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HomeMy Public PortalAboutORD10255 BILL N0. SPONSORED BY COUNCILMAN ORDINANCE NO. AN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI , AMENDING CHAPTER 23 BY DELETING SECTIONS 23-47 THROUGH 23-79, PERTAINING TO URBAN REDEVELOPMENT CORPORATIONS, AND ENACTING IN LIEU THEREOF 28 NEW SECTIONS PERTAINING TO THE SAME SUBJECT MATTER. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, MISSOURI , AS FOLLOWS: Section 1: Chapter 23 of the City Code is hereby amended by repealing Sections 23-47 through 23-79 and enacting in lieu thereof 28 sections, which shall read as follows: Sec. 23-47. Determination of necessity for legislation. It is hereby determined and declared by the council : (1) That in certain portions of the city obsolete, decadent, substandard, or blighted areas exist occasioned by inadequate planning, excessive land coverage, lack of proper light, air or open space, defective design or arrangement of buildings, or the existence of buildings, which by reason of age, obsolescence, inadequate or outmoded design, or physical deterioration, have impaired the economic value of large areas, infecting them with blight; and (2) That such areas are characterized by depreciated values, impaired investments, reduced or negligible income and consequent tax delinquencies; (3) That such conditions exist in areas where obsolete, decadent, substandard, outworn or outmoded industrial , commercial , or residential buildings prevail ; (4) That their assembly for purposes of clearance, ® replanning, rehabilitation, reconstruction, and redevelopment may be difficult and costly ; (5) That the existence of such condition and the failure to clear, replan, rehabilitate, reconstruct, or redevelop these areas results in progressive deterioration, and occasions large outlays for the creation of public facilities and services else- where; (6) That it is desirable to induce private capital investments to alleviate these conditions and redevelop these areas but that sometimes it is impossible or uneconomic for individual owners to independently undertake to remedy such conditions; (7) That such conditions require the employment of capital on an investment basis, allowing however, that widest latitude in the amortization of any indebtedness created thereby; (8) That such conditions further require the acquisition of adequate areas, at fair prices, the clearance of such areas through demolition of existing obsolete, decadent, inadequate, or unsafe buildings and the redevelopment of such areas under proper supervision with appropriate planning as to land use and construction policies; and (9) The clearance, replanning, rehabilitation, recon- struction, and land redevelopment of such areas on a large scale basis are necessary for the public welfare and are public uses and purposes for which private property may be acquired by purchase or eminent domain; and (10) That such obsolete, decadent, substandard, and blighted areas constitute a menace to the citizens of the city. Therefore, the necessity for the provisions in this article is hereby declared as a matter of legislative determination to be in the public interest. (Ord. No. 9752, § 1(37-1) , 3-1-82) Sec. 23-48. Application of The Urban Redevelopment Corporation Law. The provisions of the Urban Redevelopment Corporations Law, found in Chapter 353, Revised Statutes of Missouri, are hereby accepted and shall apply to all persons and corporations -2- t' operating under this chapter insofar as the same may be applicable thereto. (Ord. No. 9752, § 1(37-2) 9 3-1-82) Sec. 23-49. Definitions. The following terms whenever used or referred to in this article shall, unless a different intent clearly appears from the context, be construed to have the following meanings: Area shall mean that portion of the city which the city council has found or shall find to be blighted, so that the clearance, replanning, rehabilitation, or reconstruction thereof is necessary to effectuate the purposes of this ordinance. Any such area may include buildings or improve- ments not in themselves blighted, and any real property, whether improved or unimproved, the inclusion of which is deemed necessary for the effective clearance, replanning, reconstruction, or rehabilitation of the area of which such buildings, improvements, or real property form a part. Authority shall mean the Housing Authority of the City of Jefferson. Aft Blighted area shall mean those portions of the city which the council shall determine, that by reason of age, obsolescence, inadequate or outmoded design, or physical deterioration, have become economic and social liabilities and that the conditions in such localities are conducive to ill health, public safety, transmission of disease, crime, or inability to pay reasonable taxes. Commission shall mean the Planning and Zoning Commission of the City . Corporation shall mean an urban redevelopment corporation organized under and pursuant to the provisions of The Urban Redevelopment Corporations Law. Development cost shall mean the amount determined by the commission or the authority to be the actual cost of redevelopment, or of that part thereof for which such determination is made. The term shall include, among other costs, the reasonable expenses of planning the redevelopment, including preliminary studies and surveys, neighborhood planning, and architectural and engineering services; the reasonable value of the services performed in connection with the development plan; interest during construction; the actual cost of the real property or any part thereof where acquired partly or wholly in exchange for securities; the -3- Ip actual cost of demolition of existing structures; the actual cost of utilities, landscaping and roadways; the actual cost of construction, equipment and furnishings of buildings and improvements including architectural , engineering, and builders' fees; the actual cost of reconstruction, rehabilita- tion, redevelopment, remodeling, or initial repair of existing buildings and improvements; reasonable management and operation costs until the redevelopment is ready for use; and the actual cost of improving those portions of the area which are to remain open spaces, together with such additions to development costs as shall equal the actual cost of additions to or changes in the redevelopment in accordance with the original development plan or after approved changes therein or amendments thereto. Development