Senate File 10 - Introduced SENATE FILE 10 BY LOFGREN , DAWSON , and WEBSTER A BILL FOR An Act relating to the creation of land redevelopment trusts. 1 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 2 TLSB 1251XS (7) 90 js/ns
S.F. 10 DIVISION I 1 LAND REDEVELOPMENT TRUSTS 2 Section 1. NEW SECTION . 358A.1 Short title. 3 This chapter shall be known and may be cited as the Iowa 4 Land Redevelopment Trust Act . 5 Sec. 2. NEW SECTION . 358A.2 Legislative intent. 6 The general assembly finds and declares all of the 7 following: 8 1. Iowas communities are important to the social and 9 economic vitality of this state. Whether urban, suburban, 10 or rural, many communities are struggling with dilapidated, 11 abandoned, blighted, and tax-delinquent properties. 12 2. Citizens of Iowa are affected adversely by dilapidated, 13 abandoned, blighted, and tax-delinquent properties, 14 including properties that have been abandoned due to mortgage 15 foreclosure. 16 3. Dilapidated, abandoned, blighted, and tax-delinquent 17 properties impose significant costs on neighborhoods and 18 communities by lowering property values, increasing fire 19 and police protection costs, decreasing tax revenues, and 20 undermining community cohesion. 21 4. There is an overwhelming public need to confront the 22 problems caused by dilapidated, abandoned, blighted, and 23 tax-delinquent properties; to return properties that are in 24 non-revenue-generating, non-tax-producing status to productive 25 status in order to revitalize urban, suburban, and rural 26 areas, provide affordable housing, and attract new industry; 27 and to create jobs for the citizens of this state through the 28 establishment of new tools that enable communities to turn 29 abandoned spaces into vibrant places. 30 5. Land redevelopment trusts are one of the tools that 31 communities can use to facilitate the return of dilapidated, 32 abandoned, blighted, and tax-delinquent properties to 33 productive use. 34 Sec. 3. NEW SECTION . 358A.3 Definitions. 35 -1- LSB 1251XS (7) 90 js/ns 1/ 23
S.F. 10 As used in this chapter, unless the context otherwise 1 requires: 2 1. Abandoned means a parcel is vacant or a building on 3 a parcel has remained vacant for a period of at least six 4 consecutive months and is in need of rehabilitation. 5 2. Blighted means a vacant parcel or a parcel containing 6 a building is unsafe with objectively determinable signs of 7 deterioration sufficient to constitute a threat to human 8 health, safety, and welfare. 9 3. Board means the board of directors of a land 10 redevelopment trust. 11 4. Dilapidated means a parcel containing a building is in 12 a state of deterioration as a result of age or neglect. 13 5. Geographical boundaries of the land redevelopment trust 14 means the jurisdiction of the municipality that created the 15 land redevelopment trust or in the case of any combination 16 of municipalities creating a single land redevelopment 17 trust or joining an existing land redevelopment trust, the 18 combined jurisdictions of the municipalities. In the case 19 of a land redevelopment trust created by a county, such land 20 redevelopment trusts jurisdiction includes only the area of 21 the county not included within an incorporated city. 22 6. Land redevelopment trust means an entity created under 23 section 358A.4. 24 7. Local employee means a person employed by a 25 municipality of this state and does not include an independent 26 contractor. 27 8. Local official means an officeholder of a municipality 28 of this state. 29 9. Municipality means a city, county, or township. 30 10. Rehabilitation means the action of restoring to its 31 former condition something that has deteriorated or has been 32 damaged. 33 Sec. 4. NEW SECTION . 358A.4 Creation. 34 1. A land redevelopment trust organized under this chapter 35 -2- LSB 1251XS (7) 90 js/ns 2/ 23
S.F. 10 shall be a body corporate and politic, with the name under 1 which it was organized, and may sue and be sued in its own 2 name, contract and be contracted with, acquire and hold real 3 and personal property necessary for corporate purposes, adopt a 4 corporate seal and alter the same at pleasure, and exercise all 5 the powers conferred in this chapter. 6 2. a. Any municipality may create a land redevelopment 7 trust. Creation shall be by ordinance in the case of a city 8 or by resolution in the case of a county or township. The 9 ordinance or resolution shall make reference to the purposes 10 listed under section 358A.2. 11 b. Any municipality may create a land redevelopment 12 trust in combination with one or more other municipalities. 13 Municipalities seeking to create such a land redevelopment 14 trust shall comply with the procedures set forth in chapter 15 28E. A land redevelopment trust shall be considered a public 16 agency for the purposes of chapters 28E and 28H. 17 c. (1) Any city or township passing an ordinance or a 18 resolution or entering into a chapter 28E agreement creating 19 a land redevelopment trust pursuant to this section shall 20 promptly deliver copies of the ordinance, resolution, or 21 agreement to the auditor, treasurer, and the county attorney of 22 each county in which the municipality is located. 23 (2) Any board of supervisors adopting a resolution 24 or entering into a chapter 28E agreement creating a land 25 redevelopment trust pursuant to this section shall deliver a 26 copy of the resolution or agreement to the county auditor, 27 county treasurer, and county attorney. 28 3. a. The enabling ordinance or resolution, or chapter 29 28E agreement, shall set forth any restrictions or required 30 procedures that exceed those set forth in this chapter. 31 b. A chapter 28E agreement relating to a land redevelopment 32 trust shall include procedures for the distribution of assets 33 between participating municipalities upon the dissolution of 34 the land redevelopment trust. 35 -3- LSB 1251XS (7) 90 js/ns 3/ 23
