[HISTORY: Adopted by the Mayor and Council
of the City of Hagerstown 2-19-1991 by Ord. No. 1991-1. Amendments noted where
applicable.]
In this chapter, the following words have the
meanings indicated:
Any area in which a majority of buildings have declined in
productivity by reason of obsolescence, depreciation or other causes
to an extent that they no longer justify fundamental repairs and adequate
maintenance; or in which dwellings predominate that, by reason of
depreciation, overcrowding, faulty arrangement or design, lack of
ventilation, light or sanitary facilities or any combination of these
factors, are detrimental to the public safety, health or morals.
Any bonds (including refunding bonds), notes, interim certificates,
certificates of indebtedness, debentures or other obligations.
The United States of America or any agency or instrumentality,
corporate or otherwise, of the United States of America.
Any individual, firm, partnership, corporation, company,
association, joint-stock association or body politic. "Person" includes
any trustee, receiver, assignee or other person acting in a similar
representative capacity.
Land or other property of every kind. "Property" includes
any right, interest, franchise, easement or privilege in that land
or other property.
A blighted area or any part or combination of one or more
blighted areas that the City designates as appropriate for a redevelopment
project.
A plan, as it exists from time to time, for a redevelopment
project in a redevelopment area.
Undertakings and activities of the City in a redevelopment
area to eliminate or to prevent the development, recurrence or spread
of blight, slums or deterioration.
A.
Express redevelopment authority. This chapter restates
and codifies the powers and authority granted to the City by Chapter
830 of the Acts of the General Assembly of 1961, as reaffirmed and
incorporated by reference in Article IV, § 401, b, 57, of
the City Charter, generally authorizing and empowering the City to
establish and carry out a program for the redevelopment, rehabilitation,
clearance or renewal of blighted areas.
B.
Chapter supplemental of other authority. The powers
and authority restated and codified in this chapter are in addition
and supplemental to and not in substitution of any other express or
implied powers and authority conferred on the City by its Charter
or by the Constitution and laws of this state.
C.
Construction. This chapter shall be construed and
applied liberally to promote its purposes and objectives.
A.
In general. The City may establish and carry out redevelopment
projects for the redevelopment, rehabilitation, conservation, clearance
or renewal of all or any part or combination of one or more blighted
areas.
B.
Authorized undertakings and activities. Redevelopment
projects may involve all or any combination of the following undertakings
and activities:
(1)
Acquisition of all or any part of a redevelopment
area.
(2)
Demolition and removal of buildings or other improvements
in a redevelopment area.
(3)
Installation, construction or reconstruction in a
redevelopment area of streets, utilities, parks, playgrounds or other
improvements necessary for carrying out the purposes or objectives
of this chapter.
(4)
Disposition of any property acquired in a redevelopment
area, including sale, initial leasing or retention of that property
by the City itself, at its fair value for uses in accordance with
a redevelopment plan.
(5)
Carrying out plans for a program of voluntary or compulsory
repair and rehabilitation of buildings or other improvements in accordance
with a redevelopment plan.
(6)
Carrying out plans for the preservation, improvement
or embellishment of historic structures or monuments in a redevelopment
area.
(7)
Acquisition of any property in a redevelopment area
as may be necessary to:
(a)
Eliminate unhealthful, unsanitary or unsafe conditions;
(b)
Lessen the density;
(c)
Eliminate obsolete or other uses detrimental to the
public welfare;
(d)
Otherwise eliminate or prevent the development, recurrence
or spread of blight, slums or deterioration; or
(e)
Provide land for needed public facilities.
C.
Acquisition and disposition of property.
(1)
The City may acquire, in connection with a redevelopment
project, any property within the corporate limits of the City, including
property already devoted to public use, by purchase, lease, gift,
condemnation or any other legal means.
(2)
The City may sell, lease, convey, transfer or otherwise
dispose of any of this property, regardless of whether or not it has
been developed, redeveloped, altered or improved, and irrespective
of the manner or means in or by which it may have been acquired, to
any private, public or quasi-public corporation, partnership, association,
legal entity or other person.
