View Bill Status
View Bill Text
View Statement of Purpose / Fiscal Impact
H0048...............................................by REVENUE AND TAXATION
URBAN RENEWAL PLANS - Amends existing law to delete provisions for
modification of an urban renewal plan or project or a competitively
disadvantaged border community area; and to extend the time allowed for
contesting an ordinance or resolution adopting or approving an urban
renewal plan.
01/24 House intro - 1st rdg - to printing
01/25 Rpt prt - to Rev/Tax
]]]] LEGISLATURE OF THE STATE OF IDAHO ]]]]
Fifty-ninth Legislature First Regular Session - 2007
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 48
BY REVENUE AND TAXATION COMMITTEE
1 AN ACT
2 RELATING TO URBAN RENEWAL PLANS; AMENDING SECTIONS 50-2007 AND 50-2008, IDAHO
3 CODE, TO DELETE PROVISIONS FOR MODIFICATION OF AN URBAN RENEWAL PLAN OR
4 PROJECT AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 50-2018, IDAHO
5 CODE, TO DELETE PROVISIONS FOR MODIFICATION OF AN URBAN RENEWAL PLAN OR
6 PROJECT; AMENDING SECTION 50-2027, IDAHO CODE, TO DELETE PROVISIONS FOR
7 MODIFICATION OF AN URBAN RENEWAL PLAN OR PROJECT AND TO MAKE TECHNICAL
8 CORRECTIONS; AMENDING SECTION 50-2903, IDAHO CODE, TO DELETE PROVISIONS
9 FOR MODIFICATION OF AN URBAN RENEWAL PLAN OR PROJECT; AMENDING SECTION
10 50-2904, IDAHO CODE, TO DELETE PROVISIONS FOR MODIFICATION OF AN URBAN
11 RENEWAL PLAN OR COMPETITIVELY DISADVANTAGED BORDER COMMUNITY AREA AND TO
12 PROVIDE AN EFFECTIVE DATE; AMENDING SECTION 50-2906, IDAHO CODE, TO DELETE
13 PROVISIONS FOR MODIFICATION OF AN URBAN RENEWAL PLAN OR PROJECT OR COMPET-
14 ITIVELY DISADVANTAGED BORDER COMMUNITY AREA OR TO ADD OR CHANGE A REVENUE
15 ALLOCATION AREA; AND AMENDING SECTION 50-2911, IDAHO CODE, TO DELETE PRO-
16 VISIONS FOR MODIFICATION OF AN URBAN RENEWAL PLAN OR PROJECT AND TO EXTEND
17 THE TIME ALLOWED FOR CONTESTING AN ORDINANCE OR RESOLUTION ADOPTING OR
18 APPROVING AN URBAN RENEWAL PLAN.
19 Be It Enacted by the Legislature of the State of Idaho:
20 SECTION 1. That Section 50-2007, Idaho Code, be, and the same is hereby
21 amended to read as follows:
22 50-2007. POWERS. Every urban renewal agency shall have all the powers
23 necessary or convenient to carry out and effectuate the purposes and provi-
24 sions of this act, including the following powers in addition to others herein
25 granted:
26 (a) to undertake and carry out urban renewal projects and related activi-
27 ties within its area of operation; and to make and execute contracts and other
28 instruments necessary or convenient to the exercise of its powers under this
29 act; and to disseminate slum clearance and urban renewal information;
30 (b) to provide or to arrange or contract for the furnishing or repair by
31 any person or agency, public or private, of services, privileges, works,
32 streets, roads, public utilities or other facilities for or in connection with
33 an urban renewal project; to install, construct, and reconstruct streets,
34 utilities, parks, playgrounds, off-street parking facilities, public facili-
35 ties, other buildings or public improvements; and any improvements necessary
36 or incidental to a redevelopment project; and to agree to any conditions that
37 it may deem reasonable and appropriate attached to federal financial assis-
38 tance and imposed pursuant to federal law relating to the determination of
39 prevailing salaries or wages or compliance with labor standards, in the under-
40 taking or carrying out of an urban renewal project and related activities, and
41 to include in any contract let in connection with such a project and related
42 activities, provisions to fulfill such of said conditions as it may deem rea-
43 sonable and appropriate;
2
1 (c) within its area of operation, to enter into any building or property
2 in any urban renewal area in order to make inspections, surveys, appraisals,
3 soundings or test borings, and to obtain, upon sufficient cause and after a
4 hearing on the matter, an order for this purpose from a court of competent
5 jurisdiction in the event entry is denied or resisted; to acquire by purchase,
6 lease, option, gift, grant, bequest, devise, eminent domain or otherwise, any
7 real property (or personal property for its administrative purposes) together
8 with any improvements thereon; to hold, improve, renovate, rehabilitate, clear
9 or prepare for redevelopment any such property or buildings; to mortgage,
10 pledge, hypothecate or otherwise encumber or dispose of any real property; to
11 insure or provide for the insurance of any real or personal property or oper-
12 ations of the municipality against any risks or hazards, including the power
13 to pay premiums on any such insurance; and to enter into any contracts neces-
14 sary to effectuate the purposes of this act: Provided, however, that no statu-
15 tory provision with respect to the acquisition, clearance or disposition of
16 property by public bodies shall restrict a municipality or other public body
17 exercising powers hereunder in the exercise of such functions with respect to
18 an urban renewal project and related activities, unless the legislature shall
19 specifically so state;
20 (d) with the approval of the local governing body, (1) prior to approval
21 of an urban renewal plan, or approval of any modifications of the plan, to
22 acquire real property in an urban renewal area, demolish and remove any struc-
23 tures on the property, and pay all costs related to the acquisition, demoli-
24 tion, or removal, including any administrative or relocation expenses; and (2)
25 to assume the responsibility to bear any loss that may arise as the result of
26 the exercise of authority under this subsection in the event that the real
