H. B. 4624
(By Delegates Michael, Doyle, H. White, Campbell,
Browning, Proudfoot and Ashley)
(Originating in the Committee on Finance)
[February 25, 2004]
A BILL to amend and reenact §7-11B-2, §7-11B-3, §7-11B-4, §7-11B-6,
§7-11B-7, §7-11B-8, §7-11B-9, §7-11B-10, §7-11B-11, §7-11B-12,
§7-11B-13, §7-11B-15, §7-11B-16, §7-11B-17, §7-11B-18, §7-11B-
19, §7-11B-20, §7-11B-21, §7-11B-22, §7-11B-23, §7-11B-24 and
§7-11B-26 of the code of West Virginia, 1931, as amended, all
relating generally to tax increment financing; defining
certain terms and phrases; providing additional requirements
for development or redevelopment project plans; providing for
Class II legal advertisements for public hearings; providing
mechanism for more than development or redevelopment project
plan per development or redevelopment district; revising
conflict of interest provisions; providing for issuance of
parity and subordinate bonds; making technical corrections.
Be it enacted by the Legislature of West Virginia:
That §7-11B-2, §7-11B-3, §7-11B-4, §7-11B-6, §7-11B-7, §7-11B-
8, §7-11B-9, §7-11B-10, §7-11B-11, §7-11B-12, §7-11B-13, §7-11B-15, §7-11B-16, §7-11B-17, §7-11B-18, §7-11B-19, §7-11B-20, §7-11B-21,
§7-11B-22, §7-11B-23, §7-11B-24 and §7-11B-26 of the code of West
Virginia, 1931, as amended, be amended and reenacted, all to read
as follows:
ARTICLE 11B. 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 capital improvements
and
facilities that are designed to encourage economic growth and
development in geographic areas characterized by high levels of
unemployment,
stagnate stagnant employment, slow income growth,
contaminated property or inadequate infrastructure. The
construction of necessary
public capital 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.
(c) It is the purpose of this article:
(1) To encourage local levying bodies to cooperate in the
allocation of future tax revenues that are used to finance
public
capital improvements
and facilities 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 capital improvements
and
facilities; 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 or redevelopment project area or district 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 the taxable assessed value of all real and tangible
personal property having a tax situs within a development or
redevelopment
project area or district as shown upon the landbooks
and personal property books of the assessor on the first day of
July
of the calendar year preceding the
formation of effective date
of the order or ordinance creating and establishing the development
or redevelopment
project area or district.
(3) "Blighted area" means an area
within the boundaries of a
development or redevelopment district located within the
territorial limits of a municipality or county in which the
structures, buildings or improvements, by reason of dilapidation,
deterioration, age or obsolescence, inadequate provision for
access, ventilation, light, air, sanitation, or open spaces, high
density of population and overcrowding or the existence of
conditions which endanger life or property, are detrimental to the
public health, safety, morals or welfare. "Blighted area" includes
any area which, by reason of the presence of a substantial number
of substandard, slum, deteriorated or deteriorating structures,
predominance of defective or inadequate street layout, faulty lot
layout in relation to size, adequacy, accessibility, or usefulness,
unsanitary or unsafe conditions, deterioration of site or other
improvements, diversity of ownership, defective or unusual conditions of title, or the existence of conditions which endanger
life or property by fire and other causes, or any combination of
such factors, substantially impairs or arrests the sound growth of
a 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) "County commission" means the governing body of a county
of this state and, for purposes of this article only, includes the
governing body of a Class I or II municipality in this state.
(6) "Current assessed value" means
:
(A) The annual taxable assessed value of all 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 the annual taxable assessed value of
all 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.
(7) "Development office" means the West Virginia development
office created in section one, article two, chapter five-b of this
code.
(8) "Development project" or "redevelopment project" means a
project undertaken
by a county commission or the governing body of
a municipality in a development or redevelopment
project area or
district 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 or
redevelopment 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 district 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.
(9) "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, one or more municipalities or any combination
thereof, that has been approved by the county commission of each
county in which the project area is located if the project is
located outside the corporate limits of a municipality, or by the
governing body of a municipality if the project area is located
within a municipality, or by both the county commission and the
governing body of the municipality when the development or
redevelopment
project area or district is located both within and
without a municipality.
(10) "Economic development area" means any area or portion of
an area
within the boundaries of a development or redevelopment
district located within the territorial limits of a municipality or
county that does not meet the requirements of subdivisions (3) and
(4) of this subsection 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
(C) Result in preservation or enhancement of the tax base of
the county or municipality.