S.F. 10 c. Unless otherwise limited in the ordinance, resolution, 1 or chapter 28E agreement, the powers and procedures of a newly 2 created land redevelopment trust shall be the powers and 3 procedures specified in this chapter. 4 4. A council of governments established in section 28H.1 5 shall not form a land redevelopment trust. However, pursuant 6 to a chapter 28E agreement, a council of governments may 7 provide community development services, planning services, and 8 technical assistance to a land redevelopment trust. 9 Sec. 5. NEW SECTION . 358A.5 Board of directors. 10 1. a. A land redevelopment trust shall have a board of 11 directors in which all powers of the land redevelopment trust 12 shall be vested. 13 b. Unless restricted by the enabling ordinance, resolution, 14 or agreement as specified in section 358A.4, the provisions of 15 this section apply to the governance of a land redevelopment 16 trust. 17 2. The membership of the board shall be established in the 18 bylaws of the land redevelopment trust. 19 3. a. A local official may serve as a board member, and 20 service as a board member shall neither terminate nor impair 21 the local officials office. 22 b. A local employee shall be eligible to serve as a board 23 member. 24 4. Board members shall serve without compensation. 25 However, the board may reimburse a member for expenses actually 26 incurred in the performance of duties on behalf of the land 27 redevelopment trust as provided in bylaws adopted pursuant to 28 subsection 5. 29 5. a. Upon creation by the enabling ordinance, resolution, 30 or agreement as specified in section 358A.4, the board shall 31 adopt bylaws addressing matters necessary to govern the conduct 32 of the land redevelopment trust and shall meet as the bylaws 33 prescribe. 34 b. When in actual conflict, the ordinances, resolutions, or 35 -4- LSB 1251XS (7) 90 js/ns 4/ 23
S.F. 10 agreements described in section 358A.4 shall control over any 1 bylaws adopted by the board. 2 6. Except as set forth in the enabling ordinance, 3 resolution, or agreement, or as set forth by a land 4 redevelopment trust in its bylaws, an action of the board must 5 be approved by the affirmative vote of a majority of the board 6 present and voting. 7 7. Members of the board shall not be liable personally on 8 the obligations of the land redevelopment trust, and rights of 9 creditors of a land redevelopment trust shall be solely against 10 the land redevelopment trust. 11 Sec. 6. NEW SECTION . 358A.6 Staff. 12 1. A land redevelopment trust may employ or contract for 13 the employment of any persons the land redevelopment trust 14 may require to fulfill the objectives of its bylaws and this 15 chapter. 16 2. An employee of the land redevelopment trust is not and 17 shall not be deemed to be an employee of the municipality for 18 whose benefit the land redevelopment trust is organized solely 19 because the employee is employed by the land redevelopment 20 trust. 21 3. A land redevelopment trust is an employer as defined in 22 section 97B.1A, subsection 9, paragraph a , and an employee 23 of the land redevelopment trust is an employee as defined in 24 section 97B.1A, subsection 8. 25 Sec. 7. NEW SECTION . 358A.7 Powers. 26 1. In furtherance of the purposes set forth in section 27 358A.2, a land redevelopment trust shall have the power to 28 perform all actions necessary or convenient to carry out the 29 purposes set forth in this chapter, including but not limited 30 to all of the following powers: 31 a. To borrow money for any of the purposes of the land 32 redevelopment trust by means of loans, lines of credit, or 33 any other financial instruments or securities other than 34 through the issuance of bonds, debentures, or notes. A 35 -5- LSB 1251XS (7) 90 js/ns 5/ 23
S.F. 10 land redevelopment trust may secure its indebtedness by 1 mortgage, pledge, deed of trust, or other lien on its property, 2 franchises, rights, and privileges of every kind and nature 3 or any part thereof or interest therein. The moneys borrowed 4 by the land redevelopment trust are payable as to principal, 5 interest, and any other amounts owed the lender solely from 6 the proceeds from the net revenues of the land redevelopment 7 trust and are not a debt of or charge against any of the 8 municipalities that formed the land redevelopment trust within 9 the meaning of any constitutional or statutory debt limitation 10 provision. For purposes of this paragraph: 11 (1) Gross revenues means the income and receipts of the 12 land redevelopment trust from any source whatsoever, including 13 but not limited to contributions from private parties or member 14 municipalities, sale or lease of rehabilitated properties, 15 and collection of a portion of the property taxes during the 16 five-year period after sale or lease of the rehabilitated 17 property. 18 (2) Net revenues means the gross revenues of the land 19 redevelopment trust less the land redevelopment trusts 20 operating expenses. 21 b. To petition for abatement pursuant to chapter 657A. A 22 land redevelopment trust is an interested person for purposes 23 of that chapter. 24 c. To contract with the federal government, the state, 25 a subdivision of the state, and any other party, whether 26 nonprofit or for-profit. 27 2. The powers enumerated in this chapter shall not be 28 construed to limit the general powers of a land redevelopment 29 trust or a municipality. The powers granted under this chapter 30 are in addition to the powers granted by any other section of 31 the Code, but as to a land redevelopment trust, shall be used 32 only for the purposes set forth in section 358A.2. 33 Sec. 8. NEW SECTION . 358A.8 Eminent domain. 34 A land redevelopment trust shall not possess or exercise the 35 -6- LSB 1251XS (7) 90 js/ns 6/ 23
