CHAPTER 136
SENATE BILL No. 237
(Amended by Chapter 154)
An Act relating to the redevelopment of property located
within a federal enclave in John-
son and Labette counties; authorizing certain powers, including tax
increment financing
and sales tax revenue bonds; relating to projects of the Kansas
development finance
authority; amending K.S.A. 74-8902, 74-8905, 74-8921, 74-8922,
74-8923, 74-8924, 74-
8925, 74-8927 and 74-8929 and repealing the existing
sections.
Be it enacted by the Legislature of the State of Kansas:
New Section 1. As used in sections
1 to 6, inclusive, and section 16,
and amendments thereto, ``board'' or ``board of county
commissioners''
means the board of county commissioners of Johnson county or the
board
of county commissioners of Labette county.
New Sec. 2. The board of county
commissioners, by resolution, may
establish a redevelopment district to cover and include all or any
part or
parts of the property located within a federal enclave in Johnson
and
Labette counties. Prior to establishing the redevelopment district,
the
board shall adopt a resolution stating its intent to create the
district and
the proposed adoption of a comprehensive master development plan
for
the property. The resolution of intent shall:
(a) Give notice that a public hearing
will be held to consider adoption
of the comprehensive master development plan for the property and
es-
tablishment of the redevelopment district and stating the date,
time and
place for the hearing;
(b) describe the proposed boundaries of
the redevelopment district;
and
(c) describe the proposed master
development plan and indicate
where copies of the plan may be obtained and inspected. A copy of
the
resolution setting the public hearing shall be published once in
the official
county newspaper not less than one week nor more than two weeks
pre-
ceding the date fixed for the public hearing, and copies of the
resolution
shall be sent by certified mail, return receipt requested, to each
owner
of land within the proposed district, to the board of education of
any
school district which does or would levy taxes on property in the
proposed
district, to the governing body of any city located within three
miles of
the boundaries of the proposed district, to the K-10 highway
association,
to the board of county commissioners of Douglas county and to the
pres-
ident of the Kansas development finance authority. Upon conclusion
of
the public hearing, the board, within 60 days, shall consider
adoption of
the comprehensive master development plan, and upon adoption of
the
plan, may establish the redevelopment district.
New Sec. 3. The board of county
commissioners, with or without the
establishment of a redevelopment district under section 1 and
amend-
ments thereto, on its own initiative or in cooperation with a
redevelop-
ment authority or one or more developers, may request and approve
the
establishment of a redevelopment district by the Kansas
development
finance authority pursuant to K.S.A. 74-8921 and 74-8922, and
amend-
ments thereto, covering all or any part or parts of property
located within
a federal enclave in Johnson and Labette counties. Upon
establishment
of such a redevelopment district, the Kansas development finance
au-
thority may enter into one or more intergovernmental agreements
with
the board of county commissioners to assist in the redevelopment of
the
property by the exercise of those powers contained in K.S.A.
74-8905,
and amendments thereto, and in addition to those purposes stated
in
subsection (v) or K.S.A. 74-8904, and amendments thereto, the
Kansas
statewide projects development corporation may act to acquire and
con-
vey property and to issue bonds on behalf of Johnson or Labette
county
for redevelopment plan projects approved by the authority and
Johnson
or Labette county for the redevelopment district established to
cover all
or part of the property located within a federal enclave in Johnson
and
Labette counties.
New Sec. 4. (a) The board of county
commissioners of Johnson
county and the board of county commissioners of Labette county
may
create a redevelopment authority, which shall be composed and have
such
powers as the board may authorize and determine by resolution
consistent
with the provisions of this act.
(b) Any redevelopment authority created
pursuant to subsection (a)
of this section shall be composed of seven members appointed by
the
board of county commissioners, with at least three of the members
being
representatives of cities, townships or other local governmental
entities
located adjacent to the federal enclave property. Each member
appointed
to the redevelopment authority shall be a resident of the county
and shall
serve for a term consistent with the term of office for the board
member
making the appointment and until such member's successor is
appointed
and qualifies. In case of a vacancy in office, a member shall be
appointed
by the board in the same manner to fill the unexpired term.
Any member of the redevelopment authority may
be removed by the
board of county commissioners for the same cause justifying removal
of
any appointive officer.
Members of the redevelopment authority shall
receive no compensa-
tion for their services but may be reimbursed for necessary
expenses
incurred in the performance of their duties.
(c) Upon creation, the redevelopment
authority shall be a body cor-
porate and politic, as quasi-municipal organization under the laws
of this
state, with the powers conferred by this act or by resolution of
the board
of county commissioners. In performing the duties authorized under
this
act, the redevelopment authority shall have the power:
(1) To sue and be sued;
(2) to receive for its lawful activities
any contributions or moneys
appropriated by the state, any city, county or other political
subdivision
or agency, or by the federal government or any agency or officer
thereof
from any other source;
(3) to disburse funds for its lawful
activities;
(4) to enter into contracts;
(5) to acquire by donation, purchase or
lease land that is located
within a federal enclave or land located within a redevelopment
district
established under this act;
(6) to sell and convey real estate
acquired under this act; and
(7) to do and perform all other things
provided by this act, or amend-
ments thereto, or by resolution of the board of county
commissioners and
to have the powers conferred by this act or board resolution.
Powers conferred on the redevelopment
authority may be exercised
only with the approval of the board of county commissioners and all
ex-
penditures made by the redevelopment authority shall be within
available
resources.
(d) The redevelopment authority shall, at
a minimum, perform the
following duties:
(1) Conduct meetings with representatives
and officials of cities,
counties, planning associations or commissions or similar entities
or or-
ganizations to develop information and ensure that the full range
of in-
terests related to the redevelopment is considered;
(2) review any comprehensive plan adopted
for the property and de-
velop recommendations for changes, if needed;
(3) evaluate surrounding property uses,
zoning regulations, and other
land use factors and development recommendations to ensure
compati-
bility;
(4) evaluate the development potential
and market feasibility for pro-
posals and options for redevelopment of the property;
(5) evaluate potential methods for the
transfer, ownership and de-
velopment of the property;
(6) make recommendations to the board on
proposals for the acqui-
sition and financing of the property by the county;
(7) conduct such other studies as the
board may request or direct;
and
(8) present such studies, reports,
recommendations and other infor-
mation to the board.
