MML Review Magazine

REVIEW

A U N I T E D V O I C E F O R M I S S O U R I M U N I C I PA L L E A G U E C O M M U N I T I E S

THE MISSOURI MUNICIPAL

January/February 2019

Economic Development Issue

Celebrating Success: Missouri Main Street Communities Medical Marijuana Development www.mocities.com Municipal GovernmentFAQ 101 |• Wentzville's Positive PolicingDowntown • Annual Conference Photos

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Missouri Securities Investment Program A Cash Management Program for School Districts, Counties, Municipalities and Other Political Subdivisions

The Missouri Securities Investment Program (MOSIP) is a comprehensive cash management program for school districts, counties, municipalities, and other political subdivisions. MOSIP was created in 1991 by the Missouri School Boards Association.

MOSIP offers its investors a professionally managed portfolio with competitive money market rates. MOSIP stresses maintaining safety, liquidity and yield as the primary investment objectives.

Administered by: PFM Asset Management LLC Sponsored by: Missouri School Boards Association • Missouri Association of School Administrators Missouri Association of School Business Officials • Missouri Association of Counties • Missouri Municipal League

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William T. Sullivan, Jr. 631.806.9470 cell sullivanw@pfm.com

Trish Oppeau 314.619.1792 direct oppeaut@pfm.com

Jason Glidden 816.642.8552 direct gliddenj@pfm.com

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Joshua Groff Client Consultant grofj@pfm.com

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Melissa Rodgers Client Service Representative rodgersm@pfm.com

77 West Port Plaza Drive • Suite 220 • St. Louis, MO 63146 • 1.800.891.7910 • www.mosip.org This information is for institutional investor use only, not for further distribution to retail investors, and does not represent an offer to sell or a solicitation of an offer to buy or sell any fund or other security.

Investors should consider the investment objectives, risks, charges and expenses before investing in any of the Missouri Securities Investment Program’s portfolios. This and other information about the Program’s portfolios is available in the Program’s current Information Statement, which should be read carefully before investing. A copy of the Information Statement may be obtained by calling 1-877-MY-MOSIP or is available on the Program’s website at www.mosip.org. While the MOSIP Liquid Series seeks to maintain a stable net asset value of $1.00 per share and the MOSIP Term portfolio seeks to achieve a net asset value of $1.00 per share at the stated maturity, it is possible to lose money investing in the Program. An investment in the Program is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Shares of the Program’s portfolios are distributed by PFM Fund Distributors, Inc., member Financial Industry Regulatory Authority (FINRA) (www.finra. org) and Securities Investor Protection Corporation (SIPC) (www.sipc.org). PFM Fund Distributors, Inc. is a wholly owned subsidiary of PFM Asset Management LLC.

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theReview January/February 2019

THE MISSOURI MUNICIPAL

January/February 2019; Volume 84, No. 1

CONTENTS Features 7 Celebrating Success: Missouri's Main Street Communities

by Gayla Roten

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12 City Of Wentzville: Downtown

Revitalization And Its Effect On Economic Development

by Dan R. Lang and Kara Roberson

16 Leveraging Municipal Cellular Site To Address Financial Needs

by Kenneth Saverin

19 Improving Your Community With Public-Private Partnerships

by NLC Service Line Warranty Program

21 Louisiana, Missouri: Continued

Growth And A Vibrant Community

by Marvin Brown

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Departments 4 President's Report 6 MML Legislative Update: A New Beginning

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News From The Bench: Considering The Right To Bear Arms

by Brian Malone

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Economic Development Around The State

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FAQ: Medical Marijuana In Missouri

by Padraic Corcoran

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MML Calendar Of Events/ Members' Notes

Cover Photo: Washington, Missouri.

Photo courtesy of Chimera Creative Works, Washington, Missouri.

MISSOURI MUNICIPAL LEAGUE BOARD OF DIRECTORS President: Council Member Chris Lievsay, Blue Springs: Vice President: Tim Grenke, Mayor, Centralia; Eric Berlin, City Administrator, North Kansas City; Rob Binney, Council Member, Lee's Summit; Paul Campo, Attorney, Williams and Campo, PC; Chuck Caverly, Councilman, Maryland Heights; Adam Couch, Mayor, Odessa; Michele DeShay, Mayor, Moline Acres; Sally Faith, Mayor, St. Charles; DJ Gehrt, City Administrator, Platte City; Barry Glantz, Mayor, Creve Coeur; Debra Hickey, Mayor, Battlefield; *Bill Kolas, Mayor, Higginsville; *Norman McCourt, Mayor, Black Jack; Marcella McCoy, Finance Director, Harrisonville; Susan McVey, Council Member, Poplar Bluff; Cindy Pool, Council Member, Ellisville; *Immediate Past President Matthew G. Robinson, Mayor, Hazelwood;*Kathy Rose, Mayor, Riverside; *Carson Ross, Mayor, Blue Springs; Samuel Snider, Alderman, Willard; Scott Wagner, Council Member, Kansas City; *Gerry Welch, Mayor, Webster Groves; Jeanie Woerner, City Clerk, Raymore *Past President AFFILIATE GROUPS Missouri City Management Association; City Clerks and Finance Officers Association; Government Finance Officers Association of Missouri; Missouri Municipal Attorneys Association; Missouri Park and Recreation Association; Missouri Chapter of the National Association of Telecommunications Officers and Advisors; Missouri Chapter of the American Public Works Association; Missouri Association of Fire Chiefs EDITORIAL Laura Holloway / Editor Lholloway@mocities.com Dan Ross, Richard Sheets, Lori Noe Contributing Editors The Review January/February 2019; Volume 84, 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

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President's Review

by Chris Lievsay, Council Member, Blue Springs, and MML President

Letter To Governor Parson Last month, I sent the following letter to Missouri Governor Mike Parson. For more details regarding the South Dakota vs. Wayfair decision mentioned below, read the MML Legislative Review on page 6 of this issue. I look forward to the many ways we can all work together in 2019!

Governor Parson, As the incoming President of the Missouri Municipal League, I want to thank you for your efforts to connect with local government officials at the outset of your administration. The value you placed on establishing those relationships by inviting engagement in the process right from the beginning was greatly appreciated, and we look forward to continuing that close relationship into the future. It is in that spirit of cooperation that I wanted to take a minute to request your support for the issues most important to local government leaders as we head into the historic 100th session of the Missouri General Assembly.

The issues of out-of-state sales and the implications of the U.S. Supreme Court's South Dakota vs. Wayfair decision are complicated, but have major implications on both the state and local levels. The Court has agreed with what many of us on the local The issues level have said for years, that these huge online corporate retailers should have to play of out-of-state by the same rules as the small businesses in our communities. Now, we have the tools to make that happen. The Missouri Municipal League has a measured approach that sales and the is consistent with current Missouri constitutional requirements, and brings the state statutes into line with a workable plan that will match the Wayfair ruling. Specifically, implications of the we would encourage the Legislature, with your support, to allow for collection of taxes Wayfair decision on out-of-state sales under the use tax provision, to make changes in the use tax ballot language so it is more clear to the average voter what they are asked to approve, and to are complicated, establish a database of each political subdivision’s use tax to make it easier for out-ofstate retailers to be in compliance with the changes. Additionally, we would discourage but have major any attempt to tamper with at least the local government portion of these funds in a implications on way that might be considered revenue neutral, and let those funds be remitted directly to the local governments without hindrance. both the state and Another important issue local governments are currently dealing with is the inability local levels. to hold those with court summons accountable to attend their court appearances. As a former sherriff yourself, I am sure you can understand how allowing individuals to completely disregard the judicial system without any consequences creates a huge gap in the process of justice, and is not sustainable for very long. Municipalities and their courts are simply asking for a reasonable tool that can be applied to those who blatantly avoid dealing with the results of their choices. Due to your extensive experience in law enforcement, having your support on this issue will go a long way in moving the Legislature toward meaningful change that will continue to keep our streets and cities safe.

Finally, there are issues that are specifically of interest to me, that do not currently require legislation, but simply leadership.

With the events surrounding Ferguson a few years ago happening right here in Missouri, we should be leading the charge on racial unity and ensuring everyone has equal opportunity to be successful in our state. More than any other elected officials, those of us on the local level are uniquely situated to be advocates for all sides, as police officers are often city employees that we have a responsibility to protect and ensure their care, but the residents who are at times expressing concerns are also our constituents who we have a responsibility to serve and ensure their safety. There are no easy solutions, but we will never be able to capture the reality of a future with equal opportunity for all unless we invite sincere discussion and civil discourse now.

The Missouri Municipal League has worked hard in recent years to be an approachable partner on all issues related to local government, and not just obstruct those things we don’t like. We look forward to working with you and the Legislature on these and other issues in the coming session, and would value any feedback. You have our respect and sincere gratitude for your support.

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LEGISLATIVE Review

by Richard Sheets, MML Deputy Director

A New Beginning The First Session of the 100th General Assembly convened Jan. 9, 2019. Optimism is running high in the halls of the Capitol in Jefferson City for a productive and harmonious 2019 legislative session. Rep. Elijah Haahr (Greene County) is the Speaker of the House. Rep. Rob Vescovo (Jefferson County) is the House Floor Leader. In the Senate, Sen. Dave Schatz (Franklin County) is the President Pro-Tem, with Sen. Caleb Rowden (Boone County) as Senate Floor Leader.

Pre-filing of bills began on Dec. 1, 2018, in both the House and Senate.