S.F. 10 power of eminent domain, including under chapters 6A and 6B. 1 Sec. 9. NEW SECTION . 358A.9 Acquisition of property. 2 1. a. Except as provided in section 358A.8, a land 3 redevelopment trust may acquire, hold, own, accept, and 4 otherwise obtain real property or interests in real property 5 by gift, devise, transfer, exchange, foreclosure, purchase, or 6 otherwise, on terms and conditions and in a manner the board 7 considers is in the best interest of the land redevelopment 8 trust and consistent with the purposes set forth in section 9 358A.2 and the land redevelopment trusts bylaws. 10 b. A land redevelopment trust may acquire tax sale 11 certificates at a tax sale conducted under chapter 446 and 12 may subsequently acquire title through tax lien foreclosure 13 procedures. A land redevelopment trust shall not be considered 14 a city or county for purposes of bidding on and acquiring tax 15 sale certificates under chapter 446, redeeming property under 16 chapter 447, or obtaining a tax sale deed under chapter 448. 17 c. The acquisition of property by the land redevelopment 18 trust shall not be governed or controlled by any regulations or 19 laws relating to procurement or acquisition of property of any 20 municipality that created the land redevelopment trust, unless 21 specifically provided in the ordinance, resolution, or chapter 22 28E agreement establishing the land redevelopment trust. 23 d. Except as otherwise provided in paragraph e , a land 24 redevelopment trust shall not own or hold real property located 25 outside the geographical boundaries of the land redevelopment 26 trust. 27 e. A land redevelopment trust may be granted, pursuant to 28 an intergovernmental contract with a political subdivision of 29 this state, the authority to manage and maintain real property 30 located within the geographical boundaries of the political 31 subdivision, but outside the geographical boundaries of the 32 land redevelopment trust. If a land redevelopment trust 33 receives a gift or devise of real property located outside of 34 the geographical boundaries of the land redevelopment trust, 35 -7- LSB 1251XS (7) 90 js/ns 7/ 23
S.F. 10 the land redevelopment trust shall dispose of such property by 1 sale or exchange as soon as reasonably practicable. 2 2. A land redevelopment trust shall maintain all of its 3 real property in accordance with the laws and ordinances of the 4 jurisdiction in which the real property is located. 5 3. A land redevelopment trust shall maintain and make 6 available for public review and inspection an inventory of all 7 real property held by the land redevelopment trust. 8 Sec. 10. NEW SECTION . 358A.10 Disposition of property. 9 1. A land redevelopment trust may convey, exchange, sell, 10 transfer, lease, grant, mortgage, or otherwise dispose of 11 interests in real property of the land redevelopment trust at 12 such times, to such persons, upon such terms and conditions, 13 and subject to such restrictions and covenants as the land 14 redevelopment trust deems necessary or appropriate to assure 15 the effective use of the land redevelopment trust in accordance 16 with the purposes of section 358A.2 and consistent with the 17 land redevelopment trusts bylaws. 18 2. A land redevelopment trust shall determine the amount 19 and form of consideration necessary to convey, exchange, sell, 20 transfer, lease, grant, mortgage, or otherwise dispose of 21 interests in real property. Consideration may take the form of 22 monetary payments and secured financial obligations, covenants 23 and conditions related to the present and future use of the 24 property, contractual commitments by the transferee, and other 25 forms of consideration as determined by the board to be in the 26 best interest of the land redevelopment trust and consistent 27 with its bylaws. 28 3. A municipality may in the ordinance or resolution 29 creating a land redevelopment trust, or in the chapter 28E 30 agreement in the case of any combination of municipalities 31 creating a single land redevelopment trust, require that 32 a particular form of disposition of real property or a 33 disposition of real property located within a specified 34 jurisdiction be subject to specified voting and approval 35 -8- LSB 1251XS (7) 90 js/ns 8/ 23
S.F. 10 requirements of the board. 1 Sec. 11. NEW SECTION . 358A.11 Financing. 2 1. A land redevelopment trust may receive funding through 3 grants, loans, and other moneys from the municipality 4 that created the land redevelopment trust, from other 5 municipalities, from the state, from the federal government, 6 and from any other public and private sources, including but 7 not limited to donations, gifts, or bequests. 8 2. A land redevelopment trust may receive and retain 9 payments for services rendered, for rents and leasehold 10 payments received, for consideration for disposition of real 11 and personal property, for proceeds of insurance coverage for 12 losses incurred, for income from investments, and for any other 13 asset and activity lawfully permitted to a land redevelopment 14 trust under this chapter. 15 3. Up to seventy-five percent of the real property taxes 16 remaining after the division of taxes pursuant to section 17 403.19, if applicable, and exclusive of any amount levied 18 by a school district, collected on real property that a 19 land redevelopment trust has conveyed or leased to a third 20 party shall be remitted to the land redevelopment trust. 