MML Review: January/February 2023

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ECONOMIC DEVELOPMENT ISSUE

www.mocities.com 1 January/February 2023 REVIEWTHE MISSOURI MUNICIPAL A UNITED VOICE FOR MISSOURI MUNICIPAL LEAGUE COMMUNITIES
Shows Their Strength In Steel | Retail Real Estate Tips | Around The State
Sedalia

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MOSIP has provided comprehensive investment management services, education, and support to Missouri school districts, counties and other political entities since 1991.

MISSOURI MUNICIPAL LEAGUE BOARD OF DIRECTORS

President: Michele DeShay, Mayor, Moline Acres; Vice President: Matt Turner, Alderman, Harrisonville; Immediate Past President: *Joe Garritano, Council Member, Wildwood; Damien Boley, Mayor, Smithville; *Chuck Caverly, Council Member, Maryland Heights; Bryant Delong, Council Member, North Kansas City; Reed Dupy, Council Member, Chillicothe; Jerry Grimmer, Council Member, Bridgeton; Cemal Unmut Gungor, City Administrator, Grandview; Dwaine Hahs, Mayor, Jackson; Heather Hall, Council Member, Kansas City; *Debra Hickey, Mayor, Battlefield; *Chris Lievsay, Council Member, Blue Springs; Ken McClure, Mayor, Springfield; *Norman McCourt, Mayor, Black Jack; Chris McPhail, Alderman, Clever; Sheryl Morgan, City Clerk, Blue Springs; Lori Obermoeller, Finance Director, Creve Coeur; Tom Oldham, Council Member, Sedalia; Len Pagano, Mayor, St. Peters; *Matt Robinson, Mayor, Hazelwood; Mike Roemerman, Mayor, Ellisville; *Kathy Rose, Mayor, Riverside; *Carson Ross, Mayor, Blue Springs; Erin Seele, Attorney, Cunningham, Vogel and Rost; Gerri Spencer, Alderman, Kearney; Jeana Woods, City Administrator, Osage Beach

*Past President

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EDITORIAL

GRAPHIC DESIGN

The Review January/February 2023; Volume 88, No. 1

The Missouri Municipal Review (ISSN 00266647) is the official publication of the Missouri Municipal League state association of cities, towns and villages, and other municipal corporations of Missouri.

Publication office is maintained at 1727 Southridge Drive, Jefferson City, MO 65109.

Subscriptions: $30 per year. Single copies: $5 prepaid. Advertising rates on request. Published bi-monthly. Periodicals postage paid at Jefferson City, Missouri.

Postmaster: Send form 3579 to 1727 Southridge Drive, Jefferson City, MO 65109.

To contact the League Office call 573-635-9134, fax 573-635-9009 or email the League at info@mocities.com. Website: www.mocities.com.

www.mocities.com 3 January/February 2023; Volume 88, No. 1 CONTENTS THE MISSOURI MUNICIPAL Features 5 Sedalia Shows Their Strength In Steel! by Tom Oldham 8 The Public Policy Of Economic Development by Christine Bushyhead 12 Probability-Based Community Surveys: An Essential Tool For Economic Development by Mark Ellickson 14 Community Development Block Grants by Brandon Jenson 18 10 Tips: Retail Real Estate Tip Sheet by John Tiedt Departments 4 President's Review 21 Local Government Review: Economic Development Projects Around The State 27 Member News 30 MML Calendar Of Events 18 5 21
Laura Holloway / Editor Lholloway@mocities.com Richard Sheets and Lori Noe Contributing Editors
Rhonda Miller

President's Review

Small Gestures, Enormous Impact

It’s common to look at a new year as a fresh start, and as local officials, we often have a long list of new projects that will benefit our communities. A new calendar year is an exciting time to plan how those projects could take shape and the new opportunities we hope to incorporate.

As you begin 2023, I want to encourage you to take a moment to think small. Specifically, I am asking you to think of ways your seemingly minor gestures could make a big impact on the mental health of those around you.

We see the impact of poor mental health in our communities. What can we do?

" As you begin 2023, I want to encourage you to take a moment to think small. Specifically, I am asking you to think of ways your seemingly minor gestures could make a big impact on the mental health of those around you."

First, it is so important to make sure your citizens are aware of the 988 suicide and crisis lifeline. If you or someone you know needs support now, call or text 988 or visit 988lifeline.org. Keep in mind that suicide affects everyone, with no regard for gender, race or economic status. Take some time to bring awareness to 988 – this could be dedicated promotion at your community events or meetings but could also be something as simple as a quick note in your newsletter or discussing it with your own family.

Second, make an individual effort to reach out to your friend, neighbor, loved one or coworker. One of the most challenging problems with addressing mental health is that the illness can seem hidden. We simply cannot know the thoughts and internal struggles of those we interact with each day. What we CAN do is realize the impact of our words, and take the time to send an encouraging text, or check in on a neighbor for a brief chat. It costs nothing to be nice and may be just the boost a struggling person needs.

Third, take time to listen more than you speak. This one is hard! Local officials often love to talk, but I believe God gave us two ears and one mouth for a reason. Learning to listen well means you will begin to pick up the signals that might be hidden to others – you may be able to discern when someone is struggling and help guide them in a more positive direction.

Finally, I encourage you to advocate for your community’s mental health needs to state legislators. MML, along with the Missouri Association of Counties and the Missouri School Boards Association, has been able to successfully advocate for increased funding to local mental health programs. The next step is to work with the Missouri Department of Mental Health to distribute those funds locally. Your individual conversations and relationships with your state legislators will go a long way to increase awareness and funding for this critical issue.

Your devoted work on street projects, parks, transportation, and so much more is widely impactful – you serve people every day more than they may ever realize. However, do not overlook the kind greeting, quick check-in or time for family and friends. Those seemingly tiny gestures can ripple out to boost your community health and overall wellness in massive ways.

988 Suicide and Crisis Lifeline

Phone: 988 Website: 988lifeline.org

NAMI Missouri Helpline & Parent Helpline

Phone: 800-374-5636 (not a crisis line) Website: https://namimissouri.org

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Sedalia Shows Their Strength In Steel!

