Chapter 6
BUSINESS REDEVELOPMENT*
Art. I. In General, §§ 6-1—6-30
Art. II. Downtown Special Business District, §§ 6-31—6-41
ARTICLE I. IN GENERAL
Sec. 6-1. Title, designation.
This chapter shall be known and may be cited and referred to as "the Business Redevelopment Ordinance." (Ord. No. 5815, § 1, 3-20-75).
Sec. 6-2. Determination of necessity for legislation
It is hereby determined and declared by the council of the City of Kirkwood, Missouri, that in certain commercial and industrial portions of the city obsolete, decadent, substandard, unsanitary or blighted areas exist occasioned by inadequate planning, excessive land coverage, lack of proper light, air or open space, defective design or arrangement of buildings, lack or proper sanitary facilities, or the existence of buildings, which by reason of age, obsolescence, inadequate or outmoded design, or physical deterioration, have impaired the economic value of areas infecting them with blight, and that such areas are characterized by depreciated values, impaired investments, reduced or negligible income and consequent tax delinquencies; that such conditions exist in areas where obsolete, deteriorating, substandard, unsanitary, outworn or outmoded industrial, commercial or residential buildings prevail, and the same are conducive to economic and social liability, ill health, transmission of disease, infant mortality, juvenile delinquency and crime, that such conditions occur chiefly in areas which are subdivided into small parcels with multiple ownership and frequently with confusion as to titles; that their assembly for purposes of clearance, replanning, rehabilitation, reconstruction and redevelopment is difficult and costly; that the existence of such conditions and the failure to clear, replan, rehabilitate, reconstruct or redevelop these areas results in progressive deterioration, in a loss of population by the areas, causes a wasteful expenditure of public funds for policing, and occasions large outlays for the creation of public facilities and services elsewhere; that is impossible and uneconomical for individual owners to independently undertake to remedy such conditions; that such conditions require the employment of capital on an investment basis, allowing, however, the widest latitude in amortization of any indebtedness created thereby; that such conditions further require the acquisition of adequate areas, at fair prices, the clearance of such areas through demolition of existing obsolete, deteriorating, inadequate, unsafe or unsanitary buildings and the redevelopment of such areas through demolition of existing obsolete, deteriorating, inadequate, unsafe or unsanitary buildings and the redevelopment of such areas under proper supervision with appropriate planning as to land use, traffic circulation, and construction and redevelopment of such areas on a large scale basis are necessary for the public welfare, and that such obsolete, deteriorating, substandard, unsanitary and blighted areas constitute a menace to the health, safety, morals, and welfare of the citizens of the city. Therefore, the necessity for the provisions herein enacted is hereby declared as a matter of legislative determination to be in the public interest. (Ord. No. 5815, § 2, 3-20-75)
Sec. 6-3. Acceptance of application of state enabling act.
The provisions of the Urban Redevelopment Corporations Law, found in Chapter 353, Revised Statutes of Missouri, as amended, are hereby accepted and shall apply to all persons and corporations operating under this chapter, insofar as the same may be applicable thereto. (Ord. No. 5815, § 3, 3-20-75)
Sec. 6-4. Definitions.
The following terms, whenever used or referred to in this chapter shall, unless a different intent clearly appears from the context, be construed to have the following meanings:
Blighted area: "Blighted area" shall mean that portion of the city which the city council shall determine, that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, have become economic and social liabilities and that such conditions are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes.
Business redevelopment area: "Business redevelopment area" shall
mean a specific commercial or industrial area within the City of
City: "City" shall mean the City of Kirkwood, Missouri.
City council: "City council" shall mean the council of the City of Kirkwood, Missouri.
Commission:
"Commission" shall mean the
Construction work: "Construction work" shall mean the taking of possession of land, clearance of the area, erection of improvements and all other related matters to effectuate an approved development plan causing the physical rehabilitation, construction, reconstruction and redevelopment of the Area.
Corporation: "Corporation" shall mean an urban redevelopment corporation organized under and pursuant to the provisions of the Urban Redevelopment Corporations Law.
Development cost: "Development cost" shall mean the amount stated in the approved development plan which is determined to be the estimated or actual expenses of the corporation in the redevelopment project and shall include, among other things, the reasonable estimated or actual expense of planning the redevelopment, including preliminary studies and surveys, neighborhood planning and architectural and engineering services, interest during construction, the estimated or actual expense of the real property or any part thereof, the estimated or actual expense of demolition of existing structures, the estimated or actual expense of utilities, landscaping and roadways, the estimated or actual expense of construction, equipment and furnishing of buildings and improvements, including architectural, engineering and builders fees, the estimated or actual expense of reconstruction, rehabilitation, redevelopment, remodeling or initial repair of existing buildings and improvements, reasonable management and operation expenses until the redevelopment is ready for its use, as provided for in the approved development plan, and the estimated or actual expense of improving those portions of the area which are to remain open spaces, together with such additional expense incurred as a result of additions to or changes in the development plan where such additions or changes are approved by the city council.
