Part 42 Urban Renewal7-15.4201 LOCAL GOVERNMENT 824
Part 42
Urban Renewal
7-15-4201. Short title. This part and part 43 shall be known and maybe
cited as the "Urban Renewal Law'.
History: En. Sec. 20, CIS 195, L 1959; R C.M.1947,11-3920.
Cross -References
"School district" — community college dis-
trict, 20.15.403.
7-15-4202. Existence of blighted areas and resulting problems —
statement of policy. It is hereby found and declared:
(1) that blighted areas which constitute a serious and growing menace,
injurious to the public health, safety, morals, and welfare of the residents of
the state, exist in municipalities of the state;
(2) that the existence of such areas:
(a) contributes substantially and increasingly to the spread of disease and
crime and depreciation of property values;
(b) constitutes an economic and social liability;
(c) substantially impairs or arrests the sound growth of municipalities;
(d) retards the provision of housing accommodations;
(e) aggravates traffic problems; and
(f) substantially impairs or arrests the elimination of traffic hazards and
the improvement of traffic facilities; and
(3) that the prevention and elimination of such areas is a matter of state
policy and state concern in order that the state and its municipalities shall
not continue to be endangered by areas which are focal centers of disease,
promote juvenile delinquency, are conducive to fires, are difficult to police and
to provide police protection for, and, while contributing little to the tax income
of the state and, its municipalities, consume an excessive proportion of its
revenues because of the extra services required for police, fire, accident,
hospitalization, and other forms of public protection, services, and facilities.
History: Em Sec. 2, CIL 195, L 1959; R.C.M.1947,11-3902(part).
7-15-4203. Need for redevelopment and rehabilitation of blighted
areas. It is further found and declared:
(1) that certain of such blighted areas or portions thereof may require
acquisition, clearance, and disposition subject to use restrictions as provided
in this part, since the prevailing condition of decay may make impracticable
the reclamation of the area by rehabilitation;
(2) that other areas or portions thereof may, through the means provided
in this part, be susceptible of rehabilitation in such a manner that the
conditions and evils enumerated in 7-15-4202 may be eliminated, remedied,
or prevented; and
(3) that to the extent feasible salvable blighted areas should be
rehabilitated through voluntary action and the regulatory process.
History: En. See. 2, Ch. 195,1 .1959; R.C.M. 1947,11.3902(part).
7-15-4204. Interpretation. It is further found and declared:
825 HOUSING AND CONSTRUCTION 7-15.4206
(1) that the powers conferred by this part and part 43 are for public uses
and purposes for which public money may be expended and the power of
eminent domain exercised; and
(2) that the necessity in the public interest for the provisions enacted in
this part and part 43 is hereby declared as a matter of legislative determina-
tion.
History: En. Sec. 2, Ch. 195, 1-1959; R.C.M.1947,11-3902(part).
7-15-4205. Scope. Insofar as the provisions of this part and part 43 are
inconsistent with the provisions of any other law, the provisions of this part
and part 43 shall be controlling. The powers conferred by this part and part
43 shall be in addition and supplemental to the powers conferred by any other
law.
History: En. Seo.19, Ch. 195, 1. 1959; R.C.M.1947,11-3919(part).
7-15-4206. Definitions. The following terms, wherever used or referred
to in this part or part 43, shall have the following meanings unless a different
meaning is clearly indicated by the context:
(1) Agency" or "urban renewal agency" shall mean a public agency
created by 7-15-4232.
(2)h}t) is conducive to ill health,
transmission of disease, infant mortality, juvenile delinquency, and crime;
substantially impairs or arrests the sound growth of the city or its environs;
retards the provision of housing accommodations; or
i*M ty and/or is detrimental or constitutes a menace to the public
health, safety, welfare, and morals in its present condition and use, by reason
of:
(a) the substantial physical dilapidation; deterioration; con-
struction, material, and t; and/or age obsolescence dkiMbUngs or
improvements, whether residential or nonresidential;
(b) inadequate provision for ventilation, light, proper sanitary facilities,
or open spaces as determined by competent appraisers on the basis of an
examination of the building standards of the municipality;
to "fY 'at' owmt Kodwammlfb1##nd �,or,W*ftla;
(d) high density of population and overcrowding;
(e) defective or inadequate street layout;
(f) faulty lot layout in relation to size, adequacy, accessibility, or useful-
ness;
(g) excessive land coverage;
(h) unsanitary or glojdStisuts;
(i) deterioration of site;
0) diversity of ownership;
(k) tax or special assessment delinquency exceeding the fair value of the
land;
(1) defective or unusual conditions of title;
(m) improper subdivision or obsolete platting;
(n) the existence of conditions which endanger life or property by fire or
other causes; or
( mbfnatiMT1ofTe hifactors 4
7.15-4206 LOCAL GOVERNMENT
826
(3) "Bonds" shall mean any bonds, notes, or debentures (including refund-
ing obligations) herein authorized to be issued.
(4) , "Clerk" shall mean the clerk or other official of the municipality who
is the custodian of the official records of such municipality.
(5) "Federal government" shall include the United States of America or
any agency or instrumentality, corporate or otherwise, of the United States
of America.
(6) "Local governing body" shall mean the councilor other legislative body
charged with governing the municipality.
(7) "Mayor" shall mean the chief executive of a city or town.
(8) "Municipality" shall mean any incorporated city or town in the state,
(9) `Neighborhood development program" means the yearly activities or
undertakings of a municipality in an urban renewal area or areas if the
municipality shall elect to undertake activities on an annual increment basis.
(10) "Obligee" shall include any bondholder or agent or trustee for any
bondholder or lessor demising to the municipality property used in connection
with an urban renewal project or any assignee or assignees of such lessors
interest or any part thereof and the federal government when it is a party to
any contract with the municipality.
(11) "Person" shall mean any individual, firm, partnership, corporation,
company, association, joint-stock association, or school district and shall
include any trustee, receiver, assignee, or other person acting in a similar
representative capacity.
(12) "Public body" shall mean the state or any municipality, township,
board, commission, district, or any other subdivision or public body of the
state.
(13) "Public officer" shall mean any officer who is in charge of any depart -
mentor branch of the government of the municipality relating to health, fire,
building regulations, or to other activities concerning dwellings in the
municipality.
(14) Real property" shall include all lands, including improvements and
fixtures thereon, and property of any nature appurtenant thereto or used in
connection therewith and every estate, interest, right, and use, legal or
equitable, therein, including terms for years and liens by way of judgment,
mortgage, or otherwise.
( l��h't�kl'�4ti„okffis;'�u4sY�.
a
blighted area or portion thereof in accordance with an u ban renewal lan b
P y:
827 HOUSING AND CONSTRUCTION 7-15-4207
(a) carrying out plans for a program of voluntary or compulsory repair
and rehabilitation of buildings or other improvements;
(b) acquisition of real property and demolition or removal of buildings and
improvements thereon where necessary to eliminate unhealthful, unsanitary,
or unsafe conditions; lessen density; reduce traffic hazards; eliminate obsolete
or other uses detrimental to the public welfare; to otherwise remove or prevent
the spread of blight or deterioration; or to provide land for needed public
facilities;
(c) installation, construction, or reconstruction of streets, utilities, parks,
playgrounds, and other improvements necessary for carrying out in the area
the urban renewal provisions of this part; and
(d) the disposition of any property acquired in such urban renewal area
(including sale, initial leasing, or retention by the municipality itself) at its
fair value for uses in accordance with such urban renewal plan.
(17) "Urban renewal area" means a blighted area which the local govern-
ing body designates as appropriate for an urban renewal project or projects.
(18) "Urban renewal plan" means a plan, as it exists from time to time,
for one or more urban renewal areas or for an urban renewal project, which
plan:
(a) shall conform to the comprehensive plan or parts thereof for the
municipality as a whole; and
(b) shall be sufficiently complete to indicate, on a yearly basis or other-
wise:
(i) such land acquisition, demolition, and removal of structures;
redevelopment, improvements; and rehabilitation as may be proposed to be
carried out in the urban renewal area;
(ii) zoning and planning changes, if any;
(iii) land uses, maximum densities, building requirements; and
(iv) the plans relationship to definite local objectives respecting ap-
propriate land uses, improved traffic, public transportation, public utilities,
recreational and community facilities, and other public improvements.
