620.6003.  Missouri innovation zone program — economic development incentives for eligible cities — application procedure — available incentives — approval or denial requirements. — 1.  There is hereby established a statewide Missouri innovation zone program providing a coordinated framework under which eligible cities may designate a defined geographic area for participation in state-authorized economic development incentives under sections 620.6000 to 620.6033.

  2.  (1)  A city shall not be permitted more than one certified Missouri innovation zone and the department shall not consider multiple proposals from a single city.

  (2)  A certified Missouri innovation zone shall consist of a defined geographic area as described in section 620.6000.

  (3)  Participation in the program shall be voluntary.  No city shall be required to establish a Missouri innovation zone.

  (4)  No local legislative act, ordinance, or resolution shall be required as a prerequisite for, or to maintain designation or certification as, a Missouri innovation zone.

  3.  (1)  The executive branch of a city seeking designation and certification of a Missouri innovation zone shall prepare and submit to the department a master plan for the proposed zone and shall be responsible for coordinating implementation of the zone upon certification.

  (2)  The master plan shall:

  (a)  Define the geographic boundaries of the proposed zone;

  (b)  Identify vacant or under-utilized properties demonstrating how incentives authorized under sections 620.6000 to 620.6033 are expected to be deployed and the impact such incentives are intended to have;

  (c)  Identify public safety and infrastructure priorities;

  (d)  Establish a reinvestment strategy for net-new state revenue and net-new property tax revenue under sections 620.6006 and 620.6012; and

  (e)  Provide high-level projections of anticipated housing, jobs, business, and population activity.

  (3)  Upon certification of the zone, the executive branch shall:

  (a)  Coordinate with the department regarding compliance and implementation of sections 620.6000 to 620.6033;

  (b)  Ensure policies required under section 620.6006 remain in effect;

  (c)  Oversee allocation and use of net-new state revenue and net-new property tax revenue reinvested within the zone under sections 620.6006 and 620.6012 and the approved master plan; and

  (d)  Perform such other functions as may be necessary to carry out the purposes of the Missouri innovation zone program.

  4.  (1)  Within forty-five calendar days of receipt of a complete master plan application, the department shall issue a written determination approving, conditionally approving, or denying designation or certification.

  (2)  For purposes of this section, an application shall be deemed complete if it includes all materials expressly required under this section and any forms or documentation prescribed by rule consistent with this section.  The department's review of completeness shall be limited to determining whether the required materials have been submitted, whether such materials are facially sufficient, and including that the proposed boundaries of the Missouri innovation zone conform to the definition of such term as defined under section 620.6000.

  (3)  If the department determines that the application is materially incomplete or facially deficient, the department shall issue a written notice of deficiency identifying the specific missing or deficient items within forty-five calendar days of initial submission.

  (4)  The applicant shall have fifteen calendar days from issuance of a deficiency notice to cure the identified deficiencies in order to retain its place in the review queue.  Upon receipt of supplemental materials curing such deficiencies, the department's review period shall resume; however, the department shall in all events have not fewer than thirty calendar days from receipt of the cured application to complete its review and issue a determination.

  (5)  If the department denies designation or certification of a proposed Missouri innovation zone, it shall issue a written determination stating with specificity the precise statutory provision or rule with which the application fails to comply.

  (6)  The department's review authority under this section shall be limited to determining whether:

  (a)  The proposed geographic boundaries conform to the statutory definition and requirements of a Missouri innovation zone under sections 620.6000 to 620.6006; and

  (b)  The application satisfies the express statutory requirements of this section and any duly promulgated rules consistent therewith.

  (7)  Except as otherwise provided in this section, the department shall not impose additional discretionary criteria or conditions not expressly authorized by this section.

  (8)  (a)  If the department determines that an application satisfies all requirements for designation under this section, except for adoption of the local implementation policies required under section 620.6006, the department shall issue a conditional designation of the Missouri innovation zone.

  (b)  A conditional designation shall constitute formal approval of the proposed Missouri innovation zone boundaries and master plan; however, such designation shall not be effective for purposes of eligibility for any state-administered or locally administered incentives under sections 620.6000 to 620.6033 until the department certifies that the participating city has adopted and implemented all required local policies under section 620.6006.

  (c)  There shall be no mandatory deadline for adoption of such required local policies; provided, however, that no incentives authorized under sections 620.6000 to 620.6033 shall be available within the conditionally designated zone until certification of implementation is issued by the department.

  (d)  Upon submission of documentation demonstrating adoption and implementation of the required local policies, the department shall review such submission solely for the purpose of verifying compliance with the express statutory requirements of section 620.6006.

  (e)  The department's review under this subdivision shall be limited to determining whether the required policies have been formally adopted and are consistent with the express requirements of sections 620.6000 to 620.6006.  The department shall not impose additional conditions, modify local policies beyond statutory requirements, or reopen review of previously approved zone boundaries or master plan.

  (f)  Within thirty calendar days of receipt of such documentation, the department shall issue written certification that the participating city has satisfied the required implementation conditions, or shall issue a similar notice identifying any specific statutory deficiencies.