Development plan: "Development plan" shall mean a plan, together with any amendments thereto, for the development of all or any part of a business redevelopment area, which is authorized by the city council.
Mortgage: "Mortgage" shall mean a mortgage, trust indenture, deed of trust, building and loan contract, or other instrument creating a lien on real property, to secure the payment of an indebtedness, and the indebtedness secured by any of them.
Person: "Person" shall mean any individual, firm, partnership, joint venture, association, corporation (except an urban redevelopment corporation organized pursuant to the provisions of the Urban Redevelopment Corporations Law, and any life insurance company, organized under the laws of, or admitted to do business in the state, undertaking a redevelopment project under this chapter), whether organized for profit or not, estate, trust, business trust, receiver or trustee appointed by any state or federal court, syndicate, or any other group or combination acting as a unit, and shall include the male as well as the female gender and the plural as well as the singular number.
Real property: "Real property" shall include lands, buildings, improvements, land under water, waterfront property, and any and all easements, franchises and hereditaments, corporeal or incorporeal, and every estate, interest, privilege, easement, franchise and right therein, or appurtenant thereto, legal or equitable, including restrictions of record created by plat, covenant, or otherwise, rights‑of‑way, and terms for years.
Redevelopment: "Redevelopment" shall mean the clearance, replanning, reconstruction or rehabilitation of any blighted area, and the provision for such industrial, commercial, residential or public structures and spaces as may be appropriate, including recreational and other facilities incident or appurtenant thereto.
Redevelopment project: "Redevelopment project" shall mean a specific work or improvement to effectuate all or any part of a development plan.
Urban Redevelopment Corporations Law: "Urban Redevelopment Corporations Law" shall mean Chapter 353 of the Revised Statutes of Missouri and any amendments thereto. (Ord. No. 5815, § 4, 3‑20‑75)
Sec. 6-5. Declaration as business redevelopment area
prerequisite to application for development
plan approval, procedure.
Prior to any formal application for approval of a development plan, there must be a finding of factual evidence of blight in the area covered by the plan. Such evidence:
(a) Must relate to the area generally;
(b) Must relate to the vast majority of the individual real properties within the area;
(c) Must be sufficient to show that by reason of age, obsolescence, inadequate or outmoded design or physical deterioration, the properties involved are either an economic or social liability; or are conducive to ill health, transmission of disease, crime or inability to pay reasonable taxes;
(d) Must be sufficiently complete to make a finding of blight as required by state statute.
Material to document such evidence may be gathered and
presented by any interested person, or by the City of
The commission shall analyze the material submitted and, to the extent necessary, conduct its own study in order to prepare a report to the city council either confirming the evidence of blight or setting out such exceptions or modifications as may be appropriate.
Upon receipt of the commission's report the city council may make a finding of factual evidence of blight. Such finding must be certified by passing an ordinance declaring the area under examination blighted and a business redevelopment area. (Ord. No. 5815 § 5, 3-20-75)
Editor's
note—For
purposes of classification, and in order to facilitate indexing and use, the
editor has redesignated provisions of Ord. No. 5815, § 5, adopted
March 20, 1975, setting forth the area to which said Ord. No. 5815
applies, and formerly codified as the second full paragraph of § 6-5, as subsection
(a) of a new § 6-5.1. Likewise, for
purposes of classification, the editor has redesignated provisions of Ord. No.
6381, § 1, adopted Feb. 1, 1979, enacting a new § 6-27, as subsection (b) of
new § 6-5.1.
Sec. 6-5.1. Lands declared business redevelopment areas.
(a) Ordinance No. 5815: Subject to future amendment, only the portion of the city described as a two-block area situated within the east right-of-way line of Kirkwood Road, the west right-of-way line of Taylor Avenue, and the north right-of-way line of Railroad Street and Monroe Avenue, and further described as Block D and Block 33 of the Town of Kirkwood, Missouri, as shown in Book 3, pages 57 and 58, in the office of the recorder of deeds, St. Louis County, Missouri, is subject to the provisions of this article.
(b) Ordinance No. 6381: The provisions of this article are hereby made applicable to the following described area:
(c) Ordinances No. 6450 and 6485: The provisions of this article are hereby made applicable to the following described area:
Part of the south half of Block 32 of the Town (now City) of Kirkwood in St. Louis County, Missouri and described as: Beginning at a point in the north line of Monroe Avenue distance 100.00 feet west from the southeast corner of said Block 32, thence west along the north line of Monroe Avenue 140.00 feet to a point; thence north and parallel to the west line of Kirkwood Road 150.00 feet to the north line of the said south half of Block 32; thence east and parallel to the north line of Monroe Avenue 140.00 feet; thence south and parallel to the west line of Kirkwood Road 150.00 feet to the point of beginning.
(Ord. No. 5815, § 5, 3-20-75; Ord. No. 6381, § 1, 2-1-79; Ord. No. 6450, § 1, 7-19-79; Ord. No. 6485, § 1, 9-27-79)
Editor's
note—Ord.
