against the abandoned
property, that he institute tax foreclosure proceedings as provided by
law.

4. Notwithstanding any other provision of this section, an urban
homesteading agency may, at any time, with the concurrence of the
governing body of the city, accept free and clear title to an abandoned
property upon which exists a structure deemed rehabilitable by a building
official for such consideration not in excess of fair market value of the
land and any improvements on such land as determined by the urban
homesteading agency. (L. 1992 H.B. 1434 & 1490 § 4)

1. Upon acquisition of real property by the urban homesteading
agency under section 99.879 or upon certification by the building
official of vacant municipally owned property and approval of the
governing body of the municipality, the urban homesteading agency shall
publish at least twice a notice in a newspaper having general circulation
in the municipality that such property is available. Such notice shall
include the estimated purchase price, the qualifications for applicants,
procedures for bidding on the property and the closing date for such
bidding. The second notice shall be published not less than two weeks
before such closing date.

2. Within thirty days after the closing date for bidding, the urban
homesteading agency shall recommend to the legislative body the transfer
of such property to a qualified applicant under such terms and conditions
as are determined by the agency, provided the applicant shall be selected
in accordance with priorities established under section 99.891.

3. The governing body of the city may, by resolution, vote to transfer
the urban homesteading property with or without compensation to the
applicant selected pursuant to subsection 2 of this section. Such
transfer shall be made pursuant to a contract of sale and rehabilitation
or construction which shall provide among other things that, as
consideration for the transfer:

(1) The property transferred be rehabilitated or constructed
predominantly for residential use and be brought into and maintained in
conformity with applicable health, housing and building code standards;

(2) The rehabilitation or construction shall commence and be completed
within a period of time as determined by the urban homesteading agency.
(L. 1992 H.B. 1434 & 1490 § 5 subsecs. 1, 2, 3 subdivs. (1), (2))

Prior to the issuance of a certificate of occupancy by the
building official no transfer of the property or any interest therein,
except a transfer to a bona fide mortgagee or similar lienholder, may be
made by the homesteader without the approval of the urban homesteading
agency, provided any such transfer may only be made for a consideration
not in excess of the cost of the property to the homesteader together
with the costs of any improvements made or construction thereon by the
homesteader. (L. 1992 H.B. 1434 & 1490 § 5 subsec. 3 subdiv. (3))

In the sale or rental of the property, or any portion of such
property, no person shall be discriminated against because of such
person's race, color, religion, sex or national origin. (L. 1992 H.B.
1434 & 1490 § 5 subsec. 3 subdiv. (4))

Representatives of the urban homesteading agency, the
municipality, and where state or federal assistance is involved,
representatives of the federal and state governments, shall have access
to the property during normal business hours for the purpose of
inspecting compliance with the provisions of subsection 3 of section
99.881 and sections 99.884 to 99.888. (L. 1992 H.B. 1434 & 1490 § 5
subsec. 3 subdiv. (5))

The urban homesteading agency shall select from among applicants
for urban homestead program property those applicants who in the
determination of the agency can acquire the necessary financial and
technical resources to rehabilitate or construct, own and manage urban
homestead program property. Such property shall be offered to such
qualified applicants in accordance with the following priorities:

(1) Persons displaced by governmental activities declaring in writing
their intent to occupy the property for a period of not less than two
years;

(2) Low- and moderate-income families declaring in writing their intent
to occupy the property for a period of not less than two years;

(3) Families or persons providing the highest bid for the property;

(4) Level of consideration bid for the property by such persons or
families;

(5) Municipal housing authority formed pursuant to this chapter;

(6) Any other qualified applicant, provided the urban homesteading agency
has certified that no qualified urban homesteaders of higher priority
have applied. (L. 1992 H.B. 1434 & 1490 § 6)

1. An urban homesteading agency may provide financial assistance
to urban homesteaders for the purchase and rehabilitation of, or
construction on, urban homestead program property. Such financial
assistance may be in the form of grants or loans for a municipal housing
authority formed pursuant to this chapter, and in the form of loans for
other urban homesteaders. All such loans, if made by the urban
homesteading agency, shall be secured by a mortgage naming the
municipality as the mortgagee, provided if any such loans are made from
funds provided by the state or federal government or any other public or
private entity, the state or federal government or the public or private
agency may be the mortgagee, and provided further that a municipality may
assign any such mortgage to another entity.

2. An urban homesteading agency may utilize federal, state or other
public or private financial assistance, provided that any such assistance
requiring local financial participation shall be first approved by the
governing body of the municipality. (L. 1992 H.B. 1434 & 1490 § 7
subsecs. 1, 2)

An urban homesteading agency may recommend to the governing body
the abatement, in whole or in part, of real property taxes due on urban
homestead program property conveyed to an urban homesteader pursuant to
sections 99.875 to 99.912, or the deferral of such taxes for a period not
to exceed five years as provided in article X, section 7 of the
constitution. Such governing body may, by resolution, authorize such
abatement, except that the abatement shall only apply if the property is
owned for the entire tax year by the homesteader to which the homestead
agency originally transferred the property. (L. 1992 H.B. 1434 & 1490 § 7
subsec. 3)

Notwithstanding any other provision of sections 99.875 to 99.912,
an urban homesteading agency may accept, on behalf of the municipality,
any real property tendered to it without payment by the United States of
America, acting by and through the Secretary of Housing and Urban
Development, pursuant to the provisions of Section 810 of the Housing and
Community Development Act of 1974 (P.L. 93-383). Upon acquisition of real
property by the urban homesteading agency under this section, the urban
homesteading agency shall publish at least twice a notice in a newspaper
having general circulation in the municipality that such property is
available. Such notice shall include the estimated purchase price, the
qualifications of the applicant, procedures for bidding on the property
and the closing date for such bidding. The second notice shall be
published not less than two weeks before such closing date. In addition
thereto, the governing body of a municipality may, upon recommendation of
the urban homesteading agency, authorize conveyance of such real property
to an urban homesteader meeting the requirements of Subsection (b)(3) of
Section 810 of the Housing and Community Development Act of 1974 in
accordance with the requirements and procedures set forth in Section 810
of the Housing and Community Development Act of 1974 and any regulations
promulgated thereunder by the Secretary of Housing and Urban Development.
(L. 1992 H.B. 1434 & 1490 § 8)

The governing body of the municipality may create a fund to be
known as the "Urban Homesteading Fund". The fund shall be used on a
revolving basis to aid any urban homesteading agency in providing
financial assistance to urban homesteaders in the form of loans for the
purchase and rehabilitation of, or construction on, urban homestead
program property and to aid any urban homesteading agency in providing
financial assistance to a municipal housing authority in the form of
grants for the purchase and rehabilitation of, or construction on, urban
homestead program property. (L. 1992 H.B. 1434 & 1490 § 9 subsec. 1)

1. The governing body of the municipality may issue and sell
revenue bonds under the rights conferred by sections 99.875 to 99.912 for
the purposes of providing funding for the urban homesteading fund.

2. The municipality shall have the power to set and collect the fees and
charges that are necessary to pay debt service on bonds issued under the
provisions of sections 99.901 to 99.912 and to otherwise implement the
purposes of sections 99.875 to 99.912.

3. The revenue bonds shall be payable, both as to principal and interest,
solely from the revenues derived from mortgages or loans, as the case may
be, with respect to which the bonds are issued.

4. Any bonds issued under the provisions of sections 99.875 to 99.912
shall not be deemed to be an indebtedness of the state of Missouri or of
any political subdivision thereof, and shall not be deemed to be an
indebtedness within the meaning of any constitutional or statutory
limitation upon the incurring of indebtedness.

5. The proceeds of revenue bonds issued and sold under the provisions of
sections 99.875 to 99.912 shall not be used for refinancing of any
existing loan, unless such refinancing accompanies the substantial
rehabilitation of single-family residential housing for which an existing
loan is outstanding. (L. 1992 H.B. 1434 & 1490 § 9 subsecs. 2 to 6)

Revenue bonds issued pursuant to the provisions of sections
99.875 to 99.912 shall be of such denomination, shall bear such rate or
rates of interest not to exceed fourteen percent per annum, and shall
mature at such time or times, not exceeding thirty-five years from their
date of issue, as determined by the governing body of the municipality in
its ordinance directing the issuance of the bonds. The bonds may be
either serial bonds or term bonds and may be issued with or without
reservation of the right to call them for payment or redemption in
advance of their maturity, upon the giving of notice, and with or without
a covenant requiring the payment of a premium in the event of a call for
redemption prior to maturity. The bonds may be sold at such price or
prices as the issuing municipality shall determine, but at not less than
ninety-four percent of the principal amount thereof. Such bonds shall be
sold at public sale, or at private sale if the governing body of the
municipality determines it is in the best interest of the issuing
municipality to sell the bonds at private sale. The reason or reasons
that private sale is in the best interest of the issuing municipality
shall be set forth in the ordinance authorizing the private sale. The
decision of the governing body of the municipality shall be conclusive.
(L. 1992 H.B. 1434 & 1490 § 9 subsec. 7)

The bonds when issued and sold shall be negotiable instruments
within the meaning of chapter 400, RSMo, and the interest thereon shall
be exempt from any state or local income taxes under the laws of the
state of Missouri. The provisions of section 409.402, RSMo, to the
contrary notwithstanding, the bonds issued pursuant to the provisions of
sections 99.875 to 99.912 shall be subject to the provisions of sections
409.101 to 409.418, RSMo, the Missouri uniform securities act. (L. 1992
H.B. 1434 & 1490 § 9 subsec. 8)

The governing body of the municipality issuing bonds pursuant to
the provisions of sections 99.875 to 99.912 shall prescribe the form,
details and incidents of the bonds, and shall make such covenants as in
its judgment are advisable or necessary to properly secure the payment
thereof; but the form, details, incidents, and covenants shall not be
inconsistent with any of the provisions of sections 99.875 to 99.912. The
governing body of the municipality may prescribe more restrictive or
additional criteria for mortgages or loans qualifying for the purposes
specified in sections 99.875 to 99.912. (L. 1992 H.B. 1434 & 1490 § 9
subsec. 9)

The governing body of the municipality may prescribe in any
ordinance directing the issuance of bonds pursuant to the provisions of
sections 99.875 to 99.912 the terms and conditions under which the
holder, or any specified percentage of all holders, of any such bonds or
of any coupons representing interest accrued thereon may, by civil
action, compel the governing body of the municipality issuing such bonds
to perform all duties imposed upon it by the provisions of sections
99.875 to 99.912 and to enforce the performance of any and all of the
covenants made by the governing body of the municipality, in the issuance
of the bonds. (L. 1992 H.B. 1434 & 1490 § 9 subsec. 10)

1. Sections 99.915 to 99.1060 shall be known and may be cited as
the "Missouri Downtown and Rural Economic Stimulus Act".

2. Nothing in sections 99.915 to 99.1060 shall be construed to provide
any funding for the construction, maintenance, or operation of any sports
stadium, arena, or related facility which has as its intended purpose use
for spectator events which seats over ten thousand persons.

3. Insofar as the provisions of sections 99.915 to 99.1060 are
inconsistent with the provisions of any other law, the provisions of
sections 99.915 to 99.1060 shall be controlling. (L. 2003 H.B. 289)

Effective 7-7-03

As used in sections 99.915 to 99.980, unless the context clearly
requires otherwise, the following terms shall mean:

(1) "Authority", the downtown economic stimulus authority for a
municipality, created pursuant to section 99.921;

(2) "Baseline year", the calendar year prior to the adoption of an
ordinance by the municipality approving a development project; provided,
however, if economic activity taxes or state sales tax revenues, from
businesses other than any out-of-state business or businesses locating in
the development project area, decrease in the development project area in
the year following the year in which the ordinance approving a
development project is approved by a municipality, the baseline year may,
at the option of the municipality approving the development project, be
the year following the year of the adoption of the ordinance approving
the development project. When a development project area is located
within a county for which public and individual assistance has been
requested by the governor pursuant to Section 401 of the Robert T.
Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. 5121 et
seq., for an emergency proclaimed by the governor pursuant to section
44.100, RSMo, due to a natural disaster of major proportions that
occurred after May 1, 2003, but prior to May 10, 2003, and the
development project area is a central business district that sustained
severe damage as a result of such natural disaster, as determined by the
state emergency management agency, the baseline year may, at the option
of the municipality approving the development project, be the calendar
year in which the natural disaster occurred or the year following the
year in which the natural disaster occurred, provided that the
municipality adopts an ordinance approving the development project within
one year after the occurrence of the natural disaster;

(3) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property
by fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use;

(4) "Central business district", the area at or near the historic core
that is locally known as the "downtown" of a municipality that has a
median household income of sixty-two thousand dollars or less, according
to the last decennial census. In addition, at least fifty percent of
existing buildings in this area will have been built in excess of
thirty-five years prior or vacant lots that had prior structures built in
excess of thirty-five years prior to the adoption of the ordinance
approving the redevelopment plan. The historical land use emphasis of a
central business district prior to redevelopment will have been a mixed
use of business, commercial, financial, transportation, government, and
multifamily residential uses;

(5) "Collecting officer", the officer of the municipality responsible for
receiving and processing payments in lieu of taxes, economic activity
taxes other than economic activity taxes which are local sales taxes, and
other local taxes other than local sales taxes, and, for local sales
taxes and state taxes, the director of revenue;

(6) "Conservation area", any improved area within the boundaries of a
redevelopment area located within the territorial limits of a
municipality in which fifty percent or more of the structures in the area
have an age of thirty-five years or more, and such an area is not yet a
blighted area but is detrimental to the public health, safety, morals, or
welfare and may become a blighted area because of any one or more of the
following factors: dilapidation; obsolescence; deterioration; illegal use
of individual structures; presence of structures below minimum code
standards; abandonment; excessive vacancies; overcrowding of structures
and community facilities; lack of ventilation, light or sanitary
facilities; inadequate utilities; excessive land coverage; deleterious
land use or layout; depreciation of physical maintenance; and lack of
community planning;

(7) "Development area", an area designated by a municipality in respect
to which the municipality has made a finding that there exist conditions
which cause the area to be classified as a blighted area or a
conservation area, which area shall have the following characteristics:

(a) It includes only those parcels of real property directly and
substantially benefited by the proposed development plan;

(b) It can be renovated through one or more development projects;

(c) It is located in the central business district;

(d) It has generally suffered from declining population or property taxes
for the twenty-year period immediately preceding the area's designation
as a development area or has structures in the area fifty percent or more
of which have an age of thirty-five years or more;

(e) It is contiguous, provided, however that a development area may
include up to three noncontiguous areas selected for development
projects, provided that each noncontiguous area meets the requirements of
paragraphs (a) to (g) herein;

(f) The development area shall not exceed ten percent of the entire area
of the municipality; and

(g) The development area shall not include any property that is located
within the one hundred year flood plain, as designated by the Federal
Emergency Management Agency flood delineation maps, unless such property
is protected by a structure that is inspected and certified by the United
States Army Corps of Engineers.

This subdivision shall not apply to property within the one hundred year
flood plain if the buildings on the property have been or will be flood
proofed in accordance with the Federal Emergency Management Agency's
standards for flood proofing and the property is located in a home rule
city with more than one hundred fifty-one thousand five hundred but fewer
than one hundred fifty-one thousand six hundred inhabitants. Only those
buildings certified as being flood proofed in accordance with the Federal
Emergency Management Agency's standards for flood proofing by the
authority shall be eligible for the state sales tax increment and the
state income tax increment. Subject to the limitation set forth in this
subdivision, the development area can be enlarged or modified as provided
in section 99.951;

(8) "Development plan", the comprehensive program of a municipality to
reduce or eliminate those conditions which qualified a development area
as a blighted area or a conservation area, and to thereby enhance the tax
bases of the taxing districts which extend into the development area
through the reimbursement, payment, or other financing of development
project costs in accordance with sections 99.915 to 99.980 and through
the exercise of the powers set forth in sections 99.915 to 99.980. The
development plan shall conform to the requirements of section 99.942;

(9) "Development project", any development project within a development
area which constitutes a major initiative in furtherance of the
objectives of the development plan, and any such development project
shall include a legal description of the area selected for such
development project;

(10) "Development project area", the area located within a development
area selected for a development project;

(11) "Development project costs" include such costs to the development
plan or a development project, as applicable, which are expended on
public property, buildings, or rights-of-ways for public purposes to
provide infrastructure to support for a development project. Such costs
shall only be allowed as an initial expense which, to be recoverable,
must be included in the costs of a development plan or development
project, except in circumstances of plan amendments approved by the
Missouri development finance board and the department of economic
development. Such infrastructure costs include, but are not limited to,
the following:

(a) Costs of studies, appraisals, surveys, plans, and specifications;

(b) Professional service costs, including, but not limited to,
architectural, engineering, legal, marketing, financial, planning, or
special services;

(c) Property assembly costs, including, but not limited to, acquisition
of land and other property, real or personal, or rights or interests
therein, demolition of buildings, and the clearing and grading of land;

(d) Costs of rehabilitation, reconstruction, repair, or remodeling of
existing public buildings and fixtures;

(e) Costs of construction of public works or improvements;

(f) Financing costs, including, but not limited to, all necessary
expenses related to the issuance of obligations issued to finance all or
any portion of the infrastructure costs of one or more development
projects, and which may include capitalized interest on any such
obligations and reasonable reserves related to any such obligations;

(g) All or a portion of a taxing district's capital costs resulting from
any development project necessarily incurred or to be incurred in
furtherance of the objectives of the development plan, to the extent the
municipality by written agreement accepts and approves such
infrastructure costs;

(h) Payments to taxing districts on a pro rata basis to partially
reimburse taxes diverted by approval of a development project;

(i) State government costs, including, but not limited to, the reasonable
costs incurred by the department of economic development, the department
of revenue and the office of administration in evaluating an application
for and administering state supplemental downtown development financing
for a development project; and

(j) Endowment of positions at an institution of higher education which
has a designation as a Carnegie Research I University including any
campus of such university system, subject to the provisions of section
99.958.