  (9)  Failure of the department to issue an approval, conditional approval, denial, or deficiency notice within the time frames under this subsection shall constitute certification of the Missouri innovation zone by operation of law.

  5.  (1)  Upon certification of a Missouri innovation zone under this section, the incentives authorized under sections 620.6000 to 620.6033 shall be available within the certified geographic boundaries of the zone, subject to the eligibility criteria, performance standards, and procedures set forth in those sections, provided that no such incentives shall be awarded to any data storage center, as such term is defined in section 144.810.

  (2)  The following state-administered incentives shall be available to qualifying applicants or individuals located within a certified Missouri innovation zone:

  (a)  Employer retention and reinvestment incentive under section 620.6018;

  (b)  Employer relocation incentive under section 620.6021;

  (c)  Office-to-residential incentive under section 620.6024;

  (d)  Missouri opportunity zone tax deferral under section 620.6027; and

  (e)  Missouri angel investment incentive under sections 620.6030 and 620.6033.

  (3)  Upon certification of a Missouri innovation zone, the geographic area within the certified zone shall constitute a redevelopment area for purposes of chapters 99 and 353, and for all other statutes authorizing property tax abatement or tax increment financing, to the extent permitted by Article X of the Constitution of Missouri.

  (4)  Property located within a certified Missouri innovation zone shall be eligible for property tax abatement and tax increment financing authorized under chapters 99 and 353, provided that:

  (a)  The project satisfies the applicable master scorecard tier; and

  (b)  The project otherwise complies with statutory requirements governing such incentives.

  (5)  No additional ordinance, resolution, legislative finding, or separate redevelopment area designation shall be required for a project within a certified Missouri innovation zone to qualify for property tax abatement or tax increment financing, provided the project meets the requirements of this section.

  (6)  The duration, percentage, and structure of any property tax abatement or tax increment financing awarded within a certified Missouri innovation zone shall be determined by the project's verified score under the master scorecard, subject only to maximum limits authorized by statute.  Notwithstanding any sunset provision applicable to sections 620.6000 to 620.6033, any property tax abatement or tax increment financing awarded to a project within a certified Missouri innovation zone prior to such sunset shall remain in full force and effect for the full duration determined by the project's verified score under the master scorecard, subject only to maximum limits authorized by sections 620.6000 to 620.6033.

  (7)  Nothing in this section shall be construed to waive or supersede any constitutional limitation applicable to property taxation under Article X of the Constitution of Missouri; provided, however, that required findings shall be satisfied through compliance with this section and the master scorecard.

  6.  Each incentive authorized under sections 620.6000 to 620.6033 shall be administered by the agency or authority in this section and subject to the procedures established in its respective section or any rules duly promulgated thereunder.

  7.  The rural Missouri development fund shall be administered by the department in accordance with section 620.6009.

  8.  The public safety fund shall be administered by the executive branch of the participating city in accordance with the approved master plan under sections 620.6003, 620.6006, and 620.6012.

  9.  The Missouri opportunity zone incentive under section 620.6027 shall be administered by the department of revenue through tax filing, certification, and reporting procedures.

  10.  The employer retention and reinvestment incentive under section 620.6018 and employer relocation incentive under section 620.6021 shall be administered by the department through execution and oversight of withholding agreements, in coordination with the department of revenue.

  11.  The office-to-residential conversion incentive under section 620.6024 shall be reviewed, scored using the master scorecard, and administered by the department.

  12.  The Missouri angel investment incentive under sections 630.6030 and 620.6033 shall be administered by the department.

  13.  Local tax abatement and tax increment financing authorized within a certified Missouri innovation zone shall be processed and administered by the appropriate local governing authority in accordance with applicable constitutional and statutory requirements, provided that eligibility and tier determination shall be governed by the master scorecard.

  14.  (1)  The department shall adopt and promulgate rules to establish and administer a master scorecard solely for purposes of:

  (a)  The office-to-residential conversion incentive authorized under section 620.6024; and

  (b)  Locally administered tax increment financing and property tax abatement authorized under chapters 99 and 353, within a certified Missouri innovation zone.

  (2)  The master scorecard shall:

  (a)  Establish objective, measurable, performance-based scoring criteria consistent with this subsection;

  (b)  Establish the weighting methodology applicable to scoring categories;

  (c)  Provide a total possible score of not less than one hundred points, which may exceed one hundred points to allow flexibility across varying project types;

  (d)  Establish not fewer than five incentive tiers, with eligibility for each tier determined solely by total points achieved;

  (e)  Establish proportional scaling between tiers;

  (f)  Establish a minimum eligibility threshold of not less than fifty points; and

  (g)  Provide that a project achieving a normalized score of one hundred points shall be eligible for the maximum incentive level authorized by state statute for each incentive governed by the master scorecard, subject only to statutory limitations applicable to such incentive.