plan shall mean a plan, together with any amendments, for the redevelopment of all or any part of a blighted area. Mortgage shall mean a mortgage, trust indenture, deed of trust, building and loan contract, or other instrument creating a lien on real property, to secure the payment of an indebtedness, and the indebtedness secured by any of them. Person shall mean any individual , firm, partnership, joint venture, association, corporation (except an urban redevelopment corporation organized pursuant to the pro- visions of The Urban Redevelopment Corporations Law) , whether organized for profit or not, estate, trust, business trust, receiver, or trustee appointed by any state or federal court, syndicate, or any other group or combination acting as a unit, and shall include the male as well as the female gender and the plural as well as the singular number. Real property shall include lands, buildings, improvements, land under water, waterfr6nt' property, any and all easements, franchises and hereditaments, corporeal or incorporeal, every estate, interest, privilege, easement, franchise and right therein, or appurtenant thereto, legal or equitable, including restrictions of record, created by plat, covenant, or otherwise, rights-of-way, and terms for years. Redevelopment shall mean the clearance, replanning, reconstruction, or rehabilitation of any blighted area, and the provision for such industrial , commercial , residential, or public structures and spaces as may be appropriate, including recreational and other facilities incident or appurtenant thereto. -4- ANIL Redevelopment project shall mean a specific work or improvement to effectuate all or any part of a development plan. Urban Redevelopment Corporation Law shall mean Chapter 353 of the Revised Statutes of Missouri and any amendments thereto. Urban renewal plan shall mean a plan for urban renewal established pursuant to Chapter 99, RSMo, and filed of record, which plan is in effect at the time the development plan is submitted. (Ord. No. 9752, § 1(37-3) , 3-1-82) Sec. 23-50. Application for approval of preliminary development plan. Any corporation seeking approval of a development plan must file with the authority and with the director of planning and code enforcement an application for approval of a pre- liminary development plan. Such application shall contain: (1) A legal description of the area to which the preliminary development plan pertains; (2) A conceptual plan for the area to which the preliminary development plan pertains including the proposed uses of the area and the general location and density of those uses; (3) A general description of the properties and improvements within the area to which the preliminary development plan pertains which the corporation proposes to acquire, proposes to demolish, and proposes to rehabilitate; (4) Evidence that the area to which the preliminary development plan pertains is a blighted area; (5) Evidence that the corporation is duly formed under the Urban Redevelopment Corporations Law; (6) Evidence that the corporation has the financial ability to undertake the implementation of the proposed development plan. (Ord. No. 9752, § 1(37=4) , 3-1-82) Sec. 23-51. Hearing on preliminary development plan. -5- (a) A hearing shall be held on the preliminary development plan not later than forty-five (45) days after the filing of the application. (1) The hearing shall be held before the authority whenever any portion of the area to which the plan pertains lies within an area that is subject to an urban renewal plan. (2) The hearing shall be held before the commission whenever no portion of the area to which the plan pertains lies within an area that is subject to an urban renewal plan. (b) Within a reasonable time after the filing of an application for approval of a preliminary development plan, but in no case greater than twenty (20) days thereafter, the authority or the commission - as appropriate - shall set the date for a public hearing regarding the application. (Ord. No. 9752, § 1(37-5) , 3-1-82) Sec. 23-52. Notice of hearing on preliminary plan. The corporation shall provide notice of the hearing at least fifteen ( 15) days prior to the scheduled hearing date. The notice shall state that an application for approval of a preliminary development plan has been filed, shall give the date of the scheduled hearing, and shall also contain a legal description of the property to which the preliminary development plan pertains. The notice shall be posted conspicuously in at least five (5) locations accessible to the public within the area to which the preliminary development plan pertains. The notice shall also be published in a newspaper doing business in the city. (Ord. No. 9752, § 1(37-6) , 3-1-82) Sec. 23-53. Submission of other applications for develop- ment. Once an application for approval of a preliminary develop- ment plan has been filed by a corporation, no other application which pertains in whole or in part to the area included in the preliminary development plan first filed, shall be considered by the authority, the commission or the city council unless the application is filed within sixty (60) days after sub- mission of the preliminary development plan first filed. If the authority, the commission or the city council disapproves the application first filed, and such other applications as may be filed pursuant to this section, other applications may then be filed for the area to which the preliminary development plan first filed pertains. (Ord. No. 9752, § 1(37-7) , 3-1-82) -6- Sec. 23-54. Determination on preliminary plan. The authority or commission, as appropriate, shall make a report to the city council within sixty (60) days after receipt of the preliminary development plan or plans filed. If the authority is the entity approving the plan, it shall send a copy of the report and plan to the commission for its approval or disapproval of those aspects of the plan which require action by the commission. Said report shall state the opinion of the authority or commission as to whether the area to which the preliminary development plan or plans pertain or any portion thereof is a blighted area and whether the plan or plans further the purposes of this article. If the authority or commission is considering more than one plan, it may, but is not required to, recommend one Plan over others. (Ord. No. 9752, § 1(37-8) , 3-1-82) Sec. 23-55. Council determination on plan. (a) The city council shall