In addition, economic activity taxes and payment in lieu of taxes may be
expended on or used to reimburse any reasonable or necessary costs
incurred or estimated to be incurred in furtherance of a development plan
or a development project;

(12) "Economic activity taxes", the total additional revenue from taxes
which are imposed by the municipality and other taxing districts, and
which are generated by economic activities within each development
project area, which are not related to the relocation of any out-of-state
business into the development project area, which exceed the amount of
such taxes generated by economic activities within such development
project area in the baseline year plus, in development project areas
where the baseline year is the year following the year in which the
development project is approved by the municipality pursuant to
subdivision (2) of this section, the total revenue from taxes which are
imposed by the municipality and other taxing districts which is generated
by economic activities within the development project area resulting from
the relocation of an out-of-state business or out-of-state businesses to
the development project area pursuant to section 99.919; but excluding
personal property taxes, taxes imposed on sales or charges for sleeping
rooms paid by transient guests of hotels and motels, licenses, fees, or
special assessments. If a retail establishment relocates within one year
from one facility to another facility within the same county and the
municipality or authority finds that the retail establishment is a direct
beneficiary of development financing, then for purposes of this
definition, the economic activity taxes generated by the retail
establishment shall equal the total additional revenues from taxes which
are imposed by the municipality and other taxing districts which are
generated by the economic activities within the development project area
which exceed the amount of taxes which are imposed by the municipality
and other taxing districts which are generated by economic activities
within the development project area generated by the retail establishment
in the baseline year;

(13) "Gambling establishment", an excursion gambling boat as defined in
section 313.800, RSMo, and any related business facility including any
real property improvements which are directly and solely related to such
business facility, whose sole purpose is to provide goods or services to
an excursion gambling boat and whose majority ownership interest is held
by a person licensed to conduct gambling games on an excursion gambling
boat or licensed to operate an excursion gambling boat as provided in
sections 313.800 to 313.850, RSMo;

(14) "Major initiative", a development project within a central business
district that:

(a) Promotes tourism, cultural activities, arts, entertainment,
education, research, arenas, multipurpose facilities, libraries, ports,
mass transit, museums, or conventions, the estimated cost of which is in
excess of the amount set forth below for the municipality, as applicable;
or

(b) Promotes business location or expansion, the estimated cost of which
is in excess of the amount set forth below for the municipality, and is
estimated to create at least as many new jobs as set forth below within
three years of such location or expansion: Population of Estimated New
Jobs Municipality Project Cost Created 300,000 or more $10,000,000 at
least 100 100,000 to 299,999 $5,000,000 at least 50 50,001 to 99,999
$1,000,000 at least 10 50,000 or less $500,000 at least 5;

(15) "Municipality", any city, village, incorporated town, or any county
of this state established on or prior to January 1, 2001, or a
census-designated place in any county designated by the county for
purposes of sections 99.915 to 99.1060;

(16) "New job", any job defined as a new job pursuant to subdivision (11)
of section 100.710, RSMo;

(17) "Obligations", bonds, loans, debentures, notes, special
certificates, or other evidences of indebtedness issued by the
municipality or authority, or other public entity authorized to issue
such obligations pursuant to sections 99.915 to 99.980 to carry out a
development project or to refund outstanding obligations;

(18) "Ordinance", an ordinance enacted by the governing body of any
municipality or an order of the governing body of such a municipal entity
whose governing body is not authorized to enact ordinances;

(19) "Other net new revenues", the amount of state sales tax increment or
state income tax increment or the combination of the amount of each such
increment as determined under section 99.960;

(20) "Out-of-state business", a business entity or operation that has
been located outside of the state of Missouri prior to the time it
relocates to a development project area;

(21) "Payment in lieu of taxes", those revenues from real property in
each development project area, which taxing districts would have received
had the municipality not adopted a development plan and the municipality
not adopted development financing, and which would result from levies
made after the time of the adoption of development financing during the
time the current equalized value of real property in such development
project area exceeds the total equalized value of real property in such
development project area during the baseline year until development
financing for such development project area expires or is terminated
pursuant to sections 99.915 to 99.980;

(22) "Special allocation fund", the fund of the municipality or its
authority required to be established pursuant to section 99.957 which
special allocation fund shall contain at least four separate segregated
accounts into which payments in lieu of taxes are deposited in one
account, economic activity taxes are deposited in a second account, other
net new revenues are deposited in a third account, and other revenues, if
any, received by the authority or the municipality for the purpose of
implementing a development plan or a development project are deposited in
a fourth account;

(23) "State income tax increment", up to fifty percent of the estimate of
the income tax due the state for salaries or wages paid to new employees
in new jobs at a business located in the development project area and
created by the development project. The estimate shall be a percentage of
the gross payroll which percentage shall be based upon an analysis by the
department of revenue of the practical tax rate on gross payroll as a
factor in overall taxable income;

(24) "State sales tax increment", up to one-half of the incremental
increase in the state sales tax revenue in the development project area.
In no event shall the incremental increase include any amounts
attributable to retail sales unless the Missouri development finance
board and the department of economic development are satisfied based on
information provided by the municipality or authority, and such entities
have made a finding that a substantial portion of all but a de minimus
portion of the sales tax increment attributable to retail sales is from
new sources which did not exist in the state during the baseline year.
The incremental increase for an existing facility shall be the amount by
which the state sales tax revenue generated at the facility exceeds the
state sales tax revenue generated at the facility in the baseline year.
The incremental increase in development project areas where the baseline
year is the year following the year in which the development project is
approved by the municipality pursuant to subdivision (2) of this section
shall be the state sales tax revenue generated by out-of-state businesses
relocating into a development project area. The incremental increase for
a Missouri facility which relocates to a development project area shall
be the amount by which the state sales tax revenue of the facility
exceeds the state sales tax revenue for the facility in the calendar year
prior to relocation;

(25) "State sales tax revenues", the general revenue portion of state
sales tax revenues received pursuant to section 144.020, RSMo, excluding
sales taxes that are constitutionally dedicated, taxes deposited to the
school district trust fund in accordance with section 144.701, RSMo,
sales and use taxes on motor vehicles, trailers, boats and outboard
motors and future sales taxes earmarked by law;

(26) "Taxing district's capital costs", those costs of taxing districts
for capital improvements that are found by the municipal governing bodies
to be necessary and to directly result from a development project; and

(27) "Taxing districts", any political subdivision of this state having
the power to levy taxes. (L. 2003 H.B. 289, A.L. 2004 S.B. 1331, A.L.
2005 H.B. 431)

Notwithstanding anything contained in sections 99.915 to 99.980
to the contrary, for development projects that result in the relocation
of an out-of-state business or out-of-state businesses to the development
project area, the portion of economic activity taxes, the state income
tax increment, the state sales tax increment and other net new revenues
generated by such out-of-state business or businesses shall be calculated
based upon the full amount of tax revenue generated by such out- of-state
business or out-of-state businesses without reduction due to revenues
generated in the baseline year. (L. 2003 H.B. 289)

Effective 7-7-03

Each municipality may create an authority to be known as a
"Downtown Economic Stimulus Authority"; provided, however:

(1) No such authority shall transact any business or exercise its powers
pursuant to sections 99.915 to 99.980 until and unless the governing body
of such municipality shall, in accordance with subsection 1 of section
99.948, approve, by ordinance, the exercise of the powers, functions, and
duties of an authority under sections 99.915 to 99.980;

(2) No governing body of a municipality shall adopt an ordinance pursuant
to subdivision (1) of this section unless it finds:

(a) That it would be in the interest of the public to consider the
establishment of a development area in accordance with sections 99.915 to
99.980;

(b) That the development of such a development area would be in the
interest of the public health, safety, morals, or welfare of the
residents of such municipality; and

(c) That it is anticipated that such a development area can be renovated
through a series of one or more development projects;

(3) Cities, villages, and census-designated places located wholly within
a county of the first classification with a population of more than one
million, according to the last decennial census, shall undertake downtown
development financing as allowed for pursuant to sections 99.915 to
99.980 through a countywide downtown economic stimulus authority. This
countywide authority shall have the same powers, functions, and duties of
an authority pursuant to sections 99.915 to 99.980. In addition, the
countywide downtown economic stimulus authority shall be responsible for
coordinating municipal downtown development financing activities in such
a way as to discourage fiscal competition and promote mutual benefits
among the affected local jurisdictions. Each countywide downtown economic
stimulus authority shall be governed by a board of commissioners. In any
county of the first classification with a population greater than one
million, the authority shall be comprised of fifteen members. Three
members shall be appointed by the county executive. Three members shall
be appointed by the county council to represent class A cities and three
members shall be appointed to represent class B cities, as both are
defined in section 66.620, RSMo. The remaining six members shall be
appointed by the county executive with the approval of the county
council, of which members at least three will represent school districts
within the county and the remainder shall represent other political
subdivisions levying ad valorem taxes in the county. The term of office
for each member shall be at the discretion of the appointing
jurisdictions. (L. 2003 H.B. 289)

Effective 7-7-03

Each authority created pursuant to section 99.921, except a
countywide downtown economic stimulus authority created pursuant to
subdivision (3) of section 99.921, shall be governed by a board of
commissioners. The number of commissioners serving on the board of each
authority shall be no less than five and no more than fourteen, which
number shall be established by ordinance of the municipality of which one
shall be a member of any local community development corporation, if one
exists in the municipality, and one shall be an African American business
owner in the municipality, if one exists. One of the initial
commissioners appointed pursuant to this subsection shall be appointed by
the school district or districts located within the development area for
a term of three years. The other initial commissioners appointed pursuant
to this subsection shall serve staggered terms of one, two, and three
years as determined by the mayor or chief executive officer of the
municipality at the time of their appointment. Thereafter, successor
commissioners shall be appointed by the mayor or chief executive officer
of the municipality or the school district or districts making the
initial appointments for a term of three years. All vacancies shall be
filled by appointment of the mayor or chief executive officer of the
municipality, or the school district or districts, for the unexpired
term. In addition to the commissioners appointed in accordance with this
subsection, a nonvoting advisor shall be appointed by the other taxing
districts located within the development area. (L. 2003 H.B. 289)

Effective 7-7-03

1. The powers of the authority created pursuant to section 99.921
shall be exercised by its board of commissioners. A majority of the
commissioners shall constitute a quorum of such board for the purpose of
conducting business and exercising the powers of the authority and for
all other purposes. Action may be taken by the board upon a vote of a
majority of the commissioners present in person or by teleconference,
unless in any case the bylaws of the authority shall require a larger
number. Meetings of the board of the authority may be held anywhere
within the municipality.

2. The commissioners of the authority annually shall elect a chair and
vice chair from among the commissioners; however, the first chair shall
be designated by the mayor for a term of one year. The mayor or chief
executive officer of the municipality shall serve as the co-chair of the
authority. The authority may employ an executive director, technical
experts, and such other officers, agents, and employees, permanent and
temporary, as it may require, and shall determine their qualifications,
duties, and compensation. For such legal services as it may require, an
authority may call upon the chief law officer of the municipality or may
employ its own counsel and legal staff.

3. A commissioner of an authority shall receive no compensation for his
or her services, but may receive the necessary expenses, including
traveling expenses, incurred in the discharge of his or her duties. Each
commissioner shall hold office until a successor has been appointed.

4. For inefficiency or neglect of duty or misconduct in office, a
commissioner of an authority may be removed by the mayor or chief
executive officer of the municipality. (L. 2003 H.B. 289)

Effective 7-7-03

1. In any suit, action, or proceeding involving the validity or
enforcement of or relating to any contract of an authority entered into
pursuant to sections 99.915 to 99.980, such authority shall be
conclusively deemed to have become established and authorized to transact
business and exercise its powers under sections 99.915 to 99.980 upon
proof of the adoption of the appropriate ordinance prescribed in section
99.921. Each such ordinance shall be deemed sufficient if it authorizes
the exercise of powers under sections 99.915 to 99.980 by the authority
and sets forth the findings of the municipality as required in
subdivision (2) of section 99.921.

2. A copy of such ordinance duly certified by the clerk of the
municipality shall be admissible in evidence in any suit, action, or
proceeding.

3. No lawsuit to set aside the creation of an authority, the approval of
a development plan, development project, development area or development
project area, or a tax levied pursuant to sections 99.915 to 99.980, or
to otherwise question the validity of the proceedings related thereto,
shall be brought after the expiration of ninety days from the effective
date of the ordinance or resolution in question. (L. 2003 H.B. 289)

Effective 7-7-03

1. The authority created pursuant to section 99.921 shall
constitute a public body corporate and politic, exercising public and
essential governmental functions.

2. A municipality or an authority created pursuant to section 99.921
shall have all the powers necessary or convenient to carry out and
effectuate the purposes and provisions of sections 99.915 to 99.980,
including the following powers in addition to others granted pursuant to
sections 99.915 to 99.980:

(1) To prepare or cause to be prepared and approved development plans and
development projects to be considered at public hearings in accordance
with sections 99.915 to 99.980 and to undertake and carry out development
plans and development projects which have been adopted by ordinance;

(2) To arrange or contract for the furnishing or repair, by any person or
agency, public or private, of services, privileges, streets, roads,
public utilities, or other facilities for or in connection with any
development project; and notwithstanding anything to the contrary
contained in sections 99.915 to 99.980 or any other provision of law, to
agree to any conditions that it may deem reasonable and appropriate
attached to federal financial assistance and imposed pursuant to federal
law relating to the determination of prevailing salaries or wages or
compliance with labor standards, in the undertaking or carrying out of
any development project, and to include in any contract let in connection
with any such development project provisions to fulfill such of the
conditions as it may deem reasonable and appropriate;

(3) Within a development area, to acquire by purchase, lease, gift,
grant, bequest, devise, obtain options upon, or otherwise acquire any
real or personal property or any interest therein, necessary or
incidental to a development project, all in the manner and at such price
as the municipality or authority determines is reasonably necessary to
achieve the objectives of a development plan;

(4) Within a development area, subject to provisions of section 99.936
with regard to the disposition of real property, to sell, lease,
exchange, transfer, assign, subdivide, retain for its own use, mortgage,
pledge, hypothecate, or otherwise encumber or dispose of any real or
personal property or any interest therein, all in the manner and at such
price and subject to any covenants, restrictions, and conditions as the
municipality or authority determines is reasonably necessary to achieve
the objectives of a development plan; to make any such covenants,
restrictions, or conditions as covenants running with the land, and to
provide appropriate remedies for any breach of any such covenants,
restrictions, or conditions, including the right in the municipality or
authority to terminate such contracts and any interest in the property
created pursuant thereto;

(5) Within a development area, to clear any area by demolition or removal
of existing buildings and structures;

(6) To install, repair, construct, reconstruct, or relocate streets,
utilities, and site improvements as necessary or desirable for the
preparation of a development area for use in accordance with a
development plan;

(7) Within a development area, to fix, charge, and collect fees, rents,
and other charges for the use of any real or personal property, or any
portion thereof, in which the municipality or authority has any interest;

(8) To accept grants, guarantees, and donations of property, labor, or
other things of value from any public or private source for purposes of
implementing a development plan;

(9) In accordance with section 99.936, to select one or more developers
to implement a development plan, or one or more development projects, or
any portion thereof;

(10) To charge as a development project cost the reasonable costs
incurred by the municipality or authority, the department of economic
development, the Missouri development finance board, or the department of
revenue in evaluating, administering, or implementing the development
plan or any development project;

(11) To borrow money and issue obligations in accordance with sections
99.915 to 99.980 and provide security for any such loans or obligations;

(12) To insure or provide for the insurance of any real or personal
property or operations of the municipality or authority against any risks
or hazards, including the power to pay premiums on any such insurance;
and to enter into any contracts necessary to effectuate the purposes of
sections 99.915 to 99.980;

(13) Within a development area, to renovate, rehabilitate, own, operate,
construct, repair, or improve any improvements, buildings, parking
garages, fixtures, structures, and other facilities;

(14) To invest any funds held in reserves or sinking funds, or any funds
not required for immediate disbursement, in property or securities in
which savings banks may legally invest funds subject to their control; to
redeem obligations at the redemption price established therein or to
purchase obligations at less than redemption price, all obligations so
redeemed or purchased to be canceled;

(15) To borrow money and to apply for and accept advances, loans, grants,
contributions, and any other form of financial assistance from the
federal government, the state, county, municipality, or other public body
or from any sources, public or private, for the purposes of implementing
a development plan, to give such security as may be required and to enter
into and carry out contracts in connection therewith. A municipality or
authority, notwithstanding the provisions of any other law, may include
in any contract for financial assistance with the federal government for
a project such conditions imposed pursuant to federal law as the
municipality or authority may deem reasonable and appropriate and which
are not inconsistent with the purposes of sections 99.915 to 99.980;

(16) To incur development project costs and make such expenditures as may
be necessary to carry out the purposes of sections 99.915 to 99.980; and
to make expenditures from funds obtained from the federal government
without regard to any other laws pertaining to the making and approval of
appropriations and expenditures;

(17) To loan the proceeds of obligations issued pursuant to sections
99.915 to 99.980 for the purpose of providing for the purchase,
construction, extension, or improvement of public infrastructure related
to a development project by a developer pursuant to a development
contract approved by the municipality or authority in accordance with
subdivision (2) of section 99.936;

(18) To declare any funds, or any portion thereof, in the special
allocation fund to be excess funds, so long as such excess funds have not
been pledged to the payment of outstanding obligations or outstanding
development project costs, are not necessary for the payment of
development project costs incurred or anticipated to be incurred, and are
not required to pay baseline state sales taxes and baseline state
withholding taxes to the director of revenue. Any such funds deemed to be
excess shall be disbursed in the manner of surplus funds as provided in
section 99.965;

(19) To pledge or otherwise expend funds deposited to the special
allocation fund, or any portion thereof, for the payment or reimbursement
of development project costs incurred by the authority, the municipality,
a developer selected by the municipality or authority, or any other
entity with the consent of the municipality or authority; to pledge or
otherwise expend funds deposited to the special allocation fund, or any
portion thereof, or to mortgage or otherwise encumber its property, or
any portion thereof, for the payment of obligations issued to finance
development project costs; provided, however, any such pledge or
expenditure of economic activity taxes or other net new revenues shall be
subject to annual appropriation by the municipality; and

(20) To exercise all powers or parts or combinations of powers necessary,
convenient, or appropriate to undertake and carry out development plans
and any development projects and all the powers granted pursuant to
sections 99.915 to 99.980, excluding powers of eminent domain.

3. If any member of the governing body of the municipality, a
commissioner of the authority, or an employee or consultant of the
municipality or authority, involved in the planning and preparation of a
development project, owns or controls an interest, direct or indirect, in
any property included in a development project area, the individual shall
disclose the same in writing to the clerk of the municipality, and shall
also so disclose the dates, terms, and conditions of any disposition of
any such interest, which disclosures shall be acknowledged by the
governing body of the municipality and entered upon the minutes books of
the governing body of the municipality. If an individual holds such an
interest, then that individual shall refrain from any further official
involvement in regard to a development project and from voting on any
matter pertaining to such development project or communicating with other
commissioners or members of the authority or the municipality concerning
any matter pertaining to such development project. Furthermore, subject
to the succeeding sentence, no such member, commissioner, employee, or
consultant shall acquire any interest, direct or indirect, in any
property in a development project area or proposed development project
area, after either such individual obtains knowledge of a development
project, or first public notice of such development project, or
development project area pursuant to subsection 2 of section 99.951,
whichever first occurs. At any time after one year from the adoption of
an ordinance designating a development project area, any commissioner may
acquire an interest in real estate located in a development project area
so long as any such commissioner discloses such acquisition and refrains
from voting on any matter related to the development project area in
which the property acquired by such commissioner is located.

4. An authority created pursuant to section 99.921 shall have the
following powers in addition to others granted pursuant to sections
99.915 to 99.980:

(1) To sue and to be sued; to have a seal and to alter the same at the
authority's pleasure; to have perpetual succession; to make and execute
contracts and other instruments necessary or convenient to the exercise
of the powers of the authority; and to make and from time to time amend
and repeal bylaws, rules, and regulations, not inconsistent with sections
99.915 to 99.980, to carry out the provisions of sections 99.915 to
99.980;

(2) To delegate to a municipality or other public body any of the powers
or functions of the authority with respect to the planning or undertaking
of a development project, and any such municipality or public body is
hereby authorized to carry out or perform such powers or functions for
the authority;

(3) To receive and exercise powers delegated by any authority, agency, or
agent of a municipality created pursuant to this chapter or chapter 353,
RSMo, excluding powers of eminent domain.

