2013 Kentucky Revised Statutes CHAPTER 65 - GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.7047 Establishment of local development areas -- Conditions for establishment -- Steps for establishment or modification -- Funding -- Execution of agreement -- Pledge of revenues.
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65.7047 Establishment of local development areas -- Conditions for
establishment -- Steps for establishment or modification -- Funding -Execution of agreement -- Pledge of revenues.
(1)
(2)
Any city or county may establish a local development area pursuant to this
section, subject to the following conditions:
(a) A local development area shall be on previously undeveloped land;
(b) No more than one thousand (1,000) acres shall be approved for a local
development area in any twelve (12) month period in any county;
(c) The establishment or expansion of the local development area shall not
cause the assessed value of taxable real property within all local
development areas and development areas of the city or county
establishing the local development area to exceed twenty percent (20%)
of the assessed value of all taxable real property within its jurisdiction. For
the purpose of determining whether the twenty percent (20%) threshold
has been met, the assessed value of taxable real property within all of the
local development areas and development areas shall be valued as of the
establishment date; and
(d) Unless the ordinance establishing a local development area requires an
earlier termination date, a local development area shall cease to exist on
the termination date.
A city or county shall take the following steps to establish or modify a local
development area:
(a) The city or county shall hold a public hearing to solicit input from the
public regarding the local development area. The city or county shall
advertise the hearing by causing to be published, in accordance with KRS
424.130, notice of the time, place, and purpose of the hearing and a
general description of the boundaries of the proposed local development
area. The notice shall include a summary of the projects proposed for the
local development area;
(b) After the public hearing, the city or county shall adopt an ordinance which
shall include the following provisions:
1.
A description of the boundaries of the local development area;
2.
The establishment date and the termination date;
3.
A name for the local development area for identification purposes;
4.
Approval of any agreements relating to the local development area;
5.
A provision establishing a special fund for the local development
area or any project within the local development area;
6.
A requirement that any entity other than the governing body that
receives financial assistance under the local development area
ordinance, whether in the form of a grant, loan, or loan guarantee,
shall make periodic accounting to the governing body;
7.
A provision for periodic analysis and review by the governing body
of the development activity in the local development area;
8.
Designation of the agency or agencies responsible for oversight,
administration, and implementation of the local development
(3)
(4)
(5)
ordinance; and
9.
Any other provisions, findings, limitations, rules, or procedures
regarding the proposed local development area or a project within
the local development area and its establishment or maintenance
deemed necessary by the city or county; and
(c) If incremental revenues or other resources are to be pledged from taxing
districts other than the city or county establishing the local development
area, a local development area agreement shall be executed in
accordance with the provisions of subsection (4) of this section.
Funding for projects in a local development area shall be provided in
accordance with KRS 65.7057.
A local development area agreement shall be executed among the agencies
and taxing districts involved in administering, providing financing, or pledging
incremental revenues within the local development area. The local
development area agreement shall be adopted by a city or county by ordinance
and by any other taxing district or agency by resolution, and shall include but
not be limited to the following provisions:
(a) Identification of the parties to the local development area agreement and
the duties and responsibilities of each entity under the agreement;
(b) Specific identification of the tax increments released or pledged by type of
tax by each taxing district;
(c) The anticipated benefit to be received by each taxing district for the
release or pledge, including:
1.
A detailed summary of old revenues collected and projected new
revenues for each taxing district on an annual basis for the term of
the local development area agreement; and
2.
The maximum amount of incremental revenue to be paid by each
taxing district and the maximum number of years the payment will
be effective;
(d) A detailed description of the local development area;
(e) A description of each proposed project, including an estimate of the costs
of construction, acquisition, and development;
(f) A requirement that pledged incremental revenues will be deposited in a
special fund pursuant to KRS 65.7061, including the timing and procedure
for depositing incremental revenues and other pledged amounts into the
special fund;
(g) Terms of default and remedies, provided that no remedy shall permit the
withholding by any party to the local development area agreement of any
incremental revenues pledged to the special fund if increment bonds are
outstanding that are secured by a pledge of those incremental revenues;
(h) The commencement date, activation date, and termination date; and
(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083
deemed necessary or appropriate by the parties to the agreement.
Any pledge of incremental revenues in a local development area agreement
shall be superior to any other pledge of revenues for any other purpose and
shall, from the activation date to the termination date set forth in the local area
development agreement, supersede any statute, ordinance, or resolution
regarding the application or use of incremental revenues. No ordinance in
conflict with a local development area agreement shall be adopted while any
increment bonds secured by that pledge remain outstanding. Ordinances or
resolutions pledging incremental revenues on a subordinate basis to any
existing pledges may be adopted.
Effective:July 15, 2008
History: Amended 2008 Ky. Acts ch. 178, sec. 3, effective July 15, 2008. -Created 2007 Ky. Acts ch. 95, sec. 4, effective March 23, 2007.
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