Upon the establishment of a redevelopment
district pursuant to section
2 or 3, and amendments thereto, the redevelopment authority shall
per-
form the following additional duties as prescribed by the
board:
(1) Solicit and receive development
proposals for all or parts of prop-
erty;
(2) evaluate development proposals
received for all parts of the prop-
erty and present the evaluation and recommendation to the board or
to
a zoning board as directed by the board;
(3) coordinate with county officials or
staff in negotiations with de-
velopers;
(4) prepare recommendations to the board
concerning financing or
redevelopment or infrastructure for the property;
(5) prepare recommendations for updates
to the comprehensive mas-
ter plan; and
(6) perform such other studies and
coordination as the board may
request or direct.
In the event that the board of county
commissioners determines that
it is in the best interest of the county to acquire all or part of
the enclave
property for redevelopment purposes, then the redevelopment
authority
shall perform the following additional duties as prescribed by the
board:
(1) Act as the primary contact for
developers who are interested in
acquiring and developing land at the property;
(2) prepare and present marketing
strategy for the property; and
(3) provide such other duties as the
board may request or direct.
(e) If created, the redevelopment
authority may, upon approval of
the board of county commissioners, acquire by negotiated sale, all
or any
part of the property located within a federal enclave in county,
and in so
doing, may enter into contracts for the payment of costs for such
property,
may incur debt and obligation secured by the property, and may sell
the
property to pay such obligations. The redevelopment authority may
not
incur any other debt, nor pledge any other resources.
The board of county commissioners shall
approve such acquisition if
the following conditions are satisfied:
(1) The property is part of the sunflower
army ammunition plant in
Johnson county;
(2) the property is transferred by deed
without restrictions due to
environmental contamination and with a covenant of transfer in
compli-
ance with the provisions of 42 U.S.C. 9620 et seq., and
amendments
thereto, or the governor has executed a finding of suitability for
early
transfer in compliance with federal laws and regulations;
(3) neither the state of Kansas through
its subdivisions or agencies
nor Johnson county has declared an intent to acquire the property
for
redevelopment purposes;
(4) the acquisition will not require the
redevelopment authority to
finance the acquisition with resources other than that which is
secured
by the property itself;
(5) the acquisition is made upon terms
that expressly exclude any
obligation of Johnson county or the state for the payment of any
funds
for the acquisition; and
(6) the redevelopment authority has
presented a feasibility study
demonstrating that the costs of acquisition, including all required
obli-
gations for environmental remediation, can be paid and satisfied as
and
when due through the subdivision, selling and redevelopment of the
prop-
erty.
Upon acquisition of all or any part of the
property, the redevelopment
authority shall immediately request establishment of a
redevelopment
district under section 2 or 3, and amendments thereto, and all
redevel-
opment or the property shall be in conformance with the
comprehensive
master plan and zoning and subdivision regulations adopted by the
board
of county commissioners.
(f) If, at any time after creating a
redevelopment authority pursuant
to this section, the board of county commissioners determines that
the
redevelopment authority is no longer needed or should otherwise be
dis-
solved, then the board of county commissioners may, by resolution,
dis-
solve and abolish the redevelopment authority. Thereafter, the
board of
county commissioners, for and on behalf of the county, shall assume
and
perform any on-going duties or powers of the authority, shall
assume title
to and possession of all property, real or personal, owned or held
by the
authority, and shall assume all debts, contracts and obligations
lawfully
incurred or entered into by the authority. The board of county
commis-
sioners may, by subsequent resolution, reestablish a redevelopment
au-
thority under this section at any later time.
New Sec. 5. (a) Upon establishment
of a redevelopment district pur-
suant to section 2, and amendments thereto, redevelopment within
the
district may be undertaken in one or more redevelopment projects,
and
any redevelopment project may be implemented in separate
development
stages. The developer proposing a redevelopment project within the
dis-
trict shall prepare a redevelopment project plan and submit it to
the board
or, if created, the redevelopment authority. The project plan shall
include:
(1) A feasibility study, which shall be
an open public record, showing
that the benefits to the state and its political subdivisions
derived from
the project will exceed the costs and that the income therefrom
will be
sufficient to pay for the project;
(2) a comprehensive description of the
project and an analysis of its
compliance and compatibility with the comprehensive master
develop-
ment plan adopted by the county;
(3) a description and map of the area to
be redeveloped;
(4) detailed description of the buildings
and facilities proposed to be
constructed or a completed, proposed development plan for the
project
prepared in compliance with the county's applicable zoning and
subdi-
vision regulations;
(5) a detailed plan for the financing of
the redevelopment plan; and
(6) any other information that the board
of county commissioners
deems necessary to advise the public of the intent and content of
the
plan.
(b) Upon submission and receipt of the
redevelopment project plan,
the board, or, if applicable, the redevelopment authority, shall
schedule
a public hearing on the plan. The date fixed for the public hearing
shall
be not less than 30 nor more than 70 days following receipt of the
plan.
Copies of the proposed project plan shall be delivered to those
persons
and entities entitled to notice under section 2, and amendments
thereto.
Notice of the public hearing shall be included with the plan as
delivered
and shall also be published once each week for two consecutive
weeks in
the official county newspaper. The notice shall fix the date, time
and place
of the hearing and shall state where copies of the plan can be
obtained
or examined. Finally, if the board of county commissioners or, if
appli-
cable, the redevelopment authority has been requested or otherwise
will
consider to issue tax increment financing or other bonds or
indebtedness
to provide financial assistance for the redevelopment project, then
the
plan and notice shall include a summary of such financing.
(c) Following the public hearing, the
board of county commissioners
or, if applicable, the redevelopment authority, shall consider and
may
approve and adopt the project plan. Any redevelopment project
approved
under this act shall be completed within 20 years from the date of
the
project approval. Any substantial changes to the project plan as
approved
shall be considered in the same manner and pursuant to the same
pro-
cedures as the initial project approval.
New Sec. 6. (a) The board of county
commissioners shall have the
power to issue special obligation bonds in one or more series to
finance
the undertaking of any redevelopment project approved under this
act.
