House Study Bill 540 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON SANDS) A BILL FOR An Act relating to city and county authority to address slum 1 and blight and economic development by modifying Iowa’s 2 urban renewal law, providing for a future repeal of Iowa’s 3 urban renewal law, authorizing cities and counties to 4 establish project development areas and to utilize tax 5 increment financing for certain projects, and including 6 effective date provisions. 7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 8 TLSB 5418YC (14) 84 md/sc
H.F. _____ DIVISION I 1 IOWA’S URBAN RENEWAL LAW 2 Section 1. Section 403.4, Code 2011, is amended to read as 3 follows: 4 403.4 Resolution of necessity. 5 1. No municipality shall exercise the authority herein 6 conferred upon municipalities by this chapter until after its 7 local governing body shall have adopted a resolution finding 8 that: 9 1. a. One or more slum, blighted , or economic development 10 areas exist in the municipality. 11 2. b. The rehabilitation, conservation, redevelopment, 12 development, or a combination thereof, of the area is necessary 13 in the interest of the public health, safety, or welfare of the 14 residents of the municipality. 15 2. A local governing body shall not adopt a resolution under 16 this section on or after the effective date of this Act. 17 Sec. 2. Section 403.5, subsection 4, paragraph b, 18 subparagraph (1), subparagraph division (a), subparagraph 19 subdivision (ii), Code 2011, is amended to read as follows: 20 (ii) That conditions of slum or blight in the municipality 21 and the shortage of decent, safe, and sanitary housing cause or 22 contribute to an increase in and spread of disease and crime, 23 so as to constitute a menace to the public health, safety, 24 morals, or welfare. 25 Sec. 3. Section 403.5, Code 2011, is amended by adding the 26 following new subsection: 27 NEW SUBSECTION . 4A. A municipality shall not approve an 28 urban renewal plan on or after the effective date of this Act. 29 A municipality may, subject to subsection 5, amend an urban 30 renewal plan in effect on the effective date of this Act. 31 Sec. 4. Section 403.5, subsections 5 and 6, Code 2011, are 32 amended to read as follows: 33 5. a. An Subject to the limitation in paragraph “b” , 34 an urban renewal plan may be modified amended at any 35 -1- LSB 5418YC (14) 84 md/sc 1/ 80
H.F. _____ time : Provided, that . However, if modified the urban renewal 1 plan is amended after the lease or sale by the municipality 2 of real property in the urban renewal project area, such 3 modification amendment may be conditioned upon such approval of 4 the owner, lessee or successor in interest as the municipality 5 may deem advisable, and in any event such modification 6 amendment shall be subject to such rights at law or in 7 equity as a lessee or purchaser, or a lessee’s or purchaser’s 8 successor or successors in interest, may be entitled to 9 assert. The municipality shall comply with the notification 10 and consultation process provided in this section prior to the 11 approval of any amendment or modification to an adopted urban 12 renewal plan if such amendment or modification provides for 13 refunding bonds or refinancing resulting in an increase in 14 debt service or provides for the issuance of bonds or other 15 indebtedness, to be funded primarily in the manner provided in 16 section 403.19 . 17 b. An urban renewal plan in effect on the effective date of 18 this Act shall not be amended on or after the effective date of 19 this Act if such amendment would result in an extension of the 20 date of termination otherwise required for the urban renewal 21 area under section 403.24. 22 6. Upon the approval by a municipality of an urban renewal 23 plan or of any modification thereof amendment to an urban 24 renewal plan , such plan or modification amendment shall be 25 deemed to be in full force and effect for the respective urban 26 renewal area, and the municipality may then cause such plan or 27 modification amendment to be carried out in accordance with its 28 terms. 29 Sec. 5. Section 403.6, subsection 6, unnumbered paragraph 30 1, Code 2011, is amended to read as follows: 31 Within its area of operation, to make or have made all 32 surveys and planning necessary to the carrying out of the 33 purposes of this chapter , and to contract with any person in 34 making and carrying out of such planning, and to adopt or 35 -2- LSB 5418YC (14) 84 md/sc 2/ 80
H.F. _____ approve, modify and amend , such planning. Such planning may 1 include, without limitation: 2 Sec. 6. Section 403.6, subsection 6, paragraph b, Code 2011, 3 is amended to read as follows: 4 b. Urban renewal plans ; adopted or amended, pursuant to the 5 requirements of section 403.5. 6 Sec. 7. Section 403.6, subsection 12, Code 2011, is amended 7 to read as follows: 8 12. To approve and amend urban renewal plans , subject to the 9 requirements of section 403.5 . 10 Sec. 8. Section 403.12, subsection 1, paragraph e, Code 11 2011, is amended to read as follows: 12 e. Enter into agreements, which may extend over any period, 13 notwithstanding any provision or rule of law to the contrary 14 subject to the limitations of this chapter , with a municipality 15 or other public body respecting action to be taken pursuant 16 to any of the powers granted by this chapter , including the 17 furnishing of funds or other assistance in connection with an 18 urban renewal project ; . 19 Sec. 9. Section 403.14, subsection 2, paragraph b, Code 20 2011, is amended to read as follows: 21 b. The power to approve urban renewal plans and 22 modifications amendments thereof; 23 Sec. 10. Section 403.17, Code 2011, is amended by adding the 24 following new subsection: 25 NEW SUBSECTION . 12A. “Indebtedness” includes but is not 26 limited to a written agreement to suspend, abate, exempt, 27 rebate, refund, or reimburse property taxes, to make a direct 28 payment of taxes, or to provide a grant for property taxes 29 paid. 30 Sec. 11. Section 403.17, subsection 23, Code 2011, is 31 amended to read as follows: 32 23. “Urban renewal area” means a slum area, blighted area, 33 economic development area, or combination of the areas, which 34 the local governing body designates as appropriate for an urban 35 -3- LSB 5418YC (14) 84 md/sc 3/ 80
H.F. _____ renewal project. An urban renewal area shall not include 1 territory located within a project development area under 2 chapter 402. 3 Sec. 12. Section 403.19, subsection 2, Code Supplement 4 2011, is amended to read as follows: 5 2. That portion of the taxes each year in excess of such 6 amount shall be allocated to and when collected be paid into 7 a special fund of the municipality to pay the principal of 8 and interest on loans, moneys advanced to, or indebtedness, 9 whether funded, refunded, assumed, or otherwise, including 10 bonds issued under the authority of section 403.9, subsection 11 1 , incurred by the municipality to finance or refinance, in 12 whole or in part, an urban renewal project within the area, 13 and to provide assistance for low and moderate income family 14 housing as provided in section 403.22 , except that . However, 15 taxes for the regular and voter-approved physical plant and 16 equipment levy of a school district imposed pursuant to section 17 298.2 , and taxes for the payment of bonds and interest of each 18 taxing district must , and the foundation property tax imposed 19 pursuant to section 257.3 to the extent provided in subsection 20 9, shall be collected against all taxable property within the 21 taxing district without limitation by the provisions of this 22 subsection . However, all or a portion of the taxes for the 23 physical plant and equipment levy shall be paid by the school 24 district to the municipality if the auditor certifies to the 25 school district by July 1 the amount of such levy that is 26 necessary to pay the principal and interest on bonds issued by 27 the municipality to finance an urban renewal project, which 28 bonds were issued before July 1, 2001. Indebtedness incurred 29 to refund bonds issued prior to July 1, 2001, shall not be 30 included in the certification. Such school district shall pay 31 over the amount certified by November 1 and May 1 of the fiscal 32 year following certification to the school district subsection 33 8 applies . Unless and until the total assessed valuation of 34 the taxable property in an urban renewal area exceeds the 35 -4- LSB 5418YC (14) 84 md/sc 4/ 80
H.F. _____ total assessed value of the taxable property in such area as 1 shown by the last equalized assessment roll referred to in 2 subsection 1 , all of the taxes levied and collected upon the 3 taxable property in the urban renewal area shall be paid into 4 the funds for the respective taxing districts as taxes by 5 or for the taxing districts in the same manner as all other 6 property taxes. When such loans, advances, indebtedness, and 7 bonds, if any, and interest thereon, have been paid, all moneys 8 thereafter received from taxes upon the taxable property in 9 such urban renewal area shall be paid into the funds for the 10 respective taxing districts in the same manner as taxes on all 11 other property. In those instances where a school district 12 has entered into an agreement pursuant to section 279.64 for 13 sharing of school district taxes levied and collected from 14 valuation described in this subsection and released to the 15 school district, the school district shall transfer the taxes 16 as provided in the agreement. 17 Sec. 13. Section 403.19, subsection 6, paragraph a, 18 subparagraph (2), Code Supplement 2011, is amended to read as 19 follows: 20 (2) A certification made under this paragraph “a” shall 21 include the date that the individual loans, advances, 22 indebtedness, or bonds were initially approved by the governing 23 body of the municipality and a schedule of payments of such 24 amounts . 25 Sec. 14. Section 403.19, subsection 8, Code Supplement 26 2011, is amended to read as follows: 27 8. a. For any fiscal year, a municipality may certify to 28 the county auditor for physical plant and equipment revenue 29 necessary for payment of principal and interest on bonds issued 30 prior to July 1, 2001, only if the municipality certified for 31 such revenue for the fiscal year beginning July 1, 2000. A 32 municipality shall not certify to the county auditor for a 33 school district more than the amount the municipality certified 34 for the fiscal year beginning July 1, 2000. If for any fiscal 35 -5- LSB 5418YC (14) 84 md/sc 5/ 80
H.F. _____ year a municipality fails to certify to the county auditor 1 for a school district by July 1 the amount of physical plant 2 and equipment revenue necessary for payment of principal 3 and interest on such bonds, as provided in subsection 2 , 4 the school district is not required to pay over the revenue 5 to the municipality. The county auditor shall immediately 6 certify to the school district the amount of such levy that is 7 necessary to pay the principal and interest on bonds issued by 8 the municipality to finance an urban renewal project, which 9 bonds were issued prior to July 1, 2001. Indebtedness incurred 10 to refund bonds issued prior to July 1, 2001, shall not be 11 included in the certification. Such school district shall pay 12 over the amount certified by November 1 and May 1 of the fiscal 13 year following certification to the school district. 14 b. If a school district and a municipality are unable to 15 agree on the amount of physical plant and equipment revenue 16 certified by the municipality for the fiscal year beginning 17 July 1, 2001, either party may request that the state appeal 18 board review and finally pass upon the amount that may 19 be certified. Such appeals must be presented in writing 20 to the state appeal board no later than July 31 following 21 certification. The burden shall be on the municipality to 22 prove that the physical plant and equipment levy revenue is 23 necessary to pay principal and interest on bonds issued prior 24 to July 1, 2001. A final decision must be issued by the state 25 appeal board no later than the following October 1. 26 Sec. 15. Section 403.19, Code Supplement 2011, is amended by 27 adding the following new subsections: 28 NEW SUBSECTION . 9. For fiscal years beginning on or after 29 July 1, 2018, the foundation property tax imposed pursuant 30 to section 257.3, shall for the purposes of subsection 2, 31 be collected against all taxable property within the taxing 32 district without limitation and paid to the school district in 33 the following amounts: 34 a. For the fiscal year beginning July 1, 2018, one dollar 35 -6- LSB 5418YC (14) 84 md/sc 6/ 80
