SB 244 Text

Senate Bill No. 244

(By Senators Tomblin (Mr. President) and Sprouse

By Request of the Executive)
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[Introduced January 18, 2002; referred to the Committee
on Economic Development; and then to the Committee on Finance

.]
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A BILL to amend and reenact article eleven-b, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating generally to tax increment financing; providing a short title; making legislative findings; stating legislative purpose; defining certain terms and phases; specifying tax increment financing procedures; providing for distribution of copies of tax increment financing order; empowering county commissions and municipalities to issue obligations for development project costs; dissolving tax increment financing fund and terminating existence of development project area; making provisions severable; providing for computation of local share when tax increment financing is used; prohibiting conflicts of interest; requiring periodic reports by county commissions and municipalities that create development or redevelopment districts and authorized development or redevelopment plans and projects; and requiring periodic reports by development office to governor and the Legislature.

Be it enacted by the Legislature of West Virginia:

That article eleven-b, chapter seven of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted to read as follows:
ARTICLE 11B. WEST VIRGINIA TAX INCREMENT FINANCING ACT.
§7-11B-1. Short title.

This article may be known and cited as "The West Virginia Tax Increment Financing Act."
§7-11B-2. Findings and legislative purpose.

It is hereby found and declared that capital improvements or facilities in any area which result in the increase in the value of property located in the area or encourage increased employment within the area will serve a public purpose for each taxing unit possessing the authority to impose ad valorem taxes in the area and that each development project developed pursuant to this article, and any leasehold interest therein, are declared to be public property, and shall be exempt from taxation by the state or any county, municipality or to other levying body as long as such development project is owned by the county commission.
§7-11B-3. Definitions.

(a)General. -- When used in this article, words and phrases defined in this section shall have the meanings ascribed to them in this section, unless a different meaning is clearly required either by the context in which the word or phrase is used or by specific definition in this article.

(b) Words and phrases defined.

(1) "Agency" means a county or municipal development agency established pursuant to authority granted in section one, article twelve, chapter seven of this code.

(2) "Base assessed value" means:

(A) The taxable assessed value of real and tangible personal property of a project developer having a tax situs within a development project area as shown upon the landbook and personal property records of the assessor on the first day of July of the year preceding the effective date of the order authorizing the tax increment financing plan; or

(B) The taxable assessed value of all real and tangible personal property having a tax situs within a project development area as shown upon the landbooks and personal property books of the assessor on the first day of July preceding the formation of the development district;

(3) "Blighted area" means an area in which the structures, buildings, or improvements, by reason of dilapidation, deterioration, age or obsolescence, inadequate provision for access, ventilation, light, air, sanitation, or open spaces, high density of population and overcrowding or the existence of conditions which endanger life or property, are detrimental to the public health, safety, morals, or welfare. "Blighted area" includes any area which, by reason of the presence of a substantial number of substandard, slum, deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements, diversity of ownership, defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a city, retards the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public health, safety, morals, or welfare in its present condition and use, or any area which is predominantly open and which because of lack of accessibility, obsolete platting, diversity of ownership, deterioration of structures or of site improvements, or otherwise, substantially impairs or arrests the sound growth of the community;

(4) "Conservation area" means any improved area within the boundaries of a development or redevelopment area located within the territorial limits of a municipality or county in which fifty percent or more of the structures in the area have an age of thirty-five years or more. A conservation area is not yet a blighted area but is detrimental to the public health, safety, morals, or welfare and may become a blighted area because of any one or more of the following factors: Dilapidation; obsolescence; deterioration; illegal use of individual structures; presence of structures below minimum code standards; abandonment; excessive vacancies; overcrowding of structures and community facilities; lack of ventilation, light or sanitary facilities; inadequate utilities; excessive land coverage; deleterious land use or layout; depreciation of physical maintenance; and lack of community planning. A conservation area shall meet at least three of the factors provided in this subdivision;

(5) "Current assessed value" means:

(A) The annual taxable assessed value of real and tangible personal property of a project developer having a tax situs within a development project area as shown upon the landbook and personal property records of the assessor; or

(B) The annual taxable assessed value of real and tangible personal property having a tax situs within a development project area as shown upon the landbook and personal property records of the assessor;

(6) "Development project" means a project undertaken by a county commission in a development project area for eliminating or preventing the development or spread of slums or deteriorated, deteriorating, or blighted areas, for discouraging the loss of commerce, industry, or employment, or for increasing employment, or any combination thereof in accordance with a tax increment financing plan. A development project may include one or more of the following:

(A) The acquisition of land and improvements, if any within the development project area and clearance of the land so acquired; or

(B) The development, redevelopment, revitalization, or conservation of the project area whenever necessary to provide land for needed public facilities, public housing, or industrial or commercial development or revitalization, to eliminate unhealthful, unsanitary, or unsafe conditions, to lessen density, mitigate or eliminate traffic congestion, reduce traffic hazards, eliminate obsolete or other uses detrimental to public welfare, or otherwise remove or prevent the spread of blight or deterioration; or

(C) The financial or other assistance in the relocation of persons and organizations displaced as a result of carrying out the development project and other improvements necessary for carrying out the project plan, together with those site improvements that are necessary for the preparation of any sites and making any land or improvements acquired in the project area available, by sale or lease, for public housing or for development, redevelopment, or rehabilitation by private enterprise for commercial or industrial uses in accordance with the plan;

(D) The construction of capital improvements within a development project area designed to increase or enhance the development of commerce, industry, or housing within the development project area; or

(E) Any other projects the county commission or the agency deems appropriate to carry out the purposes of this article;

(7) "Development project area" means an area to be designated by one or more agencies as a development project area, which may include one or more counties, municipalities or combination thereof.

(8) "Economic activity taxes", the total additional revenue from taxes which are imposed by the state, a municipality or county, and which are generated by economic activities within a development or redevelopment area over the amount of taxes generated by economic activities within the development or redevelopment area in the calendar year prior to the adoption of the ordinance designating the development or redevelopment area, while tax increment financing remains in effect including, but not limited to, state, municipal and county taxes but excluding intangible personal property taxes and employer withholding taxes, license taxes, and fees or special assessments. If a retail establishment relocates within one year from one facility to another facility within the same county and the governing body of the municipality finds that the relocation is a direct beneficiary of tax increment financing, then for purposes of this definition, the economic activity taxes generated by the retail establishment shall equal the total additional revenues from economic activity taxes which are imposed by the state, a municipality or county over the amount of economic activity taxes generated by the retail establishment in the calendar year prior to its relocation to the redevelopment area;

(9) "Economic development area" means any area or portion of an area located within the territorial limits of a municipality or county, which does not meet the requirements of paragraph (A) and (C) of this subdivision (9), and in which the governing body of the municipality or county, whichever is applicable, finds that development or redevelopment will not be solely used for development of commercial businesses which unfairly compete in the local economy and is in the public interest because it will:

(A) Discourage commerce, industry or manufacturing from moving their operations to another state; or

(B) Result in increased employment in the municipality or county, whichever is applicable; or

(10) "Incremental value," for any development or redevelopment project area, means the difference between the base assessed value and the current assessed value. The incremental value will be positive if the current value exceeds the base value, and the incremental value will be negative if the current value is less than the base assessed value;

(11) "Includes" and "including" when used in a definition contained in this article shall not be deemed to exclude other things otherwise within the meaning of the term being defined.

