Assembly Bill No. 306–Assemblymen Giunchigliani, Buckley, Arberry, Anderson, Bache, Freeman, Tiffany, Parnell, de Braga, Williams, Parks, Segerblom, Collins, Manendo, Ohrenschall and Goldwater

February 23, 1999

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Referred to Committee on Government Affairs

 

SUMMARY—Revises provisions governing community redevelopment. (BDR 22-15)

FISCAL NOTE: Effect on Local Government: Yes.

Effect on the State or on Industrial Insurance: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted. Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).

 

AN ACT relating to community redevelopment; revising the provisions governing community redevelopment; restricting the power of eminent domain of a redevelopment agency in certain counties; authorizing the creation of advisory councils for redevelopment within redevelopment areas; requiring the funding of such councils in certain counties; revising the definition of a blighted area; providing for the appointment of citizens’ advisory boards; revising the provisions governing a rehousing bureau; revising the provisions governing the setting aside of money for low-income housing in certain cities; making various changes relating to relocation benefits; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

1-1 Section 1. Chapter 279 of NRS is hereby amended by adding thereto

1-2 the provisions set forth as sections 2 and 3 of this act.

1-3 Sec. 2. In a county whose population is 100,000 or more, an agency

1-4 shall not exercise the power of eminent domain for redevelopment unless

1-5 the general public, as the primary beneficiary, will receive and enjoy

1-6 specific and substantial benefits from the use of the property to be taken.

1-7 If the exercise of the power of eminent domain will benefit a specific and

1-8 identifiable private interest, the agency must, before exercising the

1-9 power, make a written finding supported with specific facts that the

1-10 exercise of the power of eminent domain is necessary in the specific case.

2-1 Sec. 3. 1. An agency may create one or more residential plans for

2-2 areas within the redevelopment area. Each area must be coterminous

2-3 with a census tract. The agency may create an advisory council for

2-4 redevelopment in each area so created. Such a council may propose its

2-5 plan and requested budget for the redevelopment of the area to the

2-6 agency.

2-7 2. Except as otherwise provided in subsection 3, the agency may

2-8 include in its budget money for use by an advisory council to carry out

2-9 the plan of the council.

2-10 3. In a county whose population is 100,000 or more, the agency shall

2-11 set aside in its budget at least 5 percent of the money budgeted for

2-12 redevelopment for use by such advisory councils to carry out the plans of

2-13 the councils.

2-14 Sec. 4. NRS 279.382 is hereby amended to read as follows:

2-15 279.382 The provisions contained in NRS 279.382 to 279.685,

2-16 inclusive, and sections 2 and 3 of this act may be cited as the Community

2-17 Redevelopment Law.

2-18 Sec. 5. NRS 279.388 is hereby amended to read as follows:

2-19 279.388 "Blighted area" means an area which is characterized by one

2-20 or more of the following factors:

2-21 1. The existence of buildings and structures, used or intended to be

2-22 used for residential, commercial, industrial or other purposes, or any

2-23 combination thereof, which are unfit or unsafe for those purposes and are

2-24 conducive to ill health, transmission of disease, infant mortality, juvenile

2-25 delinquency or crime , or which retard the development of adequate

2-26 housing or constitute an economic or social liability and are a menace to

2-27 the public health, safety or welfare in their present condition and use,

2-28 because of one or more of the following factors:

2-29 (a) Defective design and character of physical construction ; [.]

2-30 (b) Faulty arrangement of the interior and spacing of buildings ; [.]

2-31 (c) Overcrowding ; [.]

2-32 (d) Inadequate provision for ventilation, light, sanitation, open spaces

2-33 and recreational facilities ; [.]

2-34 (e) Age, obsolescence, deterioration, dilapidation, mixed character or

2-35 shifting of uses [.] ; or

2-36 (f) An inability to pay for improvements to such buildings and

2-37 structures through a general improvement district or because of an

2-38 inadequate tax base.

2-39 2. An economic dislocation, deterioration or disuse, resulting from

2-40 faulty planning.

