65.7047 Establishment of local development areas -- Conditions for establishment -- Steps for establishment or modification -- Funding -- Execution of agreement -- Pledge of revenues.

Loading PDF...

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