H.F. _____ and eight cents per thousand dollars of assessed value. 1 b. For the fiscal year beginning July 1, 2019, two dollars 2 and sixteen cents per thousand dollars of assessed value. 3 c. For the fiscal year beginning July 1, 2020, three dollars 4 and twenty-four cents per thousand dollars of assessed value. 5 d. For the fiscal year beginning July 1, 2021, four dollars 6 and thirty-two cents per thousand dollars of assessed value. 7 e. For fiscal years beginning on or after July 1, 2022, five 8 dollars and forty cents per thousand dollars of assessed value 9 or, if applicable, the specified foundation property tax under 10 section 257.3, subsection 4. 11 NEW SUBSECTION . 10. A municipality shall not adopt an 12 ordinance providing for a division of revenue under this 13 section on or after the effective date of this Act. However, a 14 municipality may, on or after the effective date of this Act, 15 amend an existing ordinance that provides for a division of 16 revenue under this section, subject to the limitations in this 17 chapter. 18 Sec. 16. Section 403.21, Code Supplement 2011, is amended by 19 adding the following new subsection: 20 NEW SUBSECTION . 4. This section shall not apply to joint 21 agreements entered into or joint plans adopted on or after 22 the effective date of this Act. Section 402.21 shall apply 23 to joint agreements entered into or joint plans adopted on or 24 after the effective date of this Act. 25 Sec. 17. NEW SECTION . 403.23 Reporting —— audit. 26 1. On or before December 1 of each year, each municipality 27 that has established an urban renewal area shall report to the 28 department of management and to the appropriate county auditor 29 the total amount of loans, advances, indebtedness, or bonds 30 outstanding at the close of the most recently ended fiscal 31 year, which qualify for payment from the special fund created 32 in section 403.19, including interest negotiated on such loans, 33 advances, indebtedness, or bonds. The amount of each loan, 34 advance, indebtedness, or bond shall also be identified by the 35 -7- LSB 5418YC (14) 84 md/sc 7/ 80
H.F. _____ urban renewal area and by the specific urban renewal project 1 for which such amount was incurred. 2 2. At the request of the legislative services agency, 3 the department of management shall provide the reports and 4 additional information to the legislative services agency. The 5 department of management, in consultation with the legislative 6 services agency, shall determine reporting criteria and shall 7 prepare a form for reports filed with the department pursuant 8 to this section. The department shall make the form available 9 by electronic means. 10 3. If a municipality does not file the report with the 11 department of management and the county auditor by December 1, 12 the county treasurer shall withhold disbursement of incremental 13 taxes to the municipality until the report is filed beginning 14 immediately with the next following disbursement of taxes. 15 The county auditor shall notify the county treasurer if taxes 16 are to be withheld. The county auditor and county treasurer 17 shall not be liable for damages to the municipality or to any 18 third party resulting from the withholding of taxes under this 19 subsection. 20 4. a. Each municipality that has established an urban 21 renewal area which utilizes, or which plans to utilize, 22 revenues from the special fund created in section 403.19, 23 shall in each odd-numbered year contract with or employ 24 the auditor of state or certified public accountants for an 25 audit or examination of the condition of its special fund 26 and all financial transactions related thereto. The audit 27 or examination shall include a determination of whether 28 the municipality is in compliance with the laws, rules, 29 regulations, and contractual agreements applicable to the 30 special fund. Such an audit is also mandatory on application 31 by one hundred or more taxpayers, or if there are fewer than 32 six hundred sixty-seven taxpayers in the municipality, then by 33 fifteen percent of the taxpayers. Payment for the audit or 34 examination shall be made from the proper public funds of the 35 -8- LSB 5418YC (14) 84 md/sc 8/ 80
H.F. _____ municipality. 1 b. The audit or examination required under paragraph “a” 2 may be included as a part of another audit of the municipality 3 conducted under another provision of law. 4 Sec. 18. NEW SECTION . 403.24 Termination. 5 All urban renewal areas established under this chapter, all 6 applicable urban renewal plans, all urban renewal projects 7 within those urban renewal areas, and all ordinances providing 8 for a division of revenue under section 403.19, shall terminate 9 and be of no further force and effect on or before June 30, 10 2023, unless an urban renewal area providing for a division 11 of revenue pursuant to section 403.19, is subject to the 12 twenty-year limitation under section 403.17, subsection 10, 13 and in such case, the urban renewal area, urban renewal plan, 14 and all applicable projects and ordinances shall terminate 15 and be of no further force and effect upon expiration of the 16 twenty-year period. 17 Sec. 19. NEW SECTION . 403.25 Future repeal. 18 This chapter is repealed June 30, 2035. 19 Sec. 20. EFFECTIVE UPON ENACTMENT. This division of this 20 Act, being deemed of immediate importance, takes effect upon 21 enactment. 22 DIVISION II 23 PROJECT DEVELOPMENT AREAS —— TAX INCREMENT FINANCING 24 Sec. 21. NEW SECTION . 402.1 Title. 25 This chapter shall be known and may be cited as the “Project 26 Development Area Law” . 27 Sec. 22. NEW SECTION . 402.2 Declaration of policy. 28 1. It is found and declared that there exists in this state 29 the continuing need for programs to alleviate and prevent slum 30 and blighted areas, conditions of unemployment, and shortages 31 of affordable housing and residential development for low and 32 moderate income families. Accordingly, it is necessary to 33 assist and retain local industries and commercial enterprises 34 to strengthen and revitalize the economy of this state and its 35 -9- LSB 5418YC (14) 84 md/sc 9/ 80
H.F. _____ municipalities, provide means and methods for the encouragement 1 and assistance of industrial and commercial enterprises 2 in locating, purchasing, constructing, reconstructing, 3 modernizing, improving, maintaining, repairing, furnishing, 4 equipping, and expanding in this state and its municipalities, 5 provide means and methods for completion of public improvements 6 related to housing and residential development, and provide 7 means and methods for the construction of housing for low 8 and moderate income families. It is therefore necessary to 9 authorize local governing bodies to designate areas of a 10 municipality as project development areas for the purpose of 11 undertaking projects related to these policies, and the powers 12 granted in this chapter constitute the performance of essential 13 public purposes for this state and its municipalities. 14 2. It is further found and declared that the powers 15 conferred by this chapter are for public uses and purposes for 16 which public money may be expended and for which the power of 17 eminent domain, to the extent authorized, and police power may 18 be exercised. The necessity in the public interest for the 19 provisions herein enacted is hereby declared as a matter of 20 legislative determination. 21 Sec. 23. NEW SECTION . 402.3 Municipal program. 22 The local governing body of a municipality may formulate for 23 the municipality a workable program for utilizing appropriate 24 private and public resources to establish a project development 25 area and undertake a project under this chapter. Such a 26 program may include, without limitation, provisions for: 27 1. The prevention of the spread of slum and blight into 28 areas of the municipality which are free from slum and blight. 29 2. The rehabilitation, redevelopment, or conservation of 30 slum and blighted areas or portions thereof. 31 3. The clearance of slum and blighted areas or portions 32 thereof. 33 4. The redevelopment of slum and blighted areas. 34 Sec. 24. NEW SECTION . 402.4 Resolution of necessity. 35 -10- LSB 5418YC (14) 84 md/sc 10/ 80
H.F. _____ A municipality shall not exercise the authority conferred 1 upon municipalities by this chapter until after its local 2 governing body has adopted a resolution finding that: 3 1. One or more slum, blighted, or economic development areas 4 exist in the municipality. 5 2. The rehabilitation, conservation, redevelopment, 6 development, or a combination thereof, of such areas is 7 necessary in the interest of the public health, safety, or 8 welfare of the residents of the municipality. 9 Sec. 25. NEW SECTION . 402.5 Project development plan. 10 1. a. A municipality shall not approve a project for 11 a project development area unless the governing body has, 12 by resolution, determined the area to be a slum area, 13 blighted area, economic development area, or a combination 14 of those areas, and designated the area as appropriate for a 15 project. The local governing body shall not approve a project 16 development plan until a general plan for the municipality has 17 been prepared. For this purpose and other municipal purposes, 18 authority is vested in every municipality to prepare, to 19 adopt, and to revise from time to time, a general plan for the 20 physical development of the municipality as a whole, giving 21 due regard to the environs and metropolitan surroundings. A 22 municipality shall not acquire real property for a project 23 unless the local governing body has approved the project 24 development plan in accordance with subsection 4. 25 b. The actual value in the aggregate of all property located 26 in project development areas established by a municipality 27 shall not exceed twenty-five percent of the total actual value 28 of all property within the municipality’s area of operation. 29 2. a. The municipality may itself prepare or cause 30 to be prepared a project development plan. Any person or 31 agency, public or private, may also submit such a plan to a 32 municipality. Prior to its approval of a project development 33 plan, the local governing body shall submit such plan to the 34 planning commission of the municipality, if any, for review and 35 -11- LSB 5418YC (14) 84 md/sc 11/ 80
H.F. _____ recommendations as to its conformity with the general plan for 1 the development of the municipality as a whole. The planning 2 commission shall submit its written recommendations with 3 respect to the proposed project development plan to the local 4 governing body within thirty days after receipt of the plan for 5 review. Upon receipt of the recommendations of the planning 6 commission or, if no recommendations are received within the 7 thirty days, then, without such recommendations, the local 8 governing body may proceed with the hearing on the proposed 9 project development plan prescribed by subsection 3, or with 10 notification, consultation, and approval process in paragraph 11 “b” if the plan provides for a division of revenue. 12 b. (1) Prior to its approval of a project development 13 plan which provides for a division of revenue pursuant to 14 section 402.19, the municipality shall mail the proposed 15 plan by regular mail to the affected taxing entities. The 16 municipality shall include with the proposed plan notification 17 of a consultation to be held between the municipality and 18 affected taxing entities prior to the public hearing on the 19 project development plan. Each affected taxing entity may 20 appoint a representative to attend the consultation. The 21 consultation may include a discussion of the estimated growth 22 in valuation of taxable property included in the proposed 23 project development area, the fiscal impact of the division 24 of revenue on the affected taxing entities, the estimated 25 impact on the provision of services by each of the affected 26 taxing entities in the proposed project development area, and 27 the duration of any bond issuance included in the plan. The 28 designated representative of the affected taxing entity may 29 make written recommendations for modification to the proposed 30 division of revenue no later than seven days following the date 31 of the consultation. The representative of the municipality 32 shall, no later than fourteen days after the consultation 33 held under this subparagraph, submit a written response to 34 the affected taxing entity addressing the recommendations for 35 -12- LSB 5418YC (14) 84 md/sc 12/ 80
H.F. _____ modification to the proposed division of revenue. 1 (2) If each affected taxing entity, following the 2 notification and consultation process under subparagraph (1), 3 approves by resolution the proposed division of revenue, the 4 local governing body may proceed with the public hearing in 5 subsection 3. Failure to approve or disapprove by resolution 6 the proposed division of revenue shall not be considered an 7 approval by the affected taxing entity. 8 3. The local governing body shall hold a public hearing 9 on a project development plan after public notice thereof by 10 publication in a newspaper having a general circulation in 11 the area of operation of the municipality. The notice shall 12 describe the time, date, place, and purpose of the hearing, 13 shall generally identify the project development area covered 14 by the plan, shall outline the general scope of the projects 15 and activities under consideration, and shall describe any 16 proposed division of revenue. A copy of the notice shall be 17 sent by ordinary mail to each affected taxing entity. 18 4. Following such hearing, the local governing body may 19 approve a project development plan if it finds that: 20 a. A feasible method exists for the location of families 21 who will be displaced from the project development area into 22 decent, safe, and sanitary dwelling accommodations within their 23 means and without undue hardship to such families. 24 b. The project development plan conforms to the general plan 25 of the municipality for development of the municipality as a 26 whole. 27 c. (1) The project development plan does not include 28 acquisition by the municipality of an area of open land 29 including but not limited to agricultural land, unless section 30 402.7, subsection 1, paragraph “a” , applies or unless such 31 area is to be developed for residential uses, there exists a 32 shortage of housing of sound standards and design with decency, 33 safety, and sanitation in the municipality, the acquisition 34 of the area is an integral part of and essential to the 35 -13- LSB 5418YC (14) 84 md/sc 13/ 80
