2011 Kentucky Revised Statutes CHAPTER 65 GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.6971 Development area for infrastructure development -- Application -- Approval -- Ordinance creating area -- Increment amounts -- Grant contracts -- Portion of increment due from each taxing district -- Financing account -- Reports -- Operating procedures -- Obligation of Department of Revenue and agency.
KY Rev Stat § 65.6971 (1996 through Reg Sess) What's This?
65.6971 Development area for infrastructure development -- Application -Approval -- Ordinance creating area -- Increment amounts -- Grant contracts - Portion of increment due from each taxing district -- Financing account -Reports -- Operating procedures -- Obligation of Department of Revenue and
agency.
(1)
(2)
(3)
A city, county, or agency shall submit an application to the Cabinet for Economic
Development for approval of a development area for infrastructure development
which includes revenues from the Commonwealth, the standards for which the
Cabinet for Economic Development and the Tourism, Arts and Heritage Cabinet
shall establish through their operating procedures or by the promulgation of
administrative regulations in accordance with KRS Chapter 13A. The Cabinet for
Economic Development shall determine whether the development area described in
the application constitutes a project of the type described in this section. The
Cabinet for Economic Development, upon its determination, shall assign the
application to the economic development authority or the tourism development
authority, as appropriate, for further consideration and approval.
A development area for purposes of infrastructure development shall:
(a) 1.
Consist of at least fifty (50) acres of undeveloped land, unless approved
otherwise by the economic development authority or the tourism
development authority in consideration of the geography of the area; or
2.
Consist of at least one (1) acre constituting a brownfield site; and
(b) 1.
In the case of an economic development project, be under the control of,
owned by, and operated by an agency at the commencement date; or
2.
In the case of a tourism attraction project, be under the control of, leased
by, owned by, or operated by an agency at the commencement date.
With respect to each city, county, or agency that applies to the economic
development authority or the tourism development authority for approval of a
development area for infrastructure development, the economic development
authority or the tourism development authority shall request materials and make all
inquiries concerning the application the economic development authority or the
tourism development authority deems necessary. Upon review of the application
and requested materials, and completion of inquiries, the economic development
authority or the tourism development authority may grant approval for:
(a) The development area for infrastructure development;
(b) Each project for which an application has been submitted to be located in the
development area for infrastructure development, provided that each project
approved for location in the development area for infrastructure development
meets the criteria necessary in order to qualify for inducements under
subchapters 22, 24, or 28 of KRS Chapter 154, or satisfies the requirements of
a tourism development attraction defined under KRS 148.851;
(c) The percentage of the Commonwealth’s portion of the increment that the
Commonwealth agrees to distribute to the agency each year during the term of
the grant contract;
(d)
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The maximum amount of costs for infrastructure development for which the
increment may be distributed to the agency; and
(e) The master agreement constituting a grant contract and any addendum for
each project approved for location in the development area for infrastructure
development.
Prior to any approval by the economic development authority or the tourism
development authority, the economic development authority or the tourism
development authority shall have received an ordinance adopted by the city or
county creating the development area and establishing the percentage of increment
that the city and county are distributing each year to the agency for use in the
infrastructure development of the development area for which economic
development authority or the tourism development authority approval is sought. The
economic development authority or the tourism development authority shall not
approve a percentage of the Commonwealth’s portion of the increment to be
distributed to the agency each calendar year with respect to a development area for
infrastructure development greater than the percentage approved by the city or
county creating the development area.
The maximum amount of increment available for development areas for
infrastructure development is one hundred percent (100%).
The terms and conditions of each grant contract, including the master agreement
constituting a grant contract and any addenda, are subject to negotiations between
the economic development authority or the tourism development authority and the
other parties to the grant contract. The grant contract shall include but not be limited
to the following provisions: the activation date, the taxes to be included in the
calculation of the increment, the percentage increment to be contributed by each
taxing district, the maximum amount of infrastructure development costs, a
description of the development area, the termination date, subject to extension
through each addendum, and the requirement of the agency to annually certify to the
economic development authority or the tourism development authority as to the use
of the increment for payment of infrastructure development costs.
(a) Any agency that enters into a grant contract for the release of any increments
that may arise during the period of a grant contract shall, after each calendar
year a grant contract is in effect, notify each taxing district obligated under the
grant contract that an increment is due, and, in consultation with each taxing
district, determine the respective portion of the total increment due from each
taxing district. The agency shall then present the total increment due from the
Commonwealth under the grant contract to the Department of Revenue for
certification.
1.
Upon notice from the agency, each taxing district obligated under the
grant contract, other than the Commonwealth, shall release to the agency
the respective portion of the total increment due under the grant contract.
The agency shall certify to the Department of Revenue on a calendar
year basis the amount of the increment collected.
2.
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Upon certification of the total increment due from the Commonwealth
by the Department of Revenue, the department is authorized and
directed to transfer the increment to a tax increment financing account
established and administered by the Finance and Administration Cabinet
for payment of the Commonwealth’s portion of the increment. Prior to
disbursement by the Finance and Administration Cabinet of the funds
from the tax increment financing account, the economic development
authority or the tourism development authority shall notify the Finance
and Administration Cabinet that the agency is in compliance with the
terms of the grant contract. Upon notification, the Finance and
Administration Cabinet is authorized and directed to release to the
agency the Commonwealth's portion of the total increment due under the
grant contract.
(b) The Department of Revenue shall report to the economic development
authority or the tourism development authority on a calendar year basis the
amount of the total increment released to an agency.
The Department of Revenue shall have the authority to establish operating
procedures for the administration and determination of the Commonwealth's
increment.
The Department of Revenue or agency shall have no obligation to refund or
otherwise return any of the increment to the taxpayer from whom the increment
arose or is attributable. Further, no additional increment resulting from audit,
amended returns or other activity for any period shall be transferred to the tax
increment financing account after the initial release to the agency of the
Commonwealth’s increment for that period.
Effective: June 25, 2009
History: Amended 2009 Ky. Acts ch. 16, sec. 9, effective June 25, 2009. -- Amended
2005 Ky. Acts ch. 85, sec. 90, effective June 20, 2005; and ch. 95, sec. 12, effective
June 20, 2005. -- Created 2002 Ky. Acts ch. 338, sec. 14, effective July 15, 2002.
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