65.7045 Definitions for KRS 65.7041 to 65.7083.

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Page 1 of 6 65.7045 Definitions for KRS 65.7041 to 65.7083. As used in KRS 65.7041 to 65.7083: <br>(1) &quot;Activation date&quot; 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 <br>period for the pledge of incremental revenues shall commence. The governing body <br>may extend the two (2) year period to no more than four (4) years upon written <br>application by the agency requesting the extension. To implement the activation <br>date, the agency that is a party to the local participation agreement or the local <br>development area agreement shall notify the governing body that created the <br>development area or local development area; (2) &quot;Agency&quot; means: (a) An urban renewal and community development agency established under KRS Chapter 99; (b) A development authority established under KRS Chapter 99; <br>(c) A nonprofit corporation; <br>(d) A housing authority established under KRS Chapter 80; <br>(e) An air board established under KRS 183.132 to 183.160; <br>(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; or <br>(h) A designated department, division, or office of a city or county; (3) &quot;Arena&quot; means a facility which serves primarily as a venue for athletic events, live entertainment, and other performances, and which has a permanent seating capacity <br>of at least five thousand (5,000); (4) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority established by KRS 154.20-010; (5) &quot;Brownfield site&quot; means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of a hazardous <br>substance, pollutant, or contaminant; (6) &quot;Capital investment&quot; means: (a) Obligations incurred for labor and to contractors, subcontractors, builders, and materialmen in connection with the acquisition, construction, installation, <br>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 <br>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, <br>equipping, and rehabilitation of a project which is not paid by the contractor <br>or contractors or otherwise provided; Page 2 of 6 (d) All costs of architectural and engineering services, including test borings, surveys, estimates, plans, specifications, preliminary investigations, <br>supervision of construction, and the performance of all the duties required by <br>or consequent upon the acquisition, construction, installation, equipping, and <br>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 <br>project; and (f) All other costs of a nature comparable to those described in this subsection; (7) &quot;City&quot; means any city, consolidated local government, or urban-county government; <br>(8) &quot;Commencement date&quot; means: (a) The date on which a local development area agreement is executed; or <br>(b) The date on which a local participation agreement is executed; (9) &quot;Commonwealth&quot; means the Commonwealth of Kentucky; <br>(10) &quot;County&quot; means any county, consolidated local government, charter county, unified local government, or urban-county government; (11) &quot;Debt charges&quot; means the principal, including any mandatory sinking fund deposits, interest, and any redemption premium, payable on increment bonds as the payments <br>come due and are payable and any charges related to the payment of the foregoing; (12) &quot;Development area&quot; means an area established under KRS 65.7049, 65.7051, and 65.7053; (13) &quot;Economic development projects&quot; means projects which are approved for tax credits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter <br>154; (14) &quot;Establishment date&quot; means the date on which a development area or a local development area is created. If the development area, local development area, <br>development area plan, or local development area plan is modified or amended <br>subsequent to the original establishment date, the modifications or amendments <br>shall not extend the existence of the development area or local development area <br>beyond what would be permitted under KRS 65.7041 to 65.7083 from the original <br>establishment date; (15) &quot;Governing body&quot; means the body possessing legislative authority in a city or county; (16) &quot;Increment bonds&quot; 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 <br>(29)(c) of this section, in a development area or a local development area; (17) &quot;Incremental revenues&quot; means the amount of revenues received by a taxing district, as determined by subtracting old revenues from new revenues in a calendar year <br>with respect to a development area, a project within a development area, or a local <br>development area; (18) &quot;Issuer&quot; means a city, county, or agency issuing increment bonds; Page 3 of 6 (19) &quot;Local development area&quot; means a development area established under KRS 65.7047; (20) &quot;Local development area agreement&quot; means an agreement entered into under KRS 65.7047; (21) &quot;Local participation agreement&quot; means the agreement entered into under KRS 65.7063; (22) &quot;Local tax revenues&quot; means: (a) Revenues derived by a city or county from one (1) or more of the following sources: <br>1. Real property ad valorem taxes; 2. Occupational license taxes, excluding occupational license taxes that <br>have already been pledged to support an economic development project <br>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) &quot;Low-income household&quot; means a household in which gross income is no more than two hundred percent (200%) of the poverty guidelines updated periodically in <br>the Federal Register by the United States Department of Health and Human <br>Services under the authority of 42 U.S.C. sec. 9902(2); (24) &quot;New revenues&quot; 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 <br>calendar year beginning with the year in which the activation date occurred; (25) &quot;Old