INDUSTRIAL AND ECONOMIC DEVELOPMENT

K.S.A. ch. 12, art. 38

in effect

K.S.A. 12-3801 Industrial development bonds by cities and counties; legislative declaration.

12-3801. Industrial development bonds by cities and counties; legislative declaration. The legislature hereby finds and declares that as an alternative and in addition to bonds issued under any other authority now provided by law the issuance of industrial development bonds under the authority of this act will benefit and promote the general economic welfare and prosperity of the state of Kansas. L. 1974, ch. 49, § 1; July 1. Attorney General's Opinions: Home rule; acquisition of real property for industrial site. 85-52. Home rule powers of cities and counties; bonds issuance. 88-92. General bond law; local legislative powers; issuance of bonds. 91-144. CASE ANNOTATIONS 1. Act cited in determining city ordinances to implement issuance of industrial revenue bonds administrative; not subject to K.S.A. 12-3013. Rauh v. City of Hutchinson, 223 Kan. 514, 521, 575 P.2d 517.

K.S.A. 12-3802 Same; definitions.

12-3802. Same; definitions. As used in this act: (a) "Industrial development bond" means an obligation issued by any local unit of government of the state under the authority of this act for the purpose of financing the acquisition of land, the acquisition or construction (including reconstruction, improvement, expansion, extension, and enlargement) of buildings and appurtenances, including but not by way of limitation industrial trackage and access roads, the purpose of such financing being primarily to sell or lease the property so financed to a private individual, partnership, or corporation for the conduct of manufacturing, warehousing, distribution, and/or research and development operations, except municipal stadiums and theaters. (b) "Local unit of general government" means a county or a city. L. 1974, ch. 49, § 2; July 1. Attorney General's Opinions: Home rule; acquisition of real property for industrial site. 85-52.

K.S.A. 12-3803 Same; issuance of bonds authorized; not subject to bonded debt limitations.

12-3803. Same; issuance of bonds authorized; not subject to bonded debt limitations. Every local unit of general government is, except as otherwise hereinafter provided, hereby authorized to issue industrial development bonds in the manner and subject to the conditions prescribed by the provisions of this act. Industrial development bonds issued under the provisions of this act shall not be within or be subject to any bonded debt limitation prescribed by any other law of this state. L. 1974, ch. 49, § 3; July 1.

K.S.A. 12-3804 Same; findings required by governing bodies before issuance.

12-3804. Same; findings required by governing bodies before issuance. No local unit of general government may issue industrial development bonds under the provisions of this act without a finding by the government body: (a) That the local unit of general government has a contract with an individual, partnership or corporation to lease the property to be acquired with the proceeds of the industrial development bonds for occupancy and use in connection with the conduct of an industrial enterprise for a period of years, and for the lessee to pay an annual rental adequate to meet interest and principal payments falling due during the term of the lease:* (b) that the lessee of the property is a responsible party; (c) that the contract for lease of the property provides for: (1) The reasonable maintenance, less normal wear and tear, of the property by the lessee; (2) insurance to be carried on the property and the use and disposition of insurance moneys; (3) the rights of the local unit of general government and the lessee respecting the disposition of the property financed by the proposed industrial development bonds upon retirement of the bonds or termination of the contract by expiration or by failure to comply with any of the provisions thereof; and (4) the lessee to provide lease guarantee insurance with a company authorized to do business in the state of Kansas sufficient to cover any outstanding indebtedness under the lease agreement, such insurance to be furnished by the lessee upon issuance of such bonds; (d) that the contract provides for the rights of the bondholders, the care and disposition of rental receipts, and such other safeguards as are deemed to be necessary; (e) that financing by banks, other financial institutions, or other parties, of the property required by the lessee is not readily available to the lessee on ordinary commercial terms in adequate amounts either on the local market or on the national market; (f) that the facility offered the lessee is intended to accommodate expansion of an enterprise located elsewhere or a new enterprise and not primarily the relocation of an existing facility; (g) that adequate provision is being made to meet any increased demand upon community public facilities that might result from the proposed project; and (h) that the issuance of the proposed bonds and the operation of the enterprise of the lessee will not disrupt the fiscal stability of the issuing local unit of general government in the event it should become necessary for it to assume responsibility for payment of the interest and principal of the proposed industrial development bonds. L. 1974, ch. 49, § 4; July 1. Revisor's Note: * This colon should have been a semicolon instead.

K.S.A. 12-3805 Same; application of bond law; payments of principal and interest; no-fund warrants, when; tax levies; property acquired subject to tax.

12-3805. Same; application of bond law; payments of principal and interest; no-fund warrants, when; tax levies; property acquired subject to tax. (a) Except to the extent that they are in conflict with this act, the provisions of chapter 10 of the Kansas Statutes Annotated, and amendments thereto, shall apply to the authorization, and issuance and sale of industrial development bonds by the local units of general government. (b) The principal and interest of all bonds issued under the provisions of this act shall be payable from revenue derived from the leasing or rental of buildings and facilities acquired or constructed with the proceeds received from the sale of such bonds. Whenever by reason of the failure of any lessee to make payment under any contract for the leasing or rental of any such building or facility, it becomes necessary for the local unit of general government to assume the responsibility for the payment of principal and interest upon bonds issued under the provisions of this act, such local unit of general government may issue no-fund warrants in an amount necessary to make such payment. Such warrants shall be issued, registered, redeemed and bear interest in the manner and be in the form prescribed by K.S.A. 79-2940 , and amendments thereto, except they shall not bear the notation required by such section and may be issued without approval of the state board of tax appeals. The governing body of such unit of government shall make a tax levy at the time fixed for the certification of tax levies to the county clerk next following the issuance of such warrants sufficient to pay such warrants and the interest thereon. All such tax levies shall be in addition to all other levies authorized or limited by law. (c) Property acquired or improved under the provisions of this act shall be subject to ad valorem taxation as other property. L. 1974, ch. 49, § 5; L. 2008, ch. 109, § 36; L. 2014, ch. 141, § 30; July 1.

K.S.A. 12-3806 Same; approval of bond issue by electors required.

12-3806. Same; approval of bond issue by electors required. No such bonds shall be issued until the question of their issuance shall have been submitted to and been approved by a majority of the electors voting at an election called and held thereon. All such elections shall be noticed, called and held in the manner provided in K.S.A. 10-120 . L. 1974, ch. 49, § 6; July 1.

K.S.A. 12-3807 Same; severability.

12-3807. Same; severability. If any section, sentence, subdivision, or clause of this act shall for any reason be held to be invalid or unconstitutional, such decisions shall not affect the validity of the remaining portions of this act. L. 1974, ch. 49, § 7; July 1.

Source: Kansas Office of Revisor of Statutes (ksrevisor.gov)URL: https://www.ksrevisor.gov/statutes/ksa_ch12.htmlFetched: 10/20/2026