(19) "Urban renewal project" may include undertakings or activities of a
municipality in an urban renewal area for the elimination and for the
prevention of the development or spread of blight and may involve redevelop-
ment in an urban renewal area, rehabilitation or conservation in an urban
renewal area, or any combination or part thereof in accordance with an urban
renewal plan.
History En. Sec. 1, Ch. 195, L. 1959; amd. Sec. 1, Ch. 210, L 1969, R.C.M. 1947,
11-3901(part).
7-15-4207. Prohibition against discrimination. For all of the pur-
poses of this part and part 43, no person may be subjected to discrimination
because of sex, race, creed, religion, age, physical or mental handicap, color,
or national origin.
History En. Sec. 17, Ch. 195, L. 1959; amd. Sec. 2, Ch. 38, L. 1977; R.C.M. 1947,
11-3917; amd. See.16, Ch. 253, L.1979.
Cross -References
Individual dignity, Art. II, sec. 4, Mont.
Const.
7-15-4208 LOCAL GOVERNMENT 828 829 HOUSING AND CONSTRUCTION 7-15-4216
7-15-4208. Encouragement of private enterprise. A municipality, to
the greatest extent it determines to be feasible in carrying out the provisions
of this part and part 43, shall afford maximum opportunity, consistent with
the sound needs of the municipality as a whole, to the rehabilitation or
redevelopment of the urban renewal area by private enterprise. A
municipality shall give consideration to this objective in exercising its powers
under this part and part 43, including the formulation of a workable program;
the approval of urban renewal plans (consistent with the comprehensive plan
or parts thereof for the municipality); the exercise of its zoning powers; the
enforcement of other laws, codes, and regulations relating to the use of land
and the use and occupancy of buildings and improvements; the disposition of
any property acquired, and the provision of necessary public improvements.
History: En. Sec. 3, Ch.195, L 1959; RC.M.1947,113903.
7-15-4209. Development of workable urban renewal program. (1)
A municipality, for the purposes of this part and part 43, may formulate a
workable program for utilizing appropriate private and public resources:
(a) to eliminate and prevent the development or spread of blighted areas;
(b) to encourage needed urban rehabilitation;
(c) to provide for the redevelopment of such areas; or
(d) to undertake such of the aforesaid activities or other feasible
municipal activities as may be suitably employed to achieve the objectives of
such workable program.
(2) Such workable program may include, without limitation, provision for:
(a) the prevention of the spread of blight into areas of the municipality
which are free from blight through diligent enforcement of housing, zoning,
and occupancy controls and standards;
(b) the rehabilitation of blighted areas or portions thereof by replanning,
removing congestion, providing parks, playgrounds, and other public im-
provements; by encouraging voluntary rehabilitation; and by compelling the
repair and rehabilitation of deteriorated or deteriorating structures; and
(c) the clearance and redevelopment of blighted areas or portions thereof.
History: En. Sec. 4, Ch.195, L 1959; &C.M.1947,113904.
cesslt re ulred to utilize provisions
of part Noijr„1gt#ldrglae anyo erlPiyAehft�e� conferred
upon m c p e by;4 pp r ,4 �tsatll a ter its loea governing
or
such
History: En. Sec. 5, Ch.195, L 1959; amd. Sec. 1, Ch. 38, L 1965; R C.M.1947,11-3905.
7-15-4211. Preparation of comprehensive development plan for
municipality. For the purpose of approving an urban renewal plan and other
municipal purposes, authority is hereby vested in every municipality:
(1) to prepare, to adopt, and to revise from time to time a comprehensive
plan or parts thereof for the physical development of the municipality as a
whole (giving due regard to the environs and metropolitan surroundings);
(2) to establish and maintain a planning commission for such purpose and
related municipal planning activities; and
(3) to make available and appropriate necessary funds therefor.
History: En. Sec. 6, Ch.195, I..1959; amd. Sec.2, Ch. 38, L 1965; amd. Sec. 2, Ch. 210,
L 1969; amd. Sm.18, Ch.158, L 1971; R.C.M. 1947,113906(part).
7-15-4212. Preparation of urban, renewal plan. The municipality
may itself prepare or cause to be prepared an urban renewal plan, or any
person or agency, public or private, may submit such a plan to the
municipality.
History: En. See. 6, Ch.195, L 1959; amd. Sec. 2, Ch. 38, L 1965; amd. Sm.2, Ch. 210,
L 1969; amd. Sea 18, Ch.158, I,. 1971; R C.M. 1947,113906(part).
7-15-4213. Review ofurban renewal plan by planning commission.
(1) Prior to its approval of an urban renewal project, the local governing body
shall submit the urban renewal project plan to the planning commission of
the municipality for review and recommendations as to its conformity with
the comprehensive plan or parts thereof for the development of the
municipality as a whole.
(2) The planning commission shall submit its written recommendations
with respect to the proposed urban renewal plan to the local governing body
within 60 days after receipt of it.
History: En. See. 6, Ch. 195, L 1959; amd. See. 2, Ch. 38, L 1965; amd. See. 2, Ch. 210,
L 1969; amd. See.18, Ch.158, L 1971; R.C.M. 1947,113906(part).
7-15-4214. Hearing on urban renewal plan required. (1) The local
governing body shall hold a public hearing on an urban renewal plan after
public notice thereof.
(2) Upon receipt of the recommendations of the planning commission, or
if no recommendations are received within said 60 days, then without such
recommendations, the local governing body may proceed with the hearing on
the proposed urban renewal project plan.
History: En. See. 6, Ch.195, L 1959; amd. Sec. 2, Ch. 38, L 1965; amd. Sec. 2, Ch.210,
L 1969; amd. Sec.18, Ch.158, L 1971; R C.M. 1947,113906(part).
7-15-4215. Notice of hearing on urban renewal plan. (1) The notice
required by 7-154214(1) shall be given by publication once each week for 2
consecutive weeks, not less than 10 or more than 30 days prior to the date of
the hearing, in a newspaper having a general circulation in the urban renewal
area of the municipality and by mailing a notice of such hearing, not less than
10 days prior to the date of the hearing, to the persons whose names appear
on the county treasurer's tax roll as the owners, reputed owners, or purchasers
under contracts for deed of the property, at the address shown on the tax roll.
(2) The notice shall describe the time, date, place, and purpose of the
hearing, shall generally'identify the urban renewal area affected, and shall
outline the general scope of the urban renewal plan under consideration.
History: En. Sec. 6, Ch,195, L 1959; amd. Sec. 2, Ch. 38, L 1965; amd. Sec. 2, Ch. 210,
L 1969; amd. See.18, Ch.158, L 1971; R.C.M.1947,11-3906(part); amd. Sec. 8, Ch. 526,
L 1983.
7-15-4216. Requirements for approval of urban renewal plans and
projects. (1) The local governing body shall not approve an urban renewal
plan until a comprehensive plan or parts of such plan for an area which would
include an urban renewal area for the municipality have been prepared.
7-15 4217 LOCAL GOVERNMENT
(Z) A municipality shall not approve an urban renewal
urban renewal area unless the local governing body has b project for all,,.
mined such area to be a blighted area and designatedy resolution de
for an urban renewal project, such area as a peter-'1,
Ppropriate
(3) An urban renewal plan adopted after July 1, 1979, must be approved
by ordinance.
(4) All urban renewal plans approved by resolution prior to May approved
are aereby validated,
History: En. Sec. 6, Ch.195, L 1959; amd. Sec. 2, Ch. 38, L 186b; amd. Sec. 2, Ch,'210'
L 19138 amd. Sec 18, Ch.
