SUMMARY--Revises provisions for community redevelopment. (BDR 22-1270)
FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: Yes.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to the redevelopment of property; revising provisions for community redevelopment; repealing certain provisions for urban renewal; restricting the exercise of the power of eminent domain; extending the protection of tenants in relocation; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
Section 1 Chapter 279 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 6, inclusive, of this act.
Sec. 2 1. The governing body of each municipality in which an urban renewal agency was transacting business or exercising powers on September 30, 1997, shall provide by ordinance for the transfer of the agency's facilities, records and personnel to the municipality.
2. The repeal of NRS 279.370 does not affect any legal action, contract or obligation of the agency. The municipality is substituted for the agency and for the purpose of the action, contract or obligation shall be deemed a continuation of the agency.
Sec. 3 "Slum" means an area in which there is a predominance of buildings or improvements, whether or not residential, which, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for ventilation, air, sanitation or open spaces, high density of population and overcrowding, or the existence of conditions which endanger life or property by fire or other causes, or any combination of those factors, is conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime, and is detrimental to the public health, safety and welfare.
Sec. 4 1. An agency shall not exercise the power of eminent domain for redevelopment unless the general public, as the primary beneficiary, will receive and enjoy specific and substantial benefits from the use of the property to be taken.
2. Upon the petition of any person, the district court shall review the determination of the agency de novo.
3. If the exercise of the power of eminent domain benefits a specific and identifiable private interest, a claim that the public interest is the predominant reason for the exercise of the power of eminent domain must receive strict scrutiny from the agency and, if a court reviews the agency's determination, from the court.
Sec. 5 1. An agency may create one or more subdivisions within the redevelopment area. Each subdivision must be conterminous with a census tract. The agency shall create a council for the preservation of the neighborhood in each subdivision so created.
2. A council may review an action proposed by the agency to be taken within the subdivision. A council may propose its plan for redevelopment of the subdivision to the agency.
3. The agency may grant money to a council to carry out the plan of the council.
Sec. 6 An agency is a public body for the purposes of chapter 241 of NRS, and notice of its meetings must be published in a newspaper of general circulation in the county in which the agency is located, in addition to the posting and mailing of notices required by NRS 241.020.
Sec. 7 NRS 279.130 is hereby amended to read as follows:
279.130["Municipality"] As used in section 2 of this act, "municipality" means any county, incorporated city or town in the state.
Sec. 8 NRS 279.382 is hereby amended to read as follows:
279.382The provisions contained in NRS 279.382 to 279.685, inclusive, and sections 3 to 6, inclusive, of this act may be cited as the Community Redevelopment and Preservation Law.
Sec. 9 NRS 279.384 is hereby amended to read as follows:
279.384As used in NRS 279.382 to 279.685, inclusive, and sections 3 to 6, inclusive, of this act, unless the context otherwise requires, the words and terms defined in NRS 279.386 to 279.414, inclusive, and section 3 of this act have the meanings ascribed to them in those sections.
Sec. 10 NRS 279.386 is hereby amended to read as follows:
279.386"Agency" means a redevelopment agency created under NRS 279.382 to 279.685, inclusive . [, or a legislative body which has elected to exercise the powers granted to an agency under NRS 279.382 to 279.685, inclusive.]
Sec. 11 NRS 279.388 is hereby amended to read as follows:
279.388"Blighted area" means an area which is characterized by one or more of the following factors:
1. The existence of buildings and structures, used or intended to be used for residential, commercial, industrial or other purposes, or any combination thereof, which are unfit or unsafe for those purposes and are conducive to ill health, transmission of disease, infant mortality, juvenile delinquency or crime because of one or more of the following factors:
(a) Presence of a substantial number of slums.
(b) Defective design and character of physical construction.
[(b)] (c) Faulty arrangement of the interior and spacing of buildings.
[(c)] (d) Overcrowding.
[(d)] (e) Inadequate provision for ventilation, light, sanitation, open spaces and recreational facilities.
[(e)] (f) Age, obsolescence, deterioration, dilapidation, mixed character or shifting of uses.