(b) Any bonds issued by the county under
this section shall be con-
sidered in like manner to bonds issuable by the Kansas
development
finance authority, under subsection (e) of K.S.A. 74-8905, and
amend-
ments thereto, and shall be payable, both as to principal and
interest, in
the manner provided by K.S.A. 74-8924, and amendments thereto.
The
board may designate any or all of the revenue sources authorized
under
K.S.A. 74-8924, and amendments thereto, which shall be used for
pay-
ment of bonds issued under this section and may pledge such revenue
to
the repayment of such bonds prior to, simultaneously with or
subsequent
to the issuance of such bonds.
(c) The maximum maturity on bonds issued
to finance projects pur-
suant to this act shall not exceed 20 years.
(d) The board may authorize the issuance
of bonds payable from the
increment in ad valorem property taxes resulting from any
redevelopment
project, and the board may divide the real property within the
redevel-
opment district into separate redevelopment project areas. In that
case,
the bonds authorized may be issued for and payable from the
property
for the separate project areas within the district, and each
separate project
area shall constitute a separate taxing unit for the purpose of the
com-
putation and levy of taxes.
(e) For purposes of this section and any
bonds issued pursuant to
K.S.A. 74-8925, and amendments thereto, the increment in ad
valorem
tax shall be determined using a base year assessed valuation as
designated
by the county appraiser to be the valuation assessable on the real
property
located within the redevelopment district regardless of the status
of the
property as exempt due to ownership by the United States army.
(f) The board may approve a redevelopment
project and issue bonds
for such project and authorize only a specified percentage or
amount of
the tax increment realized from taxpayers in the redevelopment
district
for repayment or pledge of repayment for the costs of the
redevelopment
project. The county treasurer shall allocate the specified
percentage or
amount of the tax increment for the district and shall allocate the
re-
mainder for remittance in the same manner as other ad valorem
taxes.
(g) The board may refund all or part of
any special obligation bonds
issued under the provisions of this act pursuant to the provisions
of K.S.A.
10-116a, and amendments thereto.
Sec. 7. K.S.A. 74-8902 is hereby
amended to read as follows: 74-
8902. The following words or terms used in this act shall have the
follow-
ing meanings unless a different meaning clearly appears from the
context:
(a) ``Act'' means the Kansas development
finance authority act.
(b) ``Authority'' means the Kansas
development finance authority cre-
ated by K.S.A. 74-8903, and amendments thereto.
(c) ``Agricultural business enterprises''
means facilities supporting or
utilized in the operation of farms, ranches and other agricultural,
aqua-
cultural or silvicultural commodity producers and services provided
in
conjunction with the foregoing. ``Agricultural business
enterprise'' shall
not include a swine production facility on agricultural land which
is
owned, acquired, obtained or leased by a corporation, limited
liability
company, limited partnership, corporate partnership or trust.
(d) ``Agricultural land,''
``corporation,'' ``corporate partnership,'' ``lim-
ited liability company,'' ``limited partnership,'' ``swine
production facility''
and ``trust'' have the meanings ascribed pursuant to K.S.A. 2002
Supp.
17-5903, and amendments thereto.
(e) ``Board of directors'' means the
board of directors of the authority
created by K.S.A. 74-8903, and amendments thereto.
(f) ``Bonds'' means any bonds, notes,
debentures, interim certificates,
grant and revenue anticipation notes, interest in a lease, lease
certificate
of participation or other evidences of indebtedness, whether or not
the
interest on which is subject to federal income taxation, issued by
the
authority pursuant to this act.
(g) ``Capital improvements'' means any
physical public betterment or
improvement or any preliminary plans, studies or surveys relative
thereto;
land or rights in land, including, without limitations, leases, air
rights,
easements, rights-of-way or licenses; and any furnishings,
machinery, ve-
hicles, apparatus or equipment for any public betterment or
improve-
ment.
(h) ``Construct'' means to acquire or
build, in whole or in part, in
such manner and by such method as the authority shall determine to
be
in the public interest and necessary to accomplish the purposes of
and
authority set forth in this act.
(i) ``Loans'' means loans made for the
purposes of financing any of
the activities authorized within this act, including loans made to
financial
institutions for funding or as security for loans made for
accomplishing
any of the purposes of this act and reserves and expenses
appropriate or
incidental thereto.
(j) ``Educational facilities'' means
real, personal and mixed property
of any and every kind intended by an educational institution in
further-
ance of its educational program.
(k) ``Facilities'' means any real
property, personal property or mixed
property of any and every kind.
(l) ``Health care facilities'' means
facilities for furnishing physical or
mental health care.
(m) ``Housing development'' means any
work or undertaking,
whether new construction or rehabilitation, which is designed and
fi-
nanced pursuant to the provisions of this act for the primary
purpose of
providing dwelling accommodations for elderly persons and families
of
low income in need of housing.
(n) ``Industrial enterprise'' means
facilities for manufacturing, pro-
ducing, processing, assembling, repairing, extracting, warehousing,
dis-
tributing, communications, computer services, transportation,
corporate
and management offices and services provided in connection with any
of
the foregoing, in isolation or in any combination, that involve the
creation
of new or additional employment or the retention of existing
employment.
(o) ``Political subdivision'' means
political or taxing subdivisions of the
state, including municipal and quasi-municipal corporations,
boards, com-
missions, authorities, councils, committees, subcommittees and
other
subordinate groups or administrative units thereof, receiving or
expend-
ing and supported, in whole or in part, by public funds.
(p) ``Pooled bonds'' means bonds of the
authority, the interest on
which is subject to federal income taxation, which are issued for
the pur-
pose of acquiring bonds issued by two or more political
subdivisions.
(q) ``Project of statewide as
well as local importance'' means a project
as to which the secretary of commerce and housing has made
a finding
that at least: (i) Capital improvements costing not less
than $300,000,000
or, if constructed in a county which according to the 1990
decennial
census contained a population of 25,000 or less, costing
not less than
$5,000,000 will be built in the state for such project;
(ii) not less than
1,500 or, if created in a county which according to the
1990 decennial
census contained a population of 25,000 or less, not less
than 150 per-
manent and seasonal employment positions as defined by
K.S.A. 74-
50,114, and amendments thereto, will be created in the
state by such
project; (iii) is located outside of the city limits of any
city at the time of
such finding; and (iv) is to be located at a site
designated as a federal
enclave as of January 1, 1998.
