§ 3201. Definitions
The following terms wherever used or referred to in this chapter shall have the following
meanings, unless a different meaning is clearly indicated by the context:
(1) “Agency” or “urban renewal agency” shall mean a public agency created by section 3220 of this title.
(2) “Area of operation” shall mean the area within the corporate limits of the municipality
and the area within five miles of such limits, except that it shall not include any
area which lies within the territorial boundaries of another incorporated city or
town unless a resolution shall have been adopted by the governing body of such other
city or town declaring a need therefor.
(3) “Blighted area” shall mean an area which, by reason of the presence of a substantial
number of slum, deteriorated, or deteriorating structures; predominance of defective
or inadequate street layout; faulty lot layout in relation to size, adequacy, accessibility,
or usefulness; insanitary or unsafe conditions; deterioration of site or other improvements;
diversity of ownership; tax or special assessment delinquency exceeding the fair value
of the land; defective or unusual conditions of title; or the existence of conditions
which endanger life or property by fire and other causes; or any combination of such
factors, substantially impairs or arrests the sound growth of a municipality, retards
the provision of housing accommodations, or constitutes an economic or social liability
and is a menace to the public health, safety, morals, or welfare in its present condition
and use. If such blighted area consists of open land the conditions contained in the
proviso in subsection 3207(d) of this title shall apply. Any disaster area referred to in subsection 3207(g) of this title shall constitute a “blighted area.” No area shall be determined to be a blighted
area solely or primarily because its condition and value for tax purposes are less
than the condition and value projected as the result of the implementation of any
State, municipal, or private redevelopment plan.
(4) “Board” or “commission” shall mean a board, commission, department, division, office,
body, or other unit of the municipality.
(5) “Bonds” shall mean any bonds, including refunding bonds, notes, interim certificates,
certificates of indebtedness, debentures, or other obligations.
(6) “Clerk” shall mean the clerk or other official of the municipality who is the custodian
of the official records of such municipality.
(7) “Federal government” shall include the United States of America or any agency or instrumentality,
corporate or otherwise, of the United States of America.
(7a) “Housing authority” means a housing authority established under chapter 113 of this
title.
(8) “Local governing body” shall mean the council or other legislative body charged with
governing the municipality.
(9) “Mayor” shall mean the mayor of a municipality or other officer or body having the
duties customarily imposed upon the executive head of a municipality.
(10) “Municipality” shall mean any city, village, or town in the State.
(11) “Obligee” shall include any bondholder, agents, or trustees for any bondholders, or
lessor demising to the municipality property used in connection with an urban renewal
project, or any assignee or assignees of such lessor’s interest or any part thereof,
and the federal government when it is a party to any contract with the municipality.
(12) “Person” shall mean any individual, firm, partnership, corporation, company, association,
joint stock association, or body politic; and shall include any trustee, receiver,
assignee, or other person acting in a similar representative capacity.
(13) “Public body” shall mean the State or any municipality, township, village, board,
commission, authority, district, or any other subdivision or public body of the State.
(14) “Public officer” shall mean any officer who is in charge of any department or branch
of the government of the municipality relating to health, fire, building regulations,
or to other activities concerning dwellings in the municipality.
(15) “Real property” shall include all lands, including improvements and fixtures thereon,
and property of any nature appurtenant thereto, or used in connection therewith, and
every estate, interest, right, and use, legal or equitable therein, including terms
for years and liens by way of judgment, mortgage, or otherwise.
(15a) “Related activities” means:
(A) planning work for the preparation of a general neighborhood renewal plan, or for the
preparation or completion of a community-wide plan or program under section 3208 of this title; and
(B) the functions related to the acquisition and disposal of real property under subdivision 3209(4) of this title.
(16) “Slum area” shall mean an area in which there is a predominance of buildings or improvements,
whether residential or nonresidential, which by reason of dilapidation, deterioration,
age, or obsolescence; inadequate provision for ventilation, light, air, sanitation,
or open spaces; high density of population and overcrowding; or the existence of conditions
which endanger life or property by fire and other causes; or any combination of such
factors is conducive to ill health, transmission of disease, infant mortality, juvenile
delinquency, or crime, and is detrimental to the public health, safety, morals, or
welfare.
(17) “Urban renewal area” means a slum area or a blighted area or a combination thereof
which the local governing body designates as appropriate for an urban renewal project.
(18) “Urban renewal plan” means a plan, as it exists from time to time, for an urban renewal
project, which plan:
(A) shall conform to the general plan for the municipality as a whole except as provided
in subsection 3207(g) of this title and shall be consistent with definite local objectives respecting appropriate land
uses, improved traffic, public transportation, public utilities, recreational and
community facilities, and other public improvements;
(B) shall be sufficiently complete to indicate such land acquisition, demolition and removal
of structures and redevelopment, and such rehabilitation as may be proposed to be
carried out in the urban renewal area, to indicate proposed zoning and planning changes,
if any, land uses, maximum densities, and building requirements, and to indicate in
general terms the types of public improvements and proposal for redevelopment to be
permitted or required; and
(C) may include such additional materials as may from time to time be required by federal
laws, regulations, and administrative requirements.
(19) “Urban renewal project” may include undertakings and activities of a municipality
in an urban renewal area for the elimination and for the prevention of the development
or spread of slums and blight, and may involve slum clearance and redevelopment in
an urban renewal area, or rehabilitation or conservation in an urban renewal area,
or any combination or part thereof in accordance with an urban renewal plan. Such
undertakings and activities may include:
(A) acquisition of a slum area or a blighted area or portion thereof;
(B) demolition and removal of buildings and improvements;
(C) installation, construction, or reconstruction of streets, utilities, parks, playgrounds,
and other improvements necessary for carrying out in the urban renewal area the urban
renewal objectives of this chapter in accordance with the urban renewal plan;
(D) disposition of any property acquired in the urban renewal area, including sale, initial
leasing, or retention by the municipality itself, at its fair value for uses in accordance
with urban renewal plan;
(E) acquisition of real property in the urban renewal area which, under the urban renewal
plan, is to be repaired or rehabilitated for dwelling use or related facilities, repair
or rehabilitation of the structures for guidance purposes, and resale of the property;
(F) acquisition, without regard to any requirement that the area be a slum or blighted
area, of air rights in an area consisting principally of land in highways, railway
or subway tracks, bridge or tunnel entrances, or other similar facilities which have
a blighting influence on the surrounding area and over which air rights sites are
to be developed for the elimination of those blighting influences and for the provision
of housing and related facilities and uses designed specifically for, and limited
to, families and individuals of low or moderate income;
(G) construction of foundations and platforms necessary for the provision of air rights
sites of housing and related facilities and uses designed specifically for, and limited
to, families and individuals of low or moderate income;
(H) related activities as defined in subdivision (15a) of this section;
(I) carrying out plans for a program of voluntary or compulsory repair and rehabilitation
of buildings or other improvements in accordance with the urban renewal plan; and
(J) acquisition of any other real property in the urban renewal area where necessary to
eliminate unhealthful, insanitary, or unsafe conditions, lessen density, eliminate
obsolete or other uses detrimental to the public welfare, or otherwise to remove or
prevent the spread of blight or deterioration, or to provide land for needed public
facilities. (Amended 1963, No. 2, § 4, eff. Feb. 14, 1963; 1966, No. 69 (Sp. Sess.), §§ 1, 2, eff. March 14, 1966; 2005, No. 111 (Adj. Sess.), § 2.)
