Page 1 of 6
65.7045 Definitions for KRS 65.7041 to 65.7083.
As used in KRS 65.7041 to 65.7083: <br>(1) "Activation date" means the date established any time within a two (2) year period
after the commencement date. The activation date is the date on which the time <br>period for the pledge of incremental revenues shall commence. The governing body <br>may extend the two (2) year period to no more than four (4) years upon written <br>application by the agency requesting the extension. To implement the activation <br>date, the agency that is a party to the local participation agreement or the local <br>development area agreement shall notify the governing body that created the <br>development area or local development area;
(2) "Agency" means:
(a) An urban renewal and community development agency established under
KRS Chapter 99;
(b) A development authority established under KRS Chapter 99; <br>(c) A nonprofit corporation; <br>(d) A housing authority established under KRS Chapter 80; <br>(e) An air board established under KRS 183.132 to 183.160; <br>(f) A local industrial development authority established under KRS 154.50-301
to 154.50-346;
(g) A riverport authority established under KRS 65.510 to 65.650; or <br>(h) A designated department, division, or office of a city or county;
(3) "Arena" means a facility which serves primarily as a venue for athletic events, live
entertainment, and other performances, and which has a permanent seating capacity <br>of at least five thousand (5,000);
(4) "Authority" means the Kentucky Economic Development Finance Authority
established by KRS 154.20-010;
(5) "Brownfield site" means real property, the expansion, redevelopment, or reuse of
which may be complicated by the presence or potential presence of a hazardous <br>substance, pollutant, or contaminant;
(6) "Capital investment" means:
(a) Obligations incurred for labor and to contractors, subcontractors, builders, and
materialmen in connection with the acquisition, construction, installation, <br>equipping, and rehabilitation of a project;
(b) The cost of acquiring land or rights in land within the development area on the
footprint of the project, and any cost incident thereto, including recording <br>fees;
(c) The cost of contract bonds and of insurance of all kinds that may be required
or necessary during the course of acquisition, construction, installation, <br>equipping, and rehabilitation of a project which is not paid by the contractor <br>or contractors or otherwise provided;
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(d) All costs of architectural and engineering services, including test borings,
surveys, estimates, plans, specifications, preliminary investigations, <br>supervision of construction, and the performance of all the duties required by <br>or consequent upon the acquisition, construction, installation, equipping, and <br>rehabilitation of a project;
(e) All costs that are required to be paid under the terms of any contract for the
acquisition, construction, installation, equipping, and rehabilitation of a <br>project; and
(f) All other costs of a nature comparable to those described in this subsection;
(7) "City" means any city, consolidated local government, or urban-county government; <br>(8) "Commencement date" means:
(a) The date on which a local development area agreement is executed; or <br>(b) The date on which a local participation agreement is executed;
(9) "Commonwealth" means the Commonwealth of Kentucky; <br>(10) "County" means any county, consolidated local government, charter county, unified
local government, or urban-county government;
(11) "Debt charges" means the principal, including any mandatory sinking fund deposits,
interest, and any redemption premium, payable on increment bonds as the payments <br>come due and are payable and any charges related to the payment of the foregoing;
(12) "Development area" means an area established under KRS 65.7049, 65.7051, and
65.7053;
(13) "Economic development projects" means projects which are approved for tax
credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter <br>154;
(14) "Establishment date" means the date on which a development area or a local
development area is created. If the development area, local development area, <br>development area plan, or local development area plan is modified or amended <br>subsequent to the original establishment date, the modifications or amendments <br>shall not extend the existence of the development area or local development area <br>beyond what would be permitted under KRS 65.7041 to 65.7083 from the original <br>establishment date;
(15) "Governing body" means the body possessing legislative authority in a city or
county;
(16) "Increment bonds" means bonds and notes issued for the purpose of paying the costs
of one (1) or more projects, or grant or loan programs as described in subsection <br>(29)(c) of this section, in a development area or a local development area;
(17) "Incremental revenues" means the amount of revenues received by a taxing district,
as determined by subtracting old revenues from new revenues in a calendar year <br>with respect to a development area, a project within a development area, or a local <br>development area;
(18) "Issuer" means a city, county, or agency issuing increment bonds;
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(19) "Local development area" means a development area established under KRS
65.7047;
(20) "Local development area agreement" means an agreement entered into under KRS
65.7047;
(21) "Local participation agreement" means the agreement entered into under KRS
65.7063;
(22) "Local tax revenues" means:
(a) Revenues derived by a city or county from one (1) or more of the following
sources: <br>1.
