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HomeMy Public PortalAboutORD09752 BILL NO. " INTRODUCED BY COUNCILMAN i ORDINANCE NO. i i ;IAN ORDINANCE OF THE CITY OF JEFFERSON, MISSOURI , RELATING TO i' URBAN REDEVELOPMENT THROUGH PRIVATE CAPITAL INVESTMENT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF JEFFERSON, :' MISSOURI, AS FOLLOWS: !' SECTION 1. The Code of the City of Jeffeson, Missouri, is hereby amended by adding thereto one new chapter, Chapter 37, Urban Rede- velopment, which shall read as follows: jl Section 37-1. Determination of Necessity for Legislation. It is hereby determined and declared by the Council that in certain portions f of the City obsolete, decadent, substandard, or blighted areas exist i!occasioned by inadequate planning, excessive land coverage, lack of j, proper light, air or open space, defective design or arrangement of %uildings, or the existence of buildings, which by reason of age, +obsolescence, inadequate or outmoded design, or physical deterioration, 11 have impaired the economic value of large areas, infecting them with j! blight; and that such areas are characterized by depreciated values, ,; impaired investments, reduced or negligible income and consequent tax f delinquencies; that such conditions exist in areas where obsolete, decadent, substandard, outworn or outmoded industrial, commercial, or I 1! residential buildings prevail; that their assembly for purposes of ,i clearance, replanning, rehabilitation, reconstruction, and redevelopment may be difficult and costly; 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 elsewhere; that it is desirable to induce private capital investments to alleviate these con- ilditions and redevelop these areas but that sometimes it is impossible or uneconomic for individual owners to independently undertake to remedy !;such conditions; that such conditions require the employment of capital ff ion an investment basis, allowing however, that widest latitude in the ilamortization of any indebtedness created thereby; that such conditions 11further require the acquisition of adequate areas, at fair prices, the ;clearance of such areas through demolition of existing obsolete, deca- dent, inadequate, or unsafe buildings and the redevelopment of such +I areas under proper supervision with appropriate planning as to land use and construction policies; and the clearance, replanning, rehabilita- ition, reconstruction, 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 that such obsolete, decadent, substandard, and blighted areas constitute a menace to the citizens of the City. Therefore, ;'the necessity for the provisions herein enacted is hereby declared as a ;!matter of legislative determination to be in the public interest. ISection 37-2. ' Acceptance of -A lication of State Enabling Act. The '!provisions of the "Urban an Redevelopment Corporations Law," found at ;;Chapter 353, Revised Statutes of Missouri, are hereby accepted and shall ;;apply to all persons and corporations operating under this ordinance { ;!insofar as the same may be applicable thereto. '! I o l �l ±� I 1 1 fi Section 37-3. Definitions. The following terms whenever used or ",, referreg to in this ordinance shall, unless a different intent clearly appears from the context, be construed to have the following meanings: (1) "Area" shall mean that portion of the City which the City �Icouncil has- ound or shall find to be blighted, so that the clearance, !I replanning, rehabilitation, or reconstruction thereof is necessary to ti effectuate the purposes of this ordinance. Any such area may include !buildings or improvements not in themselves blighted, and any real II property, whether improved or unimproved, the inclusion of which is ti deemed necessary for the effective clearance, replanning, reconstruction, 'for rehabilitation of the area of which such buildings, improvements, or real property form a part. (2) "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 i are conducive to ill health, public safety, transmission of disease, ;!crime, or inability to pay reasonable taxes. (3) "Commission" shall mean the Planning and Zoning Commission of the City. I� (4) "Corporation" shall mean an urban redevelopment corporation organized under and pursuant to the provisions of the "Urban Redevelop- ment Corporations Law." (5) "Development Cost" shall mean the amount determined by the Commission to be the actual cost of redevelopment, or of that part ithereof for which such determination is made. The term shall include, among other costs, the reasonable expenses of planning the redevelop- ment, including preliminary studies and surveys, neighborhood planning, land 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 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, rehabilitation, redevelopment, remodeling, or initial re- pair 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. (6) "Development Plan" shall mean a plan, together with any amendments thereto, for the redevelopment of all or any part of a blighted area. (7) "Mortgage" shall mean a mortgage, trust indenture, deed of Etrust, 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. (8) "Person" shall mean any individual, firm, partnership, joint !venture, association, corporation (except an urban redevelopment corpora- tion organized pursuant to the provisions 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 Fourt, 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. �I 1' I -2- 1 r f i, i (9) "Real Property" shall include lands, buildings, improvements, : land under water, waterfront property, any and all easements, fran- chises and hereditaments, corporeal or incorporeal, every estate, ® interest, privilege, easement, franchise and right therein, or appur- , tenant thereto, legal or equitable, including restrictions of record, created by plat, covenant, or otherwise, rights-of-way, and terms for ,! years. i (10) "Redevelopment" shall mean the clearance, replanning, recon- 1! struction, or rehabilitation of any blighted area, and the provision for i i� such industrial, commercial, residential, or public structures and