§ 3202. Repealed. 1963, No. 2, § 2, eff. Feb. 14, 1963.
§ 3203. Findings and declarations of necessity
(a) It is hereby found and declared that there exist in municipalities of the State slum
and blighted areas, as herein defined, which constitute a serious and growing menace,
injurious to the public health, safety, morals, and welfare of the residents of the
State; that the existence of such areas contributes substantially and increasingly
to the spread of disease and crime, constitutes an economic and social liability imposing
onerous municipal burdens which decrease the tax base and reduce tax revenues, substantially
impairs or arrests the sound growth of municipalities, retards the provision of housing
accommodations, aggravates traffic problems and substantially impairs or arrests the
elimination of traffic hazards and the improvement of traffic facilities; and that
the prevention and elimination of slums and blight is a matter of State policy and
State concern in order that the State and its municipalities shall not continue to
be endangered by areas which are focal centers of disease, promote juvenile delinquency,
and consume an excessive proportion of its revenues because of the extra services
required for police, fire, accident, hospitalization, and other forms of public protection,
services, and facilities.
(b) It is further found and declared that certain slum or blighted areas, or portions
thereof, may require acquisition, clearance, and disposition subject to use restrictions,
as provided in this chapter, since the prevailing condition of decay may make impracticable
the reclamation of the area by conservation or rehabilitation; that other areas or
portions thereof may, through the means provided in this chapter, be susceptible of
conservation or rehabilitation in such a manner that the conditions and evils hereinbefore
enumerated may be eliminated, remedied, or prevented; and that salvable slum and blighted
areas can be conserved and rehabilitated through appropriate public action as herein
authorized, and the cooperation and voluntary action of the owners and tenants of
property in such areas.
(c) It is further found and declared that the powers conferred by this chapter are for
public uses and purposes for which public money may be expended and the power of eminent
domain and police power exercised; and that the necessity in the public interest for
the provisions herein enacted is hereby declared as a matter of legislative determination.
§ 3204. Encouragement of private enterprise
A municipality, to the greatest extent it determines to be feasible in carrying out
the provisions of this chapter, shall afford maximum opportunity, consistent with
the sound needs of the municipality as a whole, to the rehabilitation or redevelopment
of the urban renewal area by private enterprise. A municipality shall give consideration
to this objective in exercising its powers under this chapter, including the formulation
of a workable program, the approval of urban renewal plans and community-wide plans
or programs for urban renewal and general neighborhood renewal plans consistent with
the general plan of the municipality, the exercise of its zoning powers, the enforcement
of other laws, codes, and regulations relating to the use of land and the use and
occupancy of buildings and improvements, the disposition of any property acquired,
and the provision of necessary public improvements. (Amended 1966, No. 69 (Sp. Sess.), § 3, eff. March 14, 1966.)
§ 3205. Workable program
A municipality for the purposes of this chapter may formulate for the municipality
a workable program for utilizing appropriate private and public resources to eliminate
and prevent the development or spread of slums and urban blight, to encourage needed
urban rehabilitation, to provide for the redevelopment of slum and blighted areas,
or to undertake such of the aforesaid activities or other feasible municipal activities
as may be suitably employed to achieve the objectives of such workable program. Such
workable program may include provision for: the prevention of the spread of blight
into areas of the municipality which are free from blight through diligent enforcement
of housing, zoning, and occupancy controls and standards; the rehabilitation or conservation
of slum and blighted areas or portions thereof by re-planning, removing congestion,
providing parks, playgrounds, and other public improvements, by encouraging voluntary
rehabilitation and by compelling the repair and rehabilitation of deteriorated or
deteriorating structures; and the clearance and redevelopment of slum and blighted
areas or portions thereof.
§ 3206. Finding of necessity by local governing body
No municipality shall exercise the authority hereafter conferred upon municipalities
by this chapter until after it has voted by a majority of the voters present and voting
on the question at a regular or special meeting duly warned for such purpose to adopt
a resolution finding that: (1) one or more slum or blighted areas exist in such municipality;
and (2) the rehabilitation, conservation, redevelopment, or a combination thereof,
of such area or areas is necessary in the interest of the public health, safety, morals,
or welfare of the residents of such municipality.
§ 3207. Preparation and approval of urban renewal projects and urban renewal plans
(a) A municipality shall not approve an urban renewal project for an urban renewal area
unless the governing body has, by resolution, determined such area to be a slum area
or a blighted area or a combination thereof and designated such area as appropriate
for an urban renewal project. The local governing body shall not approve an urban
renewal plan until a general plan for the municipality has been prepared. A municipality
shall not acquire real property for an urban renewal project unless the local governing
body has approved the urban renewal project in accordance with subsection (d) of this
section.
(b) The municipality may itself prepare or cause to be prepared an urban renewal plan,
or any person or agency, public or private, may submit such a plan to a municipality.
Prior to its approval of an urban renewal project, the local governing body shall
submit such plan to the planning commission of the municipality, if any, for review
and recommendations as to its conformity with the general plan for the development
of the municipality as a whole. The planning commission shall submit its written
recommendations with respect to the proposed urban renewal plan to the local governing
body within 30 days after receipt of the plan for review. Upon receipt of the recommendations
of the planning commission or, if no recommendations are received within said 30 days,
then without such recommendations, the local governing body may proceed with the hearing
on the proposed urban renewal project prescribed by subsection (c) of this section.
(c) The local governing body shall hold a public hearing on an urban renewal project,
after public notice thereof by publication in a newspaper having a general circulation
in the area of operation of the municipality. The notice shall describe the time,
date, place, and purpose of the hearing, shall generally identify the urban renewal
area covered by the plan, and shall outline the general scope of the urban renewal
project under consideration.
(d) Following such hearing, the local governing body may approve an urban renewal project
if it finds that (1) a feasible method exists for the location of families who will
be displaced from the urban renewal area in decent, safe, and sanitary dwelling accommodations
within their means and without undue hardship to such families; (2) the urban renewal
plan gives due consideration to the provision of adequate park and recreational areas
and facilities that may be desirable for neighborhood improvement, with special consideration
for the health, safety, and welfare of children residing in the general vicinity of
the site covered by the plan; (3) the urban renewal plan conforms to the general plan
of the municipality as a whole; and (4) the urban renewal plan will afford maximum
opportunity, consistent with the sound needs of the municipality as a whole, for the
rehabilitation or redevelopment of the urban renewal area by private enterprise; provided,
that if the urban renewal area consists of an area of open land to be acquired by
the municipality, such area shall not be so acquired unless (A) if it is to be developed
for residential uses, the local governing body shall determine that a shortage of
housing of sound standards and design which is decent, safe, and sanitary exists in
the municipality; that the need for housing accommodations has been or will be increased
as a result of the clearance of slums in other areas, including other portions of
the urban renewal area; that the conditions of blight in the area and the shortage
of decent, safe, and sanitary housing cause or contribute to an increase in and spread
of disease and crime and constitute a menace to the public health, safety, morals,
or welfare; and the acquisition of the area for residential uses is an integral part
of an essential to the program of the municipality; or (B) if it is to be developed
for nonresidential uses, the local governing body shall determine that such nonresidential
uses are necessary and appropriate to facilitate the proper growth and development
of the community in accordance with sound planning standards and local community objectives,
with acquisition may require the exercise of governmental action, as provided in this
chapter, because of defective or unusual conditions of title, diversity of ownership,
tax delinquency, improper subdivisions, outmoded street patterns, deterioration of
site, economic disuse, unsuitable topography or faulty lot layouts, the need for the
correlation of the area with other areas of a municipality by streets and modern traffic
requirements, or any combination of such favors or other conditions which retard development
of the area.