Real property ad valorem taxes;
2.
Occupational license taxes, excluding occupational license taxes that <br>have already been pledged to support an economic development project <br>within the development area; and
3.
The occupational license fee permitted by KRS 65.7056; and
(b) Revenues derived by any taxing district other than school districts or fire
districts from real property ad valorem taxes;
(23) "Low-income household" means a household in which gross income is no more
than two hundred percent (200%) of the poverty guidelines updated periodically in <br>the Federal Register by the United States Department of Health and Human <br>Services under the authority of 42 U.S.C. sec. 9902(2);
(24) "New revenues" means the amount of local tax revenues received by a taxing
district with respect to a development area or a local development area in any <br>calendar year beginning with the year in which the activation date occurred;
(25) "Old revenues" means the amount of local tax revenues received by a taxing district
with respect to a development area or a local development area during the last <br>calendar year prior to the commencement date. If the governing body determines <br>that the amount of local tax revenues received during the last calendar year prior to <br>the commencement date does not represent a true and accurate depiction of <br>revenues, the governing body may consider revenues for a period of no longer than <br>three (3) calendar years prior to the commencement date, so as to determine a fair <br>representation of local tax revenues;
(26) "Outstanding" means increment bonds that have been issued, delivered, and paid for
by the purchaser, except any of the following: <br>(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon
payment or redemption;
(b) Increment bonds in replacement of which or in exchange for which other
increment bonds have been issued; or
(c) Increment bonds for the payment, redemption, or purchase for cancellation
prior to maturity, of which sufficient moneys or investments, in accordance <br>with the ordinance or other proceedings or any applicable law, by mandatory <br>sinking fund redemption requirements, or otherwise, have been deposited, and <br>credited in a sinking fund or with a trustee or paying or escrow agent, whether
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at or prior to their maturity or redemption, and, in the case of increment bonds <br>to be redeemed prior to their stated maturity, notice of redemption has been <br>given or satisfactory arrangements have been made for giving notice of that <br>redemption, or waiver of that notice by or on behalf of the affected bond <br>holders has been filed with the issuer or its agent;
(27) "Planning unit" means a planning commission established pursuant to KRS Chapter
100;
(28) "Project" means any property, asset, or improvement located in a development area
or a local development area and certified by the governing body as: <br>(a) Being for a public purpose; and <br>(b) Being for the development of facilities for residential, commercial, industrial,
public, recreational, or other uses, or for open space, including the <br>development,
rehabilitation,
renovation,
installation,
improvement,
enlargement, or extension of real estate and buildings; and
(c) Contributing to economic development or tourism;
(29) "Redevelopment assistance," as utilized within a development area, includes the
following: <br>(a) Technical assistance programs to provide information and guidance to
existing, new, and potential businesses and residences;
(b) Programs to market and promote the development area and attract new
businesses and residents;
(c) Grant and loan programs to encourage the construction or rehabilitation of
residential, commercial, and industrial buildings; improve the appearance of <br>building facades and signage; and stimulate business start-ups and expansions;
(d) Programs to obtain a reduced interest rate, down payment, or other improved
terms for loans made by private, for-profit, or nonprofit lenders to encourage <br>the construction or rehabilitation of residential, commercial, and industrial <br>buildings; improve the appearance of building facades and signage; and <br>stimulate business start-ups and expansions;
(e) Local capital improvements, including but not limited to the installation,
construction, or reconstruction of streets, lighting, pedestrian amenities, public <br>utilities, public transportation facilities, public parking, parks, playgrounds, <br>recreational facilities, and public buildings and facilities;
(f) Improved or increased provision of public services, including but not limited
to police or security patrols, solid waste management, and street cleaning;
(g) Provision of technical, financial, or other assistance in connection with:
1.
Applications to the Energy and Environment Cabinet for a brownfields <br>assessment or a No Further Remediation Letter issued pursuant to KRS <br>224.01-450; or
2.