27 property is not made part of the urban renewal project;
28 (e) to invest any urban renewal funds held in reserves or sinking funds
29 or any such funds not required for immediate disbursement, in property or
30 securities in which savings banks may legally invest funds subject to their
31 control; to redeem such bonds as have been issued pursuant to section 50-2012,
32 Idaho Code, at the redemption price established therein or to purchase such
33 bonds at less than redemption price, all such bonds so redeemed or purchased
34 to be canceled;
35 (f) to borrow money and to apply for and accept advances, loans, grants,
36 contributions and any other form of financial assistance from the federal gov-
37 ernment, the state, county, or other public body, or from any sources, public
38 or private, for the purposes of this act, and to give such security as may be
39 required and to enter into and carry out contracts or agreements in connection
40 therewith; and to include in any contract for financial assistance with the
41 federal government for or with respect to an urban renewal project and related
42 activities such conditions imposed pursuant to federal laws as the municipal-
43 ity may deem reasonable and appropriate and which are not inconsistent with
44 the purposes of this act;
45 (g) within its area of operation, to make or have made all surveys and
46 plans necessary to the carrying out of the purposes of this act and to con-
47 tract with any person, public or private, in making and carrying out such
48 plans and to adopt or approve, modify and amend such plans, which plans may
49 include, but are not limited to: (1) plans for carrying out a program of vol-
50 untary compulsory repair and rehabilitation of buildings and improvements, (2)
51 plans for the enforcement of state and local laws, codes and regulations
52 relating to the use of land and the use and occupancy of buildings and
53 improvements and to the compulsory repair, rehabilitation, demolition, or
54 removal of buildings and improvements, and (3) appraisals, title searches,
55 surveys, studies, and other plans and work necessary to prepare for the under-
3
1 taking of urban renewal projects and related activities; and to develop, test,
2 and report methods and techniques, and carry out demonstrations and other
3 activities, for the prevention and the elimination of slums and urban blight
4 and developing and demonstrating new or improved means of providing housing
5 for families and persons of low income and to apply for, accept and utilize
6 grants of funds from the federal government for such purposes;
7 (h) to prepare plans for and assist in the relocation of persons
8 (including individuals, families, business concerns, nonprofit organizations
9 and others) displaced from an urban renewal area, and notwithstanding any
10 statute of this state to make relocation payments to or with respect to such
11 persons for which reimbursement or compensation is not otherwise made, includ-
12 ing the making of such payments financed by the federal government;
13 (i) to exercise all or any part or combination of powers herein granted;
14 (j) in addition to its powers under subsection (b) of this section, an
15 agency may construct foundations, platforms, and other like structural forms
16 necessary for the provision or utilization of air rights sites for buildings
17 and to be used for residential, commercial, industrial, and other uses contem-
18 plated by the urban renewal plan, and to provide utilities to the development
19 site; and
20 (k) to lend or invest funds obtained from the federal government for the
21 purposes of this act if allowable under federal laws or regulations.
22 SECTION 2. That Section 50-2008, Idaho Code, be, and the same is hereby
23 amended to read as follows:
24 50-2008. PREPARATION AND APPROVAL OF PLAN FOR URBAN RENEWAL PROJECT. (a)
25 An urban renewal project for an urban renewal area shall not be planned or
26 initiated unless the local governing body has, by resolution, determined such
27 area to be a deteriorated area or a deteriorating area or a combination
28 thereof and designated such area as appropriate for an urban renewal project.
29 (b) An urban renewal agency may itself prepare or cause to be prepared an
30 urban renewal plan, or any person or agency, public or private, may submit
31 such a plan to an urban renewal agency. Prior to its approval of an urban
32 renewal project, the local governing body shall submit such plan to the plan-
33 ning commission of the municipality, if any, for review and recommendations as
34 to its conformity with the general plan for the development of the municipal-
35 ity as a whole. The planning commission shall submit its written recommenda-
36 tions with respect to the proposed urban renewal plan to the local governing
37 body within thirty (30) days after receipt of the plan for review. Upon
38 receipt of the recommendations of the planning commission, or if no recommen-
39 dations are received within said thirty (30) days, then without such recommen-
40 dations, the local governing body may proceed with the hearing on the proposed
41 urban renewal project prescribed by subsection (c) hereof.
42 (c) The local governing body shall hold a public hearing on an urban
43 renewal project, after public notice thereof by publication in a newspaper
44 having a general circulation in the area of operation of the municipality. The
45 notice shall describe the time, date, place and purpose of the hearing, shall
46 generally identify the urban renewal area covered by the plan, and shall out-
47 line the general scope of the urban renewal project under consideration.
