Section 16.2 Establishment and Initiation of Activities

• Library: Local Government Deskbook (2017 Ed.)

1. (§16.2) Establishment and Initiation of Activities

The LCRA (Land Clearance for Redevelopment Authority) Law, §§ 99.300–99.660, RSMo 2016, authorizes creation by ordinance of authorities empowered to carry out extensive redevelopment activities within any county or incorporated city, town, or village. In municipalities having populations under 75,000, prior voter approval is required. Section 99.320(6), RSMo 2016. An approving local government may carry out the functions of a redevelopment authority or may designate a housing authority to do so. Section 99.330(1), RSMo 2016.

Notably, an LCRA is created in each county and municipality by § 99.330, but the LCRA may not transact business or exercise powers until the local legislative body enacts an ordinance or resolution finding that at least one blighted area exists and that redevelopment is necessary in the interests of the public health, safety, morals, or welfare, § 99.330(2). Although § 99.330(1) permits approval by resolution or by ordinance, validity of the authorization may be open to challenge if it is adopted in a form other than that mandated by local law (e.g., by ordinance only). See, e.g., Schmoll v. Hous. Auth. of St. Louis Cnty., 321 S.W.2d 494 (Mo. 1959) (invalidating a cooperation agreement, approved by resolution as authorized by § 70.230, now RSMo 2016, because county charter required approval by ordinance).

Two or more communities may authorize a regional LCRA, with subsequent increases in the number of participating communities. The LCRA Law establishes the manner of appointment and the number of commissioners representing each community. See §§ 99.360–99.370, RSMo 2016. The LCRA Law similarly authorizes cooperation among two or more LCRAs in the joint planning, undertaking, and financing of projects. Section 99.610, RSMo 2016; see also § 70.220, RSMo 2016 (authorizing cooperation to plan for and provide joint services by written agreement between governmental entities).

The LCRA Law provides that legislative or voter approval of operation in a particular community conclusively establishes and authorizes the LCRA to transact business. Section 99.410, RSMo 2016. Once in operation, an LCRA cannot be disestablished except by an act of the General Assembly. See, e.g., Anderson v. Smith, 377 S.W.2d 554 (Mo. App. W.D. 1964) (invalidating an initiative petition to disestablish an LCRA).

The LCRA Law’s declaration of purpose is set out in broad terms. Section 99.310, RSMo 2016. Further, the definitions of terms such as “[b]lighted area,” “[i]nsanitary area,” and “[l]and clearance project” (which includes “urban renewal project”) set out in § 99.320(3), (9), and (10) evidence a legislative intent to provide a framework for wide latitude and discretion both in determination of blighted areas and in LCRA activities within those areas. This is also true in other redevelopment statutes covered in...