HCS SB 856 -- PROPERTY DEVELOPMENT

SPONSOR:  Russell (Rizzo)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Commerce
and Economic Development by a vote of 12 to 0.

This substitute:

(1)  Changes the criteria an area must meet to qualify as an
enterprise zone by reducing the resident population from 4,000 to
3,000 for areas within metropolitan statistical areas;

(2)  Requires the Department of Economic Development to designate
an enterprise zone in Pulaski and Wright counties, the cities of
Richland and Carl Junction, the village of Bel-Ridge, and, in
2005, to designate zones in Caldwell, Clinton, and DeKalb
counties;

(3)  Allows any organization to petition to have property
declared abandoned and for temporary possession of the property
if the organization intends to rehabilitate the property.  The
organization will no longer be required to rehabilitate and use
the property as low- or moderate-income housing;

(4)  Allows an organization to petition for a sheriff's deed
conveying title to the abandoned property to the organization
when the rehabilitation is complete, rather than requiring that a
one-year period elapse after entry of the order granting
temporary possession of the property;

(5)  Requires the organization to file reports quarterly, rather
than annually, regarding the rehabilitation of the property;

(6)  Allows the owner of the property to petition the circuit
court for restoration of possession of the property.  Possession
will not be restored to the owner unless the court finds that the
owner has the capacity and the resources to complete the
rehabilitation.  If the rehabilitation has already been completed
by the organization, the court will determine appropriate
compensation for the organization; and

(7)  Allows the organization to file a petition for judicial deed
and an order may be entered granting a quitclaim judicial deed to
the organization if the owner does not regain possession of the
property in the one-year period following entry of an order
granting temporary possession of the property to the
organization.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0 in
FY 2003, $1,440,204 in FY 2004, and $1,440,204 in FY 2005.

PROPONENTS:  Supporters say that the bill will provide a much
needed boost to Wright County's economy, which has one of the
highest unemployment rates and lowest household incomes in the
state.  Establishing an enterprise zone is a tool the county can
leverage when creating jobs.  An enterprise zone would help
Wright County attract prospective businesses to the area.

Testifying for the bill were Senator Russell; Mountain Grove
Industrial Association, Inc.; and Wright County.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated October 11, 2002 at 9:04 am