satisfactory, and that there is reasonable necessity for the corporation in the city in which it proposes to operate. Any such redevelopment corporation is declared to be an agency of the State.

(d) Kentucky: Within 20 years of the effective date of the redevelopment law a redevelopment corporation may be organized, pursuant to the general corporation law of the State, by three or more persons making, acknowledging, and filing articles of incorporation in accordance with such general corporation law, except that such articles must state that the purpose of the corporation is the formulation, construction, and operation of a redevelopment plan pursuant to the redevelopment law and that the duration of the corporation shall be at least 20 years. Any corporation organized pursuant to the general corporation law may become a redevelopment corporation by similarly filing amendments to its articles of incorporation so that such articles will conform to the provisions of the redevelopment law.

(e) Massachusetts: An urban redevelopment corporation may be created by three or more persons filing with the Secretary of the Commonwealth an agreement of association (in a form furnished or approved by the commissioner of corporations and taxation) with intent to form a corporation for the purpose of carrying out a project as defined in the statute, together with a certificate of the housing board of the Commonwealth that it approves the project and consents to the formation of the corporation to carry it out. Approval by the housing board is conditioned upon approval of local officials, including the planning commission, if any, after public hearing. The general corporation laws of the Commonwealth and rules and regulations made pursuant thereto shall apply to redevelopment corporations so far as consistent with the provisions of the urban redevelopment statute; provided that no stock shall be issued without par value; and corporations formed under this statute are "declared to be instrumentalities of the Commonwealth." Insurance companies, with approval of the commissioner of insurance and subject to applicable provisions of the statute, are authorized to undertake the development of "one or more projects."

(f) Michigan: Within 10 years of the effective date of the urban redevelopment corporations law, a redevelopment corporation may be organized pursuant to the general corporation law of the State, by three or more persons filing with the corporation and securities commission a certificate which shall be in accordance with such general corporation law, except that the certificate must state that the purpose of the corporation is the formulation, construction and operation of a redevelopment plan pursuant to the urban redevelopment corporations law, and that the duration of the corporation shall be at least 20 years. Any corporation organized pursuant to the general corporation law may become a redevelopment corporation by similarly filing an appropriate certificate changing the provisions of its certificate of incorporation to conform to the provisions of the urban redevelopment corporations law.

(g) Minnesota: A neighborhood redevelopment corporation may be organized by three or more persons (who are citizens of the United States and at least two of whom are citizens of the State) filing with the Secretary of State a verified statement of incorporation, which shall contain certain organizational information required by the neighborhood redevelopment corporation law and a statement of the purposes of the corporation (which shall include the elimination of degenerative conditions and the rehabilitation and rebuilding of that development area whose redevelopment it is authorized to undertake subject to the supervision of and regulation by and pursuant to a certificate of convenience and necessity issued by the redevelopment commission. The statement shall declare that the duration of the corporation shall not exceed 60 years, and that it shall be without revivor. Any city of the first class may establish a redevelopment commission (the city planning commission may be designated to be the redevelopment commission) to supervise and regulate neighborhood redevelopment corporations authorized under the statute. A redevelopment corporation shall consist of not less than three nor more than five members appointed for terms of 2 years by the mayor of the city with the advice and consent of the governing body. Said commission may employ personnel and fix their compensation subject to the approval of the governing body of the city, and the commission shall receive such salary as may be fixed and appropriated by the governing body of the city. (h) Missouri: A redevelopment corporation may be organized pursuant to the general corporation laws of the State, by three or more persons filing in the office of the secretary of state articles of association containing certain organizational information required by the Urban Redevelopment Corporations Act, together with a certificate of the board of public service (the agency authorized to prepare a general city plan) and the public supervising agency (the board of estimate

and apportionment, or if none, an officer designated by the governing body of the city) that they approve the project for which the redevelopment corporation is to be formed and consent to the filing of the articles of association. Such articles of association must state the duration of the corporation, which must be no less than 50 years and no more than 99 years. It is to be noted that before a redevelopment corporation can be organized, its proponents must obtain the approval of the board of public service as to a rather detailed plan for the redevelopment of an area which such board finds is "substandard, submarginal, or insanitary so that the clearance, replanning, rehabilitation, or reconstruction therof is necessary," and obtain the approval of the supervising agency as to their plan for redevelopment, which latter approval is based primarily upon the supervising agency's judgment as to whether (1) the persons to be associated with the management of the redevelopment corporation during the period of at least one year, from the date of its plan of redevelopment was approved, have sufficient ability and experience and (2) the proposed method of financing the redevelopment is feasible. (i) New Jersey: A redevelopment company may be created by three or more persons signing, acknowledging, and filing with the secretary of state, and the county clerk of the county in which the principal office of the corporation is to be located, a certificate which contains certain organizational and other information and a statement of the time of duration of the company, which must be at least 25 years. Such certificate, and any certificate of amendment thereto, must be accompanied by another certificate evidencing the consent of the State department of economic development. (The redevelopment companies law uses the words "State housing authority" in lieu of "department of economic development,' but the State housing authority has been abolished and its powers and functions transferred to such department by chapter 85 of the New Jersey Laws of 1944.) Insurance companies, savings banks, savings and loan associations, and building and loan associations are authorized to organize redevelopment companies pursuant to the redevelopment companies law.