Site remediation by means of the Voluntary Environmental Remediation <br>Program to remove environmental contamination in the development
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area, or lots or parcels within it, pursuant to KRS 224.01-510 to 224.01-<br>532; and
(h) Direct development by a city, county, or agency of real property acquired by
the city, county, or agency. Direct development may include one (1) or more <br>of the following: <br>1.
Assembly and replatting of lots or parcels;
2.
Rehabilitation of existing structures and improvements;
3.
Demolition of structures and improvements and construction of new <br>structures and improvements;
4.
Programs of temporary or permanent relocation assistance for businesses <br>and residents;
5.
The sale, lease, donation, or other permanent or temporary transfer of <br>real property to public agencies, persons, and entities both for profit and <br>nonprofit; and
6.
The acquisition and construction of projects;
(30) "Service payment agreement" means an agreement between a city, county, or issuer
of increment bonds or other obligations and any person, whereby the person agrees <br>to guarantee the receipt of incremental revenues, or the payment of debt charges, or <br>any portion thereof, on increment bonds or other obligations issued by the city, <br>county, or issuer;
(31) "Special fund" means a special fund created under KRS 65.7061 in which all
incremental revenues shall be deposited;
(32) "Taxing district" means any city, county, or special taxing district other than school
districts and fire districts;
(33) "Tax incentive agreement" means an agreement entered into under KRS 154.30-
070; and
(34) "Termination date" means:
(a) For a development area, a date established by the ordinance creating the
development area that is no more than twenty (20) years from the <br>establishment date. If a tax incentive agreement for a project within a <br>development area or a local participation agreement relating to the <br>development area has a termination date that is later than the termination date <br>established in the ordinance, the termination date for the development area <br>shall be extended to the termination date of the tax incentive agreement, or <br>local participation agreement. However, the termination date for the <br>development area shall in no event be more than forty (40) years from the <br>establishment date;
(b) For a local development area, a date established by the ordinance creating the
local development area that is no more than twenty (20) years from the <br>establishment date, provided that if a local development area agreement <br>relating to the local development area has a termination date that is later than <br>the termination date established in the ordinance, the termination date for the
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local development area shall be extended to the termination date of the local <br>development area agreement;
(c) For a local participation agreement, a date that is no more than twenty (20)
years from the activation date. However, the termination date for a local <br>participation agreement shall in no event be more than forty (40) years from <br>the establishment date of the development area to which the local participation <br>agreement relates; and
(d) For a local development area agreement, a date that is no more than twenty
(20) years from the activation date. However, the termination date for a local <br>development area agreement shall in no event be more than forty (40) years <br>from the establishment date of the local development area to which the <br>development area agreement relates.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 58, effective July 15, 2010. -- Amended
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 57, effective June 26, 2009. -- Amended <br>2008 Ky. Acts ch. 178, sec. 2, effective July 15, 2008. -- Created 2007 Ky. Acts <br>ch. 95, sec. 3, effective March 23, 2007.
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65.7045 Definitions for KRS 65.7041 to 65.7083.
As used in KRS 65.7041 to 65.7083: <br>(1) "Activation date" means the date established any time within a two (2) year period
after the commencement date. The activation date is the date on which the time <br>period for the pledge of incremental revenues shall commence. The governing body <br>may extend the two (2) year period to no more than four (4) years upon written <br>application by the agency requesting the extension. To implement the activation <br>date, the agency that is a party to the local participation agreement or the local <br>development area agreement shall notify the governing body that created the <br>development area or local development area;
(2) "Agency" means:
(a) An urban renewal and community development agency established under
KRS Chapter 99;