determine whether all or any part of the area to which the preliminary development plans pertain are blighted as defined by section 23-49. (b) If the city council determines that only a portion of an area is blighted, it may allow the applying corporation a reasonable amount of time to prepare and submit revised preliminary development plans for the area determined to be blighted. (c) If the city council determines that the entire area to which the preliminary development plan pertains is blighted, it shall proceed to determine whether to approve the plan, and if there are several plans, which plan to approve. The city council may approve a plan if it finds that it will further the purposes of this article. Prior to determining whether to approve or disapprove the preliminary development plan, the council may request that the corpora- tion make revisions of the preliminary development plan. (Ord. No. 9752, § 1(37-10) , 3-1-82) Sec. 23-56. Date for submission of final development plan. If the city council approves a preliminary development plan, it shall then set a date for submission of a final development plan by the corporation which will allow the corporation a reasonable time to submit its final develop- ment plan, but in no case greater than one hundred twenty (120) days from the date of city council approval of the -7- ® preliminary development plan. For good cause shown, the council may extend the time for submission of the final development plan. (Ord. No. 9752, § 1(37-11) , 3-1-82) Sec. 23-57. Effect of approval of preliminary develop- ment plan. If the city council approves a preliminary development plan, the authority, the commission, and the city council may not consider any other corporation' s proposed preliminary development plan for all or any part of the area to which the approved preliminary development plan pertains until the occurrence of the earlier of the following events: (1) The corporation whose preliminary development plan was approved consents to such consideration; or (2) The corporation whose preliminary development plan was approved fails to submit a final development plan in the time required by section 23-56; or (3) The city council disapproves the final development Aft plan submitted by the corporation whose preliminary development plan was approved. (Ord. No. 9752, § 1(37-12) , 3-1-82) Sec. 23-58. Filing of final development plan; contents. (a) On or before the date set in the approval of the preliminary development plan for submission of a final develop- ment plan, or any extensions of said date, the corporation shall submit its final development plan to the commission and the authority . The final development plan shall conform to the extent feasible to the preliminary development plan. If the final development plan does not substantially conform to the preliminary development plan, the final plan shall contain a statement of the reasons for non-conformance. (b) The final development plan shall contain: (1) A legal description of the development area by metes and bounds, or other definite designation, along with a listing of ownership interests in each described parcel . (2) A statement of the various stages, if more than one is intended, by which the development is pro- posed to be constructed or undertaken, and the -8- approximate time limit for the completion of each stage, together with a legal description of the real property to be included in each stage. This statement shall also contain a time schedule clearly setting forth reasonable times for start and completion of : a. Acquisition of properties, b. Demolition of buildings, c. Construction of new improvements. The time schedule shall be accompanied by a certificate that .the corporation agrees, as a consideration for approval of the plan, that after approval of the plan it will in good faith attempt to purchase by negotiation any given property within the project area within one hundred eighty (180) days following a request, in writing, by the property owner to the corporation that he desires to proceed with the sale of the property, and that it will , if a sale of the property cannot be consummated within said period, proceed forthwith to file a proceeding in condemnation after the one hundred eighty (180) days have elapsed. Nothing contained in this provision is intended to preclude the initiation of condemnation proceedings prior to the expiration of the one hundred eighty (180) day period. (3) A statement of the existing buildings or improvements in the redevelopment area to be demolished, if any; (4) A statement of existing buildings or improvements in the development area not to be demolished immediately, if any, and the approximate period of time during the demolition, if any, of such building or improvement is to take place; (5) A statement of the proposed improvements, if any, to each building not to be demolished immediately, any proposed repairs or alterations to such buildings, and the approximate period of time during which such improvements, repairs or alterations are to be made; (6) A statement of the type, number or character of each new industrial , commercial , residential , or -9- other building or improvement to be erected or made; (7) A statement of those portions, if any, of the blighted area which may be permitted or will be required to be left as open space, the use to which each such open space is to be put, the period of time each such open space will be required to remain an open space, and the manner in which it will be improved and maintained, if at all ; (8) A statement of those portions, if any, of the redevelopment area which are proposed to be sold, donated, exchanged, or leased to the board of education, public library board, or other public agency, and an outline of the terms of such proposed sale, donation, exchange, or lease; (9) A statement of the proposed changes, if any, in zoning ordinances or maps, necessary or desirable for the redevelopment, and its protection against blighted influences; (10) A statement of the proposed subdivisions or re- subdivisions necessary for the redevelopment plan; (11) A statement of the proposed changes, if any, in streets or street levels, all proposed street closings, and all changes which would have to be made to streets adjoining or near the redevelop- ment project including a plan for financing these changes; (12) A statement of proposed changes, if any, in public facilities and easements, including, but not limited