Section 2 Establishment and Initiation of Activities

• Library: Urban Development Subdivisions, and Annexations (2011 Ed.)

The 1945 Missouri Constitution made possible Missouri legislative enactments permitting broad urban development assistance. See Mo. Const. art. VI, § 21; art. X, § 7. Passage of the LCRA (Land Clearance for Redevelopment Authority) Law, §§ 99.300–99.660, now RSMo 2000 and Supp. 2010, in 1951 authorized the creation by ordinance of authorities empowered to carry out extensive redevelopment activities within any county or incorporated city, town, or village. In municipalities having a population under 75,000, however, prior voter approval is required. Section 99.320(6), RSMo 2000. The approving county or municipality may carry out the functions of a redevelopment authority or may designate a housing authority to do so. Section 99.330(1), RSMo 2000.

Notably, an LCRA is created in each county and municipality by § 99.330, but the LCRA may not transact business or exercise its powers until the local legislative body enacts an ordinance or resolution finding that at least one blighted area exists and that its redevelopment is necessary in the interests of the public health, safety, morals, or welfare. 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 (i.e., by ordinance only). In these cases, local law likely prevails.

For example, in Schmoll v. Housing Authority of St. Louis County, 321 S.W.2d 494 (Mo. 1959), the Supreme Court invalidated a cooperation agreement, which had been approved by resolution, between the St. Louis County Housing Authority and St. Louis County. The Court noted that, although § 70.230, now RSMo 2000, relating to cooperation agreements between political subdivisions, permitted approval by resolution, the St. Louis County Charter required approval by ordinance. Accordingly, the Court held the cooperation agreement invalid.

Two or more communities may authorize a regional LCRA, with subsequent increases in the number of participating communities. The format for the manner of appointment and the number of commissioners representing each community is established by statute. See §§ 99.360 and 99.370, RSMo 2000. The LCRA Law similarly authorizes cooperation among two or more LCRAs in the joint planning, undertaking, and financing of projects. Section 99.610, RSMo 2000; see also § 70.220, RSMo Supp. 2010 (authorizing cooperation to plan for and provide joint services by written agreement between governmental entities).

Creation of the LCRA is unequivocal in the law, and § 99.410, RSMo 2000, provides that the legislative or voter approval of operation in a particular community conclusively establishes and authorizes the LCRA to transact business. Once in operation, the LCRA cannot be dis-established except by an act of the Missouri legislature. For example, in Anderson v. Smith, 377 S.W.2d 554 (Mo. App. W.D. 1964), the court held that an initiative petition to dis-establish an LCRA was invalid.

The LCRA Law's declaration of purpose is set out in broad terms. Section 99.310, RSMo 2000. 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 this chapter.

Much of the litigation involving the validity and constitutionality of the powers granted to LCRAs revolves around these definitions. Missouri decisions have addressed, for example, how "blighted" an area must be to qualify for redevelopment and how far an LCRA may go in acquiring property that is not blighted but that is situated in a blighted area for which a redevelopment plan has been approved.

In State on inf. of Dalton v. Land Clearance for Redevelopment Authority of Kansas City, Mo., 270 S.W.2d 44 (Mo...