Printable Format12-1740. Purpose of act; revenue bonds. It is the purpose of this act to promote, stimulate and develop the general welfare and economic prosperity of the state of Kansas through the promotion and advancement of physical and mental health, industrial, commercial, agricultural, natural resources and of recreational development in the state; to encourage and assist in the location of new business and industry in this state and the expansion, relocation or retention of existing business, industry and health development; and to promote the economic stability of the state by providing greater employment opportunities, diversification of industry and improved physical and mental health, thus promoting the general welfare of the citizens of this state by authorizing all cities and counties of the state to issue revenue bonds, the proceeds of which shall be used for the purpose of paying all or part of the cost of purchasing, acquiring, constructing, reconstructing, improving, equipping, furnishing, repairing, enlarging or remodeling facilities for agricultural, commercial, hospital, industrial, natural resources, recreational development and manufacturing purposes and to enter into leases or lease-purchase agreements with any person, firm or corporation for such facilities. For the purpose of this act, the term facility shall include a site and the necessary site preparation, structures, easements, rights-of-way and appurtenances necessary and convenient to the particular type of facility being financed.
History: L. 1961, ch. 81, § 1; L. 1969, ch. 85, § 1; L. 1981, ch. 74, § 1; July 1.
Cross References to Related Sections:
Levy for securing industries, see 12-1617h, 12-1617i.
Certain promotion funds, see 12-825d, 12-825g.
Law Review and Bar Journal References:
Survey of Kansas law, Edward Larson, 10 K.L.R. 158 (1961).
"Municipal Borrowing in Kansas," Fred W. Rausch, Jr., 10 K.L.R. 520 (1962).
Survey of constitutional and administrative law, Glenn E. Opie, 12 K.L.R. 146 (1963).
Survey of law of municipal corporations, Albert B. Martin, 12 K.L.R. 289 (1963).
"A Guide to Industrial Revenue Bond Financing," Donald A. Bell and Winton M. Hinkle, 9 W.L.J. 372, 376 (1970).
Constitutionality of ten year industrial revenue bond property taxation provision of K.S.A. 79-201a, 24 K.L.R. 723, 724 (1976).
Attorney General's Opinions:
Cities and municipalities — buildings, structures and grounds — industrial revenue bonds. 81-4.
Investment of funds received from industrial revenue bonds. 81-117.
Tax exempt property; property constructed or purchased with industrial revenue bond proceeds. 82-234.
Buildings, structures and grounds; issuance of revenue bonds by counties. 85-28.
Cities and municipalities; powers and duties; conveying real property for use as federal prison site; home rule powers. 87-164.
County commissioners; general fund tax levies; limitations on use. 88-65.
Home rule powers of cities and counties; bond issuance. 88-92.
Counties and county officers; home rule powers; economic development; radio station funding. 91-89.
General bond law; local legislative powers; issuance of bonds. 91-144.
Redevelopment of central business district areas; special obligation tax increment bonds; payments in lieu of taxes. 92-63.
CASE ANNOTATIONS
1. Act does not contravene various provisions of Kansas constitution and bill of rights. State, ex rel., v. City of Pittsburg, 188 Kan. 612, 613, 614, 615, 619, 620, 621, 364 P.2d 71.
2. City ordinance to implement issuance of bonds administrative in character; not subject to initiative and referendum. Rauh v. City of Hutchinson, 223 Kan. 514, 515, 517, 520, 521, 575 P.2d 517.
3. Act constitutionally valid; any entity may become lessee of IRB property as long as purpose of act served. State ex rel. Tomasic v. City of Kansas City, 237 Kan. 572, 581, 701 P.2d 1314 (1985).
4. Lease-purchase agreement under act not complete sale; filing requirements of UCC (article 9) inapplicable. In re Petition of City of Moran, 238 Kan. 513, 520, 522, 713 P.2d 451 (1986).
5. Leases under act true leases, not mortgages, and therefore subject to assumption/rejection requirements of bankruptcy code. In re Petroleum Products, Inc., 72 B.R. 739, 740, 747 (1987).
6. Lease agreement entered into pursuant to act does not create a mortgage. Bank of Alton v. Tanaka, 247 Kan. 443, 449, 799 P.2d 1029 (1990).
7. Cited in opinion that coupon bondholders listed as having "first lien" on subject property must be paid before "junior lien" bondholders. City of Chanute v. Polson, 17 Kan. App. 2d 159, 160, 836 P.2d 6 (1992).
8. Industrial revenue bond transaction was a secured transaction resulting in property remaining in bankruptcy estate. In re Kar Development Associates, L.P., 182 B.R. 870, 871 (1995).
9. "United States Rule" providing for payment of accrued interest on defaulted revenue bonds before payment of principal indebtedness applied. In re Cherokee County Revenue Bonds, 262 Kan. 941, 942, 946 P.2d 83 (1997).
10. Letter of intent to issue industrial revenue bonds and grant abatements void for failure to notify school district. Genesis Health Club, Inc. v. City of Wichita, 285 Kan. 1021, 1024, 1027, 1031, 1043, 181 P.3d 549 (2008).
11. Administrative ordinance not subject to initiative and referendum; principles discussed whether ordinance administrative or legislative. McAlister v. City of Fairway, 289 Kan. 391, 212 P.3d 184 (2009).