21 The allocation of property tax revenues shall commence with 22 property taxes payable on the assessed value of the property 23 determined on the first assessment year beginning January 24 1 following the date of conveyance or lease by the land 25 redevelopment trust and shall be allocated for a period 26 of up to five consecutive years. The specific percentage 27 of the taxes to be remitted, if any, and the number of 28 consecutive years to allocate the taxes shall be established 29 by the municipality creating the land redevelopment trust 30 in accordance with this section and shall be set forth in 31 the enabling ordinance, resolution, or chapter 28E agreement 32 creating the land redevelopment trust. Each municipality may, 33 in the enabling ordinance, resolution, or chapter 28E agreement 34 creating the land redevelopment trust, include the right of 35 -9- LSB 1251XS (7) 90 js/ns 9/ 23
S.F. 10 the municipality to waive or amend by resolution, and on a 1 project-specific basis, the percentage of real estate taxes 2 to be remitted to the land redevelopment trust for a specific 3 property and the number of consecutive years of tax allocation 4 for a specific property. The land redevelopment trust shall 5 give the treasurer in the county where the property is located 6 written notice of the date of the sale or lease of any property 7 for which the land redevelopment trust claims a real property 8 tax payment under this subsection. The notice shall identify 9 the property by local tax parcel number, address, and legal 10 description and include a copy of the ordinance, resolution, 11 or chapter 28E agreement setting forth the portion of such 12 taxes allocable to the land redevelopment trust under this 13 subsection. Upon receipt of the taxes from such property, the 14 treasurer shall pay the land redevelopment trust its share of 15 the taxes paid on such property for the applicable number of 16 consecutive years. 17 Sec. 12. NEW SECTION . 358A.12 Delinquent property tax 18 enforcement. 19 1. Whenever a land redevelopment trust acquires real 20 property encumbered by a lien or claim for real property taxes 21 owed to one or more of the municipalities that established the 22 land redevelopment trust, or to other political subdivisions 23 that have entered into an intergovernmental contract with the 24 land redevelopment trust, the land redevelopment trust may 25 request, by resolution of the board or as otherwise provided in 26 its bylaws, that the county in which the property is located 27 discharge and extinguish any and all of the liens or claims. 28 If a portion of the real property taxes are attributable to 29 property taxes certified for levy by a school district, the 30 land redevelopment trust shall notify the school district 31 in writing of its intent to extinguish all such liens and 32 claims. If the school district sends a written objection to 33 the proposed extinguishment of such liens and claims to the 34 land redevelopment trust within thirty days of receipt of such 35 -10- LSB 1251XS (7) 90 js/ns 10/ 23
S.F. 10 notice, the land redevelopment trust shall not attempt to 1 extinguish the liens and claims. If the school district fails 2 to send a written objection to the proposed extinguishment to 3 the land redevelopment trust within thirty days of receipt of 4 such notice from the land redevelopment trust, the county in 5 which the land redevelopment trust is located shall have the 6 power, by resolution of the board, to discharge and extinguish 7 any and all such liens or claims. 8 2. If a land redevelopment trust receives payments of any 9 kind attributable to liens or claims for real property taxes 10 owed or allocated to a municipality, public utility, or school 11 district on property acquired by the land redevelopment trust, 12 the land redevelopment trust shall remit the full amount of the 13 payments to the appropriate taxing entity. 14 Sec. 13. NEW SECTION . 358A.13 Exemption from taxation. 15 The income and operations of a land redevelopment trust 16 are exempt from taxation by the state and by any political 17 subdivision of the state. 18 Sec. 14. NEW SECTION . 358A.14 Public records and public 19 meetings. 20 A land redevelopment trust is a governmental body for 21 purposes of chapter 21 and a government body for the purposes 22 of chapter 22. A land redevelopment trust shall comply with 23 all public meeting requirements under chapter 21 and all public 24 records requirements under chapter 22. 25 Sec. 15. NEW SECTION . 358A.15 Reports. 26 A land redevelopment trust shall submit to the governing 27 body of the municipality that created the land redevelopment 28 trust an annual report that informs the municipality of the 29 land redevelopment trusts activities for the previous year. 30 Sec. 16. NEW SECTION . 358A.16 Audits. 31 A land redevelopment trust is a governmental subdivision 32 for the purposes of chapter 11. A land redevelopment trust 33 shall be subject to periodic examination by the auditor of 34 state. 35 -11- LSB 1251XS (7) 90 js/ns 11/ 23