to, school, fire, water, sewer, utilities, police, transportation, park, playground, and recreation, and commentary indicating that these facilities are presently adequate, or will be adequate at the time the redevelopment is ready for use, to service the area; (13) A statement of the character of the existing dwelling accommodations, if any, in the blighted area, the approximate number of families residing therein, together with a schedule of the rentals being paid by them, and a schedule of the vacancies in such 0 -10- accommodations, if any, together with the rentals demanded therefor, and a schedule of the owner-occupied buildings; (14) A statement of the housing accommodations available in other locations in the city for those persons who will be displaced by the redevelopment project. The development plan shall set forth a feasible plan for the relocation of all residents and businesses displaced, including adequate reimbursements for reasonable relocation costs; (lb) A statement of the character, type, quality of construction, approximate number of units, approximate rentals, and approximate date of availability of the proposed dwelling accommodations, if any, to be furnished during construction and upon completion of redevelopment; (16) A statement of any projects or relocations outside of the area of the redevelopment project which would be initiated due to the redevelopment project; (17) A detailed statement of the proposed method of financing the redevelopment; including but not limited to evidence satisfactory to the city council that sufficient funds or securities are immediately available and will be used for financing of the entire development proposed and will remain avail- able until the particular development is started, and evidence satisfactory to the city council that the amount necessary to acquire and clear the land involved is available from such equity and/or other funds; a. Such evidence must be reconfirmed annually until completion of the project by a certificate filed with the city administrator. b. Such evidence shall include any commitments for leases or purchases but, in any event, shall include evidence of marketability of the development proposed. (18) A statement of the persons who it is proposed will be active in or associated with the management of the redevelopment project during a period of at least one year from the date of the approval of the development plan; -11- (19) A statement giving the legal description of the real property owned, or proposed to be purchased or to be acquired by eminent domain, and the reasons why acquisition by condemnation is proposed; (20) A statement giving the legal description of the real property, if any, proposed to be purchased or acquired by eminent domain by the city in behalf of the proponents of the development plan, and the reasons why the aid of the city if sought for this purpose; (21) A statement that the redevelopment corporation shall not assign its rights under the development plan without the prior written consent of the city council, and that in the event of assignment of all or any part of the plan, the corporation shall remain liable for the acquisition and clearance of the blighted areas; (22) The development plan and all applications for approval thereof, may also contain such other statements or exhibits as may be deemed relevant by the city council, the commission, the authority or the proponents. (Ord. No. 9752, § 1(37-13) , 3-1-82) Sec. 23-59. Determinations prior to approval of development plan. A final development plan shall not be recommended by the authority or the commission, as appropriate, until and unless it shall determine: (1) That the area within which the redevelopment is to be made is blighted, and that redevelopment in accordance with the development plan is necessary or advisable to effectuate the public purposes declared in section 23-47; (2) That the development plan is in accordance with the comprehensive plan of the city; (3) That the various stages, if any, by which the redevelopment is proposed to be constructed or undertaken, as stated in the development plan, are practicable and in the public interest; ® (4) That housing accommodations are or will soon be elsewhere available for all persons who will be -12- displaced by the redevelopment project, and that no undue hardship to such persons will be caused thereby ; (5) That public facilities, including but not limited to school , fire, water, sewer, police, transportation, park, playground, and recreation are presently adequate, or will be adequate at the time the redevelopment is ready for use, to service the area; (6) That the proposed changes, if any, in zoning ordinances or maps and in streets and street levels or any proposed street closings, are necessary or desirable for the redevelopment and its protection against blighting influences, and for the city as a whole; and (7) The estimated cost of acquisition of real property which it is proposed the city will acquire for the proponents of the development plan, by the exercise of the power of eminent domain; however, this shall only be done upon an additional payment of such funds as are necessary to reimburse the city for any expenses of any kind which it shall incur in developing these cost estimates. The director of planning and code enforcement shall establish regulations for the implementation of this section. (Ord. No. 9752, § 1(37-16) , 3-1-82) Sec. 23-60. Council hearing and notice regarding final development plan. After receipt of the authority' s or the commission' s recommendation, as appropriate, the city council shall set a date for a public hearing on the final plan within a reasonable time. At least ten (10) days prior to the hearing, the corporation shall provide notice of the hearing by first class mail to each record owner of real property within the area to which the final development plan pertains, and to record owners of real property contiguous with, or separated by public street or alley , from the area to which the final plan pertains. The corporation shall also publish the notice in a newspaper doing business in the city at least ten (10) days prior to the hearing date. (Ord. No. 9752, § 1(37-17, 3-1-82) Sec. 23-61. Council hearing and determination on final plan. -13- (a) At the public hearing, any interested person and the applicant corporation may be heard. After the public hearing, the council may: (1) Unconditionally approve the plan and authorize the mayor