1".. 158, L 1971; R.C.M. 1947, 11-3906(part); amd. Sec. 1, Ch
L
667,
7-I5-4217. Criteria for approval of urban renewal ing the hearing required by 7-15-4214, thproject. Follow.
e local governing body tray, b
Ordinance, approve an urban renewal project if it finds that:
(1) a workable and feasible plan exists for making lousing for the persons who may be displaced by the available adequate
(2) the urban renewal plan conforms to the comprehensive plan or par($
thereof for the municipality as a whole;
(3) the urban renewal plan will afford maximum opportunity, consistent
with he sound needs of the municipality as a whole, for the rehabilitation or
redevelopment of the urban renewal area by private enterprise; and
(4) a sound and adequate financial program exists for the financing of said
Proj
L 1969; aHistomd. See. 8, Ch. 158, I 1971; R.C.M. 1947, 13gp6L 1965- amd' Sec 2, Ch 210,
1-1979. (Part); amd. Sec. 2, Ch. 667
7-15-4218. Voter approval of urban renewal plan required when
general obligation bonds to be used. If the plan or any subsequent
modification thereof involves financing by the issuance of general obligation
bonds of the municipality as authorized in 7-15-4302(1) or the financing of
water or sewer improvements by the issuance of revenue bonds under the
Provisions of Part 44 of chapter 7 or of part 43 of chapter 13, the question of
approving the plan and issuing such bonds shall be submitted to a vote of the
alified electors of such municipality, in accordance with the provisions
_: verning municipal general obligation bonds under chapter 7, part 42, at the
same election and shall be approved by a majority of those qualified electors
voting on such question.
History- En. Sec. 61 Ch.195,R.1,1959; amd. Sec. 2, Ch. 38, L 1965; amd. Sea 2, CIL 210,
L1969;8L axed. Sea 18, Ch.
198E 1581 L 1971; C.M.1947,11-3906(part); amd. Sec.46, Ch.575,
L
7-15-4219. Effect of approval of urban renewal project. Upon the
approval of an urban renewal project by a municipality, the provisions of the
urban renewal plan with respect to the future use and building requirements
applicable to the property covered by said plan shall be controlling with
respect thereto.
History. En. Sea 6, Ch.195, L 1959; amd. Sec. 2, Ch. 38,1- 1965; amd. Sea 2, Ch. 210,
L 1969; amd. Sec.18, Ch.158, L 1971; R.C.M. 1947,11.3906(f),
7-15-4220. Use of neighborhood development program to imple
ment urban renewal activities. (1) The municipality may elect to under-
01 HOUSING AND CONSTRUCTION 7-15-4231
take and carry out urban renewal activities on a yearly basis. In such event,
the activities shall be included in the yearly budget of the municipality. The
undertaking of urban renewal activities on a yearly basis shall be designated
as a -neighborhood development program" and the financing of such activities
shall be approved in accordance with 7-15-4218.
(2) In the event of such election, the municipality shall present its
proposed annual increment activities or undertakings for public approval in
keeping with 7-15-4211 through 7-15-4221. Such activity year shall relate to
the budget year of the municipality.
(3) Such activities need not be limited to contiguous areas. However, such
activities shall be confined to the areas as outlined in the urban renewal plan
as approved by the municipality in accordance with this part. The yearly
activities shall constitute a part of the urban renewal plan, and the
municipality may elect to undertake certain yearly activities and total urban
renewal projects simultaneously.
(4) Every municipality shall have all the power necessary or convenient
to plan and undertake neighborhood development projects consisting of urban
renewal project undertakings and activities in one or more urban renewal
areas which are planned and carried out on the basis of annual increments in
accordance with the provisions of this part and part 43 for carrying out and
planning urban renewal projects.
History: (1), (3)Em Sec. 6, Ch.195, L 1959; amd. Sec. 2, Ch. 38, L 1965; amd. Sec. 2,
Ch. 210, L 1969; amd. Sea 18, Ch 158, L 1971; Sec.11-3906, R.C.M.1947; (2)En. Sec. 1,
Ch.195, L 1959-, amd. Sec. 1, Ch. 210, L 1969; Sec.11-MI, R.C.M.1947; (4)En. See. 7, Ch.
195, L 1959; amd. Sea 3, Ch. 210, L 1969; Sec. 11-3907, RC.M. 1947; R.C.M. 1947,
11-3901(part),11-3906(h),11-3907(j).
7-15-4221. Modification of urban renewal project plan. (1) An urban
renewal project plan maybe modified at any time by the local governing body.
If modified after the lease or sale by the municipality of real property in the
urban renewal project area, such modification shall be subject to such rights
at law or in equity as a lessee or purchaser or his successor or successors in
interest may be entitled to assert.
(2) An urban renewal plan may be modified by ordinance.
(3) All urban renewal plans approved or modified by resolution prior to
May 8, 1979, are hereby validated.
(4) A plan may be modified by:
(a) the procedure set forth in 7-15-4212 through 7-15-4219 with respect
to adoption of an urban renewal plan;
(b) the procedure set forth in the plan.
History: En. Sea 6, Ch.195, L 1959; amd. Sem 2, Ch. 38, L 1965; amd. Sm 2, Ch. 210,
L 1969; amd. Sea 18, Ch 158, L 1971; R.C.M. 1947,11.3906(e); amd. Sec. 3, Ch. 667, L
1979.
7-15-4222 through 7-15-4230 reserved.
7-15-4231. Exercise of powers related to urban renewal. A
municipality may itself exercise its urban renewal project powers as herein
defined or may, if the local governing body by resolution determines such
action to be in the public interest, elect to have such powers exercised by the
urban renewal agency created by 7-15.4232 or a department or other officers
70 15-4232 LOCAL GOVERNMENT 832
of the municipality as they are authorized to exercise under this part and part
43.
History: En. See. 15, Ch.195, L. 1959; R.C.M.1947,11-3915(a).
7-15-4232. Authorization to assign urban renewal powers to
municipal departments or to create urban renewal agency. When a
municipality has made the finding prescribed in 7-15-4210 and has elected to
have the urban renewal project powers exercised as specified in 7-15-4233:
(1) such urban renewal project powers may be assigned to a department
or other officers of the municipality or to any existing public body corporate;
or
(2) the legislative body of a city may create an urban renewal agency in
such municipality, to be known as a public body corporate, to which such
powers may be assigned.
History: En. Sec.16, Ch.195, L.1959; RC.M.1947,11-3916(a).
7-15-4233. Powers which may be exercised by urban renewal
agency or authorized department. (1) In the event the local governing
body makes such determination, such body may authorize the urban renewal
agency or department or other officers of the municipality to exercise any of
the following urban renewal project powers:
(a) to formulate and coordinate a workable program as specified in
7-15-4209;
(b) to prepare urban renewal plans;
(c) to prepare recommended modifications to an urban renewal project
plan;
(d) to undertake and carry out urban renewal projects as required by the
local governing body;
(e) to make and execute contracts as specified in 7-15-4251, 7-15-4254,
7-15-4255, and 7-15-4281, with the exception of contracts for the purchase or
sale of real or personal property;
(f) to disseminate blight clearance and urban renewal information;
(g) to exercise the powers prescribed by 7-15-4255, except the power to
Agree to conditions for federal financial assistance and imposed pursuant to
leral law relating to salaries and wages shall be reserved to the local
governing body,
(h) to enter any building or property in any urban renewal area in order
to make surveys and appraisals in the manner specified in 7-15-4257;
(i) to improve, clear, or prepare for redevelopment any real or personal
property in an urban renewal area;
G) to insure real or personal property as provided in 7-15-4258;
(k) to effectuate the plans provided for in 7-15-4254;
(1) to prepare plans for the relocation of families displaced from an urban
renewal area and to coordinate public and private agencies in such relocation;
(nt) to prepare plans for carrying out a program of voluntary or compul-
sory repair and rehabilitation of buildings and improvements;
(n) to conduct appraisals, title searches, surveys, studies, and other
preliminary plans and work necessary to prepare for the undertaking of urban
renewal projects;
(o) to negotiate for the acquisition of land;
833 HOUSING AND CONSTRUCTION 7-15.4236
(p) to study the closing, vacating, planning, or replanning of streets,
roads, sidewalks, ways, or other places and to make recommendations with
respect thereto;
(q) to organize, coordinate, and direct the administration of the provisions
of this part and part 43;
(r) to perform such duties as the local governing body may direct so as to
make the necessary arrangements for the exercise of the powers and perfor-
mance of the duties and responsibilities entrusted to the local governing body.
(2) Any powers granted in this part or part 43 that are not included in
subsection (1) as powers of the urban renewal agency or a department or other
officers of a municipality in lieu thereof may only be exercised by the local
governing body or other officers, boards, and commissions as provided under
existing law.
