Butler City Zoning Code
ARTICLE VII
Urban Redevelopment
§ 26-300 Definitions.
[Ord. No. 771, § 1, 11-5-2002]
For the purpose of this article, the following words and phrases shall have the meanings ascribed to them:
That portion of the City which the City Council has found or shall find to be blighted so that the clearance, re-planning, rehabilitation or reconstruction thereof is necessary to effectuate the purposes of this ordinance. Any such area may include buildings or improvements not in themselves blighted, and any real property, whether improved or unimproved, the inclusion of which is deemed necessary for the effective clearance, re-planning, reconstruction or rehabilitation of the area of which such buildings, improvements or real property from a part.
That portion of the City within which the City Council determines that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, have become economic and social liabilities, and that such conditions are conductive to ill health, transmission of disease, crime or inability to pay reasonable taxes.
A plan, together with any amendments thereto, for the development of all or any part of a blighted area, which is authorized by the City Council.
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.
Includes lands, building, improvements, land under water, waterfront property, and any and all easements, franchises and hereditaments, corporeal or incorporeal, and every estate, interest, privilege, easement, franchise and rights therein, or appurtenant thereto, legal or equitable, including restrictions of record, created by plat, covenant, or otherwise, rights-of-way, and terms for years.
The clearance, re-planning, reconstruction or rehabilitation of any blighted area, the provision for such industrial, commercial, residential or public structures and spaces as may be appropriate, including recreational and other facilities incidental or appurtenant thereto.
A specific work or improvement to effectuate all or any part of a development plan.
A corporation organized pursuant to RSMo ch. 353 and this article of the City Code; except that any life insurance company organized pursuant to the laws of, or admitted to do business in, the State of Missouri may from time to time within five years after April 23, 1946, undertake, alone or in conjunction with, or as a lease of any such life insurance company or urban redevelopment corporation, a redevelopment project pursuant to RSMo ch. 353 and this article of the City Code, and shall, in its operations with respect to any such redevelopment project, but not otherwise, be deemed to be an urban redevelopment corporation for the purposes of this article.
§ 26-301 Organization of corporation; contents of articles of agreement.
[Ord. No. 771, § 1, 11-5-2002]
(a)
Corporations referred to in this article urban redevelopment corporations may be organized in the following manner: The articles of agreement or association shall be prepared, subscribed and acknowledged, and filed in the office of the Secretary of State of Missouri pursuant to the general corporations laws of the state and shall contain:
(1)
The name of the proposed corporation, which must have the words "redevelopment corporation" as a part thereof.
(2)
The purposes for which it is formed shall be as follows: To acquire, construct, maintain and operate a redevelopment project or redevelopment projects in accordance with the provisions of this article and RSMo ch. 353.
(3)
The amount of the capital stock, and if any be preferred stock the preference thereof.
(4)
The number of shares of which the capital shall consist all of which shall have a par value.
(5)
The City in which its principal business office is to be located.
(6)
Its duration, which shall not exceed 99 years.
(7)
The number of directors, which shall not be less than three, nor more than 13.
(8)
The names and post office addresses of the directors for the first year, at least one of whom shall be a resident of the State of Missouri.
(9)
The names and post office addresses of the subscribers to the article of association or agreement.
(10)
A provision that in the event that income debenture certificates are issued by the corporation, the owners thereof shall have the same right to vote as they would if possessed of certificates of stock of the amount and par value of the income debenture certificates held by them. The articles may provide for the retirement of income, debenture certificates or preferred stock of the corporation as and when there shall be funds available in the treasury of the corporation from the receipt of amortization or sinking fund in installments for the purpose. Interest shall not be paid by the corporation upon such income debenture certificates in excess of 9% per annum. Provided, however, that this limitation shall not apply to other debt of the corporation.
(11)
A declaration that the corporation has been organized to serve a public purpose; that all real estate acquired by it and all structures erected by it are to be acquired for the purpose of promoting the public health, safety and welfare, and that the stockholders of the corporation shall, when they subscribe to and receive the stock thereof, agree that the net earnings of the corporation shall be limited to an amount not to exceed 8% per annum of the cost to such corporation of the redevelopment project including the cost of the land, or the balances of such cost as reduced by amortization payments; provided, that the net earnings derived from any redevelopment project shall in no event exceed a sum equal to 8% per annum upon the entire costs thereof. Such net earnings shall be computed after deducting from gross earnings the following:
a.
All costs and expenses of maintenance and operation;
b.
Amounts paid for taxes, assessments, insurance premiums and other similar charges;
c.
An annual amount sufficient to amortize the cost of the entire project at the end of the period, which shall not be more than 60 years from the date of completion of the project. The development plan may contain provisions satisfactory to the City Council authorizing such plan that any surplus earnings in excess of the rate of net earnings provided in this article or in RSMo Ch. 353 may be held by corporation as a reserve for maintenance of such rate of return in the future and may be used by the corporation of offset any deficiency in such rate of return which may have occurred in prior years; or may be used to accelerate the amortization payments; or for the enlargement of the project; or for reduction in rentals therein; provided, that any excess of such surplus earnings remaining at the termination of the tax relief granted shall be turned over by the corporation to the City.
(12)
A declaration that such corporations are organized for the purpose of the clearance, re-planning, reconstruction or rehabilitation of blighted areas, and the construction of such industrial, commercial, residential or public structures as may be appropriate, including provisions for recreations and other facilities incidental or appurtenant thereto.
§ 26-302 Urban redevelopment corporation may operate one or more development projects; powers, public hearing required; when.
