TITLE: CONCERNING THE ACQUISITION OF PROPERTY BY LOCAL GOVERNMENTS THROUGH URBAN RENEWAL.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: 90 days after adjournment unless a referendum petition is filed.
Appropriation Summary for FY 1999-2000: None
Local Government Impact: May affect a local government's ability to develop new or additional revenue and minimize expenditures when establishing an urban renewal project for a blighted area.

This bill revises the"Urban Renewal Law" by redefining "blighted area" and by requiring that an area must meet at least four specified conditions in order to be considered a blighted area. The bill authorizes every urban renewal authority to make reasonable relocation payments to displaced individuals, families, and business concerns for moving expenses and actual direct losses of property including, for business concerns, goodwill and lost profits resulting from the displacement.

The boundaries of a blighted area are to be narrowly drawn and shall exclude any area that would not qualify as a blighted area on its own merit, or if the area is the subject of substantial on-going private investment. The bill requires the governing body to hold a public hearing on an urban renewal plan within 30 days after public notice. The bill specifies certain additional conditions that must be met for the governing body to approve an urban renewal plan after the public hearing has been held.

This bill further restricts a municipality's authority to invoke urban renewal powers by requiring a blighted area to meet a minimum of four criteria rather than one as under current law. The bill further restricts the conditions that must be met for a governing body to approve an urban renewal plan. Additionally, the provisions regarding relocation of displaced businesses may require a municipality to compensate a business for goodwill and lost profits due to the relocation.

The bill does not define or provide a mechanism as to how the amount of compensation should be determined. Therefore, this fiscal note cannot assess how the amounts of goodwill and lost profits would be determined.

The provisions of this bill do not create a new source of local government revenue or expenditures. However, the bill may affect a local government's ability to develop new revenue and minimize expenditures when establishing an urban renewal project for a blighted area.

This fiscal note would imply no new state appropriations are required for FY 1999-2000.