65.7045 Definitions for KRS 65.7041 to 65.7083.

KY Rev Stat § 65.7045 (2019) (N/A)
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65.7045 Definitions for KRS 65.7041 to 65.7083. As used in KRS 65.7041 to 65.7083: (1) "Activation date" means the date established any time within a two (2) year period after the commencement date. The activation date is the date on which the time period for the pledge of incremental revenues shall commence. The governing body may extend the two (2) year period to no more than four (4) years upon written application by the agency requesting the extension. To implement the activation date, the agency that is a party to the local participation agreement or the local development area agreement shall notify the governing body that created the development area or local development area; (2) "Agency" means: (a) An urban renewal and community development agency established under KRS Chapter 99; (b) A development authority established under KRS Chapter 99; (c) A nonprofit corporation; (d) A housing authority established under KRS Chapter 80; (e) An air board established under KRS 183.132 to 183.160; (f) A local industrial development authority established under KRS 154.50-301 to 154.50-346; (g) A riverport authority established under KRS 65.510 to 65.650; or (h) A designated department, division, or office of a city or county; (3) (4) (5) "Arena" means a facility which serves primarily as a venue for athletic events, live entertainment, and other performances, and which has a permanent seating capacity of at least five thousand (5,000); "Authority" means the Kentucky Economic Development Finance Authority established by KRS 154.20-010; "Brownfield site" means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous substance, pollutant, or contaminant; (6) "Capital investment" means: (a) Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation, equipping, and rehabilitation of a project; (b) The cost of acquiring land or rights in land within the development area on the footprint of the project, and any cost incident thereto, including recording fees; (c) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of acquisition, construction, installation, equipping, and rehabilitation of a project which is not paid by the contractor or contractors or otherwise provided; (d) All costs of architectural and engineering services, including test borings, estimates, plans, investigations, surveys, supervision of construction, and the performance of all the duties required by or consequent upon the acquisition, construction, installation, equipping, and rehabilitation of a project; specifications, preliminary (e) All costs that are required to be paid under the terms of any contract for the acquisition, construction, installation, equipping, and rehabilitation of a project; and (f) All other costs of a nature comparable to those described in this subsection; "City" means any city, consolidated local government, or urban-county government; "Commencement date" means: (7) (8) (a) The date on which a local development area agreement is executed; or (b) The date on which a local participation agreement is executed; (9) "Commonwealth" means the Commonwealth of Kentucky; (10) "County" means any county, consolidated local government, charter county, unified local government, or urban-county government; (11) "Debt charges" means the principal, including any mandatory sinking fund deposits, interest, and any redemption premium, payable on increment bonds as the payments come due and are payable and any charges related to the payment of the foregoing; (12) "Development area" means an area established under KRS 65.7049, 65.7051, and 65.7053; (13) "Economic development projects" means projects which are approved for tax credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter 154; (14) "Establishment date" means the date on which a development area or a local development area is created. If the development area, local development area, development area plan, or local development area plan is modified or amended subsequent to the original establishment date, the modifications or amendments shall not extend the existence of the development area or local development area beyond what would be permitted under KRS 65.7041 to 65.7083 from the original establishment date; (15) "Governing body" means the body possessing legislative authority in a city or county; (16) "Increment bonds" means bonds and notes issued for the purpose of paying the costs of one (1) or more projects, or grant or loan programs as described in subsection (30)(c) of this section, in a development area or a local development area; (17) "Incremental revenues" means the amount of revenues received by a taxing district, as determined by subtracting old revenues from new revenues in a calendar year with respect to a development area, a project within a development area, or a local development area; (18) "Issuer" means a city, county, or agency issuing increment bonds; (19) "Local development area" means a development area established under KRS 65.7047; (20) "Local development area agreement" means an agreement entered into under KRS 65.7047; (21) "Local participation agreement" means the agreement entered into under KRS 65.7063; (22) "Local tax revenues" means: (a) Revenues derived by a city or county from one (1) or more of the following sources: 1. Real property ad valorem taxes; 2. Occupational license taxes, excluding occupational license taxes that have already been pledged to support an economic development project within the development area; and 3. The occupational license fee permitted by KRS 65.7056; and (b) Revenues derived by any taxing district other than school districts or fire districts from real property ad valorem taxes; (23) "Low-income household" means a household in which gross income is no more than two hundred percent (200%) of the poverty guidelines updated periodically in the Federal Register by the United States Department of Health and Human Services under the authority of 42 U.S.C. sec. 9902(2); (24) "Mixed-use" has the same meaning as in KRS 154.30-060; (25) "New revenues" means the amount of local tax revenues received by a taxing district with respect to a development area or a local development area in any calendar year beginning with the year in which the activation date occurred; (26) "Old revenues" means the amount of local tax revenues received by a taxing district with respect to a development area or a local development area during the last calendar year prior to the commencement date. If the governing body determines that the amount of local tax revenues received during the last calendar year prior to the commencement date does not represent a true and accurate depiction of revenues, the governing body may consider revenues for a period of no longer than three (3) calendar years prior to the commencement date, so as to determine a fair representation of local tax revenues; (27) "Outstanding" means increment bonds that have been issued, delivered, and paid for by the purchaser, except any of the following: (a) (b) (c) Increment bonds canceled upon surrender, exchange, or transfer, or upon payment or redemption; Increment bonds in replacement of which or in