KRS § 148.855 — KY Code / Title XII / Chapter 148 / Section 148.855
148.855 Evaluation standards -- Tourism attraction project applications -- Lodging facility project applications -- Consulting services -- Optional interagency review -- Cabinet recommendations
Status: in_force

148.855 Evaluation standards -- Tourism attraction project applications -- Lodging

facility project applications -- Consulting services -- Optional interagency

review -- Cabinet recommendations.

(1) The cabinet shall promulgate administrative regulations in accordance with KRS

Chapter 13A to establish standards for the making of applications for incentives and

the recommendation of eligible companies and their tourism development projects

to the authority.

(2) The cabinet shall consult with the authority when establishing standards to ensure

that standards established pursuant to subsection (1) of this section and KRS

148.857(1) do not conflict.

(3) (a) The application for incentives shall be filed with the cabinet and shall include:

1. The name of the applicant;

2. Marketing plans for the tourism development project that target

individuals who are not residents of the Commonwealth;

3. A description and location of the tourism development project;

4. Capital and other anticipated expenditures for the tourism development

project that indicate that the total cost of the project shall exceed the

minimum required costs as provided in KRS 148.853, and the

anticipated sources of funding therefor;

5. The anticipated employment and wages to be paid at the tourism

development project;

6. Business plans which indicate the average number of days in a year in

which the tourism development project will be in operation and open to

the public;

7. The anticipated revenues and expenses generated by the tourism

development project;

8. If the tourism development project is an entertainment destination center

project, the application shall include the public infrastructure purpose;

and

9. Any other information as required by the cabinet.

(b) Based upon a review of these materials, if the cabinet determines that the

eligible company and the proposed tourism development project appears to

meet the requirements established by KRS 148.853, and that the proposed

tourism development project may reasonably satisfy the criteria for final

approval in subsection (4) of this section, the secretary of the cabinet may

submit a written request to the authority for a preliminary approval of the

eligible company and the tourism development project.

(4) The authority may review the request submitted by the secretary, including all

relevant materials, and may, based upon that review, grant preliminary approval to

an eligible company. Upon a preliminary approval by the authority, the cabinet

shall engage the services of a competent consulting firm to analyze the data made

available by the eligible company and to collect and analyze additional information

necessary to determine that, in the independent judgment of the consultant, the

proposed tourism development project:

(a) Will attract, in all years following the third year of operation, at least twenty-

five percent (25%) of its visitors from among persons who are not residents of

the Commonwealth, except for a theme restaurant destination attraction

project, which shall attract, in all years following the third year of operation, a

minimum of fifty percent (50%) of its visitors from among persons who are

not residents of the Commonwealth;

(b) Will have costs in excess of the minimum amount required by KRS 148.853;

(c) 1. Will have a net positive fiscal impact on the Commonwealth

considering, among other factors, the extent to which the proposed

tourism development project will compete directly with existing tourism

attractions or previously approved tourism development projects in the

Commonwealth and the amount by which increased tax revenues from

the tourism development project will exceed the incentives given to the

approved company at the maximum level of recovery of approved costs

as provided in KRS 148.853; or

2. If the independent consultant determines that the proposed tourism

development project cannot produce a net positive fiscal impact to the

Commonwealth at the maximum level of recovery of approved costs as

provided in KRS 148.853, the independent consultant shall determine

the level of recovery, if any, at which the proposed tourism development

project can meet those standards;

(d) Will produce sufficient revenues and public demand to be operating and open

to the public for a minimum of one hundred (100) days per year, except for a

theme restaurant destination attraction, which shall be operating and open to

the public for a minimum of three hundred (300) days per year;

(e) Will not adversely affect existing employment in the Commonwealth;

(f) Meets all other requirements of KRS 148.851 and 148.853; and

(g) For a lodging facility project defined in KRS 148.851(15)(b):

1. Will have an occupancy study conducted by an independent consultant

to determine the percentage of rooms occupied by other lodging

facilities:

a. With comparable accommodations as described in KRS

148.851(15)(b)3.; and

b. Within a fifty (50) mile radius of the proposed lodging facility

project;

for the most recent calendar year for data collected; and

2. Will have a net positive impact statement that will exclude from

consideration any impact related to state-funded infrastructure that was

approved prior to the application of the eligible company.

(5) The independent consultant, in determining the amount of net positive fiscal impact

to the Commonwealth for a new proposed tourism development project that is an

expansion of an existing tourism development project shall not consider positive

fiscal impacts from the following sources:

(a) Increased operations at the previously approved tourism development project

that is being expanded by the proposed tourism development project;

(b) Increased operations at any other tourism development project approved for

incentives provided under KRS 148.853; or

(c) Increased operations at any project approved for tax increment financing that

includes state revenues approved pursuant to Subchapter 30 of KRS Chapter

154.

(6) (a) The independent consultant shall consult with the authority, the Office of the

State Budget Director and the Finance and Administration Cabinet in the

development of a report on the proposed tourism development project.

(b) The Office of the State Budget Director and the Finance and Administration

Cabinet shall agree as to the methodology to be used and assumptions to be

made by the independent consultant in preparing its report.

(c) On the basis of the independent consultant's report and prior to any final

approval of a project by the authority, the Office of the State Budget Director

and the Finance and Administration Cabinet shall certify to the authority

whether there is a projected net positive fiscal impact to the Commonwealth

and the expected amount of incremental state revenues from the tourism

development project. A final approval shall not be granted if it is determined

that there is no projected net positive fiscal impact to the Commonwealth.

(7) The eligible company shall pay for the cost of the consultant's report and shall

cooperate with the consultant and provide all of the data that the consultant deems

necessary to make its determination under subsection (4) of this section.

(8) In lieu of the independent consultant analysis required in subsection (4) of this

section, if the eligible company is exempt from income tax under Section 501(c)(3)

of the Internal Revenue Code and the estimated approved costs are less than ten

million dollars ($10,000,000), the cabinet shall have the option of performing an

interagency review to analyze the data made available by the eligible company and

to collect and analyze additional information necessary to determine that the

proposed tourism development project meets the requirements set forth in

subsection (4)(a) of this section. The cabinet shall comply with the same consulting

and reporting requirements as an independent consultant.

(9) After a review of relevant materials, the consultant's report, and completion of other

inquiries, the secretary shall, by written notification to the authority, provide a

recommendation to the authority regarding final approval of the tourism

development project.