spaces �+ as may be appropriate, including recreational and other facilities incident or appurtenant thereto. (11) "Redevelopment Project" shall mean a specific work or improve- ment to effectuate all or any part of a development plan. li i; (12) "Urban Redevelo ment Corporation Law" shall mean Chapter 353 of the Revised Statutes of Missouri and any amendments thereto. i Section 37-4. Application for Apgroval of Preliminary Development Plan. Any may file with the Director o lanning and Code Enforcement an application for approval of a preliminary development plan. Such application shall contain: i� (1) A legal description of the area to which the preliminary idevelopment 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; i� (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; 1 (4) Evidence that the area to which the preliminary development plan pertains is a blighted area as those terms are defined in Section 31-3; (5) Evidence that the Corporation is duly formed under the Urban Redevelopment Corporations Law; i (6) Evidence that the corporation has the financial ability to ® undertake the implementation of the proposed development plan. Section 37-5. Commission Hearing Date. Within a reasonable time after the filing of an application for approval of a preliminary 'development plan, but in no case greater than sixty (60) days there- i1 after, the Commission may set a date for a public hearing regarding the )application. The hearing date shall be set not later than ninety (90) days after the filing of the application. Section 37-6. Notice of Commission Hearing. The corporation shall iprovide notice of the Commission hearing at least fifteen (15) days prior 1to 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 Commission hearing, and shall also 'Icontain a legal description of the property to which the preliminary development plan pertains. The notice shall be posted conspicuously in �lat least five (5) locations accessible to the public within the area to 111which the preliminary development plan pertains. The notice shall also jibe published in a newspaper doing business in the city. �i -3- , I j I� } Section 37-7. Submission of Other Applications. Once an application �i for approval of a preliminary development plan has been filed by a I;corporation, no other application which pertains in whole or in .part to i ® i the area included in the preliminary development plan first filed, shall Hbe considered by the Commission or the City Council unless the 'application is filed at least twenty (20) days prior to the Commission's hearing date on the application first filed. If 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. �1Section 37-8. Commission Hearing and Determination. At the public hearing held by the Commission, any interested person and any corpora- 11 tion whose preliminary development plan is before the Commission may be I1 heard. After public hearing, the Commission shall make a report to the ';City Council regarding the preliminary development plan or plans filed. ,l Said report shall state the opinion of the Commission as to whether the area to which the preliminary development plan or plans pertain or any portion thereof is a blighted area as defined in Section 31-3 and 1,whether the plan or plans further the purposes of this Chapter. If the �l Commission is considering more than one plan, it may, but is not j required to, recommend one plan over others. Section 37-9. Hearing Date and Notice of Council Hearing. Within a reasonable time after the receipt of the Commission Report, but in no case greater than sixty (60) days thereafter, the City Council may hold a public hearing on the application. At least ten (10) days prior to the hearing date, the Corporation whose preliminary plan is before the Council shall provide notice of the hearing by first class mail to each record owner of real property within the area to which the preliminary development plan pertains, and to record owners of real property 11contiguous with, or separated by public street or alley, from the area to which the preliminary development plan pertains. The Corporation i4shall also publish the notice in a newspaper doing business in the city at least ten (10) days prior to the hearing date. ,I Section 37-10. Council Hearing and Determination. At the public hearing, any interested person and any corporation whose preliminary development plan is before the City Council may be heard. After the public hearing, 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 31-3. If the City Council determines that only a portion of an area is ® blighted, it may allow the applying corporation or corporations a reasonable amount of time to prepare and submit revised preliminary !development plans for the area determined to be blighted. The revised preliminary development plan may be considered by the City Council at a continued public hearing, or may be referred to the Commission for its public hearings and determination as in the case of a new plan. . 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 I that it will further the purposes of this ' Chapter. Prior to determining !whether to approve or disapprove the preliminary development plan, the Council may request that the Corporation make revisions of the prelim- inary development plan. Said revisions may be considered by the City IjCouncil at a continued public hearing, or may be referred to the lCommission for its public hearing and determination as in the case of a new plan. I =i -4- I I� i (1 Section 37-11. Date for Submission of Final Development Plan. If the City Council approves a preliminary development p an, it shall then set a date for submission of a final development plan by the Corporation i which will allow the Corporation a reasonable time to submit its final I development plan, but in no case greater than three hundred (300) days from the date of City Council approval of the preliminary development plan. For good cause shown, the Council may extend the time for i submission of the final development plan. Section 37-12. Effect of A2proval of Preliminary Development Plan. If the City Council approves a preliminary development pan, neither the Commission nor the City Council may 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 37-11; or (3) The City Council disapproves the final development plan submitted by the Corporation whose preliminary development plan was approved. Section 37-13. Filing of Final Development Plan. On or before the date set in the approval of the preliminary development plan for submission of a final development plan, or any extensions of said date, the corporation shall submit its final development plan. 