(12) "Obligations" means bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a municipality to carry out a redevelopment project or to refund outstanding obligations;

(13) "Ordinance" means an ordinance enacted by the governing body of a municipality or an order of the county commission;

(14) "Payment in lieu of taxes" means those estimated revenues from real property and tangible personal property having a tax situs in the area selected for a development or redevelopment project, which revenues according to the development or redevelopment project or plan are to be used for a private use, which levying bodies would have received had a county or municipality not adopted one or more tax increment financing plans, and which would result from levies made after the time of the adoption of tax increment financing plan during the time the current equalized value of real property in the area selected for the development or redevelopment project exceeds the total initial equalized value of real and tangible personal property in the development or redevelopment project area until the designation is terminated as provided in this article;

(15) "Person" means any natural person, and any corporation, association, partnership, limited partnership, limited liability company or other entity, regardless of its form, structure or nature, other than a government agency or instrumentality;

(16) "Private project" means any project which is subject to ad valorem property taxation in this state that is undertaken by a project developer in accordance with a tax increment financing plan in a development or redevelopment project area;

(17) "Project" means any facility requiring an investment of capital, including extensions, additions or improvements to existing facilities including water or wastewater facilities, and the remediation of contaminated property as provided for in article twenty-two, chapter twenty-two of this code, but does not include performance of any governmental service by a county or municipal government or any housing facility to be rented or used as a permanent residence;

(18) "Project costs" means expenditures made in preparation of the project plan and made, or estimated to be made, or monetary obligations incurred, or estimated to be incurred, by the county commission, which are listed in the project plan as costs of public works or improvements within a development project area, plus any costs incidental thereto. "Project costs" include, but are not limited to:

(A) Capital costs, including, but not limited to, the actual costs of the construction of public works or improvements, new buildings, structures, and fixtures, the demolition, alteration, remodeling, repair, or reconstruction of existing buildings, structures, and fixtures, environmental remediation, parking and landscaping, the acquisition of equipment, and site clearing, grading and preparation;

(B) Financing costs, including, but not limited to, a interest paid to holders of evidences of indebtedness issued to pay for project costs, all costs of issuance, and any redemption premiums, credit enhancement, or other related costs;

(C) Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the county commission of real or personal property having a tax situs within a development project area for consideration which is less than its cost to the county commission;

(D) Professional service costs, including, but not limited to those costs incurred for architectural planning, engineering and legal advice and services;

(E) Imputed administrative costs, including, but not limited to, reasonable charges for time spent by county or municipal employees in connection with the implementation of a project plan;

(F) Relocation costs, including, but not limited to, those relocation payments made following condemnation and job training and retraining;

(G) Organizational costs, including, but not limited to, the costs of conducting environmental impact and other studies, and the costs of informing the public with respect to the creation of a project development area and the implementation of project plans;

(H) The amount of any contributions made in connection with the implementation of the project plan;

(I) Payments made, in the discretion of the county commission or the governing body of a municipality, which are found to be necessary or convenient to creation of project development areas or the implementation of project plans; and

(J) That portion of costs related to the construction of environmental protection devices, storm or sanitary sewer lines, water lines, or amenities or streets or the rebuilding or expansion of streets, the construction, alteration, rebuilding, or expansion of which is necessitated by the project plan for a development project area, whether or not the construction, alteration, rebuilding, or expansion is within the area;

(19) "Project developer" means any person or corporation which engages in the development of projects in the state;

(20) "Project development area" means a contiguous geographic area within a municipality or county in which a development project will be undertaken, as defined and created by ordinance of the municipality or order of the county commission;

(21) "Project plan" means the plan which is adopted by the governing body of a municipality or the county commission for a development project;

(22) "Real property" means all lands, including improvements and fixtures on them and property of any nature appurtenant to them or used in connection with them and every estate, interest, and right, legal or equitable, in them, including terms of years and liens by way of judgment, mortgage, or otherwise, and indebtedness secured by the liens;

(23) "Redevelopment area" means an area designated by a municipality, in respect to which the municipality has made a finding that there exist conditions which cause the area to be classified as a blighted area, a conservation area, an economic development area, or a combination thereof, which area includes only those parcels of real property directly and substantially benefitted by the proposed redevelopment project;

(24) "Redevelopment plan", the comprehensive program of a municipality or county for redevelopment intended by the payment of redevelopment costs to reduce or eliminate those conditions, the existence of which qualified the redevelopment area as a blighted area, conservation area, economic development area, or combination thereof, and to thereby enhance the tax bases of the levying bodies which extend into the redevelopment area. Each redevelopment plan shall conform to the requirements of this article;

(25) "Redevelopment project", any development project within a redevelopment area in furtherance of the objectives of the redevelopment plan; any such redevelopment project shall include a legal description of the area selected for the redevelopment project;

(26) "Redevelopment project costs" include the sum total of all reasonable or necessary costs incurred or estimated to be incurred, and any such costs incidental to a redevelopment plan or redevelopment project, as applicable. Such costs include, but are not limited to, the following:

(A) Costs of studies, surveys, plans, and specifications;

(B) Professional service costs, including, but not limited to, architectural, engineering, legal, marketing, financial, planning or special services. Except the reasonable costs incurred by the commission established in section 99.820 for the administration of sections 99.800 to 99.865, such costs shall be allowed only as an initial expense which, to be recoverable, shall be included in the costs of a redevelopment plan or project;

(C) Property assembly costs, including, but not limited to, acquisition of land and other property, real or personal, or rights or interests therein, demolition of buildings, and the clearing and grading of land;

(D) Costs of rehabilitation, reconstruction, or repair or remodeling of existing buildings and fixtures;

(E) Initial costs for an economic development area;

(F) Costs of construction of public works or improvements;

(G) Financing costs, including, but not limited to, all necessary and incidental expenses related to the issuance of obligations, and which may include payment of interest on any obligations issued pursuant to sections 99.800 to 99.865 accrued during the estimated period of construction of any redevelopment project for which such obligations are issued and for not more than eighteen months thereafter, and including reasonable reserves related thereto;