H.F. _____ municipality, and that one or more of the following conditions 1 exist: 2 (a) The need for housing accommodations has been or will be 3 increased as a result of the clearance of slums in other areas, 4 including other portions of the project development area. 5 (b) Conditions of blight in the municipality and the 6 shortage of decent, safe, and sanitary housing cause or 7 contribute to an increase in and spread of disease and crime, 8 so as to constitute a menace to the public health, safety, 9 morals, or welfare. 10 (c) The provision of public improvements related to 11 housing and residential development will encourage housing 12 and residential development which is necessary to encourage 13 the retention or relocation of industrial and commercial 14 enterprises in this state and its municipalities. 15 (d) Acquisition of the area is necessary to provide for the 16 construction of housing for low and moderate income families. 17 (2) The acquisition of open land authorized in subparagraph 18 (1) may require the exercise of governmental action, as 19 provided in this chapter, because of defective or unusual 20 conditions of title, diversity of ownership, tax delinquency, 21 improper subdivisions, outmoded street patterns, deterioration 22 of site, economic disuse, unsuitable topography or faulty lot 23 layouts, or because of the need for the correlation of the 24 area with other areas of a municipality by streets and modern 25 traffic requirements, or any combination of such factors or 26 other conditions which retard development of the area. If such 27 governmental action involves the exercise of eminent domain 28 authority, the municipality is subject to the limitations of 29 this chapter and chapters 6A and 6B. 30 d. The proposed uses of the area are necessary and 31 appropriate to facilitate the proper growth and development of 32 the community in accordance with sound planning standards and 33 local community objectives. 34 5. A project development plan may be amended at any time. 35 -14- LSB 5418YC (14) 84 md/sc 14/ 80
H.F. _____ However, if the project development plan is amended after the 1 lease or sale by the municipality of real property in the 2 project development area, such amendment may be conditioned 3 upon such approval of the owner, lessee, or successor in 4 interest as the municipality may deem advisable, and in any 5 event such modification shall be subject to such rights at 6 law or in equity as a lessee or purchaser, or a lessee’s 7 or purchaser’s successor or successors in interest, may be 8 entitled to assert. The municipality shall comply with the 9 notification and consultation process provided in subsection 10 2, paragraph “b” , subparagraph (1), prior to the approval of 11 any amendment to an adopted project development plan if such 12 amendment provides for refunding bonds or refinancing resulting 13 in an increase in debt service or provides for the issuance 14 of bonds or other indebtedness, to be funded primarily in the 15 manner provided in section 402.19. 16 6. Upon the approval by a municipality of a project 17 development plan or of any amendment thereof, such plan or 18 amendment shall be deemed to be in full force and effect for 19 the respective project development area, and the municipality 20 may then cause such plan or amendment to be carried out in 21 accordance with its terms. 22 7. Notwithstanding any other provisions of this chapter, 23 where the local governing body certifies that an area is in 24 need of redevelopment or rehabilitation as a result of a flood, 25 fire, hurricane, earthquake, storm, or other catastrophe 26 respecting which the governor of the state has certified 27 the need for disaster assistance under Pub. L. No. 81-875, 28 Eighty-first Congress, 64 Stat. 1109, codified at 42 U.S.C. § 29 1855 1855g or other federal law, the local governing body may 30 approve a project development plan and a project with respect 31 to such area without regard to the provisions of subsection 32 4 and without regard to provisions of this section requiring 33 notification and consultation and approval by affected taxing 34 entities, and a public hearing on the project development plan 35 -15- LSB 5418YC (14) 84 md/sc 15/ 80
H.F. _____ or project. 1 Sec. 26. NEW SECTION . 402.6 Powers of municipality. 2 The provisions of this chapter shall be liberally 3 interpreted to achieve the purposes of this chapter. Every 4 municipality shall have all the powers necessary or convenient 5 to carry out and effectuate the purposes and provisions of this 6 chapter, including the following powers in addition to others 7 granted in this chapter: 8 1. To undertake and carry out projects within its area of 9 operation, to make and execute contracts and other instruments 10 necessary or convenient to the exercise of its powers under 11 this chapter, and to disseminate slum clearance and urban 12 renewal information. 13 2. To arrange or contract for the furnishing or repair by 14 any person of services, privileges, works, streets, roads, 15 public utilities or other facilities for or in connection with 16 a project; to install, construct, and reconstruct streets, 17 utilities, and other public improvements; and to agree to 18 any conditions, that it may deem reasonable and appropriate, 19 attached to federal financial assistance and imposed pursuant 20 to federal law relating to the determination of prevailing 21 salaries or wages or compliance with labor standards, in the 22 undertaking or carrying out of a project; and to include in any 23 contract let in connection with such a project, provisions to 24 fulfill such of said conditions as it may deem reasonable and 25 appropriate. 26 3. Within its area of operation, to enter into any 27 building or property in any project development area in 28 order to make inspections, surveys, appraisals, soundings 29 or test borings, and to obtain an order for this purpose 30 from a court of competent jurisdiction in the event entry is 31 denied or resisted; to acquire by purchase, lease, option, 32 gift, grant, bequest, devise, eminent domain, or otherwise, 33 any real property, or personal property for administrative 34 purposes, together with any improvements thereon; to hold, 35 -16- LSB 5418YC (14) 84 md/sc 16/ 80
H.F. _____ improve, clear, or prepare for redevelopment any such property; 1 to mortgage, pledge, hypothecate, or otherwise encumber or 2 dispose of any real property; to insure or provide for the 3 insurance of any real or personal property or operations of the 4 municipality against any risks or hazards, including the power 5 to pay premiums on any such insurance; and to enter into any 6 contracts necessary to effectuate the purposes of this chapter. 7 A municipality or other public body exercising powers under 8 this chapter with respect to the acquisition, clearance, or 9 disposition of property shall not be restricted by any other 10 statutory provision in the exercise of such powers unless 11 such statutory provision specifically states its application 12 to this chapter or unless this chapter specifically applies 13 restrictions contained in another statutory provision to the 14 powers that may be exercised under this chapter. 15 4. To invest any project development funds held in reserves 16 or sinking funds, or any such funds not required for immediate 17 disbursement, in property or securities in which a state bank 18 may legally invest funds subject to its control and to redeem 19 such bonds as have been issued pursuant to section 402.9 at the 20 redemption price established therein, or to purchase such bonds 21 at less than redemption price, all such bonds so redeemed or 22 purchased to be canceled. 23 5. To borrow money and to apply for and accept advances, 24 loans, grants, contributions, and any other form of financial 25 assistance from the federal government, the state, county, or 26 other public body, or from any sources, public or private, 27 for the purposes of this chapter, and to give such security 28 as may be required, and to enter into and carry out contracts 29 in connection therewith. A municipality may include in any 30 contract for financial assistance with the federal government 31 for a project such conditions imposed pursuant to federal laws 32 as the municipality may deem reasonable and appropriate and 33 which are not inconsistent with the purposes of the chapter. 34 6. Within its area of operation, to make or have made all 35 -17- LSB 5418YC (14) 84 md/sc 17/ 80
H.F. _____ surveys and planning necessary to the carrying out of the 1 purposes of this chapter, and to contract with any person in 2 making and carrying out of such planning, and to adopt or 3 approve, and amend, such planning. Such planning may include, 4 without limitation: 5 a. A general plan for the locality as a whole. 6 b. Project development plans. 7 c. Preliminary plans outlining projects and activities for 8 neighborhoods that are included within two or more project 9 development areas. 10 d. Planning for carrying out a program of voluntary 11 or compulsory repair and rehabilitation of buildings and 12 improvements. 13 e. Planning for the enforcement of state and local laws, 14 codes, and regulations relating to the use of land and the 15 use and occupancy of buildings and improvements and to the 16 compulsory repair, rehabilitation, demolition, or removal of 17 buildings and improvements. 18 f. Appraisals, title searches, surveys, studies, and other 19 planning and work necessary to prepare for the undertaking of 20 projects. The municipality is authorized to develop, test, and 21 report methods and techniques, and carry out demonstrations and 22 other activities, for the prevention and the elimination of 23 slums and urban blight and to apply for, accept, and utilize 24 grants of funds from the federal government for such purposes. 25 7. To plan for the relocation of persons, including 26 families, business concerns, and others, displaced by a 27 project, and to make relocation payments to or with respect to 28 such persons for moving expenses and losses of property for 29 which reimbursement or compensation is not otherwise made, 30 including the making of such payments financed by the federal 31 government. Other provisions of the Code notwithstanding, in 32 making such payments on projects not federally funded, the 33 municipality may pay relocation assistance benefits in the 34 amounts authorized by the Uniform Relocation Assistance and 35 -18- LSB 5418YC (14) 84 md/sc 18/ 80
H.F. _____ Real Property Acquisition Policies Act of 1970, Pub. L. No. 1 91-646, as amended by the Uniform Relocation Act Amendments of 2 1987, Tit. IV, Pub. L. No. 100-17. 3 8. To appropriate such funds and make such expenditures as 4 may be necessary to carry out the purposes of this chapter, 5 and to levy taxes and assessments for such purposes; to zone 6 or rezone any part of the municipality or make exceptions 7 from building regulations; and to enter into agreements, 8 respecting action to be taken by such municipality pursuant 9 to any of the powers granted by this chapter, with a project 10 development agency vested with project development powers under 11 section 402.14, which agreements may extend over any period, 12 notwithstanding any provision of law to the contrary. 13 9. To close, vacate, plan, or replan streets, roads, 14 sidewalks, ways, or other places, and to plan or replan any 15 part of the municipality. 16 10. Within its area of operation, to organize, coordinate, 17 and direct the administration of the provisions of this chapter 18 as they apply to such municipality in order that the objective 19 of remedying slum and blighted areas, and preventing the causes 20 thereof, within such municipality, may be most effectively 21 promoted and achieved; and to establish such new office or 22 offices of the municipality, or to reorganize existing offices, 23 in order to carry out such purpose most effectively. 24 11. To exercise all or any part of combination of powers 25 herein granted. 26 12. To approve project development plans. 27 13. To sell and convey real property in furtherance of a 28 project. 29 14. To supplement the rent required to be paid by any family 30 residing in the municipality forced to relocate by reason of 31 any governmental activity, provided it is necessary to do so 32 in order to house such family in decent, safe, and sanitary 33 housing and provided further that such family does not have 34 sufficient means, as determined by the municipality, to pay the 35 -19- LSB 5418YC (14) 84 md/sc 19/ 80
