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