99.820. Municipalities' powers and duties--commission appointment and powers--public disclosure requirements--officials' conflict of interest, prohibited.

Municipalities' powers and duties--commission appointment andpowers--public disclosure requirements--officials' conflict ofinterest, prohibited.

99.820. 1. A municipality may:

(1) By ordinance introduced in the governing body of the municipalitywithin fourteen to ninety days from the completion of the hearing requiredin section 99.825, approve redevelopment plans and redevelopment projects,and designate redevelopment project areas pursuant to the notice andhearing requirements of sections 99.800 to 99.865. No redevelopmentproject shall be approved unless a redevelopment plan has been approved anda redevelopment area has been designated prior to or concurrently with theapproval of such redevelopment project and the area selected for theredevelopment project shall include only those parcels of real property andimprovements thereon directly and substantially benefited by the proposedredevelopment project improvements;

(2) Make and enter into all contracts necessary or incidental to theimplementation and furtherance of its redevelopment plan or project;

(3) Pursuant to a redevelopment plan, subject to any constitutionallimitations, acquire by purchase, donation, lease or, as part of aredevelopment project, eminent domain, own, convey, lease, mortgage, ordispose of land and other property, real or personal, or rights orinterests therein, and grant or acquire licenses, easements and optionswith respect thereto, all in the manner and at such price the municipalityor the commission determines is reasonably necessary to achieve theobjectives of the redevelopment plan. No conveyance, lease, mortgage,disposition of land or other property, acquired by the municipality, oragreement relating to the development of the property shall be made exceptupon the adoption of an ordinance by the governing body of themunicipality. Each municipality or its commission shall establish writtenprocedures relating to bids and proposals for implementation of theredevelopment projects. Furthermore, no conveyance, lease, mortgage, orother disposition of land or agreement relating to the development ofproperty shall be made without making public disclosure of the terms of thedisposition and all bids and proposals made in response to themunicipality's request. Such procedures for obtaining such bids andproposals shall provide reasonable opportunity for any person to submitalternative proposals or bids;

(4) Within a redevelopment area, clear any area by demolition orremoval of existing buildings and structures;

(5) Within a redevelopment area, renovate, rehabilitate, or constructany structure or building;

(6) Install, repair, construct, reconstruct, or relocate streets,utilities, and site improvements essential to the preparation of theredevelopment area for use in accordance with a redevelopment plan;

(7) Within a redevelopment area, fix, charge, and collect fees,rents, and other charges for the use of any building or property owned orleased by it or any part thereof, or facility therein;

(8) Accept grants, guarantees, and donations of property, labor, orother things of value from a public or private source for use within aredevelopment area;

(9) Acquire and construct public facilities within a redevelopmentarea;

(10) Incur redevelopment costs and issue obligations;

(11) Make payment in lieu of taxes, or a portion thereof, to taxingdistricts;

(12) Disburse surplus funds from the special allocation fund totaxing districts as follows:

(a) Such surplus payments in lieu of taxes shall be distributed totaxing districts within the redevelopment area which impose ad valoremtaxes on a basis that is proportional to the current collections of revenuewhich each taxing district receives from real property in the redevelopmentarea;

(b) Surplus economic activity taxes shall be distributed to taxingdistricts in the redevelopment area which impose economic activity taxes,on a basis that is proportional to the amount of such economic activitytaxes the taxing district would have received from the redevelopment areahad tax increment financing not been adopted;

(c) Surplus revenues, other than payments in lieu of taxes andeconomic activity taxes, deposited in the special allocation fund, shall bedistributed on a basis that is proportional to the total receipt of suchother revenues in such account in the year prior to disbursement;

(13) If any member of the governing body of the municipality, amember of a commission established pursuant to subsection 2 or 3 of thissection, or an employee or consultant of the municipality, involved in theplanning and preparation of a redevelopment plan, or redevelopment projectfor a redevelopment area or proposed redevelopment area, owns or controlsan interest, direct or indirect, in any property included in anyredevelopment area, or proposed redevelopment area, which property isdesignated to be acquired or improved pursuant to a redevelopment project,he or she shall disclose the same in writing to the clerk of themunicipality, and shall also so disclose the dates, terms, and conditionsof any disposition of any such interest, which disclosures shall beacknowledged by the governing body of the municipality and entered upon theminutes books of the governing body of the municipality. If an individualholds such an interest, then that individual shall refrain from any furtherofficial involvement in regard to such redevelopment plan, redevelopmentproject or redevelopment area, from voting on any matter pertaining to suchredevelopment plan, redevelopment project or redevelopment area, orcommunicating with other members concerning any matter pertaining to thatredevelopment plan, redevelopment project or redevelopment area.Furthermore, no such member or employee shall acquire any interest, director indirect, in any property in a redevelopment area or proposedredevelopment area after either (a) such individual obtains knowledge ofsuch plan or project, or (b) first public notice of such plan, project orarea pursuant to section 99.830, whichever first occurs;

(14) Charge as a redevelopment cost the reasonable costs incurred byits clerk or other official in administering the redevelopment project.The charge for the clerk's or other official's costs shall be determined bythe municipality based on a recommendation from the commission, createdpursuant to this section.