(e) An urban renewal plan may be modified at any time; provided, that if modified after
the lease or sale by the municipality of real property in the urban renewal project
area, such modification may be conditioned upon such approval of the owner, lessee,
or successor in interest as the municipality may deem advisable and in any event shall
be subject to such rights at law or in equity as a lessee or purchaser, or his successor
or successors in interest, may be entitled to assert.
(f) Upon the approval by a municipality by a vote of a majority of the voters present
and voting on the question at a regular or special meeting duly warned for that purpose
of an urban renewal plan or of any modification thereof, such plan or modification
shall be deemed to be in full force and effect for the respective urban renewal area
and the municipality may then cause such plan or modification to be carried out in
accordance with its terms.
(g) Notwithstanding any other provisions of this chapter, where the local governing body
certifies that an area is in need of redevelopment or rehabilitation as a result of
a flood, fire, hurricane, earthquake, storm, or other catastrophe respecting which
the government of the State has certified the need for disaster assistance under Public
Law 875, eighty-first Congress, or other federal law, the local governing body may
approve an urban renewal plan and an urban renewal project with respect to such area
without regard to the provisions of subsection (d) of this section and the provisions
of this section requiring a general plan for the municipality and a public hearing
on the urban renewal project. (Amended 1966, No. 69 (Sp. Sess.), § 4, eff. March 14, 1966.)
§ 3208. Neighborhood and community-wide plans
(a) A municipality or a planning commission may prepare a general neighborhood renewal
plan for an urban renewal area, together with any adjoining areas having specially
related problems, which may be of such scope that urban renewal activities may have
to be carried out in stages. The plan may include a preliminary plan which:
(1) outlines the urban renewal activities, proposed for the areas involved;
(2) provides a framework for the preparation of urban renewal plans; and
(3) indicates generally the land uses, population density, building coverage, prospective
requirements for rehabilitation, and improvement of property and portions of the area
contemplated for clearance and redevelopment.
A general neighborhood renewal plan shall, in the determination of the local governing
body, conform to the general plan of the locality as a whole and the workable program
of the municipality.
(b) A municipality or planning commission may prepare or complete a community-wide plan
or program for urban renewal which shall conform to the general plan for the development
of the municipality as a whole and may include identification of slum or blighted
areas, measurement of blight, determination of resources needed and available to renew
those areas, identification of potential project areas and types of action contemplated,
and scheduling of urban renewal activities. (Added 1966, No. 69 (Sp. Sess.), § 5, eff. March 14, 1966.)
§ 3209. Powers
Every municipality shall have all the powers necessary or convenient to carry out
and effectuate the purposes and provisions of this chapter, including the following
powers in addition to others herein granted:
(1) to undertake and carry out urban renewal projects within its area of operation; and
to make and execute contracts and other instruments necessary or convenient to the
exercise of its powers under this chapter; and to disseminate slum clearance and urban
renewal information;
(2) to provide or to arrange or contract for the furnishing or repair by any person or
agency, public or private, of services, privileges, works, streets, roads, public
utilities, or other facilities for or in connection with an urban renewal project;
to install, construct, and reconstruct streets, utilities, parks, playgrounds, and
other public improvements; and to agree to any conditions that it may deem reasonable
and appropriate attached to federal financial assistance and imposed pursuant to federal
law relating to the determination of prevailing salaries or wages or compliance with
labor standards, in the undertaking or carrying out of an urban renewal project, and
to include in any contract let in connection with such a project, provisions to fulfill
such of said conditions as it may deem reasonable and appropriate;
(3) within its area of operation, to enter into any building or property in any urban
renewal area in order to make inspections, surveys, appraisals, soundings, or test
borings, and to obtain an order for this purpose from a court of competent jurisdiction
in the event entry is denied or resisted; to acquire by purchase, lease, option, gift,
grant, bequest, devise, eminent domain, or otherwise, any real property, or personal
property for its administrative purposes, together with any improvements thereon;
to hold, improve, clear, or prepare for redevelopment any such property; to mortgage,
pledge, hypothecate, or otherwise encumber or dispose of any real property; to insure
or provide for the insurance of any real or personal property or operations of the
municipality against any risks or hazards, including the power to pay premiums on
any such insurance; and to enter into any contracts necessary to effectuate the purposes
of this chapter; provided, however, that no statutory provision with respect to the
acquisition, clearance, or disposition of property by public bodies shall restrict
a municipality or other public body exercising powers hereunder, in the exercise of
such functions with respect to an urban renewal project, unless the Legislature shall
specifically so state;
(4) with the approval of the local governing body, (A) before approval of an urban renewal
plan, or approval of any modifications of the plan, to acquire real property in an
urban renewal area, demolish and remove any structures on the property, and pay all
costs related to the acquisition, demolition, or removal, including any administrative
or relocation expenses; and (B) to assume the responsibility to bear any loss that
may arise as the result of the exercise of authority under this subsection if the
real property is not made part of the urban renewal project;
(5) to invest any urban renewal project funds held in reserve or sinking funds or any
such funds not required for immediate disbursement, in property or securities in which
savings banks may legally invest funds subject to their control; to redeem such bonds
as have been issued pursuant to section 3214 of this title at the redemption price established therein or to purchase such bonds at less than
redemption price, all such bonds so redeemed or purchased to be cancelled;
(6) to borrow money and to apply for and accept advances, loans, grants, contributions,
and any other form of financial assistance from the federal government, the State,
county, or other public body, or from any sources, public or private, for the purposes
of this chapter, and to give such security as may be required and to enter into and
carry out contracts in connection therewith. A municipality may include in any contract
for financial assistance with the federal government for an urban renewal project
such conditions imposed pursuant to federal laws as the municipality may deem reasonable
and appropriate and which are not inconsistent with the purposes of this chapter;
(7) within its area of operation, to make or have made all surveys and plans necessary
to the carrying out of the purposes of this chapter and to contract with any person,
public or private, in making and carrying out such plans and to adopt or approve,
modify, and amend such plans. Such plans may include: (A) a general plan for the
locality as a whole, (B) urban renewal plans, (C) preliminary plans outlining urban
renewal activities for neighborhoods to embrace two or more urban renewal areas, (D)
plans for carrying out a program of voluntary or compulsory repair and rehabilitation
of buildings and improvements, (E) plans for the enforcement of State and local laws,
codes, and regulations relating to the use of land and the use and occupancy of buildings
and improvements and to the compulsory repair, rehabilitation, demolition, or removal
of buildings and improvements, (F) appraisals, title searches, surveys, studies, and
other plans and work necessary to prepare for the undertaking of urban renewal projects
and to develop, test, and report methods and techniques, and carry out demonstrations
and other activities, for the prevention and the elimination of slums and urban blight
and developing and demonstrating new or improved means of providing housing for families
and persons of low income and to apply for, accept, and utilize grants of funds from
the federal government for such purposes;
(8) to prepare plans for and assist in the relocation of persons, including individuals,
families, business concerns, nonprofit organizations, and others, displaced from an
urban renewal area, and to make relocation payments to or with respect to such persons
for moving expenses and losses of property, including the making of such payments
financed by the federal government;
(9) to appropriate such funds and make such expenditures as may be necessary to carry
out the purposes of this chapter, and to levy taxes and assessments for such purposes;
to zone or rezone any part of the municipality or make exceptions from building regulations;
and to enter into agreements with a housing authority or an urban renewal agency vested
with urban renewal project powers under section 3219 of this title, which agreements may extend over any period, notwithstanding any provision or rule
of law to the contrary, respecting action to be taken by such municipality pursuant
to any of the powers granted by this chapter;
(10) to close, vacate, plan, or replan streets, roads, sidewalks, ways, or other places;
and to plan or replan any part of the municipality;
(11) within its area of operation, to organize, coordinate, and direct the administration
of the provisions of this chapter as they apply to such municipality in order that
the objective of remedying slum and blighted areas and preventing the causes thereof
within such municipality may be most effectively promoted and achieved, and to establish
such new office or offices of the municipality or to reorganize existing offices in
order to carry out such purpose most effectively; and
(12) to exercise all or any part or combination of powers herein granted. (Amended 1966, No. 69 (Sp. Sess.), § 6, eff. March 14, 1966.)
