12-17,177.   STAR bond project district containing anauto race track facility; approval; financing, bond issuance, limitations;reporting requirements; secretary to determine satisfaction of bonddebt.(a) The boundaries of any STAR bond project district in amajortourism area including an auto race track facility located in Wyandotte county,shall, without regard to that portionof the district pertaining to the auto race track facility, be as follows:Beginning at the intersection of Interstate 70 and Interstate 435; West alongInterstate 70 to 118th Street; North along 118th Street to State Avenue;Northeasterly along proposed relocated State Avenue to 110th Street; Northalong 110th Street to Parallel Parkway; East along Parallel Parkway toInterstate 435; South along Interstate 435 to Interstate 70.

      (b)   Any major tourism area may include an additional area not exceeding 400acres of additional property, excluding roads and highways, in addition to theproperty necessary for the auto race track facility upon a finding by thegovernor that the development plan and each project within such additional 400acre area will enhance the major tourism area. For the development of eachproject within such additional 400 acre area the city shall select qualifieddevelopers pursuant to a request for proposals in accordance with writtenofficial procedures approved by the governing body of the city.

      (c)   Any project within such additional 400 acre area that is financed inwhole or in part by special obligation bonds payable from revenues derivedfrom subsection (a)(1)(C), (a)(1)(F) or (a)(1)(G) ofK.S.A. 2009 Supp.12-17,169, and amendmentsthereto, shall not be entitled to any real property tax abatements or therevenues described in K.S.A. 12-1775, and amendments thereto.

      (d)   Any project within such additional 400 acre area must be approved by thegovernor and construction must be commenced by July 1, 2002.

      (e)   The maximum principal amount of special obligation bonds issued to fundSTAR bond projects within a major tourism area, including any such additional400 acre area, shall not exceed $308,000,000, unless the city has secured priorapproval from the secretary of commerce and the secretary of revenue. Anyspecial obligation bonds issued for the following purposes shall not be countedtoward such limit on the principal amount:

      (1)   Special obligation bonds issued solely for the purpose of refunding suchbonds, either at maturity or in advance of maturity, pursuant to the provisionsof K.S.A. 10-116a, and amendments thereto; and

      (2)   special obligation bonds issued solely to fund reserve funds for suchrefunding bonds.

      (f)   Prior to issuing any special obligation bonds for any purpose, the cityor county must have the approval of the secretary and the secretary of revenue.

      (g)   The city or county shall prepare and submit annually to the secretary byOctober 1 of each year, a report describing the status of any projects within amajor tourism area and all other STAR bond projects, including any suchadditional 400 acre area, any expenditures of the proceeds of specialobligation bonds that have occurred since the last annual report and anyexpenditures of the proceeds of such bonds expected to occur in the future,including the amount of sales tax revenue, how it has been spent, the projectedamount of such revenue and the anticipated use of suchrevenue. The department of commerce shall compile this information and submit areport annually to the governor, Kansas, Inc. and the legislature by February 1of each year.

      (h)   Any business located in Kansas within 50 miles of a major tourism areathat relocates into a major tourism area, including such additional 400 acrearea, shall not receive any of the benefits ofK.S.A. 2009 Supp.12-17,160 etseq., andamendments thereto.

      (i)   If a city determines that revenues from sources other than property taxeswill be sufficient to pay any special obligation bonds issued to finance a STARbond project for an auto race track facility as described inK.S.A. 2009 Supp.12-17,162, andamendments thereto, and the secretary makes a finding that such project willcreate a major tourism area as defined inK.S.A. 2009 Supp.12-17,162, andamendments thereto,all real and personal property, constituting an auto race track facilitydescribed inK.S.A. 2009 Supp.12-17,162, and amendments thereto, in such STARbond projectdistrictshall be exempt from property taxation for a period ending on the earlier of:

      (1)   The date which is 30 years after the date of the finding by the secretarywith respect to such major tourism area; or

      (2)   the date on which no such special obligation bonds issued to finance suchauto race track facility in a major tourism area remain outstanding.

      (j)   The city which is authorized to issue bonds pursuant to the provisions ofK.S.A. 2009 Supp.12-17,160 et seq., and amendments thereto, in order tofinance a STAR bondproject in a major tourism area as defined byK.S.A. 2009 Supp.12-17,162, andamendmentsthereto, shall obtain underwriting services required by the city for theissuance of such bonds pursuant to written proposals received in accordancewith this section.

      Each city which is authorized to issue such bonds shall establish writtenofficial procedures for obtaining underwriting services required for theissuance of such bonds, including specificationsfor requests for proposals and criteria for evaluation of proposals on acompetitive basis. The proposal evaluation criteria shall include factors basedon cost, capacity to provide the required services, qualifications andexperience.

      Prior to the issuance of any such bond to finance a STAR bond project in amajor tourism area, the city shall publish notice of arequest for proposals to provide the underwriting services that are required bythe city with regard to the proposed bond issuance and shall mail requests forproposals to qualified interested parties upon request for such notice. Thecity shall award contracts for such underwriting services from the proposalsreceived in accordance with the procedures and evaluation criteria adopted bythe city for such purpose. A city shall publish such notice in the officialnewspaper of the city.

      (k)   A STAR bond project in a major tourism area for an auto race trackfacility, shall be completed within 30 years from the date the secretary makesthe finding that the STAR bond projectwill create a major tourism area pursuant to subsection (l) of K.S.A. 2009Supp. 12-17,162,and amendments thereto.

      (l)   The maximum maturity on bonds issued to finance projects pursuant to thisact shall not exceed 20 years as provided inK.S.A. 2009 Supp.12-17,166,except that:

      (1)   Such maximum period of special obligation bonds not payable from revenuesdescribed by subsections (a)(1)(C), (a)(1)(F) and (a)(1)(G) of K.S.A. 2009Supp. 12-17,169, andamendments thereto, issued to finance an auto race track facility shall notexceed 30 years; and

      (2)   such maximum period, if the governor determines and makes and submits afinding to the speaker of the house of representatives and the president of thesenate that a maturity greater than 20 years, but in no event exceeding 30years, is necessary for the economic feasibility of the financing of an autorace track facility with special obligation bonds payable primarily fromrevenues described by subsections (a)(1)(C), (a)(1)(F) and (a)(1)(G) of K.S.A.2009 Supp. 12-17,169, and amendments thereto, may be extended in accordancewith suchdetermination and finding.

      (m)   The secretary of revenue shall determine when the amount of sales tax andother revenues that have been collected and distributed to the bond debtservice or reserve fund is sufficient to satisfy all principal and interestcosts to the maturity date or dates, of any special obligation bonds issued bya city or county to finance a STAR bond project in a major tourism area.Thereafter, all sales tax and other revenues shall be collected and distributedin accordance with applicable law.

      History:   L. 2007, ch. 179, § 18; July 1.