House File 131 - Introduced



                                       HOUSE FILE       
                                       BY  REASONER


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to approval of proposed urban renewal plans and
  2    amendments to urban renewal plans, and including effective and
  3    applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1674HH 83
  6 sc/rj/5

PAG LIN



  1  1    Section 1.  Section 403.5, subsection 2, Code 2009, is
  1  2 amended to read as follows:
  1  3    2.  a.  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 the local governing body may proceed with the hearing on the
  1 18 proposed urban renewal plan prescribed by subsection 3.
  1 19    b.  Prior to its approval of an urban renewal plan which
  1 20 provides for a division of revenue pursuant to section 403.19,
  1 21 the municipality shall mail the proposed plan by regular mail
  1 22 to the affected taxing entities.  The municipality shall
  1 23 include with the proposed plan notification of a consultation
  1 24 to be held between the municipality and affected taxing
  1 25 entities prior to the public hearing on the urban renewal
  1 26 plan.  Each affected taxing entity may appoint a
  1 27 representative to attend the consultation.  The consultation
  1 28 may include a discussion of the estimated growth in valuation
  1 29 of taxable property included in the proposed urban renewal
  1 30 area, the fiscal impact of the division of revenue on the
  1 31 affected taxing entities, the estimated impact on the
  1 32 provision of services by each of the affected taxing entities
  1 33 in the proposed urban renewal area, and the duration of any
  1 34 bond issuance included in the plan.  The designated
  1 35 representative of the affected taxing entity may make written
  2  1 recommendations for modification to the proposed division of
  2  2 revenue urban renewal plan no later than seven days following
  2  3 the date of the consultation.  The representative of the
  2  4 municipality shall, no later than seven days prior to the
  2  5 public hearing on the urban renewal plan, submit a written
  2  6 response to the affected taxing entity addressing the
  2  7 recommendations for modification to the proposed division of
  2  8 revenue urban renewal plan.
  2  9    c.  The governing body of each affected taxing entity
  2 10 shall, upon conclusion of the consultation process and without
  2 11 regard to whether the entity participated in the consultation
  2 12 process, adopt a resolution approving or rejecting the
  2 13 proposed urban renewal plan.  Upon receipt of the
  2 14 recommendations of the planning commission or, if no
  2 15 recommendations are received within the thirty days, then
  2 16 without such recommendations, and upon receipt of a resolution
  2 17 from the governing body of each affected taxing entity, the
  2 18 governing body of the city may proceed with the hearing on the
  2 19 proposed urban renewal plan pursuant to subsection 3.
  2 20 However, without the receipt of resolutions approving the
  2 21 urban renewal plan from a majority of the affected taxing
  2 22 entities, the governing body of the municipality shall not
  2 23 proceed with the proposed urban renewal plan.
  2 24    Sec. 2.  Section 403.5, subsections 5, 6, and 7, Code 2009,
  2 25 are amended to read as follows:
  2 26    5.  An urban renewal plan may be modified amended at any
  2 27 time:  Provided, that.  However, if modified the urban renewal
  2 28 plan is amended after the lease or sale by the municipality of
  2 29 real property in the urban renewal project area, such
  2 30 modification amendment may be conditioned upon such approval
  2 31 of the owner, lessee or successor in interest as the
  2 32 municipality may deem advisable, and in any event such
  2 33 modification amendment shall be subject to such rights at law
  2 34 or in equity as a lessee or purchaser, or a lessee's or
  2 35 purchaser's successor or successors in interest, may be
  3  1 entitled to assert.  The A project may be added to an urban
  3  2 renewal plan only by an amendment to the plan.  Territory may
  3  3 be added to, or severed from, an urban renewal area only by an
  3  4 amendment to the urban renewal plan.  When amending an urban
  3  5 renewal plan, the municipality shall comply with the
  3  6 notification and consultation process provided in this
  3  7 section, including the requirement that a majority of the
  3  8 affected taxing entities approves the proposed amendment,
  3  9 prior to the approval of any amendment or modification to an
  3 10 adopted urban renewal plan if such amendment or modification
  3 11 provides for refunding bonds or refinancing resulting in an
  3 12 increase in debt service or provides for the issuance of bonds
  3 13 or other indebtedness, to be funded primarily in the manner
  3 14 provided in section 403.19, or if such amendment proposes to
  3 15 add a project to an urban renewal plan or proposes to add
  3 16 territory to an urban renewal area or proposes to sever
  3 17 territory from an urban renewal area.
  3 18    6.  Upon the approval by a municipality of an urban renewal
  3 19 plan or of any modification thereof amendment to an urban
  3 20 renewal plan, such plan or modification amendment shall be
  3 21 deemed to be in full force and effect for the respective urban
  3 22 renewal area, and the municipality may then cause such plan or
  3 23 modification amendment to be carried out in accordance with
  3 24 its terms.
  3 25    7.  Notwithstanding any other provisions of this chapter,
  3 26 where the local governing body certifies that an area is in
  3 27 need of redevelopment or rehabilitation as a result of a
  3 28 flood, fire, hurricane, earthquake, storm, or other
  3 29 catastrophe respecting which the governor of the state has
  3 30 certified the need for disaster assistance under Pub. L. No.
  3 31 81=875, Eighty=first Congress, 64 Stat. 1109, codified at 42
  3 32 U.S.C. } 1855==1855g or other federal law, the local governing
  3 33 body may approve an urban renewal plan and an urban renewal
  3 34 project with respect to such area without regard to the
  3 35 provisions of subsection 4 and without regard to provisions of
  4  1 this section requiring notification and consultation and
  4  2 approval by the affected taxing entities, a general plan for
  4  3 the municipality, and a public hearing on the urban renewal
  4  4 plan or project.
  4  5    Sec. 3.  Section 403.6, subsection 6, paragraph b, Code
  4  6 2009, is amended to read as follows:
  4  7    b.  Urban renewal plans adopted, or amended, pursuant to
  4  8 the requirements of section 403.5;
  4  9    Sec. 4.  Section 403.6, subsection 12, Code 2009, is
  4 10 amended to read as follows:
  4 11    12.  To approve and amend urban renewal plans, subject to
  4 12 the requirements of section 403.5.
  4 13    Sec. 5.  EFFECTIVE AND APPLICABILITY DATES.
  4 14    1.  The section of this Act amending section 403.5,
  4 15 subsection 2, being deemed of immediate importance, takes
  4 16 effect upon enactment and applies to urban renewal plans
  4 17 proposed on or after the effective date.
  4 18    2.  The section of this Act amending section 403.5,
  4 19 subsections 5, 6, and 7, being deemed of immediate importance,
  4 20 takes effect upon enactment and applies to amendments to urban
  4 21 renewal plans, if such amendments are proposed by a
  4 22 municipality on or after the effective date.
  4 23                           EXPLANATION
  4 24    This bill provides that a proposed urban renewal plan, or
  4 25 an amendment to an existing plan, shall not proceed unless a
  4 26 majority of the affected taxing entities, by resolution,
  4 27 approves the proposed plan or amendment.  The bill also
  4 28 provides that a project may be added to an urban renewal plan,
  4 29 or territory added to or severed from an urban renewal area,
  4 30 only by an amendment to the urban renewal plan.
  4 31    The bill takes effect upon enactment and applies to urban
  4 32 renewal plans proposed on or after the effective date and to
  4 33 amendments to any urban renewal plan, if such amendments are
  4 34 proposed on or after the effective date.
  4 35 LSB 1674HH 83
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