2-41 3. The subdividing and sale of lots of irregular form and shape and

2-42 inadequate size for proper usefulness and development.

2-43 4. The laying out of lots [in] :

3-1 (a) In disregard of the contours and other physical characteristics of the

3-2 ground and surrounding conditions [.] ; or

3-3 (b) That are faulty in size, accessibility or usefulness.

3-4 5. The existence of inadequate streets, open spaces and utilities.

3-5 6. The existence of lots or other areas which may be submerged.

3-6 7. Prevalence of depreciated values, impaired investments and social

3-7 and economic maladjustment to such an extent that the capacity to pay

3-8 taxes is reduced and tax receipts are inadequate for the cost of public

3-9 services rendered.

3-10 8. A growing or total lack of proper utilization of some parts of the

3-11 area, resulting in a stagnant and unproductive condition of land which is

3-12 potentially useful and valuable for contributing to the public health, safety

3-13 and welfare.

3-14 9. A loss of population and a reduction of proper use of some parts of

3-15 the area, resulting in its further deterioration and added costs to the

3-16 taxpayer for the creation of new public facilities and services elsewhere.

3-17 10. Delinquency of taxes or special assessments exceeding the fair

3-18 market value of the land.

3-19 11. Defective or unusual conditions of title.

3-20 12. The existence of conditions which endanger life or property by

3-21 fire or other causes.

3-22 Sec. 6. NRS 279.422 is hereby amended to read as follows:

3-23 279.422 It is further found and declared that [blighted areas may

3-24 include housing areas constructed as temporary government-owned

3-25 wartime housing projects, and that such areas may be characterized by one

3-26 or more of the conditions enumerated in NRS 279.388.] :

3-27 1. Redevelopment will stimulate residential and commercial

3-28 construction that is closely correlated with general economic activity;

3-29 and

3-30 2. Undertakings authorized by the Community Redevelopment Law

3-31 will:

3-32 (a) Assist in the production of better housing and commercial

3-33 development and a more desirable development of stable neighborhoods

3-34 and communities at lower costs; and

3-35 (b) Provide more residential and commercial construction, which will

3-36 assist substantially in maintaining full employment.

3-37 Sec. 7. NRS 279.444 is hereby amended to read as follows:

3-38 279.444 1. As an alternative to the appointment of five members of

3-39 the agency, the legislative body may, at the time of the adoption of a

3-40 resolution pursuant to NRS 279.428, or at any time thereafter, declare itself

3-41 to be the agency, in which case, all the rights, powers, duties, privileges

3-42 and immunities vested by NRS 279.382 to 279.685, inclusive, in an agency

3-43 are vested in the legislative body of the community. If the legislative body

4-1 of a city declares itself to be the agency pursuant to this subsection, it may

4-2 include the mayor of the city as part of the agency regardless of whether he

4-3 is a member of the legislative body. In addition, the mayor of a city or the

4-4 chairman of a board of county commissioners in a county whose

4-5 population is 100,000 or more shall, and in any other county may, with

4-6 the approval of the legislative body, appoint a citizens’ advisory board

4-7 consisting of residents and owners of property in the community to advise

4-8 the agency.

4-9 2. A city may enact its own procedural ordinance and exercise the

4-10 powers granted by NRS 279.382 to 279.685, inclusive.

4-11 [3. An agency is authorized to delegate to a community any of the

4-12 powers or functions of the agency with respect to the planning or

4-13 undertaking of a redevelopment project in the area in which that

4-14 community is authorized to act, and that community may carry out or

4-15 perform those powers or functions for the agency.]

4-16 Sec. 8. NRS 279.470 is hereby amended to read as follows:

4-17 279.470 Within the redevelopment area or for purposes of

4-18 redevelopment an agency may:

4-19 1. Purchase, lease, obtain option upon, acquire by gift, grant, bequest,

4-20 devise or otherwise, any real or personal property, any interest in property

4-21 and any improvements thereon.