  (3)  The master scorecard shall be structured to ensure that:

  (a)  No single scoring category shall be weighed in a manner that causes such category to constitute a mandatory prerequisite to eligibility or to control a disproportionate share of the total available points, except that the department may assign enhanced weight to housing production or residential activation categories consistent with the purposes of this subsection, namely scoring categories listed under paragraphs (a), (g), and (h) of subdivision (4) of this subsection;

  (b)  Participation in, or compliance with, any scoring category shall be voluntary and encouraged only through scoring, and not as a requirement;

  (c)  No scoring category shall operate, in design or effect, as a mandatory prerequisite to incentive eligibility; and

  (d)  Written input from participating cities regarding the scorecard may be considered.

  (4)  The master scorecard shall evaluate projects based on the following categories:

  (a)  Housing activation, rehabilitation, and creation;

  (b)  Affordability;

  (c)  Ground-floor activation and tenant improvements;

  (d)  Community improvements and neighborhood connectivity;

  (e)  Historic preservation;

  (f)  Access and mobility;

  (g)  Family-oriented design;

  (h)  Resident amenities and quality of life features;

  (i)  Timeline, stabilization, and assessed value; and

  (j)  Workforce practices, local participation, and stewardship.

  (5)  The department shall not establish additional scoring categories beyond those enumerated in this subsection; however, it may promulgate subcategories, rules, and documentation requirements within each category consistent with the purposes of this subsection.  In promulgating the rules of each category and subcategory, the department may solicit and consider input from certified Missouri innovation zones, applicants for zone certification, and other relevant stakeholders throughout the state.

  (6)  Once a reviewing authority verifies that a project has achieved a tier threshold under the master scorecard, the incentive governed by this subsection shall be awarded consistent with that tier and shall not be reduced, modified, conditioned, or denied beyond the requirements expressly set forth in this subsection.

  (7)  For the office-to-residential incentive, the department shall administer and apply the master scorecard.

  (8)  For tax abatement and tax increment financing within a certified Missouri innovation zone, the local governing authority shall apply the master scorecard in administering such incentives.

  15.  The applicant shall bear the burden of demonstrating compliance with the master scorecard criteria and shall submit documentation and certifications as required by rule.  The reviewing authority shall limit its review to verification of factual accuracy and scoring compliance and shall not alter the scoring methodology or tier thresholds established by the department.

  16.  Nothing in this section shall prohibit a participating city from awarding additional locally administered incentives, including, but not limited to, tax abatement and tax increment financing, consistent with state law regardless of a project's score under the master scorecard.

  17.  Nothing in sections 620.6000 to 620.6033 shall be construed to authorize the reduction, abatement, diversion, or impairment of any existing revenues of the participating city.  Any property tax abatement or tax increment financing incentive evaluated under the master scorecard shall apply solely to net-new assessed value or net-new tax increment.

  18.  Nothing in sections 620.6000 to 620.6033 shall be construed to waive, limit, supersede, or otherwise modify any requirement, limitation, restriction, or prohibition imposed by state or federal law applicable to an applicant or to the use of funds including, but not limited to, sections 135.810 and 280.025, any provision of sections 135.800 to 135.830, or any statutory limitation on eligibility for, or use of, public funding.  Compliance with all applicable criminal, tax, labor, reporting, and funding laws shall remain a condition of eligibility for, and retention of, any economic development tools authorized under sections 620.6000 to 620.6033, independent of the master scorecard.

  19.  (1)  Any state-administered economic development tool authorized under sections 620.6000 to 620.6033 that requires submission of an application to the department shall be reviewed and determined in accordance with this subsection.

  (2)  This subsection shall apply to:

  (a)  The rural Missouri development fund under section 620.6009;

  (b)  The employer retention and reinvestment incentive under section 620.6018;

  (c)  The employer relocation incentive under section 620.6021;

  (d)  The office-to-residential conversion incentive under section 620.6024; and

  (e)  The Missouri angel investment incentive under sections 630.6030 and 620.6033.

  (3)  This subsection shall not apply to:

  (a)  The Missouri innovation zone public safety fund under section 620.6012;

  (b)  The Missouri opportunity zone under section 620.6027.

  (4)  (a) Upon receipt of a complete application for a state-administered economic development tool under this subsection, the department shall issue a written determination approving or denying such application within forty-five calendar days.

  (b)  Failure of the department to issue a written determination within such period shall result in deemed approval of the application, provided that the application otherwise satisfies statutory requirements.

  (c)  If the department fails to issue the required ministerial confirmation of a deemed approval, the department shall, upon request of the applicant, issue a written certification of deemed approval within forty-five calendar days.  Failure of the department to issue such certification within the prescribed period shall not impair the effectiveness of the deemed approval.

  (5)  If the department denies an application under this subsection, the denial shall:

  (a)  Be issued in writing; and

  (b)  State the specific grounds for denial.

  (6)  (a) Applications for locally administered economic development tools, including tax abatement and tax increment financing authorized under this section and section 620.6006, shall be reviewed by the local governing authority in accordance with section 620.6006.

  (b)  Nothing in this section shall be construed to authorize the department to review, approve, deny, or administer locally administered economic development tools.

  (c)  For economic development tools subject to master scorecard evaluation, the participating city shall apply the master scorecard under this section in accordance with department rules, and the department shall retain supervisory authority to ensure consistency, accuracy, and compliance with statutory requirements.