D.
Eminent domain. Property to be acquired by the City
for any of the purposes or objectives of this chapter or in connection
with the exercise of any of the powers granted by this chapter may
not be taken by the City through the exercise of the power of eminent
domain without just compensation, as agreed upon between the parties
or as awarded by a jury, being first paid or tendered to the party
entitled to that compensation.
E.
Declaration of public purpose and governmental function.
(1)
All property needed or taken by the City through the
exercise of the power of eminent domain for any of the purposes or
objectives of this chapter or in connection with the exercise of any
of the powers granted by this chapter is hereby declared to be needed
or taken for public uses and purposes.
(2)
All undertakings, activities and powers authorized
by this chapter are hereby declared to constitute governmental functions
undertaken for public uses and purposes, and the power of taxation
may be exercised, public funds expended and public credit extended
in furtherance of any of them.
A.
In general, the City has the additional powers set
forth in this section. These additional powers are hereby found and
declared to be necessary and proper to carry into full force and effect
the other powers granted by this chapter and to fully accomplish the
purposes and objectives contemplated by this chapter.
B.
Plans and surveys.
(1)
The City may make, or have made, adopt or approve
and modify or amend all surveys and plans necessary to carry out the
purposes or objectives of this chapter.
(2)
These surveys and plans may include but are not to
be limited to:
(a)
Plans for carrying out a program of voluntary or compulsory
repair and rehabilitation of buildings and improvements.
(b)
Plans for the enforcement of codes and regulations
relating to the use of land, the use and occupancy of buildings and
improvements and the compulsory repair, rehabilitation, demolition
or removal of buildings and improvements.
(c)
Appraisals, title searches, surveys, studies and other
plans and work necessary to prepare for the undertaking of redevelopment
projects and related activities.
C.
Relocation of displaced persons. The City may prepare
plans for the relocation of persons (including families, business
concerns and others) displaced from a redevelopment area and may make
relocation payments to or with respect to these persons for moving
expenses and property losses for which reimbursement or compensation
is not otherwise made, including the making of payments financed by
the federal government.
D.
Appropriations and expenditures. The City may appropriate
whatever funds and make whatever expenditures are necessary to carry
out the purposes or objectives of this chapter.
E.
Taxes and assessments. The City may make assessments
and levy taxes for the purposes or objectives of this chapter.
F.
Financial assistance. The City may borrow money and
apply for and accept advances, loans, grants, contributions and any
other form of financial assistance from the federal government, from
state, county or other public bodies or from any other source, public
or private, for any of the purposes or objectives of this chapter,
and may give whatever security is required for this financial assistance.
G.
Investments. The City may invest any redevelopment
funds held in reserves or sinking funds or any redevelopment funds
not required for immediate disbursement in any property or securities
that are legal investments for other municipal funds.
H.
Holding, use and protection of property. The City
may:
(1)
Hold, improve, clear or prepare for redevelopment
any property acquired in connection with a redevelopment project;
(2)
Mortgage, pledge, hypothecate or otherwise encumber
that property; and
(3)
Insure or provide for the insurance of that property
and of the operations of the City against any risks or hazards, and
pay premiums for that insurance.
I.
Contracts and other instruments. The City may:
(1)
Make and execute all contracts and other instruments
necessary or convenient to the exercise of its powers under this chapter,
including agreements with other public bodies or agencies (which agreements
may extend over any period, notwithstanding any provision or rule
of law to the contrary); and
(2)
Include in any contract for financial assistance with
the federal government for or with respect to a redevelopment project
and related activities any conditions imposed under federal law that
the City considers reasonable and appropriate.
K.
Public improvements. The City may plan, replan, install,
construct, reconstruct, repair, close or vacate streets, roads, sidewalks,
public utilities, parks, playgrounds, streetlights, street trees and
other public improvements in connection with a redevelopment project.
L.
Building regulations. The City may make exceptions
from building regulations as necessary or appropriate to carry out
the purposes or objectives of this chapter.
M.
