{"data":{"id":"us-ky/krs-65.7045","jurisdiction":"us-ky","citation":"KRS 65.7045","heading":"Definitions for KRS 65.7041 to 65.7083.","body":"As used in KRS 65.7041 to 65.7083:\n(1) \"Activation date\" means the date established any time within a two (2) year period\nafter the commencement date. The activation date is the date on which the time\nperiod for the pledge of incremental revenues shall com mence. The governing body\nmay extend the two (2) year period to no more than four (4) years upon written\napplication by the agency requesting the extension. To implement the activation\ndate, the agency that is a party to the local participation agreement o r the local\ndevelopment area agreement shall notify the governing body that created the\ndevelopment area or local development area;\n(2) \"Agency\" means:\n(a) An urban renewal and community development agency established under\nKRS Chapter 99;\n(b) A development authority established under KRS Chapter 99;\n(c) A nonprofit corporation;\n(d) A housing authority established under KRS Chapter 80;\n(e) An air board established under KRS 183.132 to 183.160;\n(f) A local industrial development authority established under K RS 154.50 -301\nto 154.50-346;\n(g) A riverport authority established under KRS 65.510 to 65.650;\n(h) A transportation improvement district established under KRS 184.350 to\n184.395; or\n(i) A designated department, division, or office of a city or county;\n(3) \"Arena\" means a facility which serves primarily as a venue for athletic events, live\nentertainment, and other performances, and which has a permanent seating capacity\nof at least five thousand (5,000);\n(4) \"Authority\" means the Kentucky Economic Development Finance Authority\nestablished by KRS 154.20-010;\n(5) \"Brownfield site\" means real property, the expansion, redevelopment, or reuse of\nwhich may be complicated by the presence or potential presence of a ha zardous\nsubstance, pollutant, or contaminant;\n(6) \"Capital investment\" means:\n(a) Obligations incurred for labor and to contractors, subcontractors, builders, and\nmaterialmen in connection with the acquisition, construction, installation,\nequipping, and rehabilitation of a project;\n(b) The cost of acquiring land or rights in land within the development area on the\nfootprint of the project, and any cost incident thereto, including recording\nfees;\n(c) The cost of contract bonds and of insurance of all kinds t hat may be required\nor necessary during the course of acquisition, construction, installation,\nequipping, and rehabilitation of a project which is not paid by the contractor\nor contractors or otherwise provided;\n(d) All costs of architectural and engineeri ng services, including test borings,\nsurveys, estimates, plans, specifications, preliminary investigations,\nsupervision of construction, and the performance of all the duties required by\nor consequent upon the acquisition, construction, installation, equip ping, and\nrehabilitation of a project;\n(e) All costs that are required to be paid under the terms of any contract for the\nacquisition, construction, installation, equipping, and rehabilitation of a\nproject; and\n(f) All other costs of a nature comparable to those described in this subsection;\n(7) \"City\" means any city, consolidated local government, or urban-county government;\n(8) \"Commencement date\" means:\n(a) The date on which a local development area agreement is executed; or\n(b) The date on which a local participation agreement is executed;\n(9) \"Commonwealth\" means the Commonwealth of Kentucky;\n(10) \"County\" means any county, consolidated local government, charter county, unified\nlocal government, or urban-county government;\n(11) \"Debt charges\" means the principal, including any mandatory sinking fund deposits,\ninterest, and any redemption premium, payable on increment bonds as the payments\ncome due and are payable and any charges related to the payment of the foregoing;\n(12) \"Development area\" means an ar ea established under KRS 65.7049, 65.7051, and\n65.7053;\n(13) \"Economic development projects\" means projects which are approved for tax\ncredits under Subchapter 20, 22, 23, 24, 25, 26, 27, 28, 34, or 48 of KRS Chapter\n154;\n(14) \"Establishment date\" means th e date on which a development area or a local\ndevelopment area is created. If the development area, local development area,\ndevelopment area plan, or local development area plan is modified or amended\nsubsequent to the original establishment date, the modi fications or amendments\nshall not extend the existence of the development area or local development area\nbeyond what would be permitted under KRS 65.7041 to 65.7083 from the original\nestablishment date;\n(15) \"Governing body\" means the body possessing legis lative authority in a city or\ncounty;\n(16) \"Increment bonds\" means bonds and notes issued for the purpose of paying the costs\nof one (1) or more projects, or grant or loan programs as described in subsection\n(30)(c) of this section, in a development