Bill Text: MS HB1304 | 2010 | Regular Session | Introduced
Bill Title: Business Improvement District Act; bring forward sections for purposes of amendment.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2010-02-02 - Died In Committee [HB1304 Detail]
Download: Mississippi-2010-HB1304-Introduced.html
MISSISSIPPI LEGISLATURE
2010 Regular Session
To: Ways and Means
By: Representative DeLano
House Bill 1304
AN ACT TO BRING FORWARD SECTIONS 21-43-101 THROUGH 21-43-133, MISSISSIPPI CODE OF 1972, WHICH ARE THE BUSINESS IMPROVEMENT DISTRICT ACT, FOR PURPOSES OF AMENDMENT; TO BRING FORWARD SECTION 21-45-9, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES MUNICIPALITIES TO ISSUE TAX INCREMENT BONDS UNDER THE TAX INCREMENT FINANCING ACT; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 21-43-101, Mississippi Code of 1972, is brought forward as follows:
21-43-101. Sections 21-43-101 through 21-43-133 shall be known and may be cited as the "Business Improvement District Act."
SECTION 2. Section 21-43-103, Mississippi Code of 1972, is brought forward as follows:
21-43-103. The Legislature finds that:
(a) The business districts within many municipalities in the state are in a deteriorated condition;
(b) This deteriorated condition affects the economic and general welfare of the people of the State of Mississippi;
(c) Establishment of business improvement districts is an effective means for restoring and promoting business activity; and
(d) It is the intent of the Legislature to provide for a process for establishing these districts.
SECTION 3. Section 21-43-105, Mississippi Code of 1972, is brought forward as follows:
21-43-105. For the purposes of Sections 21-43-101 through 21-43-133 the following terms shall have the meanings ascribed herein unless the context shall otherwise require:
(a) "District" means a business improvement district established pursuant to Sections 21-43-101 through 21-43-133.
(b) "District management group" means an established and independent Mississippi nonprofit corporation and may also include a local Chamber of Commerce, a downtown development corporation, a Main Street Project or a department of a local municipality as determined solely by a simple majority of the property owners included in the district.
(c) "District plan" means a set of goals and strategies as collectively determined by a majority of the property owners included in the district and as incorporated within Sections 21-43-101 through 21-43-133.
(d) "Improvements" means any capital project constructed within the public areas, with the approval of the municipality, for any business improvement district or services established under Sections 21-43-101 through 21-43-133 to improve the appearance or economic functioning of property located within the district including, but not limited to:
(i) Parks and related facilities;
(ii) Sidewalks, street curbing, street medians, planting areas, underground utilities, lighting standards or fountains;
(iii) Trees, shrubs, flowers or other vegetation;
(iv) Security services which may include assistance to public law enforcement through employment of private security personnel and the purchase of equipment or technology;
(v) Economic development services and assistance including, but not limited to, promotion of business, retail or industrial development developer recruitment, business recruitment, business marketing and business retention;
(vi) Parking management;
(vii) Street and sidewalk cleaning;
(viii) Recreational and/or cultural activities;
(ix) Training programs for employees of businesses within the district;
(x) Any other services, events or activities which will enhance the economic prosperity, enjoyment, appearance, image and safety of the district;
(xi) Refuse collection and disposal services;
(xii) The production and marketing of special events and festivals;
(xiii) Management of public facilities;
(xiv) Fire prevention services;
(xv) Water and sewer system enhancement;
(xvi) Drainage enhancements;
(xvii) Signage installation and removal;
(xviii) Planning studies;
(xix) Marketing studies;
(xx) Tourism development services; and
(xxi) Collective community child care centers.
(e) "Property owner" means that person or persons, entity or entities possessing a majority of the ownership interest in a piece of taxable real property.
(f) "Tax exempt properties" means properties which are exempt from certain real property taxes pursuant to Section 27-31-1.
SECTION 4. Section 21-43-107, Mississippi Code of 1972, is brought forward as follows:
21-43-107. There is hereby authorized the creation of business improvement districts which shall be established in accordance with the procedures described in Sections 21-43-101 through 21-43-133.
SECTION 5. Section 21-43-109, Mississippi Code of 1972, is brought forward as follows:
21-43-109. All areas included in a business improvement district must be zoned for some use other than residential. Residential uses may be included if the property is zoned for commercial or industrial use and the property is not owner-occupied as a homestead. Properties comprising a business improvement district must be contiguous to the other properties to be benefited in the district with the exception of public streets, alleys, parks and other public rights-of-way and tax exempt properties within the district boundaries.
