KRS § 65.680 — KY Code / Title IX / Chapter 65 / Section 65.680
65.680 Definitions for KRS 65.680 to 65.699
Status: in_force

65.680 Definitions for KRS 65.680 to 65.699.

As used in KRS 65.680 to 65.699:

(1) "Activation date" means the date established in the grant contract at any time in a

two (2) year period after the date of approval of the grant contract by the economic

development authority or the tourism development authority, as appropriate. The

economic development authority or tourism development authority, as appropriate,

may extend this two (2) year period to no more than four (4) years upon written

application of the agency requesting the extension. To implement the activation

date, the agency who is a party to the grant contract shall notify the economic

development authority or the tourism development authority, as appropriate, the

Department of Revenue, and other taxing districts that are parties to the grant

contract when the implementation of the increment authorized in the grant contract

shall occur;

(2) "Agency" means an urban renewal and community development agency established

under KRS Chapter 99; a development authority established under KRS Chapter 99;

a nonprofit corporation established under KRS Chapter 58; an air board established

under KRS 183.132 to 183.160; a local industrial development authority established

under KRS 154.50-301 to 154.50-346; a riverport authority established under KRS

65.510 to 65.650; or a designated department, division, or office of a city or county;

(3) "Assessment" means the job development assessment fee authorized by KRS

65.6851, which the governing body may elect to impose throughout the

development area;

(4) "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;

(5) "City" means any city, consolidated local government, or urban-county;

(6) "Commencement date" means the date a development area is established, as

provided in the ordinance creating the development area;

(7) "Commonwealth" means the Commonwealth of Kentucky;

(8) "County" means any county, consolidated local government, or charter county;

(9) "CPI" means the nonseasonally adjusted Consumer Price Index for all urban

consumers, all items (base year computed for 1982 to 1984 equals one hundred

(100)), published by the United States Department of Labor, Bureau of Labor

Statistics;

(10) "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;

(11) "Development area" means a contiguous geographic area, which may be within one

(1) or more cities or counties, defined and created for economic development

purposes by an ordinance of a city or county in which one (1) or more projects are

proposed to be located, except that for any development area for which increments

are to include revenues from the Commonwealth, the contiguous geographic area

shall satisfy the requirements of KRS 65.6971 or 65.6972;

(12) "Economic development authority" means the Kentucky Economic Development

Finance Authority as created in KRS 154.20-010;

(13) "Enterprise Zone" means an area that had been designated by the Enterprise Zone

Authority of Kentucky to be eligible for the benefits of Subchapter 45 of KRS

Chapter 154 before January 1, 2005;

(14) "Governing body" means the body possessing legislative authority in a city or

county;

(15) "Grant contract" means:

(a) That agreement with respect to a development area established under KRS

65.686, by and among an agency and one (1) or more taxing districts other

than the Commonwealth, by which a taxing district permits the payment to an

agency of an amount equal to a portion of increments other than revenues

from the Commonwealth received by it in return for the benefits accruing to

the taxing district by reason of one (1) or more projects in a development area;

or

(b) That agreement, including with respect to a development area satisfying the

requirements of KRS 65.6971 or 65.6972, a master agreement and addenda to

the master agreement, by and among an agency, one (1) or more taxing

districts, and the economic development authority or the tourism development

authority, as appropriate, by which a taxing district permits the payment to an

agency of an amount equal to a portion of increments received by it in return

for the benefits accruing to the taxing district by reason of one (1) or more

projects in a development area;

(16) "Increment bonds" means bonds and notes issued for the purpose of paying the costs

of one (1) or more projects in a development area, the payment of which is secured

solely by a pledge of increments or by a pledge of increments and other sources of

payment that are otherwise permitted by law to be pledged or used as a source of

payment of the bonds or notes;

(17) "Increments" means the amount of revenues received by any taxing district,

determined by subtracting the amount of old revenues from the amount of new

revenues in the calendar year with respect to a development area and for which the

taxing district or districts and the agency have agreed upon under the terms of a

grant contract;

(18) "Infrastructure development" means the acquisition of real estate within a

development area meeting the requirements of KRS 65.6971 and the construction or

improvement, within a development area meeting the requirements of KRS

65.6971, of roads and facilities necessary or desirable for improvements of the real

estate, including surveys; site tests and inspections; environmental remediation;

subsurface site work; excavation; removal of structures, roadways, cemeteries, and

other underground and surface obstructions; filling, grading, and provision of

drainage, storm water retention, installation of utilities such as water, sewer, sewage

treatment, gas, and electricity, communications, and similar facilities; and utility

extensions to the boundaries of the development area meeting the requirements of

KRS 65.6971;

(19) "Issuer" means a city, county, or an agency issuing increment bonds;

(20) "New revenues" means the amount of revenues received with respect to a

development area in any calendar year after the activation date for a development

area:

(a) Established under KRS 65.686, the ad valorem taxes other than the school and

fire district portions of the ad valorem taxes received from real property

generated from the development area and properties sold within the

development area, and occupational license fees not otherwise used as a credit

against an assessment, and all or a portion of assessments as determined by

the governing body; or

(b) Satisfying the requirements of KRS 65.6971, the ad valorem taxes other than

the school and fire district portions of the ad valorem taxes received from real

property generated from the development area and properties sold within the

development area; or

(c) Satisfying the requirements of KRS 65.6972, the ad valorem taxes, other than

the school and fire district portions of the ad valorem taxes, received from real

property, Kentucky individual income tax, Kentucky sales and use taxes, local

insurance premium taxes, occupational license fees, or other such state taxes

as may be determined by the Department of Revenue to be applicable to the

project and specified in the grant contract, generated from the primary project

entity within the development area minus relocation revenue;