No. 6450, § 1, adopted July 19, 1979, amended the Code by adding
provisions designated § 6-28; for purposes of classification, the editor has
redesignated said provisions as subsection (c) of § 6-5.1.
Note—See editor's note, § 6-5.
Sec. 6‑6. Application for approval of development plan, fee upon filing plan.
Any corporation desiring approval of a development plan shall first submit the proposed plan and supporting information to the city administrator/city clerk. The city administrator/city clerk shall then secure a written determination from the director of community development (or alternate department head designated by the city council) and the city attorney that the submission contains at least the minimum information and material required herein, and that the submission has been made by a duly formed corporation under the Urban Redevelopment Corporations Law. Such determination shall not preclude the city planning and zoning commission and/or the city council from requesting further information later.
No plan shall be accepted for filing unless it is accompanied by a filing fee of two hundred dollars ($200.00). It is understood by the proponents of the development plan that such fee will be used by the city council and commission to defray expenses connected with the evaluation and review of the development plan and does not relieve the proponents of the development plan from fees, licenses and any other expenses stated in other ordinances of the city to effectuate such development plan.
After the administrative director/city clerk secures an affirmative written determination by the director of community development (or alternate department head designated by the city council) and the city attorney, and secures proof that the necessary filing fee has been received, he may fully accept the development plan for filing. After filing, the city council shall cause notice of the filing to be given in at least one publication in a newspaper printed, published or of general circulation in the City of Kirkwood, and shall refer the application to the city planning and zoning commission for an investigation and report as to the matters set forth in sections 6‑10 and 6-11. The commission shall file its report and recommendations with the council within sixty (60) days after the date of the published notice of filing, or within such additional time thereafter as may be authorized by the council. (Ord. No. 5815 ,§ 6, 3‑20‑75; Ord. No. 6060, § 1, 12‑9‑76)
Sec. 6‑7. Notification by corporation.
A development plan application must be accompanied by evidence that each person or entity having a property interest of record in the development area has been given written notice of the filing of the development plan with the commission by depositing such notice in the United States mails, postage prepaid, addressed to such person or entity at the property, if the property is improved, or if the property is unimproved, that at the address as shown on the records of the assessor of St. Louis County, Missouri. (Ord. No. 5815, § 7, 3‑20‑75)
Sec. 6‑8. Contents of development plan.
A development plan shall contain:
(a) Legal description. A legal description of the development area by metes and bounds or other definite designation;
(b) Design plan. A written general description and preliminary design plan of the proposed project showing proposed land use, landscape, and traffic circulation plans;
(c) Stages of project: A statement of the various stages, if more than one is intended, by which the development is proposed to be constructed or undertaken, and the approximate time limit for the completion of each stage, together with a legal description of the real property to be included in each stage.
(d) Property to be demolished: A statement of the existing buildings or improvements in the development area to be demolished immediately, if any;
(e) Property not to be demolished: A statement of existing building or improvements in the development area not to be demolished immediately, if any and the approximate period of time during which the demolition, if any, of each building or improvement is to take place;
(f) Building renovation: A statement of the proposed improvements, if any, to each building not to be demolished immediately, any proposed repairs or alterations to such buildings, and the approximate period of time during which such improvements, repairs or alterations are to be made;
(g) New construction: A statement of the type, number and character of each new industrial, commercial, residential or other building or improvement to be erected or made;
(h) Open space: A statement of those portions, if any, of the development area which may be permitted or will be required to be left as open space, the use to which each such open space is to be put, the period of time each such open space will be required to remain an open space and the manner in which it will be improved and maintained, if at all;
(i) Property for public agencies: A statement of those portions, if any, of the development area which are proposed to be sold, donated, exchanged or leased to any public agency or political subdivision of the federal, state or local government, and an outline of the terms of such proposed sale, donation, exchange or lease;
(j) Zoning changes: A statement of the proposed changes, if any, in zoning ordinances or maps, necessary or desirable for the development, and its protection against blighting influences;
(k) Street changes: A statement of the proposed changes, if any, in streets or street levels, any proposed street closings, and any changes which would have to be made to streets adjoining or near the development area including a plan for financing these changes;
(l) Documentation of needed tax abatement: A detailed statement of the tax abatement proposed by the developer, if any, together with a financial summary of why the proposed abatement is critical to the ultimate success of the redevelopment proposal;
(m) Acquisition plan: A statement of the anticipated methods of acquiring all of the needed property within the development area, including:
(1) A legal description of all property already owned or held under contract,
(2) Written evidence of the status of the negotiations for all property anticipated to be acquired under private negotiations, and
(3) Legal description of all property, if any, or where known, to be acquired by eminent domain;
(n) Eminent domain: A statement on the proposed use of eminent domain, including:
(1) The reasons why the aid of the city is sought for this purpose,
(2) Written evidence to document good faith attempts to purchase the property in question by private negotiation, and
(3) The determination if the corporation desires to have the city transfer the right of eminent domain to them, or to have the city itself acquire by eminent domain the property in question and then transfer it to the corporation;
(o) Financing: A detailed statement of the proposed method of financing the development, including evidence satisfactory to the city council that sufficient funds or securities are immediately available and will be used for normal equity financing of the entire development proposed and will remain available until the particular development is started, and evidence satisfactory to the city council that the amount necessary to acquire and clear the land involved is available from such equity and/or other funds:
(1) Such evidence must be reconfirmed annually until completion of the project by a certificate filed with the comptroller,
(2) Such evidence shall include any commitments for leases or purchases but, in any event, shall include tangible evidence of marketability of the development proposed,
(3) Such evidence shall be necessary for both interim (construction) financing and permanent financing;
(p) Management: A state of the persons who it is proposed will be active in or associated with the management of the development project during a period of at least one year from the date of the approval of the development plan;
(q) Public property: A statement listing any real property in public use and belonging to the city, county, state or any political subdivision thereof, together with the consent of such authority to the acquisition of such property;
(r) Disclosure of Interest: A statement disclosing the names, addresses, social security numbers, title of position (if any), and nature and extent of the interest of the officers, partners (general and limited), principal members, shareholders, and/or other investors having an interest of more than ten (10) per cent in the redevelopment corporation, and any other entities which may be primarily associated with the redevelopment corporation for purposes of administering or implementing the development plan, and any present or future assignees of the above;
(s) Sign control and architectural finishes: A statement outlining the standards and criteria other than are found in city ordinances that will be used to regulate signs in the development area, and a description of the major architectural materials to be used in conjunction with any new construction or rehabilitation;
(t) Assignment of development plan: A statement providing for appropriate control over the right of assignment of a development plan to any other entity in order that the city council will be assured that the intention and purpose of the development project will, in fact, be carried out;
(u) Nondiscrimination, use and occupancy: A statement that the corporation agrees for itself and its successors and assigns and every successor in interest to the property affected by the development plan, or any part thereof, not to discriminate upon basis of race, sex, color, creed or national origin or in the use or occupancy of the property or any improvements erected or to be erected thereon, or any part thereof;
(v) Nondiscrimination, employment. A statement that the corporation for itself and its successors and assigns during the construction of improvements contained in the development plan agrees not to discriminate against any employee or applicant for employment because of race, sex, creed, color or national origin;
(w) Other information: The development plan, and any application for approval thereof, may also contain such other statements or exhibits as may be deemed relevant by the commission, the city council, or by the proposer thereof;
(x) Tax agreements by corporations: In the course of considering any development plan for approval, the commission and the city council shall give particular recognition to any agreement, in writing, on behalf of the corporation presenting such plan that, notwithstanding the provisions of the Missouri Redevelopment Corporations Law, it will make payments in lieu of real property taxes to the appropriate taxing bodies in such amount which, together with the real property taxes to be paid on the land for each year of the first ten (10) years, will equal at least the total real property taxes assessed on the land and improvements during the tax year immediately preceding the date of the approval of the development plan, and that it will make payments in lieu of taxes assessed by any special business district established under the provisions of the Revised Statutes of Missouri, as amended, and containing all or part of the proposed development area within its boundaries. (Ord. No. 5815, § 8, 3‑ 20‑75)
Sec. 6‑9. Prerequisites to amendment of Plan.
No amendment to a development plan shall be approved, unless and until an application therefor has been filed with the administrative director/city clerk by the proponents thereof containing those portions of the statements and information required by section 6‑8, relevant to the proposed amendment, and unless and until the commission shall have made the recommendations required by section 6‑10. (Ord. No. 5815, § 9, 3‑20‑75; Ord. No. 6060, § 1,12‑9‑76)
Sec. 6‑10. Basis of recommendation for development plan.
A development plan shall not be recommended for approval by the commission until and unless the commission shall determine:
(a) Compliance with master plan: That the development plan is in accord with the master plan of the city;
(b) Necessity of tax abatement: That the tax abatements requested are justifiable to the extent of the commission's knowledge to permit the redevelopment to be accomplished at a net cost in appropriate relation to the fair market values for similar projects in St. Louis County;
(c) Methods of acquisitions: That the statement of the anticipated methods of acquisition seems reasonable and complete;
(d) Financial package: That the proposed method of financing the development is complete and adequate to the extent of the commission's knowledge;
(e) Design plan: That the design plan, including the proposed
land use, landscape, and traffic circulation plans, conform to the provisions
of the zoning ordinance of the City of
(f) Size of area: That the area is of sufficient size to allow its development in an efficient and economically satisfactory manner;
(g) Stages of plan: That the various stages, if any, by which the development is proposed to he constructed or undertaken as stated in the development plan, are practicable and in the public interest;
(h) Adequacy of public facilities: That public facilities, including but not limited to school, fire, water, sewer, police, transportation, park, playground and recreation, are presently adequate, or will be adequate at the time that the development is ready for use, to service the area;
(i) Zoning, street changes: That the proposed changes if any, in zoning ordinances or maps and in streets and street levels, or any proposed street closing, are necessary or desirable for the development and its protection against blighting influence, and for the city as a whole; and/or for the same reasons whether or not other such changes not originally a part of the development plan should be recommended as a condition of approval;
(j) Additional Conditions: That it may be necessary that additional changes and/or conditions should be recommended to the city council to make the development plan more consistent to good planning practices, to insure the proposed development will be visually and functionally compatible with existing and proposed land uses in the surrounding area, and in other ways to control the proposed development so that it is clearly in the public interest and general welfare of the City of Kirkwood.