(j) New York: (1) 1942 law: A redevelopment company may be created by three or more persons signing, acknowledging, and filing with the secretary of state a certificate which contains certain organizational and other information and a statement of the time of duration of the company, which must be at least 20 years. Such certificate must be accompanied by another certificate evidencing the consent of the supervising agency (which is the financial officer of the municipality, except that it is the superintendent of insurance if any of the stock of the company is to be held by insurance companies). A certificate of amendment to the certificate of incorporation may not be filed without certificates of consent from the supervising agency and the legislative body (which is the governing body, except that it is the board of estimate if any esists) of the municipality. Insurance companies are authorized to organize redevelopment companies pursuant to the redevelopment companies law.

(2) 1941 law: Within 10 years of the effective date of the urban redevelopment law, a redevelopment corporation may be organized under the stock corporation law of the State by three or more persons filing in the department of state she certificate which shall be in accordance with the stock corporation law, except that the certificate must state that the purpose of the corporation is the formulation, construction, and operation of a redevelopment plan pursuant to the urban redevelopment corporations law, that the duration of the corporation shall be perpetual, and that the corporation has been organized to serve a public purpose and shall be subject to supervision and control as provided in the statute. Any corporation organized pursuant to the stock corporations law or the general corporation law of the State may become a redevelopment corporation by similarly filling an appropriate certificate changing the provisions of its original certificate of incorporation to conform to the provisions of the urban redevelopment corporations law.

(k) Wisconsin: A redevelopment corporation may be organized pursuant to the general corporation law of the State. The urban redevelopment law provides that a redevelopment corporation is any corporation carrying out a redevelopment plan pursuant to such law, and makes the provisions of the general corporation law of the State applicable to redevelopment corporations, except where such provisions are in conflict with the provisions of the urban redevelopment law.

VI. UTILIZATION OF PUBLIC POWERS TO AID REDEVELOPMENT

1. Eminent domain

(a) Illinois: With the approval of the redevelopment commission of the municipality, a neighborhood redevelopment corporation may acquire real property by eminent domain for any of its purposes, if the corporation has first acquired

by purchase, or secured options on, 60 percent of the land in the redevelopment

area.

(b) Indiana: After the approval of a redevelopment plan and after the corporation undertaking the plan has acquired title to, or holds option upon, at least two-thirds of the land included in the area of the plan, such corporation may appropriate by eminent domain any lands or improvements in such area.

(c) Kansas: A redevelopment corporation may exercise eminent domain for any of the purposes of the urban redevelopment law, after the issuance of a certificate of approval therefor by the State corporation commission.

(d) Kentucky: Upon petition of a redevelopment corporation, the city may acquire real property by eminent domain for such corporation, after a certificate of approval has been issued by the supervising agency (which is an officer designated by the governing body of the city). The corporation must agree to pay the city all sums expended by it in the acquisition of such real property, and to secure such payment, as required by the city. In determining the value of the real property in eminent domain proceedings, evidence is admissible on the insanitary, unsafe, or substandard conditions of the premises, their illegal use, and the enhancement of rentals from such illegal use. Real property devoted to a public use may be taken by eminent domain, but no property belonging to a city or any other governmental body may be acquired without its consent.

(e) Massachusetts: A redevelopment corporation is authorized to acquire land, with the approval of the housing board, under the provisions of the general eminent domain statutes for its project purposes.

(f) Michigan: Similar to Kentucky.

(g) Minnesota: A neighborhood redevelopment corporation may exercise the power of eminent domain as provided by the general laws of the State relating thereto, but may not acquire any real property or interest therein, except by way of unexercised option, unless it shall first have obtained a certificate of convenience and necessity from the redevelopment commission (given after public hearing) that the area involved is a slum and blighted area and that the acquisition of the property and its development is necessary and convenient for the public purposes defined, and is part of the public use declared by the statute. Before any condemnation proceedings may be instituted, the corporation shall present to the redevelopment commission an application for approval which shall contain, among other things, proof that the corporation has acquired by purchase or has secured options to purchase 60 percent or more in area of the land within the development

area.

