ENROLLED
COMMITTEE SUBSTITUTE
FOR
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 244
(By Senators Tomblin, Mr. President, and Sprouse,
By Request of the Executive)
____________
[Passed March 9, 2002; in effect ninety days from passage.]
____________
AN ACT to amend and reenact article eleven-b, chapter seven of
the code of West Virginia, one thousand nine hundred thirty-
one, as amended, relating generally to tax increment
financing; making legislative findings; stating legislative
purpose; defining certain terms and phrases; imposing public
bid and prevailing wage rate requirements and exceptions
thereto; providing certain powers to county commissions
relating to implementation of tax increment financing plan;
requiring notice and public hearing on proposal to create a
development or redevelopment area; requiring approval of
plan by director of West Virginia development office;
establishing and providing for distribution of tax revenues
and the tax increment portion thereof; providing
restrictions on implementation of plan; providing for modification of plan; providing certain requirements for
plan; providing for valuation of property in development or
redevelopment project area; providing for distribution of
payment in lieu of taxes receipts; authorizing issuance of
tax increment obligation instruments; providing terms and
conditions of obligations issued; providing for payment of
obligations; providing tax exemption for obligations;
providing for distribution of excess funds received;
providing for computation of local share for support of
schools; and providing effective date for provisions of act.
Be it enacted by the Legislature of West Virginia:
That article eleven-b, chapter seven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended and reenacted to read as follows:
ARTICLE 11B. WEST VIRGINIA TAX INCREMENT FINANCING ACT.
§7-11B-1. Short title.
This article may be known and cited as "The West Virginia
Tax Increment Financing Act".
§7-11B-2. Findings and legislative purpose.
(a) It is found and declared to be the policy of this state
to promote and facilitate the orderly development and economic
stability of its communities. County commissions need the
ability to raise revenue to finance public improvements that are
designed to encourage economic growth and development in
geographic areas characterized by high levels of unemployment,
stagnate employment, slow income growth, contaminated property or inadequate infrastructure. The construction of necessary public
improvements in accordance with local economic development plans
will encourage investing in job-producing private development and
expand the public tax base.
(b) It is also found and declared that capital improvements
or facilities in any area that result in the increase in the
value of property located in the area or encourage increased
employment within the area will serve a public purpose for each
taxing unit possessing the authority to impose ad valorem taxes
in the area.
(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
improvements designed to encourage private development in
selected areas; and
(2) To assist local governments that have a competitive
disadvantage in their ability to attract business, private
investment or commercial development due to their location; to
encourage remediation of contaminated property; to prevent or
arrest the decay of selected areas due to the inability of
existing financing methods to provide public improvements; and to
encourage private investment designed to promote and facilitate
the orderly development or redevelopment of selected areas.
§7-11B-3. Definitions.
(a) General. -- When used in this article, words and phrases
defined in this section shall have the meanings ascribed to them in this section, unless a different meaning is clearly required
either by the context in which the word or phrase is used or by
specific definition in this article.
(b) Words and phrases defined. --
(1) "Agency" includes a municipality, a county or municipal
development agency established pursuant to authority granted in
section one, article twelve of this chapter, a port authority, an
airport authority or any other entity created by this state or an
agency or instrumentality of this state that engages in economic
development activity.
(2) "Base assessed value" means:
(A) The taxable assessed value of real and tangible personal
property of a project developer having a tax situs within a
development 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 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 preceding the formation of the development or
redevelopment project area or district.
(3) "Blighted area" means an area in which the structures,
buildings or improvements, by reason of dilapidation,
deterioration, age or obsolescence, inadequate provision for access, ventilation, light, air, sanitation, or open spaces, high
density of population and overcrowding or the existence of
conditions which endanger life or property, are detrimental to
the public health, safety, morals or welfare. "Blighted area"
includes any area which, by reason of the presence of a
substantial number of substandard, slum, deteriorated or
deteriorating structures, predominance of defective or inadequate
street layout, faulty lot layout in relation to size, adequacy,
accessibility, or usefulness, unsanitary or unsafe conditions,
deterioration of site or other improvements, diversity of
ownership, defective or unusual conditions of title, or the
existence of conditions which endanger life or property by fire
and other causes, or any combination of such factors,
substantially 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 annual taxable assessed value of real and tangible
personal property having a tax situs within a development or
redevelopment project area or district as shown upon the landbook
and personal property records of the assessor.
