2000 Legislation
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SENATE BILL NO. 1505, As Amended – Urban renewal area, counties

SENATE BILL NO. 1505, As Amended

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Daily Data Tracking History



S1505aa...................................................by TRANSPORTATION
URBAN RENEWAL - Amends existing law to include counties as authorized
municipalities for purposes of creating an urban renewal area or
competitively disadvantaged border community area; to provide that a
revenue allocation provision included in an urban renewal plan or
competitively disadvantaged border community area ordinance shall not
extend for more than twenty-four years; and to provide for extensions in
certain circumstances.
                                                                        
02/21    Senate intro - 1st rdg - to printing
02/22    Rpt prt - to Loc Gov
03/02    Rpt out - to 14th Ord
03/03    Rpt out amen - to engros
03/06    Rpt engros - 1st rdg - to 2nd rdg as amen
03/07    2nd rdg - to 3rd rdg as amen
03/14    3rd rdg as amen - PASSED - 30-0-5
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Danielson, Davis, Deide, Dunklin, Frasure, Hawkins, Ingram, Ipsen,
      Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson,
      Riggs, Risch, Schroeder, Sorensen, Stegner, Stennett, Thorne,
      Whitworth, Williams
      NAYS--None
      Absent and excused--Crow, Darrington, Geddes, Sandy, Wheeler
    Floor Sponsor - Frasure
    Title apvd - to House
03/15    House intro - 1st rdg as amen - to Rev/Tax
03/24    Rpt out - rec d/p - to 2nd rdg as amen
03/27    2nd rdg - to 3rd rdg as amen
04/03    3rd rdg as amen - PASSED - 58-2-10
      AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Black, Boe,
      Bruneel, Campbell, Chase, Cuddy, Deal, Denney, Ellsworth, Field(13),
      Field(20), Gagner, Hadley, Hammond, Hansen(23), Hansen(29), Henbest,
      Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake,
      Linford, Loertscher(Loertscher), Mader, Marley, McKague, Meyer,
      Montgomery, Mortensen, Moyle, Pearce, Pischner, Pomeroy, Reynolds,
      Ridinger, Ringo, Robison, Sali, Sellman, Shepherd, Smylie, Stevenson,
      Stoicheff, Stone, Taylor, Tilman, Trail, Wood, Zimmermann
      NAYS -- Bieter, Callister
      Absent and excused -- Cheirrett, Clark, Crow, Geddes, Gould, Moss,
      Schaefer, Smith, Wheeler, Mr Speaker
    Floor Sponsor - Kempton
    Title apvd - to Senate
04/04    To enrol - rpt enrol - Pres signed
04/05    Sp signed
04/06    To Governor
04/14    Governor signed
         Session Law Chapter 275
         Effective: 07/01/00

Bill Text


 S1505
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                              SENATE BILL NO. 1505, As Amended
                                                                        
                                BY TRANSPORTATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO URBAN RENEWAL AGENCIES; AMENDING SECTION 50-2903, IDAHO  CODE,  TO
  3        REDEFINE  "AUTHORIZED  MUNICIPALITY"  TO  INCLUDE  A  COUNTY,  TO REDEFINE
  4        "COMPETITIVELY DISADVANTAGED BORDER COMMUNITY AREA" TO INCLUDE LAND SOLELY
  5        WITHIN A COUNTY,  TO REDEFINE "CLERK" TO INCLUDE A COUNTY CLERK, TO  REDE-
  6        FINE "LOCAL GOVERNING BODY" TO INCLUDE A BOARD OF COUNTY COMMISSIONERS AND
  7        TO  MAKE  A TECHNICAL CORRECTION; AMENDING SECTION 50-2904, IDAHO CODE, TO
  8        PROVIDE THAT NO REVENUE ALLOCATION PROVISION OF AN ORDINANCE  ESTABLISHING
  9        AN URBAN RENEWAL PLAN OR COMPETITIVELY DISADVANTAGED BORDER COMMUNITY AREA
 10        SHALL  HAVE A DURATION EXCEEDING TWENTY-FOUR YEARS FROM THE DATE THE ORDI-
 11        NANCE IS APPROVED BY THE MUNICIPALITY AND TO PROVIDE FOR EXTENSION OF  THE
 12        DURATION  IN  CERTAIN  CIRCUMSTANCES;  AND AMENDING SECTION 50-2906, IDAHO
 13        CODE, TO PROVIDE THAT SUCH NOTICE SHALL INCLUDE A  PROPOSAL  TO  CREATE  A
 14        COMPETITIVELY DISADVANTAGED COMMUNITY AREA.
                                                                        