The determinations and recommendations of the commission shall be summarized in a report to be submitted to the city council. (Ord. No. 5815, § 10, 3‑20‑75)
Sec. 6‑11. Overlapping development plans.
No other development plan which involves all or any part of the real property described in a previously filed development plan shall be considered by the council or commission until the council's decision has been made to accept or reject the previous plan, unless, however, notice of intent to file such an additional plan is given in writing to the city administrator within not more than thirty (30) days following the date of the published notice of the filing of the original plan, and provided that the additional plan is officially filed within not more than ninety (90) days from the same publication date. The notice of intent to file an additional development plan shall not preclude the initiation of the commission review procedure on a previously filed plan.
In the event of more than one development plan being validly filed for all or part of the same real property the report of the commission to the council shall include the following considerations in addition to the requirements found in section 6‑10 for each plan:
(a) Comparative analysis: The commission shall develop a comparative analysis of the overlapping development plans based on the determinations made in concurrence with section 6‑10;
(b) Specific recommendation(s): The commission shall also recommend which development plan, if any, is best suited to the public interest, and shall justify such recommendation(s) in detail from the conclusions drawn from the above comparative analysis. (Ord. No. 5815, § 11, 3‑20‑75)
Sec. 6‑12. Filing commission report council action.
Upon the completion of the report of the commission the following procedures shall direct council action:
(a) The report of the commission upon each development plan shall be filed with the city administrator. The council shall thereupon provide for a public hearing upon such development plan and cause notice of the hearing thereon to be given at least one publication in a newspaper printed, published or of general circulation in the City of Kirkwood. The publication of said notice shall be at least fifteen (15) days prior to the date of the hearing. The council shall, in addition, give notice by first class mail to all property owners as shown by the tax records of the city within the development area and with three hundred (300) feet of the boundaries of the development area for which the application is filed.
(b) If the council approves the development plan, it shall enact an appropriate ordinance containing the findings and declarations enumerated in section 6‑13, and said ordinance shall authorize the mayor and city administrator to enter into a contract on behalf of the city with the proposer or proposers of the plan, said contract to contain the provisions as embodied in the plan and a provision that the terms, conditions or provisions of the contract can neither be modified nor eliminated except by mutual agreement between the city and the proposer or proposers of the plan; provided, however, that no such contract shall be construed as an enlargement of the authority conferred upon the city by the Urban Redevelopment Law, Chapter 353, Revised Statutes of Missouri, as amended. (Ord. No. 5815, § 12, 3‑20‑75)
Sec. 6‑13. Findings in declarations of council.
In any ordinance approving a development plan, the council shall make the following findings and declarations;
(a) That approval of the development plan and construction of the development project are necessary for the preservation of the public peace, property, health, safety, morals and welfare.
(b) That liquidated damages will be assessed in favor of the city if the corporation fails to complete the development project within the time agreed upon by the parties.
(c) That a performance bond will be filed with the comptroller which, in no event, shall be less than ten (10%) per cent of the cost of the development project as defined in section 6A.
(d) That the use of the area included in the approved development plan is limited to a period of not less than twenty‑five (25) years.
(e) That certain additional conditions, exceptions, or restrictions may be judged by the council as necessary to make the development plan more consistent with the public interest and general welfare of the city. (Ord. No. 5815, § 13, 3‑20‑75)
Sec. 6‑l4. Monitoring of compliance, time extensions, and certification of completion.
In order to monitor the progress and compliance of an approved development plan beyond the normal review processes of city departments the following procedures shall be followed:
(a) Investigation: It shall be the duty of the director of community development (or alternate department head designated by the city council), after a development plan has been approved by the city council, to investigate and determine from time to time during construction of the development project whether the corporation undertaking such development plan is fully complying with the provisions thereof, in the manner and at the time fixed therein for the performance of the various stages thereof.
(b) Reports: It shall also be the duty of the director of community development (or alternate department head designated by the city council) to make reports from time to time during the construction of the development project, and at least every six (6) months, to the city council regarding each development plan, and also as to compliance with the provisions of this chapter by any corporation operating thereunder. The corporation may request certification of the completion of the stages in an approved development plan. Upon receipt of such certification the city council may instruct the reduction of the amount of the performance bond so that it is proportional to the remaining development cost.
(c) Time extension: The city council may, upon the recommendation of the director of community development (or alternate department head designated by the city council) and for good cause shown, grant to a corporation operating under an approved development plan an extension of time in which to complete the development project, or any step or portion thereof.