(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 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 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 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 facility requiring an investment of
capital, including extensions, additions or improvements to
existing facilities including water or wastewater facilities, and
the remediation of contaminated property as provided for in
article twenty-two, chapter twenty-two of this code, but does not
include performance of any governmental service by a county or
municipal government.
(22) "Project costs" means expenditures made in preparation
of the development or redevelopment project plan and made, or
estimated to be made, or monetary obligations incurred, or
estimated to be incurred, by the county commission which are
listed in the project plan as costs of public works or improvements within a development or redevelopment project area
or district, plus any costs incidental thereto. "Project costs"
include, but are not limited to:
(A) Capital costs, including, but not limited to, the actual
costs of the construction of public works or improvements, new
buildings, structures and fixtures, the demolition, alteration,
remodeling, repair or reconstruction of existing buildings,
structures and fixtures, environmental remediation, parking and
landscaping, the acquisition of equipment, and site clearing,
grading and preparation;
(B) Financing costs, including, but not limited to, a
interest paid to holders of evidences of indebtedness issued to
pay for project costs, all costs of issuance and any redemption
premiums, credit enhancement or other related costs;
(C) Real property assembly costs, meaning any deficit
incurred resulting from the sale or lease as lessor by the county
commission of real or personal property having a tax situs within
a development or redevelopment project area or district for
consideration that is less than its cost to the county
commission;
(D) Professional service costs, including, but not limited
to, those costs incurred for architectural planning, engineering
and legal advice and services;
(E) Imputed administrative costs, including, but not limited
to, reasonable charges for time spent by county employees or
municipal employees in connection with the implementation of a project plan;
(F) Relocation costs, including, but not limited to, those
relocation payments made following condemnation and job training
and retraining;
(G) Organizational costs, including, but not limited to, the
costs of conducting environmental impact and other studies, and
the costs of informing the public with respect to the creation of
a project development area and the implementation of project
plans;
(H) 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) "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 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) Issue tax increment financing obligations and pledge tax
increments and other revenues for repayment of the obligations;
(4) Deposit moneys into the tax increment financing fund for
any development or redevelopment project area or district, or
project;
(5) Enter into any contracts or agreements, including agreements with bondholders, determined by the county commission
to be necessary or convenient to implement the provisions and
effectuate the purposes of project plans;
(6) Receive from the federal government or the state loans
and grants for, or in aid of, a development or redevelopment
project and to receive contributions from any other source to
defray project costs;
(7) Exercise the right of eminent domain to condemn property
for the purposes of implementing the project plan. The rules and
procedures set forth in chapter fifty-four of this code shall
govern all condemnation proceedings authorized in this article;
(8) Make relocation payments to those persons, businesses,
or organizations that are displaced as a result of carrying out
the development or redevelopment project;
(9) Clear and improve property acquired by the county
commission pursuant to the project plan and construct public
facilities on it or contract for the construction, development,
redevelopment, rehabilitation, remodeling, alteration or repair
of the property;
(10) Cause parks, playgrounds or water, sewer or drainage
facilities, or any other public improvements, including, but not
limited to, fire stations, community centers and other public
buildings, which the county commission is otherwise authorized to
undertake, to be laid out, constructed, or furnished in
connection with the development or redevelopment project. When
the public improvement 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;
(11) Lay out and construct, alter, relocate, change the
grade of, make specific repairs upon, or discontinue public ways
and construct sidewalks in, or adjacent to, the development or
redevelopment project: Provided, That when the public way or
sidewalk is located within a municipality, the governing body of
the municipality shall consent to the same and if the public way
is a state road, the consent of the commissioner of highways
shall be necessary;
(12) Cause private ways, sidewalks, ways for vehicular
travel, playgrounds or water, sewer or drainage facilities and
similar improvements to be constructed within the development or
redevelopment project for the particular use of the development
or redevelopment project area or district, or those dwelling or
working in it;
(13) Construct any capital improvements of a public nature;
(14) Construct capital improvements to be leased or sold to
private entities in connection with the goals of the development
or redevelopment project;
(15) Designate one or more official or employee of the
county commission to make decisions and handle the affairs of
development and redevelopment project areas or districts created by the county commission pursuant to this article;
(16) Adopt 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) 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) Sell, mortgage, lease, transfer, or dispose of any
property or interest therein, acquired by it pursuant to the
project plan for development, redevelopment or rehabilitation in
accordance with the project plan;
(19) Expend project revenues as provided in this article;
and
(20) Do all things necessary or convenient to carry out the
powers granted in this article.