More than 2,000 are expected to be filed before the closing of bill filing March 1.

MML Priority Legislation: Collection Of Taxes On Internet Sales Capturing local taxes on out-ofstate purchases has long been a goal of the Missouri Municipal League.

On June 21, 2018, the United States Supreme Court changed the rules for collection of sales taxes by Internetbased retailers. In its decision in South Dakota v. Wayfair Inc., the Court ruled that states can require out-of-state sellers to collect state sales tax on their sales, even if the seller does not have a physical presence within the state.

Legislation drafted by the MML and sponsored by Senator Sandy Crawford amends Missouri’s Use Tax Law to require use tax collection by out-ofstate sellers who have no physical presence in Missouri, but meet the economic threshold approved by the U.S. Supreme Court in the South Dakota v. Wayfair decision.

The South Dakota law at issue in the Wayfair decision imposed a sales tax, rather than a use tax on out-ofstate sellers. Because of significant differences between the South Dakota

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and Missouri tax systems and laws, the proposed MML legislation applies only to use tax collection.

Why A Use Tax Instead Of A Sales Tax? • In Missouri, unlike in South Dakota, sales and use tax rates are not uniform. The sales tax rate is higher than the use tax rate in many local jurisdictions in Missouri. If Missouri were to take the South Dakota approach and impose sales tax rather than use tax on out of state sellers, these sellers would pay tax at a higher rate than under current law, in effect, they would experience a tax increase.

Increasing taxes without a vote of the people potentially runs afoul of Missouri’s Hancock Amendment (Mo. Constitution Article X, Sections 18(e) and 22), and could also result in political opposition to such legislation.

• The Missouri Constitution prohibits an increase in the taxable base of the sales tax and use tax.

Mo. Constitution Article X, Section 26 (Passed in 2016). Although sales tax and use tax are designed to be complementary taxes, they are in fact separate and distinct taxes with separate tax bases. The South Dakota approach would increase the base of Missouri’s sales tax, that could trigger a challenge under this provision of Missouri’s Constitution.

• South Dakota’s sales tax is imposed on a destination basis. Out-of-state sellers collect the sales tax imposed at their customer’s location in South Dakota. In Missouri, sales are deemed to occur at the seller’s place of business for local sales tax purposes. Section 32.087.12, RSMo. Out-of-state sellers would not be subject to local sales tax in Missouri unless Missouri changed its sales tax regime to impose sales tax based on the purchaser’s location.

• Several other sections of the Missouri sales tax laws must be amended for Missouri to adopt the South Dakota approach. This would add to the complexity of the legislation and thereby increase the chances the legislation could lead to unintended consequences or attract additional opposition.

In addition to imp osing the Wayfair economic threshold for use tax collection, MML’s legislation also includes provisions to: • Simplify and clarify ballot language for local use tax propositions.

• Ensure that use tax rate information is available via an online database maintained by the Missouri Department of Revenue and provide a safe harbor for sellers relying on this information.

Although the Legislature has a heavy agenda ahead of them, many bills of municipal interest have already been filed. Please be alert to MML’s "Capitol Report" and "Legislative Alerts" notifying you when to contact your legislators.

Keep the League informed of your legislative activities by notifying us when you are meeting with legislators and if you plan to testify on an issue. Also, send copies of legislative correspondence and replies to League headquarters.

Cities are strongest when they speak with a unified voice. You have the ability to show legislators how decisions they make in Jefferson City impact your community. Together, we can strengthen the voice of cities, keeping decisions on local issues at the local level.

Registration Now Open!

MML Legislative Conference February 12-13, 2019 Jefferson City, Missouri www.mocities.com

FEATURE Review

by Gayla Roten

Celebrating Success: Missouri's Main Street Communities Missouri Main Street This research C onnection (MMSC) approach led to the recently celebrated its structure of the report, 1 0 t h an n ive rs ar y by with impressive results measuring the success of learned. the Main Street program The numbers below across Missouri. The real reflect the activity in success was the economic Missouri Main Street impact in Main Street programs from 2006 communities. After a through third quarter decade of hearing great 2018. Over the last 12 stories and watching years, Missouri Main economic numbers Street communities intensify across the board, have: it was time to recognize • Inve s t e d m ore the increased economic than $906 million, growth, hundreds of including more than historic renovations; and Washington, Missouri, is a Misssouri Main Street National and State Accredited $695 million in private the surge of new businesses Community. In 2012, the City was a Great American Main Street Award winner. investment; and new jobs. It was time to celebrate together!

• Created more than 3,700 net new jobs in Main Street districts; Each year, MMSC gathers basic data from its member communities. The data from each of those years showcases • Established 759 net new businesses; the success of Main Street programs, but leaders wanted to • Expanded more than 200 businesses; know how that apparent success fit into a larger context.

• Opened more new businesses than they closed, even The organization commissioned a study, “Measuring the through the Great Recession, far outperforming the Economic Impact of Main Street in Missouri Communities.”1 statistics both statewide and nationally; Main Street is economic development in the context of • Seen more than half of net new jobs gained in Main historic preservation and is about preserving a community, Street Districts coming from towns with populations not just preserving the community’s buildings. For Main between 10,000-19,999; and Street, the data that has been collected over the past decade was used as the basis of the analysis of impact Main Street • Generated, on a conservative estimate, more than programs have had. $9 million in annual state sales tax from the net new businesses.

Thirteen communities were visited as part of this analysis.

The purpose of these site visits was twofold. First, the goal was to see, directly, what Main Street had accomplished. However, Missouri Main Street Connection the second and more important purpose was to obtain the In the late-20th century, when many downtowns were qualitative attributes to supplement the quantitative analysis. dwindling, the Main Street Four-Point Approach® was The numbers are both impressive and necessary, but so, started in an effort to bring life back to historic downtown too, are the human stories – the people who opened the commercial districts.

The concept of Main Street is simple: new business, created the new jobs, and invested the dollars economic development in the context of historic preservation. reported in the data. It was important to learn the “why” Developed by the National Trust for Historic Preservation, behind the numbers.

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the Main Street Four-Point Approach® to commercial district revitalization – organization, economic vitality, design and promotion – has become part of the vocabulary of successful economic development throughout the country.

The value of the Main Street Approach has been proven in more than 40 states and more than 2,500 communities across the United States. Missouri state government saw the potential for using Main Street as an economic development strategy, particularly in its rural communities, and established a state-funded program in 1989. The state funding for the Missouri Main Street Program was eliminated, in 2003. However, a determined group of Missouri residents contracted directly with the National Main Street Center to keep the program alive. Since 2006, MMSC has been demonstrably effective in meeting its purpose. The program assists communities in creating an economic environment where local businesses thrive.

Since its inception in 2006, MMSC has provided technical assistance and services to more than 150 communities.

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The program is set up in a four-tiered system that allows communities to receive additional services as they step up in capacity and commitment.

One of the obligations of being a Main Street program is sending quarterly reports to the state Main Street office on the activities in the Main Street districts. These statistics on the health of each downtown include easily quantifiable statistics such as: number of net new businesses, net new jobs, number of buildings rehabilitated and amount invested, number of newly constructed buildings and amount invested, and public infrastructure investment.

Total Main Street Investment Since 2006, more than $906 million has been invested in the buildings, infrastructure and public improvements in Main Street districts. More than 81 percent of this was by the private sector that has invested more than $738 million in rehabilitation and new construction in these downtowns. These investments range from new sidewalks and streetlamps to façade improvements and full-building rehabilitations.

When investment is considered by size of community, towns larger than 20,000 in population attracted approximately 55 percent of total investment. Equally impressive is the fact that the smallest towns, those under 5,000 in population, have seen more than $18 million in investment. In many instances, prior to working with Main Street, those towns had seen decades without reinvestment in their downtown business districts.

Main Street is economic development within the context of historic preservation.

However, that does not mean towns become museums where everything is frozen in place. In fact, of the total investment in physical improvements in Missouri Main Street communities, nearly two-thirds was in new construction. Main Street encourages the rehabilitation and

steady disappearance of upper floor uses, leaving thousands of square feet sitting vacant. However, that pattern is changing in Missouri Main Street towns. In just six Missouri Main Street districts, two hundred units of housing have been added since 2006 – much of that through the redevelopment of previously vacant upper floors of downtown buildings.

Return On Investment – State Of Missouri Support For Main Street

reuse of existing historic buildings, but also encourages new development that complements, rather than diminishes, the quality and character of each town’s heritage.

Net New Businesses A top priority of many Main Street communities is to fill vacant storefronts. The number of net new businesses since 2006 tops 759. These establishments provide a small-scale but powerful economic momentum that creates jobs, sales tax revenue, and economic stability for Missouri communities.

It is important to note that the measurement above is net new businesses. Main Street communities are required to report not only when new businesses open, but also when businesses in their districts close.

Net New Jobs These new businesses also mean new jobs. Since 2006, Missouri Main Street districts have seen more than 3,700 net new jobs. Jobs are certainly lost during a recession, but even in the best of economic times some jobs on Main Street disappear – a merchant retires, a business is acquired by new owners who decide to operate with a smaller staff, a particular type of business is in decline even though the local economy is growing. Even the strongest local economy during the best economic times will see some job losses. To have a growing economy, there must be more new jobs than lost jobs. Again, even in the depths of recession, Missouri Main Street communities saw more jobs created than jobs that were lost.