revenues&quot; 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 <br>calendar year prior to the commencement date. If the governing body determines <br>that the amount of local tax revenues received during the last calendar year prior to <br>the commencement date does not represent a true and accurate depiction of <br>revenues, the governing body may consider revenues for a period of no longer than <br>three (3) calendar years prior to the commencement date, so as to determine a fair <br>representation of local tax revenues; (26) &quot;Outstanding&quot; means increment bonds that have been issued, delivered, and paid for by the purchaser, except any of the following: <br>(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 <br>with the ordinance or other proceedings or any applicable law, by mandatory <br>sinking fund redemption requirements, or otherwise, have been deposited, and <br>credited in a sinking fund or with a trustee or paying or escrow agent, whether Page 4 of 6 at or prior to their maturity or redemption, and, in the case of increment bonds <br>to be redeemed prior to their stated maturity, notice of redemption has been <br>given or satisfactory arrangements have been made for giving notice of that <br>redemption, or waiver of that notice by or on behalf of the affected bond <br>holders has been filed with the issuer or its agent; (27) &quot;Planning unit&quot; means a planning commission established pursuant to KRS Chapter 100; (28) &quot;Project&quot; means any property, asset, or improvement located in a development area or a local development area and certified by the governing body as: <br>(a) Being for a public purpose; and <br>(b) Being for the development of facilities for residential, commercial, industrial, public, recreational, or other uses, or for open space, including the <br>development, rehabilitation, renovation, installation, improvement, enlargement, or extension of real estate and buildings; and (c) Contributing to economic development or tourism; (29) &quot;Redevelopment assistance,&quot; as utilized within a development area, includes the following: <br>(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 <br>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 <br>the construction or rehabilitation of residential, commercial, and industrial <br>buildings; improve the appearance of building facades and signage; and <br>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 <br>utilities, public transportation facilities, public parking, parks, playgrounds, <br>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 <br>assessment or a No Further Remediation Letter issued pursuant to KRS <br>224.01-450; or 2. Site remediation by means of the Voluntary Environmental Remediation <br>Program to remove environmental contamination in the development Page 5 of 6 area, or lots or parcels within it, pursuant to KRS 224.01-510 to 224.01-<br>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 <br>of the following: <br>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 <br>structures and improvements; 4. Programs of temporary or permanent relocation assistance for businesses <br>and residents; 5. The sale, lease, donation, or other permanent or temporary transfer of <br>real property to public agencies, persons, and entities both for profit and <br>nonprofit; and 6. The acquisition and construction of projects; (30) &quot;Service payment agreement&quot; means an agreement between a city, county, or issuer of increment bonds or other obligations and any person, whereby the person agrees <br>to guarantee the receipt of incremental revenues, or the payment of debt charges, or <br>any portion thereof, on increment bonds or other obligations issued by the city, <br>county, or issuer; (31) &quot;Special fund&quot; means a special fund created under KRS 65.7061 in which all incremental revenues shall be deposited; (32) &quot;Taxing district&quot; means any city, county, or special taxing district other than school districts and fire districts; (33) &quot;Tax incentive agreement&quot; means an agreement entered into under KRS 154.30- 070; and (34) &quot;Termination date&quot; 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 <br>establishment date. If a tax incentive agreement for a project within a <br>development area or a local participation agreement relating to the <br>development area has a termination date that is later than the termination date <br>established in the ordinance, the termination date for the development area <br>shall be extended to the termination date of the tax incentive agreement, or <br>local participation agreement. However, the termination date for the <br>development area shall in no event be more than forty (40) years from the <br>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 <br>establishment date, provided that if a local development area agreement <br>relating to the local development area has a termination date that is later than <br>the termination date established in the ordinance, the termination date for the Page 6 of 6 local development area shall be extended to the termination date of the local <br>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 <br>participation agreement shall in no event be more than forty (40) years from <br>the establishment date of the development area to which the local participation <br>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 <br>development area agreement shall in no event be more than forty (40) years <br>from the establishment date of the local development area to which the <br>development area agreement relates. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 24, sec. 58, effective July 15, 2010. -- Amended 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 57, effective June 26, 2009. -- Amended <br>2008 Ky. Acts ch. 178, sec. 2, effective July 15, 2008. -- Created 2007 Ky. Acts <br>ch. 95, sec. 3, effective March 23, 2007.