§7-11B-5. Powers supplemental.
The powers conferred by this article are in addition and
supplemental to the powers conferred upon county commissions and
municipalities by the Legislature relating to the issuance of
industrial and commercial development bonds and refunding bonds.
§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 to be developed in
conjunction with a private project of a project developer. The
application shall state the projects's economic impact,
viability, estimated revenues and potential for job creation 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 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 legal advertisement in accordance with
section two, article three, chapter fifty-nine of this code.
(2) The notice shall include the time, place and purpose of
the public hearing, describe in sufficient detail the tax
increment financing plan, the proposed boundaries of the
development or redevelopment project area or district and the
proposed tax increment financing obligations to be issued to
finance the development or redevelopment project costs.
(3) 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 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
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 and
submit it to the director of the development office for his or
her review and approval. The director, within sixty days after receipt of the plan, shall approve the plan as submitted, reject
the plan, or return the plan to the county commission or
governing body of the municipality for further development or
review in accordance with instructions of the director of the
development office. A 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
by the development office, the county commission may enter an
order, and the governing body of the municipality proposing the
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 plan;
(6) Establishes a tax increment financing fund as a separate
fund into which all tax increment revenues and other revenues
designated by the county commission, 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 for so long as
any tax increment financing obligations payable from the tax
increment financing fund, hereinafter authorized, are outstanding
and unpaid: (A) For each tax year, the county assessor shall record in the land and
personal property books both the base assessed value and the
current assessed value of the real and tangible personal property having a tax situs in the development or redevelopment project
area or district;
(B) Ad valorem taxes collected from regular levies upon real
and tangible personal property having a tax situs in the area or
district that are attributable to the lower of the base assessed
value or the current assessed value of real and tangible personal
property located in the development project area shall be
allocated to the levying bodies in the same manner as applicable
to the tax year in which the 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 municipality without the formal
consent of the governing body of the 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 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; (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.
(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.
(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 of a development or
redevelopment project plan must be within one year after the date
of the county assessor's certification required by subdivision
(5), subsection (b) of this section. 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.
§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.
(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 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 agency
applying for a development or redevelopment project or a
development or redevelopment project plan, a member of the county
commission considering the application, 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 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, 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, and shall abstain from
communicating with other members concerning any matter pertaining
to that plan, project or area.
(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-14. Projects financed by tax increment financing
considered to be public improvements subject to prevailing
wage, local labor preference and competitive bid
requirements.
(a) Any project acquired, constructed or financed, in whole
or in part, by a county commission or municipality under this
article shall be considered to be a "public improvement" within
the meaning of the provisions of articles one-c and five-a,
chapter twenty-one of this code.
(b) The county commission or municipality shall, except as
provided in subsection (c) of this section, solicit or require
solicitation of competitive bids and require the payment of
prevailing wage rates as provided in article five-a, chapter
twenty-one of this code and compliance with article one-c of said
chapter for every project or infrastructure project funded
pursuant to this article exceeding twenty-five thousand dollars
in total cost.
