Request By:
Mr. J. Michael Foster
Christian County Attorney
Planters Bank Building
Hopkinsville, Kentucky 42240
Opinion
Opinion By: Steven L. Beshear, Attorney General; By: Charles W. Runyan, Assistant Deputy Attorney General
The county judge executive and other members of your fiscal court request an opinion in reference to the extent of authority of a local industrial development authority created under KRS 152.830.
Your specific question is whether such a development authority created by fiscal court could provide low interest loans to farmers and members of the agricultural community?
The purpose of this legislation is expressed in KRS 152.820:
"The purpose of KRS 152.810 to 152.930 is to create local industrial development authorities to aid in the acquisition, retention and development of land for industrial and commercial purposes in Kentucky; to aid in the development and promotion of industrial sites, parks and subdivisions for accommodating industrial and commercial needs; to promote and stimulate the acquisition, retention and development of land for industrial and commercial purposes in Kentucky by other local development organizations both public and private."
KRS 152.810 (definitions) reads in part:
"As used in KRS 152.820 to 152.930, unless the context otherwise requires:
"(1) 'Authority' means a local industrial development authority as established by KRS 152.810 to 152.930.
"(2) 'Industrial sites, parks and subdivisions' means land suitable for one or more industries or commercial establishments.
"(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."
We pointed out in OAG 77-646, copy enclosed, that the word "development" as used in KRS 152.810(3) does not extend beyond the local authority's making land available for industrial and commercial purposes. See KRs 152.840, for functions of an authority.
The Supreme Court of Kentucky, in City of Owensboro v. McCormick, Ky., 581 S.W.2d 3 (1979), in declaring the legislation unconstitutional as relates to the condemnation of private property for the "development of a single industrial or commercial establishment, "apparently construed the legislation to embrace only industrial or commercial establishments, ultimately. An "industrial" company is one engaged in industrial production or service. Webster's Seventh New Collegiate Dictionary, p. 430. "Commercial" is defined by Black's Law Dictionary, page 337, as "Relating to or connected with trade and traffic or commerce in general." The word "agricultural" is defined in Black's Law Dictionary, page 90, as "pertaining to, or dealing with, agriculture; also characterized by or engaged in farming as the leading pursuit. Oak Woods Cemetery Ass'n v. Murphy, 383 Ill. 301, 50 N.E.2d 582, 587."
After reviewing the language of KRS 152.810 to 152.930, it is our opinion that an industrial development authority has no authority to provide loans to farmers and members of the agricultural community. Such a purpose is not one of those listed in KRS 152.820.