SECTION 6. Section 21-43-111, Mississippi Code of 1972, is brought forward as follows:
21-43-111. Notice shall be given to the municipality in which the district is to be established when an effort is begun by a contiguous group of nonresidentially zoned local property owners to form a business improvement district. Upon delivery of a petition to the clerk of the municipality, signed by at least twenty percent (20%) of the property owners in an area proposing to establish a business improvement district, efforts can begin to form a business improvement district pursuant to Sections 21-43-101 through 21-43-133.
SECTION 7. Section 21-43-113, Mississippi Code of 1972, is brought forward as follows:
21-43-113. In order to establish a business improvement district, and upon establishment, every fifth year thereafter, those property owners which make up the area of the proposed district shall be notified of a meeting by United States mail no less than ten (10) days prior to the scheduled date of the meeting. Notification shall include the specific location, date and time of the meeting. The goal of the meeting shall be to develop a district plan for the upcoming five-year period. Such plan shall be agreed upon by a majority of those property owners in attendance at the meeting. Such district plan shall include the following:
(a) A description of the boundaries of the district sufficient to identify the lands included;
(b) The improvements proposed and the maximum cost thereof for each of the coming five (5) years;
(c) The total amount proposed to be expended for improvements for and in the district during the upcoming five (5) years;
(d) The proposed source or sources of financing and funding for the improvements;
(e) The proposed target dates for beginning the implementation of the improvements;
(f) The naming of the district management group for the upcoming five (5) years; and
(g) A listing of the individual properties to be included in the district with any assessment computed and identified for each property based upon gross square footage of buildings and unimproved real estate. The plan may provide that tax exempt properties be included in the district but not be subject to any assessment.
SECTION 8. Section 21-43-115, Mississippi Code of 1972, is brought forward as follows:
21-43-115. All property owners of record in the proposed district as of the date of initial notice given as provided in Section 21-43-111, shall be eligible to participate in the process to approve or reject the district plan and the proposed assessment for properties in the district. Votes of property owners within the proposed district shall be weighted in proportion to the amount of the assessment against properties in the district; provided, however, that in no case shall the total number of votes assigned to any one such property owner, through common ownership of property, be equal to more than one-third (1/3) of the total number of votes which may be cast.
SECTION 9. Section 21-43-117, Mississippi Code of 1972, is brought forward as follows:
21-43-117. (1) For initial creation of the district, reauthorization of the district at the end of each five-year period, amendment to the district plan within the five-year plan period or modification of the boundaries of the district at the end of a five-year period, the clerk of the municipality shall notify all property owners to be included in the proposed district of a public hearing to review the plan and receive comment about the process for accepting or rejecting the plan. Following a public hearing, the governing authority of the municipality shall set an election date not more than sixty (60) days from the date of the public hearing. The ballot shall clearly state the issue to be decided. Only property owners of record as of the date of initial notice given as provided in Section 21-43-111 shall be eligible to participate in any such election.
(2) Notice of an election to create, continue, amend or extend a district shall be:
(a) Mailed to each of the district property owners of record thirty (30) days prior to the election, and
(b) Published at least twice in a newspaper of general circulation in the municipality, the first publication shall be not less than ten (10), nor more than thirty (30) days before the date for the election. The notice shall include a copy of the plan, a ballot for the election and a notice about the time and date for the election.
(3) Not less than ten (10) nor more than thirty (30) days before the date set for the election, the governing authority of the municipality shall cause a copy of the plan and the ballot to be posted in the lobby of its city hall.
(4) Ballots shall be marked, signed and submitted by the eligible property owner to the clerk of the municipality by the date designated on the ballot.
(5) The clerk of the municipality shall notify the property owners in the district of the result.
(6) If the plan is approved by seventy percent (70%) of the property owners, the mayor of the municipality shall review the district plan to ensure its compliance with the provisions of Sections 21-43-101 through 21-43-133.
(7) The municipality shall disburse the proceeds collected from the assessment to the designated district management group within thirty (30) days after the assessment is due.
SECTION 10. Section 21-43-119, Mississippi Code of 1972, is brought forward as follows:
21-43-119. A district plan shall be deemed adopted and ready for implementation upon written ballot approval by seventy percent (70%) of the property owners in the district. Reauthorization, amendments of the district plan or modification of boundaries shall also be subject to written ballot approval by seventy percent (70%) of the eligible property owners.
SECTION 11. Section 21-43-121, Mississippi Code of 1972, is brought forward as follows:
21-43-121. (1) Each district established pursuant to the provisions of Sections 21-43-101 through 21-43-133, must designate in its district plan an existing local nonprofit organization or department of local government as the district management group for execution of day to day activities for the district and for implementation of the district plan. Designation of the district management group shall be decided solely by the property owners affected by the creation of the district. Selection of a district management group shall be included in the district plan voted upon by the property owners in the district.
(2) Reasonable management fees, operational reimbursements, administrative costs and program implementation fees may be charged to the district by the district management group during the duration of an approved district plan.