(11) "Governing body of a municipality" means the city council
of a Class I or Class II municipality in this state.
(12) "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.
(13) "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.
(14) "Local levying body" means the county board of education,
and the county commission
, and includes the governing
bodies body
of a municipality when the development or redevelopment
project
area or district is located, in whole or in part, within the
boundaries of the municipality.
(15) "Obligations" or "tax increment financing obligations"
means bonds, loans, debentures, notes, special certificates, or
other evidences of indebtedness issued by a county commission or
municipality pursuant to this article to carry out a development or
redevelopment project or to refund outstanding obligations under
this article.
(16) "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.
(17) "Ordinance" means a law adopted by the governing body of a municipality in conformity with the provisions of this article
and as provided in chapter eight of this code.
(18) "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
assessed value of all taxable real and tangible personal property
in the area selected for the development or redevelopment project
exceeds the total base assessed value of all taxable real and
tangible personal property in the development or redevelopment
project area or district until the designation is terminated as
provided in this article.
(19) "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.
(20) "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.
(21) "Project" means any
capital improvement, facility
, or
both, as specifically set forth and defined in the project plan,
requiring an investment of capital, including
, but not limited to,
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.
(22) "Project area" means an area within the boundaries of a
development or redevelopment district in which a development or
redevelopment project is undertaken, as specifically set forth and
defined in the project plan.
(22) (23) "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 capital
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,
capital
improvements and facilities, 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 an
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 or
municipal employees in connection with the implementation of a
project plan;
(F) Relocation costs, including, but not limited to, those
relocation payments made following condemnation and job training
and retraining;
(G) Organizational costs, including, but not limited to, the
costs of conducting environmental impact and other studies, and the
costs of informing the public with respect to the creation of a
project development
area or redevelopment district and the
implementation of project plans;
(H) 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 development or redevelopment
project areas or districts or the implementation of project plans;
and
(I) 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.
(23) (24) "Project developer" means any person who engages in
the development of projects in the state.
(24) "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 county commissions in the case of an area
located in two counties.
(25) "Project plan" means the plan for a development or
redevelopment project that is adopted by a county commission or
governing body of a municipality in conformity with the
requirements of this article and chapter seven or eight of this
code.
(26) "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.
(27) "Redevelopment area" means an area designated by a county
commission, or the governing body of a municipality, in respect to
which the commission or governing body 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 development or
redevelopment
project area or district, or land contiguous thereto.
(28) "Redevelopment plan" means the comprehensive program
under this article of a county or municipality 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.
(29) "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 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.
(30) "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, or governing body of the municipality,
that issues tax
increment financing obligations into which all tax increment
revenues and other pledged revenues are deposited and from which
projected project costs, debt service and other expenditures
authorized by this article are paid.
(31) "This code" means the code of West Virginia, one thousand
nine hundred thirty-one, as amended by the Legislature.
(32) "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.
§7-11B-4. Powers generally.
In addition to any other powers conferred by law, a county commission or governing body of a Class I or II municipality may
exercise any powers necessary and convenient to carry out the
purpose of this article, including the power to:
(1) Create development and redevelopment 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) Establish tax increment financing funds for each
development or redevelopment district;
(3) (4) Issue tax increment financing obligations and pledge
tax increments and other revenues for repayment of the obligations;
(4) (5) Deposit moneys into the tax increment financing fund
for any development or redevelopment
project area or district
, or
project;
(5) (6) Enter into any contracts or agreements, including
, but
not limited to, agreements with
project developers, consultants,
professionals, financing institutions, trustees, bondholders,
determined by the county commission to be necessary or convenient
to implement the provisions and effectuate the purposes of project
plans;
(6) (7) 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) (8) 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) (9) Make relocation payments to those persons, businesses,
or organizations that are displaced as a result of carrying out the
development or redevelopment project;
(9) (10) 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) (11) 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 of the county commission 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;
(
1112) 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
area:
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) (13) 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
area for the particular use of the
development or redevelopment
project area or district, or those
dwelling or working in it;
(13) (14) Construct any capital improvements of a public
nature;
(14) (15) Construct capital improvements to be leased or sold
to private entities in connection with the goals of the development
or redevelopment project;
(16) Cause capital improvements owned by one or more private
entities to be constructed within the development or redevelopment
district;
(15) (17) 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) (18) Adopt orders, 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 or
governing body of a municipality under this article;
(17) (19) 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 or governing body of a municipality
under this article;
(18) (20) Sell, mortgage, lease, transfer, or dispose of any
property or interest therein,
by contract or auction, acquired by
it pursuant to the project plan for development, redevelopment or
rehabilitation in accordance with the project plan;
(19) (21) Expend project revenues as provided in this article;
and
(20) (22) Do all things necessary or convenient to carry out
the powers granted in this article.