48 (d) Following such hearing, the local governing body may approve an urban
49 renewal project and the plan therefor if it finds that (1) a feasible method
50 exists for the location of families who will be displaced from the urban
51 renewal area in decent, safe and sanitary dwelling accommodations within their
52 means and without undue hardship to such families; (2) the urban renewal plan
53 conforms to the general plan of the municipality as a whole; (3) the urban
4
1 renewal plan gives due consideration to the provision of adequate park and
2 recreational areas and facilities that may be desirable for neighborhood
3 improvement, with special consideration for the health, safety and welfare of
4 children residing in the general vicinity of the site covered by the plan; and
5 (4) the urban renewal plan will afford maximum opportunity, consistent with
6 the sound needs of the municipality as a whole, for the rehabilitation or
7 redevelopment of the urban renewal area by private enterprise: Provided, that
8 if the urban renewal area consists of an area of open land to be acquired by
9 the urban renewal agency, such area shall not be so acquired unless (1) if it
10 is to be developed for residential uses, the local governing body shall deter-
11 mine that a shortage of housing of sound standards and design which is
12 decent, safe and sanitary exists in the municipality; that the need for hous-
13 ing accommodations has been or will be increased as a result of the clearance
14 of slums in other areas; that the conditions of blight in the area and the
15 shortage of decent, safe and sanitary housing cause or contribute to an
16 increase in and spread of disease and crime and constitute a menace to the
17 public health, safety, morals, or welfare; and that the acquisition of the
18 area for residential uses is an integral part of and essential to the program
19 of the municipality, or (2) if it is to be developed for nonresidential uses,
20 the local governing body shall determine that such nonresidential uses are
21 necessary and appropriate to facilitate the proper growth and development of
22 the community in accordance with sound planning standards and local community
23 objectives, which acquisition may require the exercise of governmental action,
24 as provided in this act, because of defective or unusual conditions of title,
25 diversity of ownership, tax delinquency, improper subdivisions, outmoded
26 street patterns, deterioration of site, economic disuse, unsuitable topography
27 or faulty lot layouts, the need for the correlation of the area with other
28 areas of a municipality by streets and modern traffic requirements, or any
29 combination of such factors or other conditions which retard development of
30 the area.
31 (e) An urban renewal plan may not be modified at any time: Provided that
32 if modified after the lease or sale by the urban renewal agency of real prop-
33 erty in the urban renewal project area, such modification may be conditioned
34 upon such approval of the owner, lessee or successor in interest as the urban
35 renewal agency may deem advisable and in any event shall be subject to such
36 rights at law or in equity as a lessee or purchaser, or his successor or suc-
37 cessors in interest, may be entitled to assert after its approval.
38 (f) Upon the approval by the local governing body of an urban renewal
39 plan, or of any modification thereof, such plan or modification shall be
40 deemed to be in full force and effect for the respective urban renewal area,
41 and the urban renewal agency may then cause such plan or modification to be
42 carried out in accordance with its terms.
43 (g) Notwithstanding any other provisions of this act, where the local
44 governing body certifies that an area is in need of redevelopment or rehabili-
45 tation as a result of a flood, fire, hurricane, earthquake, storm, or other
46 catastrophe respecting which the governor of the state has certified the need
47 for disaster assistance under Public Law 875, Eighty-first Congress, or other
48 federal law, the local governing body may approve an urban renewal plan and an
49 urban renewal project with respect to such area without regard to the provi-
50 sions of subsection (d) of this section and the provisions of this section
51 requiring a general plan for the municipality and a public hearing on the
52 urban renewal project.
53 SECTION 3. That Section 50-2018, Idaho Code, be, and the same is hereby
54 amended to read as follows:
5
1 50-2018. DEFINITIONS. The following terms wherever used or referred to in
2 this chapter, shall have the following meanings, unless a different meaning is
3 clearly indicated by the context:
4 (1) "Agency" or "urban renewal agency" shall mean a public agency created
5 by section 50-2006, Idaho Code.
6 (2) "Municipality" shall mean any incorporated city or town, or county in
7 the state.
8 (3) "Public body" shall mean the state or any municipality, township,
9 board, commission, authority, district, or any other subdivision or public
10 body of the state.
11 (4) "Local governing body" shall mean the council or other legislative
12 body charged with governing the municipality.
13 (5) "Mayor" shall mean the mayor of a municipality or other officer or
14 body having the duties customarily imposed upon the executive head of a munic-
15 ipality.
16 (6) "Clerk" shall mean the clerk or other official of the municipality
17 who is the custodian of the official records of such municipality.
18 (7) "Federal government" shall include the United States of America or
19 any agency or instrumentality, corporate or otherwise, of the United States of
20 America.
21 (8) "Deteriorated area" shall mean an area in which there is a predomi-
22 nance of buildings or improvements, whether residential or nonresidential,
23 which by reason of dilapidation, deterioration, age or obsolescence, inade-
24 quate provision for ventilation, light, air, sanitation, or open spaces, high
25 density of population and overcrowding, or the existence of conditions which
26 endanger life or property by fire and other causes, or any combination of such
27 factors is conducive to ill health, transmission of disease, infant mortality,
28 juvenile delinquency, or crime, and is detrimental to the public health,
29 safety, morals or welfare. Provided however, this definition shall not apply
30 to any agricultural operation, as defined in section 22-4502(1), Idaho Code,
31 absent the consent of the owner of the agricultural operation, except for an
32 agricultural operation that has not been used for three (3) consecutive years.