(3) The district management group may, in its discretion, contract as needed with outside third party sources for specialty services needed to implement the district plan.
SECTION 12. Section 21-43-123, Mississippi Code of 1972, is brought forward as follows:
21-43-123. (1) A business improvement district may be funded in whole or in part by an assessment authorized pursuant to this section. Such assessment shall be in addition to any taxes or assessments that may be imposed on property that is included in the district.
(2) The assessment shall be levied on the property in the district based upon the gross square footage of the property. The district plan shall set the amount that shall be assessed on each square foot of property. A district plan may authorize that the assessment per square foot for buildings may be at a different rate than that for land; provided, however, that the square foot rate for each type of property shall be uniform.
(3) Upon presentation of a district plan by a district created pursuant to Sections 21-43-101 through 21-43-133, the governing authorities of a municipality shall, at the same time and in the same manner as ad valorem taxes are levied, levy the assessment provided for in this section on the property in the district in the amount specified in the district plan.
(4) Assessments shall constitute a lien upon the respective lots or parcels of land and other real property upon which they are levied, superior to all other liens except those for state and county taxes.
(5) In addition to the assessment authorized under this section, a business improvement district shall also be authorized and empowered to apply for and receive public and private grants and to accept any monetary contribution or donation of real or personal property.
SECTION 13. Section 21-43-125, Mississippi Code of 1972, is brought forward as follows:
21-43-125. The expenses incurred in the construction, designing, planning, marketing, administration or operation of any improvement in a district shall be financed in accordance with the district plan. Upon the establishment, reauthorization, amendment or extension of the district, property owners within the district shall be charged the assessment pursuant to the plan. Improvements must be in addition to or an enhancement of those provided to the district by the municipality prior to the establishment of the district.
SECTION 14. Section 21-43-127, Mississippi Code of 1972, is brought forward as follows:
21-43-127. (1) The assessment upon benefited real property pursuant to Sections 21-43-101 through 21-43-133 shall be imposed as established in the district plan.
(2) The governing authorities of the municipality shall annually certify to the tax collector, or other officer charged with the duty of collecting taxes in the municipality, the annual installment of assessment due from each tract of land against which an assessment has been levied. The collector shall thereupon enter upon the annual tax roll of the municipality, in a separate column, the amount of the installment to be collected for each tract of land assessed, and the collector shall collect such installment at the same time he collects the annual municipal tax.
(3) All assessments levied under the provisions of Sections 21-43-101 through 21-43-133 shall be enforced in the same manner in which the payment of other municipal taxes is enforced, and all statutes regulating the collection of other municipal taxes shall apply to the enforcement and collection of the assessments levied under the provisions of Sections 21-43-101 through 21-43-133.
SECTION 15. Section 21-43-129, Mississippi Code of 1972, is brought forward as follows:
21-43-129. The proceeds of any assessment imposed pursuant to an approved district plan shall be held by the chief fiscal officer of the municipality until disbursed to the designated district management group. A business improvement district shall operate on the same fiscal year as that of the municipality. None of the proceeds collected pursuant to Sections 21-43-101 through 21-43-133 shall be used for any purposes other than those set forth in the approved district plan. Improvements provided by a district using district funds may be undertaken only when the service, events, project or activity undertaken is not for the sole benefit of any particular property owner or other private party.
SECTION 16. Section 21-43-131, Mississippi Code of 1972, is brought forward as follows:
21-43-131. The initial authorization for any business improvement district shall be for five (5) years. During the last twelve (12) months of the fifth year of the authorization, a new district plan must be developed which meets all of the initial requirements of the district plan plus reauthorizes the district for another five (5) years. Reauthorization requires the same approval process as initial establishment and authorization of the district. Should the district fail to receive reauthorization from the affected property owners in the district, the business improvement district will cease to exist at the conclusion of the most recently approved five-year period or as soon thereafter as any outstanding indebtedness is satisfied. The ability to reauthorize rests solely with the affected property owners in the district.
SECTION 17. Section 21-43-133, Mississippi Code of 1972, is brought forward as follows:
21-43-133. (1) Any district established or extended pursuant to the provisions in Sections 21-43-101 through 21-43-133, which has satisfied all indebtedness incurred to accomplish any of the purposes of the district, may be dissolved by the governing authority of the municipality upon:
(a) Written and certified petition from the property owners within the district who collectively represent more than seventy percent (70%) of the total assessed valuation of all benefited real property in the boundaries of the district, or
(b) The district plan terminates when no reauthorization has occurred as set forth in Sections 21-43-101 through 21-43-133.
(2) Upon dissolution of a business improvement district, any assets of the district remaining shall be transferred to the municipality.
