ECONOMIC DEVELOPMENT PARTNERSHIP
Overview of City, County, and Other Local Incentives
The community of Danville/Boyle County, Kentucky, offers to new business prospects the following
local incentives to induce their development in our location. These incentives are subject to final approval
as required by the Danville City Commission (City), the Boyle County Fiscal Court (County), and/or the
Kentucky Economic Development Finance Authority (KEDFA).
Introduction: These incentives are premised upon the policy that the City and/or County shall
experience no net loss of tax revenues as a result of incentive investments in an eligible project. And,
a cost-benefit analysis shall be conducted prior to a grant of incentives to demonstrate that the City and/or
County will recapture a reasonable rate of return on their incentive investment in a project.
Clawbacks shall be required for applicable incentives. The City and/or County shall give preference to
projects in which KEDFA is an incentive investment partner.
City of Danville and/or Boyle County
1. Job Development Incentive (JDI): The City and County may jointly credit to an employer up to 1%
of net profits tax and/or grant to an employer a wage assessment of up to 1% of payroll tax paid
by its new employees for a period of not less than five (5) years nor more than fifteen (15) years.
Priority shall be given to new or existing business projects that qualify for Kentucky Business
Investment (KBI) or Kentucky Reinvestment Act (KRA) incentives. However, the City and/or the
County may extend the JDI to a business project which does not receive state incentives, but is reviewed
and recommended by the Danville/Boyle County Economic Development Partnership (EDP). This
flexible incentive shall be negotiated and structured upon the number of jobs created, the amount of
capital invested, the amount of development costs not addressed by other incentives, and the
competitive need presented by a project. The company must agree to remain in the community for
a period of years after the project’s activation or, alternatively, to repay a pro rata share of these
incentives based upon the duration of the company’s location in the community within that
period.
2. Industrial Revenue Bond (IRB): The City and/or the County, with approval of KEDFA, may issue an
IRB on the company’s behalf to finance the project costs of the company’s facility, including
engineering, site preparation, land, buildings, machinery/equipment, and bond issuance costs. The
issuing government will take ownership of the subject property as the bond is repaid by the company via
leasehold. For the period of the IRB’s repayment and to the extent that the IRB finances the project,
the company will receive an abatement of all City and County real and/or tangible property
taxes and may receive a reduced state property tax rate. However, a payment in lieu of taxes
(PILOT) shall be negotiated with the company for the benefit of school, fire protection, and
other special districts.
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3. Community Development Block Grant (CDBG): Subject to CDBG program guidelines and funding
availability, the City and/or the County may apply for a grant of Economic Development program
funds for an eligible project from the Kentucky Department for Local Government, which
administers the U.S. Department of Housing and Urban Development’s CDBG allocation for
Kentucky. The City and County may jointly apply for a maximum grant of $2,000,000.00, or each
jurisdiction separately may apply for a maximum grant of $1,000,000.00. CDBG funds may be used
to create or retain jobs and to provide training and human services for the professional
advancement of low-to-moderate-income persons. CDBG funds shall be loaned to a company at
a below-market rate of interest and then repaid to the Boyle County Industrial Foundation as the
City and/or County’s sub-recipient for eligible local business reinvestment.
4. Tax Increment Financing (TIF): TIF is a tool to use future gains in taxes to finance the current
improvements that will create those gains. A development project is financed by using incremental
additional local taxes such as property or payroll taxes realized as a result of the development.
Subject to Kentucky’s TIF program guidelines and KEDFA approval, the City and/or the County may
participate in the following local development area TIFs as long as either shall not cause the tract to
represent over 20% of the assessed value of all taxable real property in the jurisdiction:
a. Vacant Land Development: In any 12-month period, the City and/or County may approve a
development area of a previously undeveloped tract of land no larger than 1,000 acres. State
participation is not available in a vacant land development TIF.
b. Mixed Use Redevelopment: The City and/or the County may establish a development area of
contiguous land no larger than three (3) square miles that is determined to be a blighted
area through required statutory findings. The City and/or the County may request state
participation with certain additional requirements.
City of Danville
1. Property Tax Exemption: The City may abate real and/or tangible property taxes for a period up
to five (5) years to induce manufacturing establishments to locate within the City, per Kentucky
Revised Statutes (KRS) 92.300 (1). (For Fiscal Year 2010 – 2011, the City’s real property tax rate is
$0.138 per $100 valuation while the tangible property tax rate is $0.186 per $100 valuation.) The
company must agree to remain in the community for a period of up to ten (10) years after its
location or, alternatively, to repay a pro rata share of these incentives based upon the duration
of the company’s location in the community within that period.
2. Recaptured Economic Development (ED) Bond Funds Grant: Subject to joint approval by the City
and KEDFA, the City may grant to the company an amount in recaptured ED Bond funds.
These funds may be used for “the acquisition of any real estate and the construction, acquisition, and
installation thereon and with respect thereto of improvements and facilities necessary and useful for the
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improvement of the real estate for conveyance to or lease to industrial firms to be used for
manufacturing, processing, or assembling purposes, including without limitation: (a) surveys; (b) site
tests and inspections; (c) subsurface site work; (d) excavation, removal of structures, roadways,
cemeteries, and other surface obstructions; (e) filling, grading, and provision of drainage; (f) storm water
retention; (g) installation of utilities, such as water, sewer, sewage treatment, gas, electricity,
communication and other similar facilities; (h) off-site construction of utility extensions to the
boundaries of the real estate; (i) construction and installation of buildings, including buildings to be used
for worker training and education; (j) rail facilities; (k) roads, sidewalks, curbs, and other improvements;
(l) workforce training and education; and (m) any other use approved in writing by KEDFA.”
This grant of ED Bond funds shall be conditioned upon the fulfillment of targeted job creation
goals as agreed upon by the City, KEDFA, and the company, subject to proportional repayment to
the City should the company not fulfill its job creation goals within an agreed period of time. These
recaptured ED Bond funds shall be granted under the same terms as any additional ED Bond funds
granted directly by KEDFA for a project.
3. Fee Waivers: The City may reduce or waive the following fees related to the project:
a. water and sewer connection fees, excluding time and materials expended by the City, the value of
which is to be determined by the company’s expected water and sewer consumption;
b. business license fee ($25); and
c. stormwater fee, which shall be available for a negotiated period of time only in extraordinary
circumstances as justified by project viability within the City and after all other City incentives above
have been utilized.
4