Request By:
Mr. Rodney P. Dempsey
Executive Director
Industrial Development
Finance Authority
Capital Plaza Tower
Frankfort, Kentucky 40601
Opinion
Opinion By: Robert F. Stephens, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
The Corbin Tri-County Industrial Authority wishes to develop a 650 acre industrial park. This is pursuant to KRS 152.810 to 152.930, authorizing local industrial development authorities to acquire and develop land for industrial and commercial purposes.
You ask our interpretation of the word "developed" as used in KRS 152.820 and 152.850, which imposes limitations on condemnation power. It [KRS 152.850] reads in part: "The property shall be developed within a period of five (5) years pursuant to the purpose stated, and the failure of the authority to so develop shall entitle the person or persons whose property was condemned to repurchase the property at the price the authority paid to the governmental unit for the same."
KRS 152.810(3) reads:
"As used in KRS 152.820 to 152.930, unless the context otherwise requires:
* * *
"(3) 'Development of land' means the improvement and provision of facilities essential to the use of land for industrial and commercial purposes such as but not limited to core drilling, grading, sewerage systems, water systems, access roads, rail lines, electrical lines, and layout planning. "
The answer to your first question is that if the land acquired by the Corbin Tri-County Industrial Authority is, within the five year period mentioned in KRS 152.850, actually improved by way of any necessary core drilling, grading, constructing a sewerage system, water system, access roads, rail lines, and electrical lines, and layout planning, the owners of the affected lands [prior to condemnation] could not repurchase such lands.
The Authority has acquired six parcels, using the proceeds of a $420,000 HUD grant. They have options on three additional parcels. Then they must acquire still an additional three parcels, for a total of twelve parcels. However, it is doubtful that the latter three parcels can be acquired without condemnation. The master plan for the project anticipates providing on-site railroad spur tracks, roads, utilities and drainage, access roads to the site, soil borings, water service development, sewerage development, natural gas service development, site grading and layout planning. It is our opinion that if those items are developed as anticipated within the five year period, and assuming they may have to condemn some of the parcels, the clause relating to repurchase by the condemnee under KRS 152.850 will not apply.
We are returning your copy of the master plan with this opinion.
The point is that the word "development" as used in the statutes does not extend beyond the local authority's making the land available for industry as described in KRS 152.810(3).