§7-11B-6. Application for development or redevelopment plan.
(a) An agency or a project developer may apply to a county
commission or the governing body of a municipality for adoption of
a
development or redevelopment plan with respect to a development
or redevelopment project
plan to be developed in conjunction with
a private project of a project developer. The application shall
state the project's economic impact, viability, estimated revenues
and potential for job creation and such other information as the county commission or the governing body of the municipality may
require.
(b) Copies of the application shall be made available to the
public in the county clerk's office, or the municipal recorder's
office when the application is filed with the governing body of a
municipality.
§7-11B-7. Creation of a development or redevelopment project area
or district.
(a) County commissions and the governing bodies of Class I and
II municipalities, upon their own initiative or upon application of
an agency or 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 a district may
not include noncontiguous land.
(b) The county commission or municipality proposing creation
of a development or redevelopment
area or district 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 II 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
, when a development or
redevelopment project plan is being proposed, the proposed tax
increment financing obligations to be issued to finance the
development or redevelopment project costs.
(3) Prior to the first day of publication, a copy of the
notice shall be sent by first-class mail to the chief executive
officer of all other local levying bodies having the power to levy
taxes on
real and tangible personal property located within the
proposed development or redevelopment
project area or district.
(4) All parties who appear at the hearing shall be afforded an
opportunity to express their views on the proposal to
create the
development or redevelopment district and, if applicable, the
development or redevelopment project plan and proposed tax
increment financing obligations undertake and finance the project.
(c) After the public hearing, the county commission, or the
governing body of the municipality, shall finalize the
development
or redevelopment project plan and the boundaries of the development
or redevelopment
project area or district
, the development or
redevelopment project plan, or both and submit
it the same to the
director of the development office for his or her review and
approval. The director, within sixty days after receipt of the
plan application, shall approve the
plan application as submitted,
reject the
plan application, or return the
plan application to the
county commission or governing body of the municipality for further
development or review in accordance with instructions of the director of the development office. A
plan development or
redevelopment district or development or redevelopment project plan
may not be adopted by the county commission or the governing body
of a municipality until after it has been approved by the executive
director of the development office.
(d) Upon approval of the development or redevelopment
plan
district or development or redevelopment project plan by the
development office, the county commission may enter an order, and
the governing body of the municipality proposing the
plan district
or development or redevelopment project plan may adopt an
ordinance, 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 or ordinance;
(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 or municipality authorizing the
area or
district, and shall be assigned a number, beginning with the number
one.
(B) Each subsequently created
area or district in the county
or municipality 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 development or redevelopment
project plan
, if
applicable;
(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, or governing body of the
municipality, 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, or the governing
body of the municipality; 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
, commencing upon the date of
adoption of such order or ordinance and continuing for so long as
any tax increment financing obligations
are 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 development or redevelopment project plan is
adopted by order of the county commission or by ordinance adopted
by the governing body of the municipality;
(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 subsection (e) of this section, a county
commission may not enter an order approving a development or
redevelopment project 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) Notwithstanding subsection (e) of this section, the
governing body of a municipality may not adopt an ordinance
approving a development or redevelopment project plan unless the
governing body expressly finds and states in the ordinance that the
primary development or redevelopment project is not reasonably
expected to occur without the use of tax increment financing.
(h) No county commission shall establish a development or
redevelopment
project area or district any portion of which is
within the boundaries of a
Class I, Class II, Class III or Class IV
municipality without the formal consent of the governing body of
the such municipality.
(i) A tax increment financing plan that has been approved by
a county commission or the governing body of a municipality may be
amended by following the procedures set forth in this article for
adoption of a new development or redevelopment project plan.
(j) 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 order creating the
development or redevelopment
project area or district.
(k) The governing body of a municipality may modify the
boundaries of the development or redevelopment
project area or
district from time to time by amending the ordinance establishing
the boundaries of the
area or district.
(l) Before a county commission or the governing body of a
municipality may
enter amend such an order or
amend the ordinance,
the county commission or municipality 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 obligations.
§7-11B-8. Project plan - Approval.
