HCS HB 863 -- TAX INCENTIVES FOR ECONOMIC DEVELOPMENT (Wasson)

COMMITTEE OF ORIGIN:  Job Creation and Economic Development

This substitute 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; cities with 10,000 to
49,999 must have at least $500,000; and cities with fewer than
10,000 residents must have at least $250,000 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 will be administered by the department.
The fund will include $15 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 $15 million.  The
department is authorized to disburse the funds to the projects;
however, projects cannot receive disbursements for more than 25
years.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

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