Page 1 of 3
65.7047 Establishment of local development areas -- Conditions for establishment -
- Steps for establishment or modification -- Funding -- Execution of agreement <br>-- Pledge of revenues.
(1) Any city or county may establish a local development area pursuant to this section,
subject to the following conditions: <br>(a) A local development area shall be on previously undeveloped land; <br>(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 <br>and development areas of the city or county establishing the local <br>development area to exceed twenty percent (20%) of the assessed value of all <br>taxable real property within its jurisdiction. For the purpose of determining <br>whether the twenty percent (20%) threshold has been met, the assessed value <br>of taxable real property within all of the local development areas and <br>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 <br>termination date.
(2) A city or county shall take the following steps to establish or modify a local
development area: <br>(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 <br>hearing by causing to be published, in accordance with KRS 424.130, notice <br>of the time, place, and purpose of the hearing and a general description of the <br>boundaries of the proposed local development area. The notice shall include a <br>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: <br>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 <br>any project within the local development area;
6.
A requirement that any entity other than the governing body that <br>receives financial assistance under the local development area ordinance, <br>whether in the form of a grant, loan, or loan guarantee, shall make <br>periodic accounting to the governing body;
7.
A provision for periodic analysis and review by the governing body of <br>the development activity in the local development area;
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8.
Designation of the agency or agencies responsible for oversight, <br>administration, and implementation of the local development ordinance; <br>and
9.
Any other provisions, findings, limitations, rules, or procedures <br>regarding the proposed local development area or a project within the <br>local development area and its establishment or maintenance deemed <br>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, <br>a local development area agreement shall be executed in accordance with the <br>provisions of subsection (4) of this section.
(3) Funding for projects in a local development area shall be provided in accordance
with KRS 65.7057.
(4) A local development area agreement shall be executed among the agencies and
taxing districts involved in administering, providing financing, or pledging <br>incremental revenues within the local development area. The local development <br>area agreement shall be adopted by a city or county by ordinance and by any other <br>taxing district or agency by resolution, and shall include but not be limited to the <br>following provisions: <br>(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: <br>1.
A detailed summary of old revenues collected and projected new <br>revenues for each taxing district on an annual basis for the term of the <br>local development area agreement; and
2.
The maximum amount of incremental revenue to be paid by each taxing <br>district and the maximum number of years the payment will be effective;
(d) A detailed description of the local development area; <br>(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 <br>depositing incremental revenues and other pledged amounts into the special <br>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 <br>incremental revenues pledged to the special fund if increment bonds are <br>outstanding that are secured by a pledge of those incremental revenues;
(h) The commencement date, activation date, and termination date; and
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(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed
necessary or appropriate by the parties to the agreement.
(5) 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 <br>activation date to the termination date set forth in the local area development <br>agreement, supersede any statute, ordinance, or resolution regarding the application <br>or use of incremental revenues. No ordinance in conflict with a local development <br>area agreement shall be adopted while any increment bonds secured by that pledge <br>remain outstanding. Ordinances or resolutions pledging incremental revenues on a <br>subordinate basis to any existing pledges may be adopted.
Effective: July 15, 2008 <br>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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65.7047 Establishment of local development areas -- Conditions for establishment -
- Steps for establishment or modification -- Funding -- Execution of agreement <br>-- Pledge of revenues.
(1) Any city or county may establish a local development area pursuant to this section,
subject to the following conditions: <br>(a) A local development area shall be on previously undeveloped land; <br>(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 <br>and development areas of the city or county establishing the local <br>development area to exceed twenty percent (20%) of the assessed value of all <br>taxable real property within its jurisdiction. For the purpose of determining <br>whether the twenty percent (20%) threshold has been met, the assessed value <br>of taxable real property within all of the local development areas and <br>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 <br>termination date.
(2) A city or county shall take the following steps to establish or modify a local
development area: <br>(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 <br>hearing by causing to be published, in accordance with KRS 424.130, notice <br>of the time, place, and purpose of the hearing and a general description of the <br>boundaries of the proposed local development area. The notice shall include a <br>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: <br>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 <br>any project within the local development area;
6.
A requirement that any entity other than the governing body that <br>receives financial assistance under the local development area ordinance, <br>whether in the form of a grant, loan, or loan guarantee, shall make <br>periodic accounting to the governing body;
7.
A provision for periodic analysis and review by the governing body of <br>the development activity in the local development area;
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8.
Designation of the agency or agencies responsible for oversight, <br>administration, and implementation of the local development ordinance; <br>and
9.
Any other provisions, findings, limitations, rules, or procedures <br>regarding the proposed local development area or a project within the <br>local development area and its establishment or maintenance deemed <br>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, <br>a local development area agreement shall be executed in accordance with the <br>provisions of subsection (4) of this section.