S.F. 10 Sec. 17. NEW SECTION . 358A.17 Dissolution of land 1 redevelopment trusts. 2 1. A land redevelopment trust may be dissolved in accordance 3 with its bylaws. Upon dissolution of the land redevelopment 4 trust, all liabilities, real property, personal property, 5 and other assets of the land redevelopment trust shall 6 become the liabilities and assets of the municipality that 7 created the land redevelopment trust, or, in the case of a 8 land redevelopment trust created pursuant to a chapter 28E 9 agreement, shall be distributed pursuant to the chapter 28E 10 agreement. 11 2. A municipality may withdraw from a land redevelopment 12 trust if the land redevelopment trust was created pursuant to 13 a chapter 28E agreement. The withdrawing municipality shall 14 receive its share of assets and liabilities as determined 15 in the chapter 28E agreement. A land redevelopment trust 16 consisting of two or more municipalities does not dissolve upon 17 the withdrawal of a single municipality. 18 Sec. 18. NEW SECTION . 358A.18 Conflicts of interest. 19 1. For purposes of this section, family member means a 20 person who is a spouse, domestic partner, child, step-child, 21 grandchild, parent, step-parent, grandparent, sibling, niece, 22 nephew, uncle, aunt, mother-in-law, father-in-law, son-in-law, 23 or daughter-in-law of a member of the board or an employee of a 24 land redevelopment trust. Family member includes a person who 25 is a family member through adoption. 26 2. A member of the board, employee of a land redevelopment 27 trust, or family member of a member of the board or an 28 employee of the land redevelopment trust shall not acquire 29 any direct or indirect interest in real property of the land 30 redevelopment trust or in any property to be acquired from 31 the land redevelopment trust, or have or acquire any direct 32 or indirect interest in any real property to be acquired by a 33 land redevelopment trust. A land redevelopment trust shall not 34 acquire any real property from a board member, employee of the 35 -12- LSB 1251XS (7) 90 js/ns 12/ 23
S.F. 10 land redevelopment trust, or family member of a board member or 1 employee of the land redevelopment trust. 2 3. Members of the board and employees of the land 3 redevelopment trust shall disclose to the board any direct or 4 indirect ownership interest such person or a family member of 5 such person has in any property to be acquired by the land 6 redevelopment trust or located within one thousand feet of 7 any property that the land redevelopment trust is considering 8 acquiring before the land redevelopment trust takes any 9 action to acquire such property. A member of the board who is 10 required to make such disclosure shall not participate in the 11 decision to approve the acquisition of such property. 12 4. A member of the board, employee of a land redevelopment 13 trust, or family member of a member of the board or an employee 14 of the land redevelopment trust may have a direct or indirect 15 interest in any contract or proposed contract for material or 16 services to be furnished to or used by a land redevelopment 17 trust only upon all of the following conditions: 18 a. The member of the board or employee of the land 19 redevelopment trust discloses the material facts of such 20 transaction and the nature of such interest to the board before 21 the board acts to approve such contract and, if the person is a 22 board member, does not participate in the discussion or vote to 23 consider approval of such contract. 24 b. Such contract is approved by a majority of the members 25 of the board who have no direct or indirect interest in such 26 contract and whose family members have no direct or indirect 27 interest in such contract. 28 c. Such contract is fair at the time the contract is 29 approved. 30 5. a. Any person who serves or is employed by a land 31 redevelopment trust shall not engage in any of the following 32 conduct: 33 (1) Outside employment or an activity that involves the use 34 of the land redevelopment trusts time, facilities, equipment, 35 -13- LSB 1251XS (7) 90 js/ns 13/ 23
S.F. 10 and supplies or the use of evidences of office or employment 1 to give the person, an entity affiliated with or controlled 2 by the person, or a family member of the person an advantage 3 or pecuniary benefit that is not available to other similarly 4 situated members or classes of members of the general public. 5 For purposes of this subparagraph, a person is not similarly 6 situated merely by being, or being related to, a person who 7 serves or is employed by the land redevelopment trust. 8 (2) Outside employment or an activity that involves the 9 receipt of, promise of, or acceptance of money or other 10 consideration by the person, an entity affiliated with or 11 controlled by the person, or a family member of the person 12 from anyone other than the land redevelopment trust for the 13 performance of any act that the person would be required or 14 expected to perform as a part of the persons regular duties or 15 during the hours during which the person performs service or 16 work for the land redevelopment trust. 17 (3) Outside employment or an activity that is subject to 18 the official control, inspection, review, audit, or enforcement 19 authority of the person, during the performance of the persons 20 duties of office or employment. 21 b. If the outside employment or activity is employment or 22 activity described in paragraph a , subparagraph (1) or (2), 23 the person shall immediately cease the employment or activity. 24 If the outside employment or activity is employment or activity 25 described in paragraph a , subparagraph (3), unless otherwise 26 provided by law, the person shall take one of the following 27 courses of action: 28 (1) Cease the outside employment or activity. 29 (2) Publicly disclose the existence of the conflict and 30 refrain from taking any official action or performing any 31 official duty that would detrimentally affect or create a 32 benefit for the outside employment or activity. For purposes 33 of this subparagraph, official action or official duty 34 includes but is not limited to participating in any vote, 35 -14- LSB 1251XS (7) 90 js/ns 14/ 23