(b) A development authority established under KRS Chapter 99; <br>(c) A nonprofit corporation; <br>(d) A housing authority established under KRS Chapter 80; <br>(e) An air board established under KRS 183.132 to 183.160; <br>(f) A local industrial development authority established under KRS 154.50-301
to 154.50-346;
(g) A riverport authority established under KRS 65.510 to 65.650; or <br>(h) A designated department, division, or office of a city or county;
(3) "Arena" means a facility which serves primarily as a venue for athletic events, live
entertainment, and other performances, and which has a permanent seating capacity <br>of at least five thousand (5,000);
(4) "Authority" means the Kentucky Economic Development Finance Authority
established by KRS 154.20-010;
(5) "Brownfield site" means real property, the expansion, redevelopment, or reuse of
which may be complicated by the presence or potential presence of a hazardous <br>substance, pollutant, or contaminant;
(6) "Capital investment" means:
(a) Obligations incurred for labor and to contractors, subcontractors, builders, and
materialmen in connection with the acquisition, construction, installation, <br>equipping, and rehabilitation of a project;
(b) The cost of acquiring land or rights in land within the development area on the
footprint of the project, and any cost incident thereto, including recording <br>fees;
(c) The cost of contract bonds and of insurance of all kinds that may be required
or necessary during the course of acquisition, construction, installation, <br>equipping, and rehabilitation of a project which is not paid by the contractor <br>or contractors or otherwise provided;
Page 2 of 6
(d) All costs of architectural and engineering services, including test borings,
surveys, estimates, plans, specifications, preliminary investigations, <br>supervision of construction, and the performance of all the duties required by <br>or consequent upon the acquisition, construction, installation, equipping, and <br>rehabilitation of a project;
(e) All costs that are required to be paid under the terms of any contract for the
acquisition, construction, installation, equipping, and rehabilitation of a <br>project; and
(f) All other costs of a nature comparable to those described in this subsection;
(7) "City" means any city, consolidated local government, or urban-county government; <br>(8) "Commencement date" means:
(a) The date on which a local development area agreement is executed; or <br>(b) The date on which a local participation agreement is executed;
(9) "Commonwealth" means the Commonwealth of Kentucky; <br>(10) "County" means any county, consolidated local government, charter county, unified
local government, or urban-county government;
(11) "Debt charges" means the principal, including any mandatory sinking fund deposits,
interest, and any redemption premium, payable on increment bonds as the payments <br>come due and are payable and any charges related to the payment of the foregoing;
(12) "Development area" means an area established under KRS 65.7049, 65.7051, and
65.7053;
(13) "Economic development projects" means projects which are approved for tax
credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter <br>154;
(14) "Establishment date" means the date on which a development area or a local
development area is created. If the development area, local development area, <br>development area plan, or local development area plan is modified or amended <br>subsequent to the original establishment date, the modifications or amendments <br>shall not extend the existence of the development area or local development area <br>beyond what would be permitted under KRS 65.7041 to 65.7083 from the original <br>establishment date;
(15) "Governing body" means the body possessing legislative authority in a city or
county;
(16) "Increment bonds" means bonds and notes issued for the purpose of paying the costs
of one (1) or more projects, or grant or loan programs as described in subsection <br>(29)(c) of this section, in a development area or a local development area;
(17) "Incremental revenues" means the amount of revenues received by a taxing district,
as determined by subtracting old revenues from new revenues in a calendar year <br>with respect to a development area, a project within a development area, or a local <br>development area;
(18) "Issuer" means a city, county, or agency issuing increment bonds;
Page 3 of 6
(19) "Local development area" means a development area established under KRS
65.7047;
(20) "Local development area agreement" means an agreement entered into under KRS
65.7047;
(21) "Local participation agreement" means the agreement entered into under KRS
65.7063;
(22) "Local tax revenues" means:
(a) Revenues derived by a city or county from one (1) or more of the following
sources: <br>1.
Real property ad valorem taxes;
2.
Occupational license taxes, excluding occupational license taxes that <br>have already been pledged to support an economic development project <br>within the development area; and
3.