(a) Upon the creation of the development or redevelopment
area or district, the county commission or municipality 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, or
ordinance adopted by the governing body of the municipality, after
it is approved by the executive 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 other improvements within the
area or
district and on land outside but contiguous to the
area or
district;
(2) 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.
(3) An economic feasibility study;
(4) A detailed list of estimated project costs;
(5) 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;
(6) 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
:
Provided, That if such certification is made during the months of
January or February of each year, the county assessor may certify
an estimated base assessed value of real and tangible personal
property having a tax situs in a development or redevelopment
district: Provided, however, That prior to issuance of tax
increment obligations, the county assessor shall certify a final
base assessed value for the estimated base assessed value permitted
by this section;
(7) 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;
(8) A map showing existing uses and conditions of real
property in the development or redevelopment
project area or
district;
(9) A map of proposed improvements and uses in the
area or
district;
(10) Proposed changes of zoning ordinances, if any;
(11) Appropriate cross-references to any master plan, map,
building codes, and municipal ordinances or county commission orders affected by the project plan;
(12) A list of estimated nonproject costs;
and
(13) A statement of the proposed method for the relocation of
any persons, businesses or organizations to be displaced
.;
(14) A certificate from the executive director of the workers'
compensation commission, the commissioner of the bureau of
employment programs and the state tax commissioner, that the
project developer is in good standing with the workers'
compensation commission, the bureau of employment programs and the
state tax division; and
(15) A certificate from the sheriff of the county or counties
in which the development or redevelopment district is located, that
the project developer is not delinquent on payment of any real and
personal property taxes in such county.
(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 tax
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 or governing body of the
municipality that established the tax increment financing fund
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 or
the governing body of the municipality.
(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 as a Class II legal
advertisement in accordance with section two, article three,
chapter fifty-nine of this code.
(2) Prior to this publication, a copy of the notice shall be
sent by first-class mail to the chief executive officer of all
other 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
or the governing body of
a municipality of
a an initial development or redevelopment
project plan must be within one year after the date of the county
assessor's certification required by subdivision
(5) (6),
subsection (b) of this section
: Provided, That additional
development or redevelopment project plans may be approved by the
county commission or the governing body of a municipality in
subsequent years, so long as the development or redevelopment
district continues to exist. The approval shall be by order of the
county commission or ordinance of the municipality, which shall
contain a finding that the plan is economically feasible.
(g) The notice, public hearing, development office approval
and order or ordinance provided for in this section may be
accomplished simultaneously with the proper consideration and
approval of a development or redevelopment district pursuant to the
provisions of section seven of this article.
§7-11B-9. Project plan - amendment.
(a) The county commission may by order, or the governing body
of a municipality by ordinance, 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, or
governing body of the municipality, 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 as a Class II legal
advertisement in accordance with section two, article three,
chapter fifty-nine of this code.
(2) Prior to publication, a copy of the notice shall be sent
by first-class mail to the chief executive officer of all other
local 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, or municipal
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, or governing body of the municipality, 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-10. 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 or governing body of the
municipality 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
project area or district created
by the county commission:
Provided, That no
area or district shall
be terminated so long as bonds with respect to the
area or district
remain outstanding.
(e) The governing body of the county commission shall repeal,
upon the expiration of the time periods set forth in this section,
the ordinance establishing the development or redevelopment
project
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-11. Costs of formation of development or redevelopment
project area or district.
(a) The county commission, or the governing body of a
municipality, may pay, but shall have no obligation to pay, the costs of preparing the project plan or forming the development or
redevelopment
project area or district created by them.
(b) If the county commission, or the governing body of the
municipality, 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-12. Overlapping districts prohibited.
The boundaries of any development and redevelopment
project
areas or districts shall not overlap with any other development or
redevelopment
project area or district.
§7-11B-13. Conflicts of interest; required disclosures and
abstention.
(a) If any member of the governing body of
the an agency
applying for a development or redevelopment
project district or a
development or redevelopment project plan, a member of the county
commission considering the application,
or a member of the
governing body of a municipality considering the application,
or an
employee or consultant of the agency, county commission or
municipality 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 the 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, or to
recorder of the municipality if he or she is an official or
employee of the municipality, 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, or
the governing body of the municipality if he or she is an official
or employee of the municipality, and entered upon the minutes books
of the county commission, or the governing body of the
municipality, acknowledging the disclosure.