General administration. The City may generally organize,
coordinate and direct the administration of the provisions of this
chapter so that the objective of remedying blighted areas and preventing
their causes within the City are most effectively promoted and achieved.
N.
General exercise of powers and authority. The City
may exercise all or any part or combination of the powers and authority
granted by this chapter.
A.
Resolution required. To initiate a redevelopment project,
the Mayor and Council shall adopt a resolution as provided in this
section.
B.
Contents of resolution. The resolution shall:
(1)
Find that one or more blighted areas exist in the
City;
(2)
Find that the rehabilitation, redevelopment, conservation,
clearance or renewal of the blighted area or areas is necessary in
the interest of the public health, safety, morals or welfare of the
residents of the City; and
(3)
Locate and define the blighted area or areas to which
the proposed redevelopment project will apply.
A.
In general, in order to carry out the purposes and
objectives of this chapter, the City shall:
B.
Contents of plan. The Redevelopment Plan shall be
sufficiently complete to indicate, with respect to the redevelopment
area covered by the plan, any proposals for:
C.
Review by Planning Commission.
(1)
Prior to its approval of a redevelopment project,
the City shall submit the proposed Redevelopment Plan to the Planning
Commission for review and recommendations as to its conformity with
the Comprehensive Development Plan of the City. The Planning Commission
shall submit its written recommendations to the City within 60 days
after it receives the proposed plan for review.
(2)
Upon receipt of the recommendations of the Planning
Commission or if no recommendations are received within 60 days, then
without those recommendations the City may proceed with a public hearing
on the proposed redevelopment project.
D.
Public hearing.
(1)
The City shall hold a public hearing on a proposed
redevelopment project after public notice by publication in a newspaper
having a general circulation within the corporate limits of the City.
E.
Approval of plan. Following the hearing, the City
may approve a redevelopment project and the Redevelopment Plan for
that project if the City finds that:
(1)
A feasible method exists for the relocation of any
families who will be displaced from the redevelopment area to decent,
safe and sanitary dwelling accommodations within their means and without
undue hardship to those families;
(2)
The Redevelopment Plan substantially conforms to the
Comprehensive Development Plan of the City; and
(3)
The Redevelopment Plan will afford maximum opportunity,
consistent with the sound needs of the City as a whole for the redevelopment,
rehabilitation, conservation, clearance or renewal of the redevelopment
area by private enterprise.
F.
Modification to plan.
(1)
The City may modify a Redevelopment Plan at any time.
(2)
If the City modifies a Redevelopment Plan after the
lease or sale of real property in the redevelopment area, the modification
may be conditioned upon whatever approval of the purchaser, lessee
or successor in interest the City considers advisable and, in any
event, shall be subject to whatever rights at law or in equity a purchaser,
lessee or successor in interest is entitled to assert.
(3)
If the proposed modification will substantially change
the Redevelopment Plan as previously approved by the City, the modification
shall be formally approved by the City as in the case of an original
plan.
G.
Effect of approved plan or modification. Upon the
approval by the City of a Redevelopment Plan or of any modification
of a Redevelopment Plan:
A.
In general.
(1)
The City may sell, lease or otherwise transfer real
property acquired by it for a redevelopment project to any person
for residential, recreational, commercial, industrial, educational
or other uses or for public use, or may retain that property for public
use in accordance with the Redevelopment Plan, subject to whatever
covenants, conditions and restrictions, including covenants running
with the land, that the City considers necessary or desirable to assist
in eliminating or preventing the development, recurrence or spread
of blight, slums or deterioration or otherwise to carry out the purposes
or objectives of this chapter.
(2)
If the City acquires real property to be transferred
in accordance with a Redevelopment Plan, the City shall transfer that
property as rapidly as feasible in the public interest consistent
with carrying out the provisions of the Redevelopment Plan.
B.
Fair value.
(1)
Real property acquired by the City for a redevelopment
project may not be sold, leased, otherwise transferred or retained
at less than its fair value for uses in accordance with the Redevelopment
Plan.