Of all of the net jobs gained in Missouri Main Street districts, more than half came from towns with populations between 10,000 and 19,999. Even the smallest of towns still produced net new jobs over the last decade.

Downtown Housing When Missouri downtowns were first built, they were commonly comprised of two-story buildings with a ground floor for commercial activities and an upper floor for offices and for housing. For more than 50 years, there has been a

Since it began in 2006, MMSC has increased the number of towns served; expanded the range of activities provided; hired more full-time staff; and, of course, increased its budget.

With a first year budget of a mere $42,000, the organization has grown in financial strength and capacity to a current budget of more than $2.2 million. There are four primary sources of revenue for MMSC: direct appropriations by the state legislature; private investment through donations, fees, memberships, fundraising, conferences, etc.; private investment through donations utilizing the Neighborhood Assistance Program (NAP) State Tax Credits; and grants.

From 2006 through 2018, approximately 80 percent of all revenues came from private investment either directly or through the NAP program, with the balance from state appropriations and grants.

The study showed that the taxpayers of Missouri received a huge return on their investment. This could be measured several ways.

As noted earlier, Main Street Communities over the last 12 years have seen the addition of 3,700 net new jobs. According to the study by PlaceEconomics for 2006-2016, the cost from direct and indirect state support is $563 per job. Even if every one of those jobs only paid the minimum wage, the income tax paid each year to the state treasury by each of those workers would amount to $736 per job.

While the cost per net new job is a one-time expenditure, the income tax from that job comes each year it exists, and these figures assume the job pays only minimum wage.

The return on investment to the state could also be measured by the number of net new businesses. Main Street communities have recorded a total of 759 net new businesses since 2006. The state’s investment in MMSC, according Hochschild, Bloom & Company LLP Certified Public Accountants Consultants and Advisors

Governmental Services Financial audits Fraud and forensic accounting Employee benefits Budget assistance Auditing and assurance

Policies and procedures Internal control reviews CAFR consulting Interim support Monthly accounting

Chesterfield (636) 532-9525 Washington (636) 239-4785 www.hbclp.com

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Left: In 2015, Cape Girardeau, Missouri, was a Great American Main Street Award winner. They are a National and State Accredited Community. Right: Liberty, Missouri, is a Missouri Main Street Accredited Community.

to the study, amounted to $2,912 per net new business.

Conservatively, the sales tax generated for the state treasury each year by each of those net new businesses is nearly five times the cost for each net new business. While the cost per net new business is a one-time expenditure, the sales taxes are generated for the state each year the business is in operation.

Main Street is providing the building blocks for a prosperous Missouri in the 21st century. They are doing it by preserving and utilizing historic resources from the 19th and 20th centuries. Main Street communities are seeing their downtowns reemerge as the commercial, social and cultural hearts of their towns and cities. They are attracting new businesses, new jobs and significant private sector

investment. Local tax revenues are increasing, vacancies decreasing and long empty sidewalks are now often filled with people. Main Street is, at its heart, an economic development program. This has been proven nationally across many states who have utilized the program and seen great economic improvements to their historic districts. There is no economic development program that is more cost effective for taxpayers than Main Street.

Gayla Roten is the state director of the Missouri Main Street Connection.

The MMSC works to ensure that the downtown districts in Missouri’s cities and towns remain essential elements to their sense of community, their cultural heritage and to the state’s economy. Downtown revitalization is encouraged through economic development within the context of historic preservation. The primary purpose of a local Main Street® Program is to ensure the long-term success of the downtown by creating, educating, Infrastructure Upgrades training and empowering a comprehensive, with Guaranteed Savings professional, volunteer-based downtown revitalization organization. Contact Gayla at (417) 334-3014 or glroten@momainstreet.org.

“Measuring the Economic Impact of Main Street in Missouri Communities.” By PlaceEconomics, Principal, Donovan D. Rypkema 1

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FEATURE Review

by Dan R. Lang and Kara Roberson

Downtown Wentzville: Revitalization And Its Effect On Economic Development Wentzville, Missouri, is located in the St. Louis metropolitan area and has the distinction of being one of the fastest-growing cities in the state of Missouri. New residential, commercial and industrial growth is occurring throughout the community.

Commercial development has been concentrated along Wentzville Parkway, with industrial growth along Highway A. Both roadways are major thoroughfares that provide ready-access to Interstate 70 and Highway 61. Even with this growth, local elected officials and city staff are committed to keeping historic downtown Wentzville viable as a business district. This is the story about the programs and improvements that have been implemented to help historic downtown Wentzville thrive.

Research, Strategy And Branding There are far too many examples about how the downtown core of a community has deteriorated, while other areas of the community flourished. Wentzville officials did not want to see that situation occur within the City. The first step toward the enhancement of historic downtown Wentzville involved the completion of a downtown revitalization study (DRS). The DRS was completed by a consultant team in 2009. This study formed the basis for a future vision of what the downtown area could achieve.

The study continues to serve as an

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The Caboose, home to the Wentzville Community Historical Society, also features a lending library.

ongoing useful tool to help maintain focus, provide direction and establish a united approach.

Since the adoption of the DRS in 2009, with an amendatory supplement in 2016, the City has worked on strategies to help achieve the vision conveyed in that study. New zoning districts were established to create a Village Center. These zoning districts provided flexibility to allow and encourage a mixed-use approach in downtown development. The flexibility

within these regulations also allowed reduced setbacks and, in some cases, reduced or eliminated the need for on-site parking. To compensate for this potential lack of on-site parking, the City successfully negotiated an agreement with Norfolk Southern Railway to utilize a portion of railroad right-of-way for parking. The City constructed public parking spaces and purchased property or negotiated leases to create additional public parking in the downtown area.

In a branding and marketing effort, the Wentzville Downtown Business Association created a train-themed logo design that has subsequently been used in various promotional materials. The zoning district titles were changed from Village Center to Historic Downtown to coincide with this private marketing approach. The City purchased banners reflecting this new title and logo and placed them throughout Historic Downtown Wentzville. As a side note, the traintheme is a central element in the community. The town was formed along the train tracks that remain an integral part of the community even today.

Infrastructure Improvements Perhaps the biggest impact in the downtown area has been an investment in infrastructure. The City initially replaced older utility lines located in downtown with new up-sized lines. Once the utility lines

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were replaced, the roadways over these utilities were reconstructed.

The reconstructed roadways were consistent with the adopted DRS. The roads included enhancements such as exposed-aggregate sidewalks, benches, landscaping, vintage light fixtures and concrete pavement that is expected to last well into the future.

A total of $8 million was recently set-aside by the mayor and board of aldermen to make further roadway improvements, consistent with the DRS, and based upon input provided by the community. These improvements are part of the Historic Downtown Transportation Revitalization Project.

Funds will be used over the next few years to upgrade and enhance two of the major roadways in the downtown area, Pearce Boulevard and Allen Street.

Pearce Boulevard was the original U.S. Highway 40 prior to the construction of Interstate 70. Allen Street was named after the founder of Wentzville, William

M. Allen, and this road parallels the railroad tracks, the original City hub.

Façade Improvements And Historic Preservation To encourage rehabilitation in downtown, the city of Wentzville established a Façade Improvement Grant Program. This program provides a 50/50 matching grant of up to $10,000 to make improvements to nonresidential structures that are at least 50 years old. A number of businesses in the downtown area have taken advantage of this program. Improvements include new roofing, tuckpointing, doors, windows and similar treatments.

The City also established a downtown committee. One of the purposes of the committee is, “To provide continuity regarding the focus of economic development and historic preservation of the Wentzville downtown district, when transitions occur in the leadership

of city of Wentzville staff and on the board of aldermen.”

This purpose intimately links economic development and historic preservation together. To this end, the city of Wentzville became a Certified Local Government through the Missouri Department of Natural Resources in 2016. This program is administered by MoDNR’s State Historic Preservation Office and implements preservation at the local level through the completion of requirements tailored to meet the needs of the community. The City was also successful in obtaining a 6040 percent matching grant through MoDNR. These grant funds were used to undertake a reconnaissance level architectural survey of historical downtown Wentzville. The study was completed in 2018 and will be used in the future as a basis to support additional historic preservation efforts.

The City has also developed design guidelines that are being used in

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businesses for new construction or rehabilitation efforts. These guidelines are intended to give the downtown area a “historic” look and feel, while still utilizing modern materials and construction techniques.

In 2016, the City started a mural program in the downtown area to give the community a better sense of its historic heritage. To date, murals approved and placed include: a representation of some of the historic buildings; a depiction of a Civil War battle that occurred in the community; a tribute to the area’s tobacco-growing industry of the past; and a commemoration of a picnic flier from the turn of the century.

Promoting Economic Development So how has the private sector responded to the City’s efforts to revitalize historic downtown Wentzville? Here is the rest of the story.

The proactive approach taken by

the city of Wentzville in supporting its downtown has resulted in a variety of positive responses from the private sector. A number of new businesses have located in historic downtown Wentzville over the last few years.

Vacancy is at an all-time low.

Several new restaurants have opened in the downtown area. These restaurants include Yo! Salsa, Old Town Smokehouse, Duke’s BBQ, the Wentzville Family Diner and Captain D’s. A microbrewery, Friendship Brewing Company, has been very successful and well-received by the community. Another microbrewery, Exit 6, was recently approved by the board of aldermen. This restaurant and microbrewery will open in 2019 in the former fire district headquarters on Pearce Boulevard. It is believed that the synergy created by having several new restaurants and two microbreweries will continue to bring new customers and pedestrian traffic to downtown.