 15    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 16        SECTION  1.  That  Section 50-2903, Idaho Code, be, and the same is hereby
 17    amended to read as follows:
                                                                        
 18        50-2903.  DEFINITIONS. The following terms used in this chapter shall have
 19    the following meanings, unless the context otherwise requires:
 20        (1)  "Act" or "this act" means this revenue allocation act.
 21        (2)  "Agency" or "urban renewal agency" means a public body created pursu-
 22    ant to section 50-2006, Idaho Code.
 23        (3)  "Authorized municipality"  or  "municipality"  means  any  county  or
 24    incorporated  city  which has established an urban renewal agency, or by ordi-
 25    nance has identified and created a competitively disadvantaged  border  commu-
 26    nity.
 27        (4)  "Base  assessment roll" means the equalized assessment rolls, for all
 28    classes of taxable property, on January 1 of the year in which the local  gov-
 29    erning body of an authorized municipality passes an ordinance adopting or mod-
 30    ifying  an urban renewal plan containing a revenue allocation financing provi-
 31    sion, except that the base assessment roll shall be adjusted as follows:   the
 32    equalized assessment valuation of the taxable property in a revenue allocation
 33    area  as shown upon the base assessment roll shall be reduced by the amount by
 34    which the equalized assessed valuation as shown on the  base  assessment  roll
 35    exceeds  the  current  equalized  assessed  valuation  of any taxable property
 36    located in the revenue allocation area, and by the equalized  assessed  valua-
 37    tion  of  taxable property in such revenue allocation area that becomes exempt
 38    from taxation subsequent to the date of the base assessment roll.  The  equal-
 39    ized  assessed  valuation of the taxable property in a revenue allocation area
 40    as shown on the base assessment roll  shall  be  increased  by  the  equalized
 41    assessed  valuation,  as  of the date of the base assessment  roll, of taxable
 42    property in such revenue allocation area that becomes taxable after  the  date
 43    of the base assessment roll.
                                                                        
                                           2
                                                                        
  1        (5)  "Clerk" means the city clerk of the municipality.
  2        (6)  "Competitively disadvantaged border community area" means a parcel of
  3    land  consisting  of  at  least  forty (40) acres which is situated within the
  4    boundaries jurisdiction of a county or an incorporated city and within twenty-
  5    five (25) miles of a state or international border, which the  governing  body
  6    of  such  county or incorporated city has determined by ordinance is disadvan-
  7    taged in its ability to attract business, private  investment,  or  commercial
  8    development,  as  a result of a competitive advantage in the adjacent state or
  9    nation resulting from inequities or disparities in  comparative  sales  taxes,
 10    income taxes, property taxes, population or unique geographic features.
 11        (7)  "Deteriorated area" means:
 12        (a)  Any  area,  including  slum area, in which there is a predominance of
 13        buildings or improvements, whether residential or nonresidential, which by
 14        reason of dilapidation, deterioration,  age  or  obsolescence,  inadequate
 15        provision  for  ventilation,  light, air, sanitation, or open spaces, high
 16        density of population and overcrowding, or  the  existence  of  conditions
 17        which  endanger life or property by fire and other causes, or any combina-
 18        tion of such factors, is conducive to ill health, transmission of disease,
 19        infant mortality, juvenile delinquency, or crime, and  is  detrimental  to
 20        the public health, safety, morals or welfare.
 21        (b)  Any  area  which by reason of the presence of a substantial number of
 22        deteriorated or deteriorating structures,  predominance  of  defective  or
 23        inadequate street layout, faulty lot layout in relation to size, adequacy,
 24        accessibility  or  usefulness, insanitary or unsafe conditions, deteriora-
 25        tion of site or other improvements, diversity of ownership, tax or special
 26        assessment delinquency exceeding the fair value of the land, defective  or
 27        unusual conditions of title, or the existence of conditions which endanger
 28        life or property by fire and other causes, or any combination of such fac-
 29        tors,  results  in  economic  underdevelopment  of the area, substantially
 30        impairs or arrests the sound growth of a municipality, retards the  provi-
 31        sion  of  housing accommodations or constitutes an economic or social lia-
 32        bility and is a menace to the public health, safety, morals or welfare  in
 33        its present condition and use.
 34        (c)  Any  area  which  is predominately open and which because of obsolete
 35        platting, diversity of ownership, deterioration of structures or  improve-
 36        ments,  or  otherwise, results in economic underdevelopment of the area or
 37        substantially impairs or arrests the sound growth of a  municipality.  The
 38        provisions of section 50-2008(d), Idaho Code, shall apply to open areas.
 39        (d)  Any area which the local governing body certifies is in need of rede-
 40        velopment  or rehabilitation as a result of a flood, storm, earthquake, or
 41        other natural disaster or catastrophe respecting which the governor of the
 42        state has certified the need for disaster  assistance  under  any  federal
 43        law.
 44        (e)  Any  area  which by reason of its proximity to the border of an adja-
 45        cent state is competitively disadvantaged in its ability to  attract  pri-
 46        vate  investment,  business  or commercial development which would promote
 47        the purposes of this chapter.
 48        (8)  "Facilities" means  land,  rights  in  land,  buildings,  structures,
 49    machinery,  landscaping,  extension  of utility services, approaches, roadways
 50    and parking, handling and  storage areas, and similar  auxiliary  and  related
 51    facilities.
 52        (9)  "Local governing body" means the city council or board of county com-
 53    missioners of a municipality.
 54        (10) "Plan" or "urban renewal plan" means a plan, as it exists or may from
 55    time  to  time  be amended, prepared and approved pursuant to section 50-2008,
                                                                        