(H) All or a portion of a taxing district's capital costs resulting from the redevelopment project necessarily incurred or to be incurred in furtherance of the objectives of the redevelopment plan and project, to the extent the municipality by written agreement accepts and approves such costs;

(I) Relocation costs to the extent that a municipality determines that relocation costs shall be paid or are required to be paid by federal or state law;

(J) Payments in lieu of taxes;

(27) "Special allocation fund" means the fund of a municipality or its commission which contains at least two separate segregated accounts for each redevelopment plan, maintained by the treasurer of the municipality or the treasurer of the commission into which payments in lieu of taxes are deposited in one account, and economic activity taxes and other revenues are deposited in the other account;

(28) "Special fund" means a separate fund for a development project area established by the county commission into which all tax increment revenues and other pledged revenues are deposited and from which all projected project costs are paid;

(29) "Tax increment" means:

(A) The amount of tax attributable to the amount by which the current assessed value of a private project in a development project area exceeds the base assessed value, if any, of the private project, less the portion of tax allocated to the state; or

(B) The incremental value of a development project area multiplied by the applicable ad valorem property levies;

(30) "Tax increment obligation" means any bond or note issued by a county commission in accordance with section six of this article.

(31) "Tax increment financing plan" means a plan proposed by either an agency or a project developer requesting that a specific development project be developed in conjunction with a private project of such project developer, which plan is approved by the county commission for the county in which the development project area is located in accordance with the procedures set forth in section four of this article.

(32) "Taxing unit" means a municipal corporation, a county commission or a county board of education.

(33) "Total ad valorem property tax levy rate" means the aggregate levy rate of all levying bodies, except the state, on all taxable property having a tax situs within a development or redevelopment project area in a tax year.

(34) "Taxing districts" means any political subdivision of this state having the power to levy taxes;

(35) "Taxing districts' capital costs" means those costs of the levying body for capital improvements that are found by the levying body or bodies to be necessary and to directly result from the development or redevelopment project; and

(36) "Vacant land" means any parcel or combination of parcels of real property not used for industrial, commercial, or residential buildings.
§7-11B-4. Tax increment financing procedures.

(a) An agency or a project developer may request that a county commission adopt a tax increment financing plan with respect to a development project to be developed in conjunction with a private project of a project developer. Upon receipt of an agency's or project developer's proposed tax increment financing plan, the county commission of any county may adopt a tax increment financing plan by entering an order designating a development project area, approving a tax increment financing plan and providing that ad valorem property taxes on real property owned by the project developer in the development project area shall be assessed, collected and allocated by the taxing units in such area in the following manner for so long as any tax increment financing obligations payable from the tax increment financing fund, hereinafter authorized, are outstanding and unpaid:

(1) The assessor shall record in the land and personal property books both the base assessed value and the current assessed value of the real and tangible personal property of the project developer in the development project area.

(2) Ad valorem taxes upon real and tangible personal property of the project developer which are attributable to the lower of the base assessed value or current assessed value of real and tangible personal property located in the development project area shall be allocated to the taxing units in the same manner as applicable in the year preceding adoption of the tax increment financing order.

(3) The tax increment with respect to the private project of the project developer in the development project area shall be allocated and paid into a separate special fund created for each development project entitled the "Tax Increment Financing Fund" and used to pay the principal of and interest on tax increment financing obligations issued to finance the costs of such development project. Any taxing unit having a private project or any portion thereof within its borders shall allocate its tax increment to such fund, provided, however, that the portion of property taxes allocable to the state shall be paid over to the state in accordance with law.

(3) In no event shall tax increment financing apply to any levies other than the levies provided for in article eight, chapter eleven of this code.

(b) Before entering an order approving a tax increment financing plan, the county commission in every county in which the development project area is located shall hold a public hearing on the need for tax increment financing in the county. Notice of the public hearing shall be published once each week for three successive weeks immediately preceding the public hearing as a Class III legal advertisement in accordance with section two, article three, chapter fifty-nine of this code. The notice shall include the time, place and purpose of the public hearing, describe in sufficient detail the tax increment financing plan, indicate the proposed boundaries of the development project area and the proposed tax increment financing obligations to be issued to finance the development project costs. All parties who appear at the hearing shall be afforded an opportunity to express their views on the proposal to undertake and finance the project.

(c) Proceeds from tax increment financing obligations issued under this article may be used only to pay for costs of development projects to foster economic development, including infrastructure and other public improvements prerequisite to private improvements, when such development projects would not reasonably be expected to occur without tax increment financing. There shall be a finding by any county commission which issues tax increment financing obligations that a development project is not reasonably expected to occur without the use of tax increment financing.

§7-11B-5. Copies of tax increment financing order to assessor, sheriff and director of the division of finance.

The county commission or municipality shall transmit to the assessor, sheriff, the director of the West Virginia development office and the state auditor, a copy of the tax increment financing order; a description of all real and tangible personal property of the project developer located within the development project area; a map indicating the boundaries of the development project area; and a description of the manner of collecting and allocating property taxes pursuant to this article.

§7-11B-6. Development or redevelopment plan, contents, adoption of plan, required findings; time limitations; reports.

(a) Each development or redevelopment plan shall set forth in writing a general description of the program to be undertaken to accomplish the objectives and shall include, but need not be limited to, the estimated development or redevelopment project costs, the anticipated sources of funds to pay the costs, evidence of the commitments to finance the project costs, the anticipated type and term of the sources of funds to pay costs, the anticipated type and terms of the obligations to be issued, the most recent equalized assessed valuation of the property within the redevelopment area which is to be subjected to payments in lieu of taxes and economic activity taxes pursuant to section 99.845, an estimate as to the equalized assessed valuation after redevelopment, and the general land uses to apply in the redevelopment area. No redevelopment plan shall be adopted by a municipality without findings that:

(1) The redevelopment area on the whole is a blighted area, a conservation area, or an economic development area, and has not been subject to growth and development through investment by private enterprise and would not reasonably be anticipated to be developed without the adoption of tax increment financing. Such a finding shall include, but not be limited to, a detailed description of the factors that qualify the redevelopment area or project pursuant to this subdivision and an affidavit, signed by the developer or developers and submitted with the redevelopment plan, attesting that the provisions of this subdivision have been met;

(2) The redevelopment plan conforms to the comprehensive plan for the development of the municipality as a whole;