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. The final development plan shall contain: (1) Legal description. A legal description of the development 1 area by metes and bounds, or other definite designation, l along with a listing of ownership interests in each described p arcel. (2) Stages of project. A statement of the various stages, if more than one is intended, by which the development is proposed to be constructed or undertaken, and the 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 comple- tion of (a) Acquisition of properties, (b) Demolition of buildings, (c) Construction of new improvements. T$e time schedule shall be accompanied by a certification 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; -5- i (3) Property to be demolished. A statement of the existing buildings or improvements in the redevelopment area to be �j demolished, if any; (4) Property not to be demolished. 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) Building renovation, A statement of the proposed improve- ments, 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) New construction. A statement of the type, number of char- atter of each new industrial, commercial, residential, or other building or improvement to be erected or made; (7) Open Space. 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) Property for public agencies. 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 educa- tion, public library board, or other public agency, and an outline of the terms of such proposed sale, donation, ex- change, or lease; (9) Zoning changes. 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) Subdivisions. A statement of the proposed subdivisions or re-subdivisions necessary for the redevelopment plan; (11) Street changes. 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 redevelopment project including a plan for financing these changes; (12) Facilities Changes. A statement of proposed changes, if any, in public facilities and easements, including, but not limited to, school, fire, water, sewer, utilities, police, transporta- tion, 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; 1 Dwelling( 3) g 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 accommodations, if , any, together with the rentals demanded therefor, and a schedule of the owner-occupied buildings; -6- C i I j (14) Housing and business relocation. 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; including, as a minimum, compliance with the Federal Relocation Assistance Act. (15) Proposed housing. 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 the redevelopment; (16) Changes outside of redevelopment project area. A statement of any projects or relocations outside of the area of the redevelopment project which wuuld be initiated due to the redevelopment project; f (17) Financing. 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 normal equity financing of the entire development proposed and will remain available 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) Management. 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 (1) year from the date of the approval of the development plan; (19) Eminent domain. 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) Eminent domain in behalf of proponents of plan. 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 is sought for this purpose; (21) Assignment of development plan. A statement that the rede- velopment 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; 1 4 1 r (22) Other information. The development plan and all applications to the commission for approval. thereof, may also contain such other statements or exhibits as may be deemed relevant by the City Council, the commission, or the proponents. Section 37-14. Commission Hearing and Notice Regarding Final Develol2ment Plan. Wit in a reasonable time after the filing of a final development pan, but in no case greater than sixty (60) days there- after, the commission shall hold a public hearing to consider the plan. IIAt least ten (10) days prior to the commission hearing, the corporation shall give notice of the hearing in the manner and to the persons ( specified in Section 37-9. Section 37-15. Commission Hearing and Determination. At the public hearing, any interested person and the applicant corporation may be heard. After the public hearing, the commission shall make a recommen- dation to the City Council as to whether the plan should be approved, approved subject to revisions of the plan, or disapproved. Section 37-16. Determinations Prior to Approval of Development Plan. A develoT—ment plan shall not be approved by the Commission until anT-unless the Commission shall determine: (1) Necessit . That the area within which the redevelopment is to be made is big ted, and that redevelopment in accordance with the development plan is necessary or advisable to effectuate the public purposes declared in Section 37-1; (2) Compliance with Master Plan. That the development plan is in accordance with the comprehensive plan of the City; (3) Stages of Plan. 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) Adequacy of Housing. That housing accomodations are or will soon be elsewhere available for all persons who will be displaced by the redevelopment project, and that no undue hardship to such persons will be caused thereby; (5) Adequacy of Public Facilities. 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 a ® (6) Zoning, Street Changes. 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 redevelop- Iment and its protection against blighting influences, and for the City as a whole; and (7) Costs of Condemnation. 