HB 488 -- Missouri Downtown Economic Stimulus Authority

Co-Sponsors:  Lowe, Campbell, McKenna, Wagner, Corcoran, Bland,
George

This bill prohibits any redevelopment projects from receiving
moneys from the Supplemental Tax Increment Financing Fund unless
the project was approved by the Director of the Department of
Economic Development and the Commissioner of the Office of
Administration and new state revenues are appropriated for the
project prior to August 28, 2003.

Relating to the Missouri Downtown Economic Stimulus Act, the
bill:

(1)  Allows each municipality to create by ordinance a Downtown
Economic Stimulus Authority which will constitute a public body
corporate and politic;

(2)  Restricts the authority from funding the construction,
maintenance, or operation of any sports stadium or related
facility;

(3)  Requires each authority to be governed by a board of
commissioners with five to 13 members.  The commissioners will be
appointed by the mayor or chief executive officer of the
municipality and will serve three-year terms.  The bill explains
the membership of the board;

(4)  States the powers of the board and of the authority;

(5)  Requires each municipality to establish a minority business
plan to ensure that minority-owned businesses are provided good
faith opportunities to participate in the procurement of goods
and services within the development project areas;

(6)  Outlines methods by which real property can be disposed of;

(7)  Outlines the requirements for reviewing and accepting
developer proposals;

(8)  Outlines the requirements of a development plan and the
process by which it must be reviewed and adopted by the
municipality.  Among other things, the bill requires that the
development plan include a cost-benefit analysis showing the
economic impact of the development plan on the municipality and
the school districts that are at least partially within the
boundaries of the development area.  Also, the bill prohibits the
development plan from including the initial development or
redevelopment of any gambling establishment;

(9)  Requires that Kansas City, St. Louis City, and St. Louis
County work with local community development corporations during
the designation of the development area, development projects,
and development project areas.  The bill further requires that a
goal of 5% of the funds generated be spent on projects associated
with community development corporations;

(10)  Allows the municipality or the authority to issue bonds to
finance development project costs.  The bill prohibits the state
from issuing bonds to finance development project costs;

(11)  Prohibits state supplemental downtown development financing
from being used to pay off existing debt or refinance existing
obligations without approval from the Director of the Department
of Economic Development and the Commissioner of the Office of
Administration;

(12)  Explains the manner in which ad valorem taxes and payments
in lieu of taxes will be divided among the affected taxing
districts;

(13)  Allows the municipality to submit an application to the
Department of Economic Development for approval of the use of
other net new revenues to fund one or more development projects
through state supplemental downtown development financing.  The
application must include, among other things, a cost-benefit
analysis of the impact on the state, specifically the impact the
development plan will have on the state school aid formula;

(14)  Prohibits the amount of state supplemental downtown
development financing for an approved project from exceeding the
projected benefit the state will receive from the project;

(15)  Allows the Department of Economic Development to charge a
reasonable fee to recover the costs of personnel and other
expenses associated with processing applications for state
supplemental downtown development financing.  This fee can
include costs incurred by the departments of Revenue and Economic
Development and the Office of Administration;

(16)  Considers the portion of salaries and expenses allocated by
the departments of Economic Development and Revenue to each
development project approved for state supplemental downtown
development financing to be eligible project costs and requires
these amounts to be deposited in the State Supplemental Downtown
Development Fund;

(17)  Prohibits a development project approved for state
supplemental downtown development financing from receiving tax
increment financing as well;

(18)  Creates the State Supplemental Downtown Development Fund
which will be administered by the Department of Economic
Development;

(19)  Allows the General Assembly to initially appropriate up to
$3 million into the fund;

(20)  Requires the Department of Economic Development to annually
disburse financing from the fund in amounts determined by the
certificates of approval for projects.  If the revenues in the
fund are not sufficient to equal the amounts indicated on
certificates of approval, the department will disburse revenues
on a pro rata basis to all approved projects;

(21)  Prohibits municipalities from obligating other net new
revenues prior to receiving a certificate of approval;

(22)  Requires a joint committee of the General Assembly to
review the act every five years, beginning in 2008.  A report
must be issued to the Speaker of the House of Representatives and
the President Pro Tem of the Senate no later than February 1
following the year in which the review was conducted;

(23)  Prohibits development projects from receiving state
supplemental downtown development financing unless the project
was approved by the Director of the Department of Economic
Development and the Commissioner of the Office of Administration
prior to January 1, 2010; and

(24)  Requires the municipality to submit an annual report
concerning the status of the development plan to the Director of
the Department of Economic Development.

Relating to the Community Development Corporation Revolving Fund,
the bill:

(1)  Requires Kansas City, St. Louis City, and St. Louis County
to establish a community development corporation revolving fund
for the purpose of providing funds to community development
corporations to stimulate economic development, housing, and
other public benefits leading to the development of economically
sustainable neighborhoods;

(2)  Requires that the fund be administered by a board with 13
members appointed by the mayor or chief executive officer of the
municipality.  One appointee must be a member of the local
regional community development association and one must be an
owner of a minority business;

(3)  Allows the General Assembly to appropriate up to 5% of the
state sales tax increment portion of other net new revenues
generated by development projects certified for state
supplemental downtown development financing, but not being used
for that purpose, to be deposited into the State Supplemental
Downtown Development Fund for the purpose of providing grants to
Kansas City, St. Louis City, and St. Louis County for community
development corporation revolving fund programs; and

(4)  Prohibits the sum of the grants from exceeding $1.5 million
annually.

Missouri House of Representatives
Last Updated July 25, 2003 at 10:12 am