(21) "Old revenues" means the amount of revenues received with respect to a

development area:

(a) Established under KRS 65.686, in the last calendar year prior to the

commencement date for the development area, revenues which constitute ad

valorem taxes other than the school and fire district portions of ad valorem

taxes received from real property in the development area and occupational

license fees generated from the development area; or

(b) Satisfying the requirements of KRS 65.6971, in the last calendar year prior to

the commencement date for the development area, revenues which constitute

ad valorem taxes other than the school and fire district portions of ad valorem

taxes received from real property in the development area; or

(c) Satisfying the requirements of KRS 65.6972, in the period of no longer than

three (3) calendar years prior to the commencement date, the average as

determined by the Department of Revenue to be a fair representation of

revenues derived from ad valorem taxes, other than the school and fire district

portions of ad valorem taxes, from real property in the development area, and

Kentucky individual income tax, Kentucky sales and use taxes, local

insurance premium taxes, occupational license fees, and other such state taxes

as may be determined by the Department of Revenue as specified in the grant

contract generated from the development area. With respect to this paragraph,

if the development area was within an active enterprise zone for the period

used by the Department of Revenue for measuring old revenues, then the

calculation of old revenues shall include the amounts of ad valorem taxes,

other than the school and fire district portions of ad valorem taxes, that would

have been generated from real property, Kentucky individual income tax,

Kentucky sales and use taxes, local insurance premium taxes, occupational

license fees, and other such state taxes as may be determined by the

Department of Revenue as specified in the grant contract, were the

development area not within an active enterprise zone. With respect to this

paragraph, if the primary project entity generated old revenue prior to the

commencement date in the development area or revenues were derived from

the development area prior to the commencement date of the development

area, then revenues shall increase each calendar year by the percentage

increase of the consumer price index, if any;

(22) "Outstanding" means increment bonds that have been issued, delivered, and paid

for, except any of the following:

(a) Increment bonds canceled upon surrender, exchange, or transfer, or upon

payment or redemption;

(b) Increment bonds in replacement of which or in exchange for which other

bonds have been issued; or

(c) Increment bonds for the payment, or 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;

(23) "Primary project entity" means the entity responsible for control, ownership, and

operation of the project within a development area satisfying the requirements of

KRS 65.6972 which generates the greatest amount of new revenues or, in the case

of a proposed development area satisfying the requirements of KRS 65.6972, is

expected to generate the greatest amount of new revenues;

(24) "Project" means, for purposes of a development area:

(a) Established under KRS 65.686, any property, asset, or improvement certified

by the governing body, which certification is conclusive as:

1. Being for a public purpose;

2. Being for the development of facilities for residential, commercial,

industrial, public, recreational, or other uses, or for open space, or any

combination thereof, which is determined by the governing body

establishing the development areas as contributing to economic

development;

3. Being in or related to a development area; and

4. Having an estimated life or period of usefulness of one (1) year or more,

including but not limited to real estate, buildings, personal property,

equipment, furnishings, and site improvements and reconstruction,

rehabilitation, renovation, installation, improvement, enlargement, and

extension of property, assets, or improvements so certified as having an

estimated life or period of usefulness of one (1) year or more;

(b) Satisfying the requirements of KRS 65.6971; an economic development

project defined under KRS 154.22-010, 154.24-010, or 154.28-010; or a

tourism attraction project defined under KRS 148.851; or

(c) Satisfying the requirements of KRS 65.6972, the development of facilities for:

1. The transportation of goods or persons by air, ground, water, or rail;

2. The transmission or utilization of information through fiber-optic cable

or other advanced means;

3. Commercial, industrial, recreational, tourism attraction, or educational

uses; or

4. Any combination thereof;

(25) "Relocation revenue" means the ad valorem taxes, other than the school and fire

district portions of ad valorem taxes, from real property, Kentucky individual

income tax, Kentucky sales and use taxes, local insurance premium taxes,

occupational license fees, and other such state taxes as specified in the grant

contract, received by a taxing district attributable to that portion of the existing

operations of the primary project entity located in the Commonwealth and

relocating to the development area satisfying the requirements of KRS 65.6972;

(26) "Special fund" means a special fund created in accordance with KRS 65.688 into

which increments are to be deposited;

(27) "Taxing district" means a city, county, or other taxing district that encompasses all

or part of a development area, or the Commonwealth, but does not mean a school

district or fire district;

(28) "Termination date" means the date on which a development area shall cease to

exist, which for purposes of a development area:

(a) Established under KRS 65.686, shall be:

1. For a period of no longer than twenty (20) years from the

commencement date and set forth in the grant contract; or

2. For a period as determined under KRS 65.687.

Increment bonds shall not mature on a date beyond the termination date

established by this paragraph; or

(b) Satisfying the requirements of KRS 65.6971, shall be for a period of no longer

than twenty (20) years from the commencement date and set forth in the grant

contract constituting a master agreement, except that for an addendum added

to the master agreement for each project in the development area, the

termination date may be extended to no longer than twenty (20) years from the

date of each addendum; or

(c) Satisfying the requirements of KRS 65.6972, shall be for a period of no longer

than twenty (20) years from the activation date of the grant contract.

Increment bonds shall not mature on a date beyond the termination date

established by this subsection;

(29) "Tourism development authority" means the Tourism Development Finance

Authority as created in KRS 148.850; and

(30) "Project costs" mean the total private and public capital costs of a project.