(3) Funding for projects in a local development area shall be provided in accordance
with KRS 65.7057.
(4) A local development area agreement shall be executed among the agencies and
taxing districts involved in administering, providing financing, or pledging <br>incremental revenues within the local development area. The local development <br>area agreement shall be adopted by a city or county by ordinance and by any other <br>taxing district or agency by resolution, and shall include but not be limited to the <br>following provisions: <br>(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: <br>1.
A detailed summary of old revenues collected and projected new <br>revenues for each taxing district on an annual basis for the term of the <br>local development area agreement; and
2.
The maximum amount of incremental revenue to be paid by each taxing <br>district and the maximum number of years the payment will be effective;
(d) A detailed description of the local development area; <br>(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 <br>depositing incremental revenues and other pledged amounts into the special <br>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 <br>incremental revenues pledged to the special fund if increment bonds are <br>outstanding that are secured by a pledge of those incremental revenues;
(h) The commencement date, activation date, and termination date; and
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(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed
necessary or appropriate by the parties to the agreement.
(5) 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 <br>activation date to the termination date set forth in the local area development <br>agreement, supersede any statute, ordinance, or resolution regarding the application <br>or use of incremental revenues. No ordinance in conflict with a local development <br>area agreement shall be adopted while any increment bonds secured by that pledge <br>remain outstanding. Ordinances or resolutions pledging incremental revenues on a <br>subordinate basis to any existing pledges may be adopted.
Effective: July 15, 2008 <br>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.
Page 1 of 3
65.7047 Establishment of local development areas -- Conditions for establishment -
- Steps for establishment or modification -- Funding -- Execution of agreement <br>-- Pledge of revenues.
(1) Any city or county may establish a local development area pursuant to this section,
subject to the following conditions: <br>(a) A local development area shall be on previously undeveloped land; <br>(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 <br>and development areas of the city or county establishing the local <br>development area to exceed twenty percent (20%) of the assessed value of all <br>taxable real property within its jurisdiction. For the purpose of determining <br>whether the twenty percent (20%) threshold has been met, the assessed value <br>of taxable real property within all of the local development areas and <br>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 <br>termination date.
(2) A city or county shall take the following steps to establish or modify a local
development area: <br>(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 <br>hearing by causing to be published, in accordance with KRS 424.130, notice <br>of the time, place, and purpose of the hearing and a general description of the <br>boundaries of the proposed local development area. The notice shall include a <br>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: <br>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 <br>any project within the local development area;
6.
A requirement that any entity other than the governing body that <br>receives financial assistance under the local development area ordinance, <br>whether in the form of a grant, loan, or loan guarantee, shall make <br>periodic accounting to the governing body;
7.
A provision for periodic analysis and review by the governing body of <br>the development activity in the local development area;
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8.
Designation of the agency or agencies responsible for oversight, <br>administration, and implementation of the local development ordinance; <br>and
9.
Any other provisions, findings, limitations, rules, or procedures <br>regarding the proposed local development area or a project within the <br>local development area and its establishment or maintenance deemed <br>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, <br>a local development area agreement shall be executed in accordance with the <br>provisions of subsection (4) of this section.
(3) Funding for projects in a local development area shall be provided in accordance
with KRS 65.7057.
(4) A local development area agreement shall be executed among the agencies and
taxing districts involved in administering, providing financing, or pledging <br>incremental revenues within the local development area. The local development <br>area agreement shall be adopted by a city or county by ordinance and by any other <br>taxing district or agency by resolution, and shall include but not be limited to the <br>following provisions: <br>(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: <br>1.
A detailed summary of old revenues collected and projected new <br>revenues for each taxing district on an annual basis for the term of the <br>local development area agreement; and
2.
The maximum amount of incremental revenue to be paid by each taxing <br>district and the maximum number of years the payment will be effective;
(d) A detailed description of the local development area; <br>(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 <br>depositing incremental revenues and other pledged amounts into the special <br>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 <br>incremental revenues pledged to the special fund if increment bonds are <br>outstanding that are secured by a pledge of those incremental revenues;
(h) The commencement date, activation date, and termination date; and
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(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed
necessary or appropriate by the parties to the agreement.
(5) 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 <br>activation date to the termination date set forth in the local area development <br>agreement, supersede any statute, ordinance, or resolution regarding the application <br>or use of incremental revenues. No ordinance in conflict with a local development <br>area agreement shall be adopted while any increment bonds secured by that pledge <br>remain outstanding. Ordinances or resolutions pledging incremental revenues on a <br>subordinate basis to any existing pledges may be adopted.
Effective: July 15, 2008 <br>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.