How big of an economic development team does it take to screw in a lightbulb? It takes everyone in the community! Yes, it all starts with a strong and intuitive economic development director. However, a great director would admit they can only do so much in their position without collaboration involving city council and staff, county commissioners, educators, utility providers, landowners, business owners and other community leaders.

In November 2017, an announcement was made that an investment of $250 million would be surged into the Sedalia community. This investment would lead to 250 jobs, well above the county’s average wage, as well as a $10 million rail spur. It would also bring in more investment from other businesses.

The investment was made by Nucor, a steel mill that creates merchant bar, rebar, structural steel, sheet and other steel products. Nucor Steel Sedalia makes rebar in various sizes and specifications used to reinforce concrete, ultimately providing more tensile strength. Nucor uses technological advances to be well ahead of many competitors, as well as environmentally conscious. The massive electric arc furnace that keeps Nucor rebar flowing runs solely on electricity and is much more energy efficient with fewer emissions than other mills! Further, the technology employed at the Sedalia mill recycles scrap steel, giving it new life and conserving natural resources. However, that investment was not made overnight nor on a whim. This investment was years in the making.

Before any major business begins the process of reaching out to communities to find the right location, discussions happen internally. The process of deciphering that communication comes from requests for information to the several communities under consideration. Kelvin Shaw, Sedalia city administrator, played a key role in this process, a process he calls “the battle of attrition.” This is where some primary questions are answered, such as a community’s capacity for power, gas and other utilities; available land for rail service; and the important questions of a qualified workforce. Through this process, potential locations are narrowed down.

After sending all the information Nucor requested and surviving many

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FEATURE Review
On Nov. 2, 2022, Gov. Parson visits Nucor Steel Sedalia, LLC, for a ceremonial signing of tax credit bill SB 3 and 5. (Photo Credit: Randy Kirby)

Nucor has quickly become a cornerstone of Sedalia and Pettis County.

rounds of elimination, Sedalia finally made it to the short list for communities that could fit well for this project. At this point, only a few individuals were privileged to know the company involved. To everyone else, this was known as “Project Rotag,” or gator spelled backwards. As the community made it to the final selection stages, a few

local leaders had the opportunity to visit another Nucor location, gather more information to ensure the company was a good fit for Sedalia, and come back ready for negotiations.

With leaders around the table, Sedalia worked to find ways to set us apart from the competition. One of the major

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incentives needed was a form of tax abatement called Chapter 100. Under Chapter 100, the facility, construction materials and certain tangible personal property may be purchased on a taxexempt basis. After construction, property taxes can be abated at the municipality’s discretion up to 100% for up to 25 years.

Not only did Sedalia offer a Chapter 100 tax abatement but also added another incentive. We determined that providing the construction for water and sewer mains at no cost to the company, (roughly $500,000 for the City) was essential to the deal. We hoped this, along with the incentive packages from our state partners, electric and gas utility suppliers, had placed us in the right position to be selected. The s tate provided training assistance dollars in the form of payroll tax abatements. The electric and gas providers were able to extend services to the site, and finally, the electric company was able to negotiate a special rate for the heavy industrial user, an incentive authorized by recent legislation.

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These incentives were not taken lightly by the City, nor could they have been approved without the necessary steps. One step involved informing the local taxing districts of the possible tax abatement. The City distributed a costbenefit analysis illustrating the return in a few short years by bringing in this anchor tenant to an industrial park that could conceivably grow to 1,500 buildable acres.

The mayor, city council, city administrator, and economic development director all knew this project could mean something great for Sedalia. With proper incentives, the City, along with economic development partners, finally made the announcement in November 2017 that Nucor would be coming to Sedalia!

For Nucor to become a reality, one other major accomplishment needed to happen — access to rail. Thankfully, history had set the City up for success. Sedalia is a product of the railroad and throughout history, the City’s fortunes were tied to it. The Missouri-KansasTexas railway was incorporated in 1870, and over the years Sedalia became a hub for traffic, along with a core focus for building and maintaining rail cars.

With many other rail spurs already constructed, city and county leadership

knew what needed to happen in order to see the Nucor project through. Local leaders had already come together in past years to lay out a plan for how an additional spur could be built to open the industrial area to railroad services. Working with Union Pacific, the plan was validated and commitments obtained that they would serve the site if we built it.

Now we just needed to figure out how to pay for it. With pens at the ready, one of the largest grant applications in Sedalia’s history was written. With letters of support from state legislators, and conversations pushed at the federal level, things were looking up. However, a government shutdown pushed the project back more than an entire year. From the award of the grant to authorization to proceed, 425 days passed, but the effort was successful! The rail spur was coming!

Nucor is the anchor tenant on 300 acres of the 1,500 acres of potential use. With the addition of this rail spur, the area has become a prime candidate for further interest for new businesses across the nation. This area now has rail access, water and sewer connections, along with other utilities available.

One would think that after the announcement was made, the CIty

could sit back and enjoy the fruits of the labor. However, Sedalia knows that once something great happens, we must maintain that greatness. In order for Nucor to thrive, Sedalia needed to develop and maintain a great workforce to support them along with other manufacturers in the area.

State Fair Community College was a valuable resource to ensure the project had needed welders, precision machinists, industrial maintenance technicians and more. The College not only provided the training needed to develop the workforce but was instrumental in obtaining and managing the state incentive package to fund the project.

Nucor has quickly become a cornerstone of Sedalia and Pettis County. The job opportunities have lifted many families out of poverty and set generations up for success. Nucor infuses thousands of dollars into the community through direct giving and sponsorships of events, as well as volunteering. From building a large pavilion on the Missouri State Fairgrounds that is used for daily events, to building the outside airing yards for Retrieving Freedom, the organization is a community-minded company with a great culture.

This accomplishment was not completed by a single person, nor a single vote from City Council. This took years of preparation before the City had even heard of the name Nucor. Policies and procedures were put in place, infrastructure planned and built, leaders put in place and so much more. To quote Zig Ziglar, “Success occurs when opportunity meets preparation.” This rings so true in the economic development arena.

