99.918. Definitions.
Definitions.
99.918. As used in sections 99.915 to 99.980, unless the contextclearly requires otherwise, the following terms shall mean:
(1) "Authority", the downtown economic stimulus authority for amunicipality, created pursuant to section 99.921;
(2) "Baseline year", the calendar year prior to the adoption of anordinance by the municipality approving a development project; provided,however, if economic activity taxes or state sales tax revenues, frombusinesses other than any out-of-state business or businesses locating inthe development project area, decrease in the development project area inthe year following the year in which the ordinance approving a developmentproject is approved by a municipality, the baseline year may, at the optionof the municipality approving the development project, be the yearfollowing the year of the adoption of the ordinance approving thedevelopment project. When a development project area is located within acounty for which public and individual assistance has been requested by thegovernor pursuant to Section 401 of the Robert T. Stafford Disaster Reliefand Emergency Assistance Act, 42 U.S.C. 5121 et seq., for an emergencyproclaimed by the governor pursuant to section 44.100, RSMo, due to anatural disaster of major proportions that occurred after May 1, 2003, butprior to May 10, 2003, and the development project area is a centralbusiness district that sustained severe damage as a result of such naturaldisaster, as determined by the state emergency management agency, thebaseline year may, at the option of the municipality approving thedevelopment project, be the calendar year in which the natural disasteroccurred or the year following the year in which the natural disasteroccurred, provided that the municipality adopts an ordinance approving thedevelopment project within one year after the occurrence of the naturaldisaster;
(3) "Blighted area", an area which, by reason of the predominance ofdefective or inadequate street layout, unsanitary or unsafe conditions,deterioration of site improvements, improper subdivision or obsoleteplatting, or the existence of conditions which endanger life or property byfire and other causes, or any combination of such factors, retards theprovision of housing accommodations or constitutes an economic or socialliability or a menace to the public health, safety, morals, or welfare inits present condition and use;
(4) "Central business district", the area at or near the historiccore that is locally known as the "downtown" of a municipality that has amedian household income of sixty-two thousand dollars or less, according tothe last decennial census. In addition, at least fifty percent of existingbuildings in this area will have been built in excess of thirty-five yearsprior or vacant lots that had prior structures built in excess ofthirty-five years prior to the adoption of the ordinance approving theredevelopment plan. The historical land use emphasis of a central businessdistrict prior to redevelopment will have been a mixed use of business,commercial, financial, transportation, government, and multifamilyresidential uses;
(5) "Collecting officer", the officer of the municipality responsiblefor receiving and processing payments in lieu of taxes, economic activitytaxes other than economic activity taxes which are local sales taxes, andother local taxes other than local sales taxes, and, for local sales taxesand state taxes, the director of revenue;
(6) "Conservation area", any improved area within the boundaries of aredevelopment area located within the territorial limits of a municipalityin which fifty percent or more of the structures in the area have an age ofthirty-five years or more, and such an area is not yet a blighted area butis detrimental to the public health, safety, morals, or welfare and maybecome a blighted area because of any one or more of the following factors:dilapidation; obsolescence; deterioration; illegal use of individualstructures; presence of structures below minimum code standards;abandonment; excessive vacancies; overcrowding of structures and communityfacilities; lack of ventilation, light or sanitary facilities; inadequateutilities; excessive land coverage; deleterious land use or layout;depreciation of physical maintenance; and lack of community planning;
(7) "Development area", an area designated by a municipality inrespect to which the municipality has made a finding that there existconditions which cause the area to be classified as a blighted area or aconservation area, which area shall have the following characteristics:
(a) It includes only those parcels of real property directly andsubstantially benefited by the proposed development plan;
(b) It can be renovated through one or more development projects;
(c) It is located in the central business district;
(d) It has generally suffered from declining population or propertytaxes for the twenty-year period immediately preceding the area'sdesignation as a development area or has structures in the area fiftypercent or more of which have an age of thirty-five years or more;
(e) It is contiguous, provided, however that a development area mayinclude up to three noncontiguous areas selected for development projects,provided that each noncontiguous area meets the requirements of paragraphs(a) to (g) herein;
(f) The development area shall not exceed ten percent of the entirearea of the municipality; and
(g) The development area shall not include any property that islocated within the one hundred year flood plain, as designated by theFederal Emergency Management Agency flood delineation maps, unless suchproperty is protected by a structure that is inspected and certified by theUnited States Army Corps of Engineers.