5. Any home rule city with more than four hundred thousand inhabitants
and located in more than one county, any city not within a county, and
any county with a charter form of government and with more than one
million inhabitants shall approve a disadvantaged business enterprise
program to be implemented by the downtown economic stimulus authority.
The program shall require all businesses, vendors, and contractors
working on projects undertaken by the authority to ensure enforcement of
an equal opportunity employment plan and a minority and women-owned
business program that is based on population and availability that
contains specific worker ethnicity goals for each such business, vendor,
and contractor, in accordance with applicable state and federal laws,
rules, regulations, and orders. (L. 2003 H.B. 289)

Effective 7-7-03

Real property which is acquired by a municipality or authority in
a development project area may be disposed of as follows:

(1) Within a development project area, the authority may sell, lease,
exchange, or otherwise transfer real property, including land,
improvements, and fixtures, or any interest therein, to any developer
selected for a development project, or any portion thereof, in accordance
with the development plan, subject to such covenants, conditions, and
restrictions as may be deemed to be in the public interest or to carry
out the purposes of sections 99.915 to 99.980. Such real property shall
be sold, leased, or transferred at its fair market value for uses in
accordance with the development plan; provided that such fair market
value may be less than the cost of such property to the municipality or
authority. In determining the fair market value of real property for uses
in accordance with a development plan, the municipality or authority
shall take into account and give consideration to the uses and purposes
required by the development plan; the restrictions upon, and the
covenants, conditions, and obligations assumed by the developer of such
property; the objectives of the development plan; and such other matters
as the municipality or authority shall specify as being appropriate. In
fixing rental and sale prices, a municipality or authority shall give
consideration to appraisals of the property for such uses made by experts
employed by the municipality or authority;

(2) The municipality or authority shall, by public notice published in a
newspaper having a general circulation in a development area, prior to
selecting one or more developers for any development project, or any
portion thereof, invite proposals from, and make available all pertinent
information to, private developers or any persons interested in
undertaking the development of such development project, or any portion
thereof. Such notice shall be published at least once each week during
the two weeks preceding the selection of a developer, shall identify the
area of the development project or development projects, or any portion
thereof, for which one or more developers are to be selected, and shall
state that such further information as it is available may be obtained at
the office of the municipality or authority. The municipality or
authority shall consider all proposals and the financial and legal
ability of the prospective developers to carry out their proposals. The
municipality or authority may negotiate and enter into one or more
contracts with any developer selected for the development of any such
area for the development of such area by such developer in accordance
with a development plan or for the sale or lease of any real property to
any such developer in any such area for the purpose of developing such
property in accordance with the development plan. The municipality or
authority may enter into any such contract as it deems to be in the
public interest and in furtherance of the purposes of sections 99.915 to
99.980; provided that the municipality or authority has, not less than
ten days prior thereto, notified the governing body in writing of its
intention to enter into such contract. Thereafter, the municipality or
authority may execute such contract in accordance with the provisions of
subdivision (1) of this section and deliver deeds, leases, and other
instruments and take all steps necessary to effectuate such contract. In
its discretion, the municipality or authority may, in accordance with the
provisions of this subdivision, dispose of any real property in an area
selected for a development project, or any portion thereof, to private
developers for development under such reasonable competitive bidding
procedures as it shall prescribe, subject to the provisions of
subdivision (1) of this section;

(3) In carrying out a development project, the authority may:

(a) Convey to the municipality such real property as, in accordance with
the development plan, is to be dedicated as public right-of-way for
streets, sidewalks, alleys, or other public ways, this power being
additional to and not limiting any and all other powers of conveyance of
property to municipalities expressed, generally or otherwise, in sections
99.915 to 99.980;

(b) Grant servitudes, easements, and rights-of-way for public utilities,
sewers, streets, and other similar facilities, in accordance with the
development plan; and

(c) Convey to the municipality or other appropriate public body such real
property as, in accordance with the development plan, is to be used for
parks, schools, public buildings, facilities, or other public purposes;

(4) The municipality or authority may operate and maintain real property
in the development area pending the disposition or development of the
property in accordance with a development plan, without regard to the
provisions of subdivisions (1) and (2) of this section, for such uses and
purposes as may be deemed desirable even though not in conformity with
the development plan. (L. 2003 H.B. 289)

Effective 7-7-03

1. Any home rule city with more than four hundred thousand
inhabitants and located in more than one county, any county with a
charter form of government and with more than one million inhabitants,
any city not within a county, and any county of the first classification
with more than one hundred thirty-five thousand four hundred but less
than one hundred thirty-five thousand five hundred inhabitants and any
municipality located therein shall by ordinance establish a fund for the
purpose of providing funds to community development corporations in such
city for comprehensive programs within such city to stimulate economic
development, housing, and other public benefits leading to the
development of economically sustainable neighborhoods or communities,
such fund to be known as the "Community Development Corporation Revolving
Fund". Notwithstanding section 33.080, RSMo, to the contrary, any moneys
remaining in the fund at the end of the biennium shall not revert to the
credit of the general revenue fund.

2. The community development corporation revolving fund shall be
administered by a community development corporation revolving fund board,
which shall consist of six members appointed by the chief elected
official of such municipality or county, of which one shall be a member
of the economic stimulus authority, three shall be members of the local
regional community development association, and two shall be members of
local business or financial organizations. The initial members shall
serve staggered terms of one, two, and three years as determined by the
chief elected official at the time of appointment. Thereafter, successor
members shall be appointed by the chief elected official for a term of
three years, and shall hold office until a successor is appointed. Any
member may be removed by the chief elected official for inefficiency,
neglect of duty, or misconduct. All vacancies shall be filled by
appointment of the chief elected official for the unexpired term. No
member shall receive compensation for the member's services, but shall be
entitled to necessary and reasonable expenses, including travel expenses,
incurred in the discharge of the member's duties. The chief elected
official shall appoint the chair of the board, and the members of the
board shall elect officers from the membership of the board.

3. Beginning January 1, 2004, up to five percent of the state sales tax
increment portion of other net new revenues generated by development
projects certified for state supplemental downtown development financing
pursuant to sections 99.915 to 99.980, but not being used for state
supplemental downtown development financing, may be available for
appropriation by the general assembly from the state supplemental
downtown development fund, to the general revenue fund, for the purpose
of providing grants to cities or counties as set forth herein. A city or
county described in subsection 1 of this section may, upon application to
the department of economic development, receive a grant for deposit into
the city or county community development corporation revolving fund for
the purposes of funding a community development corporation revolving
fund program pursuant to subsection 4 of this section. Any city or county
otherwise eligible shall not be denied participation in the grant program
due to a lack of projects certified for state supplemental downtown
development financing, but such grants shall be limited to incremental
revenues generated from certified projects in any city or county
described in subsection 1 of this section. At no time shall the sum of
the grants exceed one million five hundred thousand dollars annually.

4. From money granted to a city or county described in subsection 1 of
this section for deposit in the community development corporation
revolving fund, the city or county, through the community development
corporation revolving fund board, shall provide grants and forgivable
loans to community development corporations in such municipality for
community economic development activities implemented by such
corporations. The board shall give special funding consideration to
collaborations on community development projects between developers
organized for profit and nonprofit developers. All expenses for such
projects shall be paid for out of the community development corporation
revolving fund. Any money appropriated, and any other money made
available by gift, grant, bequest, contribution, or otherwise to carry
out the purposes of this section, and all interest earned on, and income
generated from, money in the fund shall be paid to, and deposited in, the
community development corporation revolving fund. (L. 2003 H.B. 289)

Effective 7-7-03

1. A development plan shall set forth in writing a general
description of the program to be undertaken to accomplish the development
projects and related objectives and shall include, but need not be
limited to:

(1) The name, street and mailing address, and phone number of the mayor
or chief executive officer of the municipality;

(2) The street address of the development site;

(3) The three-digit North American Industry Classification System number
or numbers characterizing the development project;

(4) The estimated development project costs;

(5) The anticipated sources of funds to pay such development project
costs;

(6) Evidence of the commitments to finance such development project costs;

(7) The anticipated type and term of the sources of funds to pay such
development project costs;

(8) The anticipated type and terms of the obligations to be issued;

(9) The most recent equalized assessed valuation of the property within
the development project area;

(10) An estimate as to the equalized assessed valuation after the
development project area is developed in accordance with a development
plan;

(11) The general land uses to apply in the development area;

(12) The total number of individuals employed in the development area,
categorized by full-time, part-time, and temporary positions;

(13) The total number of full-time equivalent positions in the
development area;

(14) The current gross wages, state income tax withholdings, and federal
income tax withholdings for individuals employed in the development area;

(15) The total number of individuals employed in this state by the
corporate parent of any business benefiting from public expenditures in
the development area, and all subsidiaries thereof, as of December
thirty-first of the prior fiscal year, categorized by full-time,
part-time, and temporary positions;

(16) The number of new jobs to be created by any business benefiting from
public expenditures in the development area, categorized by full-time,
part-time, and temporary positions;

(17) The average hourly wage to be paid to all current and new employees
at the project site, categorized by full-time, part-time, and temporary
positions;

(18) For project sites located in a metropolitan statistical area, as
defined by the federal Office of Management and Budget, the average
hourly wage paid to nonmanagerial employees in this state for the
industries involved at the project, as established by the United States
Bureau of Labor Statistics;

(19) For project sites located outside of metropolitan statistical areas,
the average weekly wage paid to nonmanagerial employees in the county for
industries involved at the project, as established by the United States
Department of Commerce;

(20) A list of other community and economic benefits to result from the
project;

(21) A list of all development subsidies that any business benefiting
from public expenditures in the development area has previously received
for the project, and the name of any other granting body from which such
subsidies are sought;

(22) A list of all other public investments made or to be made by this
state or units of local government to support infrastructure or other
needs generated by the project for which the funding pursuant to this
act* is being sought;

(23) A statement as to whether the development project may reduce
employment at any other site, within or without of the state, resulting
from automation, merger, acquisition, corporate restructuring,
relocation, or other business activity;

(24) A statement as to whether or not the project involves the relocation
of work from another address and if so, the number of jobs to be
relocated and the address from which they are to be relocated;

(25) A list of businesses that are competing with the business benefiting
from the development plan in the county containing the development area
and in each contiguous county;

(26) A market study for the development area; and

(27) A certification by the chief officer of the applicant as to the
accuracy of the development plan.

2. For any home rule city with more than four hundred thousand
inhabitants and located in more than one county, for any county with a
charter form of government and with more than one million inhabitants,
any county of the first classification with more than one hundred
thirty-five thousand four hundred but less than one hundred thirty-five
thousand five hundred inhabitants and any municipality within the county,
and for any city not within a county, the authority shall be required in
connection with the designation of the development area, development
projects, and development project areas, to work with local community
development corporations, as defined in subsection 3 of section 135.400,
RSMo, with a goal that over the term of the development plan five percent
of the funds generated pursuant to section 99.957 will be expended in
connection with such projects through the community development revolving
fund created pursuant to section 99.939.

3. The development plan may be adopted by a municipality in reliance on
findings that a reasonable person would believe:

(1) The development area on the whole is a blighted area or a
conservation area. Such a finding shall include, but not be limited to, a
detailed description of the factors that qualify the development area or
project pursuant to this subsection, a written statement, signed by
members of the governing body of the municipality or authority confirming
that the information has been independently reviewed by the members of
the governing body of the municipality or authority with due diligence to
confirm its accuracy, truthfulness, and completeness. The study shall be
of sufficient specificity to allow representatives of the authority or
the municipality to conduct investigations deemed necessary in order to
confirm its findings;

(2) The development area has not been subject to growth and development
through investment by private enterprise and would not reasonably be
anticipated to be developed without the implementation of one or more
development projects and the adoption of local and state development
financing;

(3) The development plan conforms to the comprehensive plan for the
development of the municipality as a whole;

(4) The estimated dates, which shall not be more than twenty-five years
from the adoption of the ordinance approving any development project, of
the completion of such development project and retirement of obligations
incurred to finance development project costs have been stated, provided
that no ordinance approving a development project shall be adopted later
than fifteen years from the adoption of the ordinance approving the
development plan and provided that no property for a development project
shall be acquired by eminent domain later than ten years from the
adoption of the ordinance approving such development plan;

(5) In the event any business or residence is to be relocated as a direct
result of the implementation of the development plan, a plan has been
developed for relocation assistance for businesses and residences;

(6) A cost-benefit analysis showing the economic impact of the
development plan on the municipality and school districts that are at
least partially within the boundaries of the development area. The
analysis shall show the impact on the economy if the development projects
are not built pursuant to the development plan under consideration. The
cost- benefit analysis shall include a fiscal impact study on each
municipality and school district which is at least partially within the
boundaries of the development area, and sufficient information from the
authority to evaluate whether each development project as proposed is
financially feasible;

(7) The development plan does not include the initial development or
redevelopment of any gambling establishment; and

(8) An economic feasibility analysis including a pro forma financial
statement indicating the return on investment that may be expected
without public assistance. The financial statement shall detail any
assumptions made, a pro forma statement analysis demonstrating the amount
of assistance required to bring the return into a range deemed attractive
to private investors, which amount shall not exceed the estimated
reimbursable project costs. (L. 2003 H.B. 289)

Effective 7-7-03

*"This act" (H.B. 289, 2003) contained numerous sections. Consult
Disposition of Sections table for a definitive listing.

In the event a municipality desires to designate a development
area located in whole or in part outside the incorporated boundaries of
the municipality and within the boundaries of another municipality, such
municipality shall first obtain the permission of the governing body of
such other municipality. (L. 2003 H.B. 289)

Effective 7-7-03

1. A municipality which has created an authority pursuant to
section 99.921 may:

(1) Approve by ordinance the exercise by the authority of the powers,
functions, and duties of the authority under sections 99.915 to 99.980;
and

(2) After adopting an ordinance in accordance with subdivision (1) of
this subsection and after receipt of recommendations from the authority
in accordance with subsection 3 of this section, by ordinance, designate
development areas adopt the development plans and development projects,
designate a development project area for each development project
adopted, and adopt development financing for each such development
project area. No development plan may be adopted until the development
area is designated. No development project shall be adopted until the
development plan is adopted and the development project area for each
development project shall be designated at the time of adopting the
development project.

2. A municipality may authorize an authority created pursuant to section
99.921 to exercise all powers and perform all functions of a
transportation development district pursuant to sections 238.200 to
238.275, RSMo, within a development area.

3. The municipality or authority shall hold public hearings and provide
notice pursuant to sections 99.957 and 99.960. Within ten days following
the completion of any such public hearing, the authority shall vote on
and shall make recommendation to the governing body of the municipality
with regard to any development plan, development projects, designation of
a development area or amendments thereto which were proposed at such
public hearing. (L. 2003 H.B. 289)

Effective 7-7-03

1. Prior to the adoption of the ordinance designating a
development area, adopting a development plan, or approving a development
project, the municipality or authority shall fix a time and place for a
public hearing and notify each taxing district located wholly or
partially within the boundaries of the proposed development area or
development project area affected. Such notice shall comply with the
provisions of subsection 2 of this section. At the public hearing any
interested person or affected taxing district may file with the
municipality or authority written objections to, or comments on, and may
be heard orally in respect to, any issues regarding the plan or issues
embodied in the notice. The municipality or authority shall hear and
consider all protests, objections, comments, and other evidence presented
at the hearing. The hearing may be continued to another date without
further notice other than a motion to be entered upon the minutes fixing
the time and place of the subsequent hearing. Prior to the conclusion of
the hearing, changes may be made in the development plan, development
project, development area or development project area, provided that
written notice of such changes is available at the public hearing. After
the public hearing but prior to the adoption of an ordinance designating
a development area, adopting a development plan or approving a
development project, changes may be made to any such proposed development
plan, development project, development area, or development project area
without a further hearing, if such changes do not enlarge the exterior
boundaries of the development area, and do not substantially affect the
general land uses established in a development plan or development
project, provided that notice of such changes shall be given by mail to
each affected taxing district and by publication in a newspaper of
general circulation in the development area or development project area,
as applicable, not less than ten days prior to the adoption of the
changes by ordinance. After the adoption of an ordinance designating the
development area, adopting a development plan, approving a development
project, or designating a development project area, no ordinance shall be
adopted altering the exterior boundaries of the development area or a
development project area affecting the general land uses established
pursuant to the development plan or the general nature of a development
project without holding a public hearing in accordance with this section.
One public hearing may be held for the simultaneous consideration of a
development area, development plan, development project, or development
project area.

2. Notice of the public hearing required by this section shall be given
by publication and mailing. Notice by publication shall be given by
publication at least twice, the first publication to be not more than
thirty days and the second publication to be not more than ten days prior
to the hearing, in a newspaper of general circulation in the proposed
development area or development project area, as applicable, and in two
minority newspapers, if such newspapers are published in the
municipality, of which one shall be published in the Spanish language, if
such a newspaper is published in the municipality. Notice by mailing
shall be given by depositing such notice in the United States mail by
certified mail addressed to the person or persons in whose name the
general taxes for the last preceding year were paid on each lot, block,
tract, or parcel of land lying within the proposed development area or
development project area, as applicable, which is to be subjected to the
payment or payments in lieu of taxes and economic activity taxes pursuant
to section 99.957. Such notice shall be mailed not less than ten working
days prior to the date set for the public hearing. In the event taxes for
the last preceding year were not paid, the notice shall also be sent to
the persons last listed on the tax rolls within the preceding three years
as the owners of such property.

3. The notices issued pursuant to this section shall include the
following:

(1) The time and place of the public hearing;

(2) The general boundaries of the proposed development area or
development project area, as applicable, by street location, where
possible;

(3) A statement that all interested persons shall be given an opportunity
to be heard at the public hearing;

(4) A description of the development plan and the proposed development
projects and a location and time where the entire development plan or
development projects proposed may be reviewed by any interested party;

(5) An estimate of other net new revenues;

(6) A statement that development financing involving tax revenues and
payments in lieu of taxes is being sought for the project and an estimate
of the amount of local development financing that will be requested, if
applicable; and

(7) Such other matters as the municipality or authority may deem
appropriate.

4. Not less than forty-five days prior to the date set for the public
hearing, the municipality or authority shall give notice by mail as
provided in subsection 2 of this section to all taxing districts with
jurisdiction over taxable property in the development area or development
project area, as applicable, and in addition to the other requirements
pursuant to subsection 3 of this section, the notice shall include an
invitation to each taxing district to submit comments to the municipality
or authority concerning the subject matter of the hearing prior to the
date of the hearing.

5. A copy of any and all hearing notices required by this section shall
be submitted by the municipality or authority to the director of the
department of economic development and the date such notices were mailed
or published, as applicable. (L. 2003 H.B. 289)

Effective 7-7-03

1. For the purpose of financing development project costs,
obligations may be issued by the municipality, or, at the request of the
municipality, by the authority or any other political subdivision
authorized to issue bonds, but in no event by the state, to pay or
reimburse development project costs. Such obligations, when so issued,
shall be retired in the manner provided in the ordinance or resolution
authorizing the issuance of such obligations.

2. Obligations issued pursuant to sections 99.915 to 99.980 may be issued
in one or more series bearing interest at such rate or rates as the
issuing entity shall determine by ordinance or resolution. Such
obligations shall bear such date or dates, be in such denomination, carry
such registration privileges, be executed in such manner, be payable in
such medium of payment at such place or places, contain such covenants,
terms, and conditions, and be subject to redemption as such ordinance or
resolution shall provide. Obligations issued pursuant to sections 99.915
to 99.980 may be sold at public or private sale at such price as shall be
determined by the issuing entity and shall state that obligations issued
pursuant to sections 99.915 to 99.980 are special obligations payable
solely from the funds specifically pledged. No referendum approval of the
electors shall be required as a condition to the issuance of obligations
pursuant to sections 99.915 to 99.980.