That lightbulb that needed to be screwed in … needed everyone!

Tom Oldham was elected to the Sedalia City Council in 2020 and serves as an MML Board Member. He is an active member of MML’s Economic Development and Human Resources Policy Committee and as vice president of MML’s Central Region.

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The Public Policy Of Economic Development

The phrase “economic development” involves a broad range of topics that routinely stimulate lively discussion and interest. Economic development is also an industry of its own with products, marketing, vocabulary, consultants and connectors. Successful economic development is achieved with the concerted actions of policy makers, community partners and businesses working together to support and grow the economic health of a specific area. It is a team sport. It is competitive!

Like individual competitors, the focus of the competition is not on others, but on understanding the strengths, weaknesses, opportunities and threats (SWOT) of self, or in this instance the community. The fundamental SWOT approach to understanding your community never goes out of style. Consultants will come and go but the approach is true. The focused activity of a community’s economic development work is identified through the sharing of perspectives from as many resources as possible.

Key stakeholders in the conversation include the local and regional businesses that create, retain and hopefully expand employment opportunities and investments. It is

valuable to ascertain what economic development needs look and feel like for them. The committed community leaders, including the elected and appointed officials, and economic development professionals, should contribute history, vision, and leadership to the conversation. The representatives of the local education ecosystem are important participants as their work contributes directly to the community's quality of life, community strength and workforce development programming. It is not easy to be open to listening to many other voices. Authentic leaders of economic development understand listening, sharing and strategizing with these key stakeholders, in large, small and continuous conversations, creating the opportunity to formulate community goals to move the economic development work forward.

The economic development industry thinks in terms of community product, community image, business retention and expansion, and industry attraction. In simpler terms: product, promotion and passion. It is important to recognize these public policy focus areas do not exist in silos but work in synergy, constantly connecting shared elements, seamlessly building on each other.

Community Product And Image

What is the community product? Elements of that focus include an inventory of the infrastructure of water, sewer, roads, broadband, highway access, rail or ports, mass transportation, the education ecosystem, workforce, green space, recreation, the service industry, retail, commercial, office and entertainment fabric of the community. What is the education ecosystem of the community in terms of K-12, junior college, career technologies, bachelor’s degree, and higher education? What efforts are being made towards workforce development? What housing opportunities are present to support specific workforces? How does the community provide for the interests and needs of all its members? The community product considerations are fundamental to the evolution of the community image. What picture is being

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painted? Then, ask the question “how might the product and image be improved and enhanced?” and the community’s public policy work will be revealed. Perhaps this means a bond issue to extend infrastructure or the building of a community center to enhance the community product. This work is an art and a science.

Business Retention And Expansion

What is the business retention and expansion work? Elements of that focus include identifying and/or creating resources for entrepreneurship, and regular visits with existing job creators to discuss successes, plans and prospects. Provide businesses with information and/or connections that may open opportunities for financial support, incentives, expansion or whatever you hear they might need. Be a partner. For cities, be a partner more than a regulator. Examine the city’s land use, planning and building regulations for health, safety and welfare accountability, and flexibility to reach “can do” solutions when issues arise.

Industry Attraction

What does the industry attraction work look like? The content of the other three focus areas contribute to the characteristics of the community’s business attraction decision-making factors. Those factors include location, hard infrastructure, business climate, soft infrastructure and quality of life. Depending on the type of industry being sought (distribution centers, back office, manufacturing, headquarters, medical, or research and development) the priority of these individual factors change. Strategies to prepare for business recruitment opportunities are to have immediately available information regarding the quality of life of the community, potential sites, status of infrastructure

at the sites, available workforce and area workforce training opportunities. Remember workforce data can be derived from the region. Think broadly and creatively when examining and gathering information and opportunities related to the recruitment decisionmaking factors.

In recruitment, there are other Missouri partners at the state level who are always working to strengthen the economies of Missouri and who are doing economic development work every day. Missouri Partnership is a public-private organization charged with business recruitment and marketing for the state of Missouri. The Hawthorn Foundation is a nonprofit founded to provide a forum for strategic new business attraction conversations with private funding for the Governor and state elected and appointed officials to travel and promote Missouri business. They also fund visits to other states to research best practices of similar public-private partnerships.

The University of Missouri Extension Program is also a valuable data resource. UM Extension has a HOMEGROWN program fostering entrepreneurship using Tapestry Segmentation. Economic data analysis based on household data points is utilized to assist in identifying a community’s demographic category. This segmentation approach identifies LifeMode groups to provide national standard insight into community demographics. In addition, it can be valuable to know who the statisticians say you are, and then the community can decide whether the category fits or needs clarification. The analysis provides information from which a community can build its own most accurate story. This tool is especially valuable for regional communities outside of metropolitan areas.

Incentives

It is important to note that use of incentives have not been a focus. Where does the topic of financial incentives fit in the conversation? It begins with a request for information from potential industry attraction projects, or when a company or developer starts examining more closely the scope and budget of a project. The project will be either revitalization or expansion of something existing, more intense redevelopment of existing or new development. Local incentives in Missouri often focus largely on revitalization and redevelopment projects, though new construction related to job creation has significant value for the community.

The Missouri Constitution creates the boundaries by which incentives are defined. The two primary boundaries involve the following principles: (1) Municipalities shall not lend credit or grant public money or thing of value to or in aid of a corporation, association or individual, with

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a few exceptions, like manufacturing, warehousing, and industrial development purposes, and public purposes, as determined by governing bodies and caselaw; and (2) Tax relief from taxation of lands, though only available for the purpose of reconstruction, redevelopment and rehabilitation of obsolete, decadent or blighted areas. These principles shape the character of Missouri development financing tools. Tax increment financing, sales tax reimbursement agreements and special taxing districts are programs by which new tax revenue generated from the project provides opportunity funding to the company or developer. Chapter 100, Chapter 353, and Land Clearance for Redevelopment Authority (LCRA) are programs by which property tax abatement provides to the company or developer operational benefits for the project.