(h) Missouri: With the approval of the board of public service of the city, a redevelopment corporation may acquire real property by eminent domain for any of the purposes of the Urban Redevelopment Corporations Act. Real property devoted to a public use may be taken by the corporation by eminent domain, but no property belonging to a city or other governmental body may be acquired without its consent.

(i) New Jersey: A municipality may take real property by eminent domain for a redevelopment company, if the company has entered into a contract with the municipality which requires the company to pay to the municipality all sums to be expended in the acquisition of such real property and which provides for the manner of securing such payment. Such real property may be so acquired by the municipality even though it has been devoted to a public use and held in trust, it being expressly declared that the public use under the redevelopment companies law is a superior public use.

(j) New York: (1) 1942 law: Similar to New Jersey. (2) 1941 law: Similar to Kentucky.

(k) Wisconsin: Similar to Kentucky, except that no certificate of approval is required from a supervising agency of the city.

2. Taxation

(a) Illinois: The neighborhood redevelopment corporation law provides that, notwithstanding the functions of a neighborhood redevelopment corporation, it shall be subject to the same taxes on its assets and capital stock as are imposed on the assets and capital stock of "private corporations for profit." (b) Indiana: No specific reference in statute.

(c) Kansas: After a redevelopment plan has been approved, the redevelopment corporation may exhibit the plan to the county assessor with a map and description of all tracts to be used as public parks, playgrounds, parking spaces, public open spaces or commons, streets, boulevards or alleys, and the county assessor must certify the same to the county clerk and county treasurer who must change

their records accordingly.

taxation.

Thereafter such tracts may not be assessed for

(d) Kentucky: No specific reference in statute.

(e) Massachusetts: The law provides that the real estate and personal property of a redevelopment corporation shall be exempt from taxation for a period of 40 years: Provided, That during such period the corporation shall pay annually, in lieu of such taxes, but subject to the provisions set forth in the second paragraph below with regard to gross receipts, with respect to its corporate existence at any time within the preceding calendar year an excise in an amount equal to 5 percent of its gross income in such year and in an amount equal to $10 per thousand upon the fair cash value of the real estate and tangible personal property as of January 1 in the taxable year: Provided further, That such excise shall not in any year be less than an amount equal to that which the city or town would receive for taxes upon the average of the assessed values of the real estate held by such corporations for the 3 years last preceding the acquisition thereof.

If the gross receipts of any corporation in any year exceed (a) operating and maintenance expenses, (b) taxes and fees, (c) interest or mortgage and other indebtedness, (d) dividends, (e) authorized transfer to surplus, and (f) amortization, "the amount remaining shall be applied to the payment to the city or town in which the project is located of the amount, if any, by which the taxes which would have been assessed upon the real estate and tangible personal property of the corporation in such year if such real estate and tangible personal property had not been exempted from taxation, exceeded the excise paid by such corporation and distributed to such city or town in such year" under the formula set forth in the preceding paragraph.

(f) Michigan: The governing body of a city may exempt real property owned by a redevelopment corporation, for a period not exceeding 10 years, from any increase in assessed value (for taxes) over the assessed valuations of such property on the first assessment roll warranted to the collector of taxes after the completion of the redevelopment plan.

(g) Minnesota: Similar to Illinois.

(h) Missouri: No specific reference in statute.

(2) New Jersey: The legislative body of a municipality may by "ordinance or local law" exempt lands and improvements included in any project of a redevelopment company, for a designated period not exceeding 25 years, from any increase in local tax assessment valuation over such valuation for the fiscal year in which such project is approved. The redevelopment companies law also provides that in lieu of such "tax assistance," * * * "all property included in any project or projects of a redevelopment company is hereby declared to be public property devoted to an essential public purpose upon adoption of or enactment of such an ordinance or local law." All such property is declared exempt from all taxes and special assessments of the State or any political subdivision thereof, as long as such property remains under the exclusive control and jurisdiction of the redevelopment company owning such property and such company remains subject to the regulations provided in the redevelopment companies law: Provided, That in lieu of such taxes, the company must agree to make payments to a political subdivision for the services and facilities furnished by it for the benefit of the project, but not to exceed the amount last levied as the annual tax of such political subdivision upon the property in the project prior to the time of its acquisition by the company. The tax exemption may not operate for more than 25 years, beginning in each instance on January 1 following the adoption of "such ordinance or local law." A redevelopment company which has been granted tax exemption may, at any time, elect to pay to the municipality the total of all tax exemption received, together with interest at 5 percent per annum. Upon such payment, the tax exemption of the project ceases and it is no longer subject to the restrictions and public controls applicable only to tax-exempt projects.