3. In the event the obligations contain a recital that they are issued
pursuant to sections 99.915 to 99.980, such recital shall be conclusive
evidence of their validity and of the regularity of their issuance.

4. Neither the municipality, the authority, or any other entity issuing
such obligations, or the members, commissioners, directors, or the
officers of any such entities nor any person executing any obligation
shall be personally liable for such obligation by reason of the issuance
thereof. The obligations issued pursuant to sections 99.915 to 99.980
shall not be a general obligation of the state, the municipality, or any
political subdivision thereof, nor in any event shall such obligation be
payable out of any funds or properties other than those specifically
pledged as security for such obligations. The obligations shall not
constitute indebtedness within the meaning of any constitutional,
statutory, or charter debt limitation or restriction.

5. Obligations issued pursuant to sections 99.915 to 99.980 may be issued
to refund, in whole or in part, obligations theretofore issued by such
entity pursuant to the authority of sections 99.915 to 99.980, whether at
or prior to maturity; provided, however, that the last maturity of the
refunding obligations shall not be expressed to mature later than the
last maturity date of the obligations to be refunded.

6. In the event a municipality or authority issues obligations under home
rule powers or other legislative authority, the proceeds of which are
pledged to pay for development project costs, the municipality may retire
such obligations from funds in the special allocation fund in amounts and
in such manner as if such obligations had been issued pursuant to the
provisions of sections 99.915 to 99.980.

7. State supplemental downtown development financing shall not be used
for retiring or refinancing debt or obligations on a previously publicly
financed redevelopment project without express approval from the director
of the department of economic development and the Missouri development
finance board. No approval shall be granted unless the application for
state supplemental downtown development financing contains development
projects that are new projects which were not a part of the development
projects for which there is existing public debt or obligations. (L. 2003
H.B. 289)

Effective 7-7-03

1. A municipality, after designating a development area, adopting
a development plan, and adopting any development project in conformance
with the procedures of sections 99.915 to 99.980, may adopt development
financing for the development project area selected for any such
development project by passing an ordinance. Upon the adoption of the
first of any such ordinances, the municipality shall establish, or shall
direct the authority to establish, a special allocation fund for the
development area.

2. Immediately upon the adoption of a resolution or ordinance adopting
development financing for a development project area pursuant to
subsection 1 of this section, the county assessor shall determine the
total equalized assessed value of all taxable real property within such
development project area by adding together the most recently ascertained
equalized assessed value of each taxable lot, block, tract, or parcel of
real property within such development project area as of the date of the
adoption of such resolution or ordinance and shall provide to the clerk
of the municipality written certification of such amount as the total
initial equalized assessed value of the taxable real property within such
development project area.

3. In each of the twenty-five calendar years following the adoption of an
ordinance adopting development financing for a development project area
pursuant to subsection 1 of this section unless and until development
financing for such development project area is terminated by ordinance of
the municipality, the ad valorem taxes, and payments in lieu of taxes, if
any, arising from the levies upon taxable real property in such
development project area by taxing districts at the tax rates determined
in the manner provided in section 99.968 shall be divided as follows:

(1) That portion of taxes, penalties, and interest levied upon each
taxable lot, block, tract, or parcel of real property in such development
project area which is attributable to the initial equalized assessed
value of each such taxable lot, block, tract, or parcel of real property
in such development project area as certified by the county assessor in
accordance with subsection 2 of this section shall be allocated to and,
when collected, shall be paid by the collecting authority to the
respective affected taxing districts in the manner required by law in the
absence of the adoption of development financing;

(2) Payments in lieu of taxes attributable to the increase in the current
equalized assessed valuation of each taxable lot, block, tract, or parcel
of real property in the development project area and any applicable
penalty and interest over and above the initial equalized assessed value
of each such taxable lot, block, tract, or parcel of real property in
such development project area as certified by the county assessor in
accordance with subsection 2 of this section shall be allocated to and,
when collected, shall be paid to the collecting officer of the
municipality who shall deposit such payment in lieu of taxes into a
separate segregated account for payments in lieu of taxes within the
special fund. Payments in lieu of taxes which are due and owing shall
constitute a lien against the real property from which such payments in
lieu of taxes are derived and shall be collected in the same manner as
real property taxes, including the assessment of penalties and interest
where applicable. The lien of payments in lieu of taxes may be foreclosed
in the same manner as the lien of real property taxes. No part of the
current equalized assessed valuation of each taxable lot, block, tract,
or parcel of property in any such development project area attributable
to any increase above the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property in such development
project area as certified by the county assessor in accordance with
subsection 2 of this section shall be used in calculating the general
state school aid formula provided for in section 163.031, RSMo, until
development financing for such development project area expires or is
terminated in accordance with sections 99.915 to 99.980;

(3) For purposes of this section, "levies upon taxable real property in
such development area by taxing districts" shall not include the blind
pension fund tax levied under the authority of section 38(b), article
III, of the Missouri Constitution, the merchants' and manufacturers'
inventory replacement tax levied under the authority of subsection 2 of
section 6, article X of the Missouri Constitution, the desegregation
sales tax, or the conservation taxes.

4. In each of the twenty-five calendar years following the adoption of an
ordinance or resolution adopting development financing for a development
project area pursuant to subsection 1 of this section unless and until
development financing for such development project area is terminated in
accordance with sections 99.915 to 99.980, fifty percent of the economic
activity taxes from such development project area shall be allocated to,
and paid by the collecting officer of any such economic activity tax to,
the treasurer or other designated financial officer of the municipality,
who shall deposit such funds in a separate segregated account for
economic activity taxes within the special allocation fund. Provided
however, in any county, the governing body of the county may, by
resolution, exclude any portion of any countywide sales tax of such
county.

5. In no event shall a municipality collect and deposit economic activity
taxes in the special allocation fund unless the developing project has
been approved for state supplemental downtown development financing
pursuant to section 99.960. (L. 2003 H.B. 289)

Effective 7-7-03

If a development plan includes an endowment of positions at an
institution of higher education which has a designation as a Carnegie
Research I University, including any campus of such university system,
such endowment must first be funded with a private donation to the
institution of higher education in accordance with its endowment policy
in an amount of at least one-half of the total amount of the endowment.
Thereafter, the remaining portion of matching public for such endowment
may be made either from the local economic activity taxes or from a
disbursement made from the state supplemental downtown development fund.
Any disbursement from the state supplemental downtown development fund
for purposes of funding an endowment pursuant to the provisions of this
section shall be transferred to general revenue for appropriation of the
endowment. (L. 2003 H.B. 289)

Effective 7-7-03

1. A municipality shall submit an application to the department
of economic development for review and submission of an analysis and
recommendation to the Missouri development finance board for a
determination as to approval of the disbursement of the project costs of
one or more development projects from the state supplemental downtown
development fund. The department of economic development shall forward
the application to the Missouri development finance board with the
analysis and recommendation. In no event shall any approval authorize a
disbursement of one or more development projects from the state
supplemental downtown development fund which exceeds the allowable amount
of other net new revenues derived from the development area. An
application submitted to the department of economic development shall
contain the following, in addition to the items set forth in section
99.942:

(1) An estimate that one hundred percent of the payments in lieu of taxes
and economic activity taxes deposited to the special allocation fund must
and will be used to pay development project costs or obligations issued
to finance development project costs to achieve the objectives of the
development plan. Contributions to the development project from any
private not-for-profit organization or local contributions from tax
abatement or other sources may be substituted on a dollar-for-dollar
basis for the local match of one hundred percent of payments in lieu of
taxes and economic activity taxes from the fund;

(2) Identification of the existing businesses located within the
development project area and the development area;

(3) The aggregate baseline year amount of state sales tax revenues and
the aggregate baseline year amount of state income tax withheld on behalf
of existing employees, reported by existing businesses within the
development project area. Provisions of section 32.057, RSMo,
notwithstanding, municipalities will provide this information to the
department of revenue for verification. The department of revenue will
verify the information provided by the municipalities within forty-five
days of receiving a request for such verification from a municipality;

(4) An estimate of the state sales tax increment and state income tax
increment within the development project area after redevelopment;

(5) An affidavit that is signed by the developer or developers attesting
that the provision of subdivision (2) of subsection 3 of section 99.942
has been met and specifying that the development area would not be
reasonably anticipated to be developed without the appropriation of the
other net new revenues;

(6) The amounts and types of other net new revenues sought by the
applicant to be disbursed from state supplemental downtown development
fund over the term of the development plan;

(7) The methodologies and underlying assumptions used in determining the
estimate of the state sales tax increment and the state income tax
increment; and

(8) Any other information reasonably requested by the department of
economic development and the Missouri development finance board.

2. The department of economic development shall make all reasonable
efforts to process applications within sixty days of receipt of the
application.

3. The Missouri development finance board shall make a determination
regarding the application for a certificate allowing disbursements from
the state supplemental downtown development fund and shall forward such
determination to the director of the department of economic development.
In no event shall the amount of disbursements from the state supplemental
downtown development fund approved for a project, in addition to any
other state economic development funding or other state incentives,
exceed the projected state benefit of the development project, as
determined by the department of economic development through a
cost-benefit analysis. Any political subdivision located either wholly or
partially within the development area shall be permitted to submit
information to the department of economic development for consideration
in its cost-benefit analysis. Upon approval of state supplemental
downtown development financing, a certificate of approval shall be issued
by the department of economic development containing the terms and
limitations of the disbursement.

4. At no time shall the annual amount of other net new revenues approved
for disbursements from the state supplemental downtown development fund
exceed one hundred eight million dollars.

5. Development projects receiving disbursements from the state
supplemental downtown development fund shall be limited to receiving such
disbursements for fifteen years, unless specific approval for a longer
term is given by the director of the department of economic development,
as set forth in the certificate of approval; except that, in no case
shall the duration exceed twenty-five years. The approved term
notwithstanding, state supplemental downtown development financing shall
terminate when development financing for a development project is
terminated by a municipality.

6. The municipality shall deposit payments received from the state
supplemental downtown development fund in a separate segregated account
for other net new revenues within the special allocation fund.

7. Development project costs may include, at the prerogative of the
state, the portion of salaries and expenses of the department of economic
development, the Missouri development finance board, and the department
of revenue reasonably allocable to each development project approved for
disbursements from the state supplemental downtown development fund for
the ongoing administrative functions associated with such development
project. Such amounts shall be recovered from other net new revenues
deposited into the state supplemental downtown development fund created
pursuant to section 99.963.

8. A development project approved for state supplemental downtown
development financing may not thereafter elect to receive tax increment
financing pursuant to the real property tax increment allocation
redevelopment act, sections 99.800 to 99.865, and continue to receive
state supplemental downtown development financing pursuant to sections
99.915 to 99.980.

9. The department of economic development, in conjunction with the
Missouri development finance board, may establish the procedures and
standards for the determination and approval of applications by the
promulgation of rules and regulations and publish forms to implement the
provisions of this section and section 99.963.

10. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
section and section 99.963 shall become effective only if it complies
with and is subject to all of the provisions of chapter 536, RSMo, and,
if applicable, section 536.028, RSMo. This section, section 99.963, and
chapter 536, RSMo, are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536, RSMo, to review, to delay
the effective date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking authority and any
rule proposed or adopted after August 28, 2003, shall be invalid and void.

11. The Missouri development finance board shall consider parity based on
population and geography of the state among the regions of the state in
making determinations on applications pursuant to this section. (L. 2003
H.B. 289, A.L. 2005 S.B. 343)

1. There is hereby established within the state treasury a
special fund to be known as the "State Supplemental Downtown Development
Fund", to be administered by the department of economic development. Any
unexpended balance and any interest in the fund at the end of the
biennium shall be exempt from the provisions of section 33.080, RSMo,
relating to the transfer of unexpended balances to the general revenue
fund. The fund shall consist of:

(1) The first one hundred fifty million dollars of other net new revenues
generated annually by the development projects;

(2) Money received from costs charged pursuant to subsection 7 of section
99.960; and

(3) Gifts, contributions, grants, or bequests received from federal,
private, or other sources.

2. Notwithstanding the provisions of section 144.700, RSMo, to the
contrary, the department of revenue shall annually submit the first one
hundred fifty million of other net new revenues generated by the
development projects to the treasurer for deposit in the state
supplemental downtown development fund.

3. The department of economic development shall annually disburse funds
from the state supplemental downtown development fund in amounts
determined pursuant to the certificates of approval for projects,
providing that the amounts of other net new revenues generated from the
development area have been verified and all of the conditions of sections
99.915 to 99.980 are met. If the revenues appropriated from the state
supplemental downtown development fund are not sufficient to equal the
amounts determined to be disbursed pursuant to such certificates of
approval, the department of economic development shall disburse the
revenues on a pro rata basis to all such projects and other costs
approved pursuant to section 99.960.

4. In no event shall the amounts distributed to a project from the state
supplemental downtown development fund exceed the lessor of the amount of
the certificates of approval for projects or the actual other net new
revenues generated by the projects.

5. The department of economic development shall not disburse any moneys
from the state supplemental downtown development fund for any project
which has not complied with the annual reporting requirements of section
99.980.

6. Money in the state supplemental downtown development fund may be spent
for the reasonable and necessary costs associated with the administration
of the program authorized under sections 99.915 to 99.980.

7. No municipality shall obligate or commit the expenditure of
disbursements received from the state supplemental downtown development
fund prior to receiving a certificate of approval for the development
project generating other net new revenues.

8. Taxpayers in any development area who are required to remit sales
taxes pursuant to chapter 144, RSMo, or income tax withholdings pursuant
to chapter 143, RSMo, shall provide additional information to the
department of revenue in a form prescribed by the department by rule.
Such information shall include but shall not be limited to information
upon which other net new revenues can be calculated, and shall include
the number of new jobs, the gross payroll for such jobs, and sales tax
generated in the development area by such taxpayer in the baseline year
and during the time period related to the withholding or sales tax
remittance.

9. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
section shall become effective only if it complies with and is subject to
all of the provisions of chapter 536, RSMo, and, if applicable, section
536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and
if any of the powers vested with the general assembly pursuant to chapter
536, RSMo, to review, to delay the effective date, or to disapprove and
annul a rule are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after August 28,
2003, shall be invalid and void. (L. 2003 H.B. 289)

Effective 7-7-03

1. When all development project costs and all obligations issued
to finance development project costs have been paid in full, the
municipality shall adopt an ordinance terminating development financing
for all development project areas. Immediately upon the adoption of such
ordinance, all payments in lieu of taxes, all economic activity taxes,
and other net new revenues then remaining in the special allocation fund
shall be deemed to be surplus funds; and thereafter, the rates of the
taxing districts shall be extended and taxes levied, collected, and
distributed in the manner applicable in the absence of the adoption of
development financing. Surplus payments in lieu of taxes shall be paid to
the county collector who shall immediately thereafter pay such funds to
the taxing districts in the development area selected in the same manner
and proportion as the most recent distribution by the collector to the
affected taxing districts of real property taxes from real property in
the development area. Surplus economic activity taxes shall be paid to
the taxing districts in the development area in proportion to the then
current levy rates of such taxing districts that are attributable to
economic activity taxes. Surplus other net new revenues shall be paid to
the state. Any other funds remaining in the special allocation fund
following the adoption of an ordinance terminating development financing
in accordance with this section shall be deposited to the general fund of
the municipality.

2. Upon the payment of all development project costs, retirement of
obligations, and the distribution of any surplus funds pursuant to this
section, the municipality shall adopt an ordinance dissolving the special
allocation fund and terminating the designation of the development area
as a development area.

3. Nothing in sections 99.915 to 99.980 shall be construed as relieving
property in such areas from paying a uniform rate of taxes, as required
by section 3, article X of the Missouri Constitution. (L. 2003 H.B. 289)

Effective 7-7-03

In each of the twenty-five calendar years following the adoption
of an ordinance adopting development financing for a development project
area, unless and until development financing for such development project
area is terminated by ordinance of the municipality, then, in respect to
every taxing district containing such development project area, the
county clerk, or any other official required by law to ascertain the
amount of the equalized assessed value of all taxable property within
such development project area for the purpose of computing any debt
service levies to be extended upon taxable property within such
development project area, shall in every year that development financing
is in effect ascertain the amount of value of taxable property in such
development project area by including in such amount the certified total
initial equalized assessed value of all taxable real property in such
development project area in lieu of the equalized assessed value of all
taxable real property in such development project area. For the purpose
of measuring the size of payments in lieu of taxes under sections 99.915
to 99.980, all tax levies shall then be extended to the current equalized
assessed value of all property in the development project area in the
same manner as the tax rate percentage is extended to all other taxable
property in the taxing district. (L. 2003 H.B. 289)

Effective 7-7-03

Beginning in 2008, and every five years thereafter, a joint
committee of the general assembly, comprised of five members appointed by
the speaker of the house of representatives and five members appointed by
the president pro tempore of the senate, shall review sections 99.915 to
99.980. A report based on such review, with any recommended legislative
changes, shall be submitted to the speaker of the house of
representatives and the president pro tempore of the senate no later than
February first following the year in which the review is conducted. (L.
2003 H.B. 289)

Effective 7-7-03

1. No new applications made pursuant to sections 99.915 to 99.980
shall be approved after January 1, 2013.

2. No applications made pursuant to sections 99.915 to 99.980 shall be
approved prior to August 28, 2003, except for applications for projects
that are located within a county for which public and individual
assistance has been requested by the governor pursuant to section 401 of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act, 42
U.S.C. 5121 et seq., for an emergency proclaimed by the governor pursuant
to section 44.100, RSMo, due to a natural disaster of major proportions
that occurred after May 1, 2003, but prior to May 10, 2003, and the
development project area is a central business district that sustained
severe damage as a result of such natural disaster, as determined by the
state emergency management agency.

3. Prior to December 31, 2006, the Missouri development finance board may
approve up to two applications made pursuant to sections 99.915 to 99.980
in a home rule city with more than four hundred thousand inhabitants and
located in more than one county in which the state sales tax increment
for such projects approved pursuant to the provisions of this subsection
shall be up to one-half of the incremental increase in all sales taxes
levied pursuant to section 144.020, RSMo. In no event shall the
incremental increase include any amounts attributable to retail sales
unless the Missouri development finance board and the department of
economic development are satisfied based on information provided by the
municipality or authority, and such entities have made a finding that a
substantial portion of all but a de minimus portion of the sales tax
increment attributable to retail sales is from new sources which did not
exist in the state during the baseline year. The incremental increase for
an existing facility shall be the amount of all state sales taxes
generated pursuant to section 144.020, RSMo, at the facility in excess of
the amount of all state sales taxes generated pursuant to section
144.020, RSMo, at the facility in the baseline year. The incremental
increase in development project areas where the baseline year is the year
following the year in which the development project is approved by the
municipality pursuant to subdivision (2) of section 99.918 shall be the
state sales tax revenue generated by out-of-state businesses relocating
into a development project area. The incremental increase for a Missouri
facility which relocates to a development project area shall be the
amount by which the state sales tax revenue of the facility exceeds the
state sales tax revenue for the facility in the calendar year prior to
relocation. (L. 2003 H.B. 289)

Effective 7-7-03

1. By the last day of February each year, the municipality or
authority shall report to the director of the department of economic
development the name, address, phone number, and primary line of business
of any business which relocates to the development area.