(b) If an individual holds or held an interest required to be
disclosed under subsection (a) of this section, 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 such application, 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 such application, and shall
abstain from communicating with other members concerning any matter
pertaining to
that plan, project or area such application:
Provided, That the consideration or approval of a development or
redevelopment district or development or redevelopment project plan
by a county commission shall not constitute the consideration or creation of a contract for purposes of application of section
fifteen, article ten, chapter sixty-one of this code with respect
to any member of a county commission or the county commission as a
whole.
(c) Additionally, no member of the county commission or
governing body of a municipality considering a project or plan, no
member of the governing body of an agency proposing a project or
plan, or any employee of the county, municipality or agency 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: (1) The individual obtains knowledge of the plan or
project; or (2) the first published public notice of the plan,
project or area, whichever first occurs.
§7-11B-15. Reports by county commissions and municipalities,
contents, and publication; procedure to determine progress of
project; reports by development office, content of reports;
rule-making authority; development office to provide manual
and assistance.
(a) Each year, the county commission, or its designee, and the
governing body of a municipality, or its designee, that has
approved a development or redevelopment project plan shall prepare
a report giving the status of each plan and each development and
redevelopment project included in the plan and file it with the
executive director of the development office by the first day of October each year. The report shall include the following
information:
(1) The aggregate amount and the amount by 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 tax increment financing
indebtedness;
(4) The base assessed value of the development or
redevelopment project, or the development or redevelopment
project
area or district, as appropriate;
(5) The assessed value for the current tax year of the
development or redevelopment project property, or of the taxable
property having a tax situs in the development or redevelopment
project area or district, as appropriate;
(6) The assessed value added to base assessed value of the
development or redevelopment project, or the taxable property
having a tax situs in the development or redevelopment
area or
district, as the case may be;
(7) Payments made in lieu of taxes received and expended;
(8) Reports on contracts made incidental to the implementation
and furtherance of a development or redevelopment plan or project;
(9) A copy of any development or redevelopment plan, which
shall include the required findings and cost-benefit analysis;
(10) The cost of any property acquired, disposed of, rehabilitated, reconstructed, repaired or remodeled;
(11) The number of parcels of land acquired by or through
initiation of eminent domain proceedings;
(12) The number and types of jobs projected by the project
developer to be created, if any, and the estimated annualized wages
and benefits paid or to be paid to persons filling those jobs;
(13) The number, type and duration of the jobs created, if
any, and the annualized wages and benefits paid;
(14) 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 executive director of the
development office may require;
(15) An annual statement showing payments made in lieu of
taxes received and expended during the fiscal year;
(16) The status of the development or redevelopment plan and
projects therein;
(17) The amount of outstanding tax increment financing
obligations; and
(18) Any additional information the county commission or the
municipality preparing the report deems necessary or that the
executive director of the development office may by procedural rule
require.
(b) Data contained in the report required by subsection (a) of
this section shall be deemed a public record, as defined in article
one, chapter twenty-nine-b of this code.
(1) The county commission'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.
(2) The municipality's annual report shall be published on its
web site, if it has a web site. If the municipality 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 and the
governing body of a municipality that approved a development or
redevelopment plan shall publish in a newspaper of general
circulation in the county or municipality, as appropriate, an
annual statement showing for each development or redevelopment
project or plan for which tax increment financing obligations have
been issued:
(1) A summary of receipts and disbursements, by major
category, of moneys in the tax increment financing fund during that
fiscal year;
(2) A summary of 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 or
municipality 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 or municipality that approved the plan shall hold a
public hearing regarding that development or redevelopment plan and
the projects created or to be created in the development or
redevelopment
project area or district pursuant to this article.
(1) The purpose of the public hearing is to determine if the
development or redevelopment plan and the proposed project or
projects are making satisfactory progress under the proposed time
schedule contained within the approved plans for completion of the
projects.
(2) Notice of this public hearing shall be given in a
newspaper of general circulation in the county, or in the
municipality for a municipal plan, once each week for four
successive weeks immediately prior to the hearing.
(3) Public hearings on development and redevelopment plans and
projects may be held as part of a regular or special meeting of the
county commission, or governing body of the municipality, that
adopted the plan.
(e) The executive 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 executive director pursuant to this
section.
(f) For the purpose of facilitating and coordinating the
reports required by this section, the executive director of the
development office may promulgate procedural rules in the manner provided in article three, chapter twenty-nine-a of this code, to
ensure compliance with this section.
(g) The executive director of the development office shall
provide information and technical assistance, as requested by a
county commission or the governing body of a municipality, 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.