§ 3210. Eminent domain; authority; survey
(a) A municipality shall have the right to acquire by condemnation a fee simple title
or any other interest in real property which it may determine necessary for or in
connection with an urban renewal project under this chapter. The powers conferred
upon municipalities under this section shall be considered “urban renewal project
powers” as defined in subsection 3219(b) of this title and the term “municipality,”, as used in this section, shall mean the agency, board,
commissioner or officers having such powers under subsection 3219(a) of this title. The municipality shall set out the necessary lands and cause them to be surveyed.
An urban renewal plan approved under subsection 3207(d) of this title may be considered to constitute such a survey.
(b) Unless two-thirds of the voters present and voting thereon at an annual or special
meeting duly warned for that purpose vote otherwise, nothing in this section shall
be construed to authorize the taking, by condemnation proceedings, of property of
any religious, charitable, or educational society, institution, or organization, unless
held or used by it for commercial purposes, without the written consent of the trustees
or the governing body of such society, institution, or organization. Property already
devoted to a public use may be acquired hereunder but no real property belonging to
the State or any political subdivision thereof shall be acquired without its consent. (Amended 1963, No. 2, § 3, eff. Feb. 14, 1963; 1964, No. 9 (Sp. Sess.), § 1, eff. March 5, 1964.)
§ 3211. Determination of necessity
(a) After completion of such survey, the municipality shall petition a Superior Court
judge, setting forth therein that it proposes to take certain land or rights therein
and describing such lands or rights, and the survey shall be annexed to the petition
and made a part thereof. The petition shall set forth the purposes for which the land
or rights are desired, and shall contain a request that the judge fix a time and place
when the judge, or some other Superior Court judge, will hear all parties concerned
and determine whether such taking is necessary.
(b) The Superior Court judge to whom the petition is presented shall fix the time for
hearing, which shall not be more than 60 nor less than 40 days from the date the judge
signs such order. Likewise, the judge shall fix the place for hearing, which shall
be the county courthouse or any other place within the county in which the land in
question is located. If the Superior Court judge to whom the petition is presented
cannot hear the petition at the time set therefor, the judge shall call upon the Chief
Superior Judge to assign another Superior Court judge to hear the cause at the time
and place assigned in the order.
(c) Notice of hearing on the petition, which shall include the name of the city, town,
or village in which the lands to be taken or affected are located, the names of the
persons having an interest in the lands, a brief statement identifying the urban renewal
projects contemplated including its location, and the date, time, and place of hearing
shall be published in a newspaper having general circulation in the city, town, or
village in which the lands lie, once a week for three consecutive weeks on the same
day of the week, the last publication to be not less than five days before the hearing
date, and a complete copy of the original petition, together with a copy of the court’s
order fixing the time and place of hearing, and a copy of the survey shall be placed
on file in the clerk’s office of the city, town, or village in which the land included
in the survey lies. A copy of the petition, together with the court’s order fixing
the time and place of hearing, shall be served upon each person owning or having an
interest in land to be purchased or condemned like a summons by an officer authorized
to make service of process under Vermont statutes and residing in the county in which
the petition is to be served, or, on absent defendants in such manner as the Supreme
Court may by rule provide for service of process in civil actions. If the service
on any defendant is impossible, upon affidavit of the sheriff, deputy sheriff, or
constable attempting service, stating that the location of the defendant within or
without the State is unknown and that he or she has no known agent or attorney in
the State of Vermont upon which service may be made, and upon affidavit of an officer
of the municipality that diligent inquiry has been made to find the location of the
defendant, the publication herein provided shall be considered sufficient service
on the defendant. Petitions shall be returnable to the court on the tenth day next
preceding the date set for hearing thereon. Compliance with the provisions hereof
shall constitute sufficient service upon and notice to any persons owning or having
any interest in the land proposed to be taken or affected.
(d) At the time and place appointed for the hearing, the court consisting of the Superior
Court judge signing the order or such other Superior Court judge as may be assigned
and the two assistant judges of the county in which the hearing is held shall hear
all persons interested and wishing to be heard. If any person owning or having an
interest in the land to be taken or affected appears and objects to the necessity
of taking the land included within the survey or any part thereof, then the court
shall require the municipality to proceed with the introduction of evidence of the
necessity of such taking. The court may cite in additional parties in its discretion,
shall make findings of fact, and shall file the same. The court shall, by its order,
determine whether the taking of such land and rights is necessary and may modify the
proposed taking in such respects as the court may consider proper.
(e) An appeal may be taken to the Supreme Court by any party aggrieved in such manner
as the Supreme Court may by rule provide for appeals from Superior Courts. If an appeal
is taken, all proceedings shall be stayed until final disposition of the appeal. If
no appeal is taken within the time provided for or, if appeal is taken, upon final
disposition thereof, a copy of the order of the court shall be placed on file in the
office of the clerk of the city, town, or village where the urban renewal project
is located and within a period of two years from the final order the municipality
may institute proceedings for the condemnation of the land included in the survey
as finally approved by the court without further hearing or consideration of the question
of the necessity of such taking.