H.F. _____ required rent for such housing. Any such rent supplement for 1 any such family shall not continue for more than five years. 2 15. To acquire by purchase, gift, or condemnation real 3 property within its area of operation for the relocation of 4 railroad passenger and freight depots, tracks, and yard, and 5 other railroad facilities and to sell or exchange and convey 6 such real property to railroads. 7 16. To acquire or dispose of by purchase, construction, or 8 lease, or otherwise to deal in air rights, and facilities or 9 easements for lateral or vertical support of land or structures 10 of any kind. 11 17. Subject to applicable state or federal regulations 12 in effect at the time of the municipal action, accept 13 contributions, grants, and other financial assistance from 14 the state or federal government to be used upon a finding of 15 public purpose for grants, loans, loan guarantees, interest 16 supplements, technical assistance, or other assistance as 17 necessary or appropriate to private persons for a project. 18 18. To provide in a project development plan for the 19 exclusion from taxation of value added to real estate during 20 the process of construction for development or redevelopment. 21 The exclusion may be limited as to the scope of exclusion, 22 territory, or class of property affected. However, the value 23 added during construction shall not be eligible for exclusion 24 from taxation for more than two years and the exclusion shall 25 not be applied to a facility which has been more than eighty 26 percent completed as of the most recent date of assessment. 27 This subsection permits the elimination only of those 28 taxes which are levied against assessments made during the 29 construction of the development or redevelopment. 30 19. a. A municipality, upon entering into a development or 31 redevelopment agreement pursuant to section 402.8, subsection 32 1, or as otherwise permitted in this chapter, may enter into 33 a written assessment agreement with the developer of taxable 34 property in the project development area which establishes a 35 -20- LSB 5418YC (14) 84 md/sc 20/ 80
H.F. _____ minimum actual value of the land and completed improvements to 1 be made on the land until a specified termination date which 2 shall not be later than the date after which the tax increment 3 will no longer be remitted to the municipality pursuant to 4 section 402.19, subsection 2. The assessment agreement shall 5 be presented to the appropriate assessor. The assessor shall 6 review the plans and specifications for the improvements to 7 be made and if the minimum actual value contained in the 8 assessment agreement appears to be reasonable, the assessor 9 shall execute the following certification upon the agreement: 10 The undersigned assessor, being legally responsible for the 11 assessment of the above described property upon completion of 12 the improvements to be made on it, certifies that the actual 13 value assigned to that land and improvements upon completion 14 shall not be less than $............. 15 b. This assessment agreement with the certification of 16 the assessor and a copy of this subsection shall be filed in 17 the office of the county recorder of the county where the 18 property is located. Upon completion of the improvements, 19 the assessor shall value the property as required by law, 20 except that the actual value shall not be less than the minimum 21 actual value contained in the assessment agreement. This 22 subsection does not prohibit the assessor from assigning a 23 higher actual value to the property or prohibit the owner 24 from seeking administrative or legal remedies to reduce the 25 actual value assigned except that the actual value shall not 26 be reduced below the minimum actual value contained in the 27 assessment agreement. An assessor, county auditor, board of 28 review, director of revenue, or court of this state shall not 29 reduce or order the reduction of the actual value below the 30 minimum actual value in the agreement during the term of the 31 agreement regardless of the actual value which may result from 32 the incomplete construction of improvements, destruction or 33 diminution by any cause, insured or uninsured, except in the 34 case of acquisition or reacquisition of the property by a 35 -21- LSB 5418YC (14) 84 md/sc 21/ 80
H.F. _____ public entity. Recording of an assessment agreement complying 1 with this subsection constitutes notice of the assessment 2 agreement to a subsequent purchaser or encumbrancer of the land 3 or any part of it, whether voluntary or involuntary, and is 4 binding upon a subsequent purchaser or encumbrancer. 5 Sec. 27. NEW SECTION . 402.7 Condemnation of property. 6 1. a. A municipality shall have the right to acquire by 7 condemnation any interest in real property, including a fee 8 simple title thereto, which it may deem necessary for or in 9 connection with a project under this chapter, subject to the 10 limitations of this chapter and the limitations on eminent 11 domain authority in chapter 6A. 12 b. A municipality shall not, however, condemn agricultural 13 land included within a project development area for any 14 use unless the owner of the agricultural land consents to 15 condemnation or unless the municipality determines that the 16 land is necessary or useful for any of the following: 17 (1) The operation of a city utility as defined in section 18 362.2. 19 (2) The operation of a city franchise conferred the 20 authority to condemn private property under section 364.2. 21 (3) The operation of a combined utility system as defined 22 in section 384.80. 23 2. A municipality shall exercise the power of eminent domain 24 in the manner provided in chapter 6B. Property already devoted 25 to a public use may be acquired in like manner. However, real 26 property belonging to the state, or any political subdivision 27 of this state, shall not be acquired without its consent, and 28 real property or any right or interest in the property owned 29 by any public utility company, pipeline company, railway or 30 transportation company vested with the right of eminent domain 31 under the laws of this state shall not be acquired without 32 the consent of the company, or without first securing, after 33 due notice to the company and after hearing, a certificate 34 authorizing condemnation of the property from the board, 35 -22- LSB 5418YC (14) 84 md/sc 22/ 80
H.F. _____ commission, or body having the authority to grant a certificate 1 authorizing condemnation. 2 3. In a condemnation proceeding, if a municipality proposes 3 to take a part of a lot or parcel of real property, the 4 municipality shall also take the remaining part of the lot or 5 parcel if requested by the owner. 6 Sec. 28. NEW SECTION . 402.8 Sale or lease of property. 7 1. A municipality may sell, lease, or otherwise transfer 8 real property or any interest in real property acquired by it, 9 and may enter into contracts for such purposes, in a project 10 development area for residential, recreational, commercial, 11 industrial, or other uses, or for public use, subject to 12 covenants, conditions, and restrictions, including covenants 13 running with the land, it deems to be necessary or desirable 14 to assist in preventing the development or spread of future 15 slums or blighted areas, or to otherwise carry out the purposes 16 of this chapter. However, the sale, lease, other transfer, 17 or retention, and any agreement relating to it, may be made 18 only after the approval of the project development plan by 19 the local governing body. The purchasers or lessees and 20 their successors and assigns shall devote the real property 21 only to the uses specified in the project development plan, 22 and they may be obligated to comply with other requirements 23 the municipality determines to be in the public interest, 24 including the requirement to begin within a reasonable time 25 any improvements on the real property required by the project 26 development plan. The real property or interest shall be sold, 27 leased, otherwise transferred, or retained at not less than its 28 fair value for uses in accordance with the project development 29 plan except as provided in subsection 3. In determining the 30 fair value of real property for uses in accordance with the 31 project development plan, a municipality shall take into 32 account and give consideration to the uses provided in the 33 plan; the restrictions upon, and the covenants, conditions, 34 and obligations assumed by the purchaser or lessee or by the 35 -23- LSB 5418YC (14) 84 md/sc 23/ 80
H.F. _____ municipality retaining the property; and the objectives of the 1 plan for the prevention of the recurrence of slum or blighted 2 areas. The municipality in an instrument of conveyance to a 3 private purchaser or lessee may provide that the purchaser 4 or lessee shall not sell, lease, or otherwise transfer the 5 real property, without the prior written consent of the 6 municipality, until the purchaser or lessee has completed the 7 construction of any or all improvements which the purchaser 8 or lessee has become obligated to construct. Real property 9 acquired by a municipality which, in accordance with the 10 project development plan, is to be transferred, shall be 11 transferred as rapidly as feasible in the public interest, 12 consistent with the carrying out of the project development 13 plan. A contract for a transfer under the project development 14 plan, or a part or parts of the contract or plan as the 15 municipality determines, may be recorded in the land records of 16 the county in a manner to afford actual or constructive notice 17 of the contract or plan. 18 2. a. A municipality may dispose of real property in 19 a project development area to private persons only under 20 reasonable competitive bidding procedures it shall prescribe, 21 or as provided in this subsection. A municipality, by 22 public notice by publication in a newspaper having a general 23 circulation in the community, thirty days prior to the 24 execution of a contract to sell, lease, or otherwise transfer 25 real property, and prior to the delivery of an instrument 26 of conveyance with respect to the real property under this 27 section, may invite proposals from and make available all 28 pertinent information to any persons interested in undertaking 29 to redevelop or rehabilitate a project development area, or 30 a part of the area. The notice shall identify the area, or 31 portion of the area, and shall state that proposals shall be 32 made by those interested within thirty days after the date 33 of publication of the notice, and that further information 34 available may be obtained at the office designated in the 35 -24- LSB 5418YC (14) 84 md/sc 24/ 80
H.F. _____ notice. The municipality shall consider all redevelopment 1 or rehabilitation proposals, and the financial and legal 2 ability of the persons making the proposals to carry them 3 out, and the municipality may negotiate with any persons for 4 proposals concerning the purchase, lease, or other transfer 5 of real property acquired by the municipality in the project 6 development area. The municipality may accept the proposal it 7 deems to be in the public interest and in furtherance of the 8 purposes of this chapter. However, a notification of intention 9 to accept the proposal shall be filed with the governing body 10 not less than thirty days prior to the acceptance. Thereafter, 11 the municipality may execute a contract in accordance 12 with subsection 1 and may deliver deeds, leases, and other 13 instruments and may take all steps necessary to effectuate the 14 contract. 15 b. This subsection does not apply to real property disposed 16 of for the purpose of development or redevelopment as an 17 industrial building or facility, facilities for use as a center 18 for export for international trade, a home office or regional 19 office facility for a multistate business, or which meets the 20 criteria set forth in subsection 3. 21 3. The requirement that real property or an interest in 22 real property transferred or retained for the purpose of 23 a development or redevelopment be sold, leased, otherwise 24 transferred, or retained at not less than its fair market 25 value does not apply if the developer enters into a written 26 assessment agreement with the municipality pursuant to section 27 402.6, subsections 18 and 19, and the minimum actual value 28 contained in the assessment agreement would indicate that there 29 will be sufficient taxable valuations to permit the collection 30 of incremental taxes as provided in section 402.19, subsection 31 2, to cause the indebtedness and other costs incurred by 32 the municipality with respect to the property or interest 33 transferred or retained to be repayable as to principal within 34 four tax years following the commencement of full operation of 35 -25- LSB 5418YC (14) 84 md/sc 25/ 80