2. Prior to adoption of an ordinance approving the designation of aredevelopment area or approving a redevelopment plan or redevelopmentproject, the municipality shall create a commission of nine persons if themunicipality is a county or a city not within a county and not a firstclass county with a charter form of government with a population in excessof nine hundred thousand, and eleven persons if the municipality is not acounty and not in a first class county with a charter form of governmenthaving a population of more than nine hundred thousand, and twelve personsif the municipality is located in or is a first class county with a charterform of government having a population of more than nine hundred thousand,to be appointed as follows:

(1) In all municipalities two members shall be appointed by theschool boards whose districts are included within the redevelopment plan orredevelopment area. Such members shall be appointed in any manner agreedupon by the affected districts;

(2) In all municipalities one member shall be appointed, in anymanner agreed upon by the affected districts, to represent all otherdistricts levying ad valorem taxes within the area selected for aredevelopment project or the redevelopment area, excluding representativesof the governing body of the municipality;

(3) In all municipalities six members shall be appointed by the chiefelected officer of the municipality, with the consent of the majority ofthe governing body of the municipality;

(4) In all municipalities which are not counties and not in a firstclass county with a charter form of government having a population inexcess of nine hundred thousand, two members shall be appointed by thecounty of such municipality in the same manner as members are appointed insubdivision (3) of this subsection;

(5) In a municipality which is a county with a charter form ofgovernment having a population in excess of nine hundred thousand, threemembers shall be appointed by the cities in the county which have taxincrement financing districts in a manner in which the cities shall agree;

(6) In a municipality which is located in the first class county witha charter form of government having a population in excess of nine hundredthousand, three members shall be appointed by the county of suchmunicipality in the same manner as members are appointed in subdivision (3)of this subsection;

(7) At the option of the members appointed by the municipality, themembers who are appointed by the school boards and other taxing districtsmay serve on the commission for a term to coincide with the length of timea redevelopment project, redevelopment plan or designation of aredevelopment area is considered for approval by the commission, or for adefinite term pursuant to this subdivision. If the members representingschool districts and other taxing districts are appointed for a termcoinciding with the length of time a redevelopment project, plan or area isapproved, such term shall terminate upon final approval of the project,plan or designation of the area by the governing body of the municipality.Thereafter the commission shall consist of the six members appointed by themunicipality, except that members representing school boards and othertaxing districts shall be appointed as provided in this section prior toany amendments to any redevelopment plans, redevelopment projects ordesignation of a redevelopment area. If any school district or othertaxing jurisdiction fails to appoint members of the commission withinthirty days of receipt of written notice of a proposed redevelopment plan,redevelopment project or designation of a redevelopment area, the remainingmembers may proceed to exercise the power of the commission. Of themembers first appointed by the municipality, two shall be designated toserve for terms of two years, two shall be designated to serve for a termof three years and two shall be designated to serve for a term of fouryears from the date of such initial appointments. Thereafter, the membersappointed by the municipality shall serve for a term of four years, exceptthat all vacancies shall be filled for unexpired terms in the same manneras were the original appointments. Members appointed by the countyexecutive or presiding commissioner prior to August 28, 2008, shallcontinue their service on the commission established in subsection 3 ofthis section without further appointment unless the county executive orpresiding commissioner appoints a new member or members.

3. Beginning August 28, 2008:

(1) In lieu of a commission created under subsection 2 of thissection, any city, town, or village in a county with a charter form ofgovernment and with more than one million inhabitants, in a county with acharter form of government and with more than two hundred fifty thousandbut fewer than three hundred fifty thousand inhabitants, or in a county ofthe first classification with more than one hundred eighty-five thousandbut fewer than two hundred thousand inhabitants shall, prior to adoption ofan ordinance approving the designation of a redevelopment area or approvinga redevelopment plan or redevelopment project, create a commissionconsisting of twelve persons to be appointed as follows:

(a) Six members appointed either by the county executive or presidingcommissioner; notwithstanding any provision of law to the contrary, noapproval by the county's governing body shall be required;

(b) Three members appointed by the cities, towns, or villages in thecounty which have tax increment financing districts in a manner in whichthe chief elected officials of such cities, towns, or villages agree;

(c) Two members appointed by the school boards whose districts areincluded in the county in a manner in which the school boards agree; and

(d) One member to represent all other districts levying ad valoremtaxes in the proposed redevelopment area in a manner in which all suchdistricts agree.