Effective economic development can mean different things to the varied participants in the process; however, the shared desired outcome is the creation of business opportunities where community benefits are realized. It begins by establishing

community conversations with key stakeholders, defining the community product to be promoted, and identifying how that product might be improved. Communities can then understand their community image and identify how the community image might be enhanced. Implementation involves engaging with existing businesses for business retention and expansion strategies, exploration of the industry attraction opportunities, and steadfastly pursuing this important community building work.

Christine T. Bushyhead has worked in community and economic development leadership positions and on community and real estate development project teams for more than 30 years, with quite varied project and policy making experience, including elected council member. She established her law firm, Bushyhead, LLC Attorneys and Advisors, in 2015 and recently founded Effective Communities, Inc., to provide consulting services for community building and economic development conversations and initiatives.

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Probability-Based Community Surveys:

An Essential Tool For Economic Development

Every Missouri municipality has unique, innate economic strengths and weaknesses that will impact its economic development strategy. To increase the likelihood that an economic development plan aligns with community priorities, community input should be part of the conversation. While local government leaders, businesses and other community stakeholders may strongly support what appears to be a viable strategy to improve a municipality’s economic wellbeing, residents may not be so enamored. Instead of seeing increased revenue to local government, population growth and increased business activity, they may see increased traffic, increased crime, loss of trees and historic buildings, and threats to quality of life.

Engaging the public can take various forms. Common methods include qualitative approaches (e.g., community forums/workshops, focus groups) and “nonscientific” surveys where residents self-select whether to participate or not (e.g., online community engagement platforms). While these approaches can provide local officials with useful insights, there is no way to know if the feedback collected is representative of the entire community. Public input that relies solely on these methods can be misleading and could jeopardize the success of a municipality’s economic development plan.

To avoid this potential problem and to ensure that resident feedback accurately represents the entire community — not just the vocal few — public engagement should include a community survey administered using probability-based sampling methodology. Probability samples rely on random sampling techniques that give every eligible resident an equal or known chance of being selected to participate in the survey. This eliminates concerns about self-selection bias.

The singular advantage of probability sampling is that survey findings can be generalized back to the community with a high degree of confidence (e.g., 95% confidence interval) and accuracy (e.g., +/- 4% margin of error). Consequently, when seeking to tap the collective wisdom and insights of residents during the strategic planning stage, local government leaders should consider conducting a probability-based community survey.

Benefits Of A Probability-Based Community Survey Using A Single Survey Template

Using a single survey template with a combination of standard and customized questions, a probability-based

community survey offers local governments an accurate and affordable way to assess resident feedback for purposes of:

• Economic Development

• Service Improvement

• Strategic Planning

• Priority Setting

• Budgeting

Using a core set of standard questions about local government services, quality of life, as well as economic and community-related topics applicable to all municipalities, it is possible to create statewide benchmarks that allow local government officials to see if their community ratings are higher, lower or about the same as the statewide norms. Knowing that your police department received a positive rating by 70% of residents is one thing, but knowing that the statewide norm is 85% (or 55%) is quite another.

Statewide Benchmarks

Statewide benchmarks are superior to regional and national benchmarks because all municipalities within a state operate under the same state laws, bureaucratic regulations and judicial rulings. In contrast, regional and national benchmarks intermingle communities that may have very different political, social and economic environments, not to mention major disparities in population size, culture, natural resources, etc. Statewide benchmarks, on the other hand, provide an apples-to-apples comparison.

Custom Questions

In addition to core questions for benchmarking purposes, a probability-based community survey can incorporate custom questions tailored to address a community’s unique needs and issues, e.g., economic development.

Track Results Over Time

If conducted on a regular basis, a probability-based community survey with a core set of standard questions has the added benefit of identifying trends — both positive and negative. Scarce resources can be directed towards areas where community satisfaction is declining while maintaining services and policies where satisfaction is high or improving.

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FEATURE Review

Accuracy

Survey findings based on probability-based sampling methodology are extremely accurate and can be generalized back to the entire community with a high degree of confidence. Accuracy is further enhanced when data is collected using a hybrid approach that combines a mail survey with an online option. Due to extremely low response rates associated with telephone surveys, the mail/online hybrid approach is now the industry standard.

Crosstab Analysis

When community opinions are assessed using probabilitybased sampling techniques, then powerful inferential crosstab statistical procedures can be used to determine if significant and meaningful differences of opinion exist based on key demographic and geographic characteristics.

Affordable

Using a single survey template with a core set of standard questions can significantly reduce professional costs associated with the design and administration of a survey. Reduced costs provide an opportunity for smaller municipalities to take advantage of probability-based community surveys.

Conclusion

Whether you are a municipality in need of statistically valid community input to help align your economic development strategy with community priorities, or a municipality interested in a community/citizen survey that benchmarks and tracks public opinion on a wide array of important topics and issues, a probability-based community survey is a valuable tool.

Mark Ellickson, Ph.D. (Political Science/Public Administration), is president of Opinion Research Specialists (ORS), a full-service survey research consulting firm located in Springfield, Missouri. ORS has been designing and conducting community surveys throughout Missouri since 1991 and is staffed by professionals (PHDs and MAs) with years of applied experience. Based on input from local government officials, ORS created The Missouri Municipal SurveyTM that is a probability-based community survey designed exclusively for Missouri municipalities seeking scientifically valid feedback for decision-making purposes. Please visit ORS-MO.com for more information about Opinion Research Specialists and The Missouri Municipal SurveyTM. Dr. Ellickson can be reached at mellickson@ellicksonresearch.com or (417) 889-4506.

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Opinion Research Specialists, LLC Springfield, Missouri • Probability-Based Community Survey • Accurate and Reliable Statewide Benchmarks • Custom Questions • Affordable • Designed for Missouri Municipalities Learn more at ORS-MO.com Core Topics for Statewide Benchmarks • City Services • Public Safety • Quality of Life • Housing • Education • Economy • Parks & Recreation • Health & Wellness • Civic Vitality

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Community Development Block Grants

A variety of funding opportunities to help strengthen Missouri communities are available through the Missouri Department of Economic Development (DED). Encouraging growth by supporting businesses, industries and communities, including assistance in developing a talented and skilled workforce, DED offers grant dollars in several different departments as part of the overall initiative to help Missourians prosper. One of these is through Community Development Block Grants.