H.F. _____ the development. 1 4. A municipality may temporarily operate and maintain 2 real property acquired in a project development area pending 3 the disposition of the property as authorized in this chapter, 4 without regard to the provisions of subsection 1, for such uses 5 and purposes as may be deemed desirable, even though not in 6 conformity with the project development plan. 7 Sec. 29. NEW SECTION . 402.9 Issuance of bonds. 8 1. A municipality shall have power to periodically issue 9 bonds in its discretion to pay the costs of carrying out the 10 purposes and provisions of this chapter, including but not 11 limited to the payment of principal and interest upon any 12 advances for surveys and planning, and the payment of interest 13 on bonds, herein authorized, not to exceed three years from the 14 date the bonds are issued. The municipality shall have power 15 to issue refunding bonds for the payment or retirement of such 16 bonds previously issued by the municipality. Said bonds shall 17 be payable solely from the income and proceeds of the fund and 18 portion of taxes referred to in section 402.19, subsection 2, 19 and revenues and other funds of the municipality derived from 20 or held in connection with the undertaking and carrying out of 21 projects under this chapter. The municipality may pledge to 22 the payment of the bonds the fund and portion of taxes referred 23 to in section 402.19, subsection 2, and may further secure the 24 bonds by a pledge of any loan, grant, or contribution from the 25 federal government or other source in aid of any projects of 26 the municipality under this chapter, or by a mortgage of any 27 such projects, or any part thereof, title which is vested in 28 the municipality. 29 2. Bonds issued under this section constitute an 30 indebtedness within the meaning of any constitutional or 31 statutory debt limitation or restriction, and shall be subject 32 to the provisions of any other law or charter relating to the 33 authorization, issuance, or sale of bonds. Bonds issued under 34 the provisions of this chapter are declared to be issued for an 35 -26- LSB 5418YC (14) 84 md/sc 26/ 80
H.F. _____ essential public and governmental purpose and, together with 1 interest thereon and income therefrom, shall be exempted from 2 all taxes. 3 3. a. Bonds issued under this section shall be authorized 4 by resolution or ordinance of the local governing body and 5 may be issued in one or more series and shall bear such date 6 or dates, be payable upon demand or mature at such time or 7 times, bear interest at such rate or rates not exceeding 8 that permitted by chapter 74A, be in such denomination or 9 denominations, be in such form either coupon or registered, 10 carry such conversion or registration privileges, have such 11 rank or priority, be executed in such manner, be payable in 12 such medium of payment, at such place or places, and be subject 13 to such terms of redemption, with or without premium, be 14 secured in such manner, and have such other characteristics, 15 as may be provided by such resolution or trust indenture or 16 mortgage issued pursuant thereto. 17 b. Before the local governing body may institute proceedings 18 for the issuance of bonds under this section, a notice of 19 the proposed action, including a statement of the amount and 20 purposes of the bonds and the time and place of the meeting at 21 which the local governing body proposes to take action for the 22 issuance of the bonds, must be published as provided in section 23 362.3. At the meeting, the local governing body shall receive 24 oral or written objections from any resident or property owner 25 of the municipality. After all objections have been received 26 and considered, the local governing body, at that meeting or 27 any subsequent meeting, may take additional action for the 28 issuance of the bonds or abandon the proposal to issue the 29 bonds. Any resident or property owner of the municipality 30 may appeal the decision of the local governing body to take 31 additional action to the district court of the county in which 32 any part of the municipality is located, within fifteen days 33 after the additional action is taken. The additional action 34 of the local governing body is final and conclusive unless the 35 -27- LSB 5418YC (14) 84 md/sc 27/ 80
H.F. _____ court finds that the municipality exceeded its authority. 1 4. Such bonds may be sold at not less than ninety-eight 2 percent of par at public or private sale, or may be exchanged 3 for other bonds at not less than ninety-eight percent of par. 4 5. In case any of the public officials of the municipality 5 whose signatures appear on any bonds or coupons issued under 6 this chapter shall cease to be such officials before the 7 delivery of such bonds, such signatures shall, nevertheless, 8 be valid and sufficient for all purposes, the same as if such 9 officials had remained in office until such delivery. Any 10 provision of any law to the contrary notwithstanding, any bonds 11 issued pursuant to this chapter shall be fully negotiable. 12 6. In any suit, action, or proceeding involving the validity 13 or enforceability of any bond issued under this chapter, or the 14 security therefor, any such bond reciting in substance that 15 it has been issued by the municipality in connection with a 16 project, as herein defined, shall be conclusively deemed to 17 have been issued for such purpose and such project shall be 18 conclusively deemed to have been planned, located, and carried 19 out in accordance with the provisions of this chapter. 20 Sec. 30. NEW SECTION . 402.10 Bonds as legal investment. 21 All banks, trust companies, building and loan associations, 22 savings and loan associations, investment companies, and other 23 persons carrying on an investment business; all insurance 24 companies, insurance associations, and other persons carrying 25 on an insurance business; and all executors, administrators, 26 curators, trustees, and other fiduciaries, may legally invest 27 any sinking funds, moneys, or other funds belonging to them or 28 within their control in any bonds or other obligations issued 29 by a municipality pursuant to this chapter, or those issued by 30 any project development agency vested with project development 31 powers under section 402.14. Such bonds and other obligations 32 shall be authorized security for all public deposits. It is 33 the purpose of this section to authorize any persons, political 34 subdivisions, and officers, public or private, to use any funds 35 -28- LSB 5418YC (14) 84 md/sc 28/ 80
H.F. _____ owned or controlled by them for the purchase of any such bonds 1 or other obligations. Nothing contained in this section with 2 regard to legal investments shall be construed as relieving any 3 person of any duty of exercising reasonable care in selecting 4 securities. 5 Sec. 31. NEW SECTION . 402.11 Exemptions from legal process. 6 1. All property of a municipality, including funds, owned 7 or held by it for the purposes of this chapter shall be exempt 8 from levy and sale by virtue of an execution. Execution or 9 other judicial process shall not issue against the property and 10 a judgment against a municipality shall not be a charge or lien 11 upon such property. However, the provisions of this section 12 shall not apply to or limit the right of obligees to pursue 13 any remedies for the enforcement of any pledge or lien given 14 pursuant to this chapter by a municipality on its rents, fees, 15 grants, or revenues from projects. 16 2. The property of a municipality, acquired or held for the 17 purposes of this chapter, is declared to be public property 18 used for essential public and governmental purposes, and such 19 property shall be exempt from all taxes of the municipality, 20 the county, the state, or any political subdivision thereof. 21 However, such tax exemption shall terminate when the 22 municipality sells, leases, or otherwise disposes of such 23 property in a project development area to a purchaser or lessee 24 which is not a public body entitled to tax exemption with 25 respect to such property. 26 Sec. 32. NEW SECTION . 402.12 Powers of municipality. 27 1. For the purpose of aiding in the planning, undertaking, 28 or carrying out of a project located within the project 29 development area in which it is authorized to act, any public 30 body may, upon such terms, with or without consideration, as 31 it may determine: 32 a. Dedicate, sell, convey, or lease any of its interest in 33 any property, or grant easements, licenses, or other rights or 34 privileges therein to a municipality. 35 -29- LSB 5418YC (14) 84 md/sc 29/ 80
H.F. _____ b. Incur the entire expense of any public improvements made 1 by such public body in exercising the powers granted in this 2 section. 3 c. Do any and all things necessary to aid or cooperate in 4 the planning or carrying out of a project. 5 d. Lend, grant, or contribute funds to a municipality. 6 e. Enter into agreements, which may extend over any period, 7 notwithstanding any provision or rule of law to the contrary, 8 with a municipality or other public body respecting action 9 to be taken pursuant to any of the powers granted by this 10 chapter, including the furnishing of funds or other assistance 11 in connection with a project. 12 f. Cause public buildings, public facilities, or any other 13 public works which it is otherwise empowered to undertake to 14 be furnished. 15 g. Furnish, dedicate, close, vacate, pave, install, grade, 16 regrade, plan, or replan streets, roads, sidewalks, ways, or 17 other places. 18 h. Plan, replan, zone, or rezone any part of the 19 municipality or make exceptions from building regulations. 20 i. Cause administrative and other services to be furnished 21 to the municipality. 22 2. If at any time title to or possession of any project 23 is held by any public body or governmental agency, including 24 any agency or instrumentality of the United States, other than 25 the municipality, which is authorized by law to engage in the 26 undertaking, carrying out, or administration of projects, the 27 provisions of the agreements referred to in this section shall 28 inure to the benefit of and may be enforced by such public body 29 or governmental agency. As used in this subsection, the term 30 “municipality” shall also include a project development agency 31 vested with all of the project development powers pursuant to 32 the provisions of section 402.14. 33 3. Any sale, conveyance, lease, or agreement provided for in 34 this section may be made by a public body without appraisal, 35 -30- LSB 5418YC (14) 84 md/sc 30/ 80
H.F. _____ public notice, advertisement, or public bidding. 1 4. For the purpose of aiding in the planning, undertaking, 2 or carrying out of a project of a project development agency, 3 a municipality may, in addition to its other powers and upon 4 such terms, with or without consideration, as it may determine, 5 do and perform any or all of the actions or things which, by 6 the provisions of subsection 1, a public body is authorized to 7 do or perform, including the furnishing of financial and other 8 assistance. 9 5. For the purposes of this section, or for the purpose 10 of aiding in the planning, undertaking, or carrying out of a 11 project of a municipality, a municipality may, in addition to 12 any authority to issue bonds pursuant to section 402.9, issue 13 and sell its general obligation bonds. Any bonds issued by a 14 municipality pursuant to this section must be issued, in the 15 case of a city, by resolution of the council in the manner and 16 within the limitations prescribed by chapter 384, division 17 III, or in the case of a county, by resolution of the board of 18 supervisors in the manner and within the limitations prescribed 19 by chapter 331, division IV, part 3. Bonds issued pursuant to 20 the provisions of this subsection must be sold in the manner 21 prescribed by chapter 75. The additional power granted in 22 this subsection for the financing of public undertakings and 23 activities by municipalities within a project development area 24 shall not be construed as a limitation of the existing powers 25 of municipalities. 26 Sec. 33. NEW SECTION . 402.13 Presumption of title. 27 Any instrument executed by a municipality and purporting to 28 convey any right, title, or interest in any property under this 29 chapter shall be conclusively presumed to have been executed 30 in compliance with the provisions of this chapter insofar as 31 title or other interest of any bona fide purchasers, lessees, 32 or transferees of such property is concerned. 33 Sec. 34. NEW SECTION . 402.14 Project development agency 34 powers. 35 -31- LSB 5418YC (14) 84 md/sc 31/ 80
H.F. _____ 1. A municipality may itself exercise its project 1 development powers, as herein defined, or may, if the local 2 governing body by resolution determines such action to be in 3 the public interest, elect to have such powers exercised by the 4 project development agency, if one exists or is subsequently 5 established in the community. In the event the local governing 6 body makes such determination, the project development agency 7 shall be vested with all of the project development powers 8 in the same manner as though all such powers were conferred 9 on such agency instead of the municipality. If the local 10 governing body does not elect to make such determination, 11 the municipality in its discretion may exercise its project 12 development powers through a board or commissioner, or through 13 such officers of the municipality as the local governing body 14 may by resolution determine. 15 2. As used in this section, the term “project development 16 powers” shall include the rights, powers, functions, and duties 17 of a municipality under this chapter, except the following: 18 a. The power to determine a project development area and to 19 designate such area as appropriate for a project and to hold 20 any public hearings required with respect thereto. 21 b. The power to approve project development plans and 22 amendments thereof. 23 c. The power to establish a general plan for the locality 24 as a whole. 25 d. The power to formulate a workable program under section 26 402.3. 27 e. The power to make the determinations and findings 28 provided for in section 402.4, and section 402.5, subsection 4. 29 f. The power to issue general obligation bonds. 30 g. The power to appropriate funds, to levy taxes and 31 assessments, and to exercise other powers provided for in 32 section 402.6, subsection 8. 33 Sec. 35. NEW SECTION . 402.15 Agency created. 34 1. There is hereby created in each municipality a public 35 -32- LSB 5418YC (14) 84 md/sc 32/ 80