                                           3
                                                                        
  1    Idaho Code, and any method or methods of financing such  plan,  which  methods
  2    may include revenue allocation financing provisions.
  3        (11) "Project"  or "urban renewal project" or "competitively disadvantaged
  4    border areas" may include undertakings and activities of a municipality in  an
  5    urban  renewal area for the elimination of deteriorated or deteriorating areas
  6    and for the prevention of the development or spread of slums and  blight,  and
  7    may  involve  slum  clearance  and  redevelopment in an urban renewal area, or
  8    rehabilitation or conservation in an urban renewal area, or any combination or
  9    part thereof in accordance with an urban renewal plan. Such  undertakings  and
 10    activities may include:
 11        (a)  Acquisition of a deteriorated area or a deteriorating area or portion
 12        thereof;
 13        (b)  Demolition and removal of buildings and improvement;
 14        (c)  Installation,  construction, or reconstruction of streets, utilities,
 15        parks, playgrounds, open  space,  off-street  parking  facilities,  public
 16        facilities,  public  recreation  and entertainment facilities or buildings
 17        and other improvements necessary for carrying out, in  the  urban  renewal
 18        area  or  competitively  disadvantaged  border  community  area, the urban
 19        renewal objectives of this act in accordance with the urban  renewal  plan
 20        or the competitively disadvantaged border community area ordinance.
 21        (d)  Disposition of any property acquired in the urban renewal area or the
 22        competitively disadvantaged border community area (including sale, initial
 23        leasing  or  retention  by the agency itself) or the municipality creating
 24        the competitively disadvantaged border community area at  its  fair  value
 25        for  uses in accordance with the urban renewal plan except for disposition
 26        of property to another public body;
 27        (e)  Carrying out plans for a program of voluntary  or  compulsory  repair
 28        and  rehabilitation  of buildings or other improvements in accordance with
 29        the urban renewal plan;
 30        (f)  Acquisition of real property in the urban renewal area or the compet-
 31        itively disadvantaged border community area which, under the urban renewal
 32        plan, is to be repaired or  rehabilitated  for  dwelling  use  or  related
 33        facilities,  repair  or rehabilitation of the structures for guidance pur-
 34        poses, and resale of the property;
 35        (g)  Acquisition of any other real property in the urban renewal  area  or
 36        competitively disadvantaged border community area where necessary to elim-
 37        inate unhealthful, insanitary or unsafe conditions, lessen density, elimi-
 38        nate  obsolete  or other uses detrimental to the public welfare, or other-
 39        wise to remove or to prevent the spread of blight or deterioration, or  to
 40        provide land for needed public facilities or where necessary to accomplish
 41        the purposes for which a competitively disadvantaged border community area
 42        was created by ordinance;
 43        (h)  Lending or investing federal funds; and
 44        (i)  Construction  of  foundations,  platforms  and  other like structural
 45        forms.
 46        (12) "Project costs" includes, but is not limited to:
 47        (a)  Capital costs, including the actual costs of the construction of pub-
 48        lic works or improvements, facilities, buildings, structures,  and  perma-
 49        nent  fixtures;  the  demolition, alteration, remodeling, repair or recon-
 50        struction of existing buildings, structures, and permanent  fixtures;  the
 51        acquisition of equipment; and the clearing and grading of land;
 52        (b)  Financing  costs, including interest during construction and capital-
 53        ized debt service or repair and replacement or other appropriate reserves;
 54        (c)  Real property assembly costs, meaning any deficit incurred  from  the
 55        sale or lease by a municipality of real or personal property within a rev-
                                                                        