History: En. Sec. 15, Ch.195, L.1959; R.C.M.1947,11-3915(b).
7-15-4234. Urban renewal agency to be administered by ap-
pointed board of commissioners. (1) If the urban renewal agency is
authorized to transact business and exercise powers hereunder, the mayor,
by and with the advice and consent of the local governing body, shall appoint
a board of commissioners of the urban renewal agency, which shall consist of
five commissioners.
(2) The initial membership shall consist of one commissioner appointed
for 1 year, one for 2 years, one for 3 years, and two for 4 years. Each
appointment thereafter shall be for 4 years. A certificate of the appointment
or reappointment of any commissioner shall be filed with the clerk of the
municipality, and such certificate shall be conclusive evidence of the due and
proper appointment of such commissioner.
(3) Each commissioner shall hold office until his successor has been
appointed and has qualified.
(4) A commissioner shall receive no compensation for his services but
shall be entitled to the necessary expenses, including traveling expenses,
incurred in the discharge of his duties.
(5) Any persons maybe appointed as commissioners if they reside within
the municipality.
(6) A commissioner may be removed for inefficiency, neglect of duty, or
misconduct in office.
History: En. See.16, Ch.195,1..1959; R.C.M.1947,11-3916(part).
7-15-4235. Restrictions on agency commissioners holding other
public office. A majority of the commissioners of an urban renewal agency
exercising powers pursuant to this part or part 43 shall not hold any other
public office under the municipality other than their commissionership or
office with respect to such urban renewal agency, department, or office.
History: En. 8ec.18, Ch.195, L. 1959; R.C.M.1947,11-3918(psrt).
7-15-4236. Conduct of business. The powers and responsibilities of an
urban renewal agency shall be exercised by the commissioners thereof. A
majority of the commissioners shall constitute a quorum for the purpose of
conducting business and exercising the powers and responsibilities of the
agency and for all other purposes. Action may be taken by the agency upon a
7.15-4237 LOCAL GOVERNMENT 884 835 HOUSING AND CONSTRUCTION 7-15-4254
vote of a majority of the commissioners present unless in any case the bylaws
shall require a larger number.
Histor3n En. Sec.16, Ch. 195, L 1959; RC.M.1947,11-3916(part).
7-15-4237. Annual report. (1) An agency authorized to transact busi-
ness and exercise powers under this part and part 43 shall file with the local
governing body, on or before September 30 of each year, a report of its
activities for the preceding fiscal year.
(2) The report shall include a complete financial statement setting forth
its assets, liabilities, income, and operating expenses as of the end of the fiscal
year.
(3) At the time of filing the report, the agency shall publish in a newspaper
of general circulation in the community a notice to the effect that such report
has been filed with the municipality and that the report is available for
inspection during business hours in the office of the city clerk and in the office
if the agency.
History: En. Sec. 16, Ch. 195, L 1959; RC.M. 1947, 11-3916(part); amd. Sea 1, Ch.
441, L 1991.
7-15-4238. Employment of necessary staff. The urban renewal agency
or department or officers exercising urban renewal project powers shall be
supplied with the necessary technical experts and such other agents and
employees, permanent and temporary, as are required.
History: En. See.16, Ch. 195, L 1959; RC.M. 1947, 11-3916(part); amd. See. 17, Ch.
263, L.1979.
7-15-4239. Control of conflict of interest. (1) (a) No public official, no
employee of a municipality or urban renewal agency, and no department or
officers which have been vested by a municipality with urban renewal project
powers and responsibilities under 7-15-4231 shall voluntarily acquire any
interest, direct or indirect, in any urban renewal project, in any property
included or planned to be included in any urban renewal project of such
municipality, or in any contract or proposed contract in connection with such
urban renewal project.
(b) Where such acquisition is not voluntary, the interest acquired shall
immediately disclosed in writing to the local governing body, and such
uisclosure shall be entered upon the minutes of the governing body.
(2) If any such official or department or division head owns or controls or
owned or controlled within 2 years prior to the date of hearing on the urban
renewal project any interest, direct or indirect, in any property which he
knows is included in an urban renewal project, he shall immediately disclose
this fact in writing to the local governing body, and such disclosure shall be
entered upon the minutes of the governing body. Any such official or depart-
ment or division head shall not participate in any action on that particular
project by the municipality or urban renewal agency, department, or officers
which have been vested with urban renewal project powers by the
municipality pursuant to the provisions of 7-15-4231.
History: En. Sec.18, Ch. 195, L 1959; RC.M. 1947,11-3918(part).
7-15-4140. Misconduct in office. Any violation of the provisions of
7-15-4235 or 7-15-4239 shall constitute misconduct in office.
History: En. Sec. 18, Ch. 195, L 1959; RC.M.1947,11-3918(part).
7-154241 through 7-15.4250 reserved.
7-1542.51. General powers of municipalities in connection with
urban renewal. Every municipality shall have all the power necessary or
convenient:
(1) to carry out and effectuate the purposes and provisions of this part
and part 43;
(2) to undertake and carry out urban renewal projects within the
municipality, to make and execute contracts and other instruments necessary
or convenient to the exercise of its powers under this part and part 43, and to
disseminate blight clearance and urban renewal information;
(3) to organize, coordinate, and direct, within the municipality, the ad-
ministration of the provisions of this part and part 43 as they apply to such
municipality in order that the objective of remedying blighted areas and
preventing the causes thereof within such municipality may be most effec-
tively promoted and achieved and to establish such new office or offices of the
municipality or to reorganize existing offices in order to carry out such purpose
most effectively;
(4) to exercise all or any part or combination of powers granted in this
part or part 43.
History: En. Sec. 7, Ch. 195, L. 1959; amd. Sec. 3, Ch. 210, L. 1969; RC.M. 1947,
11-3907(part).
7-15-4252. Prevention and elimination of urban blight. The
municipality is authorized to develop, test, and report methods and techni-
ques and carry out demonstrations and other activities for the prevention and
the elimination of urban blight and to apply for, accept, and utilize grants of
funds from the federal government for such purposes.
History: En. Sec. 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L. 1969; RC.M. 1947,
11.3907(part).
7-154253. Relocation of displaced families. Every municipality shall
have power to prepare plans for the relocation of families displaced from an
urban renewal area and to make relocation payments and to coordinate public
and private agencies in such relocation, including requesting such assistance
for this purpose as is available from other private and governmental agencies,
both for the municipality and other parties.
History: En. Sea 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L 1969, R.C.M. 1947,
11-3907(g). -
7-15-4254. Municipal power in the preparation of various plans.
(1) Every municipality shall have power, within the municipality:
(a) to make or have made all plans necessary to the carrying out of the
purposes of this part and to contract with any person, public or private, in
making and carrying out such plans; and
(b) to adopt or approve, modify, and amend such plans.
(2) Such plans may include, without limitation:
(a) a comprehensive plan or parts thereof for the locality as a whole;
(b) urban renewal plans;
(c) plans for carrying out a program of voluntary or compulsory repair and
rehabilitation of buildings and improvements;
7-15-4255 LOCAL GOVERNMENT 836
(d) plans for the enforcement of state and local laws, codes, and regula-
tions relating to the use of land and the use and occupancy of buildings and
improvements and to the compulsory repair, rehabilitation, demolition, or
removal of buildings and improvements; and
(e) appraisals, title searches, surveys, studies, and other preliminary
plans and work necessary to prepare for the undertaking of urban renewal
projects.
History: En. Sec. 7, Ch. 195, L 1959, amd. Sec. 3, Ch. 210, L 1969, R.C.M. 1947,
11-3907(part).
7-15-4255. Authority to provide or contract for services related to
urban renewal. (1) Every municipality shall have power to:
(a) provide or arrange or contract for the furnishing or repair by any
person or agency, public or private, of services, privileges, works, streets, or
roads in connection with an urban renewal project;
(b) install, construct, and reconstruct streets, utilities, parks,
playgrounds, and other public improvements.
