SB 0079 Revises criteria used to evaluate redevelopment projects funded by tax increment financing in certain areas
LR Number:0129S.01I Fiscal Note:0129-01
Committee:Local Government and Economic Development
Last Action:01/23/01 - Hearing Conducted S Local Government and Economic Journal page:
Development Committee
Effective Date:July 1, 2002
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Current Bill Summary

SB 79 - This act modifies requirements for redevelopment projects in St. Louis City, St. Louis County, St. Charles County, Jefferson County, Warren County and Franklin County funded through tax increment financing. In order to be eligible for a redevelopment project an area must meet existing requirements and have low fiscal capacity, high unemployment or be characterized by poverty and any one of a series of indices of economic decline.

No more than 50 percent of the costs of a project may be expended for retail development unless the area is a distressed community or a federal enterprise or empowerment zone, or at least 50% of the residents are living in poverty.

Developers must submit their plans to the government body and the Department of Economic Development. The Department will conduct a cost-benefit analysis based upon criteria set out in the act. The analysis must be complete in 90 days and the Department may charge a fee for conducting the analysis in an amount that does not exceed the cost.

No more than 30 percent of project costs may be derived from public funds but under the following circumstances 50 percent of the cost may be derived from public funds:

- The area meets two of three criteria (low fiscal capacity, high unemployment or poverty); or

- At least 20 percent of the cost is allocated to affordable housing.

Developers and municipalities are required to report to the Department of Economic Development each year and the Department will issue an annual report examining the impact of each project, using the criteria initially used to evaluate the project.

Any affected person may file an action to challenge a decision relating to tax increment financing within 60 days of the decision.

Ambulance and fire districts shall be entitled to reimbursement of funds lost due to TIF projects for direct costs only in an amount not less than 25 percent of the revenue loss.

This act has an effective date of July 1, 2002. The act is similar to SCS/SB 802 (2000).