33 (9) "Deteriorating area" shall mean an area which by reason of the pres-
34 ence of a substantial number of deteriorated or deteriorating structures, pre-
35 dominance of defective or inadequate street layout, faulty lot layout in rela-
36 tion to size, adequacy, accessibility or usefulness, insanitary or unsafe con-
37 ditions, deterioration of site or other improvements, diversity of ownership,
38 tax or special assessment delinquency exceeding the fair value of the land,
39 defective or unusual conditions of title, or the existence of conditions which
40 endanger life or property by fire and other causes, or any combination of such
41 factors, substantially impairs or arrests the sound growth of a municipality,
42 retards the provision of housing accommodations or constitutes an economic or
43 social liability and is a menace to the public health, safety, morals or wel-
44 fare in its present condition and use; provided, that if such deteriorating
45 area consists of open land the conditions contained in the proviso in section
46 50-2008(d), Idaho Code, shall apply; and provided further, that any disaster
47 area referred to in section 50-2008(g), Idaho Code, shall constitute a deteri-
48 orating area. Provided however, this definition shall not apply to any agri-
49 cultural operation, as defined in section 22-4502(1), Idaho Code, absent the
50 consent of the owner of the agricultural operation, except for an agricultural
51 operation that has not been used for three (3) consecutive years.
52 (10) "Urban renewal project" may include undertakings and activities of a
53 municipality in an urban renewal area for the elimination of deteriorated or
54 deteriorating areas and for the prevention of the development or spread of
55 slums and blight, and may involve slum clearance and redevelopment in an urban
6
1 renewal area, or rehabilitation or conservation in an urban renewal area, or
2 any combination or part thereof in accordance with an urban renewal plan. Such
3 undertakings and activities may include:
4 (a) Acquisition of a deteriorated area or a deteriorating area or portion
5 thereof;
6 (b) Demolition and removal of buildings and improvements;
7 (c) Installation, construction, or reconstruction of streets, utilities,
8 parks, playgrounds, off-street parking facilities, public facilities or
9 buildings and other improvements necessary for carrying out in the urban
10 renewal area the urban renewal objectives of this chapter in accordance
11 with the urban renewal plan;
12 (d) Disposition of any property acquired in the urban renewal area,
13 including sale, initial leasing or retention by the agency itself, at its
14 fair value for uses in accordance with the urban renewal plan except for
15 disposition of property to another public body;
16 (e) Carrying out plans for a program of voluntary or compulsory repair
17 and rehabilitation of buildings or other improvements in accordance with
18 the urban renewal plan;
19 (f) Acquisition of real property in the urban renewal area which, under
20 the urban renewal plan, is to be repaired or rehabilitated for dwelling
21 use or related facilities, repair or rehabilitation of the structures for
22 guidance purposes, and resale of the property;
23 (g) Acquisition of any other real property in the urban renewal area
24 where necessary to eliminate unhealthful, insanitary or unsafe conditions,
25 lessen density, eliminate obsolete or other uses detrimental to the public
26 welfare, or otherwise to remove or to prevent the spread of blight or
27 deterioration, or to provide land for needed public facilities;
28 (h) Lending or investing federal funds; and
29 (i) Construction of foundations, platforms and other like structural
30 forms.
31 (11) "Urban renewal area" means a deteriorated area or a deteriorating
32 area or a combination thereof which the local governing body designates as
33 appropriate for an urban renewal project.
34 (12) "Urban renewal plan" means a plan, as it exists from time to time,
35 for an urban renewal project, which plan:
36 (a) Shall conform to the general plan for the municipality as a whole
37 except as provided in section 50-2008(g), Idaho Code; and
38 (b) Shall be sufficiently complete to indicate such land acquisition,
39 demolition and removal of structures, redevelopment, improvements, and
40 rehabilitation as may be proposed to be carried out in the urban renewal
41 area, zoning and planning changes, if any, land uses, maximum densities,
42 building requirements, and any method or methods of financing such plan,
43 which methods may include revenue allocation financing provisions.
44 (13) "Related activities" shall mean:
45 (a) Planning work for the preparation or completion of a community-wide
46 plan or program pursuant to section 50-2009, Idaho Code; and
47 (b) The functions related to the acquisition and disposal of real prop-
48 erty pursuant to section 50-2007(d), Idaho Code.
49 (14) "Real property" shall include all lands, including improvements and
50 fixtures thereon, and property of any nature appurtenant thereto, or used in
51 connection therewith, and every estate, interest, right and use, legal or
52 equitable, therein, including terms for years and liens by way of judgment,
53 mortgage or otherwise.
54 (15) "Bonds" shall mean any bonds, including refunding bonds, notes,
55 interim certificates, certificates of indebtedness, debentures or other obli-
7
1 gations.
2 (16) "Obligee" shall include any bondholder, agents or trustees for any
3 bondholders, or lessor demising to the municipality property used in connec-
4 tion with urban renewal, or any assignee or assignees of such lessor's inter-
5 est or any part thereof, and the federal government when it is a party to any
6 contract with the municipality.
7 (17) "Person" shall mean any individual, firm, partnership, corporation,
8 company, association, joint stock association, or body politic; and shall
9 include any trustee, receiver, assignee, or other person acting in a similar
10 representative capacity.
11 (18) "Area of operation" shall mean the area within the corporate limits
12 of the municipality and the area within five (5) miles of such limits, except
13 that it shall not include any area which lies within the territorial bound-
14 aries of another incorporated city or town or within the unincorporated area
15 of the county unless a resolution shall have been adopted by the governing
16 body of such other city, town or county declaring a need therefor.
17 (19) "Board" or "commission" shall mean a board, commission, department,
18 division, office, body or other unit of the municipality.
19 (20) "Public officer" shall mean any officer who is in charge of any
20 department or branch of the government of the municipality relating to health,
21 fire, building regulations, or to other activities concerning dwellings in the
22 municipality.
