2013 Kentucky Revised Statutes CHAPTER 65 - GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.7063 Requirements for local participation agreements -- Pledge of incremental revenues superior to other pledges of revenues.
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65.7063 Requirements for local participation agreements -- Pledge of
incremental revenues superior to other pledges of revenues.
(1)
(2)
A local participation agreement shall be executed among the agencies and
taxing districts involved in administering or providing financing or pledging
incremental revenues to support the implementation of a development plan in a
development area. The local participation agreement shall be adopted by a city
or county by ordinance and by any other taxing authority or agency by
resolution, and shall include but not be limited to the following provisions:
(a) Identification of the parties to the local participation agreement and the
duties and responsibilities of each entity under the agreement;
(b) Specific identification of the incremental revenues released or pledged, or
wage assessments 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 participation 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 development area, including a legal
description of the parcels included in the development area;
(e) A description of each proposed project that is the subject of a local
participation agreement, 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 established 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 participation 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 participation 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 participation
agreement, supersede any statute, ordinance, or resolution regarding the
application or use of incremental revenues. An ordinance in conflict with a local
participation agreement shall not 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. 10, effective July 15, 2008. -Created 2007 Ky. Acts ch. 95, sec. 12, effective March 23, 2007.
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