What Are Community Development Block Grants?

The Community Development Block Grant (CDBG) program is one of the areas where cities and counties can apply for assistance to help address local health and safety concerns, economic development infrastructure projects, water/wastewater enhancements and repair, public facility improvement, disaster recovery and more.

Established by the Housing and Community Development Act of 1974, the CDBG program is funded by the U.S. Department of Housing and Urban Development (HUD) and distributed by DED to non-entitlement cities and counties (under 50,000 population in cities/under 200,000 population in counties). To receive a CDBG grant, the activity proposed must meet one of three national objectives:

1. Benefit low-to-moderate income (LMI) persons.

2. Aid in prevention of slum and blight.

3. Meet an urgent need.

What Is The Consolidated Plan?

Currently, the Missouri CDBG program is in the process of being rebuilt in conjunction with the writing of the 2023-2027 Consolidated Plan that is a required document as part of the planning process for states to receive the funding.

Like the cities and counties that receive the funding from the states, states have to meet several requirements to receive the funds for distribution. First and foremost, the consolidated plan must be written every five years, outlining how the program will operate over the duration of that time.

While each state is allowed to build their own program, there are statutory

and regulatory parameters HUD requires to be outlined in the consolidated plan. This includes deciding how the funding will be distributed (method of distribution), setting priorities for funding categories, and identifying the anticipated outcomes of the funding investments. States are also responsible for establishing financial management and developing processes for record keeping, reporting, monitoring auditing and closeout systems for their program, and they must ensure grant recipients remain compliant through the process. All of this must be included in the consolidated plan and the plan must be approved by HUD before funds will be dispersed.

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What Is The Consolidated Plan Process?

The current CDBG program is operating under the 2017-2022 Consolidated Plan. Preparations for the 2023-2027 plan began in August 2022, beginning with stakeholder meetings. Stakeholders included other state of Missouri departments that are a part of the full, overall consolidated plan submitted to HUD. These agencies include:

• Missouri Housing Development Commission that operates the HOME, Emergency Solutions Grant and National Housing Trust Fund programs;

• Missouri Department of Health and Senior Services that operates the Housing Opportunities for Person with Aids Program.

Monthly meetings are held with these partners throughout the planning process, though each of the departments also hold their own individual meetings and public engagements.

For the 2023-2027 CDBG program, public engagements began in September in four different areas across the state, educating participants, mostly representatives of cities, counties and regional planning commissions. These meetings provide education about the current activities the CDBG program can fund and the options available for the selection and implementation process. This year, DED decided to start the planning process from scratch in

efforts to better shape the program to better address communities and their needs.

Since the September public engagement meetings were held, a survey was put together and posted on the DED website. The survey that closed on Nov. 11, 2022, sought input on where communities would like to see the funds distributed and how projects were awarded.

Attending one of the upcoming public engagement sessions is the best way to provide additional feedback. Contact Debbie Feeback, chief development officer at debbie.feeback@ded.mo.gov or Brandon Jenson, program manager, at brandon.jenson@ded. mo.gov to provide comment or with questions about the CDBG program or planning process.

16 theReview January/February 2023
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If a city or county would like to provide additional input, there is still time!

Two application categories are being rebuilt for the next five years based on public feedback: Industrial Infrastructure and Downtown Revitalization. The recent survey data indicates industrial infrastructure, economic development, public facilities and housing rehabilitation are top priorities for many cities and counties.

After the survey, DED hosted a second round of public engagements, sharing the data from the survey, to show a summary of how the future program may be aligned. A draft consolidated plan will be prepared, compiling all partner agencies’ information, and then posted on the website for a 30day public comment period. This is tentatively planned for February 2023. Any comments received will be considered, discussed with partner agencies, and a final draft document will be submitted to HUD by March 31, 2023.

What Are Next Steps?

If a city or county would like to provide additional input, there is still time! Attending one of the upcoming public engagement sessions is the best way to provide additional feedback. Contact Debbie Feeback, chief development officer at debbie.feeback@ded.mo.gov or Brandon Jenson, program manager, at brandon.jenson@ded.mo.gov to provide comment or with questions about the CDBG program or planning process.

Brandon Jenson, AICP, is the program manager for the state of Missouri's Community Development Block Grant program. He previously served as the chief community engagement and planning officer. His work includes ensuring compliance across all CDBG funding streams as well as internal and external engagement opportunities to highlight the successes and opportunities offered by the program.

Missouri’s municipalities and utilities are reevaluating capital improvement plans to advance critical infrastructure projects. Combining today’s financial backing with design‑build delivery makes now an opportune time to pursue your projects. To learn how to capitalize on the opportunities, listen to our webinar at burnsmcd.com/MML112022

www.mocities.com 17
Now is the time to build.
Without Leaving Your Office Or Home! www.mocities.com Learn more at: WEBINARS Missouri Municipal League
Quality Training

10 Tips: Retail Real Estate Tip Sheet

Community leaders and economic development staff wear many hats, making it difficult to be an expert in every part of community development. This guide contains a cheat sheet for items to consider when attracting new retail, restaurant, grocery and hospitality businesses to your city.

Tip 1 – Know Your Trade Area And Perfect Your Elevator Pitch

• Be informed, know what your audience (e.g. tenant rep broker, retail executive, developer) wants and needs.

• Understand that data starts the decision-making process, but the art of real estate and human input ultimately have the final say. Once you clear the demographic hurdle, it comes down to an array of real estate attributes and conditions that will ultimately determine if a retailer completes a deal or not.

• Know who your market is today, as well as who you aspire to be.

• Be concise with your outreach and present only the facts.

• Learn how to master the five-minute phone call and two-line email.

Tip 2 – Understand Your Market Weaknesses And Deficiencies

• Look inward and heavily scrutinize your strengths and weaknesses. If your population is not exactly what it needs to be in order to recruit specific types of businesses, but you have a 10% growth rate and above-average household incomes, emphasize the strong growth rate and income.