4-22 2. [Acquire] Except as otherwise provided in section 2 of this act,

4-23 acquire real property by eminent domain.

4-24 3. Clear buildings, structures or other improvements from any real

4-25 property acquired.

4-26 4. Sell, lease, exchange, subdivide, transfer, assign, pledge, encumber

4-27 by mortgage, deed of trust or otherwise, or otherwise dispose of any real or

4-28 personal property or any interest in property.

4-29 5. Insure or provide for the insurance of any real or personal property

4-30 or operations of the agency against risks or hazards.

4-31 6. Rent, maintain, manage, operate, repair and clear such real property.

4-32 Sec. 9. NRS 279.476 is hereby amended to read as follows:

4-33 279.476 1. An agency may operate a rehousing bureau to assist site

4-34 occupants in obtaining adequate [temporary or permanent housing. It]

4-35 housing and places of business and may incur any necessary expenses for

4-36 [this] that purpose.

4-37 2. The rehousing bureau shall not select any housing or place of

4-38 business that is not decent, safe and sanitary.

4-39 3. In a county whose population is 100,000 or more, the rehousing

4-40 bureau shall pay the costs related to the replacement of the housing and

4-41 places of business and the relocation of the occupants, except that if the

5-1 relocation is necessitated by the acquisition or destruction by the agency

5-2 of real property that has been declared uninhabitable or a public

5-3 nuisance, the costs related to the relocation of the occupants:

5-4 (a) Must be paid by the person who owned the property immediately

5-5 before its acquisition by the agency; or

5-6 (b) If paid by the rehousing bureau, are recoverable from the person

5-7 who owned the property immediately before its acquisition by the agency.

5-8 Sec. 10. NRS 279.478 is hereby amended to read as follows:

5-9 279.478 1. An agency shall provide assistance for relocation and

5-10 shall make all [of] the payments required [in] by chapter 342 of NRS and

5-11 the regulations adopted by the director of the department of transportation

5-12 pursuant [to NRS 342.005] thereto for programs or projects for which

5-13 federal financial assistance is received to pay all or any part of the cost of

5-14 that program or project.

5-15 2. This section does not limit any other authority which an agency may

5-16 have to make other payments for assistance for relocation or to make any

5-17 payment for that assistance which exceeds the amount authorized in

5-18 regulations adopted by the director of the department of transportation

5-19 pursuant to chapter 342 of NRS . [342.105.]

5-20 Sec. 11. NRS 279.482 is hereby amended to read as follows:

5-21 279.482 1. An agency may obligate lessees or purchasers of property

5-22 acquired in a redevelopment project to:

5-23 (a) Use the property for the purpose designated in the redevelopment

5-24 plans.

5-25 (b) Begin the redevelopment of the area within a period of time which

5-26 the agency fixes as reasonable.

5-27 (c) Comply with other conditions which the agency deems necessary to

5-28 carry out the purposes of NRS 279.382 to 279.685, inclusive [.] ,

5-29 including, without limitation, the provisions of an employment plan or a

5-30 contract approved for a redevelopment project.

5-31 2. As appropriate for the particular project, each proposal for a

5-32 redevelopment project must also include an employment plan. The

5-33 employment plan must include:

5-34 (a) A description of the existing opportunities for employment within

5-35 the area;

5-36 (b) A projection of the effect that the redevelopment project will have

5-37 on opportunities for employment within the area; and

5-38 (c) A description of the manner in which an employer relocating his

5-39 business into the area plans to employ persons living within the area of

5-40 operation who are:

5-41 (1) Economically disadvantaged;

5-42 (2) Physically handicapped;

5-43 (3) Members of racial minorities;

6-1 (4) Veterans; or

6-2 (5) Women.

6-3 Sec. 12. NRS 279.566 is hereby amended to read as follows:

6-4 279.566 1. Every redevelopment plan must provide for the

6-5 participation in the redevelopment of property in the redevelopment area

6-6 by the owners of all or part of that property . [if] If the owners agree to

6-7 participate in conformity with the redevelopment plan adopted by the

6-8 legislative body for the area [.] , the agency may establish a plan that

6-9 provides incentives, including, without limitation, financing, to assist an

6-10 owner in complying with the plan.

