House Committee on Rules holds public hearing on bill to require voter approval of urban renewal plans

The House Committee on Rules held a public hearing April 16 on House Bill 3499, which would require a municipality to refer an urban renewal plan or substantial plan amendment to voters at the next regular election at least 90 days after the governing body adopts an approving ordinance.

The bill pits county officials who say tax increment financing (TIF) diverts revenue from overlapping taxing districts against city and economic-development representatives who said TIF is one of the few local financing tools available for infrastructure, affordable housing and economic development.

Joel Benton, speaking on behalf of Jackson County, said the county supports the bill and described local impacts when cities establish urban renewal areas. “Urban renewal is a substantial burden on counties and other taxing districts when cities are able to create urban renewal districts and then divert that money away from counties and other districts including school districts, fire districts, library districts, and of course counties,” Benton said. He told the committee Jackson County has a fixed permanent rate limit of about $2 and in “some of our code areas” more than 15% of that $2 is diverted to urban renewal, a shift he said reduces the county’s ability to provide jail services, crisis mental health, and…