2. Each year the governing body of the municipality, or its designee,
shall prepare a report concerning the status of the development plan, the
development area, and the included development projects, and shall submit
a copy of such report to the director of the department of economic
development. The report shall include the following:

(1) The name, street and mailing addresses, phone number, and chief
officer of the granting body;

(2) The name, street and mailing addresses, phone number, and chief
officer of any business benefiting from public expenditures in such
development plans and projects;

(3) The amount and source of revenue in the special allocation fund;

(4) The amount and purpose of expenditures from the special allocation
fund;

(5) The amount of any pledge of revenues, including principal and
interest on any outstanding bonded indebtedness;

(6) The original equalized assessed value of the development area;

(7) The assessed valuation added to the development area;

(8) Payments made in lieu of taxes received and expended;

(9) The economic activity taxes generated within the development area in
the baseline year;

(10) The economic activity taxes generated within the development area
after the baseline year;

(11) Reports on contracts made incident to the implementation and
furtherance of a development area, the development plan, and the included
development projects;

(12) A copy of the development plan;

(13) The cost of any property acquired, disposed of, rehabilitated,
reconstructed, repaired, or remodeled;

(14) The number of parcels acquired by or through initiation of eminent
domain proceedings;

(15) For municipalities with more than four hundred thousand inhabitants
and located in more than one county, any county with a charter form of
government and with more than one million inhabitants, any city not
within a county, and any county of the first classification with more
than one hundred thirty-five thousand four hundred but less than one
hundred thirty-five thousand five hundred inhabitants and any
municipality located therein, the number of development projects
developed in connection with community development corporations and the
amount of funds generated pursuant to section 99.957 which are expended
in connection with such project;

(16) A summary of the number of net new jobs created, categorized by
full-time, part-time, and temporary positions, and by wage groups;

(17) The comparison of the total employment in this state by any
business, including any corporate parent, benefiting from public
expenditures in the development area on the date of the application
compared to such employment on the date of the report, categorized by
full- time, part-time, and temporary positions;

(18) A statement as to whether public expenditures on any development
project during the previous fiscal year have reduced employment at any
other site controlled by any business benefiting from public expenditures
in the development area or its corporate parent, within or without of
this state as a result of automation, merger, acquisition, corporate
restructuring, or other business activity;

(19) A summary of the other community and economic benefits resulting
from the project, consistent with those identified in the application;

(20) A signed certification by the chief officer of the authority or
municipality as to the accuracy of the progress report; and

(21) Any additional reasonable information the department of economic
development deems necessary.

3. The report shall include an analysis of the distribution of state
supplemental downtown development financing by municipality and by
economic development region, as defined by the department of economic
development.

4. The department shall compile and publish all data from the progress
reports in both written and electronic form, including the department's
Internet web site.

5. The department shall have access at all reasonable times to the
project site and the records of any authority or municipality in order to
monitor the development project or projects and to prepare progress
reports.

6. Data contained in the report required pursuant to the provisions of
subsection 1 of this section and any information regarding amounts
disbursed to municipalities pursuant to the provisions of sections 99.957
and 99.963 shall be deemed a public record, as defined in section
610.010, RSMo.

7. Any municipality failing to file an annual report as required pursuant
to this section shall be ineligible to receive any disbursements from the
state supplemental downtown development fund pursuant to section 99.963.

8. The Missouri development finance board and the department of economic
development shall annually review the reports provided pursuant to this
section.

9. The director of the department of economic development shall submit a
report to the governor, the speaker of the house of representatives, and
the president pro tempore of the senate no later than April thirtieth of
each year. The report shall contain a summary of all information received
by the director of economic development pursuant to subsection 2 of this
section.

10. An annual statement showing the payments made in lieu of taxes
received and expended in that year, the status of the development area,
the development plan, the development projects in the development plan,
the amount of outstanding obligations, and any additional information
that the municipality deems necessary shall be published in a newspaper
of general circulation in the municipality.

11. Five years after the establishment of the development area and the
development plan and every five years thereafter the governing body of
the municipality or authority shall hold a public hearing regarding the
development area and the development plan and the development projects
adopted pursuant to sections 99.915 to 99.980. The purpose of the hearing
shall be to determine if the development area, development plan, and the
included development projects are making satisfactory progress under the
proposed time schedule contained within the approved development plan for
completion of such development projects. Notice of such public hearing
shall be given in a newspaper of general circulation in the area served
by the municipality or authority once each week for four weeks
immediately prior to the hearing. (L. 2003 H.B. 289)

Effective 7-7-03

As used in sections 99.1000 to 99.1060, unless the context
clearly requires otherwise, the following terms shall mean:

(1) "Authority", the rural economic stimulus authority for a
municipality, created pursuant to section 99.1006;

(2) "Baseline year", the calendar year prior to the adoption of an
ordinance by the municipality approving a development project;

(3) "Collecting officer", the officer of the municipality responsible for
receiving and processing payments in lieu of taxes, economic activity
taxes other than economic activity taxes which are local sales taxes, and
other local taxes other than local sales taxes, and, for local sales
taxes and state taxes, the director of revenue;

(4) "Development area", an area designated by a municipality which area
shall have the following characteristics:

(a) It includes only those parcels of real property directly and
substantially benefited by the proposed development plan;

(b) It can be renovated through one or more development projects;

(c) It is contiguous, provided, however that a development area may
include up to three noncontiguous areas selected for development
projects, provided that each noncontiguous area meets the requirements of
paragraphs (a) and (b) of this subdivision; and

(d) The development area shall not exceed ten percent of the entire area
of the municipality.

Subject to the limitation set forth in this subdivision, the development
area can be enlarged or modified as provided in section 99.1036;

(5) "Development facility", a facility producing either a good derived
from an agricultural commodity or using a process to produce a good
derived from an agricultural product;

(6) "Development plan", the comprehensive program of a municipality and
to thereby enhance the tax bases of the taxing districts which extend
into the development area through the reimbursement, payment, or other
financing of development project costs in accordance with sections
99.1000 to 99.1060 and through the exercise of the powers set forth in
sections 99.1000 to 99.1060. The development plan shall conform to the
requirements of section 99.1027;

(7) "Development project", any development project within a development
area which creates a renewable fuel production facility or eligible new
generation processing entity, and any such development project shall
include a legal description of the area selected for such development
project;

(8) "Development project area", the area located within a development
area selected for a development project;

(9) "Development project costs" include such costs to the development
plan or a development project, as applicable, which are expended on
public property, buildings, or rights-of-ways for public purposes to
provide infrastructure to support a development project. Such costs shall
only be allowed as an initial expense which, to be recoverable, must be
included in the costs of a development plan or development project,
except in circumstances of plan amendments approved by the Missouri
agricultural and small business development authority and the department
of economic development. Such infrastructure costs include, but are not
limited to, the following:

(a) Costs of studies, appraisals, surveys, plans, and specifications;

(b) Professional service costs, including, but not limited to,
architectural, engineering, legal, marketing, financial, planning, or
special services;

(c) Property assembly costs, including, but not limited to, acquisition
of land and other property, real or personal, or rights or interests
therein, demolition of buildings, and the clearing and grading of land;

(d) Costs of rehabilitation, reconstruction, repair, or remodeling of
existing public buildings and fixtures;

(e) Costs of construction of public works or improvements;

(f) Financing costs, including, but not limited to, all necessary
expenses related to the issuance of obligations issued to finance all or
any portion of the infrastructure costs of one or more development
projects, and which may include capitalized interest on any such
obligations and reasonable reserves related to any such obligations;

(g) All or a portion of a taxing district's capital costs resulting from
any development project necessarily incurred or to be incurred in
furtherance of the objectives of the development plan, to the extent the
municipality by written agreement accepts and approves such
infrastructure costs;

(h) Payments to taxing districts on a pro rata basis to partially
reimburse taxes diverted by approval of a development project;

(i) State government costs, including, but not limited to, the reasonable
costs incurred by the department of economic development, the
agricultural and small business development authority, and the department
of revenue in evaluating an application for and administering state
supplemental rural development financing for a development project; and

(j) Endowment of positions at an institution of higher education which
has a designation as a Carnegie Research I University including any
campus of such university system, subject to the provisions of section
99.1043;

(10) "Economic activity taxes", the total additional revenue from taxes
which are imposed by the municipality and other taxing districts, and
which are generated by economic activities within each development
project area which exceed the amount of such taxes generated by economic
activities within such development project area in the baseline year; but
excluding taxes imposed on sales or charges for sleeping rooms paid by
transient guests of hotels and motels, licenses, fees, or special
assessments. If a retail establishment relocates within one year from one
facility to another facility within the same county and the municipality
or authority finds that the retail establishment is a direct beneficiary
of development financing, then for purposes of this definition, the
economic activity taxes generated by the retail establishment shall equal
the total additional revenues from taxes which are imposed by the
municipality and other taxing districts which are generated by economic
activities within the development project area which exceed the amount of
taxes which are imposed by the municipality and other taxing districts
which are generated by economic activities within the development project
area generated by the retail establishment in the baseline year;

(11) "Eligible new generation processing entity", as defined in section
348.432, RSMo;

(12) "Major initiative", a development project that:

(a) Promotes the development of a facility producing either a good
derived from an agricultural commodity or using a process to produce a
good derived from an agricultural product, the estimated cost of which is
in excess of the amount set forth below for the municipality, as
applicable; or

(b) Promotes business location or expansion, the estimated cost of which
is in excess of the amount set forth below for the municipality, and is
estimated to create at least as many new jobs as set forth below within
three years of such location or expansion:

Population of Estimated New Jobs

Municipality Project Cost Created

99,999 or less $3,000,000 at least 30;

(13) "Municipality", any city, village, incorporated town, or any county
of this state established on or prior to January 1, 2001;

(14) "New job", any job defined as a new job pursuant to subdivision (11)
of section 100.710, RSMo;

(15) "Obligations", bonds, loans, debentures, notes, special
certificates, or other evidences of indebtedness issued by the
municipality or authority, or other public entity authorized to issue
such obligations pursuant to sections 99.1000 to 99.1060 to carry out a
development project or to refund outstanding obligations;

(16) "Ordinance", an ordinance enacted by the governing body of any
municipality or an order of the governing body of such a municipal entity
whose governing body is not authorized to enact ordinances;

(17) "Other net new revenues", the amount of state sales tax increment or
state income tax increment or the combination of the amount of each such
increment as determined under section 99.1045;

(18) "Payment in lieu of taxes", those revenues from real property in
each development project area, which taxing districts would have received
had the municipality not adopted a development plan and the municipality
not adopted development financing, and which would result from levies
made after the time of the adoption of development financing during the
time the current equalized value of real property in such development
project area exceeds the total equalized value of real property in such
development project area during the baseline year until development
financing for such development project area expires or is terminated
pursuant to sections 99.1000 to 99.1060;

(19) "Renewable fuel production facility", a facility producing an energy
source which is derived from a renewable, domestically grown, organic
compound capable of powering machinery, including an engine or power
plant, and any by-product derived from such energy source;

(20) "Special allocation fund", the fund of the municipality or its
authority required to be established pursuant to section 99.1042 which
special allocation fund shall contain at least four separate segregated
accounts into which payments in lieu of taxes are deposited in one
account, economic activity taxes are deposited in a second account, other
net new revenues are deposited in a third account, and other revenues, if
any, received by the authority or the municipality for the purpose of
implementing a development plan or a development project are deposited in
a fourth account;

(21) "State income tax increment", the estimate of the income tax due the
state for salaries or wages paid to new employees in new jobs at a
business located in the development project area and created by the
development project. The estimate shall be a percentage of the gross
payroll which percentage shall be based upon an analysis by the
department of revenue of the practical tax rate on gross payroll as a
factor in overall taxable income. In no event shall the percentage exceed
two percent;

(22) "State sales tax increment", the incremental increase in the state
sales tax revenue in the development project area. In no event shall the
incremental increase include any amounts attributable to retail sales
unless the Missouri agricultural and small business development authority
and the department of economic development are satisfied based on the
information provided by the municipality or authority, and such entities
have made a finding that a substantial portion of all but a de minimus
portion of the sales tax increment attributable to retail sales is from
new sources which did not exist in the state during the baseline year. In
addition, the incremental increase for an existing facility shall be the
amount by which the state sales tax revenue generated at the facility
exceeds the state sales tax revenue generated at the facility in the
baseline year. The incremental increase for a Missouri facility which
relocates to a development project area shall be the amount by which the
state sales tax revenue of the facility exceeds the state sales tax
revenue for the facility in the calendar year prior to relocation;

(23) "State sales tax revenues", the general revenue portion of state
sales tax revenues received pursuant to section 144.020, RSMo, excluding
sales taxes that are constitutionally dedicated, taxes deposited to the
school district trust fund in accordance with section 144.701, RSMo,
sales and use taxes on motor vehicles, trailers, boats and outboard
motors and future sales taxes earmarked by law;

(24) "Taxing districts", any political subdivision of this state having
the power to levy taxes; and

(25) "Taxing district's capital costs", those costs of taxing districts
for capital improvements that are found by the municipal governing bodies
to be necessary and to directly result from a development project. (L.
2003 H.B. 289, A.L. 2004 S.B. 1155)

Each municipality may create an authority to be known as a
"Rural Economic Stimulus Authority"; provided, however:

(1) No such authority shall transact any business or exercise its powers
pursuant to sections 99.1000 to 99.1060 until and unless the governing
body of such municipality shall, in accordance with subsection 1 of
section 99.1033, approve, by ordinance, the exercise of the powers,
functions, and duties of an authority under sections 99.1000 to 99.1060;

(2) No governing body of a municipality shall adopt an ordinance pursuant
to subdivision (1) of this section unless it finds:

(a) That it would be in the interest of the public to consider the
establishment of a development area in accordance with sections 99.1000
to 99.1060; and

(b) That the development of such a development area would be in the
interest of the public health, safety, morals, or welfare of the
residents of such municipality. (L. 2003 H.B. 289)

1. Each authority created pursuant to section 99.1006 shall be
governed by a board of commissioners. The number of commissioners serving
on the board of each authority shall be no less than five and no more
than fourteen, which number shall be established by ordinance of the
municipality.

2. One of the initial commissioners appointed pursuant to this subsection
shall be appointed by the school district or districts located within the
development area for a term of three years. The other initial
commissioners appointed pursuant to this subsection shall serve staggered
terms of one, two, and three years as determined by the mayor or chief
executive officer of the municipality at the time of their appointment.
Thereafter, successor commissioners shall be appointed by the mayor or
chief executive officer of the municipality or the school district or
districts making the initial appointments for a term of three years. All
vacancies shall be filled by appointment of the mayor or chief executive
officer of the municipality, or the school district or districts, for the
unexpired term. In addition to the commissioners appointed in accordance
with this subsection, a nonvoting advisor shall be appointed by the other
taxing districts located within the development area. (L. 2003 H.B. 289)

1. The powers of the authority created pursuant to section
99.1006 shall be exercised by its board of commissioners. A majority of
the commissioners shall constitute a quorum of such board for the purpose
of conducting business and exercising the powers of the authority and for
all other purposes. Action may be taken by the board upon a vote of a
majority of the commissioners present in person or by teleconference,
unless in any case the bylaws of the authority shall require a larger
number. Meetings of the board of the authority may be held anywhere
within the municipality.

2. The commissioners of the authority annually shall elect a chair and
vice chair from among the commissioners; however, the first chair shall
be designated by the mayor for a term of one year. The mayor or chief
executive officer of the municipality shall serve as the co-chair of the
authority. The authority may employ an executive director, technical
experts, and such other officers, agents, and employees, permanent and
temporary, as it may require, and shall determine their qualifications,
duties, and compensation. For such legal services as it may require, an
authority may call upon the chief law officer of the municipality or may
employ its own counsel and legal staff.

3. A commissioner of an authority shall receive no compensation for his
or her services, but may receive the necessary expenses, including
traveling expenses, incurred in the discharge of his or her duties. Each
commissioner shall hold office until a successor has been appointed.

4. For inefficiency or neglect of duty or misconduct in office, a
commissioner of an authority may be removed by the mayor or chief
executive officer of the municipality. (L. 2003 H.B. 289)

1. In any suit, action, or proceeding involving the validity or
enforcement of or relating to any contract of an authority entered into
pursuant to sections 99.1000 to 99.1060, such authority shall be
conclusively deemed to have become established and authorized to transact
business and exercise its powers under sections 99.1000 to 99.1060 upon
proof of the adoption of the appropriate ordinance prescribed in section
99.1006. Each such ordinance shall be deemed sufficient if it authorizes
the exercise of powers under sections 99.1000 to 99.1060 by the authority
and sets forth the findings of the municipality as required in
subdivision (2) of section 99.1006.

2. A copy of such ordinance duly certified by the clerk of the
municipality shall be admissible in evidence in any suit, action, or
proceeding.

3. No lawsuit to set aside the creation of an authority, the approval of
a development plan, development project, development area or development
project area, or a tax levied pursuant to sections 99.1000 to 99.1060, or
to otherwise question the validity of the proceedings related thereto,
shall be brought after the expiration of ninety days from the effective
date of the ordinance or resolution in question. (L. 2003 H.B. 289)

1. The authority created pursuant to section 99.1006 shall
constitute a public body corporate and politic, exercising public and
essential governmental functions.