6-11 2. With respect to each redevelopment area, each agency shall, before

6-12 the adoption of the redevelopment plan, adopt and make available for

6-13 public inspection rules to implement the operation of this section in

6-14 connection with that plan.

6-15 3. Every redevelopment plan must contain [alternative] provisions for

6-16 redevelopment of the property if the owners fail to participate in the

6-17 redevelopment . [as agreed.]

6-18 Sec. 13. NRS 279.680 is hereby amended to read as follows:

6-19 279.680 [In] Except as otherwise provided in NRS 279.685, in any

6-20 redevelopment plan, or in the proceedings for the advance of money, or

6-21 the making of loans, or the incurring of any indebtedness, whether funded,

6-22 refunded, assumed or otherwise, by the redevelopment agency to finance

6-23 or refinance, in whole or in part, the redevelopment project, the portion of

6-24 taxes mentioned in paragraph (b) of subsection 1 of NRS 279.676 may be

6-25 irrevocably pledged for the payment of the principal of and interest on

6-26 those loans, advances or indebtedness.

6-27 Sec. 14. NRS 279.685 is hereby amended to read as follows:

6-28 279.685 1. Except as otherwise provided in subsection 2 [or 3,] , 3

6-29 or 4, an agency of a city whose population is 200,000 or more that receives

6-30 [revenue] :

6-31 (a) Revenue from taxes pursuant to paragraph (b) of subsection 1 of

6-32 NRS 279.676 ; or

6-33 (b) Money from any other source, except proceeds from the issuance

6-34 of bonds,

6-35 shall set aside not less than 15 percent of that revenue or other money to

6-36 increase, improve and preserve the number of dwelling units in the

6-37 community for low-income households.

6-38 2. The obligation of an agency to set aside not less than 15 percent of

6-39 the revenue from taxes allocated to and received by the agency pursuant to

6-40 paragraph (b) of subsection 1 of NRS 279.676 is subordinate to any

6-41 existing obligations of the agency. As used in this subsection, "existing

6-42 obligations" means the principal and interest, when due, on any bonds,

6-43 notes or other indebtedness whether funded, refunded, assumed or

7-1 otherwise incurred by the agency before July 1, 1993, to finance or

7-2 refinance in whole or in part, the redevelopment of a redevelopment area.

7-3 For the purposes of this subsection, obligations incurred by an agency after

7-4 July 1, 1993, shall be deemed existing obligations if the net proceeds are

7-5 used to refinance existing obligations of the agency.

7-6 3. The obligation of an agency to set aside not less than 15 percent of

7-7 the money received by the agency from any other source, except proceeds

7-8 from the issuance of bonds, is subordinate to any existing obligations of

7-9 the agency and, if the money is acquired by gift, grant or bequest, to any

7-10 term or condition included in the gift, grant or bequest concerning the

7-11 use of the money. As used in this subsection, "existing obligations"

7-12 means the principal and interest, when due, on any bonds, notes or other

7-13 indebtedness whether funded, refunded, assumed or otherwise incurred

7-14 by the agency before July 1, 1999, to finance or refinance in whole or in

7-15 part, the redevelopment of a redevelopment area. For the purposes of this

7-16 subsection, obligations incurred by an agency after July 1, 1999, shall be

7-17 deemed existing obligations if the net proceeds are used to refinance

7-18 existing obligations of the agency.

7-19 4. The agency may expend or otherwise commit money for the

7-20 purposes of subsection 1 outside the boundaries of the redevelopment area.