(2) Every municipality shall have power to agree to any conditions that
it may deem reasonable and appropriate attached to federal financial assis-
tance and imposed pursuant to federal law relating to the determination of
prevailing salaries or wages or compliance with labor standards in the
undertaking or carrying out of an urban renewal project and to include in any
contract let in connection with such a project provisions to fulfill such of said
conditions as it may deem reasonable and appropriate.
History: En. Sec. 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L 1969; R.C.M. 1947,
11-3907(b).
7-15-4256. Restriction on operation of certain utility services by
municipality. Nothing in this part or part 43 shall be construed to authorize
any municipality to construct or operate, as a part of any urban renewal
project, any electric generation plant, electric transmission or distribution
lines, or other public utility facilities, excepting waterlines and sewerlines
then operated by municipalities.
History: En. Sec. 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L 1969; R.C.M. 1947,
11.3907(l).
7-15-4257. Authority to enter private property. (1) Every
municipality shall have power, within the municipality, to enter upon any
building or property in any urban renewal area in order to make surveys and
appraisals and to obtain an order for this purpose from a court of competent
jurisdiction in the event entry is denied or resisted.
(2) Such entries shall be made in such manner as to cause the least
possible inconvenience to the persons in possession.
History: En. Sec. 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L 1969; R.C.M. 1947,
11-3907(part).
7-15-4258. Acquisition and administration of real and personal
property. (1) Every municipality shall have power to:
(a) acquire by purchase, lease, option, gift, grant, bequest, devise,
eminent domain, or otherwise any real property and such personal property
as may be necessary for the administration of the provisions contained in this
part and part 43, together with any improvements thereon,
837 HOUSING AND CONSTRUCTION 7-15-4259
(b) hold, improve, clear, or prepare for redevelopment any such property;
(c) dispose of any real or personal property;
(d) insure or provide for the insurance of any real or personal property or
operations of the municipality against any risks or hazards, including the
power to pay premiums on any such insurance; and
(e) enter into a development agreement with the owner of real property
within an urban renewal area and undertake activities, including the acquisi-
tion, removal, or demolition of structures, improvements, or personal property
located on the real property, to prepare the property for redevelopment.
(2) A development agreement entered into in accordance with subsection
(1)(e) must contain provisions obligating the owner to redevelop the real
property for a specified use consistent with the urban renewal plan and
offering recourse to the municipality if the redevelopment is not completed as
determined by the local governing body. The development agreement may not
constitute the acquisition of an interest in real property by the municipality
within the meaning of 7-15-4262 or 7-15-4263.
(3) However, no statutory provision with respect to the acquisition,
clearance, or disposition of property by public bodies shall restrict a
municipality in the exercise of such functions with respect to an urban
renewal project.
(4) A municipality shall not acquire real property for an urban renewal
project or enter into a development agreement, as provided in subsection
(1)(e), unless the local governing body has approved the urban renewal project
plan in accordance with 7-15-4216(2) and 7-15-4217.
History: (1), (2)En. Sec. 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L 1969; See.11-3907,
R.C.M.1947; (3)En. Sec. 6, Ch.195, L 1959; amd. Sec. 2, Ch. 38, L 1965; amd. See. 4 Ch.
210, L 1969; amd. See. 18, Ch. 158, L 1971; Sec. 11-3906, R.C.M. 1947; R.C.M. 1947,
11-3906(part),11-3907(part); amd. See. 2, Ch. 441, L 1991.
Cross -References
Eminent domain, Art. II, sec. 29, Mont.
Const.; Title 70, ch. 30.
7-15-4259. Exercise of power of eminent domain. (1) After the adop-
tion by the local governing body of a resolution declaring that the acquisition
of the real property described therein is necessary for an urban renewal
project under this part, a municipality shall have the right to acquire by
condemnation any interest in real property which it may deem necessary for
such purpose.
(2) Condemnation for urban renewal of blighted areas is declared to be a
public use, and property already devoted to any other public use or acquired
by the owner or his predecessor in interest by eminent domain may be
condemned for the purposes of this part.
(3) The award of compensation for real property taken for such a project
shall not be increased by reason of any increase in the value of the real
property caused by the assembly, clearance, or reconstruction or proposed
assembly, clearance, or reconstruction in the project area. No allowance shall
be made for the improvements begun on real property after notice to the owner
of such property of the institution of proceedings to condemn such property.
Evidence shall be admissible bearing upon the unsanitary, unsafe, or substan-
dard condition of the premises or the unlawful use thereof.
_,..,., ..,.u.-1. aaa
History: En. Sec. 8, Ch.195, L 1959; R.C.M.1947,11-3908.
Cross -References
Eminent domain, Title 70, ch. 30.
7-15-4260. Exemption from levy and sale for certain property. All
property of a municipality, including funds, owned or held by it for the
purposes of this part and part 43 shall be exempt from levy and sale by virtue
of an execution, and no execution or other judicial process shall issue against
the same nor shall judgment against a municipality be a charge or lien upon
such property; provided, however, that the provisions of this section shall not
apply to or limit the right of obligees to pursue any remedies for the enforce-
ment of any pledge or lien given pursuant to this part or part 43 by a
municipality on an urban renewal project or the rents, fees, grants, or
revenues derived from these projects.
History: En. Sec. 12, Ch. 195, L 1959; R.C.M. 1947,11-3912(a); amd. Sec. 4, Ch. 667,
L 1979.
7-154261. Exemption from taxation for certain property. (1) The
operty of a municipality acquired or held for the purposes of this part is
declared to be public property used for essential public and governmental
purposes, and such property shall be exempt from all taxes of the
municipality, the county, the state, or any political subdivision thereof.
(2) Such tax exemption shall terminate when the municipality sells,
leases, or otherwise disposes of such property in an urban renewal area to a
purchaser or lessee which is not a public body or other organization normally
entitled to tax exemption with respect to such property.
History: En. See.1% Ch. 195, L 1959; R.C.M.1947,11-3912(b).
7-15-4262. Disposal of municipal property in urban renewal areas.
(1) A municipality may:
(a) sell, lease, or otherwise transfer real property in an urban renewal
area or any interest therein acquired by it for an urban renewal project for
residential, recreational, commercial, industrial, or other uses or for public
use and enter into contracts with respect thereto; or
(b) retain such property or interest only for parks and recreation, educa-
tion, public transportation, public safety, health, highways, streets and alleys,
administrative buildings, or civic centers, in accordance with the urban
iewal project plan and subject to such covenants, conditions, and restric-
tions, including covenants running with the land, as it may deem to be
necessary or desirable to assist in preventing the development or spread of
blighted areas or otherwise to carry out the purposes of this part.
(2) Such sale, lease, other transfer, or retention and any agreement
relating thereto may be made only after the approval of the urban renewal
plan by the local governing body.
(3) Such real property or interest shall be sold, leased, otherwise trans-
ferred, or retained at not less than its fair value for uses in accordance with
the urban renewal plan. In determining the fair value of real property for uses
in accordance with the urban renewal plan, a municipality shall take into
account and give consideration to the uses provided in such plan; the restric-
tions upon and the covenants, conditions, and obligations assumed by the
839 HOUSING AND CONSTRUCTION 7-15-4264
purchaser or lessee or by the municipality retaining the property; and the
objectives of such plan for the prevention of the recurrence of blighted areas.
(4) Real property acquired by a municipality which, in accordance with
the provisions of the urban renewal plan, is to be transferred shall be
transferred as rapidly as feasible, in the public interest, consistent with the
carrying out of the provisions of the urban renewal plan.
History: Em Sec. 9, Ch. 195, L 1959; amd. Sec. 1, Ch. 134, L 1973; R.C.M. 1947,
11-3909(part).
7-15-4263. Procedure to dispose of property to private persons. (1)
A municipality may dispose of real property in an urban renewal area to
private persons only under such reasonable procedures as it shall prescribe
or as provided in this section.
(2) (a) A municipality shall by public notice invite proposals from and
make available all pertinent information to private redevelopers or any
persons interested in undertaking to redevelop or rehabilitate an urban
renewal area or any part thereof.
(b) Such notice shall be by publication once each week for 3 consecutive
weeks in a newspaper having a general circulation in the community prior to
the execution of any contract or deed to sell, lease, or otherwise transfer real
property and prior to the delivery of any instrument of conveyance with
respect thereto under the provisions of 7-15-4262 through 7-15-4266.
