Sedalia officials clarify Chapter 353 tax‑abatement rules for Midtown redevelopment; no vote taken

City Attorney Joe Valero explained the legal framework for using Missouri Revised Statutes Chapter 353 tax abatements to support the Midtown Residential Area redevelopment plan during the Sedalia City Council’s Community Development committee presentation on Jan. 6. Valero told council members the program can provide property‑level tax abatements to encourage rehabilitation, increase homeownership and remediate blight in a large area the city adopted by ordinance in May 2020.

Valero said the statutory tool requires two elements: an urban redevelopment corporation and a redevelopment plan. He summarized the tax mechanics: up to 100% abatement on improvements for the first 10 years and a second tier that can provide at least 50% abatement for up to 15 additional years, subject to the plan’s terms. To trigger abatement under Chapter 353, title to the parcel must transfer to the redevelopment corporation and may be immediately transferred back under a prearranged contract, Valero said. He also noted the program requires individualized tax‑impact statements and public hearings for property owners seeking abatement.

Why it matters: the Midtown Residential Area plan is intended to spur private investment in older neighborhoods that the city found to meet the statutory blight definition. Under Sedalia’s…