This subdivision shall not apply to property within the one hundred yearflood plain if the buildings on the property have been or will be floodproofed in accordance with the Federal Emergency Management Agency'sstandards for flood proofing and the property is located in a home rulecity with more than one hundred fifty-one thousand five hundred but fewerthan one hundred fifty-one thousand six hundred inhabitants. Only thosebuildings certified as being flood proofed in accordance with the FederalEmergency Management Agency's standards for flood proofing by the authorityshall be eligible for the state sales tax increment and the state incometax increment. Subject to the limitation set forth in this subdivision,the development area can be enlarged or modified as provided in section99.951;
(8) "Development plan", the comprehensive program of a municipalityto reduce or eliminate those conditions which qualified a development areaas a blighted area or a conservation area, and to thereby enhance the taxbases of the taxing districts which extend into the development areathrough the reimbursement, payment, or other financing of developmentproject costs in accordance with sections 99.915 to 99.980 and through theexercise of the powers set forth in sections 99.915 to 99.980. Thedevelopment plan shall conform to the requirements of section 99.942;
(9) "Development project", any development project within adevelopment area which constitutes a major initiative in furtherance of theobjectives of the development plan, and any such development project shallinclude a legal description of the area selected for such developmentproject;
(10) "Development project area", the area located within adevelopment area selected for a development project;
(11) "Development project costs" include such costs to thedevelopment plan or a development project, as applicable, which areexpended on public property, buildings, or rights-of-ways for publicpurposes to provide infrastructure to support for a development project.Such costs shall only be allowed as an initial expense which, to berecoverable, must be included in the costs of a development plan ordevelopment project, except in circumstances of plan amendments approved bythe Missouri development finance board and the department of economicdevelopment. Such infrastructure costs include, but are not limited to,the following:
(a) Costs of studies, appraisals, surveys, plans, and specifications;
(b) Professional service costs, including, but not limited to,architectural, engineering, legal, marketing, financial, planning, orspecial services;
(c) Property assembly costs, including, but not limited to,acquisition of land and other property, real or personal, or rights orinterests therein, demolition of buildings, and the clearing and grading ofland;
(d) Costs of rehabilitation, reconstruction, repair, or remodeling ofexisting public buildings and fixtures;
(e) Costs of construction of public works or improvements;
(f) Financing costs, including, but not limited to, all necessaryexpenses related to the issuance of obligations issued to finance all orany portion of the infrastructure costs of one or more developmentprojects, and which may include capitalized interest on any suchobligations and reasonable reserves related to any such obligations;
(g) All or a portion of a taxing district's capital costs resultingfrom any development project necessarily incurred or to be incurred infurtherance of the objectives of the development plan, to the extent themunicipality by written agreement accepts and approves such infrastructurecosts;
(h) Payments to taxing districts on a pro rata basis to partiallyreimburse taxes diverted by approval of a development project;
(i) State government costs, including, but not limited to, thereasonable costs incurred by the department of economic development, thedepartment of revenue and the office of administration in evaluating anapplication for and administering state supplemental downtown developmentfinancing for a development project; and
(j) Endowment of positions at an institution of higher educationwhich has a designation as a Carnegie Research I University including anycampus of such university system, subject to the provisions of section99.958.
In addition, economic activity taxes and payment in lieu of taxes may beexpended on or used to reimburse any reasonable or necessary costs incurredor estimated to be incurred in furtherance of a development plan or adevelopment project;
(12) "Economic activity taxes", the total additional revenue fromtaxes which are imposed by the municipality and other taxing districts, andwhich are generated by economic activities within each development projectarea, which are not related to the relocation of any out-of-state businessinto the development project area, which exceed the amount of such taxesgenerated by economic activities within such development project area inthe baseline year plus, in development project areas where the baselineyear is the year following the year in which the development project isapproved by the municipality pursuant to subdivision (2) of this section,the total revenue from taxes which are imposed by the municipality andother taxing districts which is generated by economic activities within thedevelopment project area resulting from the relocation of an out-of-statebusiness or out-of-state businesses to the development project areapursuant to section 99.919; but excluding personal property taxes, taxesimposed on sales or charges for sleeping rooms paid by transient guests ofhotels and motels, licenses, fees, or special assessments. If a retailestablishment relocates within one year from one facility to anotherfacility within the same county and the municipality or authority findsthat the retail establishment is a direct beneficiary of developmentfinancing, then for purposes of this definition, the economic activitytaxes generated by the retail establishment shall equal the totaladditional revenues from taxes which are imposed by the municipality andother taxing districts which are generated by the economic activitieswithin the development project area which exceed the amount of taxes whichare imposed by the municipality and other taxing districts which aregenerated by economic activities within the development project areagenerated by the retail establishment in the baseline year;