SECTION 18. Section 21-45-9, Mississippi Code of 1972, is brought forward as follows:
21-45-9. Any governing body may issue tax increment bonds, the final maturity of which shall not extend beyond thirty (30) years, for the purpose of financing all or a portion of the cost of a redevelopment project within the boundaries of the municipality, funding any reserve which the governing body may deem advisable in connection with the retirement of the proposed indebtedness and funding any other incidental expenses involved in incurring such indebtedness. The debt service of indebtedness incurred pursuant to this section shall be provided from the added increments of municipal and county ad valorem tax revenues or any portion of the sales taxes, or both, to result from any such redevelopment project and shall never constitute an indebtedness of the municipality within the meaning of any state constitutional provision or statutory limitation and shall never constitute nor give rise to a pecuniary liability of the municipality or a charge against its general credit or taxing powers.
Said bonds may be authorized by resolution or resolutions of the governing body, and may be issued in one or more series, may bear such date or dates, mature at such time or times, bear interest at such rate or rates, payable at such times, be in such denominations, be in such form, be registered, be executed in such manner, be payable in such medium of payment, at such place or places, be subject to such terms of redemption, with or without premium, carry such conversion or registration privileges and be declared or become due before the maturity date thereof, as such resolution or resolutions may provide; however, such bonds shall not bear a greater interest rate to maturity than that allowed under Section 75-17-101. Said bonds shall be sold for not less than par value plus accrued interest at public sale in the manner provided by Section 31-19-25 or at private sale, in the discretion of the governing body. The lowest interest rate specified for any bonds issued shall not be less than seventy percent (70%) of the highest interest rate specified for the same bond issue. Said bonds may be repurchased by the municipality out of any available funds at a price not to exceed the principal amount thereof and accrued interest, and all bonds so repurchased shall be cancelled. In connection with the issuance of said bonds, the municipality shall have the power to enter into contracts for rating of the bonds by national rating agencies; obtaining bond insurance or guarantees for such bonds and complying with the terms and conditions of such insurance or guarantees; make provision for payment in advance of maturity at the option of the owner or holder of the bonds; covenant for the security and better marketability of the bonds, including, without limitation, the establishment of a debt service reserve fund and sinking funds to secure or pay such bonds; and make any other provisions deemed desirable by the municipality in connection with the issuance of said bonds.
If a governing body desires to issue tax increment financing bonds under the Regional Economic Development Act, the governing body also shall comply with any requirements provided therein.
In connection with the issuance of said bonds, the municipality may arrange for lines of credit with any bank, firm or person for the purpose of providing an additional source of repayment for such bonds and amounts drawn on such lines of credit may be evidenced by bonds, notes or other evidences of indebtedness containing such terms and conditions as the municipality may determine; provided, however, that such bonds, notes or evidences of indebtedness shall be secured by and payable from the same sources as are pledged to the payment of said bonds which are additionally secured by such line of credit, and that said bonds, notes or other evidences of indebtedness shall be deemed to be bonds for all purposes of this chapter. Pending the preparation or execution of definitive bonds, interim receipts or certificates, or temporary bonds may be delivered to the purchaser or purchasers of said bonds. Any provision of law to the contrary notwithstanding, any bonds, if any, issued pursuant to this chapter shall possess all of the qualities of negotiable instruments.
The municipality may also issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the municipality may determine. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issuing the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by any of the municipality's resolutions, trust indenture or other security instruments. The issuance of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders and the rights, duties and obligations of the municipality in respect of the same shall be governed by the provisions of this chapter relating to the issuance of bonds other than refunding bonds, insofar as the same may be applicable.
Before incurring any debt pertaining to a redevelopment project incorporating a tax increment financing plan the governing body may, but shall not be required to, secure an agreement from one or more developers obligating such developer or developers:
(a) To effect the completion of all or any portion of the buildings or other facilities or improvements, as described in the redevelopment project, at no cost to the municipality;
(b) To pay all or any portion of the real property taxes due on the project in a timely manner; and
(c) To maintain and operate all or any portion of the buildings or other facilities or improvements of the project in such a manner as to preserve property values.
No breach of any such agreement shall impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers.
Additionally, the municipality may enter into an agreement with the developer under which the developer may construct all or any part of the redevelopment project with private funds in advance of issuance of the bonds and may be reimbursed by the municipality for actual costs incurred by the developer upon issuance and delivery of the bonds and receipt of the proceeds, conditioned upon dedication of redevelopment project by the developer to the municipality to assure public use and access. This condition shall not apply to the privately owned portion of a project for which the Mississippi Development Authority has issued a certificate of convenience and necessity pursuant to the Regional Economic Development Act. In addition, this condition shall not apply to the privately owned portion of a redevelopment project where the governing body of a municipality makes a finding that it is in the best interest of such municipality that such condition shall not apply.
SECTION 19. This act shall take effect and be in force from and after July 1, 2010.