on behalf of the city to enter into a contract with the corporation; (2) Approve the plan subject to conditions or restrictions, and authorize the mayor on behalf of the city to enter into a contract with the corporation; (3) Require the corporation to make changes in the plan for resubmission to the council, or to, the authority or the commission (whichever served as the original reviewing entity) ; (4) Disapprove the plan. (b) Council approval of the plan shall be by ordinance. If council approves the plan, then council shall authorize the mayor to enter into a contract on behalf of the city with the proposer or proposers of the plan, such contract to contain the provisions as embodied in the plan and the approving ordinance, a provision that the applicable provisions of this chapter shall be incorporated by reference into such contract, and a provision that the terms, conditions, or provisions of the contract can be neither modified nor eliminated except by mutual agreement between the city council and the proposer or proposers of the plan. (Ord. No. 9752, § 1(37-18) 9 3-1-82) Sec. 23-62. Council findings for plan approval . The city council may approve a plan only if it makes the same findings as required in section 23-59. (Ord. No. 9752, § 1(37-19) 9 3-1-82) Sec. 23-63. Certificate of public convenience and necessity for corporation to acquire property by eminent domain. If the corporation proposing a development plan seeks to acquire by eminent domain in its own name all or any part of the real property described in the development plan, the council may by the ordinance approving such plan determine that the public convenience and necessity will be served by the development plan and redevelopment project, and may grant to such corporation a certificate of public convenience and necessity authorizing and empowering such corporation to acquire by the exercise of eminent domain such real property -14- In fee simple or other estate; provided that such real property shall be devoted to the purposes and used subject to the conditions described in the development plan. Such corporation may thereafter exercise the power of eminent domain in the manner provided for corporations in Revised Statutes of Missouri, or it may exercise the power of eminent domain by the manner provided by any other applicable statutory pro- vision. Property already devoted to a public use may be acquired in like manner, provided that no real property belonging to the city or to the state, and any political subdivision thereof may be acquired without its consent. (Ord. No. 9752, § 1(37-20) 9 3-1-82) Sec. 23-64. Terms of contract. The contract between the city and the corporation shall incorporate the provisions of the development plan, and in addition to such other terms as are appropriate, may include the following provisions: (1) A provision which prohibits assignment of the corporation' s rights under the development plan except on the terms and conditions set forth in the contract; (2) A provision which requires the corporation to negotiate in good faith for the purchase of property to be acquired, and that property shall not be condemned until a negotiated purchase has been attempted; (3) A provision setting forth the amount and terms of any tax abatement for the real property to which the development plan pertains; (4) Provisions setting forth the property, if any, the corporation will dedicate to the city or other Public agencies for public use; (5) Provisions setting forth any improvements the city will provide or construct in conjunction with the development plan; (6) Provisions requiring the corporation to submit periodic reports to the city regarding the progress of the project, the financial condition of the corporation, and the availability of equity or loan financing for future stages of the develop- ment plan; -15- (7) A provision limiting the net earnings of the corporation in the manner specified in the Urban Redevelopment Corporations Law; (8) Provisions setting forth the remedies for breach of the contract by the city or the corporation, and remedies for failure of the corporation to complete development in the time and manner specified in the contract and final development plan. (Ord. No. 9752, $ 1(37-21) , 3-1-82) Sec. 23-65. Amendment of final plan. If the city council approves a final development plan, that plan shall not thereafter be amended without compliance with the requirements for approval of a final plan. (Ord. No. 9752, § 1(37-22) , 3-1-82) Sec. 23-66. Fees. A corporation which applies for approval of a preliminary or final development plan may be charged a reasonable non- refundable fee by the authority or the commission, whichever is the initial reviewing entity, for processing of the applica- tion. Such fee shall not exceed five hundred dollars ($500.00) for a preliminary development plan and one thousand dollars ($1, 000. 00) for a final development plan. The exact fee shall be set by council . (Ord. No. 9752, $ 1(37-23) , 3-1-82) Sec. 23-67. Deposit when city acquires property for corporation. (a) If the corporation proposing a development plan seeks to have the city acquire by eminent domain or otherwise, and thereafter clear all or any part of the real property described in the development plan, such corporation shall at the time hereinafter provided deposit in escrow with the city, subject to the provisions of this ordinance and regula- tions established by the director of planning and code en- forcement, a sum of money in cash or negotiable federal or municipal securities of a cash market value equal to the cost estimated by the commission to be incurred by the city in acquiring, or, if the clearance thereof is also sought, in acquiring and clearing such real property. (b) The term "cost" as used in this section and section 23-68 means all expenditures by the city, including what is -16- paid for such real property and the clearance thereof, appraisal , abstract, title and recording fees, court costs, witness fees, fees of the city, authority or commission, and all other expenses of acquiring and clearing such property . (c) All securities deposited in escrow with the city shall be promptly placed in a safe deposit box. (Ord. No. 9752, § 1.