[Ord. No. 771, § 1, 11-5-2002]
An urban redevelopment corporation shall operate under this article on one or more redevelopment projects pursuant to an authorized development plan, and with respect to each such project shall have such rights, powers, duties, immunities and obligations, not inconsistent with the provisions of this article and RSMo ch. 353; provided, however, that no such rights or powers, except those previously granted, shall be granted by any governing authority to any urban redevelopment corporation after August 13, 1982 unless the City Council shall hold a public hearing for the stimulation of comment by those to be affected by any such grant and shall determine thereafter that the area covered by the plan is blighted; provided, however, that notwithstanding the provisions of this article, such urban redevelopment corporation may, as a redeveloper under the provisions of the land clearance for redevelopment authority law, acquire property, by purchase or lease, from a land clearance for redevelopment authority as defined in the law, in the manner and under the terms and conditions specified in the law.
§ 26-303 Real property exempt from taxation - limitation.
[Ord. No. 771, § 1, 11-5-2002]
(a)
Once the requirements of this article have been complied with, the real property of urban redevelopment corporations acquired pursuant to this article shall not be subject to assessment or payment of general ad valorem taxes imposed by the City, the state, or any political subdivision thereof, for a period not in excess of 10 years after the date upon which such corporations become owners 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 the article and owned by such urban redevelopment corporation, as was determined by the assessor of Bates County, or, if not located within any county, then by the City, for taxes due and payable thereon during the calendar year preceding the calendar year during which the corporation acquired title to such real property.
(b)
In the event, however, that any such real property was tax exempt immediately prior to ownership by any urban redevelopment corporation, such assessor or assessors shall, upon acquisition of title thereto by the urban redevelopment corporation, promptly assess such land, exclusive of improvements, at such valuation as shall conform to but not exceed the assessed valuation made during the preceding calendar year of other land, exclusive of improvements, adjacent thereto or in the same general neighborhood, and the amount of such assessed valuation shall not be increased during the period set pursuant to Subsection (a) of this section so long as the real property is owned by an urban redevelopment corporation and used in accordance with a development plan authorized by the City Council. For the next ensuing period not in excess of 15 years, ad valorem taxes upon such real property shall be measured by the assessed valuation thereof as determined by such assessor or assessors upon the basis of not to exceed 50% of the true value of such real property, including any improvements thereon, nor shall such valuations be increased above 50% of the true value of such real property from year to year during such next ensuing period so long as the real property is owned by an urban redevelopment corporation and used in accordance with an authorized development plan. After a period totaling not more than 25 years, such real property shall be subject to assessment and payment of all and valorem taxes, based on the full true value of the real property; provided, that after the completion of the redevelopment project, as authorized whenever any urban redevelopment corporation shall elect to pay full taxes or at the expiration of the period, such real property shall be owned and operated free from any of the conditions, restrictions or provisions of this article and of any ordinance, rule or regulation adopted pursuant thereto, any other law limiting the right of domestic and foreign insurance companies to own and operate real estate to the contrary notwithstanding.
(c)
No tax abatement or exemption authorized by this section shall become effective unless and until the City Council:
(1)
Furnished each political subdivision whose boundaries for ad valorem taxation purposes include any portion of the real property to be affected by such tax abatement or exemption with a written statement of the impact on ad valorem taxes such tax abatement or exemption will have on such political subdivisions and written notice of the hearing to be held in accordance with Subsection (c)(2) below. The written statement and notice required by this subsection shall be furnished before the hearing and shall include, but need not be limited to, an estimate of the amount of ad valorem tax revenues of each political subdivision which will be affected by the proposed tax abatement or exemption, based on the estimated assessed valuation of the real property involved as such property would exist before and after it is redeveloped;
(2)
Conducts a public hearing regarding such tax abatement or exemption, at which hearing all political subdivisions described in Subsection (c)(1) of this section shall have the right to be heard on such grant of tax abatement or exemption;
(3)
Enacts an ordinance which provides for expiration of development rights, including the rights of eminent domain and tax abatement, in the event of failure of the urban redevelopment corporation to acquire ownership of property within the area of the development plan. Such ordinance shall provide for the duration of time within which such property must be acquired, and may allow for acquisition of property under the plan in phases;
(d)
Notwithstanding any other provision of law to the contrary, payments in lieu of taxes may be imposed by contract between the City and an urban redevelopment corporation which receives tax abatement or exemption on property pursuant to this section. Such payments shall be made to the collector of revenue of Bates County, Missouri by December 31 of each year payments are due. The City Council shall furnish the collector a copy of any such contract requiring payment in lieu of taxes. The collector shall allocate all revenues received from such payment in lieu of taxes among all taxing authorities whose property tax revenues are affected by the exemption or abatement on the same pro rata basis and in the same manner as the ad valorem property tax revenues received by each taxing authority from such property in the year such payments are due.
(e)
The provisions of Subsection (c) of this section shall not apply to any amendment or future amendment to a phased development plan approved the City Council prior to the effective date of the provisions of Subsection (c) of this section and upon which construction has been in progress pursuant to such phased plan.
§ 26-304 City may acquire, clear, convey or lease property for use in redevelopment project.
[Ord. No. 771, § 1, 11-5-2002]
(a)
The City shall have power:
(1)
To acquire by the exercise of the power of eminent domain, otherwise, an area designated on a master plan under the authority of the City Council as a redevelopment area;
(2)
To clear any such real property and install, construct and reconstruct streets, utilities and any and all other City improvements necessary for the preparation of such area for use in accordance with the provisions of this section.
(3)
To sell or lease such real property for use in accordance with the provisions of this section.