2. A municipality or an authority created pursuant to section 99.1006
shall have all the powers necessary or convenient to carry out and
effectuate the purposes and provisions of sections 99.1000 to 99.1060,
including the following powers in addition to others granted pursuant to
sections 99.1000 to 99.1060:

(1) To prepare or cause to be prepared and approve development plans and
development projects to be considered at public hearings in accordance
with sections 99.1000 to 99.1060 and to undertake and carry out
development plans and development projects which have been adopted by
ordinance;

(2) To arrange or contract for the furnishing or repair, by any person or
agency, public or private, of services, privileges, streets, roads,
public utilities, or other facilities for or in connection with any
development project; and notwithstanding anything to the contrary
contained in sections 99.1000 to 99.1060 or any other provision of law,
to agree to any conditions that it may deem reasonable and appropriate
attached to federal financial assistance and imposed pursuant to federal
law relating to the determination of prevailing salaries or wages or
compliance with labor standards, in the undertaking or carrying out of
any development project, and to include in any contract let in connection
with any such development project provisions to fulfill such of the
conditions as it may deem reasonable and appropriate;

(3) Within a development area, to acquire by purchase, lease, gift,
grant, bequest, devise, obtain options upon, or otherwise acquire any
real or personal property or any interest therein, necessary or
incidental to a development project, all in the manner and at such price
as the municipality or authority determines is reasonably necessary to
achieve the objectives of a development plan;

(4) Within a development area, subject to provisions of section 99.1021
with regard to the disposition of real property, to sell, lease,
exchange, transfer, assign, subdivide, retain for its own use, mortgage,
pledge, hypothecate, or otherwise encumber or dispose of any real or
personal property or any interest therein, all in the manner and at such
price and subject to any covenants, restrictions, and conditions as the
municipality or authority determines is reasonably necessary to achieve
the objectives of a development plan; to make any such covenants,
restrictions, or conditions as covenants running with the land, and to
provide appropriate remedies for any breach of any such covenants,
restrictions, or conditions, including the right in the municipality or
authority to terminate such contracts and any interest in the property
created pursuant thereto;

(5) Within a development area, to clear any area by demolition or removal
of existing buildings and structures;

(6) To install, repair, construct, reconstruct, or relocate streets,
utilities, and site improvements as necessary or desirable for the
preparation of a development area for use in accordance with a
development plan;

(7) Within a development area, to fix, charge, and collect fees, rents,
and other charges for the use of any real or personal property, or any
portion thereof, in which the municipality or authority has any interest;

(8) To accept grants, guarantees, and donations of property, labor, or
other things of value from any public or private source for purposes of
implementing a development plan;

(9) In accordance with section 99.1021, to select one or more developers
to implement a development plan, or one or more development projects, or
any portion thereof;

(10) To charge as a development project cost the reasonable costs
incurred by the municipality or authority, the department of economic
development, the Missouri agricultural and small business development
authority, or the department of revenue in evaluating, administering, or
implementing the development plan or any development project;

(11) To borrow money and issue obligations in accordance with sections
99.1000 to 99.1060 and provide security for any such loans or obligations;

(12) To insure or provide for the insurance of any real or personal
property or operations of the municipality or authority against any risks
or hazards, including the power to pay premiums on any such insurance;
and to enter into any contracts necessary to effectuate the purposes of
sections 99.1000 to 99.1060;

(13) Within a development area, to renovate, rehabilitate, own, operate,
construct, repair, or improve any improvements, buildings, parking
garages, fixtures, structures, and other facilities;

(14) To invest any funds held in reserves or sinking funds, or any funds
not required for immediate disbursement, in property or securities in
which savings banks may legally invest funds subject to their control; to
redeem obligations at the redemption price established therein or to
purchase obligations at less than redemption price, all obligations so
redeemed or purchased to be canceled;

(15) To borrow money and to apply for and accept advances, loans, grants,
contributions, and any other form of financial assistance from the
federal government, state, county, municipality, or other public body or
from any sources, public or private, for the purposes of implementing a
development plan, to give such security as may be required and to enter
into and carry out contracts in connection therewith. A municipality or
authority, notwithstanding the provisions of any other law, may include
in any contract for financial assistance with the federal government for
a project such conditions imposed pursuant to federal law as the
municipality or authority may deem reasonable and appropriate and which
are not inconsistent with the purposes of sections 99.1000 to 99.1060;

(16) To incur development project costs and make such expenditures as may
be necessary to carry out the purposes of sections 99.1000 to 99.1060;
and to make expenditures from funds obtained from the federal government
without regard to any other laws pertaining to the making and approval of
appropriations and expenditures;

(17) To loan the proceeds of obligations issued pursuant to sections
99.1000 to 99.1060 for the purpose of providing for the purchase,
construction, extension, or improvement of public infrastructure related
to a development project by a developer pursuant to a development
contract approved by the municipality or authority in accordance with
subdivision (2) of section 99.1021;

(18) To declare any funds, or any portion thereof, in the special
allocation fund to be excess funds, so long as such excess funds have not
been pledged to the payment of outstanding obligations or outstanding
development project costs, are not necessary for the payment of
development project costs incurred or anticipated to be incurred, and are
not required to pay baseline state sales taxes and baseline state
withholding taxes to the director of revenue. Any such funds deemed to be
excess shall be disbursed in the manner of surplus funds as provided in
section 99.1051;

(19) To pledge or otherwise expend funds deposited to the special
allocation fund, or any portion thereof, for the payment or reimbursement
of development project costs incurred by the authority, the municipality,
a developer selected by the municipality or authority, or any other
entity with the consent of the municipality or authority; to pledge or
otherwise expend funds deposited to the special allocation fund, or any
portion thereof, or to mortgage or otherwise encumber its property, or
any portion thereof, for the payment of obligations issued to finance
development project costs; provided, however, any such pledge or
expenditure of economic activity taxes or other net new revenues shall be
subject to annual appropriation by the municipality; and

(20) To exercise all powers or parts or combinations of powers necessary,
convenient, or appropriate to undertake and carry out development plans
and any development projects and all the powers granted pursuant to
sections 99.1000 to 99.1060, excluding powers of eminent domain.

3. If any member of the governing body of the municipality, a
commissioner of the authority, or an employee or consultant of the
municipality or authority, involved in the planning and preparation of a
development project, owns or controls an interest, direct or indirect, in
any property included in a development project area, the individual shall
disclose the same in writing to the clerk of the municipality, and shall
also so disclose the dates, terms, and conditions of any disposition of
any such interest, which disclosures shall be acknowledged by the
governing body of the municipality and entered upon the minutes books of
the governing body of the municipality. If an individual holds such an
interest, then that individual shall refrain from any further official
involvement in regard to a development project and from voting on any
matter pertaining to such development project or communicating with other
commissioners or members of the authority or the municipality concerning
any matter pertaining to such development project. Furthermore, subject
to the succeeding sentence, no such member, commissioner, employee, or
consultant shall acquire any interest, direct or indirect, in any
property in a development project area or proposed development project
area after either such individual obtains knowledge of a development
project, or first public notice of such development project, or
development project area pursuant to subsection 2 of section 99.1036,
whichever first occurs. At any time after one year from the adoption of
an ordinance designating a development project area, any commissioner may
acquire an interest in real estate located in a development project area
so long as any such commissioner discloses such acquisition and refrains
from voting on any matter related to the development project area in
which the property acquired by such commissioner is located.

4. An authority created pursuant to section 99.1006 shall have the
following powers in addition to others granted pursuant to sections
99.1000 to 99.1060:

(1) To sue and to be sued; to have a seal and to alter the same at the
authority's pleasure; to have perpetual succession; to make and execute
contracts and other instruments necessary or convenient to the exercise
of the powers of the authority; and to make and from time to time amend
and repeal bylaws, rules, and regulations, not inconsistent with sections
99.1000 to 99.1060, to carry out the provisions of sections 99.1000 to
99.1060;

(2) To delegate to a municipality or other public body any of the powers
or functions of the authority with respect to the planning or undertaking
of a development project, and any such municipality or public body is
hereby authorized to carry out or perform such powers or functions for
the authority;

(3) To receive and exercise powers delegated by any authority, agency, or
agent of a municipality created pursuant to this chapter or chapter 353,
RSMo, excluding powers of eminent domain. (L. 2003 H.B. 289, A.L. 2004
S.B. 1155)

Real property which is acquired by a municipality or authority
in a development project area may be disposed of as follows:

(1) Within a development project area, the authority may sell, lease,
exchange, or otherwise transfer real property, including land,
improvements, and fixtures, or any interest therein, to any developer
selected for a development project, or any portion thereof, in accordance
with the development plan, subject to such covenants, conditions, and
restrictions as may be deemed to be in the public interest or to carry
out the purposes of sections 99.1000 to 99.1060. Such real property shall
be sold, leased, or transferred at its fair market value for uses in
accordance with the development plan; provided that such fair market
value may be less than the cost of such property to the municipality or
authority. In determining the fair market value of real property for uses
in accordance with a development plan, the municipality or authority
shall take into account and give consideration to the uses and purposes
required by the development plan; the restrictions upon, and the
covenants, conditions, and obligations assumed by the developer of such
property; the objectives of the development plan; and such other matters
as the municipality or authority shall specify as being appropriate. In
fixing rental and sale prices, a municipality or authority shall give
consideration to appraisals of the property for such uses made by experts
employed by the municipality or authority;

(2) The municipality or authority shall, by public notice published in a
newspaper having a general circulation in a development area, prior to
selecting one or more developers for any development project, or any
portion thereof, invite proposals from, and make available all pertinent
information to, private developers or any persons interested in
undertaking the development of such development project, or any portion
thereof. Such notice shall be published at least once each week during
the two weeks preceding the selection of a developer, shall identify the
area of the development project or development projects, or any portion
thereof, for which one or more developers are to be selected, and shall
state that such further information as it is available may be obtained at
the office of the municipality or authority. The municipality or
authority shall consider all proposals and the financial and legal
ability of the prospective developers to carry out their proposals. The
municipality or authority may negotiate and enter into one or more
contracts with any developer selected for the development of any such
area for the development of such area by such developer in accordance
with a development plan or for the sale or lease of any real property to
any such developer in any such area for the purpose of developing such
property in accordance with the development plan. The municipality or
authority may enter into any such contract as it deems to be in the
public interest and in furtherance of the purposes of sections 99.1000 to
99.1060; provided that the municipality or authority has, not less than
ten days prior thereto, notified the governing body in writing of its
intention to enter into such contract. Thereafter, the municipality or
authority may execute such contract in accordance with the provisions of
subdivision (1) of this section and deliver deeds, leases, and other
instruments and take all steps necessary to effectuate such contract. In
its discretion, the municipality or authority may, in accordance with the
provisions of this subdivision, dispose of any real property in an area
selected for a development project, or any portion thereof, to private
developers for development under such reasonable competitive bidding
procedures as it shall prescribe, subject to the provisions of
subdivision (1) of this section;

(3) In carrying out a development project, the authority may:

(a) Convey to the municipality such real property as, in accordance with
the development plan, is to be dedicated as public right-of-way for
streets, sidewalks, alleys, or other public ways, this power being
additional to and not limiting any and all other powers of conveyance of
property to municipalities expressed, generally or otherwise, in sections
99.1000 to 99.1060;

(b) Grant servitudes, easements, and rights-of-way for public utilities,
sewers, streets, and other similar facilities, in accordance with the
development plan; and

(c) Convey to the municipality or other appropriate public body such real
property as, in accordance with the development plan, is to be used for
parks, schools, public buildings, facilities, or other public purposes;

(4) The municipality or authority may operate and maintain real property
in the development area pending the disposition or development of the
property in accordance with a development plan, without regard to the
provisions of subdivisions (1) and (2) of this section, for such uses and
purposes as may be deemed desirable even though not in conformity with
the development plan. (L. 2003 H.B. 289)

1. A development plan shall set forth in writing a general
description of the program to be undertaken to accomplish the development
projects and related objectives and shall include, but need not be
limited to:

(1) The name, street and mailing address, and phone number of the mayor
or chief executive officer of the municipality;

(2) The street address of the development site;

(3) The three-digit North American Industry Classification System number
or numbers characterizing the development project;

(4) The estimated development project costs;

(5) The anticipated sources of funds to pay such development project
costs;

(6) Evidence of the commitments to finance such development project costs;

(7) The anticipated type and term of the sources of funds to pay such
development project costs;

(8) The anticipated type and terms of the obligations to be issued;

(9) The most recent equalized assessed valuation of the property within
the development project area;

(10) An estimate as to the equalized assessed valuation after the
development project area is developed in accordance with a development
plan;

(11) The general land uses to apply in the development area;

(12) The total number of individuals employed in the development area,
categorized by full-time, part-time, and temporary positions;

(13) The total number of full-time equivalent positions in the
development area;

(14) The current gross wages, state income tax withholdings, and federal
income tax withholdings for individuals employed in the development area;

(15) The total number of individuals employed in this state by the
corporate parent of any business benefiting from public expenditures in
the development area, and all subsidiaries thereof, as of December
thirty-first of the prior fiscal year, categorized by full-time,
part-time, and temporary positions;

(16) The number of new jobs to be created by any business benefiting from
public expenditures in the development area, categorized by full-time,
part-time, and temporary positions;

(17) The average hourly wage to be paid to all current and new employees
at the project site, categorized by full-time, part-time, and temporary
positions;

(18) For project sites located in a metropolitan statistical area, as
defined by the federal Office of Management and Budget, the average
hourly wage paid to nonmanagerial employees in this state for the
industries involved at the project, as established by the United States
Bureau of Labor Statistics;

(19) For project sites located outside of metropolitan statistical areas,
the average weekly wage paid to nonmanagerial employees in the county for
industries involved at the project, as established by the United States
Department of Commerce;

(20) A list of other community and economic benefits to result from the
project;

(21) A list of all development subsidies that any business benefiting
from public expenditures in the development area has previously received
for the project, and the name of any other granting body from which such
subsidies are sought;

(22) A list of all other public investments made or to be made by this
state or units of local government to support infrastructure or other
needs generated by the project for which the funding pursuant to this
act* is being sought;

(23) A statement as to whether the development project may reduce
employment at any other site, within or without of the state, resulting
from automation, merger, acquisition, corporate restructuring,
relocation, or other business activity;

(24) A statement as to whether or not the project involves the relocation
of work from another address and if so, the number of jobs to be
relocated and the address from which they are to be relocated;

(25) A list of businesses that are competing with the business benefiting
from the development plan in the county containing the development area
and in each contiguous county;

(26) A market study for the development area; and

(27) A certification by the chief officer of the applicant as to the
accuracy of the development plan.

2. The development plan may be adopted by a municipality in reliance on
findings that a reasonable person would believe:

(1) The development area has not been subject to growth and development
through investment by private enterprise and would not reasonably be
anticipated to be developed without the implementation of one or more
development projects and the adoption of local and state development
financing;

(2) The development plan conforms to the comprehensive plan for the
development of the municipality as a whole;

(3) The estimated dates, which shall not be more than twenty-five years
from the adoption of the ordinance approving any development project, of
the completion of such development project and retirement of obligations
incurred to finance development project costs have been stated, provided
that no ordinance approving a development project shall be adopted later
than fifteen years from the adoption of the ordinance approving the
development plan and provided that no property for a development project
shall be acquired by eminent domain later than ten years from the
adoption of the ordinance approving such development plan;

(4) In the event any business or residence is to be relocated as a direct
result of the implementation of the development plan, a plan has been
developed for relocation assistance for businesses and residences;

(5) A cost-benefit analysis showing the economic impact of the
development plan on the municipality and school districts that are at
least partially within the boundaries of the development area. The
analysis shall show the impact on the economy if the development projects
are not built pursuant to the development plan under consideration. The
cost- benefit analysis shall include a fiscal impact study on each
municipality and school district which is at least partially within the
boundaries of the development area, and sufficient information from the
authority to evaluate whether each development project as proposed is
financially feasible; and

(6) An economic feasibility analysis including a pro forma financial
statement indicating the return on investment that may be expected
without public assistance. The financial statement shall detail any
assumptions made, a pro forma statement analysis demonstrating the amount
of assistance required to bring the return into a range deemed attractive
to private investors, which amount shall not exceed the estimated
reimbursable project costs. (L. 2003 H.B. 289)

*"This act" (H.B. 289, 2003) contained numerous sections. Consult
Disposition of Sections table for a definitive listing.

In the event a municipality desires to designate a development
area located in whole or in part outside the incorporated boundaries of
the municipality and within the boundaries of another municipality, such
municipality shall first obtain the permission of the governing body of
such other municipality. (L. 2003 H.B. 289)

1. A municipality which has created an authority pursuant to
section 99.1006 may:

(1) Approve by ordinance the exercise by the authority of the powers,
functions, and duties of the authority under sections 99.1000 to 99.1060;
and

(2) After adopting an ordinance in accordance with subdivision (1) of
this subsection and after receipt of recommendations from the authority
in accordance with subsection 3 of this section, by ordinance, designate
development areas, adopt the development plans, and development projects,
designate a development project area for each development project
adopted, and adopt development financing for each such development
project area. No development plan may be adopted until the development
area is designated. No development project shall be adopted until the
development plan is adopted and the development project area for each
development project shall be designated at the time of adopting the
development project.

2. A municipality may authorize an authority created pursuant to section
99.1006 to exercise all powers and perform all functions of a
transportation development district pursuant to sections 238.200 to
238.275, RSMo, within a development area.

3. The municipality or authority shall hold public hearings and provide
notice pursuant to sections 99.1042 and 99.1045. Within ten days
following the completion of any such public hearing, the authority shall
vote on and shall make recommendation to the governing body of the
municipality with regard to any development plan, development projects,
designation of a development area or amendments thereto which were
proposed at such public hearing. (L. 2003 H.B. 289)

1. Prior to the adoption of the ordinance designating a
development area, adopting a development plan, or approving a development
project, the municipality or authority shall fix a time and place for a
public hearing and notify each taxing district located wholly or
partially within the boundaries of the proposed development area or
development project area affected. Such notice shall comply with the
provisions of subsection 2 of this section. At the public hearing any
interested person or affected taxing district may file with the
municipality or authority written objections to, or comments on, and may
be heard orally in respect to, any issues regarding the plan or issues
embodied in the notice. The municipality or authority shall hear and
consider all protests, objections, comments, and other evidence presented
at the hearing. The hearing may be continued to another date without
further notice other than a motion to be entered upon the minutes fixing
the time and place of the subsequent hearing. Prior to the conclusion of
the hearing, changes may be made in the development plan, development
project, development area or development project area, provided that
written notice of such changes is available at the public hearing. After
the public hearing but prior to the adoption of an ordinance designating
a development area, adopting a development plan or approving a
development project, changes may be made to any such proposed development
plan, development project, development area, or development project area
without a further hearing, if such changes do not enlarge the exterior
boundaries of the development area, and do not substantially affect the
general land uses established in a development plan or development
project, provided that notice of such changes shall be given by mail to
each affected taxing district and by publication in a newspaper of
general circulation in the development area or development project area,
as applicable, not less than ten days prior to the adoption of the
changes by ordinance. After the adoption of an ordinance designating the
development area, adopting a development plan, approving a development
project, or designating a development project area, no ordinance shall be
adopted altering the exterior boundaries of the development area or a
development project area affecting the general land uses established
pursuant to the development plan or the general nature of a development
project without holding a public hearing in accordance with this section.
One public hearing may be held for the simultaneous consideration of a
development area, development plan, development project, or development
project area.

2. Notice of the public hearing required by this section shall be given
by publication and mailing. Notice by publication shall be given by
publication at least twice, the first publication to be not more than
thirty days and the second publication to be not more than ten days prior
to the hearing, in a newspaper of general circulation in the proposed
development area or development project area, as applicable. Notice by
mailing shall be given by depositing such notice in the United States
mail by certified mail addressed to the person or persons in whose name
the general taxes for the last preceding year were paid on each lot,
block, tract, or parcel of land lying within the proposed development
area or development project area, as applicable, which is to be subjected
to the payment or payments in lieu of taxes and economic activity taxes
pursuant to section 99.1042. Such notice shall be mailed not less than
ten working days prior to the date set for the public hearing. In the
event taxes for the last preceding year were not paid, the notice shall
also be sent to the persons last listed on the tax rolls within the
preceding three years as the owners of such property.

3. The notices issued pursuant to this section shall include the
following:

(1) The time and place of the public hearing;

(2) The general boundaries of the proposed development area or
development project area, as applicable, by street location, where
possible;

(3) A statement that all interested persons shall be given an opportunity
to be heard at the public hearing;

(4) A description of the development plan and the proposed development
projects and a location and time where the entire development plan or
development projects proposed may be reviewed by any interested party;

(5) An estimate of other net new revenues;

(6) A statement that development financing involving tax revenues and
payments in lieu of taxes is being sought for the project and an estimate
of the amount of local development financing that will be requested, if
applicable; and

(7) Such other matters as the municipality or authority may deem
appropriate.

4. Not less than forty-five days prior to the date set for the public
hearing, the municipality or authority shall give notice by mail as
provided in subsection 2 of this section to all taxing districts with
jurisdiction over taxable property in the development area or development
project area, as applicable, and in addition to the other requirements
pursuant to subsection 3 of this section, the notice shall include an
invitation to each taxing district to submit comments to the municipality
or authority concerning the subject matter of the hearing prior to the
date of the hearing.

5. A copy of any and all hearing notices required by this section shall
be submitted by the municipality or authority to the director of the
department of economic development and the date such notices were mailed
or published, as applicable. (L. 2003 H.B. 289)

1. For the purpose of financing development project costs,
obligations may be issued by the municipality, or, at the request of the
municipality, by the authority or any other political subdivision
authorized to issue bonds, but in no event by the state, to pay or
reimburse development project costs. Such obligations, when so issued,
shall be retired in the manner provided in the ordinance or resolution
authorizing the issuance of such obligations.

