SB 244 Text

ENGROSSED
COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 244
(By Senators Tomblin, Mr. President, and Sprouse,

By Request of the Executive)
____________
[Originating in the Committee on Finance;
reported February 27, 2002.]
____________

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 phrases; 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.

(a) It is found and declared to be the policy of this state to promote and facilitate the orderly development and economic stability of its communities. County commissions need the ability to raise revenue to finance public improvements that are designed to encourage economic growth and development in geographic areas characterized by high levels of unemployment, stagnate employment, slow income growth, contaminated property, or inadequate infrastructure. The construction of necessary public improvements in accordance with local economic development plans will encourage investing in job-producing private development and expand the public tax base.

(b) It is also found and declared that capital improvements or facilities in any area that 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.

(1) To encourage local levying bodies to cooperate in the allocation of future tax revenues that are used to finance public improvements designed to encourage private development in selected areas; and

(2) To assist local governments that have a competitive disadvantage in their ability to attract business, private investment, or commercial development due to their location; to encourage remediation of contaminated property; to prevent or arrest the decay of selected areas due to the inability of existing financing methods to provide public improvements; and to encourage private investment designed to promote and facilitate the orderly development or redevelopment of selected areas.

§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" includes a municipality, a county or municipal development agency established pursuant to authority granted in section one, article twelve of this chapter a port authority, an airport authority, or any other entity created by this state or an agency or instrumentality of this state that engages in economic development activity.

(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 or redevelopment project area or 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 impair or arrest the sound growth of a municipality, 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 project area or district 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 or redevelopment project area or district as shown upon the landbook and personal property records of the assessor.

(6) "Development office" means the West Virginia development office created in section one, article two, chapter five-b of this code.

(7) "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, for increasing employment, or for 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 or redevelopment 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;

(C) The financial or other assistance in the relocation of persons and organizations displaced as a result of carrying out the development or redevelopment 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 or redevelopment project area or district 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.

(8) "Development or redevelopment project area or district" means an area proposed by one or more agencies as a development or redevelopment project area or district, which may include one or more counties, municipalities or combination thereof, that has been approved by the county commission of each county in which the project area is located.

(9) "Economic activity taxes" means the total additional revenue from taxes that are imposed by the state, a municipality or county, and which are generated by economic activities within a development or redevelopment project area or district over the amount of taxes generated by economic activities within the development or redevelopment project area or district in the calendar year prior to the adoption of the order designating the development or redevelopment project area or district, 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 county commission 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 that 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 development or redevelopment project area or district.

(10) "Economic development area" means any area or portion of an area located within the territorial limits of a municipality or county that does not meet the requirements of subdivisions (3) and (4), subsection (b) of this section, and for which the county commission finds that development or redevelopment will not be solely used for development of commercial businesses that will unfairly compete in the local economy and that development or redevelopment is in the public interest because it will:

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

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

(11) "Incremental value," for any development or redevelopment project area or district, 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.

(12) "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.

(13) "Obligations" or "tax increment obligations" means bonds, loans, debentures, notes, special certificates, or other evidences of indebtedness issued by a county commission pursuant to this article to carry out a development or redevelopment project or to refund outstanding obligations.

(14) "Order" means an order of the county commission adopted in conformity with the provisions of this article and as provided in chapter seven of this code.

(15) "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 date of adoption of a 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 or district until the designation is terminated as provided in this article.

(16) "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.

(17) "Private project" means any project that is subject to ad valorem property taxation in this state or to a payment in lieu of tax agreement that is undertaken by a project developer in accordance with a tax increment financing plan in a development or redevelopment project area or district.

(18) "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.

(19) "Project costs" means expenditures made in preparation of the development or redevelopment 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 or redevelopment project area or district, 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 or redevelopment project area or district for consideration that 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 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, amenities or streets or the rebuilding or expansion of streets, or the construction, alteration, rebuilding, or expansion of which is necessitated by the project plan for a development or redevelopment project area or district, whether or not the construction, alteration, rebuilding, or expansion is within the area or on land contiguous thereto.

(20) "Project developer" means any person who engages in the development of projects in the state.

(21) "Project development or redevelopment area" means a contiguous geographic area within a county, or within two contiguous counties, in which a development or redevelopment project will be undertaken, as defined and created by order of the county commission, or country commissions in the case of an area located in two counties.

(22) "Project plan" means the plan for a development or redevelopment project that is adopted by a county commission in conformity with the requirements of this article.

(23) "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.

(24) "Redevelopment area" means an area designated by a county commission, in respect to which the commission 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 located within the redevelopment area or district, or on land contiguous thereto.

(25) "Redevelopment plan" means the comprehensive program of a county for redevelopment intended by the payment of redevelopment costs to reduce or eliminate those conditions, the existence of which qualified the redevelopment project area or district 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 project area or district. Each redevelopment plan shall conform to the requirements of this article.