(f) In considering the issue of necessity, the Superior Court and assistant judges shall,
to the extent constitutionally permitted, give effect to the legislative determinations
made in this chapter and to the determinations made by the voters and appropriate
municipal authorities under this chapter. The court shall not give weight to a projected
increase in economic value of the subject property solely or primarily because its
condition and value for tax purposes are less than the condition and value projected
as the result of the implementation of any State, municipal, or private redevelopment
plan. (Added 1964, No. 9 (Sp. Sess.), § 2, eff. March 5, 1964; amended 1971, No. 185 (Adj. Sess.), § 201, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2005, No. 111 (Adj. Sess.), § 3; 2021, No. 147 (Adj. Sess.), § 27, eff. May 31, 2022.)
§ 3212. Determination of compensation; payment; proceeds from bonding
(a) Following the final determination of the necessity of the taking, the municipality
may proceed to acquire such lands. Whenever a municipality and an owner of land or
rights agree as to the amount of compensation to be paid therefor, the municipality
may take possession of the land or rights and proceed with the work for which it is
taken upon making the agreed payment therefor. When an owner and the municipality
are unable to agree on the amount of compensation to be paid therefor, and if the
municipality desires to proceed with the taking thereof, it shall appoint a time and
place for hearing and give at least ten days’ notice thereof before such hearing to
the persons interested, either personally or by written notice left at the residence
of the owner or occupants of such lands. At such hearing it shall hear any person
having an interest in such land and desiring to be heard. Within 20 days thereafter,
it shall by order assess the damages sustained by such interested persons. The municipality
shall file a copy of such order for record in the office of the clerk of the city,
town, or village in which the land lies, and shall deliver to each interested person
a copy of that portion of the order directly affecting such person and shall pay or
tender 95 percent of the award to each person entitled thereto which may be accepted,
retained, and disposed of to his or her own use without prejudice to such person’s
right of appeal as hereafter provided. Within ten days after the expiration of the
period for taking an appeal from the amount of the award, the municipality shall pay
or tender the remaining five percent to each person entitled thereto who has not appealed
from said award. Upon the payment or tender of 95 percent of the award as above provided,
the municipality may take possession of such land and proceed with the work for which
it is taken. When an appeal has been taken by any person having an interest in any
property, the remaining five percent awarded on account of the taking of such property
shall be retained by the municipality pending final disposition of the appeal.
(b) When a person having an interest in the land is dissatisfied with the damages awarded
therefor, the person may appeal to the Superior Court of the county wherein the land
lies within 90 days of the recording of the order of the municipality. Any number
of persons aggrieved may join in the appeal. Each of the appellants shall be entitled
to a trial by jury.
(c) When the award made by the municipality is upheld, the court shall tax costs against
the appellant, and, after deduction of taxed costs, the municipality shall forthwith
pay appellant the balance, if any, of the five percent of award withheld, and, if
such five percent of award withheld is insufficient to pay such costs, appellant shall
pay the municipality such amounts at such time as the court may direct. When the
appellant is allowed a sum greater than was awarded by the municipality, the court
shall tax costs against the municipality, the municipality shall forthwith pay appellant
the five percent of award withheld, and the municipality shall pay appellant such
further amounts at such time as the court may direct.
(d) The full faith and credit of the municipality shall be pledged to the payment of all
amounts awarded by such municipality or by order of the court and, if the funds of
the municipality shall be insufficient to pay the amounts, the full faith, credit,
and taxing power of the city, town, or village in which the applicable lands lie shall
be pledged to such payment to the extent of the insufficiency. The local governing
body of any city, town, or village may raise money by taxation to pay such amounts
as the municipality lacks funds to pay, irrespective of any tax rate limits imposed
by any general or special law. No obligation of a city, town, or village under this
section shall be considered to be indebtedness for the purpose of any debt limit imposed
by any general or special law.
(e) Title to the lands taken, or rights acquired, under this section shall vest in the
municipality upon the filing for record of the municipality’s order under subsection
(a) of this section, unless previously acquired by deed or other appropriate instrument.
(f) The legality of any proceedings hereunder shall not be affected as to any person by
a deficiency in the notice to any other person.
(g) If the necessity of the taking of any land for an urban renewal project is not sustained
by the court, or if the taking of any such land is held to be invalid, the validity
of bonds issued under subsection 3217(d) of this title shall not be affected; and the proceeds thereof may be expended for any lawful expenses
of the project, and any excess proceeds may be expended for the lawful expenses of
any other urban renewal project or for the payment of the principal of and interest
on any outstanding general obligation of the city, town, or village issued for any
purpose. (1964, No. 9 (Sp. Sess.), § 3, eff. March 5, 1964; amended 1965, No. 8; 1971, No. 185 (Adj. Sess.), § 202, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1997, No. 161 (Adj. Sess.), § 19, eff. Jan. 1, 1998.)
§ 3213. Disposal of property in urban renewal area
(a)(1) A municipality may sell, lease, or otherwise transfer real property or any interest
therein acquired by it, and may enter into contracts with respect thereto, in an urban
renewal area for residential, recreational, commercial, industrial, or other uses
or for public use, or may retain such property or interest for public use, in accordance
with the urban renewal plan, subject to such covenants, conditions, and restrictions,
including covenants running with the land, as it may deem to be necessary or desirable
to assist in preventing the development or spread of future slums or blighted areas
or to otherwise carry out the purposes of this chapter; provided, that such sale,
lease, other transfer, or retention, and any agreement relating thereto, may be made
only after the approval of the urban renewal plan by vote of the municipality as provided
in subsection 3207(f) of this title.
(2) The purchasers or lessees and their successors and assigns shall be obligated to devote
such real property only to the uses specified in the urban renewal plan, and may be
obligated to comply with such other requirements as the municipality may determine
to be in the public interest, including the obligation to begin within a reasonable
time any improvements on such real property required by the urban renewal plan.
(3) Such real property or interest shall be sold, leased, otherwise transferred, or retained
at not less than its fair value for uses in accordance with the urban renewal plan.
In determining the fair value of real property for uses in accordance with the urban
renewal plan, a municipality shall take into account and give consideration to the
uses provided in such plan; the restrictions upon, and the covenants, conditions,
and obligations assumed by the purchaser or lessee or by the municipality retaining
the property; and the objectives of such plan for the prevention of the recurrence
of slum or blighted areas.
(4) The municipality in any instrument of conveyance to a private purchaser or lessee
may provide that such purchaser or lessee shall be without power to sell, lease, or
otherwise transfer the real property without the prior written consent of the municipality
until he or she has completed the construction of any or all improvements which he
or she has obligated himself or herself to construct thereon.
(5) Real property acquired by a municipality which, in accordance with the provisions
of the urban renewal plan, is to be transferred, shall be transferred as rapidly as
feasible in the public interest consistent with the carrying out of the provisions
of the urban renewal plan.
(6) Any contract for such transfer and the urban renewal plan, or such part or parts of
such contract or plan as the municipality may determine, may be recorded in the land
records of the municipality in such manner as to afford actual or constructive notice
thereof.