2. An economic dislocation, deterioration or disuse, resulting from faulty planning.
3. The subdividing and sale of lots of irregular form and shape and inadequate size for proper usefulness and development.
4. The laying out of lots in disregard of the contours and other physical characteristics of the ground and surrounding conditions [.] , or faulty in size, accessibility or usefulness.
5. [The existence] A predominance of inadequate streets, open spaces and utilities.
6. The existence of lots or other areas which may be submerged.
7. Prevalence of depreciated values, impaired investments and social and economic maladjustment to such an extent that the capacity to pay taxes is reduced and tax receipts are inadequate for the cost of public services rendered.
8. A growing or total lack of proper utilization of some parts of the area, resulting in a stagnant and unproductive condition of land which is potentially useful and valuable for contributing to the public health, safety and welfare.
9. A loss of population and a reduction of proper use of some parts of the area, resulting in its further deterioration and added costs to the taxpayer for the creation of new public facilities and services elsewhere.
10. Delinquency of taxes or special assessments exceeding the fair market value of the land.
11. Defective or unusual conditions of title.
12. The existence of conditions which endanger life or property by fire or other causes.
13. Any of the factors set forth in subsections 1 to 12, inclusive, or any combination of those factors which impairs or arrests the sound growth of a community, retards the provision of housing accommodations or constitutes an economic or social liability and is a menace to the public health, safety or welfare in its present condition and use.
Sec. 12 NRS 279.412 is hereby amended to read as follows:
279.412"Redevelopment project" means any undertaking of an agency pursuant to NRS 279.382 to 279.685, inclusive. The term includes the undertakings and activities of a community in a redevelopment area for the elimination, and for the prevention of the development or spread of, slums and blight, the clearance of slums, redevelopment, rehabilitation or conservation, or any combination or part thereof, including, but not limited to:
1. The acquisition of a slum or blighted area or a portion thereof.
2. The demolition and removal of buildings and improvements.
3. The installation, construction or reconstruction of streets, utilities, parks, playgrounds and other improvements necessary for carrying out in the redevelopment area the purposes of the Community Redevelopment and Preservation Law, in accordance with the redevelopment plan.
4. The disposition of any property acquired in the redevelopment area, including sale, initial leasing or retention by the municipality itself, at its fair value for uses in accordance with the redevelopment plan.
5. The carrying out plans for a program of voluntary or compulsory repair and rehabilitation of buildings or other improvements in accordance with the redevelopment plan.
6. The acquisition of any other real property in the redevelopment area where necessary to:
(a) Eliminate unhealthy, unsanitary or unsafe conditions;
(c) Reduce population density;
(c) Eliminate obsolete or other uses detrimental to the public welfare;
(d) Remove or prevent the spread of blight or deterioration; or
(e) Provide land for public facilities.
Sec. 13 NRS 279.418 is hereby amended to read as follows:
279.418It is further found and declared that:
1. [The existence of blighted areas constitutes a serious and growing menace which is condemned as injurious and inimical to the public health, safety and welfare of the people of the communities in which they exist and of the people of the state.
2. Such blighted areas present difficulties and handicaps which are beyond remedy and control solely by regulatory processes in the exercise of the police power.
3. They contribute substantially and increasingly to the problems of, and necessitate excessive and disproportionate expenditures for, crime prevention, correction, prosecution and punishment, the treatment of juvenile delinquency, the preservation of the public health and safety, and the maintaining of adequate police, fire and accident protection and other public services and facilities.
4. This menace is becoming increasingly direct and substantial in its significance and effect.
5. The benefits which will result from the remedying of such conditions and the redevelopment of blighted areas will accrue to all the inhabitants and property owners of the communities in which they exist.] There exist, in communities of the state, slums and blighted areas which constitute a serious and growing menace and which are injurious to the public health, safety and welfare of the residents of the state.
2. The existence of those areas contributes substantially and increasingly to the spread of disease and crime, constitutes an economic or social liability or both, imposing onerous municipal burdens which decrease the value of taxable property and reduce tax revenue, substantially impairs the sound growth of municipalities, discourages the provision of housing accommodations, aggravates traffic problems and substantially impairs the elimination of traffic hazards and the improvement of traffic facilities.