(3) The estimated dates, which shall not be more than twenty-three years from the adoption of the ordinance approving a redevelopment project within a redevelopment area, of completion of any redevelopment project and retirement of obligations incurred to finance redevelopment project costs have been stated, provided that no ordinance approving a redevelopment project shall be adopted later than ten years from the adoption of the ordinance or order approving the development or redevelopment plan under which such project is authorized and provided that no property for a development or redevelopment project shall be acquired by eminent domain later than five years from the adoption of the order or ordinance approving the development or redevelopment project;

(4) A plan has been developed for relocation assistance for businesses and residences;

(5) A cost-benefit analysis showing the economic impact of the plan on each levying body which is at least partially within the boundaries of the development or redevelopment area. The analysis shall show the impact on the economy if the project is not built, and is built pursuant to the redevelopment plan under consideration. The cost-benefit analysis shall include a fiscal impact study on every affected political subdivision, and sufficient information from the developer for the agency and the governing body approving the project to evaluate whether the project as proposed is financially feasible;

(b) By the first day of October each year, each agency shall report to the director of the West Virginia development office the name, address, phone number and primary line of business of any business that relocates to the district during the immediately preceding fiscal year of the state. The director of the development office shall compile and report the same to the governor, the speaker of the House and the president of the Senate by the first day of February each year.

§7-11B-7. County and municipal powers and duties; public disclosure requirements; officials' conflict of interest, prohibited.

A county commission or the governing body of a municipality may:

(1) By order, or ordinance in the case of a municipality, approve development and redevelopment plans and projects, and designate development and redevelopment project areas pursuant to the notice and hearing requirements of this article. No development or redevelopment project shall be approved unless a development or redevelopment plan has been approved and a development or redevelopment area has been designated prior to or concurrently with the approval of the development or redevelopment project and the area selected for the project shall include only those parcels of real property and improvements thereon directly and substantially benefitted by the proposed development or redevelopment project improvements;

(2) Make and enter into all contracts necessary or incidental to the implementation and furtherance of its development or redevelopment plan or project;

(3) Pursuant to a development or redevelopment plan, subject to any constitutional limitations, acquire by purchase, donation, lease or eminent domain, own, convey, lease, mortgage, or dispose of, land and other property, real or personal, or rights or interests therein, and grant or acquire licenses, easements and options with respect thereto, all in the manner and at such price the municipality or the commission determines is reasonably necessary to achieve the objectives of the development or redevelopment plan. No conveyance, lease, mortgage, disposition of land or other property, acquired by the municipality or county commission, or agreement relating to the development of the property shall be made except upon the adoption of an ordinance by the governing body of the municipality or order of the county commission. Each county commission or municipality shall establish written procedures relating to bids and proposals for implementation of the development or redevelopment projects. Additionally, no conveyance, lease, mortgage, or other disposition of land or agreement relating to the development of property shall be made without making public disclosure of the terms of the disposition and all bids and proposals made in response to the request of the county commission or municipality, as the case may be. The procedures for obtaining the bids and proposals shall provide reasonable opportunity for any person to submit alternative proposals or bids;

(4) Within a development or redevelopment area, clear any area by demolition or removal of existing buildings and structures;

(5) Within a redevelopment area, renovate, rehabilitate, or construct any structure or building;

(6) Install, repair, construct, reconstruct, or relocate streets, utilities, and site improvements essential to the preparation of the redevelopment area for use in accordance with a development or redevelopment plan;

(7) Within a development or redevelopment area, fix, charge, and collect fees, rents, and other charges for the use of any building or property owned or leased by it or any part thereof, or facility therein;

(8) Accept grants, guarantees, and donations of property, labor, or other things of value from a public or private source for use within a development or redevelopment area;

(9) Acquire and construct public facilities within a development or redevelopment area;

(10) Incur development or redevelopment costs and issue obligations;

(11) Make payment in lieu of taxes, or a portion thereof, to levying bodies;

(12) Disburse surplus funds from the special allocation fund to levying bodies as follows:

(A) Such surplus payments in lieu of taxes shall be distributed to levying bodies within the development or redevelopment area which impose ad valorem taxes on a basis that is proportional to the current collections of revenue which each levying body receives from real and tangible personal property having a tax situs in the development or redevelopment area;

(B) Surplus economic activity taxes shall be distributed to levying bodies in the development or redevelopment area that impose economic activity taxes, on a basis that is proportional to the amount of such economic activity taxes the levying body would have received from the development or redevelopment area had tax increment financing not been adopted;

(C) Surplus revenues, other than payments in lieu of taxes and economic activity taxes, deposited in the special allocation fund, shall be distributed on a basis that is proportional to the total receipt of such other revenues in such account in the year prior to disbursement;

(13) If any member of the governing body of the municipality, a member of the county commission, or an employee or consultant of either, involved in the planning and preparation of a development or redevelopment plan, or a development or redevelopment project for a development or redevelopment area or proposed development or redevelopment area, owns or controls an interest, direct or indirect, in any property included in any development or redevelopment area, or proposed development or redevelopment area, he or she shall disclose the same in writing to the clerk of the municipality in which the property is located and to the clerk of the county commission and shall also so disclose the dates, terms, and conditions of any disposition of any such interest, which disclosures shall be acknowledged by county commission and the governing body of the municipality, if any, in which the property is located and entered upon the minutes books of the county commission and the governing body of the municipality, if the property is located in a municipality. If an individual holds such an interest, then that individual shall refrain from any further official involvement in regard to the development or redevelopment plan, development or redevelopment project or development or redevelopment area, from voting on any matter pertaining to the development or redevelopment plan, the development or redevelopment project or the development or redevelopment area, or communicating with other members concerning any matter pertaining to that plan, project or area. Additionally, no such member or employee shall acquire any interest, direct or indirect, in any property in a development or redevelopment area or proposed development or redevelopment area after either: (A) Such individual obtains knowledge of the plan or project; or (B) first published public notice of the plan, project or area, whichever first occurs;

(14) Charge as a development or redevelopment cost the reasonable costs incurred by its clerk or other official in administering the development or redevelopment project. The charge for the clerk's or other official's costs shall be determined by the county or municipality, as the case may be.

§7-11B-8. Reports by counties and municipalities, contents, and publication; procedure to determine progress of project; reports by development office, content of reports; rule making authority; development office to provide manual and assistance.