(26) "Redevelopment project" means any development project within a redevelopment project area in furtherance of the objectives of the redevelopment plan. A redevelopment project shall include a legal description of the area selected for the redevelopment project.

(27) "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. These 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. The reasonable costs incurred by the commission established pursuant to section fourteen of this article for the administration of the tax increment financing plan 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 a tax increment financing plan that accrues during the estimated period of construction of any redevelopment project for which the obligations are issued and for not more than eighteen months thereafter, and including reasonable reserves related thereto;

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

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

(J) Payments in lieu of taxes.

(28) "Tax increment" means:

(A) The amount of regular levy property taxes attributable to the amount by which the current assessed value of a private project in a development or redevelopment project area or district exceeds the base assessed value, if any, of the private project; or

(B) The amount of regular levy property taxes attributable to the amount by which the current assessed value of real and tangible personal property having a tax situs in a development or redevelopment project area or district exceeds the base assessed value of the property.

(29) "Tax increment financing fund" means a separate fund for a development or redevelopment project or for a development or redevelopment project area or district established by the county commission into which all tax increment revenues and other pledged revenues are deposited and from which projected project costs are paid.

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

(31) "Taxing district" means any political subdivision of this state having the power to levy property taxes.

(32) "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.

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

(34) "This code" means the code of West Virginia, one thousand nine hundred thirty-one, as amended by the Legislature.

(35) "Total ad valorem property tax regular levy rate" means the aggregate levy rate of all levying bodies on all taxable property having a tax situs within a development or redevelopment project area or district in a tax year but does not include excess levies, levies for general obligation bonded indebtedness or any other levies that are not regular levies.

(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 apply to a county commission for adoption of a tax increment financing plan with respect to a development or redevelopment project to be developed in conjunction with a private project of a project developer. The application shall state the projects's economic impact, viability, estimated revenues and potential for job creation. Copies of the application shall be made available to the public in the county clerk's office after the notice of public hearing required by this section is published in the newspaper. Additionally, a copy of the application shall be published on the county's web page, if it has a web page.

(b) Before entering an order approving a tax increment financing plan, the county commission in every county in which the development or redevelopment project area or district is located shall hold a public hearing on the need for tax increment financing in the county.

(1) 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.

(2) The notice shall include the time, place and purpose of the public hearing, describe in sufficient detail the tax increment financing plan, the proposed boundaries of the development or redevelopment project area or district and the proposed tax increment financing obligations to be issued to finance the development or redevelopment project costs.

(3) 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) After the public hearing, the county commission shall finalize the tax increment financing plan and submit it to the director of the development office for his or her review and approval. The director, within sixty days after receipt of the plan, shall approve the plan as submitted, reject the plan, or return the plan to the county commission for further development or review in accordance with instructions of the director of the development office. A tax increment financing plan may not be adopted by the county commission until after it has been approved by the director of the development office.

(d) Upon approval of the tax increment financing plan by the development office, the county commission may adopt the plan by entering an order designating a development or redevelopment project area or district, approving the tax increment financing plan and providing that ad valorem property taxes on real and tangible personal property owned by the project developer that has a tax situs in the development or redevelopment project area or district shall be assessed, collected and allocated 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) For each tax year, the county 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 or redevelopment project area or district.

(2) Ad valorem taxes collected from regular levies upon real and tangible personal property of the project developer that are attributable to the lower of the base assessed value or the current assessed value of real and tangible personal property located in the development project area shall be allocated to the levying bodies in the same manner as applicable to the tax year in which the tax increment financing order is adopted by the county commission.

(3) The tax increment with respect to the private project of the project developer in the development or redevelopment project area or district shall be allocated and paid into a separate special fund created for each development or redevelopment project entitled the "Tax Increment Financing Fund" and shall be used to pay the principal of and interest on tax increment financing obligations issued to finance the costs of the development or redevelopment project. Any levying body having a private project or any portion thereof within its borders shall not receive any portion of the annual tax increment except as otherwise provided in this article.

(4) In no event shall the tax increment include any taxes collected from excess levies, levies for general obligation bonded indebtedness or any levies other than the regular levies provided for in article eight, chapter eleven of this code.

(e) Proceeds from tax increment financing obligations issued under this article may be used only to pay for costs of development and redevelopment projects to foster economic development in development or redevelopment project areas or districts, or land contiguous thereto, including infrastructure and other public improvements prerequisite to private improvements, when such development or redevelopment project or projects would not reasonably be expected to occur without tax increment financing.

(f) There shall be a finding by any county commission that issues tax increment financing obligations that a development or redevelopment project is not reasonably expected to occur without the use of tax increment financing.

(g) A tax increment financing plan that has been approved by a county commission may be amended by following the procedures set forth in this article for adoption of a new tax increment financing plan.

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

(a) Upon adoption of an order approving a tax increment financing plan, the county commission shall transmit to the county assessor, the county sheriff, the director of the development office and the state auditor:

(1) a copy of the tax increment financing order;

(2) a description of all real and tangible personal property of the project developer located within the development project area;

(3) a map indicating the boundaries of the development project area; and

(4) a description of the manner of collecting and allocating property taxes pursuant to this article.