Other unique businesses such as Ellbee’s

General Store, Not Jaded Boutique and Irish Eyes Photography contribute to additional interest in historic downtown Wentzville.

Various nonprofit organizations have also responded to this emphasis on downtown. The Crossroads Arts Council has been responsible for the murals previously mentioned. The Wentzville Community Historical Society has established an old caboose as a community gathering space.

The caboose area also includes a free lending library. Two of the Historical Society members co-authored the Images of America – Wentzville book (available online). The Wentzville Downtown Business Association has been involved in several downtown events. They are also leading the effort, along with the American Legion and VFW, to reestablish a WWI/WWII Memorial Honor Roll. The Rotary Club and Wentzville Community Club have also made positive contributions in the downtown area.

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theReview January/February 2019

Only one large tract remains to be developed in downtown. This 1.5-acre tract along Pearce Boulevard is being actively marketed and there has been recent interest in its utilization.

The future of Historic Downtown Wentzville appears bright. The proactive efforts made by the leadership of the city of Wentzville have been met by the private sector in promoting economic development. The Historic Downtown area, and its recent success, is a testament to what can be achieved when municipal government and the private sector work toward a common goal.

Dan R. Lang is the director of economic development for the city of Wentzville. He is certified as a Professional Community and Economic Developer with the Community Development Council and a Business Retention and Expansion Coordinator with Business Retention and Expansion International.

Wentzville City Hall

Wentzville. She has more than 18 years of professional marketing and communications experience, including 11 years in municipal government. Learn more about the City at www.wentzvillemo.org.

K a ra Ro b e r s o n s e r ve s a s t h e communications manager for the city of

www.mocities.com

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FEATURE Review

by Kenneth Saverin

Leveraging Municipal Cellular Site Assets To Address Financial Needs For the past 30 years, the cellular industry has been crisscrossing the United States installing more than 350,000 cell sites in cities, towns and crossroads. Municipalities fortunate enough to have cellular sites located on their properties have been able to count on a steady stream of income from their cell site leases. While these rents have been a nice source of revenue for municipalities, the ever-increasing challenges to municipal budgets and changes in the telecom industry have led many forward-thinking municipal leaders to seek strategies that multiply and maximize the value they receive from their cellular site leases and provides much-needed capital.

Municipal Budgets Are Getting Hit From All Sides Municipal budgets are being assaulted by a number of challenges. On one hand, rising infrastructure and service demands have greatly increased the financial demands that municipal budgets must address. At the same time, shrinking state and federal subsidies, increased voter resistance to tax increases and bond referendums have made it difficult to access the needed capital to keep up with the growing needs.

Now the Tax Cuts & Job Act has limited the deductibility of state and local taxes that will bring additional resistance to any attempts to increase property or sales taxes. According to the National League of Cities 2018 City Fiscal Conditions Survey, “tax revenue growth is experiencing a year-overyear slowdown, with the growth in service costs and other expenditures outpacing it.�

It is not surprising that leaders in many municipalities are closely examining all of their potential revenue sources in the context of their short- and long-term needs, risks and how to best utilize assets.

The State Of The Cellular/Municipal Union Until recently, the union between municipalities and telecoms has been largely controlled by the telecommunication

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theReview January/February 2019

companies. Municipalities give them access to place towers and antenna on publicly-owned property in exchange for long-term leases with monthly rent payments. Unfortunately many times, municipalities were unable to negotiate the best terms for their leases and consequently receive lowerthan-market value payments for extended periods of time. To make the situation even more one sided, is the fact that many of these leases carry early termination clauses that allow the telecom to walk away from the lease with little notice or recourse for the municipality.

The Times Are Changing Rapidly In The Cellular World Moving forward, the telecom world is going to be adapting and changing like never before. Mergers, new technologies and the push for higher profitability will put added pricing pressure on both new and old cellular leases.

While mergers are nothing new in the telecom industry, the proposed T-Mobile/Sprint merger may have greater effects on municipalities than any merger to date. Papers filed by Sprint note that they expect to decommission close to 35,000 older cell sites as part of their cost reduction plans if the merger is completed. Even if the merger does not go through, cutting cell tower site expenses will be a top priority for Sprint and T-Mobile in order to stay competitive with other telecoms. Many site owners have already been approached by entities attempting to renegotiate older tower rents for lower rates.

5G And Other New Technologies Can Affect Your Cell Site Asset Value The coming rollout of 5G cellular and the small cell technology that drives it, is going to have a gigantic impact on cell site values over the next several years. Overall, 5G technology will make it possible to move more data faster and with less power enabling smart homes, smarter cities, selfdriving autos, and many other Internet Of Things technologies.

The good news is that this will require a tremendous investment in new cellular sites and equipment to provide the coverage necessary to enable the lower frequencies that power 5G. Some of this income will go toward adding additional equipment and upgrades to existing towers that should bring additional income to some cell site owners. It is expected that a great portion of 5G investment will be in small cell sites. The antennas utilized in small cell technology can be as small as a rural home mailbox and can be sited on existing light poles, buildings or highway overpasses.

For cell site owners, the bad news is that small cell technology will require less large cell tower sites; that may mean some site owners will have their sites decommissioned and their leases cancelled, often with little or no notice.

Rents from small cell sites will be significantly lower than those for larger towers. In fact, many state governments, including Missouri, have passed bills that will legislate lower rents on small cell antennas. With these lower site costs, it is expected that telecoms will force some current tower owners to renegotiate their existing leases or face the possibility of having their tower replaced and decommissioned.

Consider The Advantages And Timing Of An Immediate Or Structured Buyout After considering the opportunities and challenges facing today’s municipalities, it is not surprising that many municipal leaders have determined that now is the time to pursue a cash or structured buyout for their cellular ground leases. Converting their smaller monthly lease payments into a large cash payout provides greater financial flexibility and control for municipalities without the constraints of other means of obtaining capital. It also eliminates the risk of future rent decreases or site decommissions.

Municipalities considering an immediate cash or structured buyout should be certain that their new asset partner can provide the necessary expertise and resources to custom tailor an agreement that provides the best payout and ongoing support that meets their needs. Asset partners should offer: • Immediate access to necessary capital to close loans and provide assurance of long-term viability; • Independence and lack of conflict. There should be no financial ties to telecoms or firms engaged in business with telecoms; • Necessary industry technology, financial and legal expertise to negotiate successfully with telecoms on your behalf; • A range of payout options including multi-year structured payouts and payouts with future earnings upside; and • The ability to offer small cell monetization, as well as expertise in site management and monitoring.

Currently, cellular lease buyout prices are at all-time highs.

Sample Small Cell Ordinance On behalf of the Missouri Municipal League, Attorney William Ojile, Armstrong Teasdale, has prepared a sample ordinance for use as a template in complying with the new legislation. This ordinance can be found on the League's website under the One Stop Shop, then click the Utilities topic. https://cdn.ymaws.com/mocities.site-ym.com/ resource/resmgr/onestopshop/onestopshop-telecom/ mmlsample__small_celll_deplo.pdf.

As with all sample ordinances, the local city attorney should be consulted prior to adoption.

However, with the ongoing rise of interest rates, looming merger and technology threats, and the increasing likelihood of future lower rents or cancellations, these high prices possibly will be short lived. Municipalities considering new strategies to maximize the value of their cellular assets would be advised to begin a due-diligence process before market forces reduce the value of these assets.

Kenneth Saverin is the CEO of Crescendo Capital Partners, LLC a leading ground lease optimization and acquisition firm. He has more than 30 years experience in investing, real estate and innovating products that provide capital opportunities and access for both public and private clients.

His experience as an attorney and an investment banker provide him with unique expertise to work within the legal and regulatory environment of municipalities to structure custom strategies and solutions to help maximize the value of their cellular assets. For more information about how you can maximize the potential in your cellular ground leases, contact Crescendo at: info@crescendotrust.com or (203) 9723200. Visit www.crescendotrust.com.

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theReview January/February 2019

FEATURE Review

by NLC Service Line Warranty Program

Improving Your Community With Public-Private Partnerships The Tr ump administ rat ion prop os es exp anding t he U.S. Department of Transportation Private Activity Bond program, encouraging the development of public-private partnerships (P3s) in transportation projects. While P3s do not work for all communities or all types of projects, they can provide some key benefits to help meet local infrastructure needs. With the Trump Administration’s emphasis on them, it may be worth looking into whether a P3 would suit your community’s latest project.

At their best, P3s are a good way to bring in new technology and expertise that local government might not otherwise be able to utilize. In many cases, private corporations take on the greater part of the risk and management responsibility, and their profit is often tied to their performance, while local governments retain ownership of the assets.

Although allowing private entities to finance, construct and manage public assets is not something to be entered into lightly, P3s can yield some benefits.

P3s Can Stretch Your Budget When considering bids, local governments must look at the tradeoffs between the cost and quality details of the proposed project. Some may use the lowest bid, only to find out later it was not the best. P3s focus on

burgeoning popularity of P3s to cashstrapped governmental agencies and the need to complete infrastructure projects.

P3s Can Get Projects Done More Quickly

long-term operation and maintenance costs, meaning they consider those, and how to keep them low while avoiding deferred maintenance when awarding a bid. In addition, because local government can set performance and maintenance standards into the P3 contract, the projects are orchestrated to meet the standards the community expects over time.