(d) Recommendation of certification: When a corporation operating under an approved development plan shall have completed the development project in accordance with the provisions of the development plan, in the manner and at the time fixed therein for the performance of the various stages thereof, the director of community development (or alternate department head designated by the city council), upon the written request of such corporation, shall conduct an investigation, and, if the director of community development (or alternate department head designated by the city council) determines that the projects has been so completed, it shall recommend to the city council that a certificate of full compliance be issued to such corporation.
The investigations and reports of the director of community development (or alternate department head designated by the city council) required by subsections (a) and (b) of this section shall not be required or made subsequent to the date of issuance of such certificate; provided, however, that every such corporation shall render annually to the comptroller, during the existence of the tax relief period provided in section 6‑20, three (3) copies of its financial report for the preceding year, which report shall disclose the earnings of the corporation and the disposition of any net earnings in excess of those provided for under Section 6‑15, and the interest rate on income debentures, bonds, notes or other evidences of debt of the corporation; thereupon the comptroller shall review the financial report of the corporation and thereafter he shall file with the city council and the director of community development (or alternate department had designated by the city council) the said financial report, accompanied by his opinion, as to compliance by the corporation with section 6‑15 and 6‑16. (Ord. No. 5815, § 14, 3‑20‑75)
Sec. 6‑15. Financial restrictions on corporation.
A private redevelopment corporation implementing an approved development plan shall be subject to the following financial restrictions:
(a) Obligations, interest thereon. No corporation whose development plan has been approved by the council shall:
(1) Issue income debentures, bonds, notes or other evidences of debt bearing or paying an interest rate in excess of that permitted by state statute.
(2) Pay any interest on its income debentures or dividends on its stock, regardless of class or performance, during any dividend year unless there shall exist at the time of such payment no default under any amortization requirements with respect to its indebtedness, nor unless all accrued interest taxes and other public charges shall have been duly paid or reserves set up for the payment thereof, and adequate reserves provided for depreciation, obsolescence, and other proper reserves.
(b) Net earnings. The net earnings of a corporation whose development plan has been approved by the council shall be limited to an amount not to exceed eight per cent (8%) per annum or the maximum percentage allowed by Chapter 353 of the Revised Statutes of Missouri, as amended, whichever is higher, of the cost to such corporation of the development project including the cost of the land or the balance of such total cost of the project as reduced by amortization payments; provided that the net earnings derived from any redevelopment project shall in no event exceed a sum equal to eight per cent (8%) per annum or the maximum percentage allowed by Chapter 353 of the Revised Statutes of Missouri, as amended, whichever is higher, upon the entire cost thereof. Such net earnings shall be computed after deducting from gross earnings the following:
(1) All reasonable costs and expenses of maintenance and operation.
(2) Amounts paid for taxes, assessing, insurance premiums and other similar charges.
(3) An annual amount sufficient to amortize the cost of the entire project at the end of the period, which shall be not more than sixty (60) years from date of completion of the project. (Ord. No. 5815, § 15, 3‑20‑75)
Sec. 6‑16. Disposition of surplus earnings of corporation.
The development plan may, upon approval of the council, contain provisions that the surplus earnings provided under section 6‑15:
(a) May be held by the corporation as a reserve for maintenance of such rate of return in the future and may be used by the corporation to offset any deficiency in such rate of return which may have occurred in prior years; or
(b) May be used to accelerate the amortization payments; or
(c) May be used for the enlargement of the project; or
(d) May be used for reduction in rentals therein; provided that, at the termination of the tax relief granted pursuant to section 6‑20, the urban redevelopment corporation shall make a strict accounting of surplus earnings and shall turn over to the city any excess of such surplus earnings not previously used as provided in (a), (b), (c), or (d) of this section. (Ord. No. 5815, § 16, 3‑20‑75)
Sec. 6‑17. Insurance companies as redevelopment corporations.
An life insurance company operating under this chapter shall be limited in its net earnings derived exclusively from the ownership or operation of any development project on real property owned by, or leased to any such life insurance company and constructed pursuant to a development plan to an amount not to exceed eight per cent (8%) per annum or the maximum percentage allowed by Chapter 353 of the Revised Statutes of Missouri, as amended, whichever is higher, upon the entire cost thereof after setting aside the reserves required in section 6‑18; provided, however, that any surplus earnings in excess of such rate shall in the discretion of the city council be held as provided in section 6‑16.
In each such case, such net earnings shall be computed according to standard accounting practices. (Ord. No. 5815, § 17, 3‑20‑75)
Sec. 6‑18. Accounting practices.
Every corporation operating under this chapter shall establish and maintain depreciation, obsolescence and other reserves, also surplus and other accounts, including a reserve for the payment of taxes, according to recognized standard accounting practices. (Ord. No. 5815, § 18, 3‑20‑75)
Sec. 6‑19. Powers of redevelopment corporation.