• Perform a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis and be very critical. If you know where your weaknesses are you can put a plan together to fix those issues. If the crime rate is an issue in your community, ensure your city council is holding the right people accountable to execute a plan to decrease crime.

• You cannot magically increase your population by 5,000 people overnight, but you can help make your market a place where a business sees potential.

Tip 3 – Target The Right Retailers

• In Tip 1, we talk about who you aspire to be as a community. Today a Dollar Tree might be a great retailer to enter your market, but you cannot make the jump from Dollar Tree to Target overnight.

• Demographics are not the end all be all, but you must understand and define the “bracket” of retail where your market currently fits, and you need to build your base of any obvious retail that fits into your current market that may be missing.

Tip 4 – Reach Out To Retailers In Surrounding Markets For Relocation Opportunities

• It is not out of bounds to reach out to retailers in competing or neighboring markets and simply ask if they are happy with their location. Maybe they are in a lease dispute or have outgrown the physical limitations of their site. When a broker is canvassing an area for a lease assignment, it is common practice to reach out to tenants in the market to ensure they are happy in their current location.

18 theReview January/February 2023
FEATURE
Review

Tip 5 – Land Bank Good Property With Retail Potential

• If you have the opportunity and ability as a municipality to purchase well-positioned properties to essentially land bank them, it is certainly one of the better ways to have some control over the future growth of your community.

• My advice is to purchase this land at a fair value at the very most, try to break even on it when you sell, or, for the right project, use the land to help incentivize a deal.

Tip 6 – Define

On Policies

Incentives And Cut the Red Tape

• If you have a moratorium on drive-thrus, that will halt any deal with a Quick Service Restaurant (QSR) or some fast, casual restaurants given the need for drivethrus during the pandemic

• Pitch in on infrastructure improvement and incentives – it helps!

• Incentives do not have to be bags of cash. Sometimes all a development needs is for the city not to put up so much red tape to get in the path of progress.

• Do not get in the way of progress.

• Streamline your development and compliance regulations:

• Come up with an A to Z development guideline for your community.

• Do not have an over-the-top sign ordinance.

Tip 7 – Promote “Value Add” Opportunities In Your Market

• We are overstored in the U.S. and savvy retailers are right sizing their footprints. With construction costs soaring and rents staying relatively flat, the value-add proposition of rehabilitating existing buildings or shopping centers will be coming more and more into favor.

• If there is a run-down shopping center in your market, see if the owner will sell the center.

• Look for the “Higher and Best-Use Corner.” Think outside the box, not just about shiny new ground up development. Focus on well-positioned real estate assets within your community that have deferred maintenance and seem neglected. These properties could be key targets for investors to redevelop for a better tenant mix.

Tip 8 – Focus On Sustainable Retail And Mixes Of Use

• The future of retail development will be anchored by a variety of uses including medical, municipal facilities (e.g. City Hall), service-based users and community gathering places.

• Consumer preferences have changed and indoor shopping no longer embraces those preferences. You want to focus on users and developments that will be sustainable and stand the test of time.

Tip 9 – Target Franchisees

• For franchised businesses, oftentimes the decision maker is the franchisee. Contacting the real estate director, tenant rep or franchise director is useful; but, consider going directly to the source and contacting the franchisee directly. This contact information is hard to come by and takes some work but often pays off.

• Reach out to franchisees in neighboring markets. You never know when someone has outgrown their space or does not plan to renew a lease.

Tip 10 – Focus On Quality Of Life

• Understand what you can control and act on it.

• Have a solid grasp on what people are saying about your community and do what you can to make it a great place to live.

www.mocities.com 19

• Make your city a place a small business owner would like to move their family and operate a business.

For additional resources on retail real estate and community advancement, visit https://www. retailstrategies.com/resources/.

John Tiedt is a business developer for Retail Strategies where he works with municipal leaders in Missouri to craft and execute retail recruitment and community development strategies.

Prior to Retail Strategies, John worked for GovDeals in several different roles, where he partnered with local governments to sell their surplus assets. His unique background with experience in both government and sales brings a refined approach and perspective to the business development team.

20 theReview January/February 2023
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Devine committed to serving the communities where we live and work The choice of a lawyer is an important decision and should not be based solely upon advertisements. 714 Locust Street • St. Louis, Missouri 63101 phone: 314.621.2939 www.lashlybaer.com Baker Tilly Municipal Advisors, LLC is a registered municipal advisor and controlled subsidiary of Baker Tilly US, LLP, an accounting firm. Baker Tilly US, LLP trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2021 Baker Tilly US, LLP Connect with us: +1 (816) 333 7200 | bakertilly.com/MunicipalAdvisory Let’s face the future, together. Municipal bonds Debt management Post-issuance compliance Operational finance Long-range financial planning Housing and economic development Capital improvement planning Investment services Executive recruitment Organizational management Classification and compensation advisory Community surveys Referendum strategies Strategic planning
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LOCAL GOVERNMENT Review

CITY OF ASHLAND: Lakeside Ashland And Ranken Technical College Ashland Campus

Opened in September 2022, Lakeside Ashland is an outdoor event venue featuring a 70-foot drive-style movie screen that doubles as an outdoor amphitheater for other entertainment options. The facility also includes a full-service concession stand/restaurant and a grass seating area for moviegoers to enjoy the outdoor venue. Future phases include the development of the lake into a swimming area with adjacent pickle ball courts, full service restaurants, and a hotel/indoor event space. Learn more at https://www.lakesideashland.com/.

Breaking ground in 2022 with a planned opening in fall of 2023, Ranken Technical College, in partnership with Southern Boone County R-1 School District, the city of Ashland, and the U.S. Economic Development Administration (EDA) is constructing the Central Missouri Workforce Development Center. This will be a construction trade, medical services, information technology and industrial engineering technology training center. The EDA has awarded a $4.5 million grant to make the project possible. It is anticipated that the campus will create 163 jobs and inject $9 million in private investment into the community.

