2013 Kentucky Revised Statutes CHAPTER 148 - PARKS AND TOURISM 148.854 Legacy expansion projects -- Purpose -- Eligibility for incentives -- Incentives available -- Application, approval, and monitoring process -- Term of agreement -- Analysis of positive fiscal impact -- Legislative findings.
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148.854 Legacy expansion projects -- Purpose -- Eligibility for incentives -Incentives available -- Application, approval, and monitoring process -Term of agreement -- Analysis of positive fiscal impact -- Legislative
findings.
(1)
(2)
(3)
(4)
(5)
(6)
As used in this section:
(a) "Legacy expansion project" means an expansion project approved under
this section; and
(b) "Premier event" means a sports event that:
1.
Is in the premier series or top sanctioned level of all similar types of
events staged on a national basis; and
2.
Is broadcast nationally.
The purpose of this section is to encourage the location of premier events in
the Commonwealth.
To qualify for incentives under this section, an eligible company or its assignee
shall:
(a) Have an existing project under KRS 148.851 to 148.860 that was
approved prior to June 26, 2009;
(b) Invest a minimum of thirty million dollars ($30,000,000) in the expansion
of the previously approved project;
(c) Present one (1) or more new premier events on an annual basis at the
legacy expansion project site. As used in this paragraph, "new premier
event" means a premier event that was not presented at the existing
project prior to approval of the legacy expansion project; and
(d) Include a facility with a permanent seating capacity of sixty-five thousand
(65,000) or more, where premier events will be held.
An approved company meeting the requirements established by subsection (3)
of this section shall be eligible to recover the following:
(a) Up to twenty-five percent (25%) of the approved costs expended for the
legacy expansion project; and
(b) One hundred percent (100%) of any amounts outstanding under the
agreement for the original project between the approved company, or any
assignee of the approved company, and the authority.
To obtain the incentives authorized pursuant to this section, an eligible
company that meets the requirements of subsection (3) of this section shall file
an application for a legacy expansion project with the authority. The legacy
expansion project shall be reviewed and evaluated as a new project under
KRS 148.851 to 148.860, and the application and review process established
in KRS 148.851 to 148.860 shall apply, except as otherwise provided in this
section. The cabinet may establish requirements and guidelines for the review
and approval of projects under this section that are different from, or in addition
to the requirements and guidelines established for the review of projects in
general under KRS 148.851 to 148.860.
(a) The application required under subsection (5) of this section shall include
a plan describing the eligible company's efforts to promote the hiring of
Kentucky residents to be employed in the construction and operation of
the legacy expansion project.
1.
The plan shall be submitted in a format, and with sufficient detail to
demonstrate that the eligible company has evaluated the following
factors in the development of its plan:
a.
An analysis of its specific need to employ particular
occupations, skills, trades, and technical expertise in the
construction and operation of the legacy expansion project;
b.
An estimate of the total number of individuals expected to be
employed in the construction and operation of the legacy
expansion project, which shall include a categorization of
construction phase and operational phase employment
projections;
c.
An analysis of the specific need to employ individuals skilled in
specialized tasks or in the operation of specialized equipment
unique to the construction or operation of the legacy expansion
project, together with an evaluation of the availability of
sufficiently skilled laborers within the Commonwealth who may
be employed to perform the specialized tasks identified or to
work with particular specialized equipment;
d.
An analysis of the labor market conditions in Kentucky
counties in the vicinity of the legacy expansion project at the
time construction of the project is ongoing and during the time
at which operations at the project commence, which shall
include the eligible company's estimates of the availability of
Kentucky laborers of sufficient skill, training, and expertise to
perform the work the company requires, during both the
construction and operational phases of the project; and
e.
An analysis of any other factor the authority and the eligible
company may agree upon.
2.
The plan may include any other items the authority and the eligible
company may agree upon.
3. a.
The plan may include an expression of hiring targets and
preferences for Kentucky residents in a format and with the
detail that the authority and eligible company may agree upon.
b.
The benchmark hiring target for the construction phase shall
be to hire one hundred percent (100%) of contractors from
contractors with facilities in Kentucky, and the benchmark
hiring target for the operations phase shall be the employment
of workers, of whom at least seventy-five percent (75%) are
Kentucky residents.
c.
Notwithstanding the benchmark targets established by
subdivision b. of this subparagraph, the authority and eligible
company may agree upon specific hiring targets after
consideration of the analyses required by subparagraph 1. of
this paragraph.
d.
The plan may set forth preferences for use of materials
(7)
(8)
manufactured in Kentucky, so long as they are competitively
priced.
e.
In no event shall hiring benchmarks, hiring targets, or any
preferences take precedence over the results of a competitive
bidding process.
(b) The authority shall not approve the application required by subsection (5)
of this section until the eligible company has submitted the plan required
by this subsection, and the plan has been evaluated and approved by the
authority.
(c) An approved company shall report annually to the authority concerning its
compliance with the terms of its plan.
(d) The authority shall review the annual reports filed by an approved
company in relation to an approved company's approved plan to
determine compliance with the plan. If the authority determines that the
approved company has substantially failed to comply with the terms of its
plan, the authority may take reasonably necessary measures to ensure
compliance with the plan, including but not limited to the withholding of
the incentives authorized by this section. If the authority has determined
that the approved company has substantially failed to comply with the
terms of its plan, it shall provide the eligible company with written notice of
this determination, and the eligible company shall be provided a
reasonable opportunity to cure any deficiencies prior to the withholding of
any incentives.
(a) The initial term of an agreement entered into under this section shall be
ten (10) years. During each year of the agreement term, the approved
company shall be eligible to recover one-tenth (1/10) of the total
incentives approved by the authority.
(b) If, at the end of the original ten (10) year term of the legacy expansion
project agreement, the approved company has not claimed all of the
approved incentives available under the legacy expansion project
agreement, the authority shall extend the term of the agreement by one
(1) year for each year during the original ten (10) year term of the
agreement that the approved company met or exceeded the requirements
established by subsection (3)(c) of this section. The term of the legacy
expansion project agreement, including all extensions, shall not exceed
twenty (20) years, and the amount of recovery during each year that the
agreement is extended shall be determined on a pro rata basis, based
upon the total number of years for which the agreement is extended.
The Kentucky General Assembly recognizes that the benefits accruing to the
Commonwealth from a legacy expansion project include benefits beyond those
that would typically be considered in making the determination required by
KRS 148.855(4)(c). Therefore, the analysis of positive fiscal impact required by
KRS 148.855(4)(c) and (5) shall include an accounting of the following social
benefits:
(a) The positive impact that the legacy expansion project will have on the
existing tourism attraction project;
(b) The positive impact the legacy expansion project will have on other
(c)
tourism attractions that will receive increased visitation due to the
existence of the legacy expansion project; and
The positive impacts that will accrue to the economy of the
Commonwealth from the national and international exposure the legacy
expansion project is expected to provide.
Effective:June 26, 2009
History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 55, effective June 26,
2009.
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