House File 2462 - Introduced
HOUSE FILE
BY FORD
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to urban renewal plans and areas, by placing a
2 durational limitation on the use of tax increment financing in
3 certain urban renewal areas, relating to amendments to urban
4 renewal plans, requiring voter approval of certain urban
5 renewal projects, and including effective, retroactive, and
6 other applicability date provisions.
7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 403.5, subsection 5, Code 2007, is
1 2 amended to read as follows:
1 3 5. An urban renewal plan may be modified amended at any
1 4 time: Provided, that. However, if modified the urban renewal
1 5 plan is amended after the lease or sale by the municipality of
1 6 real property in the urban renewal project area, such
1 7 modification amendment may be conditioned upon such approval
1 8 of the owner, lessee, or successor in interest as the
1 9 municipality may deem advisable, and in any event such
1 10 modification amendment shall be subject to such rights at law
1 11 or in equity as a lessee or purchaser, or a lessee's or
1 12 purchaser's successor or successors in interest, may be
1 13 entitled to assert. The A project may be added to an urban
1 14 renewal plan only by an amendment to the plan. Territory may
1 15 be added to, or severed from, an urban renewal area only by an
1 16 amendment to the urban renewal plan. When amending an urban
1 17 renewal plan, the municipality shall comply with the
1 18 notification and consultation process provided in this section
1 19 prior to the approval of any amendment or modification to an
1 20 adopted urban renewal plan if such amendment or modification
1 21 provides for refunding bonds or refinancing resulting in an
1 22 increase in debt service or provides for the issuance of bonds
1 23 or other indebtedness, to be funded primarily in the manner
1 24 provided in section 403.19, or if such amendment proposes to
1 25 add a project to an urban renewal plan or proposes to add
1 26 territory to an urban renewal area or proposes to sever
1 27 territory from an urban renewal area.
1 28 Sec. 2. Section 403.5, Code 2007, is amended by adding the
1 29 following new subsection:
1 30 NEW SUBSECTION. 5A. Before an urban renewal plan may be
1 31 amended to add a project to the plan, the proposed amendment
1 32 to the plan shall be submitted to the registered voters of the
1 33 municipality. If the amendment to the plan is approved at
1 34 election, the governing body of the municipality may proceed
1 35 with adoption of the amendment to the plan. If the proposed
2 1 amendment to the plan is not approved at election, the same or
2 2 similar proposal shall not be submitted to the voters for a
2 3 period of twelve months from the date of the election.
2 4 Sec. 3. Section 403.5, subsection 6, Code 2007, is amended
2 5 to read as follows:
2 6 6. Upon the approval by a municipality of an urban renewal
2 7 plan or of any modification thereof amendment to an urban
2 8 renewal plan or upon approval of an amendment to an urban
2 9 renewal plan pursuant to subsection 5A, such plan or
2 10 modification amendment shall be deemed to be in full force and
2 11 effect for the respective urban renewal area, and the
2 12 municipality may then cause such plan or modification
2 13 amendment to be carried out in accordance with its terms.
2 14 Sec. 4. NEW SECTION. 403.5A DURATIONAL LIMITATIONS ON
2 15 URBAN RENEWAL AREAS.
2 16 1. Notwithstanding section 403.17, subsection 10, if an
2 17 urban renewal plan for an urban renewal area is based upon a
2 18 finding that the area is an economic development area, then
2 19 the division of revenue provided in section 403.19 and stated
2 20 in the plan shall be limited to fifteen years beginning with
2 21 the calendar year following the calendar year in which the
2 22 municipality first certifies to the county auditor the amount
2 23 of any loans, advances, indebtedness, or bonds which qualify
2 24 for payment from the division of revenue provided in section
2 25 403.19. This subsection applies to urban renewal plans for
2 26 economic development areas adopted on or after January 1,
2 27 2008.
2 28 2. If an urban renewal plan for an urban renewal area is
2 29 based upon a finding that the area is a slum or blighted area,
2 30 then the division of revenue provided in section 403.19 and
2 31 stated in the plan shall be limited to fifteen years beginning
2 32 with the calendar year following the calendar year in which
2 33 the municipality first certifies to the county auditor the
2 34 amount of any loans, advances, indebtedness, or bonds which
2 35 qualify for payment from the division of revenue provided in
3 1 section 403.19. This subsection applies to urban renewal
3 2 plans for slum or blighted areas adopted on or after January
3 3 1, 2008.
3 4 Sec. 5. Section 403.6, subsection 6, paragraph b, Code
3 5 2007, is amended to read as follows:
3 6 b. Urban renewal plans adopted, or amended, pursuant to
3 7 the requirements of section 403.5;
3 8 Sec. 6. Section 403.6, subsection 12, Code 2007, is
3 9 amended to read as follows:
3 10 12. To approve and amend urban renewal plans, subject to
3 11 the requirements of section 403.5.
3 12 Sec. 7. EFFECTIVE AND APPLICABILITY DATE. The sections of
3 13 this Act amending section 403.5, subsections 5 and 6, enacting
3 14 section 403.5, subsection 5A, and amending section 403.6,
3 15 being deemed of immediate importance, take effect upon
3 16 enactment and apply to amendments to urban renewal plans if
3 17 such amendments are proposed by a municipality on or after the
3 18 effective date of this Act.
3 19 EXPLANATION
3 20 This bill makes changes relating to urban renewal plans and
3 21 areas.
3 22 The bill provides that a project may be added to an urban
3 23 renewal plan, or territory added to or severed from an urban
3 24 renewal area, only by an amendment to the urban renewal plan.
3 25 The bill also provides that before an urban renewal plan may
3 26 be amended to add a project to the plan, the proposed
3 27 amendment must be approved at an election. If the proposal is
3 28 not approved at an election, the same or similar proposal
3 29 shall not be submitted to the voters for a period of twelve
3 30 months from the date of the election. These provisions of the
3 31 bill take effect upon enactment and apply to amendments to
3 32 urban renewal plans if such amendments are proposed on or
3 33 after the effective date.
3 34 The bill establishes a durational limitation of 15 years
3 35 for dividing revenue in an urban renewal area designated as an
4 1 economic development area or as a slum or blighted area and
4 2 established by an urban renewal plan adopted by a municipality
4 3 on or after January 1, 2008. Currently, a division of revenue
4 4 in urban renewal areas designated as economic development
4 5 areas and established by an urban renewal plan adopted on or
4 6 after January 1, 1995, is limited in duration to 20 years.
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