(a) Each year, the county commission and the governing body of the municipality, or its respective designee, shall prepare a report concerning the status of each development and redevelopment plan and each development and redevelopment project, and shall submit a copy of the report to the director of the West Virginia development office by the first day of October each year. The report shall include the following:

(1) The amount and source of revenue in the special allocation fund;

(2) The amount and purpose of expenditures from the special allocation fund;

(3) The amount of any pledge of revenues, including principal and interest on any outstanding bonded indebtedness;

(4) The original assessed value of the development or redevelopment project;

(5) The assessed valuation added to the development or redevelopment project;

(6) Payments made in lieu of taxes received and expended;

(7) The economic activity taxes generated within the redevelopment area in the fiscal year prior to the approval of the development or redevelopment plan, to include a separate entry for the state consumers sales tax revenue base for the development or redevelopment area and the state income tax withheld by employers on behalf of existing employees in the development or redevelopment area prior to approval of the development or redevelopment plan;

(8) The economic activity taxes generated within the redevelopment area after the approval of the redevelopment plan, to include a separate entry for the increase in state consumers sales and service tax revenues for the development or redevelopment area and the increase in state income tax withheld by employers on behalf of new employees who fill new jobs created in the development or redevelopment area;

(9) Reports on contracts made incident to the implementation and furtherance of a development or redevelopment plan or project;

(10) A copy of any development or redevelopment plan, which shall include the required findings and cost-benefit analysis;

(11) The cost of any property acquired, disposed of, rehabilitated, reconstructed, repaired or remodeled;

(12) The number of parcels acquired by or through initiation of eminent domain proceedings; and

(13) Any additional information the county commission or municipality deems necessary.

(b) Data contained in the report mandated pursuant to the provisions of subsection (a) of this section and any information regarding amounts disbursed to county commissions and municipalities pursuant to this article shall be deemed a public record, as defined in article one, chapter twenty-nine-b of this code. An annual statement showing the payments made in lieu of taxes received and expended in that year, the status of the development or redevelopment plan and projects therein, amount of outstanding bonded indebtedness and any additional information the county commission or municipality deems necessary shall be published in a newspaper of general circulation in the municipality.

(c) Five years after the establishment of a development or redevelopment plan and every five years thereafter the county commission or the governing body of the municipality, whichever is appropriate, shall hold a public hearing regarding those development and redevelopment plans and projects created pursuant to this article. The purpose of the hearing shall be to determine if the development or redevelopment project is making satisfactory progress under the proposed time schedule contained within the approved plans for completion of the projects. Notice of this public hearing shall be given in a newspaper of general circulation in the area served by the county commission or municipality, whichever is appropriate, once each week for four weeks immediately prior to the hearing.

(d) The director of the West Virginia development office shall submit a report to the governor, the speaker of the House of Delegates and the president of the Senate no later than February first of each year. The report shall contain a summary of all information received by the director pursuant to this section.

(e) For the purpose of coordinating all tax increment financing projects using new state revenues, the director of the West Virginia development office may promulgate rules in the manner provided in article three, chapter twenty-nine-a of this code, to ensure compliance with this section.

(f) The director of the West Virginia development office shall provide information and technical assistance, as requested by any county commission or municipality, on the requirements of this article. Such information and technical assistance shall be provided in the form of a manual, written in an easy- to-follow manner, and through consultations with staff of the development office.
§7-11B-9. Issuance of obligations for development project costs.

(a) A county commission or governing body of a municipal corporation may issue bonds or notes for the purpose of financing the cost of acquisition and construction of one or more development projects in a development project area within the county which will be sold, leased with an option by the lessee to purchase, leased or otherwise disposed of to a project developer. Such bonds or notes shall be issued and the payment of such bonds or notes secured in the manner provided by the applicable provisions of sections seven through thirteen, except to the extent that the provisions of said section thirteen are modified hereby with respect to the tax increment financing fund, fourteen, fifteen, seventeen, nineteen and twenty, article two-c, chapter thirteen of this code: Provided, That the principal and interest on such bonds or notes shall be payable out of the tax increment financing fund attributable to the related private project: Provided, however, That in the event the moneys on deposit in such tax increment financing fund are not sufficient to fully pay the debt service on such bonds or notes, then such bonds or notes shall be payable out of the revenues derived from the lease, lease with an option by the lessee to purchase, sale or other disposition in connection with the development project for which the bonds or notes are issued, or any other revenue derived from such project.

(b) No bonds or notes shall be issued under this article until all questions connected with the same shall have been first submitted to a vote of the qualified voters of the county or municipality for which the bonds or notes are to be issued, and shall have received three fifths of all the votes cast for and against the same: Provided, That if a development project area includes more than one county, the qualified voters in both counties must adopt the measure prior to any notes or bonds being issued. The county commission or governing body of the municipality referred to in this section may, by order entered of record, direct that an election be held for the purpose of submitting to the voters of the county all questions connected with the issuing of bonds or notes. Such order shall state:

(1) The reasons for issuing the bonds or notes;

(2) The purpose or purposes for which the proceeds of bonds or notes are to be expended;

(3) The amount of the proposed bond or note issue;

(4) The date of the election;

(5) If a special election, the names of commissioners for holding same; and

(6) That the tax increment attributable to the related private project shall be used to pay the principal and interest on such bonds or notes and will not be available for other purposes until such bonds or notes are paid in full.

Any other provision which does not violate any provision of law, or transgress any principle of public policy, may be incorporated in the order. The cost of such election, if any, shall be reimbursed by the project developer of the related private project: Provided, That no election is required in a municipality in which a project development area is located if the municipality is within a county holding an election. The order authorizing the issuance of tax increment obligations shall pledge all or such part of the funds deposited in the tax increment financing fund as are necessary for the payment of the debt service on such tax increment obligations.

(c) Any revenues in the tax increment financing fund which are not used for the payment of the principal of or interest on tax increment financing obligations issued shall be deemed "surplus funds" and at the end of each tax year shall be paid into the general funds of the taxing units in proportion to their respective contributions to the fund.
§7-11B-10. Terminating tax increment financing.

(a) Upon the retirement of all tax increment financing obligations payable from the tax increment financing fund, the county commission shall enter an order to dissolve the tax increment financing fund and to terminate the existence of a development or redevelopment project area. When the fund is dissolved, any and all revenue remaining in the fund after payment of all tax increment obligations payable therefrom shall be paid into the general fund of the levying bodies in proportion to their respective contributions to the fund.

(b) Upon dissolving the tax increment financing fund, real and tangible personal property shall be assessed and taxes collected and allocated in the same manner as applicable in the year preceding the adoption of the tax increment financing order.
§7-11B-11. Powers supplemental.

The powers conferred by this article are in addition and supplemental to the powers conferred upon county commissions, municipalities, county, municipal and regional economic development authorities by the Legislature relating to the issuance of bonds and refunding bonds.
§7-11B-12. Powers generally.