(h) By the first day of October each year, each agency that
proposed a development or redevelopment plan that was approved by
a county commission, or the governing body of a municipality, and
each county commission, or governing body of a municipality, that
approved a development or redevelopment plan that was not proposed
by an agency shall report to the executive 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 executive director 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 of the next calendar year.
§7-11B-16. 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
assessed 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, or the governing body of the municipality, 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-17. 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 (1), subsection (a) of this section the
percentage share of total ad valorem revenue for each levying body
according to paragraphs (B) through (D), subdivision (1),
subsection (a) of this section, by dividing each of such amounts by
the total ad valorem revenue figure determined by the calculation
in paragraph (A), subdivision (1), subsection (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
paragraph (B), subdivision (1), subsection (a) 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
paragraph (C), 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 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
paragraph (E), subdivision (1), subsection (a) 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
the holders of tax increment financing obligations, moneys in the
tax increment financing fund may be temporarily invested in the
same manner as other funds of the county commission, or the
municipality, that established the fund.
(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-18. Payments in lieu of taxes and other revenues.
(a) The county commission or municipality 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
received pursuant to any agreement entered into on or
subsequent to the date of creation of a development or
redevelopment district on tax exempt property located within the
development or redevelopment
project area or district.
(b)
As a condition of receiving tax increment financing, the
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 which is the
lessee of any facilities financed in whole or in part with tax increment financing obligations 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-19. Tax increment obligations generally.
(a) Tax increment obligations may be issued by a county
commission, or the governing body of the municipality, to pay project costs for projects included in the development or
redevelopment plan approved by the development office and adopted
by the county commission, or the governing body of the
municipality, that are located in a development or redevelopment
project area or district, or on land not in the district that is
contiguous to the
area or district
and which contain infrastructure
or other facilities which serve the district.
(1) Tax increment financing obligations may be issued for
project costs, as defined in section three of this article, which
may include interest prior to and during the
carrying out
acquisition, construction and equipping of a project and for a
reasonable time thereafter, with such reserves as may be required
by any agreement securing the obligations 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
or
cash expenditures 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 or the municipality issuing the tax
increment financing obligations.
(d) Every tax increment financing bond, note or other
obligation issued under this article shall recite on its face that
it is a special obligation payable solely from the tax increment
and other revenues pledged for its repayment.
§7-11B-20. Tax increment financing obligations -- authority to
issue.
For the purpose of paying project costs, or for the purpose of
refunding notes issued under this article for the purpose of paying
project costs, the county commission or municipality 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-21. Tax increment financing obligations -- authorizing
resolution.
(a) Issuance of tax increment financing obligations shall be
authorized by order of the county commission, or resolution of the
municipality, that created the development or redevelopment
project
area or district.
(b) The order, or resolution, 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
or rates to be borne
by the bonds, notes or other tax increment financing obligations.
(c) The order or ordinance may prescribe the terms, form, and
content of the tax increment financing obligations and other
particulars or information the county commission, or governing body
of the municipality, issuing the obligations 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 tax increment financing obligations.
§7-11B-22. 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 or municipality 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, or the effective date of the municipal
ordinance, creating the development or redevelopment
project area
or district and approving the development or redevelopment 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 or
municipality issuing the obligations,
on any interest payment date
and, if so, the obligations 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 (1),
subsection (a) and subsections
(a), (b) and (c) of this section,
the procedures for issuance, form, contents, execution,
negotiation, and registration of county and municipal 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-23. Tax increment financing obligations -- security -- marketability.
To increase the security and marketability of tax increment
financing obligations, the county commission or municipality
issuing the obligations may:
(1) Create a lien for the benefit of the holders of the
obligations upon any
public improvements or public works capital
improvements, facilities or both financed by the obligations; 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 obligations, or which tend to make the obligations more
marketable according to the best judgment of the county commission
or municipality issuing the tax increment financing obligations.
§7-11B-24. Tax increment financing obligations -- special fund for
repayment.
(a) Tax increment financing obligations issued by a county
commission or municipality 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 or municipality 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.
(d) A county commission or municipality may issue and secure
additional bonds payable out of the tax increment fund created for
each development or redevelopment district created under this
article, which bonds may rank on a parity with, or be subordinate
or superior to, other bonds issued by the county commission or
municipality from each such tax increment fund.
§7-11B-26. 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 and debt service may be used by
the county commission or municipality that created the development
or redevelopment
project area or district for other projects within
the
area or district, or distributed to the levying bodies as
provided in this article.
(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.