(37-25) , 3-1-82) Sec. 23-68. Acquisition, resale of property by city . (a) Within ten (10) days after the council shall have approved any development plan calling for the acquisition by the city by the exercise of the power of eminent domain or otherwise of all or any part of the real property described therein, the corporation submitting such plan shall deposit in escrow with the city the cash amounts or securities re- quired by section 23-67. The council may provide that the city acquire such property and procure the fee simple title thereto by purchase, by the exercise of the power of eminent domain, or by other means. The payment therefor by the city, in whole or in part, may be made out of the general funds of the city, or in whole or in part, by general obligation bonds. The city shall then proceed to acquire such real property in accordance with such ordinance. When- ever any real property, land, easement, right-of-way, use, or right of any character is taken or damaged by the city for such purpose, just compensation shall be paid to the owner thereof in accordance with the laws applicable thereto. (b) After acquiring the title to such real property, the city shall sell to the corporation such real property and all interest therein for the purpose of redevelopment, as hereinafter provided, subject to such restrictions, exceptions, and conditions as may be recommended by the authority or commission (depending upon whichever is the initial reviewing entity) , or which the council deems to be in the public interest. The property shall be sold for a price not less than its "cost, " as defined in section 23-67. (c) The deposit shall be applied upon the purchase price, and the city shall give due credit therefor. When such deposit is represented by securities, the city shall immediately sell the same at the current market price thereof at private sale for cash and apply the proceeds to the selling price of such real property . If such deposit should prove to be insufficient to equal the actual cost to the city of such real property when such cost is determined after purchase, or by action of a condemnation jury, or otherwise, as the case may be, then such corporations shall make an additional -17- deposit with the city upon ten ( 10) days' written notice from the city of a sum of money in cash equal to such additional acquisition cost as so determined. If the corporation fails to make such additional deposit, the city may, at its option, thereupon repeal the ordinance providing for the acquisition of such real property and dismiss the pending condemnation proceedings, if any . In such last event, the expenses of such uncompleted acquisition and condemnation proceedings, if any, shall be charged to and paid by the person or corporation so making such deposit and the amount thereof shall be withheld by the city from the funds or securities deposited in escrow and applied by the city' to the payment of such expenses. The balance of such funds and securities so deposited in escrow shall then be returned to the owner thereof . Sale of such securities may be made only upon order of the council by resolution or ordinance. (d) In the event the deposit exceeds the final cost of acquisition, the balance shall be used to satisfy in part or in full legal obligations which the corporation may owe the city. Any balance thereafter remaining shall be returned to the corporation within thirty (30) days after a final deter- mination, judicial or otherwise, and payment thereof of the price to be paid for the real property. Ash (Ord. No. 9752, § 1(37-25) , 3-1-82) Sec. 23-69. Financial restrictions on corporation. (a) No corporation whose development plan has been approved by the council shall : (1) Issue income debentures, bonds, notes, or other evidences of debt bearing or paying an interest rate in excess of the rate of interest allowed by law. (2) Pay any interest on its income debentures or dividends on its stock, regardless of class or preference, during any dividend year unless there shall exist at the time of such payment no default under any amortization requirements with respect to its indebtedness, nor unless all accrued interest, taxes, and other public charges shall have been duly paid or reserves set up for the payment thereof, and adequate reserves provided for depreciation, obsolescence and other proper reserves. (b) The net earnings of a corporation whose development plan has been approved by the council shall be limited to an amount not to exceed the rate of return allowed by law of ® the cost to such corporation of the redevelopment project -18- including the cost of the land or the balance of such total cost of the project as reduced by amortization payments; provided that the net earnings derived from any redevelopment project shall in no event exceed the rate of return allowed by law upon the entire cost thereof. Such net earnings shall be computed after deducting from gross earnings the following: (1) All reasonable costs and expenses of maintenance and operation. (2) Amounts paid for taxes, assessing, insurance premiums, and other similar charges. (3) An annual amount sufficient to amortize the cost of the entire project at the end of the period, which- shall be not more than sixty (60) years from date of completion of the project. (Ord. No. 9752, § 1(37-26) , 3-1-82) Sec. 23-70. Disposition of surplus earnings of corporation. The development plan may, upon approval of the council , contain provisions that the surplus earnings provided under section 23-69: (1) May be held by the corporation as a reserve for maintenance of such rate of return in the future and may be used by the corporation to offset any deficiency in such rate of return which may have occurred in prior years; or (2) May be used to accelerate the amortization payments; or (3) May be used for the enlargement of the project; or (4) May be used for reduction in rentals therein. At the termination of the tax relief granted pursuant to section 23-72, the urban redevelopment corporation shall make a strict accounting of surplus earnings and shall turn over to the city any excess of such surplus earnings not previously used as provided in paragraph ( 1) , (2) , (3) , or (4) of this section. (Ord. No. 9752, § 1(37-27) , 3-1-82) -19- Sec. 23-71 . Accounting practices. Every corporation operating under this article shall establish and maintain depreciation, obsolescence, and other reserves; also surplus and other accounts, including a reserve for the payment of taxes according to recognized standard accounting practices. (Ord. No. 9752, § 2(37-28) , 3-1-82) Sec. 23-72. Tax relief for redevelopment corporations. (a) The real property of a corporation acquired pursuant to this