In addition to any other powers conferred by law, a county commission or municipality may exercise any powers necessary and convenient to carry out the purpose of this article, including the power to:

(1) Create development and redevelopment districts and to define the boundaries of those districts;

(2) Cause project plans to be prepared, to approve the project plans, and to implement the provisions and effectuate the purposes of the project plans;

(3) Issue development and redevelopment bonds and notes and to pledge tax increments and other revenues for repayment of them;

(4) Deposit moneys into the special fund for any development or redevelopment project district;

(5) Enter into any contracts or agreements, including agreements with bondholders, determined by the county commission of the governing body of the municipality to be necessary or convenient to implement the provisions and effectuate the purposes of project plans;

(6) Receive from the federal government or the state loans and grants for, or in aid of, a development or redevelopment project and to receive contributions from any other source to defray project costs;

(7) (A) Exercise the right of eminent domain to condemn property for the purposes of implementing the project plan.

(B) The rules and procedures set forth in chapter fifty-four of this code shall govern all condemnation proceedings authorized in this article;

(8) Make relocation payments to such persons, businesses, or organizations as may be displaced as a result of carrying out the development or redevelopment project;

(9) Clear and improve property acquired by it pursuant to the project plan and construct public facilities on it or contract for the construction, development, redevelopment, rehabilitation, remodeling, alteration, or repair of the property;

(10) Cause parks, playgrounds, or water, sewer, or drainage facilities, or any other public improvements, including, but not limited to, fire stations, community centers, and other public buildings, which it is otherwise authorized to undertake, to be laid out, constructed, or furnished in connection with the development or redevelopment project;

(11) Lay out and construct, alter, relocate, change the grade of, make specific repairs upon, or discontinue public ways and construct sidewalks in, or adjacent to, the development or redevelopment project;

(12) Cause private ways, sidewalks, ways for vehicular travel, playgrounds, or water, sewer, or drainage facilities and similar improvements to be constructed within the development or redevelopment project for the particular use of the development or redevelopment district or those dwelling or working in it;

(13) Construct any capital improvements of a public nature;

(14) Construct capital improvements to be leased or sold to private entities in connection with the goals of the development or redevelopment project;

(15) Designate one or more official or employee of the county commission or the municipality, to make decisions and handle the affairs of development and redevelopment districts created by the county commission or the municipality, pursuant to this article;

(16) Adopt ordinances or bylaws or repeal or modify such ordinances or bylaws or establish exceptions to existing ordinances and bylaws regulating the design, construction, and use of buildings within the development or redevelopment district created by a governing body of a municipality;

(17) Enter orders, adopt bylaws or repeal or modify such orders or bylaws or establish exceptions to existing orders and bylaws regulating the design, construction, and use of buildings within the development or redevelopment district created by a county commission;

(18) Sell, mortgage, lease, transfer, or dispose of any property, or interest therein, acquired by it pursuant to the project plan for development, redevelopment, or rehabilitation in accordance with the project plan;

(19) Invest project revenues as provided in this article; and

(20) Do all things necessary or convenient to carry out the powers granted in this article.
§7-11B-13. Creation of district.

(a) The county commission or the governing body of a municipality, upon its own initiative or upon request of an agency may designate the boundaries of a proposed redevelopment district.

(b) (1) The county commission or governing body of a municipality shall hold a public hearing at which interested parties are afforded a reasonable opportunity to express their views on the proposed creation of a development or redevelopment district and its proposed boundaries.

(2) (A) Notice of the hearing shall be published in a newspaper of general circulation in the county, or the municipality if the district is to be created by a municipality, at least fifteen days prior to the hearing.

(B) Prior to this publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all entities having the power to levy taxes on property located within the proposed development district.

(c) The county commission shall enter an order, and the governing body of a municipality shall adopt an ordinance, which:

(1) Describes the boundaries of a development or redevelopment district sufficiently definite to identify with ordinary and reasonable certainty the territory included in, which boundaries may create a contiguous or noncontiguous district;

(2) Creates the redevelopment district as of a date provided in it;

(3) (A) Assigns a name to the development or redevelopment district for identification purposes.

(B) The name may include a geographic or other designation, shall identify the city or county authorizing the district, and shall be assigned a number, beginning with the number one.

(4) Contains findings that the real property within the development district will be benefitted by eliminating or preventing the development or spread of slums or blighted, deteriorated, or deteriorating areas, or discouraging the loss of commerce, industry, or employment, or increasing employment, or any combination thereof.

(d) No county commission shall establish a development district, any portion of which is within the boundaries of a municipality: Provided, That one or more municipalities and one or more county commissions through interlocal agreement may join in the creation of a district, the boundaries of which lie in one or more municipalities or in one or more counties, or any combination thereof.

(e) (1) The ordinance or order, as the case may be, shall establish a special fund as a separate fund into which all tax increment revenues and other revenues designated by the county commission or municipality for the benefit of the redevelopment district shall be deposited, and from which all project costs shall be paid.

(2) Such special fund may be assigned to and held by a trustee for the benefit of bondholders if tax increment financing is used.

(f) The boundaries of the development or redevelopment district may be modified from time to time by order or ordinance of the county commission or municipality that created the district: Provided, That in the event any bonds, notes or other obligations are outstanding with respect to the development or redevelopment district, any change in the boundaries shall not reduce the amount of tax increment available to secure such tax increment financing. §7-11B-14. Project plan - Approval.

(a) (1) Upon the creation of the development or redevelopment district, the county commission or municipality creating the district shall cause the preparation of a project plan for each development or redevelopment district, and the project plan shall be adopted by order, if prepared by a county commission, or by ordinance if prepared by a municipality.

(2) This process shall conform to the procedures set forth in this section.

(b) Each project plan shall include:

(1) A statement listing the kind, number, and location of all proposed public works or improvements within the district or, to the extent provided, outside the district;

(2) An economic feasibility study;

(3) A detailed list of estimated project costs;

(4) A description of the methods of financing all estimated project costs, including the issuance of tax increment bonds, and the time when the costs or monetary obligations related thereto are to be incurred;

(5) A certification by the county assessor of the base value, total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the development or redevelopment district;

(6) The type and amount of any other revenues that are expected to be deposited to the special fund of the development or redevelopment district;

(7) A map showing existing uses and conditions of real property in the district;

(8) A map of proposed improvements and uses in the district;

(9) Proposed changes of zoning ordinances, if any;

(10) Appropriate cross-references to any master plan, map, building codes, and city ordinances or county commission orders affected by the project plan;

(11) A list of estimated nonproject costs; and

(12) A statement of the proposed method for the relocation of any persons to be displaced.

