2013 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.
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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.
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(2)
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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)
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The percentage of the Commonwealths portion of the increment that the
Commonwealth agrees to distribute to the agency each year during the
term of the grant contract;
(d) 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 Commonwealths 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
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collected.
2.
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 Commonwealths 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
Commonwealths 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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