KRS § 65.7045 — KY Code / Title IX / Chapter 65 / Section 65.7045
65.7045 Definitions for KRS 65.7041 to 65.7083
Status: in_force

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;

(h) A transportation improvement district established under KRS 184.350 to

184.395; or

(i) A designated department, division, or office of a city or county;

(3) "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);

(4) "Authority" means the Kentucky Economic Development Finance Authority

established by KRS 154.20-010;

(5) "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,

surveys, estimates, plans, specifications, preliminary investigations,

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;

(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;

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

(8) "Commencement date" means:

(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) 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

increment bonds have been issued; or

(c) 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, rehabilitation, renovation, installation, improvement,

enlargement, or extension of real estate and buildings; and

(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. Programs of temporary or permanent relocation assistance for businesses

and residents;

5. 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.