House File 2376 - Introduced HOUSE FILE 2376 BY COMMITTEE ON ECONOMIC GROWTH (SUCCESSOR TO HF 2107) A BILL FOR An Act providing for the severance and annexation of real 1 property upon petition of the real property owners and 2 approval of the city development board. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5615HV (2) 83 md/sc

H.F. 2376 Section 1. NEW SECTION . 368.25A Boundary adjustment between 1 cities by petition and consent. 2 1. A real property owner within the boundaries of a city 3 may file a petition for severance with the city council if the 4 petitioner’s real property, if severed, would be eligible for 5 annexation by a different city and if such annexation would 6 not create an island. Contiguous property owners may file a 7 combined petition under this section. 8 2. The petition shall be filed with the city council of the 9 city from which severance is sought and the city council of 10 the city to which annexation is requested. The petition shall 11 be in substantially the form required of an application under 12 section 368.7. 13 3. If the city councils of both cities approve the petition, 14 the petition shall be filed with the board. Approval by either 15 city council may be conditioned upon an agreement entered into 16 by the cities providing for the transition of property taxes 17 or the sharing of property tax revenues from the real property 18 described in the petition for a period not to exceed forty 19 years and providing for all necessary zoning ordinance changes 20 within a period not to exceed ten years. An agreement between 21 cities under this subsection shall be filed with the board at 22 the same time the approved petition is filed. An agreement 23 may include additional transition provisions relating to the 24 transfer or sharing of property tax revenues for property 25 outside the boundaries of the territory described in the 26 petition and any other provisions deemed by the cities to be in 27 the public interest if such actions are within the authority 28 of the cities. 29 4. Following receipt of a petition, the board shall initiate 30 proceedings to sever the territory from the city in which it 31 is located and annex the territory to the annexing city. The 32 board shall notify both cities of the severance and annexation 33 proceedings and shall hold a public hearing on the severance, 34 annexation, and any agreement between the cities pursuant to 35 -1- LSB 5615HV (2) 83 md/sc 1/ 3

H.F. 2376 subsection 3. The board shall give notice of the hearing 1 in the same manner as notice of a public meeting in section 2 368.11, subsection 5. 3 5. The board may only approve the petition if the board 4 also approves any agreements between the cities pursuant to 5 subsection 3, and filed with the board. The board may only 6 approve or deny the severance and annexation of the territory 7 described in the petition, and the order of the board approving 8 the petition is not subject to approval at an election. 9 6. The severance and annexation approved by the board is 10 completed when the board files with the secretary of state 11 and the clerk of each city involved in the severance and 12 annexation, and records with the recorder of each county which 13 contains a portion of any city or territory involved, copies of 14 the proceedings including the petition, any agreements between 15 the cities, the order of the board approving the petition, 16 proofs of service and publication of required notices, and any 17 other material deemed by the board to be of primary importance 18 to the proceedings. The board shall also file with the state 19 department of transportation a copy of the map and legal land 20 description of each completed severance and annexation under 21 this section. 22 EXPLANATION 23 This bill allows a real property owner within the boundaries 24 of a city to file a petition for severance with the city 25 council if the petitioner’s real property would be eligible 26 for annexation by a different city if severed and if such 27 annexation would not create an island. The bill allows 28 contiguous property owners to file a combined petition under 29 this section. 30 The bill requires the petition to be filed with both the city 31 from which severance is sought and the city to which annexation 32 is requested. If both cities approve the petition, the 33 petition is filed with the city development board. Approval 34 by either city council may be conditioned upon an agreement 35 -2- LSB 5615HV (2) 83 md/sc 2/ 3

H.F. 2376 between the cities providing for, among other specified 1 provisions, the transition or sharing of property tax revenues 2 from the real property described in the petition for a period 3 not to exceed forty years. 4 Upon receiving a petition approved by both city councils, 5 the city development board must initiate proceedings to 6 sever and annex the owner’s real property as requested in the 7 petition. The city development board is required to provide 8 notice to both cities of the proceedings and to hold a public 9 hearing. 10 The bill only allows the city development board to approve 11 the severance and annexation requested in the petition if 12 the board also approves the agreement between the cities, if 13 applicable. The bill also provides that the city development 14 board may only approve or deny the severance and annexation 15 of the territory described in the petition and that the order 16 is not subject to approval at an election. A severance and 17 annexation under the bill is complete when the city development 18 board files and records certain documents with the city 19 clerks, the county recorders, and the state department of 20 transportation. 21 -3- LSB 5615HV (2) 83 md/sc 3/ 3