The occupational license fee permitted by KRS 65.7056; and
(b) Revenues derived by any taxing district other than school districts or fire
districts from real property ad valorem taxes;
(23) "Low-income household" means a household in which gross income is no more
than two hundred percent (200%) of the poverty guidelines updated periodically in <br>the Federal Register by the United States Department of Health and Human <br>Services under the authority of 42 U.S.C. sec. 9902(2);
(24) "New revenues" means the amount of local tax revenues received by a taxing
district with respect to a development area or a local development area in any <br>calendar year beginning with the year in which the activation date occurred;
(25) "Old revenues" means the amount of local tax revenues received by a taxing district
with respect to a development area or a local development area during the last <br>calendar year prior to the commencement date. If the governing body determines <br>that the amount of local tax revenues received during the last calendar year prior to <br>the commencement date does not represent a true and accurate depiction of <br>revenues, the governing body may consider revenues for a period of no longer than <br>three (3) calendar years prior to the commencement date, so as to determine a fair <br>representation of local tax revenues;
(26) "Outstanding" means increment bonds that have been issued, delivered, and paid for
by the purchaser, except any of the following: <br>(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon
payment or redemption;
(b) Increment bonds in replacement of which or in exchange for which other
increment bonds have been issued; or
(c) Increment bonds for the payment, redemption, or purchase for cancellation
prior to maturity, of which sufficient moneys or investments, in accordance <br>with the ordinance or other proceedings or any applicable law, by mandatory <br>sinking fund redemption requirements, or otherwise, have been deposited, and <br>credited in a sinking fund or with a trustee or paying or escrow agent, whether
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at or prior to their maturity or redemption, and, in the case of increment bonds <br>to be redeemed prior to their stated maturity, notice of redemption has been <br>given or satisfactory arrangements have been made for giving notice of that <br>redemption, or waiver of that notice by or on behalf of the affected bond <br>holders has been filed with the issuer or its agent;
(27) "Planning unit" means a planning commission established pursuant to KRS Chapter
100;
(28) "Project" means any property, asset, or improvement located in a development area
or a local development area and certified by the governing body as: <br>(a) Being for a public purpose; and <br>(b) Being for the development of facilities for residential, commercial, industrial,
public, recreational, or other uses, or for open space, including the <br>development,
rehabilitation,
renovation,
installation,
improvement,
enlargement, or extension of real estate and buildings; and
(c) Contributing to economic development or tourism;
(29) "Redevelopment assistance," as utilized within a development area, includes the
following: <br>(a) Technical assistance programs to provide information and guidance to
existing, new, and potential businesses and residences;
(b) Programs to market and promote the development area and attract new
businesses and residents;
(c) Grant and loan programs to encourage the construction or rehabilitation of
residential, commercial, and industrial buildings; improve the appearance of <br>building facades and signage; and stimulate business start-ups and expansions;
(d) Programs to obtain a reduced interest rate, down payment, or other improved
terms for loans made by private, for-profit, or nonprofit lenders to encourage <br>the construction or rehabilitation of residential, commercial, and industrial <br>buildings; improve the appearance of building facades and signage; and <br>stimulate business start-ups and expansions;
(e) Local capital improvements, including but not limited to the installation,
construction, or reconstruction of streets, lighting, pedestrian amenities, public <br>utilities, public transportation facilities, public parking, parks, playgrounds, <br>recreational facilities, and public buildings and facilities;
(f) Improved or increased provision of public services, including but not limited
to police or security patrols, solid waste management, and street cleaning;
(g) Provision of technical, financial, or other assistance in connection with:
1.
Applications to the Energy and Environment Cabinet for a brownfields <br>assessment or a No Further Remediation Letter issued pursuant to KRS <br>224.01-450; or
2.
Site remediation by means of the Voluntary Environmental Remediation <br>Program to remove environmental contamination in the development
Page 5 of 6
area, or lots or parcels within it, pursuant to KRS 224.01-510 to 224.01-<br>532; and
(h) Direct development by a city, county, or agency of real property acquired by
the city, county, or agency. Direct development may include one (1) or more <br>of the following: <br>1.
Assembly and replatting of lots or parcels;
2.
Rehabilitation of existing structures and improvements;
3.
Demolition of structures and improvements and construction of new <br>structures and improvements;
4.
Programs of temporary or permanent relocation assistance for businesses <br>and residents;
5.
The sale, lease, donation, or other permanent or temporary transfer of <br>real property to public agencies, persons, and entities both for profit and <br>nonprofit; and
6.
