Summary of the Introduced Bill

HB 863 -- Tax Incentives for Economic Development

Sponsor:  Wasson

This bill establishes the Downtown Revitalization Preservation
Program which allows any municipality with fewer than 200,000
residents to undertake redevelopment projects to reduce blight in
their downtown-area if certain requirements are met.

The municipality must submit an application to the Department of
Economic Development for approval.  The application requirements,
which include a development plan, are specified.  Cities
participating in the program are prohibited from simultaneously
receiving the state's tax increment financing.  Cities with a
population of 100,000 to 199,999 must have a capital investment
of at least $5 million; cities with a population of 50,000 to
99,999 must have at least $1 million; and cities with fewer than
50,000 residents must have at least $500,000 in order to utilize
this program.

The projects' costs are reimbursed to the cities through
disbursements from the Downtown Revitalization Preservation Fund,
which is established and administered by the department.  The
fund will include $150 million of other net new revenues
generated annually by the development projects, reimbursement
costs charged by the state, and any gifts or other contributions.
At no time can the annual amount of other net new revenues
approved for disbursement from the fund exceed $150 million.
Projects cannot receive disbursements for more than 20 years
unless the department director approves an individual project for
disbursements for up to 25 years.

Copyright (c) Missouri House of Representatives

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:20 pm