(b) The county commission shall comply with subsection (a) of this section within thirty days after it enters an order approving a tax increment financing plan, or an order amending the plan that changes any of the information transmitted as provided in subsection (a) of this section.

(c) The director of the development office shall forthwith provide a copy of materials he or she receives under subsection (a) of this section to the director of the West Virginia economic development authority established in section five, article fifteen, chapter thirty-one of this code, and to the chairperson of the industrial revenue bond allocation review committee established in section three-a, article two-c, chapter thirteen of this code.

§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:

(1) A statement of the public purpose for the plan;

(2) Measurable, specific and tangible goals for the program;

(3) The estimated development or redevelopment project costs;

(4) The anticipated sources of funds to pay the costs;

(5) A description of the financial obligation of the project developer with regard to the project;

(6) Evidence of any other commitments to finance the project costs;

(7) The anticipated type and term of the sources of funds to pay costs;

(8) The anticipated type and terms of the obligations to be issued;

(9) The most recent equalized assessed valuation of the real and tangible personal property within the development or redevelopment project area or district that is to be subjected to payments in lieu of taxes pursuant to section twenty-one of this article;

(10) An estimate as to the equalized assessed valuation after development or redevelopment, and the general land uses to apply in the development or redevelopment area or district;

(11) The number and types of jobs to be created, not including construction jobs, and the projected average wages and benefits to be paid to the new employees;

(12) The number and types of construction jobs to be filled during the various stages of implementation of the project plan and the projected average wages and benefits to be paid to construction employees; and

(13) An estimate of the public return on the amount of tax increment financing requested, which includes, but is not limited to, all additional tax revenues to be generated by the project plan.

(b) No development or redevelopment plan shall be adopted by a county commission without findings that:

(1) The development or redevelopment project area or district 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 or redeveloped without the adoption of tax increment financing. This finding shall include, but not be limited to, a detailed description of the factors that qualify the development or redevelopment project area or district, or the project pursuant to this subdivision and an affidavit, signed by the developer or developers and submitted with the development or redevelopment plan, attesting that the provisions of this subdivision have been met;

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

(3) The estimated dates, which shall not be more than thirty years from the adoption of the order first approving a development or redevelopment project area or district, for completion of any development or redevelopment project and retirement of obligations incurred to finance development or redevelopment project costs: Provided, That no order approving a development or redevelopment project shall be adopted later than ten years from the date of adoption of the order approving the tax increment financing plan under which the project is authorized and 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 approving the tax increment financing plan;

(4) A plan has been developed for relocation assistance for businesses and residences, if relocation is required as part of the development or redevelopment project plan; and

(5) A cost-benefit analysis showing the economic impact of the plan on each levying body that is at least partially within the boundaries of the development or redevelopment project area or district. This analysis shall show the impact on the economy if the project is not built, and is built pursuant to the development or redevelopment plan under consideration. The cost-benefit analysis shall include a fiscal impact study on every affected levying body, and sufficient information from the developer for the agency, if any proposing the plan, the county commission be asked to approve the project and the development office to evaluate whether the project as proposed is financially feasible.

(c) By the first day of October each year, each agency that proposed a development or redevelopment plan that was approved by a county commission and each county commission that approved a development or redevelopment plan that was not proposed by an agency shall report to the director of the development office the name, address, phone number and primary line of business of any business that relocates to the development or redevelopment project area or 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 of Delegates and the president of the Senate by the first day of February each year.

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

(a) A county commission may:

(1) By order, approve development and redevelopment plans and projects, and designate development and redevelopment project areas or districts based on the application filed with the county commission and pursuant to the public notice, public hearing and other 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 project area or district 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 located within the project area or district, or on land contiguous thereto;

(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 a price the county 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 county commission, or agreement relating to the development of the property shall be made except upon the adoption of an order of the county commission. Each county commission 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. 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 project area or district, clear any area by demolition or removal of existing buildings and structures;

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

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

(7) Within a development or redevelopment project area or district, 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 project area or district;

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

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

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

(12) Disburse surplus funds from the tax increment financing fund to levying bodies as follows:

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

(B) Surplus economic activity taxes shall be distributed to levying bodies in the development or redevelopment project area or district 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 project area or district had tax increment financing not been adopted; and

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

(13) If any member of the governing body of the agency, a member of the county commission, or an employee or consultant of either of those entities involved in the planning and preparation of a development or redevelopment plan, or a development or redevelopment project for a development or redevelopment project area or district, or a proposed development or redevelopment project area or district, owns or controls an interest, direct or indirect, in any property included in any development or redevelopment project area or district, or a proposed development or redevelopment project area or district, he or she shall disclose the same in writing 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 entered upon the minutes books of the county commission. 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, the development or redevelopment project or the development or redevelopment project area or district, shall abstain from voting on any matter pertaining to the development or redevelopment plan, the development or redevelopment project or the development or redevelopment project area or district, 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 project area or district, or a proposed development or redevelopment project area or district, after either: (A) the individual obtains knowledge of the plan or project; or (B) the first published public notice of the plan, project or area, whichever first occurs; and

(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 commission.