                                           4
                                                                        
  1        enue allocation district;
  2        (d)  Professional service costs, including those costs incurred for archi-
  3        tectural, planning, engineering, and legal advice and services;
  4        (e)  Direct  administrative  costs,  including  reasonable charges for the
  5        time spent by municipal employees in connection with the implementation of
  6        a project plan;
  7        (f)  Relocation costs;
  8        (g)  Other costs incidental to any of the foregoing costs.
  9        (13) "Revenue allocation area" means that portion of an urban renewal area
 10    or competitively disadvantaged border community area  the  equalized  assessed
 11    valuation  (as  shown  by  the taxable property assessment rolls) of which the
 12    local governing body has determined, on and as a  part  of  an  urban  renewal
 13    plan,  is likely to increase as a result of the initiation of an urban renewal
 14    project or competitively disadvantaged border community area. The base assess-
 15    ment roll or rolls of revenue allocation area or areas shall not exceed at any
 16    time ten percent (10%) of the current assessed valuation of all taxable  prop-
 17    erty within the municipality.
 18        (14) "State" means the state of Idaho.
 19        (15) "Tax"  or  "taxes" means all ad valorem property tax levies upon tax-
 20    able property.
 21        (16) "Taxable property" means taxable real  property,  personal  property,
 22    operating  property,  or any other tangible or intangible property included on
 23    the equalized assessment rolls.
 24        (17) "Taxing district" means a  taxing  district  as  defined  in  section
 25    63-201, Idaho Code, as that section now exists or may hereafter be amended.
                                                                        
 26        SECTION  2.  That  Section 50-2904, Idaho Code, be, and the same is hereby
 27    amended to read as follows:
                                                                        
 28        50-2904.  AUTHORITY TO  CREATE  REVENUE  ALLOCATION  AREA.  An  authorized
 29    municipality is hereby authorized and empowered to adopt, at any time, a reve-
 30    nue  allocation  financing provision, as described in this chapter, as part of
 31    an urban renewal plan or competitively  disadvantaged  border  community  area
 32    ordinance.  A  revenue allocation financing provision may be adopted either at
 33    the time of the original adoption of an urban renewal plan or the creation  by
 34    ordinance of a competitively disadvantaged border community area or thereafter
 35    as  a modification of an urban renewal plan or the ordinance creating the com-
 36    petitively disadvantaged border community area. Urban renewal  plans  existing
 37    prior to the effective date of this section may be modified to include a reve-
 38    nue allocation financing provision. Except as provided below, no revenue allo-
 39    cation  provision of an urban renewal plan or competitively disadvantaged bor-
 40    der community area ordinance, including all amendments thereto, shall  have  a
 41    duration  exceeding  twenty-four  (24)  years  from  the date the ordinance is
 42    approved by the municipality.  The duration of the revenue allocation  financ-
 43    ing provision may be extended if:
 44        (1)  The maturity date of any bonds issued to provide funds for a specific
 45    project in the revenue allocation area and payable from the revenue allocation
 46    financing  provision  exceeds the duration of the revenue allocation financing
 47    provision, provided such bond maturity is not greater than thirty (30)  years;
 48    or
 49        (2)  The urban renewal agency determines that it is necessary to refinance
 50    outstanding bonds payable from the revenue allocation financing provision to a
 51    maturity  exceeding  the twenty-four (24) year duration of the revenue alloca-
 52    tion financing provision in order to avoid a default on the bonds; and
 53        (3)  During the extensions set forth in subsections (1) and  (2)  of  this
                                                                        
                                           5
                                                                        
  1    section,  any  revenue  allocation  revenues exceeding the amount necessary to
  2    repay the bonds during the period exceeding the twenty-four (24) year maturity
  3    of the revenue allocation financing provision shall be returned to the  taxing
  4    districts in the revenue allocation area on a pro rata basis.
                                                                        