The acquisition and construction of projects;
(30) "Service payment agreement" means an agreement between a city, county, or issuer
of increment bonds or other obligations and any person, whereby the person agrees <br>to guarantee the receipt of incremental revenues, or the payment of debt charges, or <br>any portion thereof, on increment bonds or other obligations issued by the city, <br>county, or issuer;
(31) "Special fund" means a special fund created under KRS 65.7061 in which all
incremental revenues shall be deposited;
(32) "Taxing district" means any city, county, or special taxing district other than school
districts and fire districts;
(33) "Tax incentive agreement" means an agreement entered into under KRS 154.30-
070; and
(34) "Termination date" means:
(a) For a development area, a date established by the ordinance creating the
development area that is no more than twenty (20) years from the <br>establishment date. If a tax incentive agreement for a project within a <br>development area or a local participation agreement relating to the <br>development area has a termination date that is later than the termination date <br>established in the ordinance, the termination date for the development area <br>shall be extended to the termination date of the tax incentive agreement, or <br>local participation agreement. However, the termination date for the <br>development area shall in no event be more than forty (40) years from the <br>establishment date;
(b) For a local development area, a date established by the ordinance creating the
local development area that is no more than twenty (20) years from the <br>establishment date, provided that if a local development area agreement <br>relating to the local development area has a termination date that is later than <br>the termination date established in the ordinance, the termination date for the
Page 6 of 6
local development area shall be extended to the termination date of the local <br>development area agreement;
(c) For a local participation agreement, a date that is no more than twenty (20)
years from the activation date. However, the termination date for a local <br>participation agreement shall in no event be more than forty (40) years from <br>the establishment date of the development area to which the local participation <br>agreement relates; and
(d) For a local development area agreement, a date that is no more than twenty
(20) years from the activation date. However, the termination date for a local <br>development area agreement shall in no event be more than forty (40) years <br>from the establishment date of the local development area to which the <br>development area agreement relates.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 58, effective July 15, 2010. -- Amended
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 57, effective June 26, 2009. -- Amended <br>2008 Ky. Acts ch. 178, sec. 2, effective July 15, 2008. -- Created 2007 Ky. Acts <br>ch. 95, sec. 3, effective March 23, 2007.
Page 1 of 6
65.7045 Definitions for KRS 65.7041 to 65.7083.
As used in KRS 65.7041 to 65.7083: <br>(1) "Activation date" means the date established any time within a two (2) year period
after the commencement date. The activation date is the date on which the time <br>period for the pledge of incremental revenues shall commence. The governing body <br>may extend the two (2) year period to no more than four (4) years upon written <br>application by the agency requesting the extension. To implement the activation <br>date, the agency that is a party to the local participation agreement or the local <br>development area agreement shall notify the governing body that created the <br>development area or local development area;
(2) "Agency" means:
(a) An urban renewal and community development agency established under
KRS Chapter 99;
(b) A development authority established under KRS Chapter 99; <br>(c) A nonprofit corporation; <br>(d) A housing authority established under KRS Chapter 80; <br>(e) An air board established under KRS 183.132 to 183.160; <br>(f) A local industrial development authority established under KRS 154.50-301
to 154.50-346;
(g) A riverport authority established under KRS 65.510 to 65.650; or <br>(h) A designated department, division, or office of a city or county;
(3) "Arena" means a facility which serves primarily as a venue for athletic events, live
entertainment, and other performances, and which has a permanent seating capacity <br>of at least five thousand (5,000);
(4) "Authority" means the Kentucky Economic Development Finance Authority
established by KRS 154.20-010;
(5) "Brownfield site" means real property, the expansion, redevelopment, or reuse of
which may be complicated by the presence or potential presence of a hazardous <br>substance, pollutant, or contaminant;
(6) "Capital investment" means:
(a) Obligations incurred for labor and to contractors, subcontractors, builders, and
materialmen in connection with the acquisition, construction, installation, <br>equipping, and rehabilitation of a project;
(b) The cost of acquiring land or rights in land within the development area on the
footprint of the project, and any cost incident thereto, including recording <br>fees;
(c) The cost of contract bonds and of insurance of all kinds that may be required
or necessary during the course of acquisition, construction, installation, <br>equipping, and rehabilitation of a project which is not paid by the contractor <br>or contractors or otherwise provided;
Page 2 of 6
(d) All costs of architectural and engineering services, including test borings,
surveys, estimates, plans, specifications, preliminary investigations, <br>supervision of construction, and the performance of all the duties required by <br>or consequent upon the acquisition, construction, installation, equipping, and <br>rehabilitation of a project;
(e) All costs that are required to be paid under the terms of any contract for the
acquisition, construction, installation, equipping, and rehabilitation of a <br>project; and
(f) All other costs of a nature comparable to those described in this subsection;
(7) "City" means any city, consolidated local government, or urban-county government; <br>(8) "Commencement date" means:
(a) The date on which a local development area agreement is executed; or <br>(b) The date on which a local participation agreement is executed;
(9) "Commonwealth" means the Commonwealth of Kentucky; <br>(10) "County" means any county, consolidated local government, charter county, unified
local government, or urban-county government;
(11) "Debt charges" means the principal, including any mandatory sinking fund deposits,
interest, and any redemption premium, payable on increment bonds as the payments <br>come due and are payable and any charges related to the payment of the foregoing;