(b) A development or redevelopment plan, including any attachments thereto, submitted under this article to a county commission shall be a public record, as defined in section two, article one, chapter twenty-nine-b of this code. A copy of a development or redevelopment plan approved by a county commission shall be filed with the county clerk and copies sent to the county assessor, the county sheriff and to the director of the development office.

§7-11B-8. Projects financed by tax increment financing considered to be public improvements subject to prevailing wage, local labor preference and competitive bid requirements.

(a) Any project acquired, constructed, or financed, in whole or in part, by a county commission under this article shall be considered to be a "public improvement" within the meaning of the provisions of articles one-c and five-a, chapter twenty-one of this code.

(b) The county commission shall, except as provided in subsection (c) of this section, solicit or require solicitation of competitive bids and require the payment of prevailing wage rates as provided in article five-a, chapter twenty-one of this code and compliance with article one-c of said chapter for every project or infrastructure project funded pursuant to this article exceeding twenty-five thousand dollars in total cost.

(c) Following the solicitation of the bids, the construction contract shall be awarded to the lowest qualified responsible bidder, who shall furnish a sufficient performance and payment bond: Provided, That the county commission or other person soliciting the bids may reject all bids and solicit new bids on the project.

(d) This section does not:

(1) Apply to work performed on construction projects not exceeding a total cost of fifty thousand dollars by regular full- time employees of the county commission: Provided, That no more than fifty thousand dollars shall be expended on an individual project in a single location in a twelve-month period;

(2) Prevent students enrolled in vocational educational schools from being used in construction or repair projects when such use is a part of the students' training program;

(3) Apply to emergency repairs to building components and systems: Provided, That the term "emergency repairs" means repairs that, if not made immediately, will seriously impair the use of the building components and systems or cause danger to those persons using the building components and systems; or

(4) Apply to any situation where the county commission comes to an agreement with volunteers, or a volunteer group, by which the governmental body will provide construction or repair materials, architectural, engineering, technical or any other professional services and the volunteers will provide the necessary labor without charge to, or liability upon, the governmental body: Provided, That the total cost of the construction or repair projects does not exceed fifty thousand dollars.

(e) The provisions of subsection (b) of this section apply to privately owned projects or infrastructure projects constructed on lands not owned by the county commission or a government agency or instrumentality when the owner or the owner's agent is a beneficiary of financing under this article for the project.

§7-11B-9. Reports by county commissions, 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, or its designee, shall prepare a report concerning the status of each development and redevelopment plan and each development and redevelopment project in the county, and shall submit a copy of the report to the director of the 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 tax increment financing fund;

(2) The amount and purpose of expenditures from the tax increment financing 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 project area or district 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 project area or district and the state income tax withheld by employers on behalf of existing employees in the development or redevelopment project area or district prior to approval of the development or redevelopment plan;

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

(9) Reports on contracts made incidental 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;

(13) The number and type of jobs projected by the project developer to be created, if any, and the estimated wages and benefits;

(14) The number, type and duration of the jobs created, and the wages and benefits paid;

(15) The amount of disbursements from the tax increment financing fund during the most recently completed fiscal year, in the aggregate and in such detail as the director of the development office may require;

(16) An annual statement showing payments made in lieu of taxes received and expended during the fiscal year;

(17) The status of the development or redevelopment plan and projects therein;

(18) The amount of outstanding bonded indebtedness; and

(19) Any additional information the county commission deems necessary.

(b) Data contained in the report mandated pursuant to the provisions of subsection (a) of this section shall be deemed a public record, as defined in article one, chapter twenty-nine-b of this code. The county's annual report shall be published on its web site, if it has a web site. If the county does not have a web site, the annual report shall be published on the web site of the development office.

(c) After the close of the fiscal year, but on or before the first day of October each year, the county commission shall publish in a newspaper of general circulation in the county an annual statement showing for each tax increment financing plan:

(1) A summary of receipts and disbursements, by major category, of monies in the tax increment financing fund during that fiscal year;

(2) The status of the development or redevelopment plan and each project therein;

(3) The amount of tax increment financing principal outstanding as of the close of the fiscal year; and

(4) Any additional information the county commission deems necessary or appropriate to publish.

(d) Five years after the establishment of a development or redevelopment plan, and every five years thereafter, the county commission 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 county once each week for four successive weeks immediately prior to the hearing.

(e) The director of the 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.

(f) For the purpose of coordinating all tax increment financing projects using tax increments, the director of the 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.

(g) The director of the development office shall provide information and technical assistance, as requested by a county commission on the requirements of this article. The 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-10. Issuance of obligations for development or redevelopment project costs.

