House File 470
HOUSE FILE
BY DAVITT and HOGG
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to urban renewal plans, including the procedures
2 for notification of and consultation with affected taxing
3 entities, agreement on recommendations for certain
4 modifications to a proposed plan, the consequences of failing
5 to reach agreement on certain recommendations for modification
6 of a proposed plan, and providing an effective date.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
8 TLSB 2607HH 80
9 sc/cf/24
PAG LIN
1 1 Section 1. Section 403.5, subsection 2, Code 2003, is
1 2 amended to read as follows:
1 3 2. The municipality may itself prepare or cause to be
1 4 prepared an urban renewal plan; or any person or agency,
1 5 public or private, may submit such a plan to a municipality.
1 6 Prior to its approval of an urban renewal plan, the local
1 7 governing body shall submit such plan to the planning
1 8 commission of the municipality, if any, for review and
1 9 recommendations as to its conformity with the general plan for
1 10 the development of the municipality as a whole. The planning
1 11 commission shall submit its written recommendations with
1 12 respect to the proposed urban renewal plan to the local
1 13 governing body within thirty days after receipt of the plan
1 14 for review. Upon receipt of the recommendations of the
1 15 planning commission or, if no recommendations are received
1 16 within the thirty days, then, without such recommendations,
1 17 and upon conclusion of the notice and consultation process
1 18 provided in this subsection, the local governing body may
1 19 proceed with the hearing on the proposed urban renewal plan
1 20 prescribed by subsection 3.
1 21 Prior to its approval of an If the proposed urban renewal
1 22 plan which provides for a division of revenue pursuant to
1 23 section 403.19, the municipality shall mail the proposed plan
1 24 by regular mail to the affected taxing entities on the same
1 25 day that the plan is submitted to the planning commission.
1 26 The municipality shall include with the proposed plan
1 27 notification of a consultation to be held between the
1 28 municipality and affected taxing entities prior to the public
1 29 hearing on the urban renewal plan and no earlier than ten days
1 30 and no later than fourteen days after mailing the notification
1 31 of the proposed plan to the affected taxing entities. Each
1 32 affected taxing entity may appoint a representative to attend
1 33 the consultation. The consultation may include a discussion
1 34 of the estimated growth in valuation of taxable property
1 35 included in the proposed urban renewal area, the fiscal impact
2 1 of the division of revenue on the affected taxing entities,
2 2 the estimated impact on the provision of services by each of
2 3 the affected taxing entities in the proposed urban renewal
2 4 area, and the duration of any bond issuance included in the
2 5 plan. The designated representative of the affected taxing
2 6 entity may make written recommendations for modification to
2 7 the proposed division of revenue no later than seven days
2 8 following the date of the consultation. The representative of
2 9 the municipality shall, no later than seven days prior to the
2 10 public hearing on the urban renewal plan, submit a written
2 11 response to the affected taxing entity addressing the
2 12 recommendations for modification to the proposed division of
2 13 revenue. If the municipality and the affected taxing entities
2 14 fail to reach agreement on the recommendations for
2 15 modification, and the municipality adopts the urban renewal
2 16 plan, the municipality shall be allowed to retain no more than
2 17 fifty percent of the revenues allocated to the municipality
2 18 under section 403.19, subsection 2, pursuant to such plan.
2 19 Sec. 2. Section 403.19, subsection 2, Code 2003, is
2 20 amended to read as follows:
2 21 2. That Except as otherwise provided in section 403.5,
2 22 subsection 2, that portion of the taxes each year in excess of
2 23 such amount shall be allocated to and when collected be paid
2 24 into a special fund of the municipality to pay the principal
2 25 of and interest on loans, moneys advanced to, or indebtedness,
2 26 whether funded, refunded, assumed, or otherwise, including
2 27 bonds issued under the authority of section 403.9, subsection
2 28 1, incurred by the municipality to finance or refinance, in
2 29 whole or in part, an urban renewal project within the area,
2 30 and to provide assistance for low and moderate income family
2 31 housing as provided in section 403.22, except that taxes for
2 32 the regular and voter=approved physical plant and equipment
2 33 levy of a school district imposed pursuant to section 298.2
2 34 and taxes for the payment of bonds and interest of each taxing
2 35 district must be collected against all taxable property within
3 1 the taxing district without limitation by the provisions of
3 2 this subsection. However, all or a portion of the taxes for
3 3 the physical plant and equipment levy shall be paid by the
3 4 school district to the municipality if the auditor certifies
3 5 to the school district by July 1 the amount of such levy that
3 6 is necessary to pay the principal and interest on bonds issued
3 7 by the municipality to finance an urban renewal project, which
3 8 bonds were issued before July 1, 2001. Indebtedness incurred
3 9 to refund bonds issued prior to July 1, 2001, shall not be
3 10 included in the certification. Such school district shall pay
3 11 over the amount certified by November 1 and May 1 of the
3 12 fiscal year following certification to the school district.
3 13 Unless and until the total assessed valuation of the taxable
3 14 property in an urban renewal area exceeds the total assessed
3 15 value of the taxable property in such area as shown by the
3 16 last equalized assessment roll referred to in subsection 1,
3 17 all of the taxes levied and collected upon the taxable
3 18 property in the urban renewal area shall be paid into the
3 19 funds for the respective taxing districts as taxes by or for
3 20 the taxing districts in the same manner as all other property
3 21 taxes. When such loans, advances, indebtedness, and bonds, if
3 22 any, and interest thereon, have been paid, all moneys
3 23 thereafter received from taxes upon the taxable property in
3 24 such urban renewal area shall be paid into the funds for the
3 25 respective taxing districts in the same manner as taxes on all
3 26 other property.
3 27 Sec. 3. IMMEDIATE EFFECTIVE DATE. This Act, being deemed
3 28 of immediate importance, takes effect upon enactment.
3 29 EXPLANATION
3 30 This bill makes changes relating to the notification and
3 31 consultation procedures for urban renewal plans.
3 32 The bill provides that the municipality proposing an urban
3 33 renewal plan may not proceed with a public hearing on the plan
3 34 until the notification and consultation process has been
3 35 concluded. The bill requires that notification of a proposed
4 1 urban renewal plan and notice of a consultation with the
4 2 affected taxing entities on the plan shall be mailed to the
4 3 affected taxing entities on the same day that the proposed
4 4 plan is submitted to the planning commission of the
4 5 municipality. The bill provides that the consultation with
4 6 the affected taxing entities shall be held no earlier than 10
4 7 days and no later than 14 days after the notification is
4 8 mailed.
4 9 The bill also provides that if the municipality and the
4 10 affected taxing entities fail to reach agreement on the
4 11 recommendations for modification submitted by the affected
4 12 taxing entities, and the municipality adopts the urban renewal
4 13 plan, the municipality, under the plan, shall be allowed to
4 14 retain no more than 50 percent of the tax incremental revenues
4 15 allocated to the municipality.
4 16 The bill takes effect upon enactment.
4 17 LSB 2607HH 80
4 18 sc/cf/24