7-21 Sec. 15. NRS 342.045 is hereby amended to read as follows:

7-22 342.045 Before undertaking a project that will result in the

7-23 displacement of a natural person or a business, each governmental body ,

7-24 or person acting on behalf of, under contract with or in cooperation with

7-25 the governmental body, shall adopt policies pursuant to NRS 342.015 to

7-26 342.075, inclusive, to provide relocation assistance and make relocation

7-27 payments to each person , whether an owner or a tenant, who is displaced

7-28 from his dwelling or business establishment as a result of the acquisition of

7-29 property in a manner substantially similar to and in amounts equal to or

7-30 greater than those which are provided for in the federal Uniform

7-31 Relocation Assistance and Real Property Acquisition Policies Act of 1970,

7-32 42 U.S.C. §§ 4601-4655, and the regulations adopted pursuant thereto.

7-33 Sec. 16. NRS 342.055 is hereby amended to read as follows:

7-34 342.055 1. In addition to the relocation benefits provided pursuant to

7-35 NRS 342.045, each person who is displaced from his business

7-36 establishment as a result of the acquisition of property by an agency

7-37 created pursuant to chapter 279 of NRS or by any person or entity acting

7-38 on behalf of, in cooperation with or under contract with such an agency,

7-39 and whose lease of the premises on which the establishment is situated is

7-40 terminated as a consequence of the acquisition, must be paid:

7-41 (a) The actual, reasonable and necessary costs of alterations and other

7-42 physical changes that are required to be made to a new location to render it

7-43 suitable for the operation of the business;

8-1 (b) The actual, reasonable and necessary costs of modifications made to

8-2 machinery, equipment and other personal property moved to the new

8-3 location which were necessary for the operation of the business, except

8-4 that such costs must not exceed the acquisition cost of the machinery,

8-5 equipment and other personal property less accumulated depreciation;

8-6 (c) The prorated fees for any licenses, permits or certifications that must

8-7 be obtained for the business to operate in the new location;

8-8 (d) The actual, reasonable and necessary fees for professional services

8-9 incurred in connection with the acquisition of a replacement site, including

8-10 the services of architects, appraisers, attorneys, engineers, realtors and

8-11 other consultants; and

8-12 (e) A sum equal to:

8-13 (1) An amount which, when added to the amount that the tenant

8-14 formerly paid in rent, will enable him to rent or lease a comparable

8-15 business location on the current market for a term equal to the period that

8-16 would have remained on his lease if it had not been terminated as a result

8-17 of the acquisition of the property or 3 years, whichever is greater; or

8-18 (2) The fair market value of the business as determined in accordance

8-19 with subsection 6 of NRS 37.009 if the business owner is unable to

8-20 relocate his business establishment to a comparable new location because

8-21 of the operation of a governmental ordinance, regulation or restriction or

8-22 because a comparable business location is not available.

8-23 2. The provisions of this section do not apply to a month-to-month

8-24 [tenancies.] tenancy, unless the property is located in a county whose

8-25 population is 100,000 or more and the tenant has rented or leased the

8-26 property continuously for at least 3 years. For the purposes of this

8-27 subsection, a month-to-month tenancy is not created by the monthly

8-28 payment of rent pursuant to a lease agreement that covers a period

8-29 greater than 1 month.

8-30 3. The provisions of this section do not apply to a business which

8-31 executes an initial lease within 1 year before the approval of a

8-32 development agreement or other similar action of a governmental body

8-33 identifying the property that will be acquired, unless the business is

8-34 renewing a lease on a site that it has occupied for more than 1 year before

8-35 the identification of the property that will be acquired.

8-36 4. A governmental body may adopt ordinances or regulations or take

8-37 any other appropriate action which allows a business to be relocated to a

8-38 comparable business location.

8-39 5. As used in this section, "comparable business location" means a

8-40 location that is decent, safe and sanitary, adequate in size for the needs of

8-41 the displaced business, functionally equivalent for the purposes of the

8-42 displaced business and located in an area not subject to unreasonably

8-43 adverse environmental conditions.

9-1 6. Nothing contained in this section requires a governmental body to

9-2 relocate a business to a location in a redevelopment area or an area similar

9-3 to a redevelopment area, or to provide the benefits that a location in a

9-4 redevelopment area would provide.

9-5 Sec. 17. This act becomes effective on July 1, 1999.

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