(a) Acquisition of property. A corporation may acquire real property or secure options in its own name, or in the name of nominees, and it may acquire real property by gift, grant, lease, purchase or otherwise.
(b) Encumbrance of property. A corporation may borrow funds and secure the repayment thereof by mortgage, which shall contain reasonable amortization provisions and shall be a lien upon no other real property except that forming the whole or a part of a single development area. Any mortgage on the real property in a development area, or any part thereof, may create a first lien or a second or junior lien, upon such real property.
(c) Disposal of property. A corporation may sell or otherwise dispose of any or all of the real property acquired by it for the purpose of a redevelopment project. The ordinance approving any development plan, and any contract entered into pursuant thereto, may provide that in the event of the sale or other disposition of real property of the corporation by reason of the foreclosure of any mortgage or other lien through insolvency or bankruptcy proceedings or by order of any court of competent jurisdiction, or by voluntary transfer or otherwise, the partial tax relief provided under section 6‑20 of this chapter shall inure to any purchaser of such real property so long as such purchaser shall continue to use, operate and maintain such real property in accordance with the provisions of the development plan. If such ordinance and contract do not so provide and the purchaser of such real property shall continue to use, operate and maintain such real property in accordance with the provisions of the development plan, the council may grant the partial tax relief provided in section 6‑20. If such real property shall be used for a purpose different than that described in the development plan, or if the purchaser does not desire the property to continue under the development plan, or if the ordinance approving the plan does not provide for continuing tax relief and the city council shall refuse to grant the purchaser continuing tax relief, the real property shall be assessed for ad valorem taxes upon the full true value of the real property and may be owned and operated free from any of the conditions, restrictions or provisions of this chapter. (Ord. No. 5815, § 19, 3‑20‑75)
Sec. 6‑20. Tax relief for redevelopment corporations.
(a) Full exemption. The real property of a corporation located in the boundaries of an area for which that corporation's development plan has been approved shall not be subject to assessment or payment of general ad valorem taxes imposed by the city or by the State or any political subdivision thereof for a period of ten (10) years after the date upon which such development plan was approved, except to such extent and in such amount as may be imposed upon such real property during such period measured solely by the amount of the assessed valuation of the land, exclusive of improvements included within the development plan and owned by such corporation, as was determined by the assessor of St. Louis County, for taxes due and payable thereon during the calendar year preceding the calendar year during which the development plan was approved; and the amounts of such tax assessments shall not be increased by the assessor during such ten‑year period so long as the real property is owned by a corporation and used in accordance with a development plan authorized by the city council.
(b) Property already exempt. In the event, however, that any such real property was tax exempt immediately prior to approval of the development plan, the council shall immediately request such county assessor to promptly assess such land, exclusive improvements in accordance with the provisions of section 10 of the Urban Redevelopment Corporations Law, Chapter 353 of the Revised Statutes of Missouri, as amended. The amount of such assessed valuation so fixed by the county assessor shall not be increased during the ten-year period next following the date upon which such corporation acquired ownership thereof, so long as such real property is owned by such corporation and used in accordance with the development plan authorized and approved by the city council.
(c) Partial exemption. For the next ensuing period of fifteen (15) years, general ad valorem taxes imposed by the city or by the state or any political subdivision thereof upon such real property shall be measured by the assessed valuation thereof as determined by the county assessor upon the basis of not to exceed fifty per cent (50%) of the true value of such real property, including any improvements thereon, nor shall such valuations be increased over fifty per cent (50%) of the true value of such real property from year to year during the period of fifteen (15) years, so long as such real property is owned by a corporation and used in accordance with an authorized development plan.
(d) Full assessment. After such periods, totaling twenty‑ five (25) years, such real property shall be subject to assessment and payment of all ad valorem taxes based on the full true value of the real property, and shall be owned and operated by the corporation free from the conditions, restrictions and provisions of this chapter, the approving ordinance and any rule or regulation adopted pursuant to this chapter, provided that at any time after the completion of the development project, as authorized by ordinance, the corporation may elect to pay a sum equivalent to the amount of the general ad valorem taxes, not including interest or penalties, which would have been levied on the full value of the property from the date of the completion of the project, and from that date such real property shall be owned and operated by the corporation free from the conditions, restrictions and provisions of this chapter, the approving ordinance and any rule or regulation adopted pursuant to this chapter. (Ord. No. 5815, § 20, 3‑20‑75)
Sec. 6‑21. Certificate of public convenience ad necessity for corporation to acquire property by eminent domain.
If the corporation proposing a development plan seeks to acquire by eminent domain in its own name all or any part of the real property described in the development plan, the council shall, by the ordinance approving such plan, determine that the public convenience and necessity will be served by the development plan and redevelopment project and shall grant to such corporation a certificate of public convenience and necessity authorizing and empowering such corporation to acquire by the exercise of eminent domain such real property in fee simply or other estate; provided that such real property shall be devoted to the purposes and used subject to the conditions described in the development plan. Such corporation may thereafter exercise the power of eminent domain in the manner provided for corporations in the Revised Statutes of Missouri, as amended, or it may exercise the power of eminent domain in the manner provided by any other applicable statutory provision. Property already devoted to a public use may be acquired in like manner, provided that no real property belonging to the city or to the state or any political subdivision thereof may be acquired without its consent. (Ord. No. 5815, § 21, 3‑20‑75)
Sec. 6‑22. Deposit when city acquires property for corporation.
