12-17,164.   Establishment of STAR bond projects bycity or county; approval of secretary; limitations.(a) The governing body of a city may establish one or moreSTAR bond projects in any area within suchcity or wholly outside the boundaries of such city. A STAR bond project whollyoutside the boundaries of such city mustbe approved by the board of county commissioners by the passage of a countyresolution.

      The governing body of a county may establish one or more STAR bond projects inany unincorporated area of the county.

      The projects shall be eligible for financing by special obligation bondspayable from revenues described by subsection (a)(1) ofK.S.A. 2009 Supp.12-17,169, and amendments thereto.

      (b)   Each STAR bond project shall first be approved by the secretary, if thesecretary determines that the proposed project or complex sufficientlypromotes, stimulates and develops the general and economic welfare of the stateas described inK.S.A. 2009 Supp.12-17,160, and amendments thereto.The secretary, upon approving the project, may approve such financing in anamount not to exceed 50% of the total costs including all project costs and anyother costs related to theproject. The proceeds of such STAR bond financing may only be used to pay forincurred project costs.

      (c)   For a city proposing to finance a major motorsports complex pursuant tosubsection (a)(1)(C) or (a)(1)(E) ofK.S.A. 2009 Supp.12-17,169, andamendments thereto, thesecretary, upon approving the project, may approve such financing in an amountnot to exceed 50% of the STAR bond project costs.

      (d)   The secretary may approve a STAR bond project located in a STAR bondproject district established by a city prior to May 1, 2003.

      (e)   A project shall not be granted to any business that proposes to relocateits business from another area of the state into such city or county, for thepurpose of consideration for a STAR bond project provided byK.S.A. 2009 Supp.12-17,160 et seq.,and amendments thereto.

      (f)   A project shall not be approved by the secretary if the market studyrequired byK.S.A. 2009 Supp.12-17,166, and amendments thereto, indicates asubstantial negativeimpact upon businesses in the project or complex market area or the granting ofsuch project or complex would cause a default in the payment of any outstandingspecial obligation bond payable from revenues authorized pursuant to subsection(a)(1) ofK.S.A. 2009 Supp.12-17,169, and amendments thereto.

      (g)   The maximum maturity of special obligation bonds payable primarily fromrevenues described by subsection (a)(1) ofK.S.A. 2009 Supp.12-17,169, andamendments thereto,to finance STAR bond projects pursuant tothis section shall not exceed 20 years.

      (h)   The secretary shall not approve anyapplication for STARbond project financingwhich is submitted by a city or county more than one year after the STAR bondproject district in which the STAR bond project is located has beenestablished.

      History:   L. 2007, ch. 179, § 5; July 1.