No city, town, or village subject to this subsection shall create ormaintain a commission under subsection 2 of this section, except asnecessary to complete a public hearing for which notice under section99.830 has been provided prior to August 28, 2008, and to vote or makerecommendations relating to redevelopment plans, redevelopment projects, ordesignation of redevelopment areas, or amendments thereto that were thesubject of such public hearing;

(2) Members appointed to the commission created under thissubsection, except those six members appointed by either the countyexecutive or presiding commissioner, shall serve on the commission for aterm to coincide with the length of time a redevelopment project,redevelopment plan, or designation of a redevelopment area is consideredfor approval by the commission. The six members appointed by either thecounty executive or the presiding commissioner shall serve on all suchcommissions until replaced. The city, town, or village that creates acommission under this subsection shall send notice thereof by certifiedmail to the county executive or presiding commissioner, to the schooldistricts whose boundaries include any portion of the proposedredevelopment area, and to the other taxing districts whose boundariesinclude any portion of the proposed redevelopment area. The city, town, orvillage that creates the commission shall also be solely responsible fornotifying all other cities, towns, and villages in the county that have taxincrement financing districts and shall exercise all administrativefunctions of the commission. The school districts receiving notice fromthe city, town, or village shall be solely responsible for notifying theother school districts within the county of the formation of thecommission. If the county, school board, or other taxing district fails toappoint members to the commission within thirty days after the city, town,or village sends the written notice, as provided herein, that it hasconvened such a commission or within thirty days of the expiration of anysuch member's term, the remaining duly appointed members of the commissionmay exercise the full powers of the commission.

4. (1) Any commission created under this section, subject toapproval of the governing body of the municipality, may exercise the powersenumerated in sections 99.800 to 99.865, except final approval of plans,projects and designation of redevelopment areas. The commission shall holdpublic hearings and provide notice pursuant to sections 99.825 and 99.830.

(2) Any commission created under subsection 2 of this section shallvote on all proposed redevelopment plans, redevelopment projects anddesignations of redevelopment areas, and amendments thereto, within thirtydays following completion of the hearing on any such plan, project ordesignation and shall make recommendations to the governing body withinninety days of the hearing referred to in section 99.825 concerning theadoption of or amendment to redevelopment plans and redevelopment projectsand the designation of redevelopment areas. The requirements of subsection2 of this section and this subsection shall not apply to redevelopmentprojects upon which the required hearings have been duly held prior toAugust 31, 1991.

(3) Any commission created under subsection 3 of this section shall,within fifteen days of the receipt of a redevelopment plan meeting theminimum requirements of section 99.810, as determined by counsel to thecity, town, or village creating the commission and a request by theapplicable city, town, or village for a public hearing, fix a time andplace for the public hearing referred to in section 99.825. The publichearing shall be held no later than seventy-five days from the commission'sreceipt of such redevelopment plan and request for public hearing. Thecommission shall vote and make recommendations to the governing body of thecity, town, or village requesting the public hearing on all proposedredevelopment plans, redevelopment projects, and designations ofredevelopment areas, and amendments thereto within thirty days followingthe completion of the public hearing. If the commission fails to votewithin thirty days following the completion of the public hearing referredto in section 99.825 concerning the proposed redevelopment plan,redevelopment project, or designation of redevelopment area, or amendmentsthereto, such plan, project, designation, or amendment thereto shall bedeemed rejected by the commission.

(L. 1982 H.B. 1411 & 1587 § 3 subsec. 3, A.L. 1991 H.B. 502, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 S.B. 707 & 484, A.L. 2003 S.B. 11, A.L. 2007 H.B. 741, A.L. 2007 1st Ex. Sess H.B. 1, A.L. 2008 H.B. 2058 merged with S.B. 718)

(2000) Proposed city charter amendment requiring two-thirds voter approval on every tax increment financing measure violated section and thus was unconstitutional pursuant to article VI, section 19(a). State ex rel. Hazelwood Yellow Ribbon Committee v. Klos, 35 S.W.3d 457 (Mo.App.E.D.).