2. Obligations issued pursuant to sections 99.1000 to 99.1060 may be
issued in one or more series bearing interest at such rate or rates as
the issuing entity shall determine by ordinance or resolution. Such
obligations shall bear such date or dates, be in such denomination, carry
such registration privileges, be executed in such manner, be payable in
such medium of payment at such place or places, contain such covenants,
terms, and conditions, and be subject to redemption as such ordinance or
resolution shall provide. Obligations issued pursuant to sections 99.1000
to 99.1060 may be sold at public or private sale at such price as shall
be determined by the issuing entity and shall state that obligations
issued pursuant to sections 99.1000 to 99.1060 are special obligations
payable solely from the funds specifically pledged. No referendum
approval of the electors shall be required as a condition to the issuance
of obligations pursuant to sections 99.1000 to 99.1060.

3. In the event the obligations contain a recital that they are issued
pursuant to sections 99.1000 to 99.1060, such recital shall be conclusive
evidence of their validity and of the regularity of their issuance.

4. Neither the municipality, the authority, or any other entity issuing
such obligations, or the members, commissioners, directors, or the
officers of any such entities nor any person executing any obligation
shall be personally liable for such obligation by reason of the issuance
thereof. The obligations issued pursuant to sections 99.1000 to 99.1060
shall not be a general obligation of the state, the municipality, or any
political subdivision thereof, nor in any event shall such obligation be
payable out of any funds or properties other than those specifically
pledged as security for such obligations. The obligations shall not
constitute indebtedness within the meaning of any constitutional,
statutory, or charter debt limitation or restriction.

5. Obligations issued pursuant to sections 99.1000 to 99.1060 may be
issued to refund, in whole or in part, obligations theretofore issued by
such entity pursuant to the authority of sections 99.1000 to 99.1060,
whether at or prior to maturity; provided, however, that the last
maturity of the refunding obligations shall not be expressed to mature
later than the last maturity date of the obligations to be refunded.

6. In the event a municipality or authority issues obligations under home
rule powers or other legislative authority, the proceeds of which are
pledged to pay for development project costs, the municipality may retire
such obligations from funds in the special allocation fund in amounts and
in such manner as if such obligations had been issued pursuant to the
provisions of sections 99.1000 to 99.1060.

7. State supplemental rural development financing shall not be used for
retiring or refinancing debt or obligations on a previously publicly
financed redevelopment project without express approval from the director
of the department of economic development and the agricultural and small
business development authority created pursuant to section 348.020, RSMo.
No approval shall be granted unless the application for state
supplemental rural development financing contains development projects
that are new projects which were not a part of the development projects
for which there is existing public debt or obligations. (L. 2003 H.B. 289)

1. A municipality, after designating a development area,
adopting a development plan, and adopting any development project in
conformance with the procedures of sections 99.1000 to 99.1060, may adopt
development financing for the development project area selected for any
such development project by passing an ordinance. Upon the adoption of
the first of any such ordinances, the municipality shall establish, or
shall direct the authority to establish, a special allocation fund for
the development area.

2. Immediately upon the adoption of a resolution or ordinance adopting
development financing for a development project area pursuant to
subsection 1 of this section, the county assessor shall determine the
total equalized assessed value of all taxable real property within such
development project area by adding together the most recently ascertained
equalized assessed value of each taxable lot, block, tract, or parcel of
real property within such development project area as of the date of the
adoption of such resolution or ordinance and shall provide to the clerk
of the municipality written certification of such amount as the total
initial equalized assessed value of the taxable real property within such
development project area.

3. In each of the twenty-five calendar years following the adoption of an
ordinance adopting development financing for a development project area
pursuant to subsection 1 of this section unless and until development
financing for such development project area is terminated by ordinance of
the municipality, the ad valorem taxes, and payments in lieu of taxes, if
any, arising from the levies upon taxable real property in such
development project area by taxing districts at the tax rates determined
in the manner provided in section 99.1054 shall be divided as follows:

(1) That portion of taxes, penalties, and interest levied upon each
taxable lot, block, tract, or parcel of real property in such development
project area which is attributable to the initial equalized assessed
value of each such taxable lot, block, tract, or parcel of real property
in such development project area as certified by the county assessor in
accordance with subsection 2 of this section shall be allocated to and,
when collected, shall be paid by the collecting authority to the
respective affected taxing districts in the manner required by law in the
absence of the adoption of development financing;

(2) Payments in lieu of taxes attributable to the increase in the current
equalized assessed valuation of each taxable lot, block, tract, or parcel
of real property in the development project area and any applicable
penalty and interest over and above the initial equalized assessed value
of each such taxable lot, block, tract, or parcel of real property in
such development project area as certified by the county assessor in
accordance with subsection 2 of this section shall be allocated to and,
when collected, shall be paid to the collecting officer of the
municipality who shall deposit such payment in lieu of taxes into a
separate segregated account for payments in lieu of taxes within the
special fund. Payments in lieu of taxes which are due and owing shall
constitute a lien against the real property from which such payments in
lieu of taxes are derived and shall be collected in the same manner as
real property taxes, including the assessment of penalties and interest
where applicable. The lien of payments in lieu of taxes may be foreclosed
in the same manner as the lien of real property taxes. No part of the
current equalized assessed valuation of each taxable lot, block, tract,
or parcel of property in any such development project area attributable
to any increase above the initial equalized assessed value of each such
taxable lot, block, tract, or parcel of real property in such development
project area as certified by the county assessor in accordance with
subsection 2 of this section shall be used in calculating the general
state school aid formula provided for in section 163.031, RSMo, until
development financing for such development project area expires or is
terminated in accordance with sections 99.1000 to 99.1060;

(3) For purposes of this section, "levies upon taxable real property in
such development area by taxing districts" shall not include the blind
pension fund tax levied under the authority of section 38(b), article
III, of the Missouri Constitution, the merchants' and manufacturers'
inventory replacement tax levied under the authority of subsection 2 of
section 6, article X of the Missouri Constitution, the desegregation
sales tax, or the conservation taxes.

4. In each of the twenty-five calendar years following the adoption of an
ordinance or resolution adopting development financing for a development
project area pursuant to subsection 1 of this section unless and until
development financing for such development project area is terminated in
accordance with sections 99.1000 to 99.1060, fifty percent of the
economic activity taxes from such development project area shall be
allocated to, and paid by the collecting officer of any such economic
activity tax to, the treasurer or other designated financial officer of
the municipality, who shall deposit such funds in a separate segregated
account for economic activity taxes within the special allocation fund.

5. In no event shall a municipality collect and deposit economic activity
taxes in the special allocation fund unless the developing project has
been approved for state supplemental rural development financing pursuant
to section 99.1045. (L. 2003 H.B. 289)

If a development plan includes an endowment of positions at an
institution of higher education which has a designation as a Carnegie
Research I University, including any campus of such university system,
such endowment must first be funded with a private donation to the
institution of higher education in accordance with its endowment policy
in an amount of at least one-half of the total amount of the endowment.
Thereafter, the remaining portion of matching funds for such endowment
may be made either from the local economic activity taxes or from a
disbursement made from the state supplemental downtown development fund.
Any disbursement from the state supplemental downtown development fund
for purposes of funding an endowment pursuant to the provisions of this
section shall be transferred to general revenue for appropriation of the
endowment. (L. 2003 H.B. 289)

1. A municipality shall submit an application to the Missouri
agricultural and small business development authority created pursuant to
section 348.020, RSMo, for approval of the disbursement of the project
costs of one or more development projects from the state supplemental
rural development fund. In no event shall any approval authorize a
disbursement of one or more development projects from the state
supplemental rural development fund which exceeds the allowable amount of
other net new revenues derived from the development area. An application
submitted to the Missouri agricultural and small business development
authority shall contain the following, in addition to the items set forth
in section 99.1027:

(1) An estimate that one hundred percent of the payments in lieu of taxes
and economic activity taxes deposited to the special allocation fund must
and will be used to pay development project costs or obligations issued
to finance development project costs to achieve the objectives of the
development plan. Contributions to the development project from any
private not-for-profit organization or local contributions from tax
abatement or other sources may be substituted on a dollar-for-dollar
basis for the local match of one hundred percent of payments in lieu of
taxes and economic activity taxes from the fund;

(2) Identification of the existing businesses located within the
development project area and the development area;

(3) The aggregate baseline year amount of state sales tax revenues and
the aggregate baseline year amount of state income tax withheld on behalf
of existing employees, reported by existing businesses within the
development project area. Provisions of section 32.057, RSMo,
notwithstanding, municipalities will provide this information to the
department of revenue for verification. The department of revenue will
verify the information provided by the municipalities within forty-five
days of receiving a request for such verification from a municipality;

(4) An estimate of the state sales tax increment and state income tax
increment within the development project area after redevelopment;

(5) An affidavit that is signed by the developer or developers attesting
that the provision of subdivision (2) of subsection 3 of section 99.1027
has been met and specifying that the development area would not be
reasonably anticipated to be developed without the appropriation of the
other net new revenues;

(6) The amounts and types of other net new revenues sought by the
applicant to be disbursed from state supplemental rural development fund
over the term of the development plan;

(7) The methodologies and underlying assumptions used in determining the
estimate of the state sales tax increment and the state income tax
increment;

(8) Any other information reasonably requested by the Missouri
agricultural and small business development authority.

2. The Missouri agricultural and small business development authority
shall make all reasonable efforts to process applications within sixty
days of receipt of the application.

3. The Missouri agricultural and small business development authority
shall make a determination regarding the application for a disbursement
from the state supplemental rural development fund and shall forward such
determination to the director of the department of economic development.
In no event shall the amount of disbursements from the state supplemental
rural development fund approved for a project, in addition to any other
state economic development funding or other state incentives, exceed the
projected state benefit of the development project, as determined by the
department of economic development through a cost-benefit analysis. Any
political subdivision located either wholly or partially within the
development area shall be permitted to submit information to the
department of economic development for consideration in its cost-benefit
analysis. Upon approval of state supplemental rural development
financing, a certificate of approval shall be issued by the department of
economic development containing the terms and limitations of the
disbursement.

4. At no time shall the annual amount of other net new revenues approved
for disbursements from the state supplemental rural development fund
exceed twelve million dollars.

5. Development projects receiving disbursements from the state
supplemental rural development fund shall be limited to receiving such
disbursements for fifteen years, unless specific approval for a longer
term is given by the director of the department of economic development,
as set forth in the certificate of approval; except that, in no case
shall the duration exceed twenty-five years. The approved term
notwithstanding, state supplemental rural development financing shall
terminate when development financing for a development project is
terminated by a municipality.

6. The municipality shall deposit payments received from the state
supplemental rural development fund in a separate segregated account for
other net new revenues within the special allocation fund.

7. Development project costs may include, at the prerogative of the
state, the portion of salaries and expenses of the department of economic
development, the Missouri agricultural and small business development
authority, and the department of revenue reasonably allocable to each
development project approved for disbursements from the state
supplemental rural development fund for the ongoing administrative
functions associated with such development project. Such amounts shall be
recovered from other net new revenues into the state supplemental rural
development fund created pursuant to section 99.1048.

8. A development project approved for state supplemental rural
development financing may not thereafter elect to receive tax increment
financing pursuant to the real property tax increment allocation
redevelopment act, sections 99.800 to 99.865, and continue to receive
state supplemental rural development financing pursuant to sections
99.1000 to 99.1060.

9. The Missouri agricultural and small business development authority
shall promulgate rules and regulations and publish forms to implement the
provisions of this section and section 99.1048.

10. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
section and section 99.1048 shall become effective only if it complies
with and is subject to all of the provisions of chapter 536, RSMo, and,
if applicable, section 536.028, RSMo. This section, section 99.1048, and
chapter 536, RSMo, are nonseverable and if any of the powers vested with
the general assembly pursuant to chapter 536, RSMo, to review, to delay
the effective date, or to disapprove and annul a rule are subsequently
held unconstitutional, then the grant of rulemaking authority and any
rule proposed or adopted after August 28, 2003, shall be invalid and
void. (L. 2003 H.B. 289)

1. There is hereby established within the state treasury a
special fund to be known as the "State Supplemental Rural Development
Fund", to be administered by the department of economic development. Any
unexpended balance and any interest in the fund at the end of the
biennium shall be exempt from the provisions of section 33.080, RSMo,
relating to the transfer of unexpended balances to the general revenue
fund. The fund shall consist of:

(1) The first twelve million dollars of other net new revenues generated
annually by the development projects;

(2) Money received from fees charged pursuant to subsection 7 of section
99.1045; and

(3) Gifts, contributions, grants, or bequests received from federal,
private, or other sources.

2. Notwithstanding the provisions of section 144.700, RSMo, to the
contrary, the department of revenue shall annually submit the first
twelve million of other net new revenues generated by the development
projects to the treasurer for deposit in the state supplemental rural
development fund.

3. The department of economic development shall annually disburse funds
from the state supplemental rural development fund in amounts determined
pursuant to the certificates of approval for projects, providing that the
amounts of other net new revenues generated from the development area
have been verified and all of the conditions of sections 99.1000 to
99.1060 are met. If the revenues appropriated from the state supplemental
rural development fund are not sufficient to equal the amounts determined
to be disbursed pursuant to such certificates of approval, the department
of economic development shall disburse the revenues on a pro rata basis
to all such projects and other costs approved pursuant to section 5 of
this section.

4. In no event shall the amounts distributed to a project from the state
supplemental rural development fund exceed the lessor of the amount of
the certificates of approval for projects or the actual other net new
revenues generated by the projects.

5. The department of economic development shall not disburse any moneys
from the state supplemental rural development fund for any project which
has not complied with the annual reporting requirements of section
99.1060.

6. Money in the state supplemental rural development fund may be spent
for the reasonable and necessary costs associated with the administration
of the program authorized under sections 99.1000 to 99.1060.

7. No municipality shall obligate or commit the expenditure of
disbursements received from the state supplemental rural development fund
prior to receiving a certificate of approval for the development project
generating other net new revenues.

8. Taxpayers in any development area who are required to remit sales
taxes pursuant to chapter 144, RSMo, or income tax withholdings pursuant
to chapter 143, RSMo, shall provide additional information to the
department of revenue in a form prescribed by the department by rule.
Such information shall include but shall not be limited to information
upon which other net new revenues can be calculated, and shall include
the number of new jobs, the gross payroll for such jobs, and sales tax
generated in the development area by such taxpayer in the baseline year
and during the time period related to the withholding or sales tax
remittance.

9. Any rule or portion of a rule, as that term is defined in section
536.010, RSMo, that is created under the authority delegated in this
section shall become effective only if it complies with and is subject to
all of the provisions of chapter 536, RSMo, and, if applicable, section
536.028, RSMo. This section and chapter 536, RSMo, are nonseverable and
if any of the powers vested with the general assembly pursuant to chapter
536, RSMo, to review, to delay the effective date, or to disapprove and
annul a rule are subsequently held unconstitutional, then the grant of
rulemaking authority and any rule proposed or adopted after August 28,
2003, shall be invalid and void. (L. 2003 H.B. 289)

1. When all development project costs and all obligations issued
to finance development project costs have been paid in full, the
municipality shall adopt an ordinance terminating development financing
for all development project areas. Immediately upon the adoption of such
ordinance, all payments in lieu of taxes, all economic activity taxes,
and other net new revenues then remaining in the special allocation fund
shall be deemed to be surplus funds; and thereafter, the rates of the
taxing districts shall be extended and taxes levied, collected, and
distributed in the manner applicable in the absence of the adoption of
development financing. Surplus payments in lieu of taxes shall be paid to
the county collector who shall immediately thereafter pay such funds to
the taxing districts in the development area selected in the same manner
and proportion as the most recent distribution by the collector to the
affected taxing districts of real property taxes from real property in
the development area. Surplus economic activity taxes shall be paid to
the taxing districts in the development area in proportion to the then
current levy rates of such taxing districts that are attributable to
economic activity taxes. Surplus other net new revenues shall be paid to
the state. Any other funds remaining in the special allocation fund
following the adoption of an ordinance terminating development financing
in accordance with this section shall be deposited to the general fund of
the municipality.

2. Upon the payment of all development project costs, retirement of
obligations, and the distribution of any surplus funds pursuant to this
section, the municipality shall adopt an ordinance dissolving the special
allocation fund and terminating the designation of the development area
as a development area.

3. Nothing in sections 99.1000 to 99.1060 shall be construed as relieving
property in such areas from paying a uniform rate of taxes, as required
by section 3, article X of the Missouri Constitution. (L. 2003 H.B. 289)

In each of the twenty-five calendar years following the adoption
of an ordinance adopting development financing for a development project
area, unless and until development financing for such development project
area is terminated by ordinance of the municipality, then, in respect to
every taxing district containing such development project area, the
county clerk, or any other official required by law to ascertain the
amount of the equalized assessed value of all taxable property within
such development project area for the purpose of computing any debt
service levies to be extended upon taxable property within such
development project area, shall in every year that development financing
is in effect ascertain the amount of value of taxable property in such
development project area by including in such amount the certified total
initial equalized assessed value of all taxable real property in such
development project area in lieu of the equalized assessed value of all
taxable real property in such development project area. For the purpose
of measuring the size of payments in lieu of taxes under sections 99.1000
to 99.1060, all tax levies shall then be extended to the current
equalized assessed value of all property in the development project area
in the same manner as the tax rate percentage is extended to all other
taxable property in the taxing district. (L. 2003 H.B. 289)

Beginning in 2008, and every five years thereafter, a joint
committee of the general assembly, comprised of five members appointed by
the speaker of the house of representatives and five members appointed by
the president pro tempore of the senate, shall review sections 99.1000 to
99.1060. A report based on such review, with any recommended legislative
changes, shall be submitted to the speaker of the house of
representatives and the president pro tempore of the senate no later than
February first following the year in which the review is conducted. (L.
2003 H.B. 289)

1. By the last day of February each year, the municipality or
authority shall report to the director of the department of economic
development the name, address, phone number, and primary line of business
of any business which relocates to the development area.

2. Each year the governing body of the municipality, or its designee,
shall prepare a report concerning the status of the development plan, the
development area, and the included development projects, and shall submit
a copy of such report to the director of the department of economic
development. The report shall include the following:

(1) The name, street and mailing addresses, phone number, and chief
officer of the granting body;

(2) The name, street and mailing addresses, phone number, and chief
officer of any business benefiting from public expenditures in such
development plans and projects;

(3) The amount and source of revenue in the special allocation fund;

(4) The amount and purpose of expenditures from the special allocation
fund;

(5) The amount of any pledge of revenues, including principal and
interest on any outstanding bonded indebtedness;

(6) The original equalized assessed value of the development area;

(7) The assessed valuation added to the development area;

(8) Payments made in lieu of taxes received and expended;

(9) The economic activity taxes generated within the development area in
the baseline year;

(10) The economic activity taxes generated within the development area
after the baseline year;

(11) Reports on contracts made incident to the implementation and
furtherance of a development area, the development plan, and the included
development projects;

(12) A copy of the development plan;

(13) The cost of any property acquired, disposed of, rehabilitated,
reconstructed, repaired, or remodeled;

(14) The number of parcels acquired by or through initiation of eminent
domain proceedings;

(15) A summary of the number of net new jobs created, categorized by
full-time, part-time, and temporary positions, and by wage groups;

(16) The comparison of the total employment in this state by the any
business, including any corporate parent, benefiting from public
expenditures in the development area on the date of the application
compared to such employment on the date of the report, categorized by
full- time, part-time, and temporary positions;

(17) A statement as to whether public expenditures on any development
project during the previous fiscal year have reduced employment at any
other site controlled by any business benefiting from public expenditures
in the development area or its corporate parent, within or without of
this state as a result of automation, merger, acquisition, corporate
restructuring, or other business activity;

(18) A summary of the other community and economic benefits resulting
from the project, consistent with those identified in the application;

(19) A signed certification by the chief officer of the authority or
municipality as to the accuracy of the progress report; and

(20) Any additional reasonable information the department of economic
development deems necessary.