(a) A county commission may issue tax increment financing obligations for the purpose of financing the cost of acquisition and construction of one or more development or redevelopment projects in a development or redevelopment project area or district within the county, which project will be sold, leased with an option by the lessee to purchase, leased or otherwise disposed of to a project developer. The tax increment financing obligations shall be issued and the payment of the obligations 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, sections fourteen, fifteen, seventeen, nineteen and twenty, article two-c, chapter thirteen of this code:
Provided, That the principal and interest on the tax increment financing obligations shall be payable out of the tax increment financing fund attributable to the related private project, or the development or redevelopment project area or district, as the case may be: Provided, however, That in the event moneys on deposit in that tax increment financing fund are not sufficient to fully pay the debt service on the bonds or notes, then the 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 or redevelopment project for which the tax increment financing obligations are issued, or any other revenue derived from the project.

(b) Any revenues in the tax increment financing fund that are not: (1) Used for the payment of the principal of or interest on tax increment financing obligations issued; (2) used for the payment of the cost of extraordinary public services required by the development or redevelopment plan; or (3) held in reserve, the amount of reserve to be determined by the county commission after consultation with its investment bankers, shall be deemed "surplus funds" and at the end of each fiscal year shall be paid into the general funds in the same proportion the regular levies on the base value of the developer's property or the property in the development or redevelopment project area or district were distributed to the levying bodies for that fiscal year.
§7-11B-11. 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 or district.

(b) 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.

(c) Upon dissolution of the tax increment financing fund, real and tangible personal property shall be assessed and taxes collected and allocated in the same manner as other property of the same class in the county, depending upon whether the property is located within or outside the corporate limits of a municipality.
§7-11B-12. Powers generally.

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

(1) Create development and redevelopment areas or districts and to define the boundaries of those areas or 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 tax increment financing obligations and pledge tax increments and other revenues for repayment of the obligations;

(4) Deposit moneys into the tax increment financing fund for any development or redevelopment project area or district, or project;

(5) Enter into any contracts or agreements, including agreements with bondholders, determined by the county commission 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) Exercise the right of eminent domain to condemn property for the purposes of implementing the project plan. 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 those persons, businesses, or organizations that are displaced as a result of carrying out the development or redevelopment project;

(9) Clear and improve property acquired by the county commission 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 the county commission is otherwise authorized to undertake, to be laid out, constructed, or furnished in connection with the development or redevelopment project. When the public improvement is to be located in whole or in part within the corporate limits of a municipality, the county commission shall consult with the mayor and the governing body of the municipality regarding the public improvement and shall pay for the cost of the public improvement from the tax increment financing fund;

(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: Provided, That when the public way or sidewalk is located within a municipality, the governing body of the municipality shall consent to the same and if the public way is a state road, the consent of the commissioner of highways shall be necessary;

(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 project area or 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 to make decisions and handle the affairs of development and redevelopment project areas or districts created by the county commission 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 project area or district created by a county commission under this article;

(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 project area or district created by a county commission under this article;

(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) Expend 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. Powers supplemental.

The powers conferred by this article are in addition and supplemental to the powers conferred upon county commissions by the Legislature relating to the issuance of industrial and commercial development bonds and refunding bonds.

§7-11B-14. Creation of a development or redevelopment project area or district.

(a) The county commission, upon its own initiative or upon application of an agency of a developer, may propose creation of a development or redevelopment project area or district and designate the boundaries of the area or district: Provided, That an area or district may not include non-contiguous land.

(b) The county commission shall then 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 project area or district and its proposed boundaries.

(1) Notice of the 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.

(3) 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 or redevelopment area or district.

(4) 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) After the public hearing, the county commission shall finalize the tax increment financing plan and the boundaries of the development or redevelopment project area or district and submit it to the director of the development office for his or her review and approval. The director, within sixty days after receipt of the plan, shall approve the plan as submitted, reject the plan, or return the plan to the county commission for further development or review in accordance with instructions of the director of the development office. A tax increment financing plan may not be adopted by the county commission until after it has been approved by the director of the development office.

(d) Upon approval of the tax increment financing plan by the development office, the county commission may enter an order that:

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

(2) Creates the development or redevelopment project area or district as of a date provided in the order;

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

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

(B) Each subsequently created area or district in the county shall be assigned the next consecutive number;

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

(5) Approves the tax increment financing plan;

(6) Establishes a tax increment financing fund as a separate fund into which all tax increment revenues and other revenues designated by the county commission for the benefit of the development or redevelopment project area or district shall be deposited, and from which all project costs shall be paid, which may be assigned to and held by a trustee for the benefit of bondholders if tax increment financing obligations are issued by the county commission; and

(7) Provides that ad valorem property taxes on real and tangible personal property having a tax situs in the development or redevelopment project area or district shall be assessed, collected and allocated 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:

(A) For each tax year, the county 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 having a tax situs in the development or redevelopment project area or district;