P3s are designed so the cost of the project is paid over the lifetime of the asset and costs are known up front.

Private corporations earn a return on their investment either by payments from ratepayers, such as in a water district, or they receive a portion of the higher taxes generated by improved infrastructure.

This unique tool can help municipalities and utilities build the project of the future, according to Charles Renner, who chairs the P3 group at the Kansas City law firm Husch Blackwell. Renner attributes the

When it comes to red tape, private corporations may have more flexibility than governmental bodies.

P3s can bring quick decision-making and best practices honed in the business world to a project. Studies have shown that P3s increase the likelihood that projects come in on budget and on schedule over those completed solely by public entities.

Los Angeles County’s metro system is looking toward P3s to dramatically accelerate dozens of projects, some by more than a decade.

Deficient bridges are a problem across the country. The state of Pennsylvania used a P3 and economics of scale to repair more than 550 small bridges across the state in one project – with the repair completed over a decade earlier than they would have, had the state completed them one-by-one. In addition, the Pennsylvania Department of Transportation saved 30 percent on the cost to build them and the private partner will maintain the bridges for 25 years.

Bob Bennett, Kansas City, Missouri, chief innovation officer, sees the value in using P3s to build the cities of the www.mocities.com

19

future. He has worked with Cisco and Sprint to improve WiFi access and Xaqt to predict infrastructure issues and crime factors. That is just the beginning as Kansas City looks to leverage more P3s to invest in the City’s downtown, tying partners’ success to the City’s success through the KCMO Smart City Initiative.

P3s Can Improve Innovation Popular in Canada and Europe, P3s have also changed the landscape in China. An early win for P3s, 40 years ago, the Central Park Conservancy saved New York City’s Central Park. The conservancy started small by saving the park’s unique structures, but has seen such success that it has taken over the park management altogether.

In 2014, Chicago used a P3 to invest its Riverwalk, a downtown area that was once unused and neglected by pedestrians; today, this area has seen

major revitalization and economic development. The Port Authority of Kansas City is moving forward on the Missouri River Terminal through a P3, partnering with Nossaman LLP to transform a former steel mill into an intermodal port. Port Authority officials cited Nossaman’s expertise and familiarity with port and rail infrastructure.

Other levels of governments have also explored the use of P3s. In addition to the state and county examples mentioned above, the U.S. Department of Energy and the American nuclear industry have partnered as “innovation incubators,” using a blend of resources across laboratories, academic facilities and private sector companies to improve reactor and fuel technology.

Missouri also is getting high tech, as the University of Missouri entered into a partnership with engineering firm Black and Veatch and Virgin Hyperloop

One to look at the feasibility of building a hyperloop – a vacuum-sealed tube with levitating passenger pods, along the Interstate 70 corridor.

There are as many ways to utilize a P3 as there are reasons for entering into one, but approaching a partnership with concrete goals can help you get infrastructure updated, or start building the infrastructure of the future more quickly and economically.

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theReview January/February 2019

FEATURE Review

by Marvin Brown

Louisiana, Missouri:

Continued Growth And A Vibrant Community Like just about every other small rural Missouri town, Louisiana has had its challenges.

With peak populations at the beginning of the last century – 5,130, and again during World War II – 4,670, we currently have about 3,200 residents. It would be easy to assume that our numbers will continue to decline, but we are optimistic that the situation will change.

New infrastructure, a r e v i v e d c o m mu n i t y spirit, and the assets that make the community special are things to build on, and there is a plan in place to do so.

The plan is led by a vision for what citizens want Louisiana to be: A community that all citizens look on with pride and appreciation.

A community that people grow up in and want to remain in or return to, and one that attracts new residents, businesses, organizations and institutions who are positive, energetic contributors to Louisana’s continued growth and improvement.

The goals that will make this vision a reality, include: • To make Louisiana’s historic architectural resources a key

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•

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contributor to the City’s visual and cultural attractiveness; To leverage Louisiana’s within-city natural resources and proximity to other natural resources in ways that will return economic, environmental and social benefits to community residents; To ensure t hat L ouisiana’s zoning designations, special area designations and city boundaries encourage future growth and development, and also support proper maintenance and use of current structures; To ensure that Louisiana’s housing stock condition, affordability and availability is viewed positively by current residents, as well as businesses and individuals looking

to relocate; • To s e e t h a t c i t y services and those of public institutions fully serve the needs of the community; • To have civic and community groups that freely collaborate and provide important contributions to Louisiana’s well-being; • To have a highlyfunctional transportation system for both business and personal use; and • To have sufficient employment opportunities that provide adequate wages and benefits to the extent that people are motivated to either remain or move here, and to demonstrate a c om m it m e nt w it h i n t h e community that is supportive to both existing and new businesses.

These goals are tied to objectives that measure the progress, and every objective has a set of strategies for completion.

One measure of progress is the infrastructure improvements that have been accomplished or are underway.

Huge among those is the replacement of the Champ Clark Bridge across the Mississippi River. Once the new bridge opens, we expect traffic through the City to greatly increase. Accordingly, the plan calls for a complete reexamination of land use zones, City boundaries

www.mocities.com

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When the new Champ Clark Bridge opens in fall 2019, traffic through Louisiana is expected to greatly increase. Photo courtesy of the Missouri Department of Transportation.

and zoning ordinances – a task that Louisiana’s Planning and Zoning Commission is busy completing.

Economic development strategies are focused on businesses that could capitalize on the increased interstate traffic. A collaborative of local elected officials is busy advocating for Highway 54 lane increases between Louisiana and Kingdom City.

Not long ago, Louisiana reinvested in water and sewer treatment facilities.

The City is currently working on a

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major project to provide new water and sanitary sewer service, improved storm water control, complete street resurfacing and new sidewalks for Louisiana’s principle east-west thoroughfare, Georgia Street. The main north-south route through town, Route 79, also known as 3rd Street, will be repaved once the Mississippi River bridge is complete.

The rise in community spirit was best reflected during a recent wind storm.

The City’s Sunset Park suffered major

damage. Large, ancient trees were blown down and destroyed the park’s picnic pavilion. As luck would have it, the Rotary Club had already planted new trees there that provided a head start on that need. More importantly, the club took the lead on rallying the whole community to replace the pavilion. The result was enough donations to build the new pavilion that was twice as large, more attractive and significantly more functional than anything the City had in the past.

Another rallying point was that 2018 was Louisiana’s bicentennial year. It was marked by a week full of celebration and events capped off with an outstanding Fourth of July fireworks, again through community donations. The same spirit of generosity also enabled the City to commission a wonderful work of art honoring one of Louisiana’s most important historical residents, John B. Henderson. Mr. Henderson was co-author of the 13th Amendment to the United States Constitution, an enactment that ended slavery. His bust now stands in Riverview Park. Visitors there also have a great view of the new bridge.

Louisiana has many more reasons for optimism. It sits right on the Mississippi River, offering great recreational opportunities from boating and fishing to waterfowl hunting and eagle watching. Access the river from downtown and purchase gas just across at the marina. We are at the junction of both east-to-west and north-to-south rail lines. Louisiana has a private port facility on the south end of town with additional warehousing soon to be built by the Pike County Development Authority to service port users.

Downtown is home to one of the largest assemblages of Mesker Buildings in the country. In the late 1800s and early 1900s, Mesker Brothers Iron Works in St. Louis prepared and shipped numerous commercial buildings to small communities around the United States, typified by unique sheet metal façade; often, the establishment’s name was produced in the masonry work of an upper floor. Unfortunately, some of these buildings have been lost over time

and others are abandoned, but there has been a recent increase in interest from various potential purchasers.

In 1987, Louisiana’s downtown was listed as a National Historic District and in 2005 was granted the North Third Street Historic District. This has allowed business owners within the districts to apply for Historical Structures Tax Credits that may be used to lower taxes owed for an individual, or a business that either does the work or purchases the credits. Louisiana’s Historic Preservation Commission, a body appointed by the mayor and approved by the City Council, is responsible for seeing that the standards set for the appearance and maintenance of historic structures are upheld.

Scattered throughout the City are a number of historical homes where pride of ownership is apparent. Others are waiting for the right owner to come along and coax them back to their original beauty. In cooperation with the Louisiana Convention and Visitors Bureau, a resident has been researching these structures and plans to have smart phone readable placards in front of each one, allowing visitors to access detailed information at each location.

The list of attributes continues.

The Louisiana RII School District is known for its excellence. The District was honored as Missouri High School Activities Association’s Class 2 State Quiz Bowl Champions the last two years and runner-up the year before that. The YMCA would rival any in the state, with a full-sized indoor pool, indoor walking track and all the normal amenities you would expect.

Pike County Memorial Hospital is located here and has a state-of-the-art emergency facility manned around the clock, plus all the other health care services most would ever need.

The Riverview Cemetery has a history all its own. It provides a fabulous view high above the Mississippi River Valley that numerous artists have taken advantage of over the years when participating in the annual Plein Air Event. If you enjoy outdoor sculpture, St. Louis University’s Lay Center sits

right outside of town. Visitors can hike trails past wonderful works of original art while getting exercise at the same time.

As Mayor, I know we have challenges.

We need to generate more commerce within the city limits. I hope we can find a way to provide more hiking and biking opportunities. After the Georgia Street project is complete, street tree

rehabilitation is needed. There are streets and utilities in other parts of town that also need attention. Still, with this much happening now and so much more to build on, I like our chances for remaining a robust and vibrant community for many years to come.

