Lauber Apologizes to Council for Incorrect Info Concerning Chapter 353

Sedalia City Attorney Joe Lauber gave a lengthy presentation on Chapter 353 Monday night to City Council to clarify any misconceptions that may have resulted from a Lauber associate’s answer to a question posed at Council’s Dec. 16 meeting.

At that meeting, a public hearing was held night concerning expansion of the 353 Plan, which would increase the redevelopment area by 296 parcels.

353 was originally approved by Council on May 18, 2020, and declared certain areas to be blighted and therefore eligible for state funds.

When it came time to vote on expanding 353, First Ward Councilman Tom Oldham asked how Chapter 353 tax abatements incentives work. An associate of the City Attorney’s office answered that tax abatement is not available under the existing plan.
Lauber stated that the associate’s answer was incorrect and incomplete.
The answer that the Lauber associate gave prompted Sedalia Mayor Andrew Dawson to immediately call for postponement of the vote on the expansion until the Council’s next meeting, which was this past Monday, Jan. 6.

“I beg your forgiveness,” Lauber told the Council. He specifically apologized to Councilman Tom Oldham and Mayor Andrew Dawson, as well as City staff.

“We were not up to speed and not ready to give an explanation of how the tax abatement program works, “ Lauber said during his mea culpa. “Instead of saying we’re not prepared, we gave answers that were wrong. Again, I apologize … He should have said ‘we don’t know’ rather than give the wrong answer.”

The law associate in question was noticeably absent from Monday night’s meeting.

Lauber then went onto explain in detail how Chapter 353 works, which is basically to remediate a blighted area.

The property owner who participates in 353 must sell his or her property to the 353 Corporation, which triggers a tax abatement. The property is then immediately sold back to the property owner, who is required to spend at least $3,500 or 6.5 percent of the Net Present Value (NPV) of the property, whichever is greater.

Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Participation in the Chapter 353 program is completely voluntary, Lauber emphasized. “I had to come here tonight to make that clear … 353 is not designed for property acquisition.”

The 353 Corporation Board of Directors, comprised of five people – three Council members, the District 200 School Superintendent and a citizen at large – are forbidden to be compensated for their work on the board, Lauber stressed.

The proposed expansion would include the downtown Sedalia area. However, Chapter 353 is mostly a residential program.

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First Ward Councilman Tom Oldham commented that he feels that Chapter 353 is a great tool, as evidenced by his visits to Elm Springs, a community that also took advantage of the Chapter 353 program. Elm Springs went from blight to beauty as a result, Oldham said.

City Council will once again have the opportunity to approve

expansion of the program on Jan. 21.