(b) A municipality may dispose of real property in an urban renewal area to private persons
only under such reasonable competitive bidding procedures as it shall prescribe or
as hereinafter provided in this subsection. A municipality may, by public notice
by publication in a newspaper having a general circulation in the community, 30 days
prior to the execution of any contract to sell, lease, or otherwise transfer real
property and prior to the delivery of any instrument of conveyance with respect thereto
under the provisions of this section, invite proposals from and make available all
pertinent information to private redevelopers or any persons interested in undertaking
to redevelop or rehabilitate an urban renewal area, or any part thereof. Such notice
shall identify the area, or portion thereof, and shall state that proposals shall
be made by those interested within 30 days after the date of publication of said notice,
and that such further information as is available may be obtained at such office as
shall be designated in said notice. The municipality shall consider all such redevelopment
or rehabilitation proposals and the financial and legal ability of the persons making
such proposals to carry them out, and may negotiate with any persons for proposals
for the purchase, lease, or other transfer of any real property acquired by the municipality
in the urban renewal area. The municipality may accept such proposal as it deems
to be in the public interest and in furtherance of the purposes of this chapter; provided,
that notification of intention to accept such proposal shall be filed with the governing
body not less than 30 days prior to any such acceptance. Thereafter, the municipality
may execute such contract in accordance with the provisions of subsection (a) of this
section and deliver deeds, leases, and other instruments and take all steps necessary
to effectuate such contract.
(c) A municipality may temporarily operate and maintain real property acquired in an urban
renewal area pending the disposition of the property as authorized in this chapter,
without regard to the provisions of subsection (a) of this section, for such uses
and purposes as may be deemed desirable even though not in conformity with the urban
renewal plan.
(d) Any real property acquired under subdivision 3209(4) of this title may be disposed of without regard to other provisions of this section if the local
governing body consents to the disposal.
(e) Notwithstanding any other provisions of this chapter, where the municipality is situated
in an area designated as a redevelopment area or economic development center under
the federal Area Redevelopment Act or other federal law enacted to assist in the economic
development of areas suffering substantial and persistent unemployment or underemployment,
land in an urban renewal project area designated under the urban renewal plan for
industrial or commercial use may be disposed of to any public body or nonprofit corporation
for later disposition as promptly as practicable by the public body or corporation,
for redevelopment in accordance with the urban renewal plan, and only the purchaser
from or lessee of the public body or corporation and their assignees shall be required
to assume the obligation of beginning the building of improvements within a reasonable
time. Any disposition of land to a public body or corporation under this subsection
shall be made at its fair value for uses in accordance with the urban renewal plan.
(f) Notwithstanding anything to the contrary contained in this chapter, a municipality
may sell, lease, or otherwise transfer real property or any interest therein acquired
by it for urban renewal purposes:
(1) To any person designated by the municipality and approved by the local governing body
as a qualified eligible sponsor, if:
(A) The municipality publishes, in at least one newspaper of general circulation in the
municipality at least ten days before the sale, lease, or other disposition, a notice
which includes a statement of the identity of the proposed sponsor and his or her
proposed use or re-use of the urban renewal area or of the applicable portion thereof.
That notice shall be in such form and manner as may be prescribed by the municipality.
(B) The proposed sponsor agrees to pay not less than the minimum price or rental fixed
by the municipality for the real property.
(C) The proposed sponsor matches any bid higher than that minimum price or rental.
(D) And the sale, lease, or other disposition requires effectuation of the purpose thereof
within a definite and reasonable time.
(E) If that sponsor does not agree to pay the minimum price or rental fixed by the municipality
or fails to match any higher bid than that minimum price or rental, municipality may,
in its sole discretion and only if consistent with the urban renewal plan, sell or
lease any such real property or any interest therein to any other person bidding under
provisions of subsection (b) of this section.
(2) To any person designated by the municipality and approved by the local governing body
as a qualified sponsor, without bids or other requirements of subsection (b) of this
section, if:
(A) the price or rental to be paid by the sponsor for the property and all other essential
terms and conditions of the sale, lease, or other disposition are included in the
notice published by the municipality under paragraph (A) of subdivision (1) of this
section;
(B) the sale, lease, or other disposition is approved by the local governing body after
a public hearing held not less than ten days after publication of the notice.
(g) Sponsors under subsection (f) of this section shall be designated by following the
procedure set forth in subsection (b) of this section, except that the public notice
therein required need not be made 30 days before the execution of any contract to
sell, lease, or otherwise transfer real property, as set forth in subsection (b) of
this section.
(h) For the effectuation of any of the purposes of an urban renewal project and in accordance
with the urban renewal plan, a municipality may grant, sell, convey, or lease, without
public hearing or public letting and without following the requirements of subsection
(b) of this section, to a public utility subject to the jurisdiction of the Department
of Public Service, for such length of time as it may deem advisable, franchises, easements,
or rights-of-way, in, over, below, along, or across any lands acquired by the municipality
under this chapter, upon such terms and conditions, for such consideration, and subject
to such restrictions as in the judgment of its local governing body seem proper if
the local governing body first determines that the use and enjoyment for those purposes
of those lands is not inconsistent with the purposes and provisions of the urban renewal
plan. (Amended 1966, No. 69 (Sp. Sess.),§§ 7, 8, eff. March 14, 1966.)
§ 3214. Issuance of bonds
(a) A municipality shall have power to issue bonds from time to time in its discretion
to finance the undertaking of any urban renewal project under this chapter, including,
without limiting the generality thereof, the payment of principal and interest upon
any advances for surveys and plans, or preliminary loans and shall also have power
to issue refunding bonds for the payment or retirement of such bonds previously issued
by it. Such bonds shall be made payable, as to both principal and interest, solely
from the income proceeds, revenues, and funds of the municipality derived from or
held in connection with its undertaking and carrying out of urban renewal projects
under this chapter; provided, however, that payment of such bonds, both as to principal
and interest, may be further secured by a pledge of any loan, grant, or contribution
from the federal government or other source, in aid of any urban renewal projects
of the municipality under this chapter, and by a mortgage of any such urban renewal
projects, or any part thereof, title to which is in the municipality.
(b) Bonds issued under this section shall not constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction, and shall not be
subject to the provisions of any other law or charter relating to the authorization,
issuance, or sale of bonds. Bonds issued under the provisions of this chapter are
declared to be issued for an essential public and governmental purpose and, together
with interest thereon and income therefrom, shall be exempted from all taxes.
(c) Bonds issued under this section shall be authorized by resolution or ordinance of
the local governing body and may be payable upon demand or mature at such time or
times, bear interest at such rate or rates, be in such denomination or denominations,
be in such form, either coupon or registered, carry such conversion or registration
privileges, have such rank or priority, be executed in such manner, be payable in
such medium of payment, at such place or places, and be subject to such terms of redemption,
such other characteristics, as may be provided by such resolution or trust indenture
or mortgage issued pursuant thereto.
(d) Such bonds may be sold at not less than par at public sales held after notice published
prior to such sale in a newspaper having a general circulation in the area of operation
and in such other medium of publication as the municipality may determine or may be
exchanged for other bonds on the basis of par; provided, that such bonds may be sold
to the federal government at private sale at not less than par, and, in the event
less than all of the authorized principal amount of such bonds is sold to the federal
government, the balance may be sold at private sale at not less than par at an interest
cost to the municipality of not to exceed the interest cost to the municipality of
the portion of the bonds sold to the federal government.