(c) Such notice shall identify the area or portion thereof and shall state
that such further information as is available may be obtained at such office
as shall be designated in said notice.
(3) The municipality shall consider all redevelopment or rehabilitation
proposals and the financial and legal ability of the persons making such
proposals to carry them out. The municipality may accept such proposals as
it deems to be in the public interest and in furtherance of the purposes of this
part and part 43. Thereafter, the municipality may execute, in accordance
with the provisions of 7-15-4262 and 7-15-4264, and deliver contracts, deeds,
leases, and other instruments of transfer.
History: En. See. 9, Ch. 195, L 1959; amd. Sec. 1, Ch. 134, L 1973; R.C.M. 1947,
11-3909(b).
7-15-4264. Obligations of transferees of municipal property in
urban renewal area. (1) The purchasers or lessees and their successors and
assigns shall be obligated to devote real property transferred pursuant to
7-15-4262 only to the uses specified in the urban renewal plan and may be
obligated to comply with such other requirements as the municipality may
determine tobe in the public interest, including the obligation to begin within
a reasonable time any improvements on such real property required by the
urban renewal plan.
(2) The municipality in any instrument of conveyance to a private pur-
chaser or lessee may provide that such purchaser or lessee shall be without
power to sell, lease, or otherwise transfer the real property without the prior
written consent of the municipality until he has completed the construction
of any and all improvements which he has obligated himself to construct
thereon.
7-15-4265 LOCAL GOVERNMpNT
840 941 HOUSING AND CONSTRUCTION 7-15.4282
(3) The inclusion in any such contract or conveyance to a purchaser or
lessee of any such covenants, restrictions, or conditions (including the incor.
poration by reference therein of the provisions of an urban renewal plan or
any Part thereof) shall not prevent the recording of such contract or con_
veyance in the land records of the clerk and recorder or the county in which
such city or town is located, in such manner as to afford actual or constructive
notice thereof.
History: En. Sec. 9, Ch. 195, L 1959, amd. Sec. 1, Ch. 134, L 1973; RC.M. 1947,
11.3909(part).
7-154265• Presumption of regularity in transfer of title. Any in.
strument executed by a municipality and purporting to convey any right, title,
or interest in any property under this part or part 43 shall be conclusively
Presumed to have been executed in compliance with the provisions of this part
and part 43 insofar as title or other interes
History: En. Sec.14, Ch.t of any bona fide purchasers,
lessees, or transferees of such property is concerned.
195, L 1959; H C.M. 1947,11-3914.
7-15-1266. Temporary use of municipal property in urban renewal
area. A municipality may operate and maintain real property acquired in an
urban renewal area pending the disposition of the property for redevelopment,
without regard to the provisions of 7-15-4262 and 7-15-4264, for such uses
and Purposes as may be deemed desirable even though not in conformity with
the urban renewal plan. The municipality may, after a public
the time for a period not to exceed 3 years. hearing, extend
History: En. Sec. 9, Ch. m 11-3909(c). 195, L 1959, ad. Sec. 1, Ch. 134, L 1973; RC.M. 1947,
7-154267. Cooperation by public bodies. (1) For the purpose of aiding
in the planning, undertaking, or carrying out of an urban renewal project
located within the area in which it is authorized to act, any public body
authorized by law or by this part or part 43, upon such terms, with or without
consideration, as it may determine, may;
(a) dedicate, sell, convey, or lease any of its interest in any property or
ant easements, licenses, or other rights or
municipality; privileges therein to a
(b) incur the entire expense of any public improvements made by such
Public body in exercising the powers granted in this section;
(c) do any and all things necessary to aid or cooperate in the planning or
carrying out of an urban renewal plan,
(d) lend, grant, or contribute funds to a municipality;
(e) enter into agreements (whicmay extend over an
h
withstanding any provision or rule h' law to the contra y period, not -
or other public body respecting action to be taken ur with a municipality
suant to any of the
Powers granted by this part or part 43, including the furnishing of funds or
other assistance in connection with an urban renewal project-
(f) cause to be furnished public buildings and public facilities, including
Parks; playgrounds; recreational, community, educational, water, sewer, or
drainage facilities; or any other works which it is otherwise empowered to
undertake;
(g) furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or
replan streets, roads, sidewalks, ways, or other places;
(h) plan or replan or zone or rezone any part of the urban renewal area;
and
(i) provide such administrative and other services as may be deemed
requisite to the efficient exercise of the powers herein granted.
(2) Any sale, conveyance, lease, or agreement provided for in this section
shall be made by a public body with appraisal, public notice, advertisement,
or public bidding in accordance with provisions of 7-15-4263.
History: En. Sec.13, Ch.195, L 1959; RC.M.1947,113913(a), (b).
7-15-4268 through 7-14-4280 reserved.
7-15-4281. Financial authority in connection with urban renewal.
(1) Every municipality shall have power to:
(a) borrow money and apply for and accept advances, loans, grants,
contributions, and any other form of financial assistance from the federal
government; from the state, a county, or any other public body; or from any
sources, public or private, for the purposes of this part and enter into and
carry out contracts in connection therewith;
(b) appropriate such funds and make such expenditures as may be neces-
sary to carry out the purposes of this part and in accordance with state law
levy taxes and assessments for such purposes;
(c) invest any urban renewal project funds held in reserves or sinking
funds or any such funds which are not required for immediate disbursement
in property or securities in which mutual savings banks may legally invest
funds subject to their control;
(d) adopt, in accordance with state law, annual budgets for the operation
of an urban renewal agency, department, or office vested with urban renewal
project powers under 7-15-4231;
(e) enter, in accordance with state law, into agreements, which may
extend over any period, with agencies or departments vested with urban
renewal project powers under 7-15-4231 respecting action to be taken by such
municipality pursuant to any of the powers granted by this part or part 43;
(f) close, vacate, plan, or replan streets, roads, sidewalks, ways, or other
places and plan or replan, zone or rezone any part of the municipality in
accordance with state law.
(2) A municipality may include in any application or contract for financial
assistance with the federal government for an urban renewal project such
conditions imposed pursuant to federal laws as the municipality may deem
reasonable and appropriate and which are not inconsistent with the purposes
of this part and part 43.
History: En. Sec. 7, Ch. 195, L 1959; amd. Sec. 3, Ch. 210, L 1969; R.C.M. 1947,
11-3907(part).
7-15-4282. Authorization for tax increment financing. Any urban
renewal plan, as defined in 7-15-4206, or industrial district ordinance,
adopted pursuant to 7-15-4299, may contain a provision or be amended to
contain a provision for the segregation and application of tax increments, as
provided in 7-15-4282 through 7-15-4292.
--....•. w v cictvMEN'f'
842
History: En.11-3921 by sea 1, Ch. 287, L 1974• amd. Sec. 1 Ch. 462
Sea 2 Ch 532, L 1977; amd. Sec. 31, Ch. b66, L 1977, R C.M L 1975; amd.
Sec. 4, Ch 712, g g989
1947,11-3921(part); amd.
7"15-4283• Definitions related to tax increment financing. Poses of 7-15-4282 through 7-15-4292 and 7-15-4297 throu
following definitions a mg F°rPur-
context: PP1y unless otherwise gh 7.15.4299, the
Provided or indicated by the
(1) Actual taxable value" means the taxable value of taxableproperty
any time, as calculated from the assessment roll last equalized.
(2) "Base taxable value"axabat
Property within an urban renewal the actual taxable value of all effective date of a tax increment fin area
industrial district prior to the
adjusted as Provided in 7-15-4287 or 7- g Provision.
(3) `Incremental taxable value" an, the. This value may be
actual taxable value at an t' means the amount, if any,
by Which within an urban renewal area or exceeds the base taxable value of all property (4) "Industrial district" means a tax incindustrial rement finistrict anciectng industrial dis.
trict created pursuant to 7.15.4299.
(5) `Industrial infrastructure development project" mea
dertaken within or for an industrial district that consists of any or all of the
activities authorized b a project un-
(6) 'Municipality"Y 7 15-4288.
suant to 7for the purpose of an industrial
through 7• m'-gh 7-15-4299 and o district created pur-
g 15-4293 and part 43 of this chapteroperating pursuant to 7-15-4282
or town, county, or city -county consolidated ocameans an
(7) `Taxes" Y incorporated city
an ad valorem basis taxes all taxes levied b gO°ernment.
