Kentucky Statutes 154.32-060 – Rehabilitation, replacement, or expansion of existing facilities — Criteria for approval as economic development project
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(1) The authority shall not approve an economic development project that otherwise meets the requirements of this subchapter if the economic development project will result in the replacement of facilities existing in the state, except as provided in this section.
(2) The authority may approve an economic development project that:
(a) Rehabilitates an existing facility used for activities of an eligible company, if:
1. The facility has not been in operation for a period of ninety (90) or more consecutive days; or
2. a. The current occupant of the facility has advertised a notice of closure; and
b. The eligible company proposing the economic development project is not an affiliate of the current occupant of the facility; or
3. a. The facility is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction; and
b. The title to the facility prior to the sale is not vested in the eligible company or an affiliate of the eligible company; or
4. The existing facility is rehabilitated to enable a business to produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment;
(b) Replaces an existing facility of an eligible company if:
1. a. Title to the facility:
i. Is held by exercise of the power of eminent domain; or
ii. May be taken pursuant to a nonappealable judgment granting authority to exercise the power of eminent domain; and
b. Normal operations at the facility cannot be resumed within twelve
(12) months; or
2. The facility has been damaged or destroyed by fire or other casualty to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
3. The existing facility is replaced to enable a business to produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment; or
(c) Replaces an existing facility located in the same county if the existing facility cannot be expanded due to the unavailability of real estate at or adjacent to the facility to be replaced. Any economic development project satisfying the requirements of this paragraph shall be eligible for incentives under this subchapter only to the extent of the expansion. No incentives shall be
available for the equivalent of the facility to be replaced or rehabilitated.
(3) The authority shall not approve an economic development project under this section which results in a lease abandonment or lease termination by the approved company without the consent of the lessor.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 185, sec. 121, effective June 29, 2021. — Created
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 14, effective June 26, 2009.
(2) The authority may approve an economic development project that:
Terms Used In Kentucky Statutes 154.32-060
- Authority: means the Kentucky Economic Development Finance Authority, consisting of a committee as set forth in KRS §. See Kentucky Statutes 154.1-010
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Project: includes but is not limited to agribusiness, agricultural or forestry production, harvesting, storage, or processing facilities or equipment. See Kentucky Statutes 154.1-010
- real estate: includes lands, tenements, and hereditaments and all rights thereto and interest therein, other than a chattel interest. See Kentucky Statutes 446.010
- State: means the Commonwealth of Kentucky. See Kentucky Statutes 154.1-010
(a) Rehabilitates an existing facility used for activities of an eligible company, if:
1. The facility has not been in operation for a period of ninety (90) or more consecutive days; or
2. a. The current occupant of the facility has advertised a notice of closure; and
b. The eligible company proposing the economic development project is not an affiliate of the current occupant of the facility; or
3. a. The facility is sold or transferred pursuant to a foreclosure ordered by a court of competent jurisdiction or an order of a bankruptcy court of competent jurisdiction; and
b. The title to the facility prior to the sale is not vested in the eligible company or an affiliate of the eligible company; or
4. The existing facility is rehabilitated to enable a business to produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment;
(b) Replaces an existing facility of an eligible company if:
1. a. Title to the facility:
i. Is held by exercise of the power of eminent domain; or
ii. May be taken pursuant to a nonappealable judgment granting authority to exercise the power of eminent domain; and
b. Normal operations at the facility cannot be resumed within twelve
(12) months; or
2. The facility has been damaged or destroyed by fire or other casualty to the extent that normal operations cannot be resumed at the facility within twelve (12) months; or
3. The existing facility is replaced to enable a business to produce vital medications, personal protective equipment, or equipment necessary to produce personal protective equipment; or
(c) Replaces an existing facility located in the same county if the existing facility cannot be expanded due to the unavailability of real estate at or adjacent to the facility to be replaced. Any economic development project satisfying the requirements of this paragraph shall be eligible for incentives under this subchapter only to the extent of the expansion. No incentives shall be
available for the equivalent of the facility to be replaced or rehabilitated.
(3) The authority shall not approve an economic development project under this section which results in a lease abandonment or lease termination by the approved company without the consent of the lessor.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 185, sec. 121, effective June 29, 2021. — Created
2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 14, effective June 26, 2009.