article shall not be subject to assessment or payment of general ad valorem taxes imposed by the city or by the state or any political subdivision thereof for a period of up to ten ( 10) years as set out in the development plan after the date upon which such corporation becomes owner of such real property, except to such extent and in such amount as may be imposed upon such real property during such period measured solely by the amount of the assessed valuation of the land, exclusive of improvements acquired pursuant to this chapter and owned by such corporation, as was determined by the assessor of the county, for taxes due and payable thereon during the calendar year preceding the calendar year Agh during which the corporation acquired title to such real property. The amounts of such tax assessments shall not be increased by the city or by the state or any political sub- division thereof during such ten-year period so long as the real property is owned by an urban redevelopment corporation and used in accordance with a development plan authorized by the council . (b) If any such real property was tax exempt immediately prior to ownership by any such corporation, the city shall immediately request such county assessor to promptly assess such land, exclusive of improvements, in accordance with the provisions of Section 353. 110, Revised Statutes of Missouri . The amount of such assessed valuation so fixed by the county assessor shall not be increased by the city or by the state or any political subdivision thereof during the ten-year period next following the date upon which such corporation acquired ownership thereof, so long as such real property is owned by an urban redevelopment corporation and used in accordance with the development plan authorized and approved by the council . (c) For the next ensuing period of up to fifteen ( 15) years as set out in the development plan, all ad valorem taxes upon such real property shall be measured by the assessed valuation thereof as determined by the city upon the basis -20- of not to exceed fifty ( 50) percent of the true value of such real property, including any improvements thereon. Nor shall such valuations be increased over fifty (50) percent of the true value of such real property from year to year during the period of up to fifteen ( 15) years, so long as such real property is owned by an urban redevelopment corporation and used in accordance with an authorized development plan. (d) After such periods established in the development plan, such real property shall be subject to assessment by the city and payment of all ad valorem taxes based on the full true value of the real property . Such property shall be owned and operated by the urban redevelopment corporation free from the conditions, restrictions, and provisions of this article, the approving ordinance, and any rule or regu- lation adopted pursuant to this article; provided that at any time after the completion of the redevelopment project as authorized by ordinance the urban redevelopment corporation may elect to pay a sum equivalent to the amount of the general ad valorem taxes, not including interest or penalties, which would have been levied on the full value of the property from the date of the completion of the project. From that date, such real property shall be owned and operated by the urban redevelopment corporation free from the conditions, restrictions, and provisions of this chapter, the approving ordinance, and any rule or regulation adopted pursuant to this article. (e) In the course of considering any development plan for approval, the authority, the commission, and the city council shall give particular recognition to any agreement, in writing, on behalf of the corporation presented such plan that, notwithstanding the provisions of the Missouri Redevelopment Corporations Law, it will make payments in lieu of real property taxes to the appropriate taxing bodies. (f) An urban redevelopment corporation may sell or otherwise dispose of any or all of the real property acquired by it for the purpose of a redevelopment project. The ordinance approving any development plan, and any contract entered into pursuant thereto, may provide that in the event of the sale or other disposition of real property of any urban redevelopment corporation by reason of the foreclosure of any mortgage or other lien through insolvency or bankruptcy proceedings, or by order of any court of competent jurisdiction, or by voluntary transfer or otherwise, the partial tax relief provided under this section shall inure to any purchaser of such real property so long as such purchaser shall continue to use, operate, and maintain such real property in accordance ® with the provisions of the development plan. If such ordinance -21- and contract do not so provide and the purchaser of such real property shall continue to use, operate, and maintain such real property in accordance with the provisions of the redevelopment plan, the council may grant the partial tax relief provided in this section. If such real property shall be used for a purpose different than that described in the redevelopment plan, or if the purchaser does not desire the property to continue under the redevelopment plan, the real property shall be assessed for ad valorem taxes upon the full true value of the real property and may be owned and operated free from any of the conditions, restrictions, or provisions of this article. (Ord. No. 9752, S 1(37-29) , 3-1-82) Sec. 23-73. Authority or commission to check compliance, make reports, adopt rules and regulations. (a) It shall be the duty of the authority or commission (depending upon whichever was the initial reviewing entity) , after a final development plan has been approved by the city council , to investigate and determine from time to time during construction of the development project whether the corporation undertaking such development plan is fully com- plying with the provisions thereof in the manner and at the times fixed therein for the performance of the various stages thereof. . (b) It shall also be the duty of the authority or commission (depending upon whichever was the initial reviewing entity) to make reports from time to time during the con- struction of the redevelopment project, and at least every six (6) months to the council regarding each redevelopment project and the performance or compliance with each development plan, and also as to compliance with the provisions of