(12) "Development area" means an area established under KRS 65.7049, 65.7051, and
65.7053;
(13) "Economic development projects" means projects which are approved for tax
credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter <br>154;
(14) "Establishment date" means the date on which a development area or a local
development area is created. If the development area, local development area, <br>development area plan, or local development area plan is modified or amended <br>subsequent to the original establishment date, the modifications or amendments <br>shall not extend the existence of the development area or local development area <br>beyond what would be permitted under KRS 65.7041 to 65.7083 from the original <br>establishment date;
(15) "Governing body" means the body possessing legislative authority in a city or
county;
(16) "Increment bonds" means bonds and notes issued for the purpose of paying the costs
of one (1) or more projects, or grant or loan programs as described in subsection <br>(29)(c) of this section, in a development area or a local development area;
(17) "Incremental revenues" means the amount of revenues received by a taxing district,
as determined by subtracting old revenues from new revenues in a calendar year <br>with respect to a development area, a project within a development area, or a local <br>development area;
(18) "Issuer" means a city, county, or agency issuing increment bonds;
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(19) "Local development area" means a development area established under KRS
65.7047;
(20) "Local development area agreement" means an agreement entered into under KRS
65.7047;
(21) "Local participation agreement" means the agreement entered into under KRS
65.7063;
(22) "Local tax revenues" means:
(a) Revenues derived by a city or county from one (1) or more of the following
sources: <br>1.
Real property ad valorem taxes;
2.
Occupational license taxes, excluding occupational license taxes that <br>have already been pledged to support an economic development project <br>within the development area; and
3.
The occupational license fee permitted by KRS 65.7056; and
(b) Revenues derived by any taxing district other than school districts or fire
districts from real property ad valorem taxes;
(23) "Low-income household" means a household in which gross income is no more
than two hundred percent (200%) of the poverty guidelines updated periodically in <br>the Federal Register by the United States Department of Health and Human <br>Services under the authority of 42 U.S.C. sec. 9902(2);
(24) "New revenues" means the amount of local tax revenues received by a taxing
district with respect to a development area or a local development area in any <br>calendar year beginning with the year in which the activation date occurred;
(25) "Old revenues" means the amount of local tax revenues received by a taxing district
with respect to a development area or a local development area during the last <br>calendar year prior to the commencement date. If the governing body determines <br>that the amount of local tax revenues received during the last calendar year prior to <br>the commencement date does not represent a true and accurate depiction of <br>revenues, the governing body may consider revenues for a period of no longer than <br>three (3) calendar years prior to the commencement date, so as to determine a fair <br>representation of local tax revenues;
(26) "Outstanding" means increment bonds that have been issued, delivered, and paid for
by the purchaser, except any of the following: <br>(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon
payment or redemption;
(b) Increment bonds in replacement of which or in exchange for which other
increment bonds have been issued; or
(c) Increment bonds for the payment, redemption, or purchase for cancellation
prior to maturity, of which sufficient moneys or investments, in accordance <br>with the ordinance or other proceedings or any applicable law, by mandatory <br>sinking fund redemption requirements, or otherwise, have been deposited, and <br>credited in a sinking fund or with a trustee or paying or escrow agent, whether
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at or prior to their maturity or redemption, and, in the case of increment bonds <br>to be redeemed prior to their stated maturity, notice of redemption has been <br>given or satisfactory arrangements have been made for giving notice of that <br>redemption, or waiver of that notice by or on behalf of the affected bond <br>holders has been filed with the issuer or its agent;
(27) "Planning unit" means a planning commission established pursuant to KRS Chapter
100;
(28) "Project" means any property, asset, or improvement located in a development area
or a local development area and certified by the governing body as: <br>(a) Being for a public purpose; and <br>(b) Being for the development of facilities for residential, commercial, industrial,
public, recreational, or other uses, or for open space, including the <br>development,
rehabilitation,
renovation,
installation,
improvement,
enlargement, or extension of real estate and buildings; and
(c) Contributing to economic development or tourism;
(29) "Redevelopment assistance," as utilized within a development area, includes the
following: <br>(a) Technical assistance programs to provide information and guidance to
existing, new, and potential businesses and residences;
(b) Programs to market and promote the development area and attract new
businesses and residents;
(c) Grant and loan programs to encourage the construction or rehabilitation of
residential, commercial, and industrial buildings; improve the appearance of <br>building facades and signage; and stimulate business start-ups and expansions;
(d) Programs to obtain a reduced interest rate, down payment, or other improved
terms for loans made by private, for-profit, or nonprofit lenders to encourage <br>the construction or rehabilitation of residential, commercial, and industrial <br>buildings; improve the appearance of building facades and signage; and <br>stimulate business start-ups and expansions;
(e) Local capital improvements, including but not limited to the installation,
construction, or reconstruction of streets, lighting, pedestrian amenities, public <br>utilities, public transportation facilities, public parking, parks, playgrounds, <br>recreational facilities, and public buildings and facilities;
(f) Improved or increased provision of public services, including but not limited
to police or security patrols, solid waste management, and street cleaning;
(g) Provision of technical, financial, or other assistance in connection with:
1.
