Source: http://www.wvlegislature.gov/Bill_Status/bills_text.cfm?billdoc=sb234%20intr.htm&yr=2011&sesstype=RS&i=234
Timestamp: 2018-01-19 06:30:51
Document Index: 641977314

Matched Legal Cases: ['§8', '§8', '§8', '§8', '§8', '§8', '§8', '§8', '§8', '§8']

A BILL to amend and reenact §8-38-3, §8-38-4, §8-38-5, §8-38-7, §8-38-10, §8-38-12, §8-38-15, §8-38-16, §8-38-17 and §8-38-20 of the Code of West Virginia, 1931, as amended, all relating to revising the Municipal Economic Opportunity Development District Act generally; enlarging the types of municipal corporations that may use sales tax increment financing to finance certain economic development projects to any Class I, Class II and Class III city and any Class IV town or village; including “mining operations” in the definition of “remediation”; including remediation of former coal mining sites as a permissible development expenditure for a project; changing the standard by which the maximum amounts of reserves that may be established in the financing of a project are measured; recommending that the Development Office consider whether the economic development that a project enables is large enough to require that it contain mixed-use development consisting of a housing component with at least ten percent of housing units in the district allocated for affordable housing when determining whether there is a pressing need for the project; defining “affordable housing”; allowing the Development Office to reduce the minimum amount of local sales tax revenues that would be deposited into the state’s General Revenue Fund in certain circumstances; providing that the maximum repayment schedule of all notes, bonds or other instruments issued to fund projects is thirty years; and providing technical and clerical cleanup.
(1) “Affordable housing” means housing that could be purchased with a cash down payment of at least ten percent and the proceeds of a mortgage loan, the monthly principal and interest payments on which do not exceed thirty percent of the gross monthly income of a household earning one hundred percent of the current median family income, as computed by the United States Department of Housing and Urban Development, for the county in which the district is located. For the purposes of this definition, the monthly principal and interest payments referred to in the preceding sentence are computed using a standard amortization calculation incorporating the prevailing annual rate of interest on mortgage loans offered by financial institutions in the vicinity of the district, as determined by the Development Office at the time of its review of a municipality’s application in accordance with section seven of this article, and a thirty year amortization period.
(1) (2) “Development expenditures” means payments for governmental functions, programs, activities, facility construction, improvements and other goods and services which a district board is authorized to perform or provide under section five of this article;
(2) (3) “District” means an economic opportunity development district created pursuant to this article;
(3) (4) “District board” means a district board created pursuant to section ten of this article;
(4) (5) “Eligible property” means any taxable or exempt real property located in a district established pursuant to this article;
(5) (6) “Municipality” is a word of art and shall mean, for the purposes of this article, only means any Class I, and Class II and Class III city or any Class IV town or village as classified in section three, article one of this chapter;
(6) (7) “Remediation” means measures undertaken to bring about the reconditioning or restoration of property located within the boundaries of an economic opportunity development district project that has been affected by exploration, mining, industrial operations or solid waste disposal and which measures, when undertaken, will eliminate or ameliorate the existing state of the property and enable the property to be commercially developed.
(4) Providing financial support for public transportation and vehicle parking facilities open to the general public, whether physically situate within the district’s boundaries or on adjacent land;
(5) Acquiring, building, demolishing, razing, constructing, repairing, reconstructing, refurbishing, renovating, rehabilitating, expanding, altering, otherwise developing, operating and maintaining real property generally, parking facilities, commercial structures and other capital improvements to real property, fixtures and tangible personal property, whether or not physically situate within the district’s boundaries: Provided, That the expenditure directly benefits the district;
(13) The Tax Commissioner’s certification of: (i) The amount of consumers sales and service taxes collected from businesses located in the economic opportunity district during the twelve calendar months preceding the calendar quarter during which the application will be submitted to the Development Office; (ii) the estimated amount of economic opportunity district excise tax that will be collected during the first twelve months after the month in which the Tax Commissioner would first begin to collect that tax; and (iii) the estimated amount of economic opportunity district excise tax that will be collected during the first thirty-six months after the month in which the Tax Commissioner would first begin to collect that tax; and
(B) Notwithstanding any provision of paragraph (A) of this subdivision to the contrary, no project involving remediation may be approved by the Development Office unless the amount of all development expenditures proposed to be made in the first forty-eight months following the creation of the district results in capital investment of more than $50 million in the district. In addition to the remaining provisions of paragraph (A) of this subdivision the Development Office may not approve a project involving remediation authorized under section five of this article unless the municipality submits clear and convincing information, to the satisfaction of the Development Office, that the proposed remediation expenditures to be financed by the issuance of bonds or notes pursuant to section sixteen of this article do not constitute more than twenty-five percent of the total redevelopment development expenditures associated with the project.