3. The department shall compile and publish all data from the progress
reports in both written and electronic form, including the department's
Internet web site.

4. The department shall have access at all reasonable times to the
project site and the records of any authority or municipality in order to
monitor the development project or projects and to prepare progress
reports.

5. Data contained in the report required pursuant to the provisions of
subsection 1 of this section and any information regarding amounts
disbursed to municipalities pursuant to the provisions of sections
99.1042 and 99.1048 shall be deemed a public record, as defined in
section 610.010, RSMo.

6. Any municipality failing to file an annual report as required pursuant
to this section shall be ineligible to receive any disbursements from the
state supplemental rural development fund pursuant to section 99.1048.

7. The Missouri agricultural and small business development authority and
the department of economic development shall annually review the reports
provided pursuant to this section.

8. The director of the department of economic development shall submit a
report to the governor, the speaker of the house of representatives, and
the president pro tempore of the senate no later than April thirtieth of
each year. The report shall contain a summary of all information received
by the director of economic development pursuant to subsection 2 of this
section.

9. An annual statement showing the payments made in lieu of taxes
received and expended in that year, the status of the development area,
the development plan, the development projects in the development plan,
the amount of outstanding obligations, and any additional information
that the municipality deems necessary shall be published in a newspaper
of general circulation in the municipality.

10. Five years after the establishment of the development area and the
development plan and every five years thereafter the governing body of
the municipality or authority shall hold a public hearing regarding the
development area and the development plan and the development projects
adopted pursuant to sections 99.1000 to 99.1060. The purpose of the
hearing shall be to determine if the development area, development plan,
and the included development projects are making satisfactory progress
under the proposed time schedule contained within the approved
development plan for completion of such development projects. Notice of
such public hearing shall be given in a newspaper of general circulation
in the area served by the municipality or authority once each week for
four weeks immediately prior to the hearing. (L. 2003 H.B. 289)

Sections 99.1080 to 99.1092 shall be known and may be cited as
the "Downtown Revitalization Preservation Program". (L. 2005 H.B. 58
merged with S.B. 210)

As used in sections 99.1080 to 99.1092, unless the context
clearly requires otherwise, the following terms shall mean:

(1) "Baseline year", the calendar year prior to the adoption of an
ordinance by the municipality approving a redevelopment project;
provided, however, if local sales tax revenues or state sales tax
revenues, from businesses other than any out-of-state business or
businesses locating in the redevelopment project area, decrease in the
redevelopment project area in the year following the year in which the
ordinance approving a redevelopment project is approved by a
municipality, the baseline year may, at the option of the municipality
approving the redevelopment project, be the year following the year of
the adoption of the ordinance approving the redevelopment project. When a
redevelopment project area is located within a county for which public
and individual assistance has been requested by the governor under
Section 401 of the Robert T. Stafford Disaster Relief and Emergency
Assistance Act, 42 U.S.C. 5121, et seq., for an emergency proclaimed by
the governor under section 44.100, RSMo, due to a natural disaster of
major proportions and the redevelopment project area is a central
business district that sustained severe damage as a result of such
natural disaster, as determined by the state emergency management agency,
the baseline year may, at the option of the municipality approving the
redevelopment project, be the calendar year in which the natural disaster
occurred or the year following the year in which the natural disaster
occurred, provided that the municipality adopts an ordinance approving
the redevelopment project within one year after the occurrence of the
natural disaster;

(2) "Blighted area", an area which, by reason of the predominance of
defective or inadequate street layout, unsanitary or unsafe conditions,
deterioration of site improvements, improper subdivision or obsolete
platting, or the existence of conditions which endanger life or property
by fire and other causes, or any combination of such factors, retards the
provision of housing accommodations or constitutes an economic or social
liability or a menace to the public health, safety, morals, or welfare in
its present condition and use;

(3) "Central business district", the area at or near the historic core
that is locally known as the "downtown" of a municipality that has a
median household income of sixty-two thousand dollars or less, according
to the last decennial census. In addition, at least fifty percent of
existing buildings in this area will have been built in excess of
thirty-five years prior or vacant lots that had prior structures built in
excess of thirty-five years prior to the adoption of the ordinance
approving the redevelopment plan. The historical land use emphasis of a
central business district prior to redevelopment will have been a mixed
use of business, commercial, financial, transportation, government, and
multifamily residential uses;

(4) "Conservation area", any improved area within the boundaries of a
redevelopment area located within the territorial limits of a
municipality in which fifty percent or more of the structures in the area
have an age of thirty-five years or more, and such an area is not yet a
blighted area but is detrimental to the public health, safety, morals, or
welfare and may become a blighted area because of any one or more of the
following factors: dilapidation; obsolescence; deterioration; illegal use
of individual structures; presence of structures below minimum code
standards; abandonment; excessive vacancies; overcrowding of structures
and community facilities; lack of ventilation, light or sanitary
facilities; inadequate utilities; excessive land coverage; deleterious
land use or layout; depreciation of physical maintenance; and lack of
community planning;

(5) "Gambling establishment", an excursion gambling boat as defined in
section 313.800, RSMo, and any related business facility including any
real property improvements which are directly and solely related to such
business facility, whose sole purpose is to provide goods or services to
an excursion gambling boat and whose majority ownership interest is held
by a person licensed to conduct gambling games on an excursion gambling
boat or licensed to operate an excursion gambling boat as provided in
sections 313.800 to 313.850, RSMo;

(6) "Local sales tax increment", at least fifty percent of the local
sales tax revenue from taxes that are imposed by a municipality and its
county, and that are generated by economic activities within a
redevelopment area over the amount of such taxes generated by economic
activities within such a redevelopment area in the calendar year prior to
the adoption of the ordinance designating such a redevelopment area while
financing under sections 99.1080 to 99.1092 remains in effect, but
excluding personal property taxes, taxes imposed on sales or charges for
sleeping rooms paid by transient guests of hotels and motels, licenses,
fees, or special assessments; provided however, the governing body of any
county may, by resolution, exclude any portion of any countywide sales
tax of such county. For redevelopment projects or redevelopment plans
approved after August 28, 2005, if a retail establishment relocates
within one year from one facility within the same county and the
governing body of the municipality finds that the retail establishment is
a direct beneficiary of tax increment financing, then for the purposes of
this subdivision, the economic activity taxes generated by the retail
establishment shall equal the total additional revenues from economic
activity taxes that are imposed by a municipality or other taxing
district over the amount of economic activity taxes generated by the
retail establishment in the calendar year prior to its relocation to the
redevelopment area;

(7) "Local sales tax revenue", city sales tax revenues received under
sections 94.500 to 94.550, RSMo, and county sales tax revenues received
under sections 67.500 to 67.594, RSMo;

(8) "Major initiative", a development project within a central business
district which promotes tourism, cultural activities, arts,
entertainment, education, research, arenas, multipurpose facilities,
libraries, ports, mass transit, museums, economic development, or
conventions for the municipality, and where the capital investment within
the redevelopment project area is:

(a) At least five million dollars for a project area within a city having
a population of one hundred thousand to one hundred ninety-nine thousand
nine hundred and ninety-nine inhabitants;

(b) At least one million dollars for a project area within a city having
a population of fifty thousand to ninety-nine thousand nine hundred and
ninety-nine inhabitants;

(c) At least five hundred thousand dollars for a project area within a
city having a population of ten thousand to forty-nine thousand nine
hundred and ninety-nine inhabitants; or

(d) At least two hundred fifty thousand dollars for a project area within
a city having a population of one to nine thousand nine hundred and
ninety-nine inhabitants;

(9) "Municipality", any city or county of this state having fewer than
two hundred thousand inhabitants;

(10) "Obligations", bonds, loans, debentures, notes, special
certificates, or other evidences of indebtedness issued by the
municipality or authority, or other public entity authorized to issue
such obligations under sections 99.1080 to 99.1092 to carry out a
redevelopment project or to refund outstanding obligations;

(11) "Ordinance", an ordinance enacted by the governing body of any
municipality;

(12) "Redevelopment area", an area designated by a municipality in
respect to which the municipality has made a finding that there exist
conditions which cause the area to be classified as a blighted area or a
conservation area, which area shall have the following characteristics:

(a) It can be renovated through one or more redevelopment projects;

(b) It is located in the central business district;

(c) The redevelopment area shall not exceed ten percent of the entire
geographic area of the municipality.

Subject to the limitation set forth in this subdivision, the
redevelopment area can be enlarged or modified as provided in section
99.1088;

(13) "Redevelopment plan", the comprehensive program of a municipality to
reduce or eliminate those conditions which qualify a redevelopment area
as a blighted area or a conservation area, and to thereby enhance the tax
bases of the taxing districts which extend into the redevelopment area
through the reimbursement, payment, or other financing of redevelopment
project costs in accordance with sections 99.1080 to 99.1092 and through
application for and administration of downtown revitalization
preservation program financing under sections 99.1080 to 99.1092;

(14) "Redevelopment project", any redevelopment project within a
redevelopment area which constitutes a major initiative in furtherance of
the objectives of the redevelopment plan, and any such redevelopment
project shall include a legal description of the area selected for such
redevelopment project;

(15) "Redevelopment project area", the area located within a
redevelopment area selected for a redevelopment project;

(16) "Redevelopment project costs" include such costs to the
redevelopment plan or a redevelopment project, as applicable, which are
expended on public property, buildings, or rights-of-way for public
purposes to provide infrastructure to support a redevelopment project,
including facades. Such costs shall only be allowed as an initial expense
which, to be recoverable, must be included in the costs of a
redevelopment plan or redevelopment project, except in circumstances of
plan amendments approved by the department of economic development. Such
infrastructure costs include, but are not limited to, the following:

(a) Costs of studies, appraisals, surveys, plans, and specifications;

(b) Professional service costs, including, but not limited to,
architectural, engineering, legal, marketing, financial, planning, or
special services;

(c) Property assembly costs, including, but not limited to, acquisition
of land and other property, real or personal, or rights or interests
therein, demolition of buildings, and the clearing and grading of land;

(d) Costs of rehabilitation, reconstruction, repair, or remodeling of
existing public buildings and fixtures;

(e) Costs of construction of public works or improvements;

(f) Financing costs, including, but not limited to, all necessary
expenses related to the issuance of obligations issued to finance all or
any portion of the infrastructure costs of one or more redevelopment
projects, and which may include capitalized interest on any such
obligations and reasonable reserves related to any such obligations;

(g) All or a portion of a taxing district's capital costs resulting from
any redevelopment project necessarily incurred or to be incurred in
furtherance of the objectives of the redevelopment plan, to the extent
the municipality by written agreement accepts and approves such
infrastructure costs;

(h) Payments to taxing districts on a pro rata basis to partially
reimburse taxes diverted by approval of a redevelopment project when all
debt is retired;

(i) State government costs, including, but not limited to, the reasonable
costs incurred by the department of economic development and the
department of revenue in evaluating an application for and administering
downtown revitalization preservation financing for a redevelopment
project;

(17) "State sales tax increment", up to one-half of the incremental
increase in the state sales tax revenue in the redevelopment project area
provided the local taxing jurisdictions commit one-half of their local
sales tax to paying for redevelopment project costs. The incremental
increase shall be the amount by which the state sales tax revenue
generated at the facility or within the redevelopment project area
exceeds the state sales tax revenue generated at the facility or within
the redevelopment project area in the baseline year. For redevelopment
projects or redevelopment plans approved after August 28, 2005, if a
retail establishment relocates within one year from one facility to
another facility within the same county and the governing body of the
municipality finds that the retail establishment is a direct beneficiary
of tax increment financing, then for the purposes of this subdivision,
the economic activity taxes generated by the retail establishment shall
equal the total additional revenues from economic activity taxes that are
imposed by a municipality or other taxing district over the amount of
economic activity taxes generated by the retail establishment in the
calendar year prior to the relocation to the redevelopment area;

(18) "State sales tax revenues", the general revenue portion of state
sales tax revenues received under section 144.020, RSMo, excluding sales
taxes that are constitutionally dedicated, taxes deposited to the school
district trust fund in accordance with section 144.701, RSMo, sales and
use taxes on motor vehicles, trailers, boats and outboard motors and
future sales taxes earmarked by law;

(19) "Taxing district's capital costs", those costs of taxing districts
for capital improvements that are found by the municipal governing bodies
to be necessary and to directly result from a redevelopment project;

(20) "Taxing districts", any political subdivision of this state having
the power to levy taxes. (L. 2005 H.B. 58 merged with S.B. 210)

1. A redevelopment plan shall set forth in writing a general
description of the program to be undertaken to accomplish the
redevelopment projects and related objectives and shall include, but need
not be limited to:

(1) The name, street and mailing address, and phone number of the mayor
or chief executive officer of the municipality;

(2) The street address of the redevelopment site;

(3) The estimated redevelopment project costs;

(4) The anticipated sources of funds to pay such redevelopment project
costs;

(5) Evidence of the commitments to finance such redevelopment project
costs;

(6) The anticipated type and term of the sources of funds to pay such
redevelopment project costs;

(7) The anticipated type and terms of the obligations to be issued;

(8) The general land uses to apply in the redevelopment area;

(9) A list of other community and economic benefits to result from the
project;

(10) A list of all other public investments made or to be made by this
state or units of local government to support infrastructure or other
needs generated by the project for which the funding under sections
99.1080 to 99.1092 is being sought;

(11) A certification by the chief officer of the applicant as to the
accuracy of the redevelopment plan;

(12) A study analyzing the revenues that are being displaced as a result
of the project that otherwise would have occurred in the market area. The
department of economic development shall have discretion to exempt
smaller projects from this requirement;

(13) An economic feasibility analysis including a pro forma financial
statement indicating the return on investment that may be expected
without public assistance. The financial statement shall detail any
assumptions made including a pro forma statement analysis that
demonstrates the amount of assistance required to bring the return into a
range deemed attractive to private investors. That amount shall not
exceed the estimated reimbursable project costs.

2. The redevelopment plan may be adopted by a municipality in reliance on
findings that a reasonable person would believe:

(1) The redevelopment area on the whole is a blighted area or a
conservation area as determined by an independent third party. Such a
finding shall include, but not be limited to, a detailed description of
the factors that qualify the redevelopment area or project under this
subsection;

(2) The redevelopment area has not been subject to growth and
redevelopment through investment by private enterprise or would not
reasonably be anticipated to develop or continue to be developed without
the implementation of one or more redevelopment projects and the adoption
of local and state redevelopment financing;

(3) The redevelopment plan conforms to the comprehensive plan for the
redevelopment of the municipality as a whole;

(4) The estimated dates, which shall not be more than twenty-five years
from the adoption of the ordinance approving any redevelopment project,
of the completion of such redevelopment project and retirement of
obligations incurred to finance redevelopment project costs have been
stated, provided that no ordinance approving a redevelopment project
shall be adopted later than fifteen years from the adoption of the
ordinance approving the redevelopment plan and provided that no property
for a redevelopment project shall be acquired by eminent domain later
than ten years from the adoption of the ordinance approving such
redevelopment plan;

(5) In the event any business or residence is to be relocated as a direct
result of the implementation of the redevelopment plan, a plan has been
developed for relocation assistance for businesses and residences; and

(6) The redevelopment plan does not include the initial development or
redevelopment of any gambling establishment. (L. 2005 H.B. 58 merged with
S.B. 210)

1. Prior to the adoption of the ordinance designating a
redevelopment area, adopting a redevelopment plan, or approving a
redevelopment project, the municipality or authority shall fix a time and
place for a public hearing and notify each taxing district located wholly
or partially within the boundaries of the proposed redevelopment area or
redevelopment project area affected. Such notice shall comply with the
provisions of subsections 2 and 3 of this section. At the public hearing
any interested person or affected taxing district may file with the
municipality or authority written objections to, or comments on, and may
be heard orally in respect to any issues regarding the plan or issues
embodied in the notice. The municipality or authority shall hear and
consider all protests, objections, comments, and other evidence presented
at the hearing. The hearing may be continued to another date without
further notice other than a motion to be entered upon the minutes fixing
the time and place of the subsequent hearing. Prior to the conclusion of
the hearing, changes may be made in the redevelopment plan, redevelopment
project, redevelopment area or redevelopment project area, provided that
written notice of such changes is available at the public hearing. After
the public hearing but prior to the adoption of an ordinance designating
a redevelopment area, adopting a redevelopment plan or approving a
redevelopment project, changes may be made to any such proposed
redevelopment plan, redevelopment project, redevelopment area, or
redevelopment project area without a further hearing, if such changes do
not enlarge the exterior boundaries of the redevelopment area, and do not
substantially affect the general land uses established in a redevelopment
plan or redevelopment project, provided that notice of such changes shall
be given by mail to each affected taxing district and by publication in a
newspaper of general circulation in the redevelopment area or
redevelopment project area, as applicable, not less than ten days prior
to the adoption of the changes by ordinance. After the adoption of an
ordinance designating the redevelopment area, adopting a redevelopment
plan, approving a redevelopment project, or designating a redevelopment
project area, no ordinance shall be adopted altering the exterior
boundaries of the redevelopment area or a redevelopment project area
affecting the general land uses established under the redevelopment plan
or the general nature of a redevelopment project without holding a public
hearing in accordance with this section. One public hearing may be held
for the simultaneous consideration of a redevelopment area, redevelopment
plan, redevelopment project, or redevelopment project area.

2. Notice of the public hearing required by this section shall be given
by publication and mailing. Notice by publication shall be given by
publication at least twice, the first publication to be not more than
thirty days and the second publication to be not more than ten days prior
to the hearing, in a newspaper of general circulation in the proposed
redevelopment area or redevelopment project area, as applicable. Notice
by mailing shall be given by depositing such notice in the United States
mail by certified mail addressed to the person or persons in whose name
the general taxes for the last preceding year were paid on each lot,
block, tract, or parcel of land lying within the proposed redevelopment
area or redevelopment project area, as applicable. Such notice shall be
mailed not less than ten working days prior to the date set for the
public hearing.

3. The notices issued under this section shall include the following:

(1) The time and place of the public hearing;

(2) The general boundaries of the proposed redevelopment area or
redevelopment project area, as applicable, by street location, where
possible;

(3) A statement that all interested persons shall be given an opportunity
to be heard at the public hearing;

(4) A description of the redevelopment plan and the proposed
redevelopment projects and a location and time where the entire
redevelopment plan or redevelopment projects proposed may be reviewed by
any interested party;

(5) A statement that redevelopment financing involving tax revenues is
being sought for the project and an estimate of the amount of local
redevelopment financing that will be requested, if applicable; and

(6) Such other matters as the municipality or authority may deem
appropriate.

4. Not less than forty-five days prior to the date set for the public
hearing, the munici