(e) In case any of the public officials of the municipality whose signatures appear on
any bonds or coupons issued under this chapter shall cease to be such officials before
the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient
for all purposes, the same as if such officials had remained in office until such
delivery. Any provisions of any law to the contrary notwithstanding, any bonds issued
pursuant to this chapter shall be fully negotiable.
(f) In any suit, action, or proceeding involving the validity or enforceability of any
bond issued under this chapter or the security therefore, any such bond reciting in
substance that it has been issued by the municipality in connection with an urban
renewal project, as herein defined, shall be conclusively deemed to have been issued
for such purpose and such project shall be conclusively deemed to have been planned,
located, and carried out in accordance with the provisions of this chapter. (Amended 1966, No. 69 (Sp. Sess.), § 9, eff. March 14, 1966; 1969, No. 285 (Adj. Sess.), § 10, eff. April 9, 1970.)
§ 3215. Bonds as legal investments
All banks, trust companies, bankers, savings banks and institutions, building and
loan associations, savings and loan associations, investment companies, and other
persons carrying on a banking or investment business; all insurance companies, insurance
associations, and other persons carrying on an insurance business; and all executors,
administrators, curators, trustees, and other fiduciaries, may legally invest any
sinking funds, monies, or other funds belonging to them or within their control in
any bonds or other obligations issued by a municipality pursuant to this chapter or
by any urban renewal agency or housing authority vested with urban renewal project
powers under section 3219 of this chapter; provided, that such bonds and other obligations
shall be secured by an agreement between the issuer and the federal government in
which the issuer agrees to borrow from the federal government and the federal government
agrees to lend to the issuer, prior to the maturity of such bonds or other obligations,
monies in an amount which, together with any other monies irrevocably committed to
the payment of interest on such bonds or other obligations, will suffice to pay the
principal of such bonds or other obligations with interest to maturity thereon, which
monies under the terms of said agreement are required to be used for the purpose of
paying the principal of and the interest on such bonds or other obligations at their
maturity. Such bonds and other obligations shall be authorized security for all public
deposits. It is the purpose of this section to authorize any persons, political subdivisions,
and officers, public or private, to use any funds owned or controlled by them for
the purchase of any such bonds or other obligations. Nothing contained in this section
with regard to legal investments shall be construed as relieving any person of any
duty of exercising reasonable care in selecting securities.
§ 3216. Property exempt from taxes and from levy and sale by virtue of an execution
(a) All property of a municipality, including funds, owned or held by it for the purposes
of this chapter shall be exempt from levy and sale by virtue of an execution, and
no execution or other judicial process shall issue against the same nor shall judgment
against a municipality be a charge or lien upon such property; provided, however,
that the provisions of this section shall not apply to or limit the right of obligees
to pursue any remedies for the enforcement of any pledge or lien given pursuant to
this act by a municipality on its rents, fees, grants, or revenues from urban renewal
projects.
(b) The property of a municipality, acquired or held for the purposes of this chapter,
is declared to be public property used for essential public and governmental purposes
and such property shall be exempt from all taxes of the municipality, the county,
the State, or any political subdivision thereof; provided, that such tax exemption
shall terminate when the municipality sells, leases, or otherwise disposes of such
property in an urban renewal area to a purchaser or lessee which is not a public body
entitled to tax exemption with respect to such property.
§ 3217. Cooperation by public bodies
(a)(1) For the purpose of aiding in the planning, undertaking, or carrying out of an urban
renewal project located within the area in which it is authorized to act, any public
body may, upon such terms, with or without consideration, as it may determine:
(A) dedicate, sell, convey, or lease any of its interest in any property or grant easements,
licenses, or other rights or privileges therein to a municipality;
(B) incur the entire expense of any public improvements made by such public body in exercising
the powers granted in this section;
(C) do any and all things necessary to aid or cooperate in the planning or carrying out
of an urban renewal plan;
(D) lend, grant, or contribute funds to a municipality;
(E) enter into agreements that may extend over any period, notwithstanding any provisions
or rule of law to the contrary, with a municipality or other public body respecting
action to be taken pursuant to any of the powers granted by this chapter, including
the furnishing of funds or other assistance in connection with an urban renewal project;
and
(F) cause public buildings and public facilities, including parks, playgrounds, recreational,
community, educational, water, sewer or drainage facilities, or any other works that
it is otherwise empowered to undertake to be furnished; furnish, dedicate, close,
vacate, pave, install, grade, regrade, plan or replan streets, roads, sidewalks, ways,
or other places; plan, replan, zone, or rezone any part of the public body or make
exceptions from building regulations; and cause administrative and other services
to be furnished to the municipality.
(2) If at any time title to or possession of any urban renewal project is held by any
public body or governmental agency, other than the municipality, that is authorized
by law to engage in the undertaking, carrying out, or administration of urban renewal
projects, including any agency or instrumentality of the United States of America,
the provisions of the agreements referred to in this section shall inure to the benefit
of and may be enforced by such public body or governmental agency.
(3) As used in this subsection, the term “municipality” shall also include an urban renewal
agency or a housing authority vested with all of the urban renewal project powers
pursuant to the provisions of section 3219 of this title.
(b) Any sale, conveyance, lease, or agreement provided for in this section may be made
by a public body without appraisal, public notice, advertisement, or public bidding.
(c) For the purpose of aiding in the planning, undertaking, or carrying out of an urban
renewal project of an urban renewal agency or a housing authority hereunder, a municipality
may, in addition to its other powers and upon such terms, with or without consideration,
as it may determine, do and perform any or all of the actions or things which, by
the provisions of subsection (a) of this section, a public body is authorized to do
or perform, including the furnishing of financial and other assistance.
(d)(1) For the purposes of this section, or for the purpose of aiding in the planning, undertaking,
or carrying out of an urban renewal project of a municipality, that municipality may,
in addition to any authority to issue bonds pursuant to section 3214 of this title, issue and sell its general obligation bonds.
(2) Any bonds issued by a municipality pursuant to this section shall be issued in the
manner and within the limitations prescribed by the laws of this state for the issuance
and authorization of bonds by that municipality for public purposes generally. However,
bonds so issued:
(A) shall not be considered as indebtedness of the municipality limited by the provisions
of section 1762 of this title or any other general or special law; and
(B) may be authorized by a majority of all the voters present and voting on the question
at a meeting of such municipality held for the purpose pursuant to subchapter 1 of
chapter 53 of this title or pursuant to the provisions of any special law that governs
the authorization of indebtedness by the municipality.
(3)(A) So long as any such bonds of the municipality are outstanding the local governing
body may deduct, in any one or more years from any net increase in the aggregate taxable
valuation of land and improvements in all areas covered by urban renewal plans the
amount necessary to produce tax revenues equal to the current debt service on such
bonds, assuming the previous year’s total tax rate and full collection.
(B) Only the balance, if any, of such net increase shall be taken into account in computing
the sums that may be appropriated for other purposes under applicable tax rate limits.
(C) All the taxable property in all areas covered by urban renewal plans, including the
whole of such net increase, shall be subject to the same total tax rate as other taxable
property, except as may be otherwise provided by law.