(r) (q) ``State''
means the state of Kansas.
(s) (r) ``State
agency'' means any office, department, board, commis-
sion, bureau, division, public corporation, agency or
instrumentality of
this state.
Sec. 8. K.S.A. 74-8905 is hereby
amended to read as follows: 74-
8905. (a) The authority may issue bonds, either for a specific
activity or
on a pooled basis for a series of related or unrelated activities
or projects
duly authorized by a political subdivision or group of political
subdivisions
of the state in amounts determined by the authority for the purpose
of
financing projects of statewide as well as local importance as
defined
pursuant to K.S.A. 12-1744, and amendments thereto, capital
improve-
ment facilities, educational facilities, health care facilities and
housing
developments. Nothing in this act shall be construed to authorize
the
authority to issue bonds or use the proceeds thereof to:
(1) Purchase, condemn or otherwise
acquire a utility plant or distri-
bution system owned or operated by a regulated public utility;
(2) finance any capital improvement
facilities, educational facilities or
health care facilities which may be financed by the issuance of
general
obligation or utility revenue bonds of a political subdivision,
except that
the acquisition by the authority of general obligation or utility
revenue
bonds issued by political subdivisions with the proceeds of pooled
bonds
shall not violate the provisions of the foregoing; or
(3) purchase, acquire, construct,
reconstruct, improve, equip, fur-
nish, repair, enlarge or remodel property for any swine production
facility
on agricultural land which is owned, acquired, obtained or leased
by a
corporation, limited liability company, limited partnership,
corporate
partnership or trust.
Nothing in this subsection (a) shall prohibit
the issuance of bonds by
the authority when any statute specifically authorizes the issuance
of
bonds by the authority or approves any activity or project of a
state agency
for purposes of authorizing any such issuance of bonds in
accordance with
this section and provides an exemption from the provisions of this
sub-
section (a).
(b) The authority may issue bonds for
activities and projects of state
agencies as requested by the secretary of administration. No bonds
may
be issued pursuant to this act for any activity or project of a
state agency
unless the activity or project either has been approved by an
appropriation
or other act of the legislature or has been approved by the state
finance
council acting on this matter which is hereby characterized as a
matter
of legislative delegation and subject to the guidelines prescribed
in sub-
section (c) of K.S.A. 75-3711c, and amendments thereto. When
requested
to do so by the secretary of administration, the authority may
issue bonds
for the purpose of refunding, whether at maturity or in advance of
ma-
turity, any outstanding bonded indebtedness of any state agency.
The
revenues of any state agency which are pledged as security for any
bonds
of such state agency which are refunded by refunding bonds of the
au-
thority may be pledged to the authority as security for the
refunding
bonds.
(c) The authority may issue bonds for the
purpose of financing in-
dustrial enterprises, agricultural business enterprises,
educational facili-
ties, health care facilities and housing developments, or any
combination
of such facilities, or any interest in facilities, including
without limitation
leasehold interests in and mortgages on such facilities. No less
than 30
days prior to the issuance of any bonds authorized under this act
with
respect to any project or activity which is to be undertaken for
the direct
benefit of any person or entity which is not a state agency or a
political
subdivision, written notice of the intention of the authority to
provide
financing and issue bonds therefor shall be given by the president
of the
authority to the governing body of the city in which the project or
activity
is to be located. If the project or activity is not proposed to be
located
within a city, such notice shall be given to the governing body of
the
county. No bonds for the financing of the project or activity shall
be issued
by the authority for a one-year period if, within 15 days after the
giving
of such notice, the governing body of the political subdivision in
which
the project or activity is proposed to be located shall have
adopted an
ordinance or resolution stating express disapproval of the project
or ac-
tivity and shall have notified the president of the authority of
such dis-
approval.
(d) The authority may issue bonds for the
purpose of establishing and
funding one or more series of venture capital funds in such
principal
amounts, at such interest rates, in such maturities, with such
security, and
upon such other terms and in such manner as is approved by
resolution
of the authority. The proceeds of such bonds not placed in a
venture
capital fund or used to pay or reimburse organizational, offering
and ad-
ministrative expenses and fees necessary to the issuance and sale
of such
bonds shall be invested and reinvested in such securities and other
in-
struments as shall be provided in the resolution under which such
bonds
are issued. Moneys in a venture capital fund shall be used to make
venture
capital investments in new, expanding or developing businesses,
includ-
ing, but not limited to, equity and debt securities, warrants,
options and
other rights to acquire such securities, subject to the provisions
of the
resolution of the authority. The authority shall establish an
investment
policy with respect to the investment of the funds in a venture
capital
fund not inconsistent with the purposes of this act. The authority
shall
enter into an agreement with a management company experienced
in
venture capital investments to manage and administer each venture
cap-
ital fund upon terms not inconsistent with the purposes of this act
and
such investment policy. The authority may establish an advisory
board to
provide advice and consulting assistance to the authority and the
man-
agement company with respect to the management and administration
of
each venture capital fund and the establishment of its investment
policy.
All fees and expenses incurred in the management and administration
of
a venture capital fund not paid or reimbursed out of the proceeds
of the
bonds issued by the authority shall be paid or reimbursed out of
such
venture capital fund.
(e) The authority may issue bonds in one
or more series for the pur-
pose of financing a project of statewide as well as local
importance in
connection with a redevelopment plan
project that is approved by the
authority in accordance with K.S.A. 74-8921 and 74-8922, and
amend-
ments thereto, or by Johnson or Labette county in accordance
with the
provisions of this act.
(f) After receiving and approving the
feasibility study required pur-
suant to K.S.A. 74-8936, and amendments thereto, the authority
may
issue bonds in one or more series for the purpose of financing a
multi-
sport athletic project in accordance with K.S.A. 74-8936 through
74-8938,
and amendments thereto. If the project is to be constructed in
phases, a
similar feasibility study shall be performed prior to issuing bonds
for the
purpose of financing each subsequent phase.