CITY OF BELTON: Southview Commerce Center

Belton’s all new Southview Commerce Center, developed by NorthPoint Development, is a state-of-the-art flex-industrial park with more than 2.3 million square feet of real estate with three fully leased buildings: Progress Rail, a supplier of railroad and transit system products and services, became operational in 2020; Chewy, Inc. the largest online pet retailer, began fulfilling orders in 2021; and BoxyCharm, a BFA company, began shipping beauty subscription boxes in 2022.

Southview Commerce Center’s fourth building welcomes Hillman Group Inc., a leading North American hardware company, that recently announced tenancy, bringing 120 new jobs. The building still offers 200,000 square feet of flex-industrial space available for a future co-tenant.

The fourth building also houses the Training & Technical Center of Cass County, a collaboration between the city of Belton, West Central Missouri Community Action Agency, Belton School District #124, Metropolitan Community College and Northpoint Development. All entities are working together for the purpose of workforce development to serve the employers, citizens and students of Belton and Cass County.

With more than 1,600 new jobs, NorthPoint Development saw an opportunity to construct an additional housing option, The Encore, a 322-luxury unit apartment complex located one mile from the Southview Commerce Center.

www.mocities.com 21

CITY OF CREVE COEUR: 39 North Innovation District

39 North, a 600-acre innovation district for plant and life sciences in Creve Coeur, has several projects underway to physically transform the district. These projects were envisioned in the district’s master plan, developed by regional stakeholders including the St. Louis Economic Development Partnership, Danforth Plant Science Center, Bayer, St. Louis County, the city of Olivette, and the city of Creve Coeur.

Old

A major interchange reconfiguration project was completed during summer 2022. This $5 million project turned the existing cloverleaf interchange into a folded diamond interchange with enhancements improving connectivity for cars, bikes and pedestrians.

A $2.4 million intersection reconstruction project will begin this year, implementing the first phase of the Old Olive Street Road redesign project converting the road into a destination corridor.

As 39 North undergoes these transformative projects, the bioscience startups within the district continue to grow. Benson Hill, an agriculture technology firm, completed its new 50,000-square-foot research facility in 2021, located less than a mile from its 160,000-square-foot headquarters built in 2020. CoverCress, Inc., another ag-tech startup in the district, recently launched a new cash crop and was acquired by Bayer in 2022. Total capital investment in the 39 North district has exceeded $64 million since 2017.

CITY OF CRYSTAL CITY: James Hardie Manufacturing Facility

James Hardie, a world leader in fiber cement home siding and exterior design solutions, plans to build its newest manufacturing facility in Crystal City, Missouri. Crystal City is a rural community of 4,800 located 30 miles south of St. Louis. The new 1.25 million-square-foot facility will create nearly 240 new jobs that pay an average of $34 per hour.

James Hardie has manufactured building materials for more than 100 years. The new facility will be built to keep up with the ever-increasing demand for Hardie® fiber cement siding, soffit and trim products.

James Hardie employs approximately 5,200 people across the world. This is their first location in Missouri.

“The city of Crystal City was founded in 1871 as a manufacturing town for the purpose of making glass,” said Jason Eisenbeis, city administrator for Crystal City. “Over 150 years later, we’re proud to continue our history and tradition of being a manufacturing town by partnering with James Hardie for their newest plant in North America. James Hardie’s investment in Crystal City will bring generational job opportunities for decades to come.”

Ideas transform communities

Building strong communities is at the heart of our endeavors. We’re proud to support the Missouri Municipal League. hdrinc.com

22 theReview January/February 2023
Olive and Lindbergh Intersection Reconstruction Project.

CITY OF GRANDVIEW: I-49 Outer Road Conversion

Fifteen months, $15 million, and three roundabouts later, Grandview’s largest infrastructure project in the City's history is now open and operating, increasing access for drivers and pedestrians alike.

The I-49 Outer Roads Conversion from one-way traffic to two-way traffic became reality after a 2012 study outlined the need for two-way traffic along the outer roads and its benefit to the City’s economic development. After securing nearly $12 million in grant funding, the project broke ground in August 2021 and held its ribbon cutting in November of 2022.

“This project has been a decade in the making, so it’s awesome to finally see drivers going in both directions,” explained Grandview Mayor Leonard Jones. “It’s also awesome to see all the new construction that’s come along with increased access.” A brand-new Popeye’s opened in November along the East Outer Road and Main, while a flagship FavTrip convenience store is also underway nearby.

Grandview is divided by I-49 that handles about 90,000 cars a day. The one-way traffic along the outer roads made driving to the other side of the interstate a challenge. “This community is growing,” added MoDOT Engineer Ericka Ross, “and this project was essential to help with that growth by creating safer and more efficient connections to the community.”

Besides making it easier for drivers to access the many businesses along I-49, the project added miles of sidewalk for pedestrian safety.

The project also made MoDOT history as the first design-build project from a city, where it was designed and constructed at the same time.

Join the more than 900 partners that have chosen to work with us to help protect their homeowners.

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Contact us to learn more:

Emilie Zalfini, Regional Director 412.527.2511 • Emilie.Zalfini@homeserveusa.com www.NLC.org/serviceline

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www.mocities.com 23
No one can predict when service lines will fail. Over 240,000 water main breaks occur each year in the U.S.* There are more than 800,000 miles of public sewers susceptible to structural failure.*
24 theReview January/February 2023
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CITY

OF

OSAGE BEACH:

Preserve

At Sycamore And The Oasis at Lakeport

The city of Osage Beach is the heart of the Lake of the Ozarks, centrally located in Missouri, and is recognized as both a retail and tourist destination. Investments in Osage Beach by developers and new businesses continue to see growth, enduring an upward trend since 2012. The City’s first retail center supported by Tax Increment Financing in mid-2000, the Prewitt’s Point shopping center, was concluded in 2021, ahead of its 23-year TIF life due to its success, that continues to bring growth of jobs and services to Osage Beach. Promotion of private investment through incentives have strategically continued with other projects over the years. The City currently has nearly 275 acres of various retail and other projects, including residential housing, assisted living and skilled nursing facilities, incentivized with economic development tools. Two exciting new projects have recently been announced for Osage Beach, the Preserve at Sycamore and the Oasis at Lakeport.