23 SECTION 4. That Section 50-2027, Idaho Code, be, and the same is hereby
24 amended to read as follows:
25 50-2027. LIMITATIONS ON REVIEW OF ADOPTION OR MODIFICATION OF PLAN, AND
26 ISSUANCE OF BONDS. (1) No direct or collateral action attacking or otherwise
27 questioning the validity of any urban renewal plan, or project, or modifica-
28 tion thereto (including one containing a revenue allocation provision), or the
29 adoption or approval of such plan, or project or modification, or any of the
30 findings or determinations of the agency or the local governing body in con-
31 nection with such plan, or project or modification, shall be brought prior to
32 the effective date of the ordinance adopting or modifying the plan. No direct
33 or collateral action attacking or otherwise questioning the validity of bonds
34 issued pursuant to section 50-2012, Idaho Code, or section 50-2026(a), Idaho
35 Code, shall be brought prior to the effective date of the resolution or ordi-
36 nance authorizing such bonds.
37 (2) For a period of thirty (30) days after the effective date of the
38 ordinance or resolution, any person in interest shall have the right to con-
39 test the legality of such ordinance, resolution or proceeding or any bonds
40 which may be authorized thereby. No contest or proceeding to question the
41 validity or legality of any ordinance, resolution or proceeding, or any bonds
42 which may be authorized thereby, passed or adopted under the provisions of
43 this chapter shall be brought in any court by any person for any cause whatso-
44 ever, after the expiration of thirty (30) days from the effective date of the
45 ordinance, resolution or proceeding, and after such time the validity, legal-
46 ity and regularity of such ordinance, resolution or proceeding or any bonds
47 authorized thereby shall be conclusively presumed. If the question of the
48 validity of any adopted plan or bonds issued pursuant to this chapter is not
49 raised within thirty (30) days from the effective date of the ordinance, reso-
50 lution or preceeding proceeding issuing said bonds and fixing their terms, the
51 authority of the plan, the authority adopting the plan, or the authority to
52 issue the bonds, and the legality thereof, the same shall be conclusively pre-
53 sumed and no court shall thereafter have authority to inquire into such mat-
8
1 ters.
2 SECTION 5. That Section 50-2903, Idaho Code, be, and the same is hereby
3 amended to read as follows:
4 50-2903. DEFINITIONS. The following terms used in this chapter shall have
5 the following meanings, unless the context otherwise requires:
6 (1) "Act" or "this act" means this revenue allocation act.
7 (2) "Agency" or "urban renewal agency" means a public body created pursu-
8 ant to section 50-2006, Idaho Code.
9 (3) "Authorized municipality" or "municipality" means any county or
10 incorporated city which has established an urban renewal agency, or by ordi-
11 nance has identified and created a competitively disadvantaged border commu-
12 nity.
13 (4) "Base assessment roll" means the equalized assessment rolls, for all
14 classes of taxable property, on January 1 of the year in which the local gov-
15 erning body of an authorized municipality passes an ordinance adopting or mod-
16 ifying an urban renewal plan containing a revenue allocation financing provi-
17 sion, except that the base assessment roll shall be adjusted as follows: the
18 equalized assessment valuation of the taxable property in a revenue allocation
19 area as shown upon the base assessment roll shall be reduced by the amount by
20 which the equalized assessed valuation as shown on the base assessment roll
21 exceeds the current equalized assessed valuation of any taxable property
22 located in the revenue allocation area, and by the equalized assessed valua-
23 tion of taxable property in such revenue allocation area that becomes exempt
24 from taxation subsequent to the date of the base assessment roll. The equal-
25 ized assessed valuation of the taxable property in a revenue allocation area
26 as shown on the base assessment roll shall be increased by the equalized
27 assessed valuation, as of the date of the base assessment roll, of taxable
28 property in such revenue allocation area that becomes taxable after the date
29 of the base assessment roll.
30 (5) "Budget" means an annual estimate of revenues and expenses for the
31 following fiscal year of the agency. An agency shall, by September 1 of each
32 calendar year, adopt and publish, as described in section 50-1002, Idaho Code,
33 a budget for the next fiscal year. An agency may amend its adopted budget
34 using the same procedures as used for adoption of the budget. For the fiscal
35 year that immediately predates the termination date for an urban renewal plan
36 involving a revenue allocation area or will include the termination date, the
37 agency shall adopt and publish a budget specifically for the projected reve-
38 nues and expenses of the plan and make a determination as to whether the reve-
39 nue allocation area can be terminated before the January 1 of the termination
40 year pursuant to the terms of section 50-2909(4), Idaho Code. In the event
41 that the agency determines that current tax year revenues are sufficient to
42 cover all estimated expenses for the current year and all future years, by
43 September 1 the agency shall adopt a resolution advising and notifying the
44 local governing body, the county auditor, and the state tax commission and
45 recommending the adoption of an ordinance for termination of the revenue allo-
46 cation area by December 31 of the current year and declaring a surplus to be
47 distributed as described in section 50-2909, Idaho Code, should a surplus be
48 determined to exist. The agency shall cause the ordinance to be filed with the
49 office of the county recorder and the Idaho state tax commission as provided
50 in section 63-215, Idaho Code. Upon notification of revenues sufficient to
51 cover expenses as provided herein, the increment value of that revenue alloca-
52 tion area shall be included in the net taxable value of the appropriate taxing
53 districts when calculating the subsequent property tax levies pursuant to sec-
9
1 tion 63-803, Idaho Code. The increment value shall also be included in subse-
2 quent notification of taxable value for each taxing district pursuant to sec-
3 tion 63-1312, Idaho Code, and subsequent certification of actual and adjusted
4 market values for each school district pursuant to section 63-315, Idaho Code.