(2)
In determining fair value for this purpose, the City
shall take into account and give consideration to:
(a)
The uses provided in the Redevelopment Plan for that
property;
(b)
The restrictions imposed upon and the covenants, conditions
and obligations assumed by the purchaser or lessee or the City retaining
the property; and
(c)
The objectives of the Redevelopment Plan for the elimination
or prevention of the development, recurrence or spread of blight,
slums or deterioration.
C.
Use of property by transferees.
(1)
Purchasers or lessees and their successors in interest
shall be obligated to devote the real property only to the uses specified
in the Redevelopment Plan and may be further obligated to comply with
any other requirements that the City determines to be in the public
interest, including the obligation to begin within a reasonable time
any improvements required by the Redevelopment Plan.
(2)
The City may provide in any instrument of conveyance
to a private purchaser or lessee that the purchaser or lessee shall
be without power to sell, lease or otherwise transfer the real property
without the prior written consent of the City until the purchaser
or lessee has completed the construction of any or all improvements
that the purchaser or lessee is obligated to construct on the property.
D.
Recordation of plan or contract. Any redevelopment
plan and any contract for the transfer of real property under a Redevelopment
Plan (or any part or parts of the plan or contract that the City determines
to be appropriate) may be recorded in the land records of Washington
County so as to afford actual or constructive notice of the plan or
contract.
E.
Competitive bidding process.
(2)
By publication of public notice in a newspaper having
a general circulation in the community (not less than 60 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
under the provisions of this section), the City may invite proposals
from and make available all pertinent information to private redevelopers
or other persons interested in undertaking to redevelop, rehabilitate,
conserve, clear or renew all or any part of a redevelopment area.
The notice shall identify the redevelopment area or the applicable
part of that area, shall state that proposals by those interested
shall be made within a specified period of not less than 60 days after
the first date of publication of the notice and shall specify the
office at which further available information may be obtained.
(3)
The City shall consider all proposals and the financial
and legal ability of the persons making the proposals to carry them
out. The City may negotiate with any persons for proposals for the
purchase, lease or other transfer of any real property acquired by
the City in the redevelopment area.
(4)
The City may accept any proposal that it considers
to be in the public interest and in furtherance of the purposes and
objectives of this chapter. Thereafter, the City may execute and deliver
contracts, deeds, leases and other instruments and may take all other
steps necessary to effectuate these transfers.
F.
Temporary operation of property by City. Pending the
disposition of property acquired under this chapter, the City may
temporarily operate and maintain that property, without regard to
the preceding requirements of this chapter, for any uses and purposes
that the City considers desirable, even though not in conformity with
the Redevelopment Plan.
G.
Presumed validity of instruments. Any instrument executed
by the City 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 the title or other interest of any bona fide purchaser,
lessee or transferee of that property is concerned.
Condemnation of property under the provisions
of this chapter shall be in accordance with the procedures provided
in the Real Property Article of the Annotated Code of Maryland.
To the greatest extent it determines to be feasible
in carrying out the provisions of this chapter, the City shall afford
maximum opportunity, consistent with the sound needs of the City as
a whole, for the redevelopment, rehabilitation, conservation, clearance
or renewal of any redevelopment area by private enterprise. The City
shall give consideration to this objective in exercising its powers
under this chapter.
A.
Authority to issue. For the purposes of financing
and carrying out a redevelopment project and related activities, the
City may issue and sell its general obligations bonds.
B.
Limitations. Bonds issued by the City under this section
shall be issued in the manner and within the limitations prescribed
by applicable law for the authorization and issuance by the City of
general obligation bonds and within any other limitations the City
determines.
B.
Source of payment; security.
(1)
Bonds issued under this section shall be made payable,
as to both principal and interest, solely from the income, proceeds,
revenues and funds of the City derived from or held in connection
with its undertaking and carrying out redevelopment projects under
this chapter.
(2)
Payment of the 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 redevelopment
project of the City under this chapter, or by a mortgage of any redevelopment
project or any part of a redevelopment project, title to which is
in the City. In addition, the City may enter into an indenture of
trust with any private banking institution of this state having trust
powers and may agree in that indenture of trust to any covenants and
commitments required by any purchaser for the adequate security of
the bonds.
