SCS/SBs 1694 & 1688 - This act expands the "Missouri Downtown and Rural Economic Stimulus Act" by increasing allowable tax increments, extending project durations, and broadening eligibility and financing mechanisms for redevelopment projects. Current law defines terms used under the Missouri Downtown and Rural Economic Stimulus Act (MODESA), including development project, economic activity taxes, and related financing mechanisms used for redevelopment. This act modifies the definition of "economic activity taxes" to expand the types of revenues that may be captured, including certain additional local taxes, fees, and other revenue sources generated within a project area. The act also modifies and adds definitions relating to "expanded development projects", allowing for broader project structures and eligibility. Current law allows municipalities to establish a downtown economic stimulus authority to approve and oversee redevelopment projects within a defined downtown area. This act modifies the authority structure by allowing greater flexibility in how project areas are defined and administered, including permitting project areas to be noncontiguous and not limited strictly to traditional downtown boundaries. The act also revises procedures for project approval and oversight. Current law requires development plans to meet certain statutory requirements, including demonstrating eligibility, outlining project costs, and identifying anticipated revenues and financing structures. This act modifies development plan requirements by expanding eligibility criteria and allowing for expanded development projects. The act removes certain prior limitations and allows municipalities greater discretion in structuring redevelopment plans, including modifications and expansions of previously approved projects. Current law allows redevelopment projects to be financed through a combination of payments in lieu of taxes (PILOTs), economic activity taxes (EATs), and a portion of state tax increments, generally subject to statutory limitations. The act also allows 100% of payments in lieu of taxes, economic activity taxes, and the municipal residential earnings tax increment from the fund for contributions to a development project or expanded development project from any private nonprofit organization or local contributions from tax abatement. Additionally, the act authorizes the capture of a state construction income tax increment of up to 100% based on wages paid during the construction period. Current law provides that state tax increment financing is limited in scope and subject to various eligibility and structural requirements. This act modifies these provisions by expanding the categories of state tax revenues that may be captured and allowing projects to receive additional state incentives and tax credits concurrently, effectively permitting the stacking of incentives. The act also authorizes a residential income tax increment of up to 70% based on wages earned by individuals residing within the project area. Current law requires redevelopment projects to be reviewed and approved through a defined process, including submission to the Department of Economic Development. This act includes that the approval process by requiring the DED to approve or deny a complete project application within 60 days. The act also allows for greater flexibility in amending or modifying approved projects over time. Current law subjects redevelopment projects and associated financing mechanisms to statutory time limits. This act modifies the duration of redevelopment incentives by allowing projects to receive benefits for up to 30 years, including the repayment of project costs and obligations. Current law provides for various administrative and procedural provisions for governing the implementation of redevelopment projects under MODESA. This act modifies these provisions by allowing reimbursement of certain project costs incurred prior to formal approval, revising administrative procedures, and making conforming changes to reflect the expanded financing and incentive structure authorized under the act. (Sections 99.918 to 99.980) These provisions are identical to provisions in SCS/HCS/HBs 3231 & 2531 (2026) and are substantially similar to HCS/HB 3395 (2026). JOSH NORBERG