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154.30-060 Commonwealth Participation Program for Mixed-Use Redevelopment
in Blighted Urban Areas -- Definitions -- Criteria for state participation -Qualifying expenditures -- Authority review -- Required determinations by the
authority -- Pledge limitations -- Tax incentive agreement required.
(1)
(2)
(3)
The Commonwealth Participation Program for Mixed-Use Redevelopment in
Blighted Urban Areas is hereby established.
State participation under this program shall be limited to the support of approved
public infrastructure costs and costs associated with land preparation, demolition,
and clearance determined to be necessary to support private investment or private
development projects that benefit the public, where project economics are unable to
support or secure necessary financing to undertake the public improvements, land
preparation, demolition, and clearance.
As used in this section:
(a) "Mixed-use" means a project:
1.
That includes at least two (2) qualified uses; or
2.
That meets the requirements established by paragraph (b)2.b. of this
subsection;
(b) 1.
"Qualified use" means:
a.
Retail;
b.
Residential;
c.
Office;
d.
Restaurant; or
e.
Hospitality.
2.
a.
Except as otherwise provided in paragraph (b)2.b. of this
subsection, to be a qualified use the use must comprise at least
twenty percent (20%) of the total finished square footage of the
proposed project or represent twenty percent (20%) of the total
capital investment; and
b.
In any location within the territory of a consolidated local
government or an urban-county government, a project whose uses
do not meet the requirements of paragraph (b)2.a. of this
subsection may qualify as a mixed-use project if all of the
following apply:
i.
The project includes at least three (3) of the uses listed in
paragraph (b)1. of this subsection;
ii. One (1) of those uses meets the requirements of paragraph
(b)2.a. of this subsection; and
iii. The other uses, when combined, jointly comprise at least
twenty percent (20%) of the total finished square footage of
the proposed project or represent twenty percent (20%) of the
total capital investment; and
(c)
(4)
(5)
(6)
(7)
(8)
"Retail" means an establishment predominantly engaged in the sale of tangible
personal property subject to the tax imposed by KRS Chapter 139, but shall
not include restaurants.
To be considered for state participation under this program, a project shall:
(a) Be located in an area that has three (3) or more of the conditions listed in KRS
65.7049(3)(a), or be a project described in KRS 65.7049(3)(b);
(b) Be a mixed-use project;
(c) Represent new economic activity in the Commonwealth;
(d) Result in a capital investment between twenty million dollars ($20,000,000)
and two hundred million dollars ($200,000,000);
(e) Not include any retail establishment that exceeds twenty thousand (20,000)
square feet of finished square footage;
(f) Include pedestrian amenities and public space; and
(g) Result in a net positive economic impact to the Commonwealth, taking into
consideration any substantial adverse impact on existing Commonwealth
businesses. The net positive impact shall be certified to the authority as
required by KRS 154.30-030(6)(b).
The following costs may be recovered pursuant to this section:
(a) Up to one hundred percent (100%) of approved public infrastructure costs;
and
(b) Up to one hundred percent (100%) of expenses for land preparation,
demolition, and clearance necessary for the development to occur.
The commission shall review the application, the certification required by KRS
154.30-030, and supporting information as provided in KRS 154.30-030.
The authority shall specifically identify the state taxes from which incremental
revenues will be pledged. The authority may pledge up to eighty percent (80%) of
the incremental revenues from the identified state tax revenues from the footprint of
the project, provided that the maximum amount of incremental revenues that may
be pledged for a project during the term of the tax incentive agreement from all
approved state taxes shall not exceed the costs and expenses determined under
subsection (5) of this section.
As part of the approval process, the authority shall determine the following:
(a) The footprint of the project;
(b) That the proposed project meets the requirements established by subsection
(4) of this section;
(c) The maximum amount of approved public infrastructure costs and expenses
for land preparation, demolition, and clearance;
(d) That the local revenues pledged to support the public infrastructure of the
project and local revenues pledged to support the overall project are of a
sufficient amount to warrant participation of the Commonwealth in the
project;
(e)
(f)
The termination date of the tax incentive agreement; and
Any adjustments to be made to old revenues, in determining incremental
revenues during each year of the term of the tax incentive agreement.
(9) If state income taxes or local occupational licenses taxes are included for a project
that includes office space, the authority shall consider the impact of pledging these
taxes on the ability to utilize other economic development projects at a later date.
(10) The pledge of state incremental tax revenues of the Commonwealth by the authority
shall be implemented through the execution of a tax incentive agreement between
the Commonwealth and the agency, city, or county in accordance with KRS 154.30070.
Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 105, sec. 1, effective July 15, 2014. -- Amended
2011 Ky. Acts ch. 62, sec. 4, effective June 8, 2011. -- Repealed, reenacted, and
amended 2008 Ky. Acts ch. 178, sec. 19, effective July 15, 2008. -- Created 2007
Ky. Acts ch. 95, sec. 19, effective March 23, 2007.
Formerly codified as KRS 65.7077.
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