C.
Bonds not indebtedness; exemption from restrictions.
Bonds issued under this section:
(1)
Do not constitute an indebtedness within the meaning
of any constitutional or statutory debt limitation or restriction;
(2)
Are not subject to the provisions of the City Charter
or of any other law relating to the authorization, issuance or sale
of bonds; and
(3)
Are hereby specifically exempted from the restrictions
contained in §§ 9, 10 and 11 of Article 31 of the Annotated
Code of Maryland.
D.
Tax exemption. Bonds issued under the provisions of
this chapter are hereby declared to be issued for an essential public
and governmental purpose and, together with the interest payable on
them and the income derived from them, shall be exempted from all
taxes.
E.
Issuance, form and tenor.
(1)
Bonds issued under this section shall be authorized
by resolution or ordinance of the Mayor and Council.
(2)
The bonds may be issued in one or more series.
(3)
The resolution or ordinance or the trust indenture
or mortgage issued pursuant to the resolution or ordinance may determine
and provide for:
(a)
The date or dates of issue.
(b)
The time or times of maturity.
(c)
The rate or rates of interest, not exceeding
6% per annum.
(d)
The denomination or denominations of the bonds.
(e)
The form of the bonds, either with or without
coupon or registered.
(f)
Conversion or registration privileges.
(g)
Rank or priority.
(h)
The manner of execution.
(i)
The medium and the place or places of payment.
(j)
The terms of redemption, with or without premium.
(k)
The manner in which the bonds are to be secured.
(l)
Other characteristics as may be provided by
the resolution, ordinance, trust indenture or mortgage.
F.
Sale.
(1)
The bonds may be sold at not less than par at public
sales held after prior notice is published in a newspaper having a
general circulation in the area in which the City is located and in
any other medium of publication that the City determines. The bond
may be exchanged for other bonds on the basis of par.
(2)
The bonds may be sold to the federal government at
private sale at not less than par. If less than all of the authorized
principal amount of the 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 City that does not exceed the interest cost to the City
of the portion of the bonds sold to the federal government.
G.
Execution. If any official of the City whose signature
appears on any bond or coupon issued under this chapter ceases to
be an official of the City before delivery of the bond or if any official
of the City shall have become such after the date of issue of any
bond, the bond nevertheless shall be a valid and binding obligation
of the City in accordance with its terms.
H.
Negotiability. Any provision of any law to the contrary
notwithstanding, any bond issued under this chapter shall be fully
negotiable.
I.
Conformity with chapter. In any suit, action or proceeding
involving the validity or enforceability of any bond issued under
this chapter or of any security for it:
(1)
Any bond that recites in substance that it has been
issued by the City in connection with a redevelopment project under
this chapter shall be conclusively deemed to have been issued for
that purpose; and
(2)
The redevelopment project shall be conclusively deemed
to have been planned, located and carried out in accordance with the
provisions of this chapter.
J.
Authorized investment.
(1)
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, personal representatives, curators,
trustees and other fiduciaries may legally invest any sinking funds,
money or other funds belonging to them or within their control in
any bonds or other obligations issued by the City under this chapter,
provided that the bonds and other obligations are 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 the bonds or
other obligations, money in an amount (together with any other money
irrevocably committed to the payment of principal and interest on
the bonds or other obligations) that will suffice to pay the principal
of the bonds or other obligations with interest to maturity, which
money under the terms of the agreement are required to be used for
the purpose of paying the principal of and the interest on the bonds
or other obligations at their maturity. These bonds and other obligations
shall be authorized security for all public deposits.
(2)
The purpose of this section is to authorize all persons,
political subdivisions and officers, public or private, to use any
funds owned or controlled by them for the purchase of any of these
bonds or other obligations of the City.
(3)
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.
If any provision of this chapter or the application
of any provision to any person or circumstances is held invalid, the
remainder of the chapter and the application of the provision to persons
or circumstances other than those as to which it is held invalid shall
not be affected. For this purpose, the provisions of this chapter
are declared severable.
