The Land Clearance for Redevelopment Authority (LCRA) Law was enacted by state statute (Sections 99.300-99.715 RSMs) in 1951 to help local municipalities eradicate blighted and insanitary areas of their community and to encourage redevelopment of real property, particularly in urban areas. LCRA, once created locally, is a separate political entity required to comply with all Missouri laws applicable to political subdivisions.

History

In 1957 Independence voters, as provided by Chapter 99 of the Missouri statutes, approved the creation of a Land Clearance for Redevelopment Authority (LCRA). While state statutes provide that the City Council itself, persons appointed by the City Council, or the members of the Housing Authority could serve on the LCRA board of directors, the Council chose to appoint local citizens to direct the LCRA. As part of the Urban Renewal efforts, the Department of Housing and Urban Development (HUD) began offering financial assistance to LCRAs to support local redevelopment efforts. The financial assistance was focused on providing funds for specific redevelopment projects and for the rehabilitation of residential and commercial structures. Locally, the LCRA administered three redevelopment plans that were approved by the City Council: MO-R-31 (1964) Northwest Parkway; MO-R-39 (1967) Jackson Square; MOA-8 (1971) Old Town. In 1974, HUD replaced urban renewal grants with the Community Development Block Grant Program. With this change in federal policy and because the LCRA had basically completed its financial obligations, the terms of the LCRA board members were allowed to lapse, and the City Council assumed the role of the LCRA. In 1975, the City Council adopted Resolution 928, authorizing the LCRA to "close out the neighborhood development program and acknowledging that the assets and liabilities become the property" of the city. In 1977, the City Council adopted Ordinance No. 4830, accepting all remaining responsibilities from the LCRA for a separate urban renewal project. A 2004 court ruling determined that the previously approved LCRA plans are still valid and property within the existing plan areas could be eligible for tax abatement per statutory requirements.

Proposal

The Independence Chamber of Commerce is recommending reestablishment of the Independence LCRA to address blighted residential properties within the City of Independence.

Steps to Revise the Existing Urban Renewal Plans

There are currently three Urban Renewal Plans which are still active: Project No. MO-R-31 –Northwest Parkway Project; No. MO-R-39 – Jackson Square; Project No. MO-A-8 – Old Town. All of these projects will need to be revised or terminated.

• Determine if the City Council is going to act as the LCRA or re-establish a separate body. This step would determine if a new body would have to make recommendations regarding changes to the plans or if the City Council would make such recommendations. All appointees must be taxpayers who have resided for a period of five years in Independence.
• Revise “Workable Program” as required. Prior to revising any specific project plans, the Workable Program must be revised. The workable program “is the official plan of action for effectively dealing with the problems of urban slums and blight within the community and for the establishment and preservation of well-planned community with well-organized residential neighborhoods of decent homes and suitable living environment for family life.” (99.320) The existing State Statutes do not spell out specific content requirements for a Workable Program. Staff will need to determine if there are content requirements for a “Workable Program.”
• Revise Urban Renewal Plans. The existing plans were developed as a requirement to access Urban Renewal funds. The LCRA participated in rehabilitation and acquisition, relocation, and clearance activities. Because tax abatement was not allowed until 1986, the issuance of tax abatement was not contemplated by the LCRA under any of the existing plans. A discussion needs to be held about what activities will be undertaken with the Urban Renewal Plans. One of the issues involved with revising the existing plans is the requirement that the plans may be revised “provided that, if it is changed, modified, or amended after the lease or sale of real property in the project area by the Authority, the change, modification, or amendment must be consented to by the redeveloper or redevelopers of the real property affected thereby, or his successors in interest.” 99.430 The LCRA purchased land not only for public use, but also sold land to private entities and individuals for redevelopment. It is unclear how many parcels of land were sold to private entities or individuals. In reviewing LCRA Law, it appears that the consent provision may only apply to “redevelopers” and not to all entities or individuals who purchased land from the LCRA. Section 99.320 defines a “redeveloper” as “any person, partnership, or public or private corporation or agency which enters or proposes to enter into a redevelopment or rehabilitation or renewal contract.” (99.320) Although it is probable that each sale of property by the LCRA contained redevelopment contract provisions, review of LCRA transactions will need to be conducted to verify the content of each sale contract. A legal opinion should also be sought regarding who must be consulted and consent to changes to the redevelopment plan. The existing Urban Renewal Plans contain provisions which were required as part of the Federal Urban Renewal Projects and State Statutes. State Statutes state an Urban Renewal Plan must contain the following items: a) The boundaries of the land clearance or urban renewal project area, with a map showing the existing uses and condition of the real property therein; (b) A Land Use Plan showing proposed uses of the area; (c) Information showing the standards of population densities, land coverage and building intensities in the area after redevelopment or urban renewal; (d) A statement of the proposed changes, if any, in zoning ordinances or maps, street layouts, street levels or grades, building codes and ordinances; (e) A statement as to the kind and number of additional public facilities or utilities which will be required in the area after redevelopment or urban renewal; and (f) A schedule indicating the estimated length of time needed for completion of each phase of the plan (99.430.1 (4)).
• Review by Planning Commission. After each Urban Renewal Plan has been revised, the Planning Commission must be given an opportunity to review and make recommendations as to each plan’s conformity with the City’s Comprehensive Plan. Written comments are provided to the LCRA.
• LCRA Determinations. The LCRA must then determine that the proposed uses within the proposed area are consistent with the Comprehensive Plan. (99.430.1 (6)) In addition, the LCRA must determine that the proposed plan will promote health, safety, morals, order, convenience, prosperity, and the general welfare of the community (99.430.1 (6)).
• Submission of the Urban Renewal Plans to the City Council. After meeting the statutory requirements, the LCRA would submit the revised Redevelopment Plans to the City Council with the written recommendations from the Planning Commission, the LCRA recommendations, methods and costs for completing the plan, anticipated proceeds and revenues from disposal of land to developers, proposed financing, relocation plan, and timeline for completion (99.430.1 (7)).
• Public Hearing on Urban Renewal Plans. The City Council would then hold a public hearing, subject to the appropriate public notice, at which all interested parties must be given an opportunity to speak (99.430.1 (8)).
• Approval or Rejection by City Commission. Subsequent to the public hearing the City Council may approve the proposed revised Urban Redevelopment Plans if it finds that the plans are feasible and in conformity with the general plan for the development of the community as a whole (99.430.2 (9). A redevelopment or urban renewal plan which has not been approved by the governing body when recommended by the authority may be recommended again with any modifications deemed advisable.

Next Steps

Staff seeks direction from the City Council on whether or not to bring forward enabling legislation to resurrect the LCRA for purposes of residential redevelopment.