(c) If the project plan is to include tax increment financing, the tax increment financing portion of the plan shall set forth:

(1) The amount of indebtedness to be incurred pursuant to this article;

(2) An estimate of the tax increment to be generated as a result of the project;

(3) The method for calculating the tax increment, which shall be in conformance with the provisions of this article, together with any provision for adjustment of the method of calculation;

(4) Any other revenues, such as payment-in-lieu-of-taxes revenues, to be used to secure the tax increment financing; and

(5) Any other provisions as may be deemed necessary in order to carry out any tax increment financing to be used for the development or redevelopment project.

(d) If less than all of the tax increment is to be used to fund a development or redevelopment project or to pay project costs or retire tax increment financing, the project plan shall set forth the portion of the tax increment to be deposited in the special fund of the development or redevelopment district, and provide for the distribution of the remaining portion of the tax increment to the levying bodies in whose jurisdiction the district lies.

(e) (1) The county commission, or the governing body of a municipality, shall hold a public hearing at which interested parties are afforded a reasonable opportunity to express their views on the proposed project plan being considered by the county commission, or governing body of a municipality.

(2) (A) Notice of the hearing shall be published in a newspaper of general circulation in the county or municipality at least fifteen days prior to the hearing.

(B) Prior to this publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all levying bodies having the power to levy taxes on property located within the proposed development or redevelopment district.

(3) Prior to publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all levying bodies having the power to levy taxes on property within the district.

(f) (1) Approval by the county commission of a county project plan, or approval by the governing body of a municipality of a municipal project plan must be within one year after the date of the county assessor's certification required by subdivision (5), subsection (b) of this section.

(2) The approval shall be by order of the county commission, or ordinance of the municipality, which contains a finding that the plan is economically feasible.
§7-11B-15. Project plan - Amendment.

(a) The county commission may adopt by order an amendment to a county project plan. The governing body of a municipality may adopt by ordinance an amendment to a project plan of the municipality.

(b) (1) Adoption of an amendment to a project plan shall be preceded by a public hearing held by the county commission or governing body of the municipality, as the case may be, at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment.

(2) (A) Notice of the hearing shall be published in a newspaper of general circulation in the county or municipality once a week for two consecutive weeks. The first such publication shall be fifteen days prior to the hearing.

(B) Prior to publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all levying bodies having the power to levy taxes on property within the district.

(c) One or more existing development or redevelopment districts may be combined pursuant to lawfully adopted amendments to the original plans for each district: Provided, That the county commission, or the governing body of the municipality, as appropriate, finds that the combination of the districts will not impair the security for any bonds previously issued pursuant to this article.
§7-11B-16. Termination of district.

(a) No development or redevelopment district may be in existence for a period longer than twenty-five years, unless, pursuant to amendment of the development plan, additional bonds have been issued that will not be fully paid until after the date which is twenty-five years from the date of creation of the district.

(b) The county commission or municipality creating the district may set a shorter period for the existence of the district, and may also provide that no bonds shall have a final maturity on a date later than the termination date of the district.

(c) Upon termination of the district, no further ad valorem tax revenues shall be distributed to the special fund of the district.

(d) The county commission or governing body of the municipality shall adopt, upon the expiration of the time periods set forth in this section, an order, or ordinance, terminating the development or redevelopment district: Provided, That no district shall be terminated so long as bonds with respect to the district remain outstanding.
§7-11B-17. Costs of formation.

(a) The county commission, or the governing body of a municipality, may pay, but shall have no obligation to pay, the costs of preparing the project plan or forming the development district created by them.

(b) If the county commission, or the governing body of the municipality, as the case may be, elects not to incur those costs, they shall be made project costs of the district and reimbursed from bond proceeds or other financing, or may be paid by developers, property owners, or other persons interested in the success of the development project.
§7-11B-18. Overlapping districts.

The boundaries of any development and redevelopment districts shall not overlap with any other development or redevelopment district.
§7-11B-19. Valuation of real property.

(a) (1) Upon and after the effective date of the creation of a development or redevelopment project district, the county assessor of the county in which the district is located shall transmit to the county clerk, upon the request of entity creating the district, a certified statement of the base value, total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the development or redevelopment district.

(2) (A) The assessor shall undertake, upon request of the entity creating the development or redevelopment district, an investigation, examination, and inspection of the taxable real and tangible personal property having a tax situs in the district and shall reaffirm or revalue the base value for assessment of the property in accordance with the findings of the investigation, examination, and inspection.

(B) The assessor shall determine, according to his or her best judgment from all sources available to him or her, the full aggregate value of the taxable property in the district, which aggregate valuation, upon certification thereof by the assessor to the clerk, constitutes the base value of the area.

(b)(1) (A)(i) The assessor shall give notice annually to the designated finance officer of each levying body having the power to levy taxes on property within each district of the current value and the incremental value of the property in the development or redevelopment district.

(ii) The assessor shall also determine the tax increment by applying the applicable ad valorem rate to the incremental value.

(B) The notice shall also explain that the entire amount of the tax increment allocable to property within the development or redevelopment district will be paid to the special fund of the development or redevelopment district, as the case may be.

(2) The assessor shall identify upon the assessment roll those parcels of property which are within each existing district specifying on it the name of each district.
§7-11B-20. Division of ad valorem real property tax revenue.

(a) For so long as the development or redevelopment district exists, the county assessor shall divide the ad valorem tax revenue collected, with respect to taxable property in the district, as follows:

(1) The assessor shall determine for each tax year:

(A) The amount of total ad valorem tax revenue which should be generated by multiplying the total ad valorem rate times the current value;

(B) The amount of ad valorem tax revenue which should be generated by multiplying the applicable ad valorem rate times the base value;

(C) The amount of ad valorem tax revenue which should be generated by multiplying the debt service ad valorem rate times the current value; and

(D) The amount of ad valorem revenue which should be generated by multiplying the applicable ad valorem rate times the incremental value;

(2) The assessor shall determine from the calculations set forth in subdivision (a)(1) of this section the percentage share of total ad valorem revenue for each according to subdivisions (a)(1)(B) -- (D) of this section, by dividing each of such amounts by the total ad valorem revenue figure determined by the calculation in subdivision (a)(1)(A) of this section; and

(3) On each date on which ad valorem tax revenue is to be distributed to taxing units, such revenue shall be distributed by:

(A) Applying the percentage share determined according to subdivision (a)(1)(B) of this section to the revenues received and distributing such share to the taxing entities entitled to such distribution pursuant to current law;

(B) Applying the percentage share determined according to subdivision (a)(1)(C) of this section to the revenues received and distributing such share to the levying bodies entitled to such distribution by reason of having bonds outstanding; and

(C) Applying the percentage share determined according to subdivision (a)(1)(D) of this section to the revenues received and distributing such share to the special fund of the development or redevelopment district.