(B) Ad valorem taxes collected from regular levies upon real and tangible personal property having a tax situs in the area or district that are attributable to the lower of the base assessed value or the current assessed value of real and tangible personal property located in the development project area shall be allocated to the levying bodies in the same manner as applicable to the tax year in which the tax increment financing order is adopted by the county commission;

(C) The tax increment with respect to real and tangible personal property in the development or redevelopment project area or district shall be allocated and paid into the tax increment financing fund and shall be used to pay the principal of and interest on tax increment financing obligations issued to finance the costs of the development or redevelopment projects in the development or redevelopment project area or district. Any levying body having a development or redevelopment project area or district within its taxing jurisdiction shall not receive any portion of the annual tax increment except as otherwise provided in this article; and

(D) In no event shall the tax increment include any taxes collected from excess levies, levies for general obligation bonded indebtedness or any levies other than the regular levies provided for in article eight, chapter eleven of this code.

(e) Proceeds from tax increment financing obligations issued under this article may only be used to pay for costs of development and redevelopment projects to foster economic development in the development or redevelopment project area or district, or land contiguous thereto, including infrastructure and other public improvements prerequisite to private improvements, when such development or redevelopment project or projects would not reasonably be expected to occur without tax increment financing.

(f) Notwithstanding the preceding subsection of this section, a county commission may not enter an order approving a tax increment financing plan unless the county commission expressly finds and states in the order that the primary development or redevelopment project is not reasonably expected to occur without the use of tax increment financing.

(g) No county commission shall establish a development or redevelopment project area or district, any portion of which is within the boundaries of a municipality without the formal consent of the governing body of the municipality.

(h) A tax increment financing plan that has been approved by a county commission may be amended by following the procedures set forth in this article for adoption of a new tax increment financing plan.

(i) The county commission may modify the boundaries of the development or redevelopment project area or district from time to time by entry of an order modifying the tax increment financing plan. Before a county commission may enter such an order, the county commission shall give the public notice, hold a public hearing and obtain the approval of the director of the development office, following the procedures for establishing a new development or redevelopment project area or district. In the event any tax increment financing obligations are outstanding with respect to the development or redevelopment project area or district, any change in the boundaries shall not reduce the amount of tax increment available to secure the outstanding tax increment financing.
§7-11B-15. Project plan - Approval.

(a) Upon the creation of the development or redevelopment area or district, the county commission creating the area or district shall cause the preparation of a project plan for each development or redevelopment area or district, and the project plan shall be adopted by order of the county commission after it is approved by the director of the development office. 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 area or district or, to the extent provided, on land outside but contiguous to the area or 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 obligations, 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 assessed value of real and tangible personal property having a tax situs in a development or redevelopment project area or district;

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

(7) A map showing existing uses and conditions of real property in the development or redevelopment project area or district;

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

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

(10) Appropriate cross-references to any master plan, map, building codes, and municipal 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, businesses or organizations 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 tax increment financing fund of the development or redevelopment project area or district, and provide for the distribution of the remaining portion of the tax increment to the levying bodies in whose jurisdiction the area or district lies.

(e) The county commission shall hold a public hearing at which interested parties shall be afforded a reasonable opportunity to express their views on the proposed project plan being considered by the county commission.

(1) Notice of the hearing shall be published in a newspaper of general circulation in the county or the municipality, if the development or redevelopment project is located in a municipality, at least fifteen days prior to the hearing.

(2) 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 area or district.

(f) Approval by the county commission of a tax increment financing plan must be within one year after the date of the county assessor's certification required by subdivision (5), subsection (b) of this section. The approval shall be by order of the county commission which shall contain a finding that the plan is economically feasible.
§7-11B-16. Project plan - Amendment.

(a) The county commission may, by order, adopt an amendment to a project plan.

(b) Adoption of an amendment to a project plan shall be preceded by a public hearing held by the county commission at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment.

(1) Notice of the hearing shall be published in a newspaper of general circulation in the county or municipality in which the project is to be located once a week for three consecutive weeks prior to the date of the public hearing.

(2) 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 development or redevelopment project area or district.

(3) Copies of the proposed plan amendments shall be made available to the public at the county clerk's office at least fifteen days prior to the hearing.

(c) One or more existing development or redevelopment areas or districts may be combined pursuant to lawfully adopted amendments to the original plans for each area or district: Provided, That the county commission finds that the combination of the areas or districts will not impair the security for any tax increment financing obligations previously issued pursuant to this article.

§7-11B-17. Termination of development or redevelopment project area or district.

(a) No development or redevelopment project area or district may be in existence for a period longer than thirty years and no tax increment financing obligations may have a final maturity date later than the termination date of the area or district.

(b) The county commission creating the development or redevelopment area or district may set a shorter period for the existence of the area or district. In this event, no tax increment financing obligations may have a final maturity date later than the termination date of the area or district.

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

(d) The county commission shall adopt, upon the expiration of the time periods set forth in this section, an order terminating the development or redevelopment area or district: Provided, That no area or district shall be terminated so long as bonds with respect to the area or district remain outstanding.