H.F. _____ body corporate and politic to be known as the “project 1 development agency” of the municipality. Such agency shall 2 not transact any business or exercise its powers hereunder 3 until or unless the local governing body has made the finding 4 prescribed in section 402.4, and has elected to have the 5 project development powers exercised by a project development 6 agency as provided in section 402.14. 7 2. If the project development agency is authorized to 8 transact business and exercise powers pursuant to this chapter, 9 the mayor or chairperson of the board, as applicable, by and 10 with the advice and consent of the local governing body, shall 11 appoint a board of commissioners of the project development 12 agency, which board shall consist of five commissioners. In 13 cities having a population of more than one hundred thousand, 14 the city council may establish, by ordinance, the number of 15 commissioners at not less than five. The term of office of 16 each such commissioner shall be one year. 17 3. A commissioner shall receive no compensation for 18 services, but shall be entitled to the necessary expenses, 19 including traveling expenses, incurred in the discharge of 20 the commissioner’s duties. Each commissioner shall hold 21 office until a successor has been appointed and has qualified. 22 A certificate of the appointment or reappointment of any 23 commissioner shall be filed with the clerk of the municipality, 24 and such certificate shall be conclusive evidence of the due 25 and proper appointment of such commissioner. 26 4. The powers of a project development agency shall be 27 exercised by the commissioners thereof. A majority of the 28 commissioners shall constitute a quorum for the purpose of 29 conducting business and exercising the powers of the agency, 30 and for all other purposes. Action may be taken by the agency 31 upon a vote of a majority of the commissioners present, unless 32 in any case the bylaws shall require a larger number. Any 33 persons may be appointed as commissioners if they reside within 34 the area of operation of the agency, which area shall be 35 -33- LSB 5418YC (14) 84 md/sc 33/ 80
H.F. _____ conterminous with the area of operation of the municipality, 1 and if they are otherwise eligible for such appointments under 2 this chapter. 3 5. The mayor or chairperson of the board, as applicable, 4 shall designate a chairperson and vice chairperson from among 5 the commissioners. An agency may employ an executive director, 6 technical experts, and such other agents and employees, 7 permanent and temporary, as it may require, and the agency may 8 determine their qualifications, duties, and compensation. For 9 such legal service as it may require, an agency may employ or 10 retain its own counsel and legal staff. An agency authorized 11 to transact business and exercise powers under this chapter 12 shall file, with the local governing body, on or before 13 September 30 of each year, a report of its activities for the 14 preceding fiscal year, which report shall include a complete 15 financial statement setting forth its assets, liabilities, 16 income, and operating expense as of the end of such fiscal 17 year. At the time of filing the report, the agency shall 18 publish in a newspaper of general circulation in the city or 19 county, as applicable, a notice to the effect that such report 20 has been filed with the municipality, and that the report is 21 available for inspection during business hours in the office 22 of the city clerk or county auditor, as applicable, and in the 23 office of the agency. 24 6. For inefficiency, or neglect of duty, or misconduct in 25 office, a commissioner may be removed only after a hearing, 26 and after the commissioner shall have been given a copy of the 27 charges at least ten days prior to such hearing, and after 28 the commissioner shall have had an opportunity to be heard in 29 person or by counsel. 30 7. For the period of time beginning on the effective date of 31 this Act until June 30, 2023, a municipality may designate the 32 urban renewal agency of the municipality under chapter 403 to 33 carry out the duties and exercise the authority of the project 34 development agency under this chapter. 35 -34- LSB 5418YC (14) 84 md/sc 34/ 80
H.F. _____ Sec. 36. NEW SECTION . 402.16 Personal interest prohibited. 1 No public official or employee of a municipality, or board 2 or commission thereof, and no commissioner or employee of 3 a project development agency, which has been vested by a 4 municipality with project development powers under section 5 402.14, shall voluntarily acquire any personal interest, 6 as hereinafter defined, whether direct or indirect, in any 7 project, or in any property included or planned to be included 8 in any project of such municipality, or in any contract or 9 proposed contract in connection with such project. Where such 10 acquisition is not voluntary, the interest acquired shall 11 be immediately disclosed in writing to the local governing 12 body, and such disclosure shall be entered upon the minutes 13 of the governing body. If any such official, commissioner, 14 or employee presently owns or controls, or has owned or 15 controlled within the preceding two years, any interest, 16 as hereinafter defined, whether direct or indirect, in any 17 property which the official, commissioner, or employee knows 18 is included or planned to be included in a project, the 19 official, commissioner, or employee shall immediately disclose 20 this fact in writing to the local governing body, and such 21 disclosure shall be entered upon the minutes of the governing 22 body; and any such official, commissioner, or employee 23 shall not participate in any action by the municipality, or 24 board or commission thereof, or project development agency 25 affecting such property, as the terms of such proscription 26 are hereinafter defined. For the purposes of this section 27 the following definitions and standards of construction shall 28 apply: 29 1. “Action affecting such property” shall include only 30 that action directly and specifically affecting such property 31 as a separate property but shall not include any action, any 32 benefits of which accrue to the public generally, or which 33 affects all or a substantial portion of the properties included 34 or planned to be included in such a project. 35 -35- LSB 5418YC (14) 84 md/sc 35/ 80
H.F. _____ 2. Employment by a public body, its agencies, or 1 institutions or by any other person having such an interest 2 shall not be deemed an interest by such employee or of any 3 ownership or control by such employee of interests of the 4 employee’s employer. Such an employee may participate in a 5 project so long as any benefits of such participation accrue 6 to the public generally, such participation affects all or a 7 substantial portion of the properties included or planned to 8 be included in such a project, or such participation promotes 9 the public purposes of such project, and shall limit only that 10 participation by an employee which directly or specifically 11 affects property in which an employer of an employee has an 12 interest. 13 3. The word “participation” shall be deemed not to include 14 discussion or debate preliminary to a vote of a local governing 15 body or agency upon proposed ordinances or resolutions relating 16 to such a project or any abstention from such a vote. 17 4. The designation of a bank or trust company as depository, 18 paying agent, or agent for investment of funds shall not be 19 deemed a matter of interest or personal interest. 20 5. Stock ownership in a corporation having such an interest 21 shall not be deemed an indicia of an interest or of ownership 22 or control by the person owning such stocks when less than five 23 percent of the outstanding stock of the corporation is owned or 24 controlled directly or indirectly by such person. 25 6. The word “action” shall not be deemed to include 26 resolutions advisory to the local governing body or agency by 27 any citizens group, board, body, or commission designated to 28 serve a purely advisory approving or recommending function 29 under this chapter. 30 7. The limitations of this section shall be construed 31 to permit action by a public official, commissioner, or 32 employee where any benefits of such action accrue to the 33 public generally, such action affects all or a substantial 34 portion of the properties included or planned to be included 35 -36- LSB 5418YC (14) 84 md/sc 36/ 80
H.F. _____ in such a project, or such action promotes the public purposes 1 of such project, and shall be construed to limit only that 2 action by a public official, commissioner, or employee which 3 directly or specifically affects property in which such 4 official, commissioner, or employee has an interest or in 5 which an employer of such official, commissioner, or employee 6 has an interest. Any disclosure required to be made by this 7 section to the local governing body shall concurrently be 8 made to a project development agency which has been vested 9 with project development powers by the municipality pursuant 10 to the provisions of section 402.14. No commissioner or 11 other officer of any project development agency, board, or 12 commission exercising powers pursuant to this chapter shall 13 hold any other public office under the municipality, other than 14 the commissionership or office with respect to such project 15 development agency, board, or commission. Any violation of 16 the provisions of this section shall constitute misconduct in 17 office, but no ordinance or resolution of a municipality or 18 agency shall be invalid by reason of a vote or votes cast in 19 violation of the standards of this section unless such vote 20 or votes were decisive in the passage of such ordinance or 21 resolution. 22 Sec. 37. NEW SECTION . 402.17 Definitions. 23 The following terms, wherever used or referred to in this 24 chapter, shall have the following meanings, unless a different 25 meaning is clearly indicated by the context: 26 1. “Affected taxing entity” means a city, community college, 27 county, or school district which levied or certified for 28 levy a property tax on any portion of the taxable property 29 located within the project development area in the fiscal 30 year beginning prior to the calendar year in which a proposed 31 project development plan is submitted to the local governing 32 body for approval. 33 2. “Agency” or “project development agency” shall mean a 34 public agency created by section 402.15. 35 -37- LSB 5418YC (14) 84 md/sc 37/ 80
H.F. _____ 3. “Agricultural land” means real property owned by a 1 person in tracts of ten acres or more and not laid off into 2 lots of less than ten acres or divided by streets and alleys 3 into parcels of less than ten acres, and that has been used 4 for the production of agricultural commodities during three 5 out of the past five years. Such use of property includes but 6 is not limited to the raising, harvesting, handling, drying, 7 or storage of crops used for feed, food, seed, or fiber; the 8 care or feeding of livestock; the handling or transportation 9 of crops or livestock; the storage, treatment, or disposal 10 of livestock manure; and the application of fertilizers, 11 soil conditioners, pesticides, and herbicides on crops. 12 “Agricultural land” includes land on which is located farm 13 residences or outbuildings used for agricultural purposes and 14 land on which is located facilities, structures, or equipment 15 for agricultural purposes. “Agricultural land” includes 16 land taken out of agricultural production for purposes of 17 environmental protection or preservation. 18 4. “Area of operation” of a city means the area within 19 the corporate limits of the city and, with the consent of the 20 county, the area within two miles of such limits, except that 21 it does not include any area which lies within the territorial 22 boundaries of another incorporated city, unless a resolution 23 has been adopted by the governing body of the city declaring 24 a need to be included in the area. The “area of operation” 25 of a county means an area outside the corporate limits of a 26 city. However, in that area outside a city’s boundary but 27 within two miles of the city’s boundary, a joint agreement 28 between the city and the county is required allowing the county 29 to proceed with the activities authorized under this chapter. 30 In addition, a county may proceed with activities authorized 31 under this chapter in an area inside the boundaries of a city, 32 provided a joint agreement is entered into with respect to 33 such activities between a city and a county and provided that 34 the city would not be prohibited from proceeding with such 35 -38- LSB 5418YC (14) 84 md/sc 38/ 80
