KRS § 42.350 — KY Code / Title VI / Chapter 42 / Section 42.350
42.350 Area development fund for capital projects
Status: in_force

42.350 Area development fund for capital projects.

(1) The area development fund in the State Treasury shall be administered by the

Department for Local Government. The fund may receive state appropriations,

gifts, grants, and federal funds and shall be disbursed by the State Treasurer upon

the warrant of the commissioner of the Department for Local Government. Any

unallotted or unencumbered balances in the fund shall be invested in United States

government securities maturing not later than one (1) year from the date of

investment, and the income from the investments shall be prorated for expenditure

for capital projects in area development districts according to the formula provided

in KRS 42.370.

(2) Money in the fund shall be used only for capital projects which contribute to

community or industrial development in the Commonwealth, KRS 48.300 and

48.500 notwithstanding. Capital projects eligible for financing out of the fund

include and shall be limited to:

(a) The construction, reconstruction, renovation, and maintenance of buildings

and other improvements to real estate;

(b) The acquisition of real property and interests in real property;

(c) The purchase of major items of equipment;

(d) Industrial site development projects, including land reclamation, clearing,

grading, draining, landscaping, and the construction of walkways and fences;

(e) The extension and installation of water, gas, sewer, and electrical utilities

lines to public facilities and industrial sites;

(f) The provision of solid waste management or disposal systems bringing

counties into compliance with state or federal law. All expenses incurred in

connection with or incidental to the construction or acquisition of a capital

project under this section, including architectural, engineering, legal, and

other expenses required for the projects may be paid out of the fund. Money

in the fund may be used to retire a mortgage or other indebtedness

encumbering an eligible capital project made within the preceding five (5)

calendar years to secure the repayment of moneys loaned or advanced to

finance the construction or acquisition of the project and may be used in

match or in combination with funds obtained from other sources for an

eligible capital project. No money shall be expended out of the fund, directly

or indirectly, to pay or reimburse the cost of any feasibility study, master plan

for any capital improvement development or redevelopment project, the

purchase of consumable supplies or any administrative salary, or other

operating or capital expense of any area development district or for the

acquisition, construction, reconstruction, renovation, or maintenance of any

building or property of schools, state institutions of higher learning, or any

road, street, bridge, or highway.

(3) The board of directors of each area development district shall determine from

among the capital project proposals submitted by eligible beneficiary agencies, the

capital projects to be proposed to be constructed or acquired out of the fund. The

area development districts shall submit to the commissioner of the Department for

Local Government the capital projects selected for construction or acquisition

within the districts. Each project proposal shall include: a detailed description of the

project; a statement of the public benefit to be derived from the project; if available,

design plans and specifications for the project; an itemized estimate of the cost of

the project; a statement of the sources and amounts of funds available from any

other source for the construction or acquisition of the project; and other information

relating to the proposed capital project as the Department for Local Government

may require.