2007 Legislation
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HOUSE BILL NO. 48 – Urban renewal plans, modification

HOUSE BILL NO. 48

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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

Bill Text


                                                                        
                                                                        
  ]]]]              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 / Fiscal Impact



                           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