H.F. _____ activities under section 402.5, subsection 1, paragraph “b” , if 1 the city conducted such activities itself. 2 5. “Blighted area” means an area of a municipality 3 within which the local governing body of the municipality 4 determines that the presence of a substantial number of 5 slum, deteriorated, or deteriorating structures; defective or 6 inadequate street layout; faulty lot layout in relation to 7 size, adequacy, accessibility, or usefulness; insanitary or 8 unsafe conditions; deterioration of site or other improvements; 9 diversity of ownership; tax or special assessment delinquency 10 exceeding the fair value of the land; defective or unusual 11 conditions of title; or the existence of conditions which 12 endanger life or property by fire and other causes; or any 13 combination of these factors; substantially impairs or arrests 14 the sound growth of a municipality, retards the provision of 15 housing accommodations, or constitutes an economic or social 16 liability and is a menace to the public health, safety, or 17 welfare in its present condition and use. A disaster area 18 referred to in section 402.5, subsection 7, constitutes a 19 “blighted area” . “Blighted area” does not include real property 20 that is agricultural land or that is assessed as agricultural 21 property for purposes of property taxation. 22 6. “Board” or “commission” shall mean a board, commission, 23 department, division, office, body, or other unit of the 24 municipality. 25 7. “Bonds” shall mean any bonds, including refunding bonds, 26 notes, interim certificates, certificates of indebtedness, 27 debentures, or other obligations. 28 8. “Chairperson of the board” means the chairperson of the 29 board of supervisors or other legislative body charged with 30 governing a county. 31 9. “Clerk” shall mean the clerk or other official of the 32 municipality who is the custodian of the official records of 33 such municipality. 34 10. “Economic development area” means an area of a 35 -39- LSB 5418YC (14) 84 md/sc 39/ 80
H.F. _____ municipality designated by the local governing body as 1 appropriate for commercial and industrial enterprises, public 2 improvements related to housing and residential development, 3 or construction of housing and residential development for low 4 and moderate income families, including single or multifamily 5 housing. Such designated area shall not include agricultural 6 land, including land which is part of a century farm, unless 7 the owner of the agricultural land or century farm agrees to 8 include the agricultural land or century farm in the project 9 development area. For the purposes of this subsection, “century 10 farm” means a farm in which at least forty acres of such farm 11 have been held in continuous ownership by the same family for 12 one hundred years or more. 13 11. “Federal government” shall include the United States or 14 any agency or instrumentality, corporate or otherwise, of the 15 United States. 16 12. “Housing and residential development” means single 17 or multifamily dwellings to be constructed in an area with 18 respect to which the local governing body of the municipality 19 determines that there is an inadequate supply of affordable, 20 decent, safe, and sanitary housing and that providing such 21 housing is important to meeting any or all of the following 22 objectives: retaining existing industrial or commercial 23 enterprises; attracting and encouraging the location of new 24 industrial or commercial enterprises; meeting the needs of 25 special elements of the population, such as the elderly or 26 persons with disabilities; and providing housing for various 27 income levels of the population which may not be adequately 28 served. 29 13. “Indebtedness” includes but is not limited to a written 30 agreement to suspend, abate, exempt, rebate, refund, or 31 reimburse property taxes, to make a direct payment of taxes, or 32 to provide a grant for property taxes paid. 33 14. “Local governing body” means the council, board of 34 supervisors, or other legislative body charged with governing 35 -40- LSB 5418YC (14) 84 md/sc 40/ 80
H.F. _____ the municipality. 1 15. “Low or moderate income families” means those families, 2 including single person households, earning no more than 3 eighty percent of the higher of the median family income of 4 the county or the statewide nonmetropolitan area as determined 5 by the latest United States department of housing and urban 6 development, section 8 income guidelines. 7 16. “Mayor” shall mean the mayor of a municipality, or other 8 officer or body having the duties customarily imposed upon the 9 executive head of a municipality. 10 17. “Municipality” means any city or county in the state. 11 18. “Obligee” shall include any bondholder, agents, or 12 trustees for any bondholders, or any lessor demising to the 13 municipality property used in connection with a project under 14 this chapter, or any assignee or assignees of such lessor’s 15 interest or any part thereof, and the federal government, when 16 it is a party to any contract with the municipality. 17 19. “Person” shall mean any individual, firm, partnership, 18 corporation, company, association, joint stock association; and 19 shall include any trustee, receiver, assignee, or other person 20 acting in a similar representative capacity for an individual 21 or such entities. 22 20. a. “Project” may include undertakings and activities 23 of a municipality in a project development area for the 24 elimination and for the prevention of the development or 25 spread of slums and blight, may include the designation and 26 development of an economic development area in a project 27 development area, and may involve slum clearance and 28 redevelopment in a project development area, or rehabilitation 29 or conservation in a project development area, or any 30 combination or part thereof in accordance with a project 31 development program. 32 b. The undertakings and activities may include: 33 (1) Acquisition of a slum area, blighted area, economic 34 development area, or portion of the areas. 35 -41- LSB 5418YC (14) 84 md/sc 41/ 80
H.F. _____ (2) Demolition and removal of buildings and improvements. 1 (3) Installation, construction, or reconstruction of 2 streets, utilities, and other improvements necessary for 3 carrying out in the project development area the objectives of 4 this chapter in accordance with the project development plan. 5 (4) Disposition of any property acquired in the project 6 development area, including sale, initial leasing, or retention 7 by the municipality itself, at its fair value for uses in 8 accordance with the project development plan. 9 (5) Carrying out plans for a program of voluntary or 10 compulsory repair and rehabilitation of buildings or other 11 improvements in accordance with the project development plan. 12 (6) Acquisition of any other real property in the project 13 development area, where necessary to eliminate unhealthful, 14 insanitary, or unsafe conditions, or to lessen density, 15 eliminate obsolete or other uses detrimental to the public 16 welfare, or otherwise to remove or prevent the spread of 17 blight or deterioration, or to provide land for needed public 18 facilities subject to the limitation in section 403.19, 19 subsection 5, paragraph “b” . 20 (7) Sale and conveyance of real property in furtherance of 21 a project. 22 21. “Project development area” means a slum area, blighted 23 area, economic development area, or combination of the areas, 24 which the local governing body designates as appropriate for 25 a project. A project development area shall not include 26 territory located within an urban renewal area under chapter 27 403. 28 22. “Project development plan” means a plan for the 29 development, redevelopment, improvement, or rehabilitation of a 30 designated project development area. The plan shall meet the 31 following requirements: 32 a. Conform to the general plan for the municipality as a 33 whole except as provided in section 402.5, subsection 7. 34 b. Be sufficiently complete to indicate the real property 35 -42- LSB 5418YC (14) 84 md/sc 42/ 80
H.F. _____ located in the project development area to be acquired for 1 the proposed development, redevelopment, improvement, or 2 rehabilitation, and to indicate any zoning district changes, 3 existing and future land uses, and the local objectives 4 respecting development, redevelopment, improvement, or 5 rehabilitation related to the future land uses plan, and need 6 for improved traffic, public transportation, public utilities, 7 recreational and community facilities, and other public 8 improvements within the project development area. 9 c. If the plan includes a provision for the division 10 of taxes as provided in section 402.19, the plan shall 11 also include a list of the current general obligation debt 12 of the municipality, the current urban renewal debt of 13 the municipality under chapter 403, if any, the current 14 constitutional debt limit of the municipality, and the proposed 15 amount of indebtedness to be incurred, including loans, 16 advances, indebtedness, or bonds which qualify for payment from 17 the project development fund referred to in section 402.19, 18 subsection 2. 19 23. “Public body” shall mean the state or any political 20 subdivision thereof. 21 24. “Public officer” shall mean any officer who is in 22 charge of any department or branch of the government of the 23 municipality relating to health, fire, building regulations, or 24 to other activities concerning dwellings in the municipality. 25 25. “Real property” shall include all lands, including 26 improvements and fixtures thereon, and property of any nature 27 appurtenant thereto, or used in connection therewith, and every 28 estate, interest, right and use, legal or equitable, therein, 29 including terms for years and liens by way of judgment, 30 mortgage, or otherwise. 31 26. “Slum area” shall mean an area in which there is a 32 predominance of buildings or improvements, whether residential 33 or nonresidential, which: by reason of dilapidation, 34 deterioration, age, or obsolescence; by reason of inadequate 35 -43- LSB 5418YC (14) 84 md/sc 43/ 80
H.F. _____ provision for ventilation, light, air, sanitation, or 1 open spaces; by reason of high density of population and 2 overcrowding; by reason of the existence of conditions which 3 endanger life or property by fire and other causes; or which 4 by any combination of such factors, is conducive to ill 5 health, transmission of disease, infant mortality, juvenile 6 delinquency, or crime, and which is detrimental to the public 7 health, safety, morals, or welfare. “Slum area” does not 8 include real property that is agricultural land or that is 9 assessed as agricultural property for purposes of property 10 taxation. 11 Sec. 38. NEW SECTION . 402.18 Rule of construction. 12 Insofar as the provisions of this chapter may be 13 inconsistent with the provisions of any other law, the 14 provisions of this chapter shall be controlling. The powers 15 conferred by this chapter shall be in addition and supplemental 16 to the powers conferred by any other law. 17 Sec. 39. NEW SECTION . 402.19 Division of revenue from 18 taxation —— tax increment financing. 19 A municipality may, following consultation, notification, 20 and approval of all affected taxing entities in the manner 21 specified in section 402.5, subsection 2, paragraph “b” , 22 provide by ordinance that taxes levied on taxable property in a 23 project development area each year by or for the benefit of the 24 state, city, county, school district, or other taxing district, 25 shall be divided as follows: 26 1. a. That portion of the taxes which would be produced by 27 the rate at which the tax is levied each year by or for each of 28 the taxing districts upon the total sum of the taxable value 29 of the taxable property in the project development area, as 30 shown on the assessment roll last equalized prior to the date 31 of initial adoption of the project development plan, shall 32 be allocated to and when collected be paid into the fund for 33 the respective taxing district as taxes by or for the taxing 34 district into which all other property taxes are paid. 35 -44- LSB 5418YC (14) 84 md/sc 44/ 80
