Session Law

Identifying Information:L. 2003 ch. 136
Other Identifying Information:2003 Senate Bill 237
Tax Type:Corporate Income Tax; Kansas Retailers' Sales Tax
Brief Description:(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.
Keywords:


Body:

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, 2002.

Published in the Kansas Register May 1, 2002.


__________




Date Composed: 10/29/2003 Date Modified: 10/29/2003