(g) The authority may issue bonds for the
purpose of financing resort
facilities, as defined in subsection (a) of K.S.A. 32-867, and
amendments
thereto, in an amount or amounts not to exceed $30,000,000 for any
one
resort. The bonds and the interest thereon shall be payable solely
from
revenues of the resort and shall not be deemed to be an obligation
or
indebtedness of the state within the meaning of section 6 of
article 11 of
the constitution of the state of Kansas. The authority may contract
with
a subsidiary corporation formed pursuant to subsection (v) of
K.S.A. 74-
8904, and amendments thereto, or others to lease or operate such
resort.
The provisions of K.S.A. 32-867, 32-868, 32-870 through 32-873 and
32-
874a through 32-874d, and amendments thereto, shall apply to
resorts
and bonds issued pursuant to this subsection.
(h) The authority may use the proceeds of
any bond issues herein
authorized, together with any other available funds, for venture
capital
investments or for purchasing, leasing, constructing, restoring,
renovat-
ing, altering or repairing facilities as herein authorized, for
making loans,
purchasing mortgages or security interests in loan participations
and pay-
ing all incidental expenses therewith, paying expenses of
authorizing and
issuing the bonds, paying interest on the bonds until revenues
thereof are
available in sufficient amounts, purchasing bond insurance or other
credit
enhancements on the bonds, and funding such reserves as the
authority
deems necessary and desirable. All moneys received by the
authority,
other than moneys received by virtue of an appropriation, are
hereby
specifically declared to be cash funds, restricted in their use and
to be
used solely as provided herein. No moneys of the authority other
than
moneys received by appropriation shall be deposited with the state
trea-
surer.
(i) Any time the authority is required to
publish a notification pur-
suant to the tax equity and fiscal responsibility act of 1982, the
authority
shall further publish such notification in the Kansas register.
(j) Any time the authority issues bonds
pursuant to this section, the
authority shall publish notification of such issuance at least 14
days prior
to any bond hearing in the official county newspaper of the county
in
which the project or activity financed by such bonds are located
and in
the Kansas register.
Sec. 9. K.S.A. 74-8921 is hereby
amended to read as follows: 74-
8921. (a) In addition to the other requirements of this act, bonds
issued
by the authority under subsection (e) of K.S.A. 74-8905, and
amendments
thereto, shall be issued only after the authority establishes a
redevelop-
ment district and approves a redevelopment plan for a
project of state-
wide as well as local importance in accordance
with subsections (b) and
(c) the provisions of this section.
(b) The authority may establish a
district to be known as a ``redevel-
opment district'' within the state after the secretary of
commerce and
housing has certified that the district will contain a
project of statewide
as well as local importance.
(c) A project of statewide as
well as local importance may be under-
taken by the authority or a developer on behalf of the
authority, in one
or more phases, within a redevelopment district after the
redevelopment
district has been established by the
authority.
(b) To establish a redevelopment
district, the authority shall adopt a
resolution stating its intent to establish the redevelopment
district, de-
scribing the boundaries of the proposed district, identifying any
proposed
projects to be considered as a part of the redevelopment district,
and
stating the time, place, and manner that the authority will receive
public
written comment on the proposed redevelopment district. The
resolution
shall be published once each week for two consecutive weeks in a
news-
paper of general circulation within the county in which the
redevelop-
ment district may be established. A copy of the resolution shall be
mailed
to the governing bodies of the county and the school district in
which the
proposed redevelopment district is located. Upon conclusion of a
public
comment period of not less than 10 days following the second
publication,
the authority may adopt a resolution establishing the redevelopment
dis-
trict. Any addition of area to the redevelopment district shall be
subject
to the same procedure as the original resolution that established
the re-
development district.
(d) (c) Any
redevelopment plan undertaken within the redevelop-
ment district may be in separate development stages. Each plan
shall be
adopted according to the provisions of K.S.A. 74-8922, and
amendments
thereto, and shall fix a date for completion. Any project
constituting a
part of an approved redevelopment plan shall be completed on or
before
the final scheduled maturity of the first series of bonds issued to
finance
the redevelopment project.
(e) (d) Subject
to the provisions of K.S.A. 74-8925, and amendments
thereto, any increment in ad valorem property taxes resulting from
a
redevelopment district undertaken in accordance with the provisions
of
this act, shall be apportioned to the redevelopment bond fund
created
pursuant to K.S.A. 74-8927, and amendments thereto, for the
payment
of the costs of the an approved
redevelopment project of statewide as well
as local importance, including the payment of
principal and interest on
any bonds issued to finance such project pursuant to this act and
may be
pledged to the payment of principal and interest on such bonds.
The
maximum maturity of bonds issued to finance projects of
statewide as
well as local importance pursuant to this section
and subsection (e) of
K.S.A. 74-8905, and amendments thereto, shall not exceed
30 20 years
from the date of the issuance approval of
the first series of bonds issued
to finance the redevelopment project. For the
purposes of this act, ``in-
crement'' means that amount of ad valorem taxes collected from
real
property located within the redevelopment district that is in
excess of the
amount which is produced from such property and attributable to
the
assessed valuation of such property prior to the date the
redevelopment
district was established, as determined under the provisions of
K.S.A. 74-
8925, and amendments thereto.
(f) (e) Before
any redevelopment district is established pursuant to
K.S.A. 74-8921, and amendments thereto, a comprehensive
feasibility
study, which shows the benefits to the state and its political
subdivisions
derived from such project will exceed the costs and that the income
there-
from will be sufficient to pay for the project, shall be prepared
by the
developer and submitted to the secretary of commerce and
housing and
the authority and a redevelopment plan implementation
agreement be-
tween the authority and the developer with respect to implementing
the
redevelopment plan shall have been executed. Such feasibility study
shall
be an open public record and the redevelopment agreement shall
be
approved by the board of county commissioners of the county in
which
the redevelopment district is located.
