SB 1694: Authorizes incentives for downtown redevelopment - Missouri

7297S.05P - Perfected → 4/29/2026 - SS for SCS S offered (Gregory-15)--(7297S.05F) 5/5/2026 - Adopted · 3 edits

MINOR

The bill was updated from a 'perfected' version to a final Senate Committee Substitute version, incorporating specific amendments to the definitions of 'Baseline year' and 'Central business district'. These changes clarify how economic activity is measured after natural disasters and refine the criteria for what constitutes a downtown area eligible for redevelopment incentives.

Scope change

The scope of eligibility for redevelopment incentives was modified by adding a specific provision for natural disasters in the baseline year calculation and removing income thresholds for defining a central business district.

DEFINITION

The definition of 'Baseline year' was expanded to include a provision that adjusts the baseline if economic activity taxes or state sales tax revenues decrease due to a natural disaster, ensuring the baseline reflects pre-disaster conditions rather than post-disaster lows.

The definition of 'Central business district' was altered by removing the requirement that the area must have a median household income of $62,000 or less, thereby potentially expanding the range of downtown areas eligible for the program.

A bracketed condition requiring that at least fifty percent of existing buildings in the central business district be over thirty-five years old was removed, simplifying the criteria for designating a central business district.

7297S.03C - Senate Committee Substitute → 7297S.05P - Perfected · 3 edits

MINOR

The bill was perfected and finalized, incorporating several substantive changes to the definitions of key terms. The most significant update is the expansion of the 'central business district' definition to explicitly include riverfront areas with industrial history, broadening the scope of eligible downtown redevelopment zones. Additionally, the definition of a 'conservation area' was updated to include 'depreciation of physical maintenance' and 'lack of community planning' as factors that can make an area eligible for redevelopment incentives.

Scope change

The bill's scope was expanded by including riverfront areas with industrial historical land use within the definition of a central business district, thereby allowing these specific areas to qualify for downtown redevelopment incentives.

DEFINITION

The definition of 'central business district' was modified to explicitly include a municipality's riverfront if it is near the downtown and has an industrial historical land use.

The definition of 'conservation area' was modified to add 'depreciation of physical maintenance' and 'lack of community planning' as factors that can render an area detrimental and eligible for redevelopment.

The definition of 'developer' was modified to clarify eligibility for entities that entered into development agreements prior to January 1, 2013, and to include affiliates or newly selected developers for specific projects.

7297H.06C - House Committee Substitute → 7297S.03C - Senate Committee Substitute · 4 edits

MODERATE

The bill was amended to narrow its focus from general economic development to specifically targeting downtown redevelopment. The Senate version reduces the number of new sections created and removes references to additional chapters related to broader economic incentives, streamlining the legislation to address only downtown revitalization.

Scope change

The bill's scope was narrowed from general economic development incentives to specifically focus on downtown redevelopment.

SCOPE

The legislative purpose was changed from repealing sections to enact twenty-eight new sections for general economic development to repealing sections to enact sixteen new sections specifically for downtown redevelopment incentives.

References to additional chapters (620.2012, 620.6000, etc.) and broader economic development provisions were removed, limiting the bill's application to downtown areas.

DEFINITION

The definition of 'Conservation area' was expanded to include specific factors like dilapidation, obsolescence, and excessive vacancies that could cause an area to become blighted.

The definition of 'Central business district' was updated to clarify that the riverfront may have an industrial historical land use.

7297S.01I - Introduced → 7297H.06C - House Committee Substitute · 4 edits

MODERATE

The bill was revised from a standalone extension of the Missouri Downtown Economic Stimulus Act (MODESA) into a comprehensive overhaul of the entire economic development chapter. The new version repeals previous sections and replaces them with a broader framework that covers both downtown redevelopment and general economic development across the state, expanding the program's scope beyond just urban cores.

Scope change

The bill's scope expanded significantly from a specific extension for existing downtown projects to a complete rewrite of the state's financial incentives for economic development, including new sections for general economic zones and updated definitions for areas eligible for assistance.

SCOPE

The legislation changed from a limited extension of the MODESA program to a full repeal and reenactment of the entire economic development chapter, creating a unified framework for both downtown and general economic development incentives.

DEFINITION

Key definitions were updated and expanded, including new criteria for 'central business districts' and 'blighted areas,' and the introduction of new terms like 'Authority' and 'Baseline year' to support the broader program.

FISCAL

The bill now explicitly authorizes the creation of new sections covering financial incentives for general economic development, moving beyond the previous focus solely on downtown revitalization.

REQUIREMENT

The baseline year for measuring economic growth was redefined to include specific provisions for municipalities affected by natural disasters, allowing for flexible start dates for tax increment calculations in disaster zones.

Authorizes incentives for downtown redevelopment

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