  5        SECTION  3.  That  Section 50-2906, Idaho Code, be, and the same is hereby
  6    amended to read as follows:
                                                                        
  7        50-2906.  PUBLIC HEARING AND ORDINANCE REQUIRED. (1) To adopt a new  urban
  8    renewal  plan  or  create  a competitively disadvantaged border community area
  9    containing a revenue allocation financing provision, the local governing  body
 10    of an authorized municipality must enact an ordinance in accordance with chap-
 11    ter  9,  title  50,  Idaho Code, and section 50-2008, Idaho Code. To modify an
 12    existing urban renewal plan, to add or change a revenue allocation, an  autho-
 13    rized municipality must enact an ordinance in accordance with chapter 9, title
 14    50,  Idaho  Code,  and  conduct  a  public  hearing  as  provided  in  section
 15    50-2008(c),  Idaho  Code. No urban renewal project, plan, competitively disad-
 16    vantaged border community area or modification thereto shall be held  ineffec-
 17    tive for failure to comply with the requirements of this section if compliance
 18    with the section is substantial and in good faith.
 19        (2)  A  revenue  allocation financing provision adopted in accordance with
 20    this chapter shall be effective retroactively to January  1  of  the  year  in
 21    which  the  local  governing  body  of the authorized municipality enacts such
 22    ordinance.
 23        (3)  The local governing body of an authorized municipality shall  prepare
 24    a  notice  stating (a) that an urban renewal plan or modification thereto or a
 25    competitively disadvantaged border community area has  been  proposed  and  is
 26    being  considered  for adoption, and that such plan or modification thereto or
 27    proposal to create a competitively disadvantaged border  community  area  con-
 28    tains  a revenue allocation financing provision that will cause property taxes
 29    resulting from any increases in equalized assessed valuation in excess of  the
 30    equalized  assessed valuation as shown on the base assessment roll to be allo-
 31    cated to the agency for urban renewal and competitively  disadvantaged  border
 32    community area purposes; and (b) that a public hearing on such plan or modifi-
 33    cation  will  be  held  by  the  local  governing  body  pursuant  to  section
 34    50-2008(c),  Idaho Code. The notice shall also state the time, date, and place
 35    of the hearing.  At least thirty (30) days but not more than sixty  (60)  days
 36    prior  to the date set for final reading of the ordinance, the local governing
 37    body shall publish the notice in a newspaper of general circulation and trans-
 38    mit the notice, together with a copy of the plan  and  recommendation  of  the
 39    urban  renewal  agency or the municipality which by ordinance created the com-
 40    petitively disadvantaged border community area, to the governing body of  each
 41    taxing  district  which  levies taxes upon any taxable property in the revenue
 42    allocation area and which would be affected by the revenue allocation  financ-
 43    ing  provision  of the urban renewal plan proposed to be approved by the local
 44    governing body.

Amendment


 AS1505
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                                                     Moved by    Frasure             
                                                                        
                                                     Seconded by Ipsen               
                                                                        
                                                                        
                                       IN THE SENATE
                             SENATE AMENDMENTS TO S.B. NO. 1505
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 2 of the printed bill, in line 10, delete "boundaries" and insert:
  3    "boundaries jurisdiction".
                                                                        
  4                                AMENDMENT TO SECTION 3
  5        On page 5, delete lines 51 through 53; and  on  page  6,  delete  lines  1
  6    through 9.
                                                                        
  7                                 CORRECTION TO TITLE
  8        On  page 1, delete lines 13 through 20, and insert: "CODE, TO PROVIDE THAT
  9    SUCH NOTICE SHALL INCLUDE A PROPOSAL TO CREATE A  COMPETITIVELY  DISADVANTAGED
 10    COMMUNITY AREA.".

Statement of Purpose / Fiscal Impact


     
     
                 STATEMENT OF PURPOSE
                       RS10108 
     
     This legislation amends Urban Renewal to place limits on how long property
     values can be held of the county tax base. It also includes boards of County
     Commissioners in the decision making process. 
     
     
     
     
     
     
     
                     FISCAL NOTE 
     
     No impact on General Fund. Creates a positive impact on local property taxes by
     assuring a return to the tax base properties in urban renewal areas. 
     
     
     
     
     
     
     
               CONTACT:  Senator Evan Frasure
               Phone: 332-1315 
     
     
                                                                 STATEMENT OF PURPOSE/ FISCAL NOTE                           S1505