3. The prevention and elimination of slums and blight is a matter of state policy and state concern in order that the state and its communities not continue to be endangered by areas which are focal centers of disease, promote juvenile delinquency and consume an excessive proportion of their revenue because of the additional services required for police, fire, accident, hospitalization and other forms of public protection, services and facilities.
4. Certain slums or blighted areas, or portions thereof, may require acquisition, clearance and disposition subject to restrictions of use, as provided in the Community Redevelopment and Preservation Law, since the prevailing condition of decay may make impracticable the reclamation of the area by conservation or rehabilitation and that other areas or portions thereof may, through the means provided in the Community Redevelopment and Preservation Law, be susceptible to conservation or rehabilitation in such a manner that the conditions and evils set forth in this section may be eliminated, remedied or prevented.
5. Salvable slums and blighted areas may be conserved and rehabilitated by appropriate public action and the cooperation and voluntary action of the owners and tenants of property in those areas.
Sec. 14 NRS 279.422 is hereby amended to read as follows:
279.422It is further found and declared that [blighted areas may include housing areas constructed as temporary government-owned wartime housing projects, and that such areas may be characterized by one or more of the conditions enumerated in NRS 279.388.] :
1. Redevelopment will stimulate residential construction which is closely correlated with general economic activity; and
2. Undertakings authorized by the Community Redevelopment and Preservation Law will:
(a) Assist in the production of better housing and a more desirable development of stable neighborhoods and communities at lower costs; and
(b) Provide a greater volume of residential construction, which will assist substantially in maintaining full employment.
Sec. 15 NRS 279.444 is hereby amended to read as follows:
279.4441. [As an alternative to the appointment of five members of the agency, the] The members of the legislative body , [may,] at the time of the adoption of a resolution pursuant to NRS 279.428, [or at any time thereafter, declare itself to be] become members of the agency . [, in which case, all the rights, powers, duties, privileges and immunities vested by NRS 279.382 to 279.685, inclusive, in an agency are vested in the legislative body of the community. If the legislative body of a city declares itself to be the agency pursuant to this subsection, it may include the] The mayor of [the city as part] a city is a member of the agency [regardless of] whether or not he is a member of the legislative body. In addition, the mayor of a city or the chairman of a board of county commissioners, with the approval of the legislative body, shall appoint five resident electors of the community as members of the agency.
2. A city may enact its own procedural ordinance and exercise the powers granted by NRS 279.382 to 279.685, inclusive.
[3. An agency is authorized to delegate to a community any of the powers or functions of the agency with respect to the planning or undertaking of a redevelopment project in the area in which that community is authorized to act, and that community may carry out or perform those powers or functions for the agency.]
Sec. 16 NRS 279.450 is hereby amended to read as follows:
279.450[Members shall] Appointed members are entitled to receive their actual and necessary expenses, including traveling expenses incurred in the discharge of their duties. They may receive such other compensation as the legislative body prescribes.
Sec. 17 NRS 279.452 is hereby amended to read as follows:
279.452For inefficiency, neglect of duty or misconduct in office, [a] an appointed member may be removed by the appointing officer, but only after he has been given a copy of the charges at least 10 days [prior to] before a public hearing on [such] the charges and has had an opportunity to be heard in person or by counsel. If a member is removed, a record of the proceedings and the charges and findings [shall] must be filed in the office of the clerk of the community.
Sec. 18 NRS 279.476 is hereby amended to read as follows:
279.4761. An agency [may] shall operate a rehousing bureau to assist site occupants in obtaining adequate [temporary or permanent housing. It] housing and places of business and may incur any necessary expenses for [this] that purpose.
2. The housing or place of business selected by the bureau must be:
(a) Decent, safe and sanitary;
(b) Comparable in price and size to the housing or place of business which was acquired for redevelopment;
(c) Accessible to local services; and
(d) Approved by the occupant.
3. The bureau shall not select any housing or place of business which does not meet the requirements set forth in subsection 2 regardless of the condition of the housing or place of business of the occupant at the time it was acquired for redevelopment.