() New York: (1) 1942 law: The legislative body of a municipality may agree with a redevelopment company to exempt from local and municipal taxes, for a definite period of not more than 25 years, all or part of the value of the real property in a project of the company, to the extent that such value represents an increase over the assessed valuation of such property at the time of its acquisition by the company. A redevelopment company which has been granted tax exemption may, at any time, elect to pay the municipality the total of all tax exemption received, together with interest at 5 percent. Upon such payment the tax exemption of the project ceases and it is no longer subject to the restrictions and public controls applicable to tax-exempt projects.]

(2) 1941 law: The local legislative body of a city is authorized to exempt real property held by redevelopment corporations for a period not exceeding 10 years from any increase in any local tax over the maximum local tax. After the adoption of an ordinance or local law to this effect every parcel of real estate held by any redevelopment corporation in the city shall be exempt during the maximum exemption period from that portion of each and every local tax in excess of the maximum local tax.

(k) Wisconsin: The governing body of a city may exempt real property owned by a redevelopment corporation, for a period not exceeding 30 years, from any increase in assessed value (for taxes) over the assessed valuation of such property on the last assessment roll warranted to the collector of taxes prior to the time that the property is owned by the corporation pursuant to an approved redevelopment plan.

3. Provision of public works and facilities

(a) Illinois: No specific reference in statute. (b) Indiana: No specific reference in statute.

(c) Kansas: To assist a redevelopment plan, a city may vacate streets, alleys, parks, and playgrounds and acquire necessary land for new streets, alleys, parks, and playgrounds, may improve and maintain parks and playgrounds in a development area, and may appropriate money to a redevelopment corporation for such purposes. A board of education may enter into contracts with a redevelopment corporation providing for the abandonment of existing schools and the acquisition of new school sites and properties, and may contribute its funds for playgrounds and other outdoor school facilities furnished by a redevelopment corporation. A board of county commissioners may enter into contracts with a redevelopment corporation for the purpose of readjusting the board's grounds and buildings to harmonize with a redevelopment plan.

(d) Kentucky: No specific reference in statute.

(e) Massachusetts: Any city or town may by contract with a redevelopment corporation obligate itself to (a) lay out, construct, relocate, change the grade of, make repairs upon or discontinue public ways and construct sidewalks, adjacent to or through a project, if such action is found to be required by the common necessity and convenience; (b) cause parks, playgrounds, or schools, or water, sewer or drainage facilities or any other public improvements which it is otherwise authorized to undertake to be laid out, construct, or furnish ways for vehicular travel, playgrounds, or water, sewer or drainage facilities and similar improvements, to be furnished within the site of a project for the particular use of a project or of those dwelling therein.

(f) Michigan: No specific reference in statute.

(g) Minnesota: (The application of a neighborhood redevelopment corporation for the approval of its proposed development plan shall contain "A statement of recommended changes, if any, in streets, or street levels and of recommended vacations, if any, of streets, alleys, or other public spaces.")

(h) Missouri: After the proponents of a redevelopment corporation have established their good faith and interest in a redevelopment plan, the city plan commission, or similar body of the city, must make its records and data available to them and otherwise cooperate in the preparation of the redevelopment plan. The plan commission, or other body, may prepare the redevelopment plan for such proponents of the corporation, if money has been appropriated for that purpose.

(i) New Jersey: No specific reference in statute.

(2) New York: No specific reference in statute.

(k) Wisconsin: For the purpose of aiding any redevelopment plan, the governbody of a city may, on such terms as it may determine, cause parks, recreational and other public facilities, streets, and other works which it is otherwise empowered to undertake, to be furnished adjacent to or in connection with a redevelopment plan.

4. Conveyance of public property

(a) Illinois: No specific reference in statute.

(b) Indiana: No specific reference in statute.

(c) Kansas: Any city, board of education, or board of county commissioners may enter into agreements with a redevelopment corporation to buy, sell or exchange property. Any public bodies or officers, the State, corporations organized under the insurance or banking laws or fiduciaries (unless expressly forbidden by the fiduciary instrument) owning or holding any real property with a redevelopment area may grant, sell, or lease such property to a redevelopment corporation