Sec. 10. K.S.A. 74-8922 is hereby
amended to read as follows: 74-
8922. (a) If the developer proposes to undertake a
redevelopment project
of statewide as well as local importance within a
redevelopment district
established pursuant to K.S.A. 74-8921, and amendments thereto,
at the
federal enclave located in Johnson and Labette counties, the
developer
shall prepare a redevelopment plan. The redevelopment plan shall
in-
clude:
(1) A summary of the feasibility study
required by K.S.A. 74-8921,
and amendments thereto;
(2) a reference to the redevelopment
district established under
K.S.A. 74-8921 and amendments thereto;
(3) a comprehensive description of the
project of statewide as well as
local importance;
(4) a description and map of the area to
be redeveloped;
(5) a detailed description of the
buildings and facilities proposed to
be constructed or improved in such area; and
(6) a plan for the financing of the
redevelopment project; and
(7) any other information the
authority deems necessary to advise the
public of the intent of the plan.
(b) A copy of the proposed redevelopment
plan shall be delivered by
the developer to the authority, the secretary of commerce
and housing
and to the board of county commissioners of the county in
which the
redevelopment district is located, and the board of county
commissioners
shall determine, within 30 days after receipt of the plan, whether
the plan
as proposed is consistent with the comprehensive
general development
plan for the development of the area
property. If the proposed redevel-
opment plan is not consistent with the comprehensive
general develop-
ment plan, the board of county commissioners shall
provide its comments
and objections to the authority,
which shall modify, approve or
deny the
plan. If the redevelopment plan is consistent with the
comprehensive
general development plan of the county,
then the authority may adopt the
redevelopment plan by a resolution passed by a majority of the
board of
directors of the authority. Any substantial changes to the plan as
adopted
shall be made in the same manner, with notice and approval of the
board
of county commissioners and adoption of a resolution by the
authority. A
redevelopment plan may be adopted by the authority, pursuant to
these
procedures, at the same time that the authority establishes the
redevel-
opment district under K.S.A. 74-8921, and amendments thereto.
Any re-
development plan which proposes to undertake a project of
statewide as
well as local importance in a county which according to the
1990 decennial
census contained a population greater than 25,000 shall be
adopted prior
to July 1, 2001 or, if a developer has complied with the
provisions of
K.S.A. 74-8930 and amendments thereto, 2002.
(c) (1) Under no circumstances
shall the state of Kansas, any of its
political subdivisions, the Kansas development finance authority or
any
unit of local government assume responsibility or otherwise be
respon-
sible for any environmental remediation, or any fees which may
relate
thereto, which may be required to be performed within the
redevelop-
ment district designated through any redevelopment plan, and any
at-
torney fees incurred by the state of Kansas as a defendant in
any litigation
arising from any such environmental remediation or fees relating
thereto,
other than an action for enforcement of federal laws commenced
by ap-
propriate authorities of the federal government, shall be paid
by the party
or parties bringing the litigation or otherwise causing the
state of Kansas
to be a party to the litigation. Any person or
entity, other than the state,
an instrumentality of the state, or a unit of local
government, who pro-
poses to take legal title to land which is located at a
site designated as a
federal enclave prior to January 1, 1998, for the purpose
of developing a
project of state-wide as well as local importance shall:
(1) prior to taking
such title, enter into a consent decree agreement with the
Kansas de-
partment of health and environment or the United States
environmental
protection agency under which such person or entity
expressly agrees to
be responsible for and to complete the remediation of all
environmental
contamination of such land according to established
standards and levels
for appropriate property uses, except that part, if any, of
the remediation
which is, by agreement approved by the governor, to be
retained by the
federal government or any agency thereof and (2) prior to
taking title to
any of the land, provide prepaid third-party financial
guarantees to the
state or an instrumentality thereof sufficient in form and
amount to insure
full and complete remediation of all of the land within the
federal enclave
as required in the consent decree agreement. Nothing in
this section is
intended and shall not be construed to relieve the United
States army,
the federal government or any agency thereof from any duty,
responsi-
bility or liability for any contamination or remediation of
the land as may
be imposed or required under state or federal law;
and At the time of
transfer of any real property located within a federal enclave
in Johnson
and Labette counties from the United States to any subdivision
of the
state, including Johnson and Labette counties, if all remedial
action nec-
essary to protect human health and the environment has been
taken, a
covenant of transfer shall be made by the United States to this
effect in
compliance with the provisions of 42 U.S.C. 9620 et seq.,
and amendments
thereto. If at the time of transfer such property is still in
the remediation
process, the covenant of transfer may be deferred pending the
completion
of the remediation by the United States with a separate covenant
of trans-
fer covering the property to be provided at a future date
stating that the
site has been fully remediated as provided in 42 U.S.C. 9620 and
amend-
ments thereto. Nothing in this section is intended and shall not
be con-
strued to relieve the United States, the federal government or
any agency
thereof from any duty, responsibility or liability for any
contamination
or remediation of the land as may be imposed or required under
state or
federal law.
Prior to taking title, possession or otherwise
exercising control over the
land within a former federal enclave the
federal enclave located in Johnson
and Labette counties or in any other way exposing the state
to potential
liability for environmental remediation of such property, the state
or any
instrumentality of the state shall obtain the written opinion of a
competent
attorney, specializing in environmental law and maintaining
professional
liability insurance, and the Kansas attorney general
regarding the state's
potential liability resulting from taking title, possession or
otherwise ex-
ercising control over the land. Also prior to taking title,
possession or
otherwise exercising control over the land, Johnson county or
Labette
county, as appropriate, shall ensure that adequate environmental
insur-
ance is obtained and purchased to cover the property.
Sec. 11. K.S.A. 74-8923 is hereby
amended to read as follows: 74-
8923. The authority may use the proceeds of bonds issued pursuant
to
subsection (e) of K.S.A. 74-8905, and amendments thereto, or upon
ap-
proval by the board of county commissioners or other taxing
subdivision
in which the redevelopment district is located any uncommitted
funds
derived from those sources set forth in K.S.A. 74-8924, and
amendments
thereto, or other funds pledged for the payment of such bonds to
imple-
ment the redevelopment plan, including the payment or
reimbursement
of all costs of the project of statewide as well as local
importance to the
extent authorized in the redevelopment plan implementation
agreement
adopted pursuant to K.S.A. 74-8921, and amendments thereto. Any
ex-
cess revenue from sources set forth in K.S.A. 74-8927, and
amendments
thereto, other than any revenues pledged from private sources
which the
authority has agreed in the redevelopment implementation
agreement to
such sources not otherwise needed or committed for the
repayment of
bonds or other project costs authorized in the agreement shall upon
ap-
proval by the authority be paid out by the state treasurer
proportionately
to the appropriate taxing authorities.
