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148.855 Evaluation standards -- Tourism attraction project applications -Consulting services -- Optional interagency review -- Cabinet
recommendations.
(1)
(2)
(3)
(4)
The cabinet shall promulgate administrative regulations in accordance with
KRS Chapter 13A to establish standards for the making of applications for
incentives and the recommendation of eligible companies and their tourism
development projects to the authority.
The cabinet shall consult with the authority when establishing standards to
ensure that standards established pursuant to subsection (1) of this section
and KRS 148.857(1) do not conflict.
(a) The application for incentives shall be filed with the cabinet and shall
include:
1.
The name of the applicant;
2.
Marketing plans for the tourism development project that target
individuals who are not residents of the Commonwealth;
3.
A description and location of the tourism development project;
4.
Capital and other anticipated expenditures for the tourism
development project that indicate that the total cost of the project
shall exceed the minimum required costs as provided in KRS
148.853, and the anticipated sources of funding therefor;
5.
The anticipated employment and wages to be paid at the tourism
development project;
6.
Business plans which indicate the average number of days in a year
in which the tourism development project will be in operation and
open to the public;
7.
The anticipated revenues and expenses generated by the tourism
development project;
8.
If the tourism development project is an entertainment destination
center project, the application shall include the public infrastructure
purpose; and
9.
Any other information as required by the cabinet.
(b) Based upon a review of these materials, if the cabinet determines that the
eligible company and the proposed tourism development project appears
to meet the requirements established by KRS 148.853, and that the
proposed tourism development project may reasonably satisfy the criteria
for final approval in subsection (4) of this section, the secretary of the
cabinet may submit a written request to the authority for a preliminary
approval of the eligible company and the tourism development project.
The authority may review the request submitted by the secretary, including all
relevant materials, and may, based upon that review, grant preliminary
approval to an eligible company. Upon a preliminary approval by the authority,
the cabinet shall engage the services of a competent consulting firm to analyze
the data made available by the eligible company and to collect and analyze
additional information necessary to determine that, in the independent
judgment of the consultant, the proposed tourism development project:
(a)
(5)
(6)
Will attract, in all years following the third year of operation, at least
twenty-five percent (25%) of its visitors from among persons who are not
residents of the Commonwealth, except for a theme restaurant
destination attraction project, which shall attract, in all years following the
third year of operation, a minimum of fifty percent (50%) of its visitors from
among persons who are not residents of the Commonwealth;
(b) Will have costs in excess of the minimum amount required by KRS
148.853;
(c) 1.
Will have a net positive fiscal impact on the Commonwealth
considering, among other factors, the extent to which the proposed
tourism development project will compete directly with existing
tourism attractions or previously approved tourism development
projects in the Commonwealth and the amount by which increased
tax revenues from the tourism development project will exceed the
incentives given to the approved company at the maximum level of
recovery of approved costs as provided in KRS 148.853; or
2.
If the independent consultant determines that the proposed tourism
development project cannot produce a net positive fiscal impact to
the Commonwealth at the maximum level of recovery of approved
costs as provided in KRS 148.853, the independent consultant shall
determine the level of recovery, if any, at which the proposed
tourism development project can meet those standards;
(d) Will produce sufficient revenues and public demand to be operating and
open to the public for a minimum of one hundred (100) days per year,
except for a theme restaurant destination attraction, which shall be
operating and open to the public for a minimum of three hundred (300)
days per year;
(e) Will not adversely affect existing employment in the Commonwealth; and
(f) Meets all other requirements of KRS 148.851 and 148.853.
The independent consultant, in determining the amount of net positive fiscal
impact to the Commonwealth for a new proposed tourism development project
that is an expansion of an existing tourism development project shall not
consider positive fiscal impacts from the following sources:
(a) Increased operations at the previously approved tourism development
project that is being expanded by the proposed tourism development
project;
(b) Increased operations at any other tourism development project approved
for incentives provided under KRS 148.853; or
(c) Increased operations at any project approved for tax increment financing
that includes state revenues approved pursuant to Subchapter 30 of KRS
Chapter 154.
(a) The independent consultant shall consult with the authority, the Office of
the State Budget Director and the Finance and Administration Cabinet in
the development of a report on the proposed tourism development
project.
(b) The Office of the State Budget Director and the Finance and
(7)
(8)
(9)
Administration Cabinet shall agree as to the methodology to be used and
assumptions to be made by the independent consultant in preparing its
report.
(c) On the basis of the independent consultant's report and prior to any final
approval of a project by the authority, the Office of the State Budget
Director and the Finance and Administration Cabinet shall certify to the
authority whether there is a projected net positive fiscal impact to the
Commonwealth and the expected amount of incremental state revenues
from the tourism development project. A final approval shall not be
granted if it is determined that there is no projected net positive fiscal
impact to the Commonwealth.
The eligible company shall pay for the cost of the consultant's report and shall
cooperate with the consultant and provide all of the data that the consultant
deems necessary to make its determination under subsection (4) of this
section.
In lieu of the independent consultant analysis required in subsection (4) of this
section, if the eligible company is exempt from income tax under Section
501(c)(3) of the Internal Revenue Code and the estimated approved costs are
less than ten million dollars ($10,000,000), the cabinet shall have the option of
performing an interagency review to analyze the data made available by the
eligible company and to collect and analyze additional information necessary to
determine that the proposed tourism development project meets the
requirements set forth in subsection (4)(a) of this section. The cabinet shall
comply with the same consulting and reporting requirements as an
independent consultant.
After a review of relevant materials, the consultant's report, and completion of
other inquiries, the secretary shall, by written notification to the authority,
provide a recommendation to the authority regarding final approval of the
tourism development project.
Effective:June 26, 2009
History: Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 38, effective June
26, 2009. -- Amended 2009 Ky. Acts ch. 16, sec. 28, effective June 25, 2009. -Amended 2005 Ky. Acts ch. 85, sec. 564, effective June 20, 2005; and ch. 95,
sec. 25, effective June 20, 2005. -- Amended 2003 Ky. Acts ch. 73, sec. 4,
effective March 18, 2003. -- Repealed, reenacted, and amended 2001 Ky. Acts
ch. 1, sec. 4, effective June 21, 2001. -- Amended 1998 Ky. Acts ch. 48, sec. 12,
effective July 15, 1998; and ch. 238, sec. 2, effective April 1, 1998. -- Created
1996 Ky. Acts ch. 335, sec. 3, effective July 15, 1996.
Formerly codified as KRS 154.29-030.
Legislative Research Commission Note (1/25/2009). This is former KRS
154.29-030 as amended by 2001 Ky. Acts ch. 4, sec. 3, and renumbered by the
Reviser of Statutes under KRS 7.136(1).
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