4. The bureau shall pay the costs related to the replacement of the housing and places of business and the relocation of the occupants.
Sec. 19 NRS 279.478 is hereby amended to read as follows:
279.4781. An agency shall provide assistance for relocation and shall make all of the payments required [in] by chapter 342 of NRS and the regulations adopted by the director of the department of transportation pursuant [to NRS 342.005] thereto for programs or projects for which federal financial assistance is received to pay all or any part of the cost of that program or project.
2. This section does not limit any other authority which an agency may have to make other payments for assistance for relocation or to make any payment for that assistance which exceeds the amount authorized in regulations adopted by the director of the department of transportation pursuant to [NRS 342.105.] chapter 342 of NRS.
Sec. 20 NRS 279.566 is hereby amended to read as follows:
279.5661. Every redevelopment plan must provide for the participation in the redevelopment of property in the redevelopment area by the owners of all or part of that property . [if the owners agree to participate in conformity with the redevelopment plan adopted by the legislative body for the area.]
2. With respect to each redevelopment area, each agency shall, before the adoption of the redevelopment plan, adopt and make available for public inspection rules to implement the operation of this section in connection with that plan.
3. Every redevelopment plan must contain [alternative] provisions for redevelopment of the property if the owners fail to participate in the redevelopment . [as agreed.]
Sec. 21 Chapter 37 of NRS is hereby amended by adding thereto a new section to read as follows:
1. Subject to the additional restrictions imposed by NRS 37.038, a person, government, governmental agency or political subdivision of a government, except the State of Nevada, which proposes to exercise the power of eminent domain must obtain the consent of the governing body of the:
(a) City, if the property to be taken is located within a city, or
(b) County, if the property to be taken is located within an unincorporated area.
2. The governing body shall entertain the application in a regular public meeting and shall hear any protest.
Sec. 22 NRS 342.045 is hereby amended to read as follows:
342.045Before undertaking a project that will result in the displacement of a natural person or a business, each governmental body , or person acting on its behalf or under contract or in cooperation with it, shall adopt policies pursuant to NRS 342.015 to 342.075, inclusive, to provide relocation assistance and make relocation payments to each person , whether an owner or a tenant, who is displaced from his dwelling or business establishment as a result of the acquisition of property in a manner substantially similar to and in amounts equal to or greater than those which are provided for in the federal Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, 42 U.S.C. §§ 4601-4655, and the regulations adopted pursuant thereto.
Sec. 23 NRS 342.055 is hereby amended to read as follows:
342.0551. In addition to the relocation benefits provided pursuant to NRS 342.045, each person who is displaced from his business establishment as a result of the acquisition of property by an agency created pursuant to chapter 279 of NRS or by any person or entity acting on behalf of, in cooperation with or under contract with such an agency, and whose lease of the premises on which the establishment is situated is terminated as a consequence of the acquisition, must be paid:
(a) The actual, reasonable and necessary costs of alterations and other physical changes that are required to be made to a new location to render it suitable for the operation of the business;
(b) The actual, reasonable and necessary costs of modifications made to machinery, equipment and other personal property moved to the new location which were necessary for the operation of the business, except that [such] those costs must not exceed the acquisition cost of the machinery, equipment and other personal property less accumulated depreciation;
(c) The prorated fees for any licenses, permits or certifications that must be obtained for the business to operate in the new location;
(d) The actual, reasonable and necessary fees for professional services incurred in connection with the acquisition of a replacement site, including the services of architects, appraisers, attorneys, engineers, realtors and other consultants; and
(e) A sum equal to:
(1) An amount which, when added to the amount that the tenant formerly paid in rent, will enable him to rent or lease a comparable business location on the current market for a term equal to the period that would have remained on his lease if it had not been terminated as a result of the acquisition of the property or 3 years, whichever is greater; or
(2) The fair market value of the business as determined in accordance with subsection 6 of NRS 37.009 if the business owner is unable to relocate his business establishment to a comparable new location because of the operation of a governmental ordinance, regulation or restriction or because a comparable business location is not available.