S.F. 10 taking affirmative action to influence any vote, granting any 1 license or permit, determining the facts or law in a contested 2 case or rulemaking proceeding, conducting any inspection, or 3 providing any other official service or thing that is not 4 available generally to members of the public in order to 5 further the interests of the outside employment or activity. 6 6. Unless otherwise specifically provided, the requirements 7 of this section shall be in addition to, and shall not 8 supersede, any other rights or remedies provided by law. 9 DIVISION II 10 LAND REDEVELOPMENT TRUST TAX SALE COORDINATING PROVISIONS 11 Sec. 19. Section 446.16, subsection 2, Code 2023, is amended 12 to read as follows: 13 2. The treasurer may establish and collect a reasonable 14 registration fee from each registered bidder at the tax 15 sale. The fee shall not be assessed against a county , or 16 municipality , or land redevelopment trust created under chapter 17 358A . The total of the fees collected shall not exceed the 18 total costs of the tax sale. Registration fees collected shall 19 be deposited in the general fund of the county. 20 Sec. 20. NEW SECTION . 446.19C Land redevelopment trust tax 21 sale. 22 1. A land redevelopment trust has the exclusive bidders 23 right to purchase tax sale certificates offered at the 24 treasurers annual tax sale with respect to tax delinquent 25 parcels located within the geographical boundaries of the 26 land redevelopment trust that are dilapidated, abandoned, or 27 blighted and that are suitable for housing or commercial use 28 following rehabilitation. 29 2. To qualify for the exclusive bidders right to purchase 30 tax sale certificates under this section, a land redevelopment 31 trust must file a verified statement with the treasurer on or 32 before May 15. The land redevelopment trust is responsible 33 for obtaining information from the treasurer as needed to 34 accurately identify tax parcel numbers and total amounts due. 35 -15- LSB 1251XS (7) 90 js/ns 15/ 23
S.F. 10 The land redevelopment trust shall provide the treasurer with 1 the federal tax identification number of the land redevelopment 2 trust, but such information is not required to be shown on the 3 verified statement. The verified statement shall include all 4 of the following: 5 a. The name, address, telephone number, and electronic mail 6 address of the land redevelopment trust. 7 b. A statement that the land redevelopment trust is 8 exercising its right to purchase each identified parcel 9 pursuant to this section. 10 c. Specific identification of each parcel by the parcels 11 official county tax parcel number. 12 d. With respect to each identified parcel, a statement that 13 the parcel is dilapidated, abandoned, or blighted and that the 14 parcel is suitable for housing or commercial use following 15 rehabilitation. 16 e. The total amount due for each identified parcel computed 17 to the date of the tax sale. 18 3. In addition to the verified statement, the land 19 redevelopment trust shall submit payment to the treasurer of 20 an amount equal to the total amount due cumulatively for all 21 of the parcels identified in the verified statement. The 22 filing of the verified statement by a land redevelopment 23 trust accompanied by payment of the total amount due for all 24 identified parcels shall constitute the registration by the 25 land redevelopment trust as a bidder at the tax sale. The land 26 redevelopment trust shall not be required to pay a registration 27 fee. 28 4. The land redevelopment trusts verified statement shall 29 be published at the same time and in the same manner as the 30 notice of the annual tax sale, and the requirements in section 31 446.9, subsection 2, for publication of notice of the annual 32 tax sale also apply to publication of the verified statement. 33 5. Upon timely receipt of the verified statement and 34 payment of the total amount due cumulatively for all identified 35 -16- LSB 1251XS (7) 90 js/ns 16/ 23
S.F. 10 parcels, the treasurer shall remove all of the identified 1 parcels from the regular annual tax sale and place those 2 parcels in a separate sale known as the land redevelopment 3 trust tax sale. On the day of the regular tax sale, the 4 treasurer shall issue and deliver tax sale certificates to the 5 land redevelopment trust for all parcels listed in the land 6 redevelopment trusts verified statement that remain liable 7 to sale for delinquent taxes. The land redevelopment trusts 8 exclusive right to purchase tax sale certificates to parcels 9 included in the land redevelopment trust tax sale is prior and 10 superior to the rights of any other tax sale bidder. Any tax 11 sale certificate issued to a land redevelopment trust under the 12 provisions of this section shall secure a one redevelopment 13 trust percent interest in the parcel. 14 6. The separate land redevelopment trust tax sale shall 15 be conducted by the treasurer prior to the separate public 16 nuisance tax sale conducted under section 446.19B. If the same 17 parcel is listed in both such sales, the parcel shall be sold 18 to the land redevelopment trust. 19 7. If any parcel identified within the land redevelopment 20 trusts verified statement has been removed from the land 21 redevelopment trust tax sale because of receipt by the 22 treasurer of payment of the taxes required to eliminate 23 the delinquency, the treasurer shall refund to the land 24 redevelopment trust the amount paid with respect to the total 25 amount due for the parcel. 26 8. For purposes of this section, abandoned , blighted , 27 dilapidated , geographical boundaries of the land redevelopment 28 trust , land redevelopment trust , and rehabilitation mean the 29 same as defined in section 358A.3. 30 Sec. 21. Section 447.9, subsection 1, Code 2023, is amended 31 to read as follows: 32 1. After one year and nine months from the date of sale, or 33 after nine months from the date of a sale made under section 34 446.18 , or after three months from the date of a sale made 35 -17- LSB 1251XS (7) 90 js/ns 17/ 23