5 (6) "Clerk" means the clerk of the municipality.
6 (7) "Competitively disadvantaged border community area" means a parcel of
7 land consisting of at least forty (40) acres which is situated within the
8 jurisdiction of a county or an incorporated city and within twenty-five (25)
9 miles of a state or international border, which the governing body of such
10 county or incorporated city has determined by ordinance is disadvantaged in
11 its ability to attract business, private investment, or commercial develop-
12 ment, as a result of a competitive advantage in the adjacent state or nation
13 resulting from inequities or disparities in comparative sales taxes, income
14 taxes, property taxes, population or unique geographic features.
15 (8) "Deteriorated area" means:
16 (a) Any area, including a slum area, in which there is a predominance of
17 buildings or improvements, whether residential or nonresidential, which by
18 reason of dilapidation, deterioration, age or obsolescence, inadequate
19 provision for ventilation, light, air, sanitation, or open spaces, high
20 density of population and overcrowding, or the existence of conditions
21 which endanger life or property by fire and other causes, or any combina-
22 tion of such factors, is conducive to ill health, transmission of disease,
23 infant mortality, juvenile delinquency, or crime, and is detrimental to
24 the public health, safety, morals or welfare.
25 (b) Any area which by reason of the presence of a substantial number of
26 deteriorated or deteriorating structures, predominance of defective or
27 inadequate street layout, faulty lot layout in relation to size, adequacy,
28 accessibility or usefulness, insanitary or unsafe conditions, deteriora-
29 tion of site or other improvements, diversity of ownership, tax or special
30 assessment delinquency exceeding the fair value of the land, defective or
31 unusual conditions of title, or the existence of conditions which endanger
32 life or property by fire and other causes, or any combination of such fac-
33 tors, results in economic underdevelopment of the area, substantially
34 impairs or arrests the sound growth of a municipality, retards the provi-
35 sion of housing accommodations or constitutes an economic or social lia-
36 bility and is a menace to the public health, safety, morals or welfare in
37 its present condition and use.
38 (c) Any area which is predominately open and which because of obsolete
39 platting, diversity of ownership, deterioration of structures or improve-
40 ments, or otherwise, results in economic underdevelopment of the area or
41 substantially impairs or arrests the sound growth of a municipality. The
42 provisions of section 50-2008(d), Idaho Code, shall apply to open areas.
43 (d) Any area which the local governing body certifies is in need of rede-
44 velopment or rehabilitation as a result of a flood, storm, earthquake, or
45 other natural disaster or catastrophe respecting which the governor of the
46 state has certified the need for disaster assistance under any federal
47 law.
48 (e) Any area which by reason of its proximity to the border of an adja-
49 cent state is competitively disadvantaged in its ability to attract pri-
50 vate investment, business or commercial development which would promote
51 the purposes of this chapter.
52 (9) "Facilities" means land, rights in land, buildings, structures,
53 machinery, landscaping, extension of utility services, approaches, roadways
54 and parking, handling and storage areas, and similar auxiliary and related
55 facilities.
10
1 (10) "Increment value" means the total value calculated by summing the
2 differences between the current equalized value of each taxable property in
3 the revenue allocation area and that property's current base value on the base
4 assessment roll, provided such difference is a positive value.
5 (11) "Local governing body" means the city council or board of county com-
6 missioners of a municipality.
7 (12) "Plan" or "urban renewal plan" means a plan, as it exists or may from
8 time to time be amended, prepared and approved pursuant to section 50-2008,
9 Idaho Code, and any method or methods of financing such plan, which methods
10 may include revenue allocation financing provisions.
11 (13) "Project" or "urban renewal project" or "competitively disadvantaged
12 border areas" may include undertakings and activities of a municipality in an
13 urban renewal area for the elimination of deteriorated or deteriorating areas
14 and for the prevention of the development or spread of slums and blight, and
15 may involve slum clearance and redevelopment in an urban renewal area, or
16 rehabilitation or conservation in an urban renewal area, or any combination or
17 part thereof in accordance with an urban renewal plan. Such undertakings and
18 activities may include:
19 (a) Acquisition of a deteriorated area or a deteriorating area or portion
20 thereof;
21 (b) Demolition and removal of buildings and improvement;
22 (c) Installation, construction, or reconstruction of streets, utilities,
23 parks, playgrounds, open space, off-street parking facilities, public
24 facilities, public recreation and entertainment facilities or buildings
25 and other improvements necessary for carrying out, in the urban renewal
26 area or competitively disadvantaged border community area, the urban
27 renewal objectives of this act in accordance with the urban renewal plan
28 or the competitively disadvantaged border community area ordinance.
29 (d) Disposition of any property acquired in the urban renewal area or the
30 competitively disadvantaged border community area (including sale, initial
31 leasing or retention by the agency itself) or the municipality creating
32 the competitively disadvantaged border community area at its fair value
33 for uses in accordance with the urban renewal plan except for disposition
34 of property to another public body;
35 (e) Carrying out plans for a program of voluntary or compulsory repair
36 and rehabilitation of buildings or other improvements in accordance with
37 the urban renewal plan;
38 (f) Acquisition of real property in the urban renewal area or the compet-
39 itively disadvantaged border community area which, under the urban renewal
40 plan, is to be repaired or rehabilitated for dwelling use or related
41 facilities, repair or rehabilitation of the structures for guidance pur-
42 poses, and resale of the property;
43 (g) Acquisition of any other real property in the urban renewal area or
44 competitively disadvantaged border community area where necessary to elim-
45 inate unhealthful, insanitary or unsafe conditions, lessen density, elimi-
46 nate obsolete or other uses detrimental to the public welfare, or other-
47 wise to remove or to prevent the spread of blight or deterioration, or to
48 provide land for needed public facilities or where necessary to accomplish
49 the purposes for which a competitively disadvantaged border community area
50 was created by ordinance;
51 (h) Lending or investing federal funds; and
52 (i) Construction of foundations, platforms and other like structural
53 forms.