H.F. _____ b. For the purpose of allocating taxes levied by or for 1 any taxing district which did not include the territory in 2 a project development area on the effective date of initial 3 adoption of the plan, but to which the territory has been 4 annexed or otherwise included after the effective date, the 5 assessment roll applicable to property in the annexed territory 6 as of January 1 of the calendar year preceding the effective 7 date of the amendment to the plan to include the annexed area 8 shall be used in determining the taxable valuation of the 9 property in the annexed area. 10 c. For the purposes of dividing taxes under section 260E.4, 11 the applicable assessment roll for purposes of paragraph “a” 12 shall be the assessment roll as of January 1 of the calendar 13 year preceding the first written agreement providing that all 14 or a portion of program costs are to be paid for by incremental 15 property taxes. The community college shall file a copy of 16 the agreement with the appropriate assessor. The assessor 17 may, within fourteen days of such filing, physically inspect 18 the applicable taxable business property. If upon such 19 inspection the assessor determines that there has been a change 20 in the value of the property from the value as shown on the 21 assessment roll as of January 1 of the calendar year preceding 22 the filing of the agreement and such change in value is due 23 to new construction, additions or improvements to existing 24 structures, or remodeling of existing structures for which 25 a building permit was required, the assessor shall promptly 26 determine the value of the property as of the inspection in the 27 manner provided in chapter 441 and that value shall be included 28 for purposes of the jobs training project in the value of the 29 employer’s taxable business property as shown on the assessment 30 roll as of January 1 of the calendar year preceding the filing 31 of the agreement. The assessor, within thirty days of such 32 filing, shall notify the community college and the employer 33 or business of that valuation which shall be included in the 34 taxable valuation for purposes of this subsection and section 35 -45- LSB 5418YC (14) 84 md/sc 45/ 80
H.F. _____ 260E.4. The value determined by the assessor shall reflect the 1 change in value due solely to new construction, additions, or 2 improvements to existing structures, or remodeling of existing 3 structures for which a building permit was required. 4 2. That portion of the taxes each year in excess of such 5 amount shall be allocated to and when collected be paid into 6 a project development fund of the municipality to pay the 7 principal of and interest on loans, moneys advanced to, or 8 indebtedness, whether funded, refunded, assumed, or otherwise, 9 including bonds issued under the authority of section 402.9, 10 subsection 1, incurred by the municipality to finance or 11 refinance, in whole or in part, a project within the area 12 and to provide assistance for low and moderate income family 13 housing as provided in section 402.22. However, taxes for the 14 regular and voter-approved physical plant and equipment levy 15 of a school district imposed pursuant to section 298.2, taxes 16 for the payment of bonds and interest of each taxing district, 17 and the foundation property tax imposed pursuant to section 18 257.3, shall be collected against all taxable property within 19 the taxing district without limitation by the provisions of 20 this subsection. Unless and until the total taxable valuation 21 of the taxable property in a project development area exceeds 22 the total taxable value of the taxable property in such area 23 as shown by the last equalized assessment roll referred to in 24 subsection 1, all of the taxes levied and collected upon the 25 taxable property in the project development area shall be paid 26 into the funds for the respective taxing districts as taxes by 27 or for the taxing districts in the same manner as all other 28 property taxes. When such loans, advances, indebtedness, and 29 bonds, if any, and interest thereon, have been paid, all moneys 30 thereafter received from taxes upon the taxable property in 31 such project development area shall be paid into the funds for 32 the respective taxing districts in the same manner as taxes on 33 all other property. In those instances where a school district 34 has entered into an agreement pursuant to section 279.64 for 35 -46- LSB 5418YC (14) 84 md/sc 46/ 80
H.F. _____ sharing of school district taxes levied and collected from 1 valuation described in this subsection and released to the 2 school district, the school district shall transfer the taxes 3 as provided in the agreement. 4 3. The division of revenue provided for in this section 5 shall be limited to ten years from the calendar year following 6 the calendar year in which the municipality first certifies 7 to the county auditor the amount of any loans, advances, 8 indebtedness, or bonds which qualify for payment from the 9 division of revenue. The project development area, including 10 all applicable project development plans, projects, and 11 ordinances shall terminate and be of no further force and 12 effect following the ten-year limitation provided in this 13 subsection. 14 4. a. The portion of taxes mentioned in subsection 2, and 15 the project development fund into which they shall be paid, may 16 be irrevocably pledged by a municipality for the payment of the 17 principal and interest on loans, advances, bonds issued under 18 the authority of section 402.9, subsection 1, or indebtedness 19 incurred by a municipality to finance or refinance, in whole or 20 in part, the project within the area. 21 b. Except as authorized in section 402.22, subsection 4, 22 deposits into the project development fund that are taxes 23 resulting from a division of revenue under this section shall 24 only be expended from the fund for expenses related to the 25 project development area from which the deposits were collected 26 and shall not be used for any of the following: 27 (1) Public buildings, including the site or grounds of, and 28 the erection, equipment, remodeling, or reconstruction of, and 29 additions or extensions to, the buildings or facilities. 30 (2) Salaries, benefits, per diems, or expenses of any 31 employee of the municipality. 32 (3) Movable property. 33 5. As used in this section the word “taxes” includes but is 34 not limited to all levies on an ad valorem basis upon land or 35 -47- LSB 5418YC (14) 84 md/sc 47/ 80
H.F. _____ real property. 1 6. An ordinance adopted under this section providing for a 2 division of revenue shall be filed in the office of the county 3 auditor of each county where the property that is subject to 4 the ordinance is located. 5 7. a. (1) A municipality shall certify to the county 6 auditor on or before December 1 the amount of loans, advances, 7 indebtedness, or bonds which qualify for payment from the 8 project development fund referred to in subsection 2, for each 9 project development area in the municipality, and the filing of 10 the certificate shall make it a duty of the auditor to provide 11 for the division of taxes in each subsequent year without 12 further certification, except as provided in paragraphs “b” 13 and “c” , and subject to the limitation in subsection 3, until 14 the amount of the loans, advances, indebtedness, or bonds is 15 paid to the project development fund. If any loans, advances, 16 indebtedness, or bonds are issued which qualify for payment 17 from the project development fund and which are in addition to 18 amounts already certified, the municipality shall certify the 19 amount of the additional obligations on or before December 1 of 20 the year such obligations were issued, and the filing of the 21 certificate shall make it a duty of the auditor to provide for 22 the division of taxes in each subsequent year without further 23 certification, except as provided in paragraphs “b” and “c” , 24 and subject to the limitation in subsection 3, until the amount 25 of the loans, advances, indebtedness, or bonds is paid to the 26 project development fund. Any subsequent certifications under 27 this subsection shall not include amounts previously certified. 28 (2) A certification made under this paragraph “a” shall 29 include the date that the individual loans, advances, 30 indebtedness, or bonds were initially approved by the governing 31 body of the municipality and a schedule of payments of such 32 amounts. 33 b. If the amount certified in paragraph “a” is reduced by 34 payment from sources other than the division of taxes, by a 35 -48- LSB 5418YC (14) 84 md/sc 48/ 80
H.F. _____ refunding or refinancing of the obligation which results in 1 lowered principal and interest on the amount of the obligation, 2 or for any other reason, the municipality on or before December 3 1 of the year the action was taken which resulted in the 4 reduction shall certify the amount of the reduction to the 5 county auditor. 6 c. In any year, the county auditor shall, upon receipt of a 7 certification from a municipality filed on or before December 8 1, increase the amount to be allocated under subsection 1 in 9 order to reduce the amount to be allocated in the following 10 fiscal year to the project development fund, to the extent that 11 the municipality does not request allocation to the project 12 development fund of the full portion of taxes which could be 13 collected. Upon receipt of a certificate from a municipality, 14 the auditor shall mail a copy of the certificate to each 15 affected taxing district. 16 8. Tax collections within each taxing district may be 17 allocated to the entire taxing district including the taxes on 18 the valuations determined under subsection 1 and to the project 19 development fund created under subsection 2 in the proportion 20 of their taxable valuations determined as provided in this 21 section. 22 Sec. 40. NEW SECTION . 402.21 Communication and cooperation 23 regarding new jobs training projects. 24 1. In order to promote communication and cooperation among 25 cities, counties, and community colleges with respect to the 26 allocation and division of taxes, no jobs training projects 27 as defined in chapter 260E or 260F shall be undertaken within 28 the area of operation of a municipality after July 1, 1995, 29 unless the municipality and the community college have entered 30 into an agreement or have jointly adopted a plan relating 31 to a community college’s new jobs training program which 32 shall provide for a procedure for advance notification to 33 each affected municipality, for exchange of information, for 34 mutual consultation, and for procedural guidelines for all 35 -49- LSB 5418YC (14) 84 md/sc 49/ 80
H.F. _____ such new jobs training projects, including related project 1 financing to be undertaken within the area of operation of the 2 municipality. The joint agreement or the plan shall state its 3 precise duration and shall be binding on the community college 4 and the municipality with respect to all new jobs training 5 projects, including related project financing undertaken during 6 its existence. The joint agreement or plan shall be effective 7 upon adoption and shall be placed on file in the office of the 8 secretary of the board of directors of the community college 9 and such other location as may be stated in the joint agreement 10 or plan. The joint agreement or plan shall also be sent to each 11 school district which levied or certified for levy a property 12 tax on any portion of the taxable property located in the area 13 of operation of the municipality in the fiscal year beginning 14 prior to the calendar year in which the plan is adopted or 15 the agreement is reached. If no such agreement is reached or 16 plan adopted, the community college shall not use incremental 17 property tax revenues to fund jobs training projects within the 18 area of operation of the municipality. Agreements entered into 19 between a community college and a city or county pursuant to 20 chapter 28E shall not apply. 21 2. The community college shall send a copy of the final 22 agreement prepared pursuant to section 260E.3 to the economic 23 development authority. For each year in which incremental 24 property taxes are used to pay job training certificates 25 issued for a project creating new jobs, the community 26 college shall provide to the economic development authority 27 a report of the incremental property taxes and new jobs 28 credits from withholding generated for that year, a specific 29 description of the training conducted, the number of employees 30 provided program services under the project, the median 31 wage of employees in the new jobs in the project, and the 32 administrative costs directly attributable to the project. 33 3. The community college shall send a copy of the final 34 agreement prepared pursuant to section 260F.3 to the economic 35 -50- LSB 5418YC (14) 84 md/sc 50/ 80
H.F. _____ development authority. For each year in which incremental 1 property taxes are used to retire debt service on a jobs 2 training advance issued for a project creating new jobs, the 3 community college shall provide to the economic development 4 authority a report of the incremental property taxes and new 5 jobs credits from withholding generated for that year, a 6 specific description of the training conducted, the number of 7 employees provided program services under the project, and the 8 median wage of employees in the new jobs in the project, and 9 the administrative costs directly attributable to the project. 10 4. This section shall apply to joint agreements entered into 11 or joint plans adopted on or after the effective date of this 12 Act. 13 Sec. 41. NEW SECTION . 402.22 Public improvements related 14 to housing and residential development —— low income assistance 15 requirements. 16 1. With respect to any project development area established 17 upon the determination that the area is an economic development 18 area, a division of revenue as provided in section 402.19 19 shall not be allowed for the purpose of providing or aiding in 20 the provision of public improvements related to housing and 21 residential development