(D) The net increase shall be computed each year by subtracting, from the current aggregate
valuation of the land and improvements in all the areas covered by urban renewal plans,
the sum of the aggregate valuations of land and improvements in each such area on
the date the urban plan for such area was approved under subsection 3207(f) of this title. An area shall be deemed to be covered by an urban renewal plan until the date shown
in the plan as its expiration date or until the date all the indebtedness incurred
by the municipality to finance the applicable project has been paid, whichever date
is later.
(4) All the provisions of this subsection shall apply to all municipalities, notwithstanding
any provision of general or special law to the contrary that specifies a different
debt limit, that requires a greater vote to authorize bonds, that prescribes a different
computation of appropriations under tax rate limits, or that is otherwise inconsistent
with this subsection. (Amended 1963, No. 2, § 1, eff. Feb. 14, 1963; 2017, No. 74, § 108.)
§ 3218. Title of purchaser
Any instrument executed by a municipality and purporting to convey any right, title,
or interest in any property under this chapter shall be conclusively presumed to have
been executed in compliance with the provisions of this chapter insofar as title or
other interest of any bona fide purchasers, lessees, or transferees of such property
is concerned.
§ 3219. Exercise of powers in carrying out urban renewal project
(a) A municipality may itself exercise its urban renewal project powers, as herein defined,
or may, if the local governing body by resolution determines such action to be in
the public interest, elect to have such powers exercised by the urban renewal agency
created by section 3220 of this title or by the housing authority, if one exists or is subsequently established in the
community. In the event the local governing body makes such determination, the urban
renewal agency or the housing authority, as the case may be, shall be vested with
all of the urban renewal project powers in the same manner as though all such powers
were conferred on such agency or authority instead of the municipality. If the local
governing body does not elect to make such determination, the municipality in its
discretion may exercise its urban renewal project powers through a board or commissioner
or through such officers of the municipality as the local governing body may by resolution
determine.
(b) As used in this section, the term “urban renewal project powers” shall include the
rights, powers, functions, and duties of a municipality under this chapter, except
the following: the power to determine an area to be a slum or blighted area or combination
thereof and to designate such area as appropriate for an urban renewal project and
to hold any public hearing required with respect thereto; the power to approve urban
renewal plans and modifications thereof; the power to approve general neighborhood
renewal plans and community-wide plans or programs for urban renewal; the power to
acquire, demolish, remove, or dispose of property as provided in subdivision 3209(4)(A);
the power to establish as general plan for the locality as a whole; the power to formulate
a workable program under section 3205 of this title; the power to make the determinations and findings provided for in sections 3204, 3206, and 3207(d) of this title; the power to issue general obligation bonds under subsection 3217(d); the power
to assume the responsibility to bear loss as provided in subdivision 3209(4); and
the power to appropriate funds, to levy taxes and assessments, and to exercise other
powers provided for in subdivision 3209(9) of this title. (Amended 1966, No. 69 (Sp. Sess.), § 10, eff. March 14, 1966.)
§ 3220. Urban renewal agency
(a) There is hereby created in each municipality a public body corporate and politic to
be known as the “urban renewal agency” of the municipality; provided, that such agency
shall not transact any business or exercise its powers hereunder until or unless the
local governing body has made the finding prescribed in section 3206 of this title and has elected to have the urban renewal project powers exercised by an urban renewal
agency as provided in section 3219 of this title.
(b) If the urban renewal agency is authorized to transact business and exercise powers
hereunder, the mayor, by and with the advice and consent of the local governing body,
shall appoint a board of commissioners of the urban renewal agency which shall consist
of five commissioners. The term of office of each such commissioner shall be one
year.
(c)(1) A commissioner shall receive no compensation for his or her services but shall be
entitled to the necessary expenses, including traveling expenses, incurred in the
discharge of his or her duties. Each commissioner shall hold office until his or her
successor has been appointed and has qualified. A certificate of the appointment
or reappointment of any commissioner shall be filed with the clerk of the municipality
and such certificate shall be conclusive evidence of the due and proper appointment
of such commissioner.
(2) The powers of an urban renewal agency shall be exercised by the commissioners thereof.
A majority of the commissioners shall constitute a quorum for the purpose of conducting
business and exercising the powers of the agency and for all other purposes. Action
may be taken by the agency upon a vote of a majority of the commissioners present,
unless in any case the bylaws shall require a larger number. Any persons may be appointed
as commissioners if they reside within the area of operation of the agency, which
shall be coterminous with the area of operation of the municipality, and are otherwise
eligible for such appointments under this chapter.
(3) The mayor shall designate a chair and vice chair from among the commissioners. An
agency may employ an executive director, technical experts, and such other agents
and employees, permanent and temporary, as it may require, and determine their qualifications,
duties, and compensation. For such legal service as it may require, an agency may
employ or retain its own counsel and legal staff. An agency authorized to transact
business and exercise powers under this chapter shall file, with the local governing
body, on or before March 31 of each year a report of its activities for the preceding
calendar year, which report shall include a complete financial statement setting forth
its assets, liabilities, income, and operating expense as of the end of such calendar
year. At the time of filing the report, the agency shall publish in a newspaper of
general circulation in the community a notice to the effect that such report has been
filed with the municipality and that the report is available for inspection during
business hours in the office of the clerk and in the office of the agency.
(d) For inefficiency or neglect of duty or misconduct in office, a commissioner may be
removed only after a hearing and after he or she shall have been given a copy of the
charges at least 10 days prior to such hearing and have had an opportunity to be heard
in person or by counsel.
§ 3221. Interested public officials, commissioners, or employees
No public official or employee of a municipality, or board or commission thereof,
and no commissioner or employee of a housing authority or urban renewal agency which
has been vested by a municipality with urban renewal project powers under section 3219 of this title shall voluntarily acquire any personal interest, direct or indirect, in any urban
renewal project, or in any property included or planned to be included in any urban
renewal project of such municipality or in any contract or proposed contract in connection
with such urban renewal project. Where such acquisition is not voluntary, the interest
acquired shall be immediately disclosed in writing to the local governing body and
such disclosure shall be entered upon the minutes of the governing body. If any such
official, commissioner, or employee presently owns or controls, or owned or controlled
within the preceding two years, any interest, direct or indirect, in any property
which he or she knows is included or planned to be included in an urban renewal project,
he or she shall immediately disclose this fact in writing to the local governing body,
and such disclosure shall be entered upon the minutes of the governing body, and any
such official, commissioner, or employee shall not participate in any action by the
municipality, or board or commission thereof, housing authority, or urban renewal
agency affecting such property. Any disclosure required to be made by this section
to the local governing body shall concurrently be made to a housing authority or urban
renewal agency which has been vested with urban renewal project powers by the municipality
pursuant to the provisions of section 3219 of this title. No commissioner or other officer of any housing authority, urban renewal agency,
board, or commission exercising powers pursuant to this chapter shall hold any other
public office under the municipality other than his or her commissionership or office
with respect to such housing authority, urban renewal agency, board, or commission.
Any violation of the provisions of this section shall constitute misconduct in office.