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 regulation for the implementation of this Section. I e _8_ !1 I I� I j. Section 37-17. Council Hearin_ and Notice Regarding Final Develo ment Flan.—Af receipt o t e gomm ss on s rec-ommen at on, t e ty ! ounci shall set a date for a public hearing on the plan within a 11 reasonable time. At least ten (10) days prior to the hearing, the t1 corporation shall provide notice of the hearing in the manner and to the persons specified in Section 37-9. jSection 37-18. Council Hearins and Determination. At the public j hearing, any intereste person and the applicant corporation may be (; heard. After the public hearing, the Council may: (I I (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; i l (3) Require the corporation to make changes in the plan for resubmission ei'i:her to the Council or to the Commission; (4) Disapprove the plan. Council approval of the plan shall be by ordinance. If Council �{ approves the plan, then Council may 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 1 of this chapter shall be incorporated by reference into such contract, land a provision that the terms, conditions, or provisions of the contract 1` can be neither modified nor eliminated except by mutual agreement �I between the City and the proposer or proposers of the plan. i I' Section 37-19. Council Findings. The City Council may approve a plan only if it makes the same findings as required in Section 37-16. I Section 37-20. Certificate of Public Convenience and Necessity for i Corporation to Ac4uire roperty 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 �1development plan, the Council may by the ordinance approving such plan determine that the public convenience and necessity will be served 1 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 in fee simple or other estate; 1 provided that such real property shall be devoted to the purposes and i used subject to the conditions described in the development plan. Such �i corporation may thereafter exercise the power of eminent domain in the I 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 provision. 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. Section 37-21. Terms of Contract. The contract between the City and the corporation s all incorporate the provisions of the development plan, 'land in addition to such other terms as are appropriate, may include the following provisions: �I (1) Assignment of development plan. A provision which prohibits I� assignment of the corporation's rights under the development plan except I( on the terms and conditions set forth in the contract; I Li (2) Voluntary Acquisition. A provision which requires the corpora- 11 tion 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) Tax Abatement. A provision setting forth the amount and terms G of any tax abatement for the real property to which the development plan pertains; (4) Dedications. Provisions setting forth the property, if any, the corporation will dedicate to the City or other public agencies for public ' use; (5) City Investment. Provisions setting forth any improvements the f City will provide or construct in conjunction with the development plan; �II (6) Periodic Reports. 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 ifinancing for future stages of the development plan; (7) Earnings. A provision limiting the net earnings of the corpora- ' tion in the manner specified in the Urban Redevelopment Corporations Law; (8) Remedies. 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. Section 37-22. Amendment of 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. Section 37-23. Fees. A corporation which applies for approval of a preliminary or final development plan may be charged a reasonable non-refundable fee for processing of the application. Such fee shall not exceed five hundred dollars ($500) for a preliminary development plan and one thousand dollars ($1000) for a final development plan. The exact fee shall be set by Council. Section 37-24. Deposit When City Acquires Property for Corporation. (1) Amount. If the person or 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 person or corporation shall at the time hereinafter provided deposit in escrow with the City, subject to the provisions of this ordinance and regulations established by the Director of Planning and Code Enforcement, 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. (2) "Cost" Defined. The term "cost" as used in this section and Section 37-25 means all expenditures by the City, including what is paid for such real property and the clearance thereof, appraisal, abstract, title and recording fees, court costs, witness fees, fees of the City Planning and Zoning Commission, and all other expenses of acquiring and .clearingp such property. (3) Custody of Securities. All securities deposited in escrow with he City shall be promptly placed in a safe deposit box. -10- l �i Section 37-25. Ac2uisition, Resale of Property by City. i (1) Within ten days after the Council shall have approved any !'development plan calling for the acquisition by the City by the exercise ® iiof the power of eminent domain or otherwise of all or any part of the I i real property described therein, the person or corporation submitting �Isuch plan shall deposit in escrow with the City the cash amounts or 1 ��securities required by Section 37-24. 