Y a taxing body aga
(8) "Tax incremeinst Property on
nt" means the collections realized from extending the tax
levies, expressed in mills, of all taxing bodies in which the urban to industrial district or a part thereof is located
taxable value. an renewal area
against the incremental
(9) "Tax increment provision" means a provision for the se
application of tax increments as authorized by 7.15-4282 throu
(10) "Taxing body-seggh regation292.
and
Political subdivision or 1ove any city, town, county, school district, or other
4ich levies taxes against governmental unit of the state, '
Property within the urban including the slate,
--astrial district. renewal
History; En. 113 area or in'
2, Ch. 532, 9M by Sec- 1. Ch. 287, L 1974• a
5, Ch. 667, L 1 L 1977; amd. Sec. 31, Ch 566, L 1977; LC. Sec. 1, Ch. 452,
amd. Sec. 5, Ch. 712, L 1989. R C•M.1947,11-3921(2;amd Sec.
7-15-4284' Filing of tax increment provisions of urban renewal
Plan or industrial district ordinance. (1) The clerk of the municipality
shall file a certified copy of each urban renewal plan or industrial district
ordinance or an amendment thereto containing a tax increment provision with
the state, county, or city officers responsible for assessing and Bete
the taxable value of taxable property within the urban renewal area or
industrial district ordinance or an determining
y part thereof.
843 HOUSING AND CONSTRUCTION 7-15-4287
(2) A certified copy of the plan, industrial district ordinance, or amend-
ment must also be filed with the clerk or other appropriate officer of each of
the affected taxing bodies.
History: Em 113921 by Sec. 1, Ch. 287, L 1974; amd. See. 1, Ch. 452, L 1975; amd.
Sec. 2, Ch. 532, L 1977; amd. Sec. 31, Ch. 566, L.1977; R.C.M. 1947, 11-3921(part); amd.
Sec. 6, Ch 712,1- 1989.
7-15-4285. Determination and report of original, actual, and in-
cremental taxable values. The officer or officers responsible for assessing
and determining the taxable value of the taxable property located within the
urban renewal area or industrial district shall, immediately upon receipt of
the tax increment provision and each year thereafter, calculate and report to
the municipality and to any other affected taxing body the base, actual, and
incremental taxable values of such property.
History: En. 11-3921 by Sea 1, Ch. 287, L. 1974; amd. Sea 1, Ch. 452, L. 1975; amd.
Sec. 2, Ch. 532, L 1977; amd. Sec. 31, Ch. 566, L 1977; R.C.M. 1947,113921(part); amd.
Sec. 6, Ch. 667, L 1979; amd. See. 7, Ch. 712, L 1989.
7-15-4286. Procedure to determine and disburse tax increment. (1)
Mill rates of taxing bodies for taxes levied after the effective date of the tax
increment provision shall be calculated on the basis of the sum of the taxable
value, as shown by the last equalized assessment roll, of all taxable property
located outside the urban renewal area or industrial district and the base
taxable value of all taxable property located within the urban renewal area
or industrial district. The mill rate so determined shall be levied against the
sum of the actual taxable value of all taxable property located within as well
as outside the urban renewal area or industrial district.
(2) (a) The tax increment, if any, received in each year from the levy of
the combined mill rates of all the affected taxing bodies against the incremen-
tal taxable value within the urban renewal area or industrial district, except
for the university system mills levied and assessed against property as defined
in 7-15-4292(6)(a), shall be paid into a special fund held by the treasurer of
the municipality and used as provided in 7-15-4282 through 7-15-4292.
(b) The balance of the taxes collected in each year shall be paid to each of
the taxing bodies as otherwise provided by law.
History: En.114921 by Sea 1, Ch. 287, L 1974; amd. Sec. 1, Ch. 452, L 1975; amd.
Sec. 2, Ch. 532,7- 1977, amd. Sea 31, Ch. 566, L 1977; R.C.M.1947,11-3921(4); amd. Sea
7, Ch. 667, L 1979; amd. Sec. 8, Ch. 712,1. 1989; amd. Sec. 4, Ch. 441, L 1991.
7-15-4287. Provision for use of portion of tax increment. (1) At the
time of adoption of a tax increment provision or at any time subsequent
thereto, the governing body of the municipality may provide that a portion of
the tax increment from the incremental taxable value shall be released from
segregation by an adjustment of the base taxable value, provided that:
(a) all principal and interest then due on bonds for which the tax incre-
ment has been pledged has been fully paid; and
(b) the tax increment resulting from the smaller incremental value is
determined by the governing body to be sufficient to pay all principal and
interest due later on the bonds.
(2) The adjusted base value determined under subsection (1) shall be
reported by the clerk to the officers and taxing bodies to which the increment
provision is reported.
745.4288 LOCAL GOVERNMENT 844
(3) Thereafter, the adjusted base value is used in determining the mill
rates of affected taxing bodies unless the tax increment resulting from the
adjustment is determined to be insufficient for this purpose. In this case, the
governing body must reduce the base value to the amount originally deter-
mined or to a higher amount necessary to provide tax increments sufficient
to pay all principal and interest due on the bonds.
History En.11-Ml by Sec. 1, Ch. 287, L 1974; amd. Sec. 1, Ch. 452, L 1975; amd.
Sec. 2, Ch. 532, L 1977; amd. Sec. 31, Ch. 566, L 1977; R.C.M. 1947,114921(6); amd. See.
8, Ch. 667, L 1979.
7-15-4288. Costs that maybe paid by tax increment financing. The
tax increments may be used by the municipality to pay the following costs of
or incurred in connection with an urban renewal project or industrial in-
frastructure development project:
(1) land acquisition;
(2) demolition and removal of structures;
,,3) relocation of occupants;
(4) the acquisition, construction, and improvement of infrastructure or
industrial infrastructure, which includes streets, roads, curbs, gutters,
sidewalks, pedestrian malls, alleys, parking lots and offstreet parking
facilities, sewers, sewer lines, sewage treatment facilities, storm sewers,
waterlines, waterways, water treatment facilities, natural gas lines, electrical
lines, telecommunications lines, rail lines, rail spurs, bridges, publicly owned
buildings, and any public improvements authorized by parts 41 through 45 of
chapter 12, parts 42 and 43 of chapter 13, and part 47 of chapter 14 and items
of personal property to be used in connection with improvements for which
the foregoing costs may be incurred;
(5) costs incurred in connection with the redevelopment activities allowed
under 7-15-4233;
(6) acquisition of infrastructure -deficient areas or portions of areas;
(7) administrative costs associated with the management ofthe industrial
district;
(8) assemblage of land for development or redevelopment by private
enterprise or public agencies, including sale, initial leasing, or retention by
tk uinicipality itself at its fair value;
-,o) the compilation and analysis of pertinent information required to
adequately determine the infrastructure needs of secondary, value -adding
industries in the industrial district;
(10) the connection of the industrial district to existing infrastructure
outside the industrial district;
(11) the provision of direct assistance, through industrial infrastructure
development projects, to secondary, value -adding industries to assist in
meeting their infrastructure and land needs within the industrial district;
ind
(12) the acquisition, construction, or improvement of facilities or equip-
nent for reducing, preventing, abating, or eliminating pollution.
History: En. 11-3921 by See. 1, Ch. 287, L 1974; amd. Sec. 1, Ch. 452, L 1975; amd.
iec. 2, Ch. 532, L 1977; amd. Sen. 31, Ch. 566, L 1977; R.C.M. 1947,11-3921(part); amd.
;ec. 1, Ch. 147, L 1981; amd. Sec. 9, Ch. 712, L 1989; amd. Sec. 1, Ch. 737, L 1991; amd.
ec.1, Ch. 500, L 1993.
845 HOUSING AND CONSTRUCTION 7-15-4292
Compiler's Comments reducing, preventing, abating, or eliminating
1993 Amendment: Chapter 500 inserted pollution to be paid by tax increment fmane-
(12) allowing the acquisition, construction, or ing; and made minor changes in style.
improvement of facilities or equipment for
7-154289. Use of tax increments for bond payments. The tax incre-
ment maybe pledged to the payment of the principal of premiums, if any, and
interest on bonds which the municipality may issue for the purpose of
providing funds to pay such costs.