Sec. 12. K.S.A. 74-8924 is hereby
amended to read as follows: 74-
8924. (a) Any bonds issued by the authority under subsection (e) of
K.S.A.
74-8905, and amendments thereto, or by Johnson county or
Labette
county under this act to finance the undertaking of any
redevelopment
project of statewide as well as local importance
in accordance with the
provisions of this act, shall be made payable, both as to principal
and
interest:
(1) From property tax increments,
other than an increment derived
from ad valorem taxes levied by or on behalf of a school
district, allocated
to, and paid into a special fund of the authority under the
provisions of
K.S.A. 74-8925, and amendments thereto;
(2) from revenues of the authority or the
developer derived from or
held in connection with the undertaking and carrying out of any
rede-
velopment plan under this act;
(3) from any private sources,
contributions or other financial assis-
tance from the state or federal government;
(4) when otherwise authorized by
law, from the revenue collected by
the state under K.S.A. 74-8927, and amendments thereto;
(5) from a portion or all increased
revenue received by any city or
county from franchise fees collected from utilities and
other businesses
using public right-of-way within the redevelopment district;
(6) when otherwise authorized by
law, from a portion or all of the
revenue received from sales taxes collected within the
redevelopment
district pursuant to K.S.A. 12-187, and amendments thereto; or
(7) by any combination of these
methods.
(b) The authority may pledge such revenue
to the repayment of such
bonds prior to, simultaneously with, or subsequent to the issuance
of such
bonds.
Sec. 13. K.S.A. 74-8925 is hereby
amended to read as follows: 74-
8925. (a) For the purposes of this act, the term ``taxing
subdivision'' shall
include the county, the city, the unified school district and any
other
taxing subdivision levying real property taxes, the territory or
jurisdiction
of which includes any currently existing or subsequently created
rede-
velopment district. The term ``real property taxes'' includes all
taxes levied
on an ad valorem basis upon land and improvements thereon, other
than
the property tax levied pursuant to the provisions of K.S.A.
72-6431, and
amendments thereto or any other property tax levied by or on behalf
of
a school district.
(b) All tangible taxable property located
within a redevelopment dis-
trict shall be assessed and taxed for ad valorem tax purposes
pursuant to
law in the same manner that such property would be assessed and
taxed
if located outside such district, and all ad valorem taxes levied
on such
property shall be paid to and collected by the county treasurer in
the
same manner as other taxes are paid and collected. Except as
otherwise
provided in this section, the county treasurer shall distribute
such taxes
as may be collected in the same manner as if such property were
located
outside a redevelopment district. Each redevelopment district
established
under the provisions of this act shall constitute a separate taxing
unit for
the purpose of the computation and levy of taxes.
(c) Beginning with the first payment of
taxes which are levied follow-
ing the date of approval of any redevelopment district established
pur-
suant to K.S.A. 74-8921, and amendments thereto, real property
taxes
received by the county treasurer resulting from taxes which are
levied
subject to the provisions of this act by and for the benefit of a
taxing
subdivision, as herein defined, on property located within such
redevel-
opment district constituting a separate taxing unit under the
provisions
of this section, shall be divided as follows:
(1) From the taxes levied each year
subject to the provisions of this
act by or for each of the taxing subdivisions upon property located
within
a redevelopment district constituting a separate taxing unit under
the
provisions of this act, the county treasurer first shall allocate
and pay to
each such taxing subdivision all of the real property taxes
collected which
are produced from that portion of the current assessed valuation of
such
real property located within such separate taxing unit which is
equal to
the total assessed value of such real property on the date of the
estab-
lishment of the redevelopment district.
(2) Any real property taxes produced from
that portion of the current
assessed valuation of real property within the redevelopment
district con-
stituting a separate taxing unit under the provisions of this
section in
excess of an amount equal to the total assessed value of such real
property
on the effective date of the establishment of the district shall be
allocated
and paid by the county treasurer according to specified percentages
of
the tax increment expressly agreed upon and consented to by the
gov-
erning bodies of the county and school district in which the
redevelop-
ment district is located. The amount of the real property taxes
allocated
and payable to the authority under the agreement shall be paid by
the
county treasurer to the treasurer of the state. The remaining
amount of
the real property taxes not payable to the authority shall be
allocated and
paid in the same manner as other ad valorem taxes. Any real
property
taxes paid to the state treasurer under this section shall be
deposited in
the redevelopment bond finance fund of the authority which is
created
pursuant to K.S.A. 74-8927, and amendments thereto, to pay the
costs of
the any approved redevelopment project
of statewide as well as local
importance, including the payment of principal of
and interest on any
bonds issued by the authority to finance, in whole or in part, such
project.
When such bonds and interest thereon have been paid, all moneys
there-
after received from real property taxes within such redevelopment
district
shall be allocated and paid to the respective taxing subdivisions
in the
same manner as are other ad valorem taxes. If such bonds and
interest
thereon have been paid before the completion of a project, the
authority
may continue to use such moneys for any purpose authorized by
the
redevelopment agreement until such time as the project costs are
paid
or reimbursed, but for a period not to exceed the final scheduled
maturity
of the bonds.
(d) In any redevelopment plan or in the
proceedings for the issuing
of any bonds by the authority to finance a project of
statewide as well as
local importance, the property tax increment
portion of taxes provided
for in paragraph (2) of subsection (c) may be irrevocably pledged
for the
payment of the principal of and interest on such bonds. The
authority
may adopt a redevelopment plan in which only a specified percentage
of
the tax increment realized from taxpayers in the redevelopment
district
is pledged to the payment of costs of the project of
statewide as well as
local importance.
Sec. 14. K.S.A. 74-8927 is hereby
amended to read as follows: 74-
8927. (a) Whenever a pledge of the revenue derived from the
state and
countywide retailers' sales tax is otherwise authorized by law
to be
pledged for the repayment of bonds issued to finance or
refinance the
redevelopment, then, until the earlier of: (1) The date the
bonds issued
to finance or refinance the redevelopment undertaken in the
redevel-
opment district have been paid in full; or (2) the final scheduled
maturity
date of the first series of bonds issued to finance the
redevelopment
project, all revenues collected or received from the state
transient guest
tax established pursuant to K.S.A. 2002 Supp. 79-5301 through
79-5304,
and amendments thereto, any revenue from a county or countywide
re-
tailers' sales tax levied or collected under K.S.A. 74-8929, and
amend-
ments thereto, the state retailers' sales tax pursuant to K.S.A.