(b) In each year for which there is a positive tax increment, the county treasurer shall remit to the special fund of the development or redevelopment district, as the case may be, that portion of the ad valorem taxes that consists of the tax increment.

(c) Any additional moneys appropriated to the development or redevelopment district pursuant to an appropriation by county commission or municipality that created the district and any additional moneys dedicated to the fund from other sources shall be deposited to the development or redevelopment district fund by the treasurer of the entity that created the district.

(d) Any funds so deposited into the special fund of the development or redevelopment district may be used to pay project costs, principal and interest on bonds, and to pay for any other improvements of the development or redevelopment district deemed proper by the governing body of the entity that created the district.

(e) Unless otherwise directed pursuant to any agreement with bondholders, moneys in the fund may be temporarily invested in the same manner as other funds of the governing body that created the district.

(f) If less than all of the tax increment is to be used for project costs or pledged to secure tax increment financing as provided in the plan for the development or redevelopment project, the county treasurer shall account for that fact in distributing the ad valorem tax revenues. §7-11B-21. Payments in lieu of taxes and revenues.

(a) The county commission or the municipality that created the district may elect to deposit in the special fund of the development district all or any portion of the county commission's, or municipality's, share of payments in lieu of taxes on property within the development district.

(b) Other revenues to be derived from the development project may also be deposited in the special fund at the direction of the governing body that created the district.
§7-11B-22. Bonds generally.

(a) (1) Bonds may be issued for project costs which may include interest prior to and during the carrying out of a project and for a reasonable time thereafter, with such reserves as may be required by any agreement securing the bonds and all other expenses incidental to planning, carrying out, and financing the project.

(2) The proceeds of bonds may also be used to reimburse the costs of any interim financing entered on behalf of the development or redevelopment district.

(b) Bonds issued under this article shall be payable solely from the tax increment or other revenues deposited to the credit of the special fund of the redevelopment district and shall not be deemed to be a pledge of the faith and credit of the county commission or municipality issuing the bonds.

(c) Every bond issued under this article shall recite on its face that it is a special obligation bond payable solely from the tax increment and other revenues pledged for its repayment.
§7-11B-23. Development bonds or notes -- Authority to issue.

For the purpose of paying project costs or of refunding notes issued under this article for the purpose of paying project costs, the county commission or governing body of the municipality creating the district may issue development bonds or notes payable out of positive tax increments and other revenues deposited to the special fund of the development district.
§7-11B-24. Development bonds or notes -- Authorizing resolution.

(a) Development bonds and notes shall be authorized by order of the county commission or ordinance adopted by the governing body of the municipality that created the development or redevelopment district.

(b) The order or ordinance shall state the name of the development or redevelopment project district, the amount of bonds or notes authorized, and the interest rate to be borne by the bonds or notes.

(c) The order or ordinance may prescribe the terms, form, and content of the bonds or notes and such other matters as the local governing body deems useful, or it may include by reference the terms and conditions set forth in a trust indenture or other document securing the development or redevelopment bonds. §7-11B-25. Development bonds or notes - Terms, conditions, etc.

(a) Development or redevelopment bonds or notes may not be issued in an amount exceeding the estimated aggregate project costs, including all costs of issuance of the bonds or notes.

(b) Development or redevelopment bonds and notes shall not be included in the computation of the constitutional debt limitation of the county commission or municipality issuing the bonds or notes.

(c) The bonds or notes shall mature over a period not exceeding twenty-five years from their date of issuance or a period terminating with the date of termination of the development district, whichever period terminates earlier.

(d) The bonds or notes may contain a provision authorizing their redemption, in whole or in part, at stipulated prices, at the option of the local government on any interest payment date and, if so, shall provide the method of selecting the bonds or notes to be redeemed.

(e) The principal and interest on the bonds and notes may be payable at any place set forth in the resolution, trust indenture, or other document governing the bonds.

(f) The bonds or notes shall be issued in registered form.

(g) The bonds or notes may be in any denominations.

(h) Each such bond or note is declared to be a negotiable instrument.

(i) The bonds or notes may be sold at public or private sale.

(j) Insofar as they are consistent with subdivision (a)(1) and subsections (b) and (c) of this section, the procedures for issuance, form, contents, execution, negotiation, and registration of county or municipal bonds and notes are incorporated by reference herein.

(k) The bonds may be refunded or refinanced and refunding bonds may be issued in any principal amount: Provided, That the last maturity of the refunding bonds shall not be later than the last maturity of the bonds being refunded.
§7-11B-26. Development bonds or notes - Security - Marketability.

To increase the security and marketability of development or redevelopment bonds or notes, the county commission or municipality issuing the bonds or notes may:

(1) Create a lien for the benefit of the bondholders upon any public improvements or public works financed by the bonds; or

(2) Make such covenants and do any and all such actions, not inconsistent with the constitution of this state, which may be necessary or convenient or desirable in order to additionally secure the bonds or notes, or which tend to make the bonds or notes more marketable according to the best judgment of governing body issuing the bonds or notes.

§7-11B-27. Development bonds or notes -- Special fund for repayment.

(a) Development and redevelopment bonds and notes are payable out of the special fund created for each development and redevelopment district created under this article.

(b) The governing body issuing the bonds or notes shall irrevocably pledge all or part of the special fund to the payment of the bonds or notes. The special fund, or the designated part thereof, may thereafter be used only for the payment of the bonds or notes and their interest until they have been fully paid.

(c) A holder of the bonds or notes shall have a lien against the special fund for payment of the bonds or notes and interest on them and may bring suit, either at law or in equity, to enforce the lien.
§7-11B-28. Development bonds or notes - Tax exemption.

Bonds and notes issued under this article, together with the interest and income therefrom, shall be exempt from all state income taxes, whether imposed individuals, corporations or other persons.
§7-11B-29. Excess funds.

(a) Moneys received in the special fund of the district in excess of amounts needed to pay project costs may be used by governing body that created the district for other purposes of the district or for any other lawful purpose of the governing body.

(b) Upon termination of the district, all amounts in the special fund of the district may be used by the local governing body for any lawful purpose.
§7-11B-30. Effective date.

Notwithstanding the effective date of this act of the Legislature, this article shall not be operational and shall have no force and effect until after the people ratify an amendment to the constitution of this state authorizing tax increment financing secured by ad valorem property taxes.

NOTE: The purpose of this bill is to allow tax increment financing to be used to finance economic development in the State of West Virginia secured by increased property tax revenue attributable to the economic development project.

Existing article 11B of chapter 7 would be repealed by this bill and a new article 11B would be enacted; therefore, strike-throughs and underscoring have been omitted

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