The Preserve at Sycamore, a $60 million 268-unit apartment community that will provide much-needed housing expansion in Osage Beach, has been approved by the board of aldermen to receive RSMo Chapter 353 and Chapter 100 incentives. The Oasis at Lakeport, a project recently announced by the developer, is a $300-million family resort and entertainment district to be developed on the beautiful Lake of the Ozarks as a premier Midwest tourist destination offering amusement rides and attractions, hotels, restaurants and an amphitheater, marina and boardwalk. The City is working with the developer on applicable incentive packages.

CITY OF POPLAR BLUFF: True Manufacturing Facility

Missouri-based commercial refrigeration manufacturer True Manufacturing will build a new 400,000+-square-foot facility in Poplar Bluff, investing $21 million and creating 175 new jobs in the area. The City received an Industrial Infrastructure grant from CDBG for $1.5 million to provide public infrastructure to the site including a road, water and sewer mains and stormwater control.

With more than 3.7 million square feet across its Missouri manufacturing facilities, True Manufacturing is committed to products that are designed, engineered and manufactured in the United States. The company’s new facility will enable expanded production of its current line of products and occupy all 54 acres of Poplar Bluff’s newest industrial park.

“I’m excited and grateful to True Manufacturing for selecting Poplar Bluff as the home of their new manufacturing facility,” said Steve Halter, president of the Poplar Bluff Chamber of Commerce. “They are excellent to work with, produce quality products, and are committed to their employees. Poplar Bluff has a hardworking workforce who knows the value manufacturing brings to a community, and I look forward to working with Steve Trulaske and his team for many years to come.”

www.mocities.com 25

CITY OF ROLLA: Missouri S&T Missouri Protoplex

Missouri University of Science and Technology’s newest initiative to bolster the state’s economy is the Missouri Protoplex, a 116,000-squarefoot facility designed to help small- and medium-sized manufacturers stay competitive in the global marketplace. Funded through a combination of private, state and federal support, the Protoplex will leverage Missouri S&T’s research expertise in advanced manufacturing and other fields to provide the research and development, educational, and workforce training support needed for the state’s manufacturing sector to flourish. This R&D expertise is important for companies unable to conduct their own research, prototyping or product development.

The facility is scheduled to open in September 2025. It will feature high bay space, lab space, conferencing and office space, and other amenities for Missouri businesses. The Protoplex also will serve as the anchor of a new Manufacturing Technology and Innovation Campus adjacent to the Missouri S&T campus in Rolla.

The Missouri Protoplex is supported through $46.25 million in state and federal support and $50 million in private funding from the Kummer Institute Foundation, a not-for-profit created to support Missouri S&T initiatives. For more information about the Missouri Protoplex and the Manufacturing Missouri Ecosystem, please visit mme.mst.edu.

26 theReview January/February 2023
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Master Municipal Clerk

Congratulations to Sheryl Morgan, city clerk with Blue Springs and MML Board of Directors member, for earning the prestigious Master Municipal Clerk (MMC) designation from the International Institute of Municipal Clerks (IIMC). To qualify for the MMC designation, a candidate must first earn the Certified Municipal Clerk designation (CMC) as well as commit to lifelong learning through extensive advanced education programs and significant professional contributions to their community. Those that achieve the MMC designation have demonstrated that they have actively pursued educational and professional activities and have remained informed of current socio-political, cultural and economic issues affecting local governments and municipalities.

DNR Computer-Based Exams in 2023

Sustaining energy and water for life

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Commercial Litigation* Litigation - Municipal* Medical MalpracticeDefendants* Eminent Domain and Condemnation Law Municipal Law* Corporate Law* Land Use and Zoning Real Estate Law* Workers’ CompensationEmployers Condemnation

The Missouri Department of Natural Resources (DNR) is pleased to announce some exciting improvements coming for operator certification exams for drinking water, wastewater, and CAFO operators. As early as April 1, 2023, the department will begin offering computer-based certification exams, that will eventually replace paper and pencil exams. DNR recently contracted with Water Professionals International (WPI) for exam services. The contract will provide DNR access to exam material, and solve logistical and equipment hurdles by administering computer-based exams in testing centers already located around the state. For questions, contact DNR’s Operator Certification Unit at (573) 751-1600 or email opcert@dnr.mo.gov.

www.mocities.com 27 * Hamilton Weber LLC has been ranked a Metropolitan St. Louis “Best Law Firms” (2023 Edition) in six practice areas by U.S. News
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Members receive the MML Review magazine, e-newsletter, technical bulletins and legislative updates, as well as access to MML’s online library of sample ordinances, municipal survey results and more.

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Learn and network through conferences, training sessions, regional meetings, webinars and the MML Municipal Governance Institute.

28 theReview January/February 2023 Did you know MML serves as a united voice for more than 650 Missouri cities, towns & villages? Contact MML today to learn more about the valuable resources we offer!
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www.mocities.com 31 Piper Sandler has helped state and local governments of all sizes with municipal bond financings for over 50 years. Our team of experts takes the time to understand the unique needs of your community, form long-term partnerships and ultimately provide tailored solutions that meet your specific goals. We Know Missouri Municipal Finance $1.7 B Par amount for municipal bond financing in 2021 205 Municipal issues completed in 2021 No. 1 In the nation by number of municipal bonds completed in 2021 Source: Thompston Reuters, as of 1/19/2022 PiperSandler.com ©2022. Piper Sandler & Co., 800 Nicollet Mall, Suite 900, Minneapolis, Minnesota 55402-7036. 12/22 CM-22-1683 TODD GOFFOY +1 913 345-3373 Todd.Goffoy@psc.com MATT COURTNEY +1 913 345-3355 Matthew.Courtney@psc.com CHRIS COLLIER +1 314 726-7535 Chris.Collier@psc.com HANNAH SNYDER +1 913 345-3302 Hannah.Snyder@psc.com
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