79-3603,
and amendments thereto, and the state compensating use tax,
pursuant
to K.S.A. 79-3703, and amendments thereto, which have been
certified
by the director of taxation to have been derived from taxpayers
located
in a redevelopment district shall be remitted to the state
treasurer in
accordance with the provisions of K.S.A. 75-4215, and
amendments
thereto. Upon receipt of each such remittance, the state treasurer
shall
deposit the entire amount in the state treasury.
(b) The state treasurer shall credit all
such revenues authorized to be
pledged for the repayment of the bonds to the redevelopment
bond fund
which is hereby established in the state treasury
and shall be held by the
state treasurer as custodian for the authority. Distributions
from the re-
development bond fund shall not require an appropriation by the
legis-
lature. The state treasurer shall make such
biannual distributions on dates
mutually agreed upon by the treasurer and the authority. The
authority
shall use all such moneys received pursuant to this section to pay
the costs
of a redevelopment project of statewide as
well as local importance as
described in K.S.A. 74-8902, and amendments
thereto projects to the
extent authorized pursuant to a redevelopment plan
implementation
agreement approved pursuant to K.S.A. 74-8921, and
amendments
thereto. Any revenues not needed or committed for the
payment of bonds
or other project costs as authorized by the redevelopment plan
imple-
mentation agreement shall upon approval by the authority be
remitted
by the state treasurer proportionately to the appropriate taxing
authori-
ties.
Sec. 15. K.S.A. 74-8929 is hereby
amended to read as follows: 74-
8929. (a) Whenever a redevelopment district is proposed to be
established
pursuant to section 2, and amendments thereto, by the board of
county
commissioners or by the authority pursuant to K.S.A.
74-8921, and
amendments thereto, and a pledge of the revenue derived from the
state
or countywide retailers' sales tax is authorized to be pledged
for the re-
payment of bonds issued to finance or refinance the
redevelopment, then
the governing body of the board of county
commissioners of Johnson
county in which the redevelopment district is proposed to
be located may
or the board of county commissioners of Labette county, in
addition to
any countywide retailers' sales tax authorized by K.S.A. 12-187,
and
amendments thereto, or other specific statutory provisions,
may adopt
and impose a county retailers' sales tax at a rate of .5% within
the rede-
velopment district, without submitting the question to an election
and all
revenue derived from the county retailers' sales tax levied under
this
subsection shall be pledged for the purposes of financing the
redevel-
opment plan and redevelopment projects.
(b) Notwithstanding any other statutory
provision to the contrary,
whenever the governing body of a board of
county commissioners of John-
son county adopts and imposes the county retailers' sales
tax authorized
under subsection (a), then all revenue that is derived from a
countywide
retailers' sales tax imposed by such the
county pursuant to K.S.A. 12-187,
and amendments thereto, from taxpayers within the redevelopment
dis-
trict, except those portions of such taxes which have otherwise
been ex-
pressly dedicated for other purposes by a prior pledge of
such the county
or by authorizing statute or voter approval, shall be considered to
be
dedicated for purposes of the redevelopment district and upon
collection
by the director of taxation, such revenues shall be remitted to the
state
treasurer in accordance with the provisions of K.S.A. 75-4215,
and
amendments thereto. Upon receipt of each such remittance, the
state
treasurer shall deposit the entire amount in the state treasury to
the credit
of the redevelopment bond fund established pursuant to K.S.A.
74-8927,
and amendments thereto, if applicable, or to the redevelopment
bond
fund established by the board of county commissioners.
(c) All revenue derived from a county
retailers' sales tax imposed
under subsection (a) and collected under subsection (b) shall upon
col-
lection, be remitted to the state treasurer, as provided by K.S.A.
74-8927,
and amendments thereto, and may be pledged and used by the
authority
or board in like manner as other revenues collected or
received under
K.S.A. 74-8927, and amendments thereto. Whenever the authority
has
proposed to issue bonds pursuant to subsection (e) of K.S.A.
74-8905,
and amendments thereto, the county retailers' sales tax imposed
under
subsection (a) and the revenue collected under subsection (b) shall
re-
main in effect and may not be reduced or rescinded by the
governing
body of the county until such time as the bonds have been fully
paid.
When such bonds have been fully paid, then (1) the county
retailers' sales
tax imposed under subsection (a) shall expire, unless otherwise
renewed
by action of the governing body of the county for purposes of
imple-
menting additional projects authorized under the
redevelopment plan for
the redevelopment district; and (2) the revenues to be collected
under
subsection (b) may be rededicated for other purposes by resolution
of the
governing body of such the county and if
not so rededicated then the
revenues thereafter collected shall be used only for approved and
au-
thorized costs in the redevelopment district in accordance with
the ap-
proved redevelopment plan plans.
Upon rededication of the revenues
under subsection (b), or in the event that no future redevelopment
pro-
jects or authorized costs remain for the redevelopment district,
the rev-
enues derived from the countywide retailers' sales tax covered
under sub-
section (b) shall thereafter be distributed to the county treasurer
as
required under K.S.A. 12-192, and amendments thereto.
New Sec. 16. Whenever a
redevelopment district is established un-
der this act and bonds are issued by the board of county
commissioners
or by the Kansas development finance authority for any
redevelopment
project in the district, such redevelopment project shall be
regarded as a
redevelopment project that was determined by the secretary of
commerce
and housing to be of statewide as well as local importance for the
purposes
of K.S.A. 2002 Supp. 79-3620, 79-3620b and 79-3710, and
amendments
thereto.
Sec. 17. K.S.A. 74-8902, 74-8905, 74-8921,
74-8922, 74-8923, 74-
8924, 74-8925, 74-8927 and 74-8929 are hereby repealed.
Sec. 18. This act shall take effect and be in
force from and after its
publication in the Kansas register.
Approved April 21, 2003.
Published in the Kansas Register May 1, 2003.
__________