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 I�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 i real property in accordance with such ordinance. Whenever any real i,property, land, easement, right-of-way, use, or right of any character ' is taken or damaged by the City for such purpose, just compensation '1 shall be paid to the owner thereof in accordance with the laws applicable thereto. .r ij (2) 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 ,I the exceptions, and conditions as may be recommended by the (Commission, or which the Council deems to be in the public interest. The i property shall be sold for a price not less than its "cost," as defined in Section 37-24. i The deposit shall be applied upon the purchase price, and the J' City shall give due credit therefor. When such deposit is represented by i securities, the City shall immediately sell the same at the current !I 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 4 when such cost is determined after purchase, or by action of a condemnation jury, or otherwise, as the case may be, then such persons shall make an additional deposit with the City upon ten (10) days' written notice from the City of a sum of money in cash equal to such M additional acquisition cost as so determined. If the corporation fails to { make such additional deposit, the City may, at its option, thereupon i repeal the ordinance providing for the acquisition of such real property iand dismiss the pending condemnation proceedings, if any. In such last event, the expenses of such uncompleted acquisition and condemnation i proceedings, if any, shall be charged to and paid by the person or �I corporation so making such deposit and the amount thereof shall be with- held 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. Section 37-26. Financial Restrictions on Corporation. i (1) Obligations, Interest Thereon. No corporation whose development f Ian has been approved by the Council shall: � (a) Issue in come debentures bonds note s, or other evidences of debt bearing or paying an interest rate in excess of nine percent (9%) per annum. 1 (b) 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 14unless all accrued interest, taxes, and other public charges shall have M en duly paid or reserves set up for the payment thereof, and 1adequate reserves provided for depreciation, obsolescence and other proper reserves. -11- If � ;i �! (2) Net Earnings. The net earnings of a corporation whose !development plaan�h been approved by the Council shall be limited to 1 pan amount not to exceed eight percent (8%) per annum of the cost to ;such corporation of the redevelopment project including the cost of the t ;,land or the balance of such total cost of the project as reduced by M hmortization payments; provided that the net earnings derived from any !redevelopment project shall in no event exceed a sum equal to eight ercent (8%) per annum upon the entire cost thereof. Such net earnings hall be computed after deducting from gross earnings the following: !� d expenses of maintenance and{ (a) All reasonable costs an operation. p p iI �( (b) Amounts paid for taxes, assessing, insurance premiums, and (jother similar charges. II (c) 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 years from date of completion of the project. lI Section 37-27. Disposition of Surplus Earnings of Corporation. The �development plan may, upon approval of the Council, contain provisions ihat the surplus earnings provided under Section 37-26: I! (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 io offset any deficiency in such rate of return which may have occurred �n 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; provided that at the termination of the tax relief granted pursuant to Section 37-29, the ,Zrban 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 (1) , (2) , (3) , or (;(4) of this section. Section 37-28. Accounting Practices. Every corporation operating nder this chapter shall establish and maintain depreciation, obso- escence, and other reserves; also surplus and other accounts, including a reserve for the payment of taxes according to recognized standard accounting practices. i Section 37-29. Tax Relief for Redevelopment Corporations. (1) Full Exemption. The real property of a corporation acquired pursuant to this chapter shall not be subject to assessment or payment of general ad valorem taxes imposed by the City 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 prop- erty 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 iassessor of Cole County, for taxes due and payable thereon during the !calendar year preceding the calendar year during which the corporation acquired title to such real property. The amounts of such tax assess- ments shall not be increased by the City during such ten-year period so Illong as the real property is owned by an urban redevelopment corpora- tion and used in accordance with a development plan authorized by the Council. (2) Property Already Exempt. if any such real property was tax exempt immediately prior to ownership by any such corporation, the City I shall immediately request such county assessor to promptly assess such . 'land, exclusive of improvements, in accordance with the provisions of -12- , i i !i Section 353.110, Revised Statutes of Missouri. The amount of such assessed valuation so fixed by the county assessor shall not be i increased by the City during the ten-year period next following the date i upon which such corporation acquired ownership thereof, so long as such I Am real property is owned by an urban redevelopment corporation and used in accordance with the development plan authorized and approved by the Council, i (3) Partial Exemption. For the next ensuing period of up to fifteen 'i (15) years as set out in the development plan, City ad valorem taxes ,; upon such real property shall be measured by the assessed valuation thereof as determined by the City upon the basis of not to exceed fifty :I percent (50%) of the true value of such real property, including any i improvements thereon. Nor shall such valuations be increased over fifty i percent (50%) 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 prop- II erty is owned by an urban redevelopment corporation and used in ;J accordance with an authorized development plan. I (4) Full Assessment. After such periods established in the develop- Ii ment 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, 1,1and provisions of this ordinance, the approving ordinance, and any rule or regulation adopted pursuant to this chapter; provided that at any ! time after the completion of the redevelopment project as authorized by ! ordinance the urban redevelopment corporation may elect to pay to the City 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 1� urban redevelopment corporation free from the conditions, restrictions, I, and provisions of this chapter, the approving ordinance, and any rule ii or regulation adopted pursuant to this chapter. (5) Tax Agreements by Corporations. In the course of considering �; any development plan for approval, the commission and the City Council shall give particular recognition to any agreement, in writing, on behalf of the corporation presenting such plan that, notwithstanding the I;provisions of the Missouri Redevelopment Corporations Law, it will make 11 payments in lieu of real property taxes to the appropriate taxing bodies. (6) Disposal of Property. 