(f) Certification of enlargement of geographic boundaries of previously certified district. -- If the Executive Director of the Development Office approves a municipality’s economic opportunity district project application to expand the geographic boundaries of a previously certified district, he or she shall issue to the municipality a written certificate evidencing the approval.
(1) The ordinance of the municipality imposing a special district excise tax shall provide that the Tax Commissioner deposit the net amount of tax collected in the special Economic Opportunity Development District Fund to the credit of the municipality’s subaccount therein for the economic opportunity development district and that the money in the subaccount may only be used to pay for development expenditures as provided in this article except as provided in subsection (f) of this section.
(2) (A) The State Treasurer shall withhold from the municipality’s subaccount in the Economic Opportunity Development District Fund and shall deposit in the General Revenue Fund of this state, on or before the twentieth day of each calendar month next following the effective date of a special district excise tax, a sum equal to one twelfth of the base tax revenue amount last certified by the Development Office pursuant to section seven of this article.
(c) Term of obligations. -– No municipality may issue notes, bonds or other instruments for funding district projects or improvements that exceed a repayment schedule of thirty years: Provided, That the maximum repayment schedule of bonds issued to finance remediation authorized under section five of this article may not exceed twenty years.
(d) Debt service. -– The principal and interest on the bonds shall be is payable out of the funds on deposit in the subaccount established for the economic opportunity development district pursuant to section eight of this article, including, without limitation, any funds derived from the special district excise tax imposed by section twelve of this article or other revenues derived from the economic opportunity development district to the extent pledged for the purpose by the municipality in the resolution ordinance authorizing the bonds.
(f) Debt not general obligation of municipality. -– Neither the notes or bonds and any interest coupons issued under the authority of this article shall ever constitute an indebtedness of the municipality issuing the notes or bonds within the meaning of any Constitutional provision or statutory limitation and shall never do not constitute or give rise to a pecuniary liability of the municipality issuing the notes or bonds.
(i) Additional bonds or notes. -– If the proceeds of the bonds or notes, by error of calculation or otherwise, are less than the cost of the economic opportunity development district project, or if additional real or personal property is to be added to the district project or if it is determined that financing is needed for additional development or redevelopment expenditures, additional bonds or notes may, in like manner, be issued to provide the amount of the deficiency or to defray the cost of acquiring or financing any additional real or personal property or development or redevelopment expenditures and, unless otherwise provided in the trust agreement, mortgage or deed of trust, are considered to be of the same issue and shall be are entitled to payment from the same fund, without preference or priority, and shall be are of equal priority as to any security.
(a) General. -– Unless the municipality shall otherwise determine determines in the resolution ordinance authorizing the issuance of the bonds or notes under the authority of this article, there is hereby created a statutory lien upon the subaccount created pursuant to section eight of this article and all special district excise tax revenues collected for the benefit of the district pursuant to section eleven-a, article ten, chapter eleven of this code for the purpose of securing the principal of the bonds or notes and the interest thereon.
(b) Security for debt service. -– The principal of and interest on any bonds or notes issued under the authority of this article shall be secured by a pledge of the special district excise tax revenues derived from the economic opportunity development district project by the municipality issuing the bonds or notes to the extent provided in the resolution ordinance adopted by the municipality authorizing the issuance of the bonds or notes.
(f) No pecuniary liability. -– No breach of any agreement, indenture, mortgage or deed of trust shall may impose any pecuniary liability upon a municipality or any charge upon its general credit or against its taxing powers.
(b) Payment of costs. -– The costs that may be paid with the proceeds of the bonds include all development and redevelopment costs expenditures described in section five of this article and may also include, but not be limited to, the following:
(2) The actual cost of the construction of any part of an economic opportunity development district project which may be constructed, including architects’, engineers’, financial or other consultants’ and legal fees;
NOTE: The purpose of this bill is to revise the Municipal Economic Opportunity Development District Act generally. The bill enlarges the types of municipal corporations that may use sales tax increment financing to finance certain economic development projects to any Class I, Class II and Class III city and any Class IV town or village. The bill includes mining operations in the definition of remediation and includes remediation of former coal mining sites as a permissible development expenditure for a project. The bill changes the standard by which the maximum amounts of reserves that may be established in the financing of a project are measured. The bill recommends that the development office consider whether the economic development that a project enables is large enough to require that it contain mixed use development consisting of a housing component with at least ten percent of housing units in the district allocated for affordable housing when determining whether there is a pressing need for the project. The bill defines “affordable housing.” The bill allows the development office to reduce the minimum amount of local sales tax revenues that would be deposited into the state’s general revenue fund in certain circumstances. The bill provides that the maximum repayment schedule of all notes, bonds or other instruments issued to fund projects is thirty years.