area or a local development area;\n(17) \"Incremental revenues\" means the amount of revenues received by a taxing district,\nas determined by subtracting old revenues from new revenues in a calendar year\nwith respect to a development area, a project within a develo pment area, or a local\ndevelopment area;\n(18) \"Issuer\" means a city, county, or agency issuing increment bonds;\n(19) \"Local development area\" means a development area established under KRS\n65.7047;\n(20) \"Local development area agreement\" means an agreement  entered into under KRS\n65.7047;\n(21) \"Local participation agreement\" means the agreement entered into under KRS\n65.7063;\n(22) \"Local tax revenues\" means:\n(a) Revenues derived by a city or county from one (1) or more of the following\nsources:\n1. Real property ad valorem taxes;\n2. Occupational license taxes, excluding occupational license taxes that\nhave already been pledged to support an economic development project\nwithin the development area; and\n3. The occupational license fee permitted by KRS 65.7056; and\n(b) Revenues derived by any taxing district other than school districts or fire\ndistricts from real property ad valorem taxes;\n(23) \"Low-income household\" means a household in which gross income is no more\nthan two hundred percent (200%) of th e poverty guidelines updated periodically in\nthe Federal Register by the United States Department of Health and Human\nServices under the authority of 42 U.S.C. sec. 9902(2);\n(24) \"Mixed-use\" has the same meaning as in KRS 154.30-060;\n(25) \"New revenues\" me ans the amount of local tax revenues received by a taxing\ndistrict with respect to a development area or a local development area in any\ncalendar year beginning with the year in which the activation date occurred;\n(26) \"Old revenues\" means the amount of local tax revenues received by a taxing district\nwith respect to a development area or a local development area during the last\ncalendar year prior to the commencement date. If the governing body determines\nthat the amount of local tax revenues received duri ng the last calendar year prior to\nthe commencement date does not represent a true and accurate depiction of\nrevenues, the governing body may consider revenues for a period of no longer than\nthree (3) calendar years prior to the commencement date, so as to  determine a fair\nrepresentation of local tax revenues;\n(27) \"Outstanding\" means increment bonds that have been issued, delivered, and paid for\nby the purchaser, except any of the following:\n(a) Increment bonds canceled upon surrender, exchange, or transfe r, or upon\npayment or redemption;\n(b) Increment bonds in replacement of which or in exchange for which other\nincrement bonds have been issued; or\n(c) Increment bonds for the payment, redemption, or purchase for cancellation\nprior to maturity, of which suff icient moneys or investments, in accordance\nwith the ordinance or other proceedings or any applicable law, by mandatory\nsinking fund redemption requirements, or otherwise, have been deposited, and\ncredited in a sinking fund or with a trustee or paying or e scrow agent, whether\nat or prior to their maturity or redemption, and, in the case of increment bonds\nto be redeemed prior to their stated maturity, notice of redemption has been\ngiven or satisfactory arrangements have been made for giving notice of that\nredemption, or waiver of that notice by or on behalf of the affected bond\nholders has been filed with the issuer or its agent;\n(28) \"Planning unit\" means a planning commission established pursuant to KRS Chapter\n100;\n(29) \"Project\" means any property, asset, or improvement located in a development area\nor a local development area and certified by the governing body as:\n(a) Being for a public purpose; and\n(b) Being for the development of facilities for residential, commercial, industrial,\npublic, recreational , or other uses, or for open space, including the\ndevelopment, rehabilitation, renovation, installation, improvement,\nenlargement, or extension of real estate and buildings; and\n(c) Contributing to economic development or tourism;\n(30) \"Redevelopment assis tance,\" as utilized within a development area, includes the\nfollowing:\n(a) Technical assistance programs to provide information and guidance to\nexisting, new, and potential businesses and residences;\n(b) Programs to market and promote the development area and attract new\nbusinesses and residents;\n(c) Grant and loan programs to encourage the construction or rehabilitation of\nresidential, commercial, and industrial buildings; improve the appearance of\nbuilding facades and signage; and stimulate business start-ups and expansions;\n(d) Programs to obtain a reduced interest rate, down payment, or other improved\nterms for loans made by private, for -profit, or nonprofit lenders to encourage\nthe construction or rehabilitation of residential, commercial, and industria l\nbuildings; improve the appearance of building facades and signage; and\nstimulate