Monett Council considers urban redevelopment tool for projects

Monett officials and legal counsel have held five presentations around the city about adopting Chapter 353, otherwise known as the Urban Redevelopment Corporations Law, as a tool to assist property owners in undertaking projects to improve their land through tax abatement.
City Administrator Mickey Ary led a presentation at the Chamber of Commerce office on Oct. 9. Final presentations were held Oct. 23 at both noon and 6 p.m. in the events center at the Monett Museum. Lindsey Kolisch, a partner in the Lauber Municipal Law firm, was set to speak. All the property owners potentially impacted by the program received invitations to attend one of these meetings.
The designated area eyed for this program runs east to west from 13th Street to Central Avenue, and from Bond Street on the north to Front Street, which parallels the railroad tracks, marking the end of the downtown business district.
“The [Monett City] Council wanted to pursue and continue momentum revitalizing the downtown area,” Ary said.
He described the program as similar tax increment financing (TIF) in that property taxes are deferred to pay for improvements. Unlike TIFs, where a TIF commissioners control the funds, projects under Chapter 353 are proposed by the property owners themselves. If they fit within the framework developed by the committee overseeing Chapter 353 in Monett, increases in property taxes created by upgrades would be deferred entirely for the first 10 years, then at a percentage rate to be determined for the following 15 years.
Ary noted the program works under a framework detailed by the state law. If the city council finds interest in the plan, a committee of three to seven people will be named by city council members to define a plan that’s workable in Monett, rather than using a formula adopted by another town. Proposals approved by the committee could proceed. Ary noted the committee would decide limits, such as how small or large a project would qualify.
A typical plan could include a building addition, a roof repair, or interior renovations that would make a building suitable for a different kind of business.
Must sign property over to corporation for 24 hours
The other unusual wrinkle in Chapter 353 calls for property owners, upon receiving authorization to undertake a project worthy of tax deferment, to sign their property over to a corporation formed by the committee for 24 hours. In that timeframe, the corporation will declare if the property qualifies for tax deferment. Then the property will be returned to the owner.
Other cities, such as Harrisonville, have used Chapter 353 for both residential and commercial properties in its downtown. Ary noted that the formula to qualify under Chapter 353 can be reviewed and modified to make it more appealing if the initial framework does not seem effective. He expected the city would declare an end date for when plans could qualify.

Randall opposes Chapter 353
Monett businessman Mike Randall has to date waged a one-person campaign against adopting Chapter 353. A primary opponent to the proposed roundabout at Central Avenue and Broadway and a downtown property owner, Randall has pushed the city to disavow any use of eminent domain. He argues the “corporation” ingredient and the designation of “blight” can be abused. A property owner, he suggests, has no avenue to have a property declared “unblighted” if a designation over a broad geographic area is made. Other cities, he noted, have used eminent domain to advance redevelopment projects on “slum” areas. He cautions the city council continues to appoint the same people to committees overseeing projects and can exercise influence over its decisions.  
Ary suggested such criticisms were premature without the rules for how Chapter 353 would operate having yet been written. Taxing entities impacted by deferring taxes, such as Barry County and the Monett school district, would have representation on the oversight committee, just like in a TIF.  
“I’ve been here since March,” Ary said. “I’m seeing improvements downtown. This is a way of generating momentum.”
No action by the Monett City Council is expected before the Nov. 13 monthly meeting.