Land Clearance for Redevelopment Authority
The Land Clearance for Redevelopment Authority (LCRA) provides incentives to encourage investment and the removal of blight and blighting conditions within designated urban renewal areas. The LCRA designates urban renewal areas and associated redevelopment plans. It has the ability to authorize property tax abatement for redevelopment projects that conform to an approved redevelopment plan. Membership information is below and agenda information is available in the Agenda Center.
Sections 99.300 through 99.715 RSMo.
Within an approved redevelopment area, the Land Clearance for Redevelopment Authority may undertake the following types of activities:
- Building construction and rehabilitation
- Blight removal activities
- Land acquisition
- Land disposition
If approved as part of a redevelopment plan, the LCRA may acquire property through the use of eminent domain.
The statute defines "blighted area" as "an area which, by reason of the predominance of defective or inadequate street layout, insanitary or unsafe conditions, deterioration of site improvements, improper subdivision or obsolete platting, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, retards the provision of housing accommodations or constitutes an economic or social liability or a menace to the public health, safety, morals, or welfare in its present condition and use."
- Property tax abatement - 100% of the taxes on the increase in assessed value of both land improvements for 10 years. During the abatement period, the property owner continues to pay taxes on the land and improvements that existed prior to redevelopment.
- Bonds - The LCRA may issue bonds to finance redevelopment and blight remediation.
The Land Clearance for Redevelopment Authority is governed by a board of 5 commissioners that are appointed by the Mayor and confirmed by the City Council. Commissioners serve 3 year terms.
The LCRA may prepare blight studies and redevelopment plans, review privately-prepared blight studies and redevelopment plans, and recommend their approval to City Council. For site-specific redevelopment plans, the applicant must submit the site plan for the project to the City for review through the pre-application processprior to submitting it to the LCRA for review. Within designated redevelopment areas, the LCRA reviews redevelopment projects for consistency with the adopted redevelopment plan. Projects that conform to the plan are entitled to property tax abatement equal to 100% of the increase in assessed value of the land and improvements for a ten-year period. In Casey's Marketing Co. v. Land Clearance for Redevelopment Authority of Independence, Mo., 101 S.W.3d 23 (Mo. App. W.D.) the Court determined that under Section 99.700 RSMo., if the property has been blighted and the proposal meets the redevelopment plan, the developer is entitled to tax abatement as a matter of right.
Land Clearance for Redevelopment Authority Policies
- Proposed redevelopment plans must be reviewed by the Planning and Zoning Commission and found to be consistent with the City of Springfield Comprehensive Plan.
- Designation of redevelopment areas and adoption of redevelopment plans will be limited to urban core areas where blighting factors are most severe.
- Proposals for redevelopment plans and property tax abatement pursuant to Chapter 99 RSMo. will be strongly discouraged in approved Tax Increment Financing districts because tax abatement conflicts with the intent of the TIF statute to capture the incremental increase to fund TIF improvements.
- Applicants for property tax abatement will be required to enter into a cooperative agreement with the City of Springfield, covenanting that the property will continue to be used in a manner consistent with the redevelopment plan throughout the abatement period or the abatement will be subject to termination.
All projects will be reviewed for consistency with both the policies for the desired incentive as well as the general policies listed on the Overview and General Policies page.