this article by any corporation operating thereunder. (c) The city council may for good cause shown grant to a corporation operating under an approved development plan an extension of time in which to complete the redevelopment project, or any step or portion thereof. (d) When a corporation operating under an approved development plan shall have completed the redevelopment project in accordance with the provisions of the development plan, in the manner and at the time fixed therein for the performance of the various stages thereof, the authority or commission (depending upon which entity conducted the initial review) upon the written request of such corporation, shall conduct an investigation. If that entity determines that the project has been so completed, it shall recommend -22- Ash to the city council that a certificate of full compliance be issued to such corporation. The city council may authorize the authority or commission to issue a certificate of compliance. The investigations and reports of the authority and commission required by subsections (a) and (b) of this section shall not be required or made subsequent to the date of issuance of such certificate. However, every such corporation shall render annually to the director of finance, during the existence of the tax relief period provided in section 23- 72, three (3) copies of its financial report, including a certified audit prepared by a certified public accountant for the preceding year. This report shall disclose the earnings of the corporation and the disposition of any net earnings in excess of those provided for under section 23-68, and the interest rate on income debentures, bonds, notes, or other evidences of debt of the corporation. The director of finance shall review the financial report of the corporation and thereafter he shall file with the city council and the authority and commission the said financial report, accompanied by his opinion, as to compliance by the corporation with section 23-68. The corporation shall pay to the city a reasonable fee each year for this financial review and report. The fee shall be not less than one hundred dollars ($100.00) and shall be specified in the contract between the city and the corporation. (Ord. No. 9752, § 1(37-30) , 3-1-82) Sec. 23-74. Remedies for failure to follow plan. (a) Whenever any person or corporation operating under an approved development plan does not substantially comply with the development plan within the time limits and in the manner for the completion of each stage thereof as therein stated, reasonable delays caused by unforseen circumstances beyond their control alone excepted, or shall do, permit to be done anything contrary to this chapter, or fail , or omit to do anything required of it by this article, or shall be about so to do, permit to be done, or fail or omit to have done, then any such fact may be certified by the authority or commission (depending upon which entity conducted the initial review) to the city administrator, who may recommend that the city counselor commence a proceeding in the circuit court in the name of the city to have such action, failure, omission, threatened action, or omission stopped, prevented, or rectified by injunction or otherwise, or in the name of the city to bring an action for damages against the urban redevelopment corporation for breach of any of the provisions of the urban redevelopment plan. In the event the authority or commission (as appropriate) shall determine that a -23- NW corporation has abandoned construction before completion of the project in accordance with the terms of an approved development plan, the real property included in such plan shall from that date be subject to assessment and payment of all ad valorem taxes based on the true full value of such real property. (b) Whenever any person or corporation operating under an approved development plan does not substantially comply with the development plan within the time limits and in the manner for the completion of each stage thereof as therein stated, reasonable delays caused by unforseen circumstances beyond their control alone excepted, or shall do, permit to be done anything contrary to this chapter, or fail or omit to have done, then the authority or commission (depending upon which entity conducted the initial review) may hold a hearing to determine whether it should recommend revocation of the approval of the final plan. The authority or commission, as appropriate, shall then send its recommendation to the city council which may then hold a hearing to determine whether it approval of the final plan should be revoked. If the city council revokes its prior approval of the final plan, then any property included in such plan shall from that date be subject to assessment and payment of all ad Aft valorem taxes based on the true full value of such real property, and the authority, commission and city council shall be able to consider new plans for that property . (Ord. No. 9752, § 1( 37-31) , 3-1-82) Sec. 23-75. Power of city to acquire, clear, develop, sell sites. The city may : (1) Acquire by the exercise of the power of eminent domain, or otherwise, an area designated on any master or comprehensive plan of the city as a redevelopment or urban renewal area; (2) Clear any such real property and install , con- struct, and reconstruct street, utilities and any and all other city improvements necessary for the preparation of such area for use in accordance with the provisions of this article; and (3) Sell such real property for use in accordance with the provisions of this article. (Ord. No. 9752, § 1(37-32) , 3-1-82) -24- Sec. 23-76. Grants, loans from United States and state. The city or any person or corporation may accept grants or loans of money from the government of the United States or the state or any departments or agencies thereof to effectuate the purposes of this article. (Ord. No. 9752, § 1(37-33) , 3-1-82) Sec. 23-77. Plan approval does not substitute for commission actions. Approval of the preliminary and final plans does not constitute rezoning, subdividing, or any other act requiring action by the commission and the city council under the provisions of Chapter 89, RSMo. , or under the provisions of any ordinance enacted pursuant to Chapter 89, RSMo. Section 2: This ordinance shall be in full force and effect from and after its passage and approval . Z� Passed ^,�Q �-�� Approved ley ey --TEd P iding Off er Mayor ATT T: City Clerk -25-