(a) Amount. If the corporation proposing a development
plan seeks to have the city acquire by eminent domain or otherwise and
thereafter clear all or any part of the real property described in the
development plan, such corporation shall, at the time hereinafter provided,
deposit in escrow with the comptroller, subject to the provisions of this
chapter, a sum of money in cash or negotiable federal or municipal securities
of a cash market value equal to the cost estimated by the comptroller to be
incurred by the city in acquiring, or if the clearance thereof is also sought,
in acquiring and clearing such real property. When such deposit is represented
by securities, the city, when it becomes necessary to convert said deposit to
cash, shall immediately sell the same at the current market price thereof at
private sale for cash and apply the proceeds to the cost of such real property.
(b) "Cost" defined. By this term "cost", as used in this section and section 6‑23, is meant all expenditures by the city, including what is paid for such real property and the clearance thereof, appraisal, abstract, title and recording fees, court costs, witness fees, fees of the commission, the cost of legal services by the city attorney and all other expenses of acquiring and clearing such property.
(c) Custody of securities. All securities deposited in escrow with the comptroller shall be promptly placed by him in a safe deposit box under the joint control of the comptroller and administrative director/city clerk. (Ord. No. 5815, § 22, 3‑20‑75; Ord. No. 6060, § 1, 1-9‑76)
Sec. 6‑23. Acquisition, resale of property by city.
(a) After the council shall have approved
any development plan calling for the acquisition by the city by the exercise of
the power of eminent domain or otherwise of all or any part of the real
property described therein, the corporation submitting such plan shall deposit
in escrow with the comptroller the case amounts or securities required by
section 6‑22. Thereafter, the
council shall determine by ordinance whether the real property described in
such plan constitutes a blighted area as defined in this chapter and should in
the public interest be redeveloped, and the council may provide that the city
acquire such property and procure the fee simple title thereto by purchase, by
the exercise of the power of eminent domain or by other means. The payment therefor by the city, in whole or
in part, may be made out of the deposit required under section 6-22 or out of
the general funds or out of the proceeds of general obligation bonds. The city shall then proceed to acquire such
real property in accordance with such ordinance. Whenever any real property,
land, easement, right of way, use or right of any character is taken or damaged
by the city for such purpose, just compensation shall be paid to the owner
thereof in accordance with the laws of the State of
(b) After acquiring the title to such real property, the city shall sell such real property and all interest therein for the purpose of redevelopment, as hereinafter provided, subject to such restrictions, exceptions and conditions as may be recommended by the commission or which the council deems to be in the public interest.
(c) Each sale shall be approved by the council. The deposit under section 6‑22 shall be applied against the cost defined under section 6‑22(b) and the city shall give due credit therefor:
(1) If such deposit is less than the said cost when such cost is determined after purchase, or by action of a condemnation jury, or otherwise, as the case may be, then said corporation shall make an additional deposit with the comptroller, upon ten (10) days written notice from the comptroller, of a sum of money in cash equal to such additional acquisition cost as so determined, and failing to make such additional deposit, the city may, at its option, thereupon repeal the ordinance providing for the acquisition of such real property and dismiss the pending condemnation proceedings, if any. In such last event, the expense of such uncompleted acquisition and condemnation proceedings, if any, including the cost of legal services by the city attorney, shall be charged to and paid by the corporation so making such deposit and the amount therefor shall be withheld by the comptroller from the funds or securities deposited in escrow, and applied to [by] him to the payment of such expenses. The balance of such funds and securities so deposited in escrow shall then he returned to the owner thereof.
(2) If such deposit exceeds such cost, said excess shall be refunded to said corporation. (Ord. No. 5815, § 23, 3‑20‑75)
Sec. 6‑24. Remedies for failure to follow plan.
(a) Proceedings. Whenever any person or corporation operating under an approved development plan does not substantially comply with the development plan within the time limits and in the manner for the completion of each stage thereof as therein stated, reasonable delays caused by unforeseen circumstances beyond their control alone excepted, or shall do, permit to be done, or fail, or omit to do anything contrary to or required of it by this chapter, or shall be about so to do, permit to be done, or fail or omit to have done, then any such fact may be certified by the city council to the city attorney who may and is hereby authorized to commence a proceeding in the circuit court in the name of the city to have such action, failure or omission or threatened action or omission stopped, prevented or rectified by injunction or otherwise, or in the name of the city to bring action for damages against the corporation for breach of any of the provisions of the development plan; provided that in the event the council shall determine that a corporation has abandoned construction before completion of the project in accordance with the terms of an approved development plan, the real property included in such plan shall from that d