business start-ups and expansions;\n(e) Local capital improvements, including but not limited to the installation,\nconstruction, or reconstruction of streets, lighting, pedestrian amenities, public\nutilities, public transportation facilities, public parking, parks, playgrounds,\nrecreational facilities, and public buildings and facilities;\n(f) Improved or increased provision of public services, including but not limited\nto police or security patrols, solid waste management, and street cleaning;\n(g) Provision of technical, financial, or other assistance in connection with:\n1. Applications to the Energy and Environment Cabinet for a brownfields\nassessment or a No Further Remediati on Letter issued pursuant to KRS\n224.1-450; or\n2. Site remediation by means of the Voluntary Environmental Remediation\nProgram to remove environmental contamination in the development\narea, or lots or parcels within it, pursuant to KRS 224.1 -510 to 224.1 -\n532; and\n(h) Direct development by a city, county, or agency of real property acquired by\nthe city, county, or agency. Direct development may include one (1) or more\nof the following:\n1. Assembly and replatting of lots or parcels;\n2. Rehabilitation of existing structures and improvements;\n3. Demolition of structures and improvements and construction of new\nstructures and improvements;\n4. Programs of temporary or permanent relocation assistance for businesses\nand residents;\n5. The sale,  lease, donation, or other permanent or temporary transfer of\nreal property to public agencies, persons, and entities both for profit and\nnonprofit; and\n6. The acquisition and construction of projects;\n(31) \"Service payment agreement\" means an agreement between a city, county, or issuer\nof increment bonds or other obligations and any person, whereby the person agrees\nto guarantee the receipt of incremental revenues, or the payment of debt charges, or\nany portion thereof, on increment bonds or other obligati ons issued by the city,\ncounty, or issuer;\n(32) \"Special fund\" means a special fund created under KRS 65.7061 in which all\nincremental revenues shall be deposited;\n(33) \"Taxing district\" means any city, county, or special taxing district other than school\ndistricts and fire districts;\n(34) \"Tax incentive agreement\" means an agreement entered into under KRS 154.30 -\n070;\n(35) \"Termination date\" means:\n(a) For a development area, a date established by the ordinance creating the\ndevelopment area that is no more than twenty (20) years from the\nestablishment date. If a tax incentive agreement for a project within a\ndevelopment area or a local participation agreement relating to the\ndevelopment area has a termination date that is later than the termination date\nestablished in the ordinance, the termination date for the development area\nshall be extended to the termination date of the tax incentive agreement, or\nlocal participation agreement. However, the termination date for the\ndevelopment area shall in no event be more than forty (40) years from the\nestablishment date;\n(b) For a local development area, a date established by the ordinance creating the\nlocal development area that is no more than twenty (20) years from the\nestablishment date, provided that if a local d evelopment area agreement\nrelating to the local development area has a termination date that is later than\nthe termination date established in the ordinance, the termination date for the\nlocal development area shall be extended to the termination date of t he local\ndevelopment area agreement;\n(c) For a local participation agreement, a date that is no more than twenty (20)\nyears from the activation date. However, the termination date for a local\nparticipation agreement shall in no event be more than forty (40 ) years from\nthe establishment date of the development area to which the local participation\nagreement relates; and\n(d) For a local development area agreement, a date that is no more than twenty\n(20) years from the activation date. However, the termination  date for a local\ndevelopment area agreement shall in no event be more than forty (40) years\nfrom the establishment date of the local development area to which the\ndevelopment area agreement relates; and\n(36) \"University research park\" means land owned by a public university that has been\ndesignated by the public university as being primarily for the development of\nprojects and facilities to support high -tech, pharmaceutical, laboratory, and other\nresearch-based businesses, including projects and facilities  to support and\ncomplement the development of high -tech, pharmaceutical, laboratory, and other\nresearch-based businesses.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=53031","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:22Z","sha256":"6ef90fa97e1e327665c4559d98a31f56e4f3355124e244085b9e866c86c69b37","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.7044","next":"us-ky/krs-65.7047"},"notice":"GroundRules: Original legal text. Not legal advice."}