exchange for which other increment bonds have been issued; or Increment bonds for the payment, redemption, or purchase for cancellation prior to maturity, of which sufficient moneys or investments, in accordance with the ordinance or other proceedings or any applicable law, by mandatory sinking fund redemption requirements, or otherwise, have been deposited, and credited in a sinking fund or with a trustee or paying or escrow agent, whether at or prior to their maturity or redemption, and, in the case of increment bonds to be redeemed prior to their stated maturity, notice of redemption has been given or satisfactory arrangements have been made for giving notice of that redemption, or waiver of that notice by or on behalf of the affected bond holders has been filed with the issuer or its agent; (28) "Planning unit" means a planning commission established pursuant to KRS Chapter 100; (29) "Project" means any property, asset, or improvement located in a development area or a local development area and certified by the governing body as: (a) Being for a public purpose; and (b) Being for the development of facilities for residential, commercial, industrial, public, recreational, or other uses, or for open space, including the development, improvement, enlargement, or extension of real estate and buildings; and rehabilitation, installation, renovation, (c) Contributing to economic development or tourism; (30) "Redevelopment assistance," as utilized within a development area, includes the following: (a) Technical assistance programs to provide information and guidance to existing, new, and potential businesses and residences; (b) Programs to market and promote the development area and attract new businesses and residents; (c) Grant and loan programs to encourage the construction or rehabilitation of residential, commercial, and industrial buildings; improve the appearance of building facades and signage; and stimulate business start-ups and expansions; (d) Programs to obtain a reduced interest rate, down payment, or other improved terms for loans made by private, for-profit, or nonprofit lenders to encourage the construction or rehabilitation of residential, commercial, and industrial buildings; improve the appearance of building facades and signage; and stimulate business start-ups and expansions; (e) Local capital improvements, including but not limited to the installation, construction, or reconstruction of streets, lighting, pedestrian amenities, public utilities, public transportation facilities, public parking, parks, playgrounds, recreational facilities, and public buildings and facilities; (f) Improved or increased provision of public services, including but not limited to police or security patrols, solid waste management, and street cleaning; (g) Provision of technical, financial, or other assistance in connection with: 1. Applications to the Energy and Environment Cabinet for a brownfields assessment or a No Further Remediation Letter issued pursuant to KRS 224.1-450; or 2. Site remediation by means of the Voluntary Environmental Remediation Program to remove environmental contamination in the development area, or lots or parcels within it, pursuant to KRS 224.1-510 to 224.1- 532; and (h) Direct development by a city, county, or agency of real property acquired by the city, county, or agency. Direct development may include one (1) or more of the following: 1. Assembly and replatting of lots or parcels; 2. Rehabilitation of existing structures and improvements; 3. Demolition of structures and improvements and construction of new structures and improvements; 4. 5. Programs of temporary or permanent relocation assistance for businesses and residents; The sale, lease, donation, or other permanent or temporary transfer of real property to public agencies, persons, and entities both for profit and nonprofit; and 6. The acquisition and construction of projects; (31) "Service payment agreement" means an agreement between a city, county, or issuer of increment bonds or other obligations and any person, whereby the person agrees to guarantee the receipt of incremental revenues, or the payment of debt charges, or any portion thereof, on increment bonds or other obligations issued by the city, county, or issuer; (32) "Special fund" means a special fund created under KRS 65.7061 in which all incremental revenues shall be deposited; (33) "Taxing district" means any city, county, or special taxing district other than school districts and fire districts; (34) "Tax incentive agreement" means an agreement entered into under KRS 154.30- 070; (35) "Termination date" means: (a) For a development area, a date established by the ordinance creating the development area that is no more than twenty (20) years from the establishment date. If a tax incentive agreement for a project within a development area or a local participation agreement relating to the development area has a termination date that is later than the termination date established in the ordinance, the termination date for the development area shall be extended to the termination date of the tax incentive agreement, or local participation agreement. However, the termination date for the development area shall in no event be more than forty (40) years from the establishment date; (b) For a local development area, a date established by the ordinance creating the local development area that is no more than twenty (20) years from the establishment date, provided that if a local development area agreement relating to the local development area has a termination date that is later than the termination date established in the ordinance, the termination date for the local development area shall be extended to the termination date of the local development area agreement; (c) For a local participation agreement, a date that is no more than twenty (20) years from the activation date. However, the termination date for a local participation agreement shall in no event be more than forty (40) years from the establishment date of the development area to which the local participation agreement relates; and (d) For a local development area agreement, a date that is no more than twenty (20) years from the activation date. However, the termination date for a local development area agreement shall in no event be more than forty (40) years from the establishment date of the local development area to which the development area agreement relates; and (36) "University research park" means land owned by a public university that has been designated by the public university as being primarily for the development of projects and facilities to support high-tech, pharmaceutical, laboratory, and other research-based businesses, including projects and facilities to support and complement the development of high-tech, pharmaceutical, laboratory, and other research-based businesses. Effective: June 8, 2011 History: Amended 2011 Ky. Acts ch. 62, sec. 2, effective June 8, 2011. -- Amended 2010 Ky. Acts ch. 24, sec. 58, effective July 15, 2010. -- Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 57, effective June 26, 2009. -- Amended 2008 Ky. Acts ch. 178, sec. 2, effective July 15, 2008. -- Created 2007 Ky. Acts ch. 95, sec. 3, effective March 23, 2007.