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 fore- closure 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 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 a1 plan, the Council may grant the partial tax relief provided in this ! section. if such real property shall be used for a purpose different �j 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, restictions, or provisions of this chapter. �f i -13- I ii i I !l Section 37-30. Commission to Check Compliance, Make Reports, Adopt Rules anc —Regulations. II I (1) Investigation. It shall be the duty of the Commission, after a ii final development- tpplan has been approved by the City Council, to + AUhk vp investigate and determine from time to time during construction of the i development project whether the corporation undertaking such development 1 plan is fully complying with the provisions thereof in the manner and at the times fixed therein for the performance of the various stages thereof (2) Reports. It shall also be the duty of the Commission to make reports from time to time during the construction of the redevelopment {project, and at least every six (6) months to the City Council regarding 1i each redevelopment project and the performance or compliance with each ,, development plan, and also as to compliance with the provisions of this ordinance by any corporation operating thereunder. (3) Time Extension. 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. (4) Recommendation of Certification. When a corporation operating under an approved development plan shall have completed the redevelop- ment 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 Commission, upon the written request of such corporation, shall conduct an investigation. If the Commission determines that the project has been so completed, it shall recommend to the City Council that a certificate of full compliance be issued to such corpora- tion. The City Council may authorize the Commission to issue a certif- icate of compliance. The investigations and reports of the Commission required by subsections (1) and (2) of this Section shall not be required or made j 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 37-29, three 1(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 37-26, 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 Commission the said financial report, accompanied by his opinion, as to compliance by the corporation with Section 37-26. 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 $100 and shall be specified in the contract between the City and the Corporation. Section 37-31. Remedies for Failure to Follow Plan. (1) Proceedings. Whenever any person or corporation operating under an approved development plan does not substantially comply with 1 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 chapter, 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 Director of Planning and Code Enforcement to the City Administrator, who may recommend that the 0 —14— �I 1 I) City Counselor commence a proceeding in the circuit court in the name of ,the City to have such action, failure, omission, threatened action, or i 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 Director of Planning and Code Enforcement shall determine that a 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. (2) Revocation of Plan Approval. Whenever any person or corpora- tion 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 Ii stated, reasonable delays caused by unforseen circumstances beyond 11their control alone excepted, or shall do, permit to be done anything contrary to this chapter, or fail or omit to have done, then any such fact may be certified by the Director of Planning and Code Enforcement to the commission, which may hold a hearing to determine whether it should recommend revocation of the approval of the final plan. The commission shall. then send its recommendation to the City Council which may then hold a hearing to determine whether its 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 valorem taxes based on the true full value of such real property, and the commission and City Council shall be able to consider new plans for that property. Section 37-32. Power of City to Acquire, Clear, Develop, Sell Sites. J The City may: 1 (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, construct, and recon- . struct street, utilities and any and all other City improvements neces- sary for the preparation of such area for use in accordance with the provisions of this chapter; and (3) Sell such real property for use in accordance with the provisions of this chapter. Section 37-33. Grants, Loans from United States and State of Missouri Government. The City or any person or corporation may accept grants or loans of money from the government of the United States or the State of Missouri or any departments or agencies thereof to effectuate the purposes of this chapter. SECTION 2. Effective Date. This ordinance shall take effect and be in force and effect from and after the date of its passage and approval. SECTION 3. Savings Clause. If any section, subsection, sentence, clause, p— i�rase, cr portion of this ordinance is for any reason held invalid or unconstitutional by any court of competent jurisdiction, such • -15- portion shall be deemed a separate, distinct, and independent provision, and such holtdng shall not affect the validity of the remaining portion thereof. Passed / Approved resi ent o t e oun a or Attest C�n City Cler r -16-