54 (14) "Project costs" includes, but is not limited to:
55 (a) Capital costs, including the actual costs of the construction of pub-
11
1 lic works or improvements, facilities, buildings, structures, and perma-
2 nent fixtures; the demolition, alteration, remodeling, repair or recon-
3 struction of existing buildings, structures, and permanent fixtures; the
4 acquisition of equipment; and the clearing and grading of land;
5 (b) Financing costs, including interest during construction and capital-
6 ized debt service or repair and replacement or other appropriate reserves;
7 (c) Real property assembly costs, meaning any deficit incurred from the
8 sale or lease by a municipality of real or personal property within a rev-
9 enue allocation district;
10 (d) Professional service costs, including those costs incurred for archi-
11 tectural, planning, engineering, and legal advice and services;
12 (e) Direct administrative costs, including reasonable charges for the
13 time spent by municipal employees in connection with the implementation of
14 a project plan;
15 (f) Relocation costs;
16 (g) Other costs incidental to any of the foregoing costs.
17 (15) "Revenue allocation area" means that portion of an urban renewal area
18 or competitively disadvantaged border community area the equalized assessed
19 valuation (as shown by the taxable property assessment rolls) of which the
20 local governing body has determined, on and as a part of an urban renewal
21 plan, is likely to increase as a result of the initiation of an urban renewal
22 project or competitively disadvantaged border community area. The base assess-
23 ment roll or rolls of revenue allocation area or areas shall not exceed at any
24 time ten percent (10%) of the current assessed valuation of all taxable prop-
25 erty within the municipality.
26 (16) "State" means the state of Idaho.
27 (17) "Tax" or "taxes" means all property tax levies upon taxable property.
28 (18) "Taxable property" means taxable real property, personal property,
29 operating property, or any other tangible or intangible property included on
30 the equalized assessment rolls.
31 (19) "Taxing district" means a taxing district as defined in section
32 63-201, Idaho Code, as that section now exists or may hereafter be amended.
33 (20) "Termination date" means a specific date no later than twenty-four
34 (24) years from the effective date of an urban renewal plan or as described in
35 section 50-2904, Idaho Code, on which date the plan shall terminate. Every
36 urban renewal plan shall have a termination date that can be modified or
37 extended subject to the twenty-four (24) year maximum limitation. Provided
38 however, the duration of a revenue allocation financing provision may be
39 extended as provided in section 50-2904, Idaho Code.
40 SECTION 6. That Section 50-2904, Idaho Code, be, and the same is hereby
41 amended to read as follows:
42 50-2904. AUTHORITY TO CREATE REVENUE ALLOCATION AREA. An authorized
43 municipality is hereby authorized and empowered to adopt, at any time, a reve-
44 nue allocation financing provision, as described in this chapter, as part of
45 an urban renewal plan or competitively disadvantaged border community area
46 ordinance. A revenue allocation financing provision may be adopted either at
47 the time of the original adoption of an urban renewal plan or the creation by
48 ordinance of a competitively disadvantaged border community area. or thereaf-
49 ter as a modification of an urban renewal plan or the ordinance creating the
50 competitively disadvantaged border community area. Urban renewal plans exist-
51 ing prior to the effective date of this section July 1, 2007, may be modified
52 to include a revenue allocation financing provision. Except as provided below,
53 no revenue allocation provision of an urban renewal plan or competitively dis-
12
1 advantaged border community area ordinance, including all amendments thereto,
2 shall have a duration exceeding twenty-four (24) years from the date the
3 ordinance is approved by the municipality. The duration of the revenue alloca-
4 tion financing provision may be extended if:
5 (1) The maturity date of any bonds issued to provide funds for a specific
6 project in the revenue allocation area and payable from the revenue allocation
7 financing provision exceeds the duration of the revenue allocation financing
8 provision, provided such bond maturity is not greater than thirty (30) years;
9 or
10 (2) The urban renewal agency determines that it is necessary to refinance
11 outstanding bonds payable from the revenue allocation financing provision to a
12 maturity exceeding the twenty-four (24) year duration of the revenue alloca-
13 tion financing provision in order to avoid a default on the bonds; or
14 (3) The local governing body has adopted an urban renewal plan or compet-
15 itively disadvantaged border community area ordinance or an amendment to an
16 urban renewal plan or competitively disadvantaged border community area ordi-
17 nance prior to July 1, 2000, in which is defined the duration of the plan
18 beyond a period of twenty-four (24) years, in which case the revenue alloca-
19 tion provision shall have a duration as described in such urban renewal plan
20 or competitively disadvantaged border community ordinance; and
21 (4) During the extensions set forth in subsections (1) and (2) of this
22 section, any revenue allocation revenues exceeding the amount necessary to
23 repay the bonds during the period exceeding the twenty-four (24) year maturity
24 of the revenue allocation financing provision shall be returned to the taxing
25 districts in the revenue allocation area on a pro rata basis.
