154.23.025 Standards for approval of companies and economic development projects -- Commitments to be made by eligible companies. - Kentucky Statutes

Download pdf

Loading PDF...

Page 1 of 2 154.23-025 Standards for approval of companies and economic development projects -- Commitments to be made by eligible companies. (1) Relevant standards for approval of eligible companies and economic development projects shall include but are not limited to creditworthiness of the eligible
company, the number of new jobs to be provided by a project to Kentucky residents,
and the likelihood that the project will be an economic success. (2) An eligible company shall certify to the authority by written application that it makes the following commitments in an economic development project:
(a) A minimum investment of one hundred thousand dollars ($100,000) in the project; (b) Creation of a minimum of ten (10) new full-time jobs at the project site for qualified employees by the activation date, as set forth in KRS 154.23-035 or
154.23-040; (c) A statement that no significant number of existing jobs in the Commonwealth will be lost or adversely affected due to approval of the eligible company and
its economic development project; and (d) A statement that the economic development project could reasonably and efficiently locate outside the qualified zone and, without the inducements
offered by the authority, the eligible company would likely locate outside the
zone. (3) (a) No project that will result in the replacement of an existing manufacturing or service or technology facility existing in the Commonwealth shall be
approved by the authority; however, the authority may approve a project if the
project is one:
1. a. That rehabilitates a manufacturing or service or technology facility
that has not been in operation; b. For which the current occupant of the facility has published a
notice of closure so long as the eligible company intending to
acquire the facility is not an affiliate of the current occupant; or c. To which the title is vested in one other than the eligible company
and that is sold or transferred under a foreclosure ordered by a
court of competent jurisdiction or by order of bankruptcy court; 2. Replaces a manufacturing or service or technology facility existing in
the Commonwealth that been damaged or destroyed by fire, or the title
to which shall have been taken under the exercise of the power of
eminent domain or is the subject of a nonappealable judgment that
grants the power of eminent domain to the authority, in any of these
events to the extent that normal operations cannot be resumed at the
facility within twelve (12) months; or 3. Replaces an existing manufacturing or service or technology facility
located in the same qualified zone that cannot be expanded due to the
lack of available real estate at or adjacent to the manufacturing or
service or technology facility to be replaced. Any economic Page 2 of 2 development project satisfying the requirements of this paragraph shall
only be eligible for inducements to the extent of the expansion, and no
inducements shall be available for the equivalent of the manufacturing
or service or technology facility to be replaced. (b) No economic development project otherwise satisfying the requirements of paragraph (a) of this subsection shall be approved by the authority that results
in a lease abandonment or lease termination by the approved company without
the consent of the lessor. (4) (a) Within six (6) months after the activation date, the approved company shall compensate a minimum of ninety percent (90%) of its full-time employees
whose jobs were created with base hourly wages equal to either:
1. Seventy-five percent (75%) of the average hourly wage for the
Commonwealth; or 2. Seventy-five percent (75%) of the average hourly wage for the county in
which the project is to be undertaken. (b) If the base hourly wage calculated in paragraph (a)1. or 2. of this subsection is less than one hundred fifty percent (150%) of the federal minimum wage, then
the base hourly wage shall be one hundred fifty percent (150%) of the federal
minimum wage. However, for projects receiving preliminary approval of the
authority prior to July 1, 2008, the base hourly wage shall be one hundred fifty
percent (150%) of the federal minimum wage existing on January 1, 2007. In
addition to the applicable base hourly wage calculated above, the eligible
company shall provide employee benefits equal to at least fifteen percent
(15%) of the applicable base hourly wage; however, if the eligible company
does not provide employee benefits equal to at least fifteen percent (15%) of
the applicable base hourly wage, the eligible company may qualify under this
section if it provides the employees hired by the eligible company as a result
of the economic development project total hourly compensation equal to or
greater than one hundred fifteen percent (115%) of the applicable base hourly
wage through increased hourly wages combined with employee benefits. Effective: June 26, 2007
History: Amended 2007 Ky. Acts ch. 69, sec. 3, effective June 26, 2007. -- Amended 2004 Ky. Acts ch. 105, sec. 6, effective July 13, 2004. -- Amended 2002 Ky. Acts
ch. 338, sec. 27, effective July 15, 2002. -- Created 2000 Ky. Acts ch. 528, sec. 5,
effective July 14, 2000.