Kentucky Statutes 154.30-080 – Requirement that minimal capital investment be made prior to the release of incremental revenues — Escrow account — Cancellation if agency fails to meet minimum investment — Duties of authority to monitor agreements …
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(1) (a) Prior to any incremental revenues being released by the Commonwealth for any project, the authority shall certify that the minimum capital investment has been made as required by the tax incentive agreement.
(b) Incremental revenues received after the activation date but prior to certification of the minimum capital investment shall be retained by the Commonwealth until the minimum capital investment is certified by the authority. The incremental revenues shall be released to the agency upon certification. If the minimum capital investment is not certified within the time period established by the authority, the incremental revenues shall be forfeited to the Commonwealth.
(c) The tax incentive agreement shall be canceled and the approved agency shall not be eligible for incentives if the agency fails to meet the minimum capital investment established by KRS § 154.30-040, 154.30-050, or 154.30-060 on the activation date.
(2) The authority shall monitor all tax incentive agreements and shall verify for each project expenditure identified as approved public infrastructure costs and where applicable, financing costs, approved signature project costs and expenses for land preparation, demolition and clearance.
(3) The authority and the department shall track the amount of incremental revenues released to each agency under each tax incentive agreement.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 199, sec. 29, effective July 14, 2018. — Repealed, reenacted, and amended 2008 Ky. Acts ch. 178, sec. 21, effective July 15, 2008. — Created 2007 Ky. Acts ch. 95, sec. 21, effective March 23, 2007.
Formerly codified as KRS § 65.7081.
(b) Incremental revenues received after the activation date but prior to certification of the minimum capital investment shall be retained by the Commonwealth until the minimum capital investment is certified by the authority. The incremental revenues shall be released to the agency upon certification. If the minimum capital investment is not certified within the time period established by the authority, the incremental revenues shall be forfeited to the Commonwealth.
Terms Used In Kentucky Statutes 154.30-080
- Activation date: means :
(a) For all projects except those described in paragraph (b) of this subsection, the date established any time within a two (2) year period after the commencement date. See Kentucky Statutes 154.30-010 - Agency: means :
(a) An urban renewal and community development agency established under
KRS Chapter 99. See Kentucky Statutes 154.30-010 - Approved public infrastructure costs: includes but is not limited to costs incurred for the following:
(a) Land preparation, including demolition and clearance work. See Kentucky Statutes 154.30-010 - Approved signature project costs: means :
(a) The acquisition of land for portions of the project that are for infrastructure. See Kentucky Statutes 154.30-010 - Authority: means the Kentucky Economic Development Finance Authority, consisting of a committee as set forth in KRS §. See Kentucky Statutes 154.1-010
- 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. See Kentucky Statutes 154.30-010 - Commonwealth: means the Commonwealth of Kentucky. See Kentucky Statutes 154.30-010
- Department: means the Department of Revenue. See Kentucky Statutes 154.30-010
- Financing costs: means principal, interest, costs of issuance, debt service reserve requirements, underwriting discount, costs of credit enhancement or liquidity instruments, and other costs directly related to the issuance of bonds or debt for approved public infrastructure costs or approved signature project costs for projects approved pursuant to KRS §. See Kentucky Statutes 154.30-010
- Incremental revenues: means :
(a) 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, or a project within a development area. See Kentucky Statutes 154.30-010 - Project: means any property, asset, or improvement located in a development area and certified by the governing body as:
(a) Being for a public purpose. See Kentucky Statutes 154.30-010 - Signature project: means a project approved under KRS §. See Kentucky Statutes 154.30-010
- Tax incentive agreement: means an agreement entered into in accordance with
KRS §. See Kentucky Statutes 154.30-010
(c) The tax incentive agreement shall be canceled and the approved agency shall not be eligible for incentives if the agency fails to meet the minimum capital investment established by KRS § 154.30-040, 154.30-050, or 154.30-060 on the activation date.
(2) The authority shall monitor all tax incentive agreements and shall verify for each project expenditure identified as approved public infrastructure costs and where applicable, financing costs, approved signature project costs and expenses for land preparation, demolition and clearance.
(3) The authority and the department shall track the amount of incremental revenues released to each agency under each tax incentive agreement.
Effective: July 14, 2018
History: Amended 2018 Ky. Acts ch. 199, sec. 29, effective July 14, 2018. — Repealed, reenacted, and amended 2008 Ky. Acts ch. 178, sec. 21, effective July 15, 2008. — Created 2007 Ky. Acts ch. 95, sec. 21, effective March 23, 2007.
Formerly codified as KRS § 65.7081.