2. [The provisions of this section do not apply to month-to-month tenancies.
3.] The provisions of this section do not apply to a business which executes an initial lease within 1 year before the approval of a development agreement or other similar action of a governmental body identifying the property that will be acquired, unless the business is renewing a lease on a site that it has occupied for more than 1 year before the identification of the property that will be acquired.
[4.] 3. A governmental body may adopt ordinances or regulations or take any other appropriate action which allows a business to be relocated to a comparable business location.
[5.] 4. As used in this section, "comparable business location" means a location that is decent, safe and sanitary, adequate in size for the needs of the displaced business, functionally equivalent for the purposes of the displaced business and located in an area not subject to unreasonably adverse environmental conditions.
[6. Nothing contained in this section requires]
5. This section does not require a governmental body to relocate a business to a location in a redevelopment area or an area similar to a redevelopment area, or to provide the benefits that a location in a redevelopment area would provide.
Sec. 24 NRS 279.010, 279.020, 279.030, 279.040, 279.050, 279.060, 279.070, 279.080, 279.090, 279.100, 279.110, 279.120, 279.140, 279.150, 279.160, 279.170, 279.180, 279.190, 279.200, 279.210, 279.220, 279.230, 279.240, 279.250, 279.260, 279.270, 279.280, 279.285, 279.290, 279.300, 279.310, 279.311, 279.312, 279.313, 279.314, 279.315, 279.316, 279.317, 279.318, 279.320, 279.330, 279.340, 279.350, 279.360, 279.370, 279.380, 279.440, 279.442, 279.448 and 279.458 are hereby repealed.
Sec. 25 The provisions of subsection 1 of NRS 354.599 do not apply to any additional expenses of a local government that are related to the provisions of this act.
LEADLINES OF REPEALED SECTIONS
279.010Short title.
279.020Definitions.
279.030"Agency" and "urban renewal agency" defined.
279.040"Area of operation" defined.
279.050"Blighted area" defined.
279.060"Board" and "commission" defined.
279.070"Bonds" defined.
279.080"Clerk" defined.
279.090"Federal Government" defined.
279.100"Housing authority" defined.
279.110"Local governing body" defined.
279.120"Mayor" defined.
279.140"Obligee" defined.
279.150"Person" defined.
279.160"Public body" defined.
279.170"Public officer" defined.
279.180"Real property" defined.
279.190"Slum area" defined.
279.200"Urban renewal area" defined.
279.210"Urban renewal plan" defined.
279.220"Urban renewal project" defined.
279.230Findings and declarations.
279.240Encouragement of private enterprise.
279.250Workable program.
279.260Finding of necessity by local governing body.
279.270Preparation and tentative approval of urban renewal projects and plans; submission to voters; determinations of governing body required for acquisition of open land; modification of plan; exceptions.
279.280Powers of municipality.
279.285Applicability of provisions governing payment of prevailing wage for public works projects.
279.290Eminent domain.
279.300Disposal or retention of property in urban renewal area: Procedures; conditions; temporary operation and maintenance of property.
279.310Issuance of bonds.
279.311Special proceeding to determine validity of renewal plan and bonds.
279.312Petition for special proceeding in rem: Form; contents.
279.313Judgment; jurisdiction; publication of court's order.
279.314Delivery of order by mail to person affected.
279.315Appearance of persons interested or affected; answer; motion to dismiss; similar proceedings may be enjoined or consolidated.
279.316Applicability of Nevada Rules of Civil Procedure and Rules of Appellate Procedure; time limited for contest of agency's determinations.
279.317Relief from judgment; new trial; appeal.
279.318Effect of judgment.
279.320Bonds as legal investments.
279.330Property exempt from taxes and from levy and sale by virtue of an execution.
279.340Powers of public body.
279.350Title of purchaser.
279.360Exercise of powers in carrying out urban renewal project.
279.370Urban renewal agency.
279.380Interested public officials, commissioners or employees.
279.440Appointment of members.
279.442Restrictions on appointment of members.
279.448Chairman: Designation; election; term of office.
279.458Agency's power vested in members.