§7-11B-18. Costs of formation of development or redevelopment project area or district.

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

(b) If the county commission elects not to incur those costs, they shall be made project costs of the area or 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 or redevelopment project.
§7-11B-19. Overlapping districts.

The boundaries of any development and redevelopment areas or districts shall not overlap with any other development or redevelopment project area or district.
§7-11B-20. Valuation of real property.

(a) Upon and after the effective date of the creation of a development or redevelopment project area or district, the county assessor of the county in which the area or district is located shall transmit to the county clerk a certified statement of the base value, total ad valorem regular levy rate, total general obligation bond debt service ad valorem rate, and total excess levy rate applicable for the development or redevelopment area or district.

(1) The assessor shall undertake, upon request of the county commission creating the development or redevelopment project area or district, an investigation, examination, and inspection of the taxable real and tangible personal property having a tax situs in the area or 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.

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

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

(c) The assessor shall also determine the tax increment by applying the applicable ad valorem regular levy rates to the incremental value.

(d) The notice shall also explain that the entire amount of the tax increment allocable to property within the development or redevelopment project area or district will be paid to the tax increment financing fund of the development or redevelopment project area or district until it is terminated.

(e) The assessor shall identify upon the landbooks those parcels of property that are within each existing development or redevelopment project area or district, specifying on landbooks the name of each area or district.
§7-11B-21. Division of ad valorem real property tax revenue.

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

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

(A) The amount of ad valorem property tax revenue that should be generated by multiplying the assessed value of the property for the then current tax year by the aggregate of applicable levy rates for the tax year;

(B) The amount of ad valorem tax revenue that should be generated by multiplying the base assessed value of the property by the applicable regular ad valorem levy rates for the tax year;

(C) The amount of ad valorem tax revenue that should be generated by multiplying the assessed value of the property for the current tax year by the applicable levy rates for general obligation bond debt service for the tax year;

(D) The amount of ad valorem property tax revenue that should be generated by multiplying the assessed value of the property for the current tax year by the applicable excess levy rates for the tax year; and

(E) The amount of ad valorem property tax revenue that should be generated by multiplying the incremental value by the applicable regular levy rates for the tax year.

(2) The sheriff shall determine from the calculations set forth in subdivision (a)(1) of this section the percentage share of total ad valorem revenue for each levying body 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 the levying bodies, 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 levying bodies 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 general obligation bonds outstanding;

(C) Applying the percentage share determined according to paragraph (D), subdivision (1), subsection (a) of this section to the revenues received and distributing such share to the levying bodies entitled to such distribution by reason of having excess levies in effect for the tax year; and

(D) Applying the percentage share determined according to subdivision (a)(1)(E) of this section to the revenues received and distributing such share to the tax increment financing fund of the development or redevelopment project area or district.

(b) In each year for which there is a positive tax increment, the county sheriff shall remit to the tax increment financing fund of the development or redevelopment project area or district that portion of the ad valorem property taxes collected that consists of the tax increment.

(c) Any additional moneys appropriated to the development or redevelopment project area or district pursuant to an appropriation by the county commission that created the district and any additional moneys dedicated to the fund from other sources shall be deposited to the tax increment financing fund for the development or redevelopment project area or district by the sheriff.

(d) Any funds deposited into the tax increment financing fund of the development or redevelopment project area or district may be used to pay project costs, principal and interest on bonds, and the cost of any other improvements in the development or redevelopment project area or district deemed proper by the county commission.

(e) Unless otherwise directed pursuant to any agreement with bondholders, moneys in the tax increment financing fund may be temporarily invested in the same manner as other funds of the county commission.

(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 area or district, the sheriff shall account for that fact in distributing the ad valorem property tax revenues.
§7-11B-22. Payments in lieu of taxes and other revenues.

(a) The county commission that created the development or redevelopment project area or district shall deposit in the tax increment financing fund of the development or redevelopment project area or district all payments in lieu of taxes on tax exempt property located within the development or redevelopment project area or district.

(b) As a condition of receiving tax increment financing, the lessee of property that is exempt from property taxes because it is owned by this state, a political subdivision of this state or an agency or instrumentality thereof, the lessee shall execute a payment in lieu of tax agreement that shall remain in effect until the tax increment financing obligations are paid, during which period of time the lessee agrees to pay to the county sheriff an amount equal to the amount of ad valorem property taxes that would have been levied against the assessed value of the property were it owned by the lessee rather than a tax exempt entity. The portion of the payment in lieu of taxes attributable to the incremental value shall be deposited in the tax increment financing fund. The remaining portion of the in lieu payment shall be distributed among the levying bodies as follows:

(1) The portion of the in lieu tax payment attributable to the base value of the property shall be distributed to the levying bodies in the same manner as taxes attributable to the base value of other property in the area or district are distributed; and

(2) The portions of the in lieu tax payment attributable to levies for bonded indebtedness and excess levies shall be distributed in the same manner as those levies on other property in the area or district are distributed.

