HB 863 Establishes the Downtown Revitalization Preservation Program for economic development

     Handler: Taylor

Current Bill Summary

- Prepared by Senate Research -


SCS/HCS/HB 863 - This act creates the "Downtown Revitalization Preservation Program".

A redevelopment plan will include a general description of the program undertaken to accomplish the redevelopment projects and related objectives.

A redevelopment plan may be adopted by a municipality in reliance on findings that a reasonable person would believe: 1) the redevelopment area is a blighted or conservation area and has not been subject to growth through investment by private enterprise, 2) the plan conforms to the comprehensive plan for the redevelopment of the municipality as a whole, 3) generally the estimated dates of completion have been stated, 4) a relocation plan is developed if a business or residence must be moved, and 5) the plan does not include the redevelopment of a gambling establishment.

Before adopting a redevelopment plan, a municipality must provide notice and hold a public hearing. The act provides the procedure that must be followed by a municipality prior to adoption, including when changes are allowed to be made, and how notification must be given. After adoption of an ordinance designating a redevelopment area, no ordinance can be adopted altering the exterior boundaries of the area affecting the general land uses established under the plan or project without a public hearing.

A municipality must submit an application to the Dept. Of Economic Development for review and determination as to approval of the disbursement of project costs from the Downtown Revitalization Preservation Fund, which is created in this act. The application must be forwarded and approved by the Commissioner of Administration. This act sets limits on disbursements from the fund and lays out requirements for the information which must be included in the application.

Redevelopment projects can only receive disbursements from the fund for 25 years. A municipality that receives money from the fund must place it in a separate account from other net new revenues within the special allocation fund.

A redevelopment project approved for financing cannot thereafter elect to receive tax increment financing under the Real Property Tax Increment Allocation Redevelopment Act and continue to receive the downtown revitalization financing.

SUSAN HENDERSON


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