26 SECTION 7. That Section 50-2906, Idaho Code, be, and the same is hereby
27 amended to read as follows:
28 50-2906. PUBLIC HEARING AND ORDINANCE REQUIRED. (1) To adopt a new urban
29 renewal plan or create a competitively disadvantaged border community area
30 containing a revenue allocation financing provision, the local governing body
31 of an authorized municipality must enact an ordinance in accordance with chap-
32 ter 9, title 50, Idaho Code, and section 50-2008, Idaho Code. To modify an
33 existing urban renewal plan, to add or change a revenue allocation, an autho-
34 rized municipality must enact an ordinance in accordance with chapter 9, title
35 50, Idaho Code, and conduct a public hearing as provided in section
36 50-2008(c), Idaho Code. No urban renewal project, plan, or competitively dis-
37 advantaged border community area, or modification thereto, or revenue alloca-
38 tion financial provision shall be held ineffective for failure to comply with
39 the requirements of this section if compliance with the section is substantial
40 and in good faith and administrative authority of both the local governing
41 body and urban renewal agency does not extend beyond the municipal boundary of
42 the authorized municipality. Urban renewal plans and revenue allocation
43 financing provisions may be held ineffective if an urban renewal area or reve-
44 nue allocation area extends outside the municipal boundary of an authorized
45 municipality and a transfer of powers ordinance has not been adopted by the
46 cooperating county.
47 (2) A revenue allocation financing provision adopted in accordance with
48 this chapter shall be effective retroactively to January 1 of the year in
49 which the local governing body of the authorized municipality enacts such
50 ordinance.
51 (3) The local governing body of an authorized municipality shall prepare
52 a notice stating: (a) that an urban renewal plan or modification thereto or a
53 competitively disadvantaged border community area has been proposed and is
13
1 being considered for adoption, and that such plan or modification thereto or
2 proposal to create a competitively disadvantaged border community area con-
3 tains a revenue allocation financing provision that will cause property taxes
4 resulting from any increases in equalized assessed valuation in excess of the
5 equalized assessed valuation as shown on the base assessment roll to be allo-
6 cated to the agency for urban renewal and competitively disadvantaged border
7 community area purposes; and (b) that an agreement on administration of a rev-
8 enue allocation financing provision extending beyond the municipal boundary of
9 the authorized municipality has been negotiated with the cooperating county
10 having extraterritorial power and that the agreement has been formalized by a
11 transfer of power ordinance adopted by that county; and (c) that a public
12 hearing on such plan or modification will be held by the local governing body
13 pursuant to section 50-2008(c), Idaho Code. The notice shall also state the
14 time, date, and place of the hearing. At least thirty (30) days but not more
15 than sixty (60) days prior to the date set for final reading of the ordinance,
16 the local governing body shall publish the notice in a newspaper of general
17 circulation and transmit the notice, together with a copy of the plan and rec-
18 ommendation of the urban renewal agency or the municipality which by ordinance
19 created the competitively disadvantaged border community area, to the govern-
20 ing body of each taxing district which levies taxes upon any taxable property
21 in the revenue allocation area and which would be affected by the revenue
22 allocation financing provision of the urban renewal plan proposed to be
23 approved by the local governing body.
24 SECTION 8. That Section 50-2911, Idaho Code, be, and the same is hereby
25 amended to read as follows:
26 50-2911. LIMITATIONS ON REVIEW. (1) No direct or collateral action
27 attacking or otherwise questioning the validity of any urban renewal plan, or
28 project or modification thereto (including one containing a revenue allocation
29 provision), or the adoption or approval of such plan, or project or modifica-
30 tion, or any of the findings or determinations of the agency or the local gov-
31 erning body in connection with such plan, or project or modification, shall be
32 brought prior to the effective date of the ordinance adopting or modifying the
33 plan. No direct or collateral action attacking or otherwise questioning the
34 validity of bonds issued pursuant to section 50-2909, Idaho Code, shall be
35 brought prior to the effective date of the resolution or ordinance authorizing
36 such bonds.
37 (2) For a period of thirty ninety (390) days after the effective date of
38 the ordinance or resolution, any person in interest shall have the right to
39 contest the legality of such ordinance, resolution or proceeding or any bonds
40 which may be authorized thereby. No contest or proceeding to question the
41 validity or legality of any ordinance, resolution or proceeding, or any bonds
42 which may be authorized thereby, passed or adopted under the provisions of
43 this chapter shall be brought in any court by any person for any cause whatso-
44 ever, after the expiration of thirty ninety (390) days from the effective date
45 of the ordinance, resolution or proceeding, and after such time the validity,
46 legality and regularity of such ordinance, resolution or proceeding or any
47 bonds authorized thereby shall be conclusively presumed. If the question of
48 the validity of any adopted plan or bonds issued pursuant to this chapter is
49 not raised within thirty ninety (390) days from the effective date of the
50 ordinance, resolution or proceeding issuing said bonds and fixing their terms,
51 the authority of the plan, the authority adopting the plan, or the authority
52 to issue the bonds, and the legality thereof, the same shall be conclusively
53 presumed and no court shall thereafter have authority to inquire into such
14
1 matters.
STATEMENT OF PURPOSE
RS 16677
The purpose of this legislation is to amend sections of the
Idaho Code that pertain to the deletion or modification of an
urban renewal plan or project.
FISCAL NOTE
None
Contact
Name: Rep. Jim Clark
Phone: 332-1000
Senator Michael Jorgenson
STATEMENT OF PURPOSE/FISCAL NOTE H 48