Applications to the Energy and Environment Cabinet for a brownfields <br>assessment or a No Further Remediation Letter issued pursuant to KRS <br>224.01-450; or
2.
Site remediation by means of the Voluntary Environmental Remediation <br>Program to remove environmental contamination in the development
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area, or lots or parcels within it, pursuant to KRS 224.01-510 to 224.01-<br>532; and
(h) Direct development by a city, county, or agency of real property acquired by
the city, county, or agency. Direct development may include one (1) or more <br>of the following: <br>1.
Assembly and replatting of lots or parcels;
2.
Rehabilitation of existing structures and improvements;
3.
Demolition of structures and improvements and construction of new <br>structures and improvements;
4.
Programs of temporary or permanent relocation assistance for businesses <br>and residents;
5.
The sale, lease, donation, or other permanent or temporary transfer of <br>real property to public agencies, persons, and entities both for profit and <br>nonprofit; and
6.
The acquisition and construction of projects;
(30) "Service payment agreement" means an agreement between a city, county, or issuer
of increment bonds or other obligations and any person, whereby the person agrees <br>to guarantee the receipt of incremental revenues, or the payment of debt charges, or <br>any portion thereof, on increment bonds or other obligations issued by the city, <br>county, or issuer;
(31) "Special fund" means a special fund created under KRS 65.7061 in which all
incremental revenues shall be deposited;
(32) "Taxing district" means any city, county, or special taxing district other than school
districts and fire districts;
(33) "Tax incentive agreement" means an agreement entered into under KRS 154.30-
070; and
(34) "Termination date" means:
(a) For a development area, a date established by the ordinance creating the
development area that is no more than twenty (20) years from the <br>establishment date. If a tax incentive agreement for a project within a <br>development area or a local participation agreement relating to the <br>development area has a termination date that is later than the termination date <br>established in the ordinance, the termination date for the development area <br>shall be extended to the termination date of the tax incentive agreement, or <br>local participation agreement. However, the termination date for the <br>development area shall in no event be more than forty (40) years from the <br>establishment date;
(b) For a local development area, a date established by the ordinance creating the
local development area that is no more than twenty (20) years from the <br>establishment date, provided that if a local development area agreement <br>relating to the local development area has a termination date that is later than <br>the termination date established in the ordinance, the termination date for the
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local development area shall be extended to the termination date of the local <br>development area agreement;
(c) For a local participation agreement, a date that is no more than twenty (20)
years from the activation date. However, the termination date for a local <br>participation agreement shall in no event be more than forty (40) years from <br>the establishment date of the development area to which the local participation <br>agreement relates; and
(d) For a local development area agreement, a date that is no more than twenty
(20) years from the activation date. However, the termination date for a local <br>development area agreement shall in no event be more than forty (40) years <br>from the establishment date of the local development area to which the <br>development area agreement relates.
Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 58, effective July 15, 2010. -- Amended
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 57, effective June 26, 2009. -- Amended <br>2008 Ky. Acts ch. 178, sec. 2, effective July 15, 2008. -- Created 2007 Ky. Acts <br>ch. 95, sec. 3, effective March 23, 2007.