S.F. 10 under section 446.19A , or 446.19B , or 446.19C, the holder 1 of the certificate of purchase may cause to be served upon 2 the person in possession of the parcel, and also upon the 3 person in whose name the parcel is taxed, a notice signed by 4 the certificate holder or the certificate holders agent or 5 attorney, stating the date of sale, the description of the 6 parcel sold, the name of the purchaser, and that the right 7 of redemption will expire and a deed for the parcel be made 8 unless redemption is made within ninety days from the completed 9 service of the notice. The notice shall be served by both 10 regular mail and certified mail to the persons last known 11 address and such service is deemed completed when the notice 12 is deposited in the mail and postmarked for delivery. The 13 ninety-day redemption period begins as provided in section 14 447.12 . When the notice is given by a county as a holder of 15 a certificate of purchase the notice shall be signed by the 16 county treasurer or the county attorney, and when given by a 17 city, it shall be signed by the city officer designated by 18 resolution of the council. When the notice is given by the 19 Iowa finance authority or a city or county agency holding 20 the parcel as part of an Iowa homesteading project, it shall 21 be signed on behalf of the agency or authority by one of its 22 officers, as authorized in rules of the agency or authority. 23 DIVISION III 24 OTHER COORDINATING PROVISIONS 25 Sec. 22. Section 11.1, subsection 1, paragraph c, Code 2023, 26 is amended to read as follows: 27 c. Governmental subdivision means cities and 28 administrative agencies established by cities, hospitals or 29 health care facilities established by a city, counties, county 30 hospitals organized under chapters 347 and 347A , memorial 31 hospitals organized under chapter 37 , entities organized under 32 chapter 28E , land redevelopment trusts created under chapter 33 358A, community colleges, area education agencies, and school 34 districts. 35 -18- LSB 1251XS (7) 90 js/ns 18/ 23
S.F. 10 Sec. 23. Section 21.2, subsection 1, Code 2023, is amended 1 by adding the following new paragraph: 2 NEW PARAGRAPH . k. A land redevelopment trust created under 3 chapter 358A. 4 Sec. 24. Section 22.1, subsection 1, Code 2023, is amended 5 to read as follows: 6 1. Government body means this state, or any county, 7 city, township, school corporation, political subdivision, 8 tax-supported district, nonprofit corporation other than a 9 fair conducting a fair event as provided in chapter 174 , whose 10 facilities or indebtedness are supported in whole or in part 11 with property tax revenue and which is licensed to conduct 12 pari-mutuel wagering pursuant to chapter 99D ; the governing 13 body of a drainage or levee district as provided in chapter 14 468 , including a board as defined in section 468.3 , regardless 15 of how the district is organized; a land redevelopment trust 16 created under chapter 358A; or other entity of this state, or 17 any branch, department, board, bureau, commission, council, 18 committee, official, or officer of any of the foregoing or any 19 employee delegated the responsibility for implementing the 20 requirements of this chapter . 21 Sec. 25. Section 97B.1A, subsection 9, paragraph a, Code 22 2023, is amended to read as follows: 23 a. Employer means the state of Iowa, the counties, 24 municipalities, agencies, public school districts, all 25 political subdivisions, and all of their departments and 26 instrumentalities, including area agencies on aging, other than 27 those employing persons as specified in subsection 8 , paragraph 28 b , subparagraph (7), land redevelopment trusts created under 29 chapter 358A, and joint planning commissions created under 30 chapter 28E or 28I . 31 Sec. 26. Section 364.7, Code 2023, is amended to read as 32 follows: 33 364.7 Disposal of property. 34 A city may shall not dispose of an interest in real property 35 -19- LSB 1251XS (7) 90 js/ns 19/ 23
S.F. 10 by sale, lease for a term of more than three years, or gift, 1 except in accordance with the following procedure: 2 1. The council shall set forth its proposal in a resolution 3 and shall publish notice , as provided in section 362.3 , of the 4 resolution and of a date, time , and place of a public hearing 5 on the proposal. 6 2. After the public hearing, the council may make a final 7 determination on the proposal by resolution. 8 3. A city may shall not dispose of real property by gift 9 except to a governmental body for a public purpose or to a land 10 redevelopment trust created under chapter 358A . 11 Sec. 27. Section 427.1, Code 2023, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 42. Land redevelopment trust property. The 14 real property of a land redevelopment trust created under 15 chapter 358A. For purposes of this subsection, real property 16 includes but is not limited to real property held by a land 17 redevelopment trust as lessor pursuant to long-term lease 18 contracts with community land trusts as defined in 42 U.S.C. 19 12773, but does not include real property otherwise leased 20 by a land redevelopment trust to a third party and does not 21 include real property that has been sold on contract, which 22 real property shall be subject to property taxation in the name 23 of the contract buyer. 24 Sec. 28. Section 573.1, subsection 3, Code 2023, is amended 25 to read as follows: 26 3. Public corporation shall embrace the state, and 27 all counties, cities, public school corporations, any land 28 redevelopment trust created under chapter 358A, and all 29 officers, boards, or commissions empowered by law to enter into 30 contracts for the construction of public improvements. 31 Sec. 29. Section 657A.2, subsection 1, Code 2023, is amended 32 to read as follows: 33 1. No sooner than the later of thirty days after the 34 responsible building officials findings have been provided 35 -20- LSB 1251XS (7) 90 js/ns 20/ 23