(c) Following the solicitation of the bids, the construction
contract shall be awarded to the lowest qualified responsible
bidder, who shall furnish a sufficient performance and payment
bond: Provided, That the county commission, municipality or other
person soliciting the bids may reject all bids and solicit new
bids on the project.
(d) This section does not:
(1) Apply to work performed on construction projects not
exceeding a total cost of fifty thousand dollars by regular full-
time employees of the county commission or the municipality:
Provided, That no more than fifty thousand dollars shall be
expended on an individual project in a single location in a
twelve-month period;
(2) Prevent students enrolled in vocational educational
schools from being used in construction or repair projects when
such use is a part of the students' training program;
(3) Apply to emergency repairs to building components and
systems: Provided, That the term "emergency repairs" means
repairs that, if not made immediately, will seriously impair the
use of the building components and systems or cause danger to
those persons using the building components and systems; or
(4) Apply to any situation where the county commission or
municipality comes to an agreement with volunteers, or a
volunteer group, by which the governmental body will provide
construction or repair materials, architectural, engineering,
technical or any other professional services and the volunteers
will provide the necessary labor without charge to, or liability
upon, the governmental body: Provided, That the total cost of the
construction or repair projects does not exceed fifty thousand
dollars.
(e) The provisions of subsection (b) of this section apply
to privately owned projects or infrastructure projects constructed on lands not owned by the county commission, a
municipality or a government agency or instrumentality when the
owner or the owner's agent or person financing the owner's
project receives money from the tax increment financing fund for
the owner's project.
§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 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 (!), 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 on tax exempt property located within the development or
redevelopment project area or district.
(b) As a condition of receiving tax increment financing, the
lessee of property that is exempt from property taxes because it
is owned by this state, a political subdivision of this state or
an agency or instrumentality thereof, the lessee shall execute a
payment in lieu of tax agreement that shall remain in effect
until the tax increment financing obligations are paid, during
which period of time the lessee agrees to pay to the county
sheriff an amount equal to the amount of ad valorem property
taxes that would have been levied against the assessed value of
the property were it owned by the lessee rather than a tax exempt
entity. The portion of the payment in lieu of taxes attributable
to the incremental value shall be deposited in the tax increment financing fund. The remaining portion of the in lieu payment
shall be distributed among the levying bodies as follows:
(1) The portion of the in lieu tax payment attributable to
the base value of the property shall be distributed to the
levying bodies in the same manner as taxes attributable to the
base value of other property in the area or district are
distributed; and
(2) The portions of the in lieu tax payment attributable to
levies for bonded indebtedness and excess levies shall be
distributed in the same manner as those levies on other property
in the area or district are distributed.
(c) Other revenues to be derived from the development or
redevelopment project area or district may also be deposited in
the tax increment financing fund at the direction of the county
commission.
§7-11B-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.
(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 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
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 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 (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 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.
§7-11B-25. Tax increment financing obligations - Tax exemption.
Tax increment financing obligations issued under this
article, together with the interest and income therefrom, shall
be exempt from all state income taxes, whether imposed on
individuals, corporations or other persons, from state business franchise taxes and from ad valorem property taxes.
§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.
§7-11B-27. Computation of local share for support of public
schools when tax increment financing is used
.
For purposes of any computation made in accordance with the
provisions of section eleven, article nine-a, chapter eighteen of
this code, for a county in which there is tax increment financing
in effect pursuant to this article, the assessed value shall be
the current assessed value minus the amount of assessed value
used to determine the tax increment amount, minus any other
adjustments allowed by section eleven of said article nine-a.
§7-11B-28. Effective date.
Notwithstanding the effective date of this act of the Legislature, this article shall not become operational and shall
have no force and effect until the day the people ratify an
amendment to the constitution of this state authorizing tax
increment financing secured by ad valorem property taxes.