History: En. 11-3921 by See. 1, Ch. 287,1- 1974; amd. Sec. 1, Ch. 452, L 1975; amd.
Sec. 2, Ch. 532,1- 1977; amd. Sec. 31, Ch. 566, L 1977, R.C.M. 1947,11-3921(part); amd.
Sec. 9, Ch. 667, L 1979.
7-154290. Use of property taxes and other revenues for payment
of bonds. (1) The tax increment derived from an urban renewal area may be
pledged for the payment of revenue bonds issued for urban renewal projects
or of general obligation bonds, revenue bonds, or special assessment bonds
issued to pay urban renewal costs described in 7-15 4288 and 7-15-4289. The
tax increment derived from an industrial district may be pledged for the
payment of revenue bonds issued for industrial infrastructure development
projects or of general obligation bonds, revenue bonds, or special assessment
bonds issued to pay industrial district costs described in 7-15-4288 and
7-15-4289. Any municipality issuing such bonds may, by resolution of its
governing body, enter into a covenant for the security of the bondholders,
detailing the calculation and adjustment of the tax increment and the taxable
value on which it is based and, after a public hearing, pledging or appropriat-
ing other revenues of the municipality, except property taxes prohibited by
subsection (2), to the payment of such bonds if collections of the tax increment
are insufficient.
(2) No property taxes, except the tax increment derived from property
within the urban renewal area or industrial district and tax collections used
to pay for services provided to the municipality by an urban renewal project
or an industrial infrastructure development project, may be applied to the
payment of bonds issued pursuant to 7.15-4301 for which a tax increment has
been pledged.
History: En. 11-3921 by Sec. 1, Ch. 287, L 1974; amd. Sec. 1, Ch. 452, L 1975; amd.
Sec. 2, Ch. 532,1- 1977; amd. Sec. 31, Ch. 566, L 1977; H.C.M.1947,11-3921(part); amd.
Sec.10, Ch. 667,1- 1979; amd. Sec. 1, Ch. 615, L 1987; amd. Sec.10, Ch. 712, L 1989.
7-15-4291. Agreements to remit unused portion of tax increments.
The municipality may also enter into agreements with the other affected
taxing bodies to remit to such taxing bodies any portion of the annual tax
increment ,not currently required for the payment of the costs listed in
7-15-4288 or pledged to the payment of the principal of premiums, if any, and
interest on the bonds referred to in 7-15-4289.
History. En. 11-3921 by Sec. 1, Ch. 287, L 1974; amd. Sec. 1, Ch. 452,1. 1975; amd.
Sec. 2, Ch. 532, L 1977; amd. Sec. 31, Ch. 566, L 1977; R.C.M.1947,11-3921(part).
7-15-4292. Termination of tax increment financing -exception -
reduction in tax increment distribution. (1) The tax increment provision
shall terminate upon the later of:
7-15-4292 LOCAL GOVERNMENT
846, .. 847 HOUSING AND CONSTRUCTION 7-15-4298
(a) the 15th year following its adoption or, if the tax increment
was adopted prior to January 1, provisiog
or 1980, upon the 17th year following adoption;
(b) the payment or provision for payment in full or discharge of all bonds
for which the tax increment has been pledged and the interest thereon.
(2) Any amounts remaining in the special fund or any reserve fund after
various taxing bodies in proportion to their
termination of the tax increment provision shall be distributed among the
district. taproperty x revenues from the
(3) After termination of the tax increment provision, all taxes shall be
levied upon the actual taxable value of the taxable property in the urban
renewal area or the industrial district and shall be paid into the funds of the
respective taxing bodies.
(4) Bonds secured in whole or in part by a tax increment provision may
not be issued after the 15th anniversary of tax increment provisions adopted
after January 1, 1980, and the 17th anniversary of tax increment provisions
adopted prior to January 1, 1980. However, if bone anniversary, additional
ds secured by a tax incre-
ment provision are outstanding on the applicabl
bonds secured by the tax increment provision may be issued if the final
maturity date of the bonds is not later than the final maturity date of any
bonds then outstanding and secured by the tax increment provision.
(5) (a) If a municipality issues bonds secured in whole or in part by a tax
increment provision after the loth year following a tax increment provision
adopted after January 1,1980, or after the 12th year following a tax increment
provision adopted before January 1, 1980, it is not entitled to the full
distribution provided in 20-9-360(2).
(b) The state treasurer shall reduce the distribution to the municipality
in each fiscal year after the fiscal year in which the bonds referred to in
subsection (5)(a) are issued by an amount equal to the increased taxable value
of the project property multiplied by the total number of mills levied and
assessed for school district purposes against the property in the previous
calendar year. The department of revenue shall certify to the state treasurer
by September 1 of each year the increased taxable value of the project
,roperty.
(c) If the municipality issues more than one bond series after January 1,
1991, the distribution to the municipality as provided in 20.9-360(2) is
reduced, as determined in subsection (5)(b), by the sum of the amounts of each
bond issue.
(6) For the purposes of subsection (5):
a) "project property" affected by an urban ls the ta
renewal project financed in whole
renewal
areaor in part
from the proceeds of the bonds issued pursuant to subsection (5)(a), certified
by the municipality to the department of revenue at the time the bonds are
issued and identified by a tax identification number. property is affected by
an urban renewal project if the property:
(i) is to be acquired or improved as part of the urban renewal project;
(ii) is located on property that is to be acquired or improved as part of the
urban renewal project;
(iii) is contiguous to or located on property contiguous to, property referred
to in subsection (6)(a)(i) or (6)(a)(1i), including adjacent property separated by
a road, stream, street, or railroad; or
(iv) is included in an agreement between a person and the municipality
in connection with the urban renewal project for the issuance of the bonds and
if under the agreement, the person undertakes to develop or redevelop the
property.
(b) increased taxable value" means the difference between the taxable
value of the project property for the current fiscal year and the taxable value
of the project property for the fiscal year in which the bonds were issued.
History: En. 11-3921 by Sec. 1, Ch. 287, L 1874; amd. Sec. 1, Ch- 452, L 1975; amd.
Sec. 2, Ch. 532, L 1977; amd. Sec. 31, Ch. 566, L 1977; H.C.M.1947, 11-3921(7); amd. Sec.
1, Ch. 251, L 1985yamd. See.11, Ch. 712, L 1989; amd. Sec. 3, Ch.441, L 1991.
7-15-4293: Adjustment of base taxable value following change of
law. If the 1!'iase taxable value of an urban renewal area or an industrial
district is affected after its original determination by a statutory, administra-
tive, or judici change in the method of appraising property, the tax rate
applied to it, th0 tax exemption status of property, or the taxable valuation of
property if the hange in taxable valuation is based on conditions existing at
the time the base year was established, the governing body of the municipality
may request the department of revenue or its agents to calculate the base
taxable value as it would have been on the date of the original determination
had the change been in effect on that date. The governing body may adjust
the base taxable value to that value reported by the department of revenue,
under the provisions of 7-15-4287.
History: En. Sec.12, Ch. 667, L 1979; amd. Sec. 2, Ch.147, L.1981; amd. Sec.12, Ch.
712, L 1989.
7-15-4294through 7-14-4296 reserved.
7-15-4297. Short title. Sections 7-15-4297 through 7-15-4299 may be
cited as the "Tax Increment Financing Industrial Development Act".
History: En. See. 1, Ch- 712, L 1989.
7-15-4298. Legislative findings. The
that:
(1) infrastructure -deficient areas exist
and constitute a serious impediment to the c
tensive, secondary, value -adding economic c
(2) municipalities lack sufficient capit
shortage in infrastructure -deficient areas
municipalities to achieve economic growth tl
dary, value -adding industries;
(3) the creation of industrial infrastructi
state concern because the state and its mum
economic dislocation due to the lack of seci-___-_„
and
(4) the state's tax increment financing laws should be used to encourage
the creation of areas in which needed industrial infrastructure for secondary,
value -adding industries could be developed.
History: En. Sec. 2, Ch. 712, L 1989.