S.F. 10 under section 657A.1A or six months after a building has become 1 abandoned, a petition for abatement under this chapter may be 2 filed in the district court of the county in which the property 3 is located by the city in which the property is located, by 4 the county if the property is located outside the limits of a 5 city, by a neighboring landowner, by a land redevelopment trust 6 created under chapter 358A, or by a duly organized nonprofit 7 corporation which that has as one of its goals the improvement 8 of housing conditions in the county or city in which the 9 property in question is located. The petition shall not demand 10 a personal judgment against any party, but shall concern only 11 the interests in the property. A petition for abatement filed 12 under this chapter shall include the legal description of 13 the real property upon which the public nuisance is located 14 unless the public nuisance is not situated on or confined to 15 a parcel of real property, or is portable or capable of being 16 removed from the real property. Service shall be made on all 17 interested persons by personal service or, if personal service 18 cannot be made, by certified mail and first class mail to the 19 last known address of record of the interested person and by 20 posting the notice in a conspicuous place on the building, 21 or by publication. The last known address of record for the 22 property owner shall be the address of record with the county 23 treasurer of the county where the property is located. Service 24 may also be made as provided in section 654.4A . 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanations substance by the members of the general assembly. 28 This bill provides for the establishment of land 29 redevelopment trusts. 30 Division I of the bill authorizes one or more municipalities 31 to establish a land redevelopment trust as a method to return 32 dilapidated, abandoned, blighted, and tax-delinquent properties 33 in their communities to economically productive status. An 34 established land redevelopment trust is a public agency 35 -21- LSB 1251XS (7) 90 js/ns 21/ 23
S.F. 10 for the purpose of joint exercise of governmental powers, a 1 governmental body for purposes of public meetings requirements 2 of Code chapter 21, and a government body for purposes 3 of public records requirements of Code chapter 22. Land 4 redevelopment trusts are subject to periodic examination by the 5 auditor of state under Code chapter 11. The bill requires the 6 board of directors of a land redevelopment trust to establish 7 bylaws addressing matters necessary to govern the conduct of 8 the land redevelopment trust. 9 Division I of the bill also grants a land redevelopment 10 trust various powers and duties, including the authority to 11 acquire properties through certain procedures, including the 12 purchase of tax sale certificates and the foreclosure of 13 properties acquired at a tax sale if not redeemed. However, 14 the bill explicitly prohibits a land redevelopment trust 15 from possessing or exercising the power of eminent domain. 16 The bill establishes financing procedures that govern land 17 redevelopment trusts, including allowing to be remitted to the 18 land redevelopment trust up to 75 percent of real property 19 taxes collected on a real property conveyed or leased by a 20 land redevelopment trust that remains after the division of 21 taxes for an urban renewal area and exclusive of any amount 22 levied by a school district for five consecutive years after 23 the property is again put on the tax rolls. The bill requires 24 a land redevelopment trust to submit annual reports to the 25 governing body that created the land redevelopment trust. 26 The bill provides procedures for disposing of property that 27 is acquired by the land redevelopment trust. The bill also 28 provides procedures for dissolving a land redevelopment trust. 29 Division II of the bill creates a land redevelopment trust 30 tax sale procedure, which allows a land redevelopment trust to 31 acquire abandoned, blighted, or dilapidated properties through 32 an exclusive tax sale. In order to acquire property through a 33 land redevelopment trust tax sale, the land redevelopment trust 34 shall file a verified statement identifying the parcels for 35 -22- LSB 1251XS (7) 90 js/ns 22/ 23
S.F. 10 which the land redevelopment trust intends to purchase the tax 1 sale certificates and shall pay the delinquent total amounts 2 due on each parcel before May 15. Upon timely receipt of the 3 land redevelopment trusts verified statement and payment, the 4 county treasurer shall remove the identified parcels from the 5 regular annual tax sale and place those parcels in the land 6 redevelopment trust tax sale. The land redevelopment trust tax 7 sale shall occur before a public nuisance tax sale. 8 Division III of the bill makes changes throughout the Code to 9 conform with land redevelopment trust procedures established in 10 division I of the bill. 11 -23- LSB 1251XS (7) 90 js/ns 23/ 23