Marvin Brown is the mayor of Louisiana.

Contact the City at (573) 754-4132.

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Michelle Bock Managing Director St. Louis Public Finance 800 754-2089 michelle.m.bock@pjc.com

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NEWS From The Bench

by Brian Malone

Considering The Right To Bear Arms My article, “The Right to Regulate the Right to Bear Arms,” appeared in the March/April 2018 issue of The Missouri Municipal Review. The article analyzed recent changes to Missouri’s firearms laws and highlighted a case that was pending at the Missouri Court of Appeals: Zoological Park Subdistrict of the Metropolitan Park Museum District v. Jeffry Smith, ED105784. The Court of Appeals issued its ruling on Nov. 6, 2018. While the case was remanded to the trial court on procedural grounds, the trial court’s decision and the concurring opinion by Judge Roy Richter present some important issues for cities to consider.

In 2015, Smith, a concealed-carry (CCW) permit holder, intended to conduct an open carry demonstration at the St. Louis Zoo. The Zoo1 prohibits firearms and St. Louis City prohibits openly carrying firearms by ordinance.2 Smith argued that § 571.107.1, RSMo. – listing where CCW permit holders cannot carry concealed firearms, such as polling places, jails, courthouses, stadiums, amusement parks, hospitals, taverns, and municipal buildings – only prohibits carrying concealed firearms into such locations, and that St. Louis’s open carry ban was preempted as to CCW permit holders by § 21.750.3, RSMo. The Zoo sought an injunction, arguing that § 571.107.1 prohibited carrying firearms, openly or concealed, into any “gated area of an amusement park.” The trial court enjoined Smith from carrying firearms at the Zoo. On its face, § 571.107.1 only restricts carrying concealed firearms into the locations listed therein. Section 21.750.2 prohibits cities and political subdivisions from adopting “any order, ordinance or regulation concerning in any way the … use, keeping, possession, bearing …” of firearms, except as provided in Subsection 3. Under Subsection 3 of § 21.750, cities can pass ordinances banning open carry, but

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CCW permit holders can still openly carry firearms in such cities, so long as they carry their permits. The Zoo contended that § 571.107 “sets forth locations and facilities where concealed carry endorsements and permits are not valid and, therefore, do not authorize the concealed carrying of a firearm.

Because [§ 21.750.3] allowing the open carry of firearms is premised on a valid concealed carry endorsement/ permit, in places where a concealed carry endorsement/permit does not authorize the carrying of a concealed weapon, a person who holds an open carry endorsement/permit cannot openly carry his or her firearm in those places either.”3 The trial court agreed.4 However, the court’s analysis presupposes that a city bans openly carrying firearms by ordinance. While St. Louis City has such an ordinance,

many cities do not. Without such an ordinance, § 21.750.3 is inapplicable because the city has not exercised its authority to regulate open carry. If cities do not ban open carry, nothing prohibits CCW permit holders from openly carrying firearms into places where § 571.107 prohibits carrying concealed firearms.

The Court of Appeals did not resolve this issue. Instead, the court held that the Zoo failed to request a declaratory judgment and that summary judgment was improper, in part because an injunction is a form of relief rather than an independent cause of action.5 Further, the court held that the hearings on preliminar y and permanent injunctions were improperly conjoined.

The case was remanded to the trial court for further proceedings.

Judge Richter’s concurrence states that he would have ruled that openly carr ying firearms in the Zoo is prohibited. “[T]he plain language of Section 21.750 initially appears to be unambiguous and allow for the open carry of a firearm if an individual has a valid concealed carry permit. However, this does not end our analysis. The reference to a ‘valid' concealed carry permit requires us to examine Section 21.750 in conjunction with Section

571.107 and its limitations on locations in which concealed carrying a firearm is permitted.”6 Judge Richter continued, “[a]n individual’s permit is not valid where the permit is specifically not recognized and in fact the action subject to the permit is prohibited by law. Thus, when the limitations of Section 571.107 are read together with the plain language of Section 21.750, it is clear the legislature would not have intended the incongruous result that where individuals are prohibited by law from concealed carrying firearms in certain places those individuals could open carry a firearm into such locations.”7 It is debatable whether CCW permits are not “valid” in the locations listed in § 571.107. Non-CCW permit holders who bring concealed firearms to locations listed in § 571.107 are subject to much harsher punishments than CCW permit holders.8 Furthermore, a permit is not required to openly carry firearms, and state law doesn’t prohibit open carry.

As with the trial court’s decision, the concurring opinion begs the question of whether the General Assembly intended § 571.107 to have one meaning in cities that ban open carry (firearms are prohibited in the restricted locations, whether openly or concealed), and another in cities that don’t (only concealed firearms are prohibited in such locations). The only places where state law (§ 571.030.1(8) and (10), RSMo.) expressly prohibits openly carrying firearms are government buildings, schools, churches and polling places, but that statute exempts CCW permit holders.9 This appears to be a loophole in Missouri’s statutes that could endanger the public, even in locations presumably intended to be gun free.

If this case goes back through the appellate courts and the trial court’s decision is affirmed, cities can protect these sensitive locations by enacting ordinances prohibiting or restricting open carry. Smith contends that § 21.750.3, by its plain language, preempts ordinances banning openly carrying firearms as to CCW permit holders, even in locations listed in § 571.107.

Experts in Municipal Bond Financing Martin Ghafoori | (314) 342-8467 | ghafoorim@stifel.com Dan Smith | (314) 609-4126 cell | dan.smith@stifel.com Lorenzo Boyd | (314) 342-8477 | lorenzo.boyd@stifel.com Becky Esrock | (314) 342-2923 | esrockb@stifel.com 501 North Broadway | St. Louis, Missouri 63102 Stifel, Nicolaus & Company, Incorporated | Member SIPC & NYSE | www.stifel.com/publicfinance

If Smith ultimately prevails, cities must consider different approaches.

Options are limited due to the General Assembly’s broad preemption of local firearms regulations, as set forth in § 21.750. The trial court’s decision indicates that if cities ban openly carrying firearms, the locations listed in § 571.107.1 are off limits to firearms.

However, without such an ordinance, these sensitive locations could be vulnerable.

Brian Malone is an attorney at Lashly & Baer, P.C. in St. Louis. Brian advises cities, school districts, library districts, and other governmental bodies in Missouri.

Footnotes for this article are available by request. Contact the Missouri Municipal League at (573) 635-9134 or email info@ mocities.com.

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A Blue Springs

Faurecia Production Facility

In early 2018, Faurecia, a global manufacturer of automotive interior parts announced plans to open a new production facility in Blue Springs.

The company is in the process of construction on a 250,000-square-foot production facility that, once open, will create 300 new jobs in the community.

Faurecia plans to open its doors to the new facility in 2019.

“We are thrilled that this world-wide company has chosen Blue Springs as the location of its most recent production facility,” said city of Blue Springs Mayor Carson Ross. “As I like to say, Blue Springs is a city on the move and on the right track, and by bringing quality growth and development and more than 300 new jobs to the City, this facility is a great example of that statement in action.”

The new facility will manufacture and assemble door panels, center consoles and instrument panels using the latest 26

theReview January/February 2019

technology in the manufacturing industry.

Fau re c i a e st i m ate s t he tot a l investment in the Blue Springs plant will exceed $60 million.

“We’re very happy to call Blue Springs the home of our new interiors facility for many reasons, including proximity to custumers, being strategically located in a region that offers us the opportunity to reach underserved areas of our market, and access to a highly skilled workforce that understands manufacturing,” said Donald Hampton, Jr., president of Faurecia Interiors North America. “We’re happy to be in Blue Springs and looking forward to partnering with the community to provide good manufacturing jobs for local jobseekers.”

Grandview

Grand Summit Apartments

Grandview is living up to its promise of Building Tomorrow’s Community.

The City is about to embark on one of its biggest economic development projects hinging on infrastructure. The $15,000,000 conversion of the Interstate 49 Outer Roads to two-way traffic is a long-anticipated catalyst for local businesses demanding accessibility in a city divided by an interstate. The right-of-way acquisition process on the design-build project with MoDOT will begin early 2019. Construction is expected to start late in the year.

Grandview issued more than four times the number of building permits for single-family homes in 2018 compared to 2017. Kansas City Business Journal ranked Grandview’s 64030 as one of the hottest-selling zip codes for housing sales in the KC Metro Area.

More than 400 new units are being added to Grand Summit Apartments.

Construction is nearly complete on the first 156 apartments at this affordable luxury complex on a golf course.

Approval of a new Community Improvement District (CID) is allowing Tutera Group to give a facelift to a Main Street shopping plaza, level a vacant building on a pad site, and build a new Dairy Queen restaurant.

The decade-long vacancy of a hotel along I-49 is being repurposed by Teague Lumber Company into an expansion, including offices and a specialized lumber yard.

Kirkwood

Lebanon

Performing Arts Center

The city of Kirkwood held a groundbreaking ceremony for its new Performing Arts Center on Nov. 8, 2018. The site for the new Center will be at the corner of South Taylor Avenue and Monroe Avenue in downtown Kirkwood (GPS address: 210 E. Monroe Ave., 63122).

The new Performing Arts Center is scheduled to open in late spring 2020.

The City anticipates that STAGES St. Louis will open for their 2020 season as the first tenant to occupy the new

space. Other tenants will include Kirkwood Theatre Guild and the Kirkwood Youth Theatre program.

