Session of 1999
By Committee on Federal and State Affairs

  9             AN  ACT concerning economic development projects; relating to tax in-
10             crement financing and the use of eminent domain powers within a
11             redevelopment district; amending K.S.A. 1998 Supp. 12-1773 and re-
12             pealing the existing section.
14       Be it enacted by the Legislature of the State of Kansas:
15             Section  1. K.S.A. 1998 Supp. 12-1773 is hereby amended to read as
16       follows: 12-1773. (a) Any city which has adopted a redevelopment plan
17       in accordance with the provisions of this act may purchase or otherwise
18       acquire real property. Upon a 2/3 vote of the members of the governing
19       body thereof a city may acquire by condemnation any interest in real
20       property, including a fee simple title thereto, which it deems necessary
21       for or in connection with any redevelopment plan of an area located
22       within the redevelopment district. Prior to the exercise of such eminent
23       domain power, the city shall offer to the owner of any property which
24       will be subject to condemnation with respect to any redevelopment pro-
25       ject, other than one which includes an auto race track facility, compen-
26       sation in amount equal to the highest appraised valuation amount deter-
27       mined for property tax purposes by the county appraiser for any of the
28       three most recent years next preceding the year of condemnation, except
29       that, if in the year next preceding the year of condemnation any such
30       property had been damaged or destroyed by fire, flood, tornado, light-
31       ning, explosion or other catastrophic event, the amount offered should
32       be equal to the appraised valuation of the property which would have
33       been determined taking into account such damage or destruction unless
34       such property has been restored, renovated or otherwise improved. How-
35       ever no city shall exercise such eminent domain power to acquire real
36       property in a conservation area. Any such city may exercise the power of
37       eminent domain in the manner provided by K.S.A. 26-501 et seq., and
38       amendments thereto. In addition to the requirements of the eminent do-
39       main procedures act, a city seeking to acquire real property through con-
40       demnation pursuant to this section must complete the following
41       procedures:
42             (1) The city must allege in its petition pursuant to K.S.A. 26-502, and
43       amendments thereto, and establish by a preponderance of the evidence

HB 2531


  1       that the property which is the subject of the petition is located in a blighted
  2       area within the meaning of this section. For purposes of this section only,
  3       "blighted area" means an area in which the majority of structures are tax
  4       delinquent in an amount in excess of their fair market value, are struc-
  5       turally unsound or are located in a contiguous and compact area which
  6       generates police reports at a significantly higher rate per capita than the
  7       city as a whole. In addition to the findings required by K.S.A. 26-504,
  8       and amendments thereto, a judge must agree with the cities allegation
  9       that the property is located in a blighted area;
10             (2) prior to the adoption of a redevelopment plan in which existing
11       private property owners are planned to be replaced by different private
12       property owners or the real estate which is to be condemned is to be used
13       in a manner which will benefit other specific private property owners
14       disproportionately to the general public, the city shall:
15             (A) Offer existing property owners an opportunity to present an al-
16       ternative redevelopment plan more than 12 months prior to filing a con-
17       demnation petition pursuant to K.S.A. 26-502, and amendments thereto;
18             (B) if the alternative redevelopment plan is rejected by the city on the
19       basis that the proposed redevelopment plan will generate more jobs or
20       greater tax revenues, the city shall make a finding, supported by projec-
21       tions, based on data from similar market areas and analyzed by a neutral
22       third party, that the proposed redevelopment plan will produce more jobs
23       or revenue than the alternative redevelopment plan and twice as many
24       jobs or twice as much tax revenue as existing use of the property. For
25       purposes of this subsection, a similar market is an area that contains,
26       within 15%, the same population per square mile, the same per capita
27       income, the same crime rate, the same property valuation and the same
28       state and local tax liability.
29             In addition to the compensation or damage amount finally awarded
30       thereunder with respect to any property subject to proceedings there-
31       under as a result of the construction of an auto race track facility, such
32       city shall provide for the payment of an amount equal to 25% of such
33       compensation or damage amount. In addition to any compensation or
34       damages allowed under the eminent domain procedure act, such city shall
35       also provide for the payment of relocation assistance as provided in K.S.A.
36       12-1777, and amendments thereto.
37             (b) Any property acquired by a city under the provisions of this act
38       may be sold or leased to any person, firm or corporation, hereinafter
39       referred to as a developer, in accordance with the redevelopment plan
40       and under such other conditions as may be agreed upon. Such city may
41       use the proceeds of special obligation bonds issued under K.S.A. 12-1774,
42       and amendments thereto, or full faith and credit tax increment bonds
43       issued under K.S.A. 12-1774, and amendments thereto, or any uncom-

HB 2531


  1       mitted funds derived from those sources set forth in paragraph (1) of
  2       subsection (a) of K.S.A. 12-1774, and amendments thereto, to implement
  3       the redevelopment plan including, without limitation:
  4             (1) Acquisition of property within the project area;
  5             (2) payment of relocation assistance;
  6             (3) site preparation;
  7             (4) sanitary and storm sewers and lift stations;
  8             (5) drainage conduits, channels and levees;
  9             (6) street grading, paving, graveling, macadamizing, curbing, gutter-
10       ing and surfacing;
11             (7) street lighting fixtures, connection and facilities;
12             (8) underground gas, water, heating, and electrical services and con-
13       nections located within the public right-of-way;
14             (9) sidewalks and pedestrian underpasses or overpasses;
15             (10) drives and driveway approaches located within public right-of-
16       way;
17             (11) water mains and extensions;
18             (12) plazas and arcades;
19             (13) parking facilities;
20             (14) landscaping and plantings; fountains, shelters, benches, sculp-
21       tures, lighting, decorations and similar amenities; and
22             (15) all related expenses to redevelop and finance the redevelopment
23       project.
24       None of the proceeds from the sale of such bonds shall be used for the
25       construction of buildings or other structures to be owned by or to be
26       leased to such developer, except for proceeds of such bonds as may be
27       issued for a redevelopment project which includes an auto race track
28       facility and except for proceeds of such bonds as may be issued for a
29       redevelopment district including some or all of the land and buildings
30       comprising a state mental institution closed pursuant to section 2 of chap-
31       ter 219 of the 1995 Session Laws of Kansas. 
32       Sec.  2. K.S.A. 1998 Supp. 12-1773 is hereby repealed.
33        Sec.  3. This act shall take effect and be in force from and after its
34       publication in the statute book.