State Codes and Statutes

Statutes > Kentucky > 065-00 > 7063

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Page 1 of 2 65.7063 Requirements for local participation agreements -- Pledge of incremental revenues superior to other pledges of revenues. (1) A local participation agreement shall be executed among the agencies and taxing districts involved in administering or providing financing or pledging incremental <br>revenues to support the implementation of a development plan in a development <br>area. The local participation agreement shall be adopted by a city or county by <br>ordinance and by any other taxing authority or agency by resolution, and shall <br>include but not be limited to the following provisions: <br>(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: <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 participation 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 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, <br>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 <br>procedure for depositing incremental revenues and other pledged amounts into <br>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 <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 <br>(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed necessary or appropriate by the parties to the agreement. (2) 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 <br>activation date to the termination date set forth in the local participation agreement, <br>supersede any statute, ordinance, or resolution regarding the application or use of <br>incremental revenues. An ordinance in conflict with a local participation agreement <br>shall not be adopted while any increment bonds secured by that pledge remain Page 2 of 2 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. 10, effective July 15, 2008. -- Created 2007 Ky. Acts ch. 95, sec. 12, effective March 23, 2007.

State Codes and Statutes

Statutes > Kentucky > 065-00 > 7063

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Page 1 of 2 65.7063 Requirements for local participation agreements -- Pledge of incremental revenues superior to other pledges of revenues. (1) A local participation agreement shall be executed among the agencies and taxing districts involved in administering or providing financing or pledging incremental <br>revenues to support the implementation of a development plan in a development <br>area. The local participation agreement shall be adopted by a city or county by <br>ordinance and by any other taxing authority or agency by resolution, and shall <br>include but not be limited to the following provisions: <br>(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: <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 participation 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 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, <br>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 <br>procedure for depositing incremental revenues and other pledged amounts into <br>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 <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 <br>(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed necessary or appropriate by the parties to the agreement. (2) 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 <br>activation date to the termination date set forth in the local participation agreement, <br>supersede any statute, ordinance, or resolution regarding the application or use of <br>incremental revenues. An ordinance in conflict with a local participation agreement <br>shall not be adopted while any increment bonds secured by that pledge remain Page 2 of 2 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. 10, effective July 15, 2008. -- Created 2007 Ky. Acts ch. 95, sec. 12, effective March 23, 2007.

State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 065-00 > 7063

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Page 1 of 2 65.7063 Requirements for local participation agreements -- Pledge of incremental revenues superior to other pledges of revenues. (1) A local participation agreement shall be executed among the agencies and taxing districts involved in administering or providing financing or pledging incremental <br>revenues to support the implementation of a development plan in a development <br>area. The local participation agreement shall be adopted by a city or county by <br>ordinance and by any other taxing authority or agency by resolution, and shall <br>include but not be limited to the following provisions: <br>(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: <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 participation 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 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, <br>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 <br>procedure for depositing incremental revenues and other pledged amounts into <br>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 <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 <br>(i) Any other provisions not inconsistent with KRS 65.7041 to 65.7083 deemed necessary or appropriate by the parties to the agreement. (2) 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 <br>activation date to the termination date set forth in the local participation agreement, <br>supersede any statute, ordinance, or resolution regarding the application or use of <br>incremental revenues. An ordinance in conflict with a local participation agreement <br>shall not be adopted while any increment bonds secured by that pledge remain Page 2 of 2 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. 10, effective July 15, 2008. -- Created 2007 Ky. Acts ch. 95, sec. 12, effective March 23, 2007.