(c) Other revenues to be derived from the development or redevelopment project area or district may also be deposited in the tax increment financing fund at the direction of the county commission.
§7-11B-23. Tax increment obligations generally.

(a) Tax increment obligations may be issued by a county commission to pay project costs for projects included in the tax increment financing plan approved by the development office and adopted by the county commission that are located in a development or redevelopment project area or district, or on land not in the district but land that is contiguous to the area or district.

(1) Tax increment financing obligations 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 tax increment financing obligations may also be used to reimburse the costs of any interim financing entered on behalf of projects in the development or redevelopment project area or district.

(b) Tax increment financing obligations issued under this article shall be payable solely from the tax increment or other revenues deposited to the credit of the tax increment financing fund of the development or redevelopment project area or district.

(c) Under no event shall tax increment financing obligations be secured or be deemed to be secured by the full faith and credit of the county commission issuing the tax increment financing obligations.

(d) Every tax increment financing bond or note issued under this article shall recite on its face that it is a special obligation bond or note payable solely from the tax increment and other revenues pledged for its repayment.

§7-11B-24. Tax increment financing obligations -- 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 creating the development or redevelopment project area or district may issue tax increment financing obligations payable out of positive tax increments and other revenues deposited to the tax increment financing fund of the development or redevelopment project area or district.

§7-11B-25. Tax increment financing obligations -- Authorizing resolution.

(a) Issuance of tax increment financing obligations shall be authorized by order of the county commission that created the development or redevelopment project area or district.

(b) The order shall state the name of the development or redevelopment project area or district, the amount of tax increment financing obligations authorized, the type of obligation authorized, and the interest rate to be borne by the bonds or notes.

(c) The order may prescribe the terms, form, and content of the bonds or notes and other particulars or information the county commission 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 project bonds or notes.

§7-11B-26. Tax increment financing obligations - Terms, conditions.

(a) Tax increment financing obligations may not be issued in an amount exceeding the estimated aggregate project costs, including all costs of issuance of the tax increment financing obligations.

(b) Tax increment financing obligations shall not be included in the computation of the constitutional debt limitation of the county commission issuing the tax increment financing obligations.

(c) Tax increment financing obligations shall mature over a period not exceeding thirty years from the date of entry of the county commission's order creating the development or redevelopment project area or district and approving the tax increment financing plan, or a period terminating with the date of termination of the development or redevelopment project area or district, whichever period terminates earlier.

(d) Tax increment financing obligations may contain a provision authorizing their redemption, in whole or in part, at stipulated prices, at the option of the county commission on any interest payment date and, if so, shall provide the method of selecting the tax increment financing obligations to be redeemed.

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

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

(g) Bonds or notes may be issued in any denomination.

(h) Each tax increment financing obligation issued under this article is declared to be a negotiable instrument.

(i) The tax increment financing obligations 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 industrial or commercial revenue bonds set forth in article two-c, chapter thirteen of this code 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-27. Tax increment financing obligations - Security - marketability.

To increase the security and marketability of tax increment financing bonds or notes, the county commission 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, 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 the county commission issuing the bonds or notes.

§7-11B-28. Tax increment financing obligations -- Special fund for repayment.

(a) Tax increment financing obligations issued by a county commission are payable out of the tax increment financing fund created for each development and redevelopment project area or district created under this article.

(b) The county commission issuing the tax increment financing obligations shall irrevocably pledge all or part of the tax increment financing fund to the payment of the obligations. The tax increment financing fund, or the designated part thereof, may thereafter be used only for the payment of the obligations and their interest until they have been fully paid.

(c) A holder of the tax increment financing obligations shall have a lien against the tax increment financing fund for payment of the obligations and interest on them and may bring suit to enforce the lien.
§7-11B-29. Tax increment financing obligations - Tax exemption.

Tax increment financing obligations issued under this article, together with the interest and income therefrom, shall be exempt from all state income taxes, whether imposed on individuals, corporations or other persons, from business franchise taxes and from ad valorem property taxes.
§7-11B-30. Excess funds.

(a) Moneys received in the tax increment financing fund of the development or redevelopment project area or district in excess of amounts needed to pay project costs may be used by the county commission that created the area or district for other purposes of the area or district.

(b) Upon termination of the area or district, all amounts in the tax increment financing fund of the area or district shall be paid over to the levying bodies in the same proportion that ad valorem property taxes on the base value was paid over to those levying bodies for the tax year in which the area or district is terminated.

§7-11B-31. Computation of local share for support of public schools when tax increment financing is used.

For purposes of any computation made in accordance with the provisions of section eleven, article nine-a, chapter eighteen of this code, for a county in which there is tax increment financing in effect pursuant to this article, the assessed value shall be the current assessed value minus the amount of assessed value used to determine the tax increment amount, minus any other adjustments allowed by section eleven of said article nine-a.
§7-11B-32. Effective date.

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

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