(13) "Gambling establishment", an excursion gambling boat as definedin section 313.800, RSMo, and any related business facility including anyreal property improvements which are directly and solely related to suchbusiness facility, whose sole purpose is to provide goods or services to anexcursion gambling boat and whose majority ownership interest is held by aperson licensed to conduct gambling games on an excursion gambling boat orlicensed to operate an excursion gambling boat as provided in sections313.800 to 313.850, RSMo;
(14) "Major initiative", a development project within a centralbusiness district that:
(a) Promotes tourism, cultural activities, arts, entertainment,education, research, arenas, multipurpose facilities, libraries, ports,mass transit, museums, or conventions, the estimated cost of which is inexcess of the amount set forth below for the municipality, as applicable;or
(b) Promotes business location or expansion, the estimated cost ofwhich is in excess of the amount set forth below for the municipality, andis estimated to create at least as many new jobs as set forth below withinthree years of such location or expansion:Population of Estimated New JobsMunicipality Project Cost Created300,000 or more $10,000,000 at least 100100,000 to 299,999 $5,000,000 at least 5050,001 to 99,999 $1,000,000 at least 1050,000 or less $500,000 at least 5;
(15) "Municipality", any city, village, incorporated town, or anycounty of this state established on or prior to January 1, 2001, or acensus-designated place in any county designated by the county for purposesof sections 99.915 to 99.1060;
(16) "New job", any job defined as a new job pursuant to subdivision(11) of section 100.710, RSMo;
(17) "Obligations", bonds, loans, debentures, notes, specialcertificates, or other evidences of indebtedness issued by the municipalityor authority, or other public entity authorized to issue such obligationspursuant to sections 99.915 to 99.980 to carry out a development project orto refund outstanding obligations;
(18) "Ordinance", an ordinance enacted by the governing body of anymunicipality or an order of the governing body of such a municipal entitywhose governing body is not authorized to enact ordinances;
(19) "Other net new revenues", the amount of state sales taxincrement or state income tax increment or the combination of the amount ofeach such increment as determined under section 99.960;
(20) "Out-of-state business", a business entity or operation that hasbeen located outside of the state of Missouri prior to the time itrelocates to a development project area;
(21) "Payment in lieu of taxes", those revenues from real property ineach development project area, which taxing districts would have receivedhad the municipality not adopted a development plan and the municipalitynot adopted development financing, and which would result from levies madeafter the time of the adoption of development financing during the time thecurrent equalized value of real property in such development project areaexceeds the total equalized value of real property in such developmentproject area during the baseline year until development financing for suchdevelopment project area expires or is terminated pursuant to sections99.915 to 99.980;
(22) "Special allocation fund", the fund of the municipality or itsauthority required to be established pursuant to section 99.957 whichspecial allocation fund shall contain at least four separate segregatedaccounts into which payments in lieu of taxes are deposited in one account,economic activity taxes are deposited in a second account, other net newrevenues are deposited in a third account, and other revenues, if any,received by the authority or the municipality for the purpose ofimplementing a development plan or a development project are deposited in afourth account;
(23) "State income tax increment", up to fifty percent of theestimate of the income tax due the state for salaries or wages paid to newemployees in new jobs at a business located in the development project areaand created by the development project. The estimate shall be a percentageof the gross payroll which percentage shall be based upon an analysis bythe department of revenue of the practical tax rate on gross payroll as afactor in overall taxable income;
(24) "State sales tax increment", up to one-half of the incrementalincrease in the state sales tax revenue in the development project area.In no event shall the incremental increase include any amounts attributableto retail sales unless the Missouri development finance board and thedepartment of economic development are satisfied based on informationprovided by the municipality or authority, and such entities have made afinding that a substantial portion of all but a de minimus portion of thesales tax increment attributable to retail sales is from new sources whichdid not exist in the state during the baseline year. The incrementalincrease for an existing facility shall be the amount by which the statesales tax revenue generated at the facility exceeds the state sales taxrevenue generated at the facility in the baseline year. The incrementalincrease in development project areas where the baseline year is the yearfollowing the year in which the development project is approved by themunicipality pursuant to subdivision (2) of this section shall be the statesales tax revenue generated by out-of-state businesses relocating into adevelopment project area. The incremental increase for a Missouri facilitywhich relocates to a development project area shall be the amount by whichthe state sales tax revenue of the facility exceeds the state sales taxrevenue for the facility in the calendar year prior to relocation;
(25) "State sales tax revenues", the general revenue portion of statesales tax revenues received pursuant to section 144.020, RSMo, excludingsales taxes that are constitutionally dedicated, taxes deposited to theschool district trust fund in accordance with section 144.701, RSMo, salesand use taxes on motor vehicles, trailers, boats and outboard motors andfuture sales taxes earmarked by law;
(26) "Taxing district's capital costs", those costs of taxingdistricts for capital improvements that are found by the municipalgoverning bodies to be necessary and to directly result from a developmentproject; and
(27) "Taxing districts", any political subdivision of this statehaving the power to levy taxes.
(L. 2003 H.B. 289, A.L. 2004 S.B. 1331, A.L. 2005 H.B. 431)