Both STAGES and Kirkwood Theatre Guild have contributed financially to the development of the Center.

Planning for the Center has been underway for about two years now, and construction has already begun.

Renderings of the new Center were on display at the groundbreaking for the public and the media to review.

The City, in partnership with the Kirkwood-Des Peres Chamber, also held an open house for developers immediately following the groundbreaking, to showcase what the City has to offer, including available commercial properties throughout Kirkwood.

Senior Living and Memory Care Facility

Understanding the competitive nature of economic development projects in 2018, the city of Lebanon and Lebanon Regional Economic Development, Inc., (REDI) worked closely with Dover Development, LLC in utilizing a Chapter 353 abatement tool allowing a $13 million project to become a reality.

The result will be the construction of a 66,500-square-foot, 73-unit assisted

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living and memory-care facility along North Highway 5 in Lebanon.

Dover affiliate Cedarhurst Living, LLC, an experienced operator of similar senior living facilities in Illinois, Missouri and Kansas will manage the project. The completed facility will employ 50 people and create nearly $1.5 million in new annual payroll for the City. It will offer seniors multiple amenities including a therapy center, theater, salon, spa and four seasons room.

Through the Chapter 353 abatement, that included a blight designation on a 9-acre plot of 16.5 total acres purchased, the company will receive 50 percent real property tax relief for 20 years.

City administration, staff and REDI representatives helped Cedarhurst navigate the processes involved in successfully receiving the abatement, including early outreach and communication with all affected taxing jurisdictions. The project is expected to be complete in late summer 2019.

roadblocks were encountered from the large corporate property owner (Sears/Kmart). City leaders created a Tax Increment Financing District (TIF) and sought a developer with the capabilities to take on a mixed-retail project. Through an RFP process, the City selected Legacy Development, that offered established relationships with retailers and experience but more importantly, a relationship with Sears.

A TIF, Community Improvement District (CID) and a Transportation Development District (TDD) were formed to assist with public improvements and demolition of the outdated center. Revenue bonds were approved, with one caveat: bond funds would be released upon percent of tenant space leased by certain dates.

The result: Liberty Commons, a 315,000-square-foot retail project with a mix of retail, restaurants and hotel.

state’s economy. Public and private organizations are working together like never before. Show Me Christian County is about fostering an attitude of collaboration and alignment to ensure that our area is a top competitor in innovation, business attraction, retention and expansion, and workforce development. Serving the people of Christian County is my passion and I am blessed that our efforts will impact the future.”

Nixa/Ozark

The city of Raymore is a growing suburb attracting young professionals with more living and job opportunities.

Construction will begin this spring on a 400-unit luxury apartment complex and a 1.9 million-square-foot warehouse and light industrial complex before the end of 2019.

The industrial complex will be developed on 126 acres on the southwest side of Raymore at I-49 and North Cass Parkway. The developer is VanTrust Real Estate, headquartered in Kansas City with more than $2 billion in development and acquisition. While they haven’t identified tenants yet, developers say the project has the possibility of bringing more than 1,000 new jobs to the community and has been compared to a similar development project in North Las Vegas, that houses logistics centers for retailers such as Amazon, The Honest Company and Sephora.

“What drew us to Raymore was the access, workforce, a great landowner partner and a city that is pro-development,” VanTrust’s Grant Harrison said. “Raymore fits well with our company’s philosophy when it comes to modern projects like this.”

Liberty

Liberty Commons

Today, the city of Liberty’s main entrance at the I-35/152 Highway interchange leads to a bustling corridor with high-performing businesses.

Flash back 10 years, and visitors would have seen a vastly different landscape.

Although businesses in the Liberty Triangle, north of MO-152, were thriving, the tired and largely vacant retail center to the south was an eyesore prone to vandalism and produced virtually no revenue.

The site had always been considered f o r r e d e v e l o p m e n t . Ho w e v e r,

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In 2017, the cities of Nixa and Ozark joined forces with the Christian County government, the other municipalities of Christian County, and local business leaders to establish the Christian C ount y Busi ness D e velopment Corporation (CCBDC). The goal was to establish an organization that would drive coordinated economic development efforts for the benefit of the entire county.

In January 2018, the Board of Directors of the CCBDC hired Andrea Sitzes as its first executive director. The CCBDC then branded itself as Show Me Christian County.

“I am humbled and honored to lead Christian County into the next era of growth,” says Sitzes. “From our schools to our businesses and amazing people, our county has the qualities necessary to be a driving force in our

Raymore

Lofts at Fox Ridge

The Lofts at Foxridge will feature studios, one-, two- and three-bedroom units, a pool and state-of-the-art clubhouse with easy access to Interstate 49, shopping and restaurants.

St. Peters

FasTrac Development

The city of St. Peters has half a billion new reasons to celebrate as it reaps the benefits of its FasTrac economic development efforts in 2018.

Projects totaling nearly $500 million in new construction on more than 200 acres, bringing 2,000 jobs, are under

construction at St. Peters’ Premier 370 Business Park.

Amazon is bringing its first fulfillment center to Missouri, with an 885,000-square-foot footprint and more than 2 million square feet of usable space on four levels. When it opens in Spring 2019 it will create more than 1,500 full-time jobs with benefits and feature Amazon Robotics.

FedEx is building a 491,252-squarefoot distribution facility at Premier 370 that will create 300 new jobs and open in 2019.

Grove Collaborative moved into a 137,000-square-foot fulfillment center at Premier 370, creating 210 jobs for this direct-to-consumer ecommerce platform. Grove shares half of a 300,000-square-foot facility with an expansion for RB, that also has a 715,000-square-foot distribution center across the street.

Meanwhile, C entral States Manufacturing is investing more than

$6 million for a facility in Premier 370 that will create 40 new jobs now and 60 new jobs over six years.

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FAQ Review: Medical Marijuana in Missouri

by Padraic Corcoran

The following are responses to some frequently asked questions. The answers are not intended as legal advice and are not a substitute for consulting with your legal counsel.

What was Amendment 2?

Amendment 2 is an amendment to the Missouri Constitution approved by voters on November 6, 2018. Generally, Amendment 2 permits doctors to recommend marijuana for medical purposes to patients with qualifying medical conditions and allows for the limited legal production, distribution, sale and purchase of marijuana for medical use. See Article XVI, Section 1(1) Missouri Constitution.

How does this being a constitutional amendment affect the Legislature’s authority to amend the law?

The General Assembly may supplement constitutional provisions but cannot enact legislation that would be inconsistent with the Missouri Constitution. State ex rel. Creamer v.

Blair, 270 S.W.2d 1 (Mo. Banc. 1954).

This means that while the General Assembly may pass legislation that facilitates, provides for enforcement of, or implements Amendment 2, it cannot pass legislation that would be inconsistent with Amendment 2.

In line with the general legal principal above, Amendment 2 grants the General Assembly the authority to “enact laws consistent with [Amendment 2], or otherwise effectuating the patient’s rights of [Amendment 2]” but prohibits the General Assembly from enacting “laws that hinder the right of Qualifying Patients to access marijuana for medical use…”

What is the timetable for the implementation of medical marijuana?

Amendment 2 charges the Missouri Department of Health and Senior Services with the mandate to establish “rules…necessary for the implementation and enforcement

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of [Amendment 2] and to ensure the right to, availability, and safe use of marijuana for medical use by Qualifying Patients.” The timelines outlined in Amendment 2 for when DHSS is to begin accepting applications for licenses for medical marijuana facilities are as follows: 1. June 4, 2019 – Application forms and instructions for medical marijuana facilities, qualifying patients, and caregivers will be available.

2. July 4, 2019 – Applications for identification cards for qualifying patients and caregivers will begin to be accepted.

3. Aug. 3, 2019 – Facility applications will begin to be accepted.

What steps should cities take as the new medical marijuana laws go into effect?

Cities should review their code of ordinances, specifically sections relating to business licenses and offenses, and their zoning code. Also, and as discussed below, cities should review personnel policies, specifically provisions relating to the use of marijuana.

What effect does Amendment 2 have on cities’ drug testing policies and may cities discipline an employee who uses medical marijuana?

Amendment 2 prevents users of medical marijuana from bringing any claim against a former, prospective, or current employer for prohibiting the employee from being under the influence of marijuana while at work or from attempting to work while under the influence of marijuana. Article XVI, Section 7(1)(d) Missouri Constitution.

Further, it is likely that use of medical

marijuana would not be protected by the Americans with Disabilities Act. See James v. City of Costa Mesa, 700 F.3d 394 (9th Cir. 2012)

What effect does Amendment 2 have on city revenues?

The sale of medical marijuana is subject to general local sales and uses taxes, but cities may not impose any additional taxes on the sale of marijuana for medical use. Amendment 2 does impose an additional 4 percent tax on the sale of medical marijuana to be deposited in the Missouri Veterans’ Health and Care Fund.

Does Amendment 2 allow for cities to regulate medical marijuana facilities?

Yes, cities may regulate the “time, place, and manner” of the operation of medical marijuana facilities as long as the regulations are not unduly burdensome on the operation of the medical marijuana facility. Also, Amendment 2 includes a requirement that a medical marijuana facility may not be initially located within 1000 feet of any then-existing elementary or secondary school, child daycare center, or church; however, this spacing requirement may be decreased if a city chooses.

Does the federal government still consider marijuana to be a controlled substance? What are the implications of this?

Yes, the federal government still considers marijuana to be a controlled substance. One of the significant implications of this is that the Americans with Disabilities Act’s reasonable accommodation standard is most likely not applicable to the use of medical marijuana because it is still considered illegal drug use at the

Federal level. See James v. City of Costa Mesa, 700 F.3d 394 (9th Cir. 2012)

Do local offense ordinances making possession of Marijuana illegal need to be amended?

Yes. Amendment 2 makes the possession of marijuana, specifically medical marijuana, legal for qualifying patients and medical marijuana facilities. However, any amendment to local offense ordinances pertaining to the possession of marijuana should be carefully drafted, as possession of medical marijuana is still illegal under certain circumstances. See Article XVI, Section 5(1) Missouri Constitution.

Padraic Corcoran is an attorney with Williams & Campo, P.C. Contact him at (816) 524-4646 or pcorcoran@publiclawfirm.com.

WELCOMING OUR NEWEST ATTORNEYS Call Nathan Nickolaus or Julian Hartner for your municipal law needs

Nathan Nickolaus

nnickolaus@laubermunicipal.com

Julian Hartner

jhartner@laubermunicipal.com

www.laubermunicipallaw.com • 816-525-7881 The choice of a lawyer is an important decision and should not be based solely on advertisements.

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LOCAL GOVERNMENT Review

First Amendment Webinar In December, MML hosted a webinar regarding citizens who visit local government facilities to live stream or upload their interactions with city staff. Citizens are using everything from standard cell phones to more sophisticated video recording devices to capture these interactions. Some individuals have found a niche video market for their visits to public places such as court houses, post offices and city halls. The individuals posting these videos are generally very knowledgeable about their rights as citizens to enter public buildings and the use of cameras. The webinar focused on providing public office employees, as well as police officers with training on how to best respond to these situations.

Panelists included Patrick Bonnot, Member Services Director, MIRMA; Glenn Price, Claims and Litigation Director, MIRMA; Chief Greg Dagnan, Carthage Police Department; and Nathan Nickolaus, Attorney, Lauber Municipal Law If you missed the webinar, it is available for download at www.mocities.com/webinars. The city of Nixa provides some important tips below that they use for their employees.

• •

• •

It is okay for people to record video and photos in public areas of municipal facilities. Stay calm and use your best customer service skills.

Employees do not have to confront people recording video in a public space. It may feel intimidating, but as long as they stay out of secure areas and bathrooms, it is legal.

If you feel you need help handling the situation, please call the city manager/administrator, or other appropriate municipal staff.

Call the police department if you feel threatened or that a situation is dangerous.

•

Ask kindly if you may offer assistance. Try sincerely to be helpful. If the visitors do not want assistance, then ignore them.

• It is recommended that employees do not leave the visitors alone.

• Calmly advise other customers or visitors to city facilities that the person seems to be recording video, so other visitors may want to be careful with what is available to be seen by the video camera such as IDs, applications and credit cards.

• If you are asked to provide your name, staff may display an ID badge or provide just your first name if preferred.

It is recommended you introduce yourself just as you would introduce yourself to a regular customer.

• If you are asked a difficult question, refer to the city manager/administrator or other appropriate staff.

• If you are asked why they cannot go beyond a locked door, explain that cities keep sensitive records including personal information such as social security numbers, fingerprint cards, billing records, that they are not allowed to see.

• If they ask to fill out an open records request, refer them to city hall. Tell them the municipality will follow statute by acknowledging open records request within Protect your growing community! three days and will respond according to statute.

Risk management is our priority.

• Many of these so called “auditors” Mirma.org 573-817-2554 are simply trying to get under your skin to provoke a reaction. Ignoring them may Providing work comp, auto, property, liability coverages, be the best answer if they are not blatantly and so much more for municipalities since 1981. breaking any laws.

Missouri’s Municipal Trust

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theReview January/February 2019

LOCAL GOVERNMENT Review

by Ramona Huckstep

Partners in Governance Conference: A Deeper Dive Into Local Government Partners — we all need them. Partners can provide input and suggestions, give us a more united voice, and support us as we work through challenges.

That is one of the overarching themes of the Partners in Governance Conference, held each spring on the University of Missouri campus in Columbia.

April 17, 2019, will be the fifth annual Partners in Governance Conference where local leaders from across Missouri will gather for a oneday conference. This year will focus on best management practices to bridge resources to strengthen community safety. The theme invites local leaders who represent cities, school, counties and other local, state and federal partners to “Build Bridges to a Safer Community.”

Tornados, earthquakes, shootings, drug overdoses, floods – these are just a few of the situations that local, state and federal governments and organizations must be prepared for in their community and in their state.

The goal of this conference is to share, discuss and learn ways that local groups work together and to grow that partnership. Following the Scout Motto of “always be prepared” these local government entities can learn from each other and be as prepared as possible for whatever situation might negatively impact their community.

Being proactive is often key to most emergency situations. However, emergencies still happen, so knowing the role of the various groups and setting up a network to get communities back on track is the next important step. This conference will provide attendees with opportunities to share their experiences

as well as learn about new initiatives in safety from other organizations and how best to incorporate those initiatives into a useful plan.

This conference series is a collaboration between partners: The Missouri Municipal League, the Institute for Public Policy at the University of Missouri-Columbia, the Missouri School Board Association, the Missouri Association of Counties and Focus on St. Louis. The underlying principle for the conference series is an in-depth discussion of crucial, but often overlooked elements of the political process. Each of the Partners in Governance partners bring a unique perspective to this collaboration. By joining forces, it is the hope of this group to create a forum where important aspects of the process of political decision-making are explored in a systematic, nonpartisan manner. It draws on each partner’s expertise to provide practical governance insights, as well as a deeper understanding of the dynamics, issues, values and consequences involved.

This year’s focus on safety will bring together people from various fields and areas within government at many levels, academia and other experts to share their experiences and offer their perspective on the issue.

Since its founding in 2015, the goal of Partners in Governance has been to explore important current events in the context of American Federalism

and to address the challenges facing all levels of government in today’s political, social and technological environment.

Just as all levels of government – local, state, and federal – must work together, Partners in Governance reflects a collaboration between its partners. In this collaborative effort, the Missouri Municipal League contributes a vast wealth of experience with local governance. The Public Policy Institute provides rigorous policy analysis and research into the many facets of the public sector. The Missouri School Boards Association brings the significant perspective of the local school boards and the importance of ensuring that local communities are connected to their public schools.

The Missouri Association of Counties provides the valuable view of counties and serving the best interests of the local communities. Finally, Focus on St. Louis offers a unique focus on foundational values and their application in the public sphere.

Together these organizations provide a powerful combination of resources to government officials around the state working to strengthen the communities they serve.

Mark your calendar for April 17, 2019, and plan on attending the 5th Annual Partners in Governance Conference in Columbia, MO. The cost for this oneday training is $75 and includes parking on the university campus, continental breakfast, lunch, and a host of amazing panelists, presenters and partners. We look forward to seeing you there!

Ramona Huckstep is a policy and member asociate with the Missouri Municipal League.

Contact her at (573) 635-9134 or Rhuckstep@ mocities.com.

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MEMBERS' Notes MML Calendar of Events January 2019 9 ����� Missouri General Assembly Convenes 15 ����� Last Day For Candidate Filing 21 ����� Martin Luther King Jr. Day: MML Offices Closed

Wentzville Mayor's Award Wentzville Mayor Nick Guccione recently presented the Mayor’s Award to Kara Roberson, Wentzville communications manager, for her outstanding service to the City.

22 ����� Final Certification To Election Authority 24 ����� MCMA Winter Workshop, Columbia, Missouri

February 2019 6 ����� MML Webinar: Social Media Philosophy, Practice and Policy 12-13 ����� MML Legislative Conference, Jefferson City, Missouri 18 ����� Presidents' Day: MML Office Closed 28 ����� MML Webinar: Rejuvenating Downtown

March 2019

City Clerk Certifications Congratulations to the following city clerks on earning new professional development certifications: Patricia Fisher, city of Maysville, Missouri Professional City Clerk; Becky Schimmel, city of Grandview, Missouri Professional City Clerk; Kim Hudson, city of St. Charles, Missouri Registered City Clerk.

1 ����� MML Innovation Award Submissions Deadline 7 ����� MML Webinar: The Workforce Of The Future

Traeger Award Winners

10-13 ����� NLC Congressional Cities Conference, Washington, D.C.

Congratulations to Missouri’s Traeger Award winners for 2018! The awards are presented by Emerging Local Government Leaders (ELGL) each year and recognize an individual’s influence in their community and professional associations. This year’s Missouri winners include: Sarah Marie Martin, director, MySidewalk, Kansas City; Shelby Teufel, city administrator, Pleasant Hill; Rick User, assistant city manager, Kansas City; and Kim Nakahodo, assistant city manager, North Kansas City.

10-14 ����� MoCCFOA Spring Institute, Columbia, Missouri 15-22 ����� Missouri Legislative Spring Break 25-27 ����� Main Steet Now Conference, Seattle, Washington

April 2019 2 ����� Municipal Election Day 14-20 ����� Missouri Local Government Week 17 ����� 5th Annual Partners in Governance Conference, Columbia, Missouri 22-26 ����� Heartland Economic Development Course, Blue Springs, Missouri 30-May 3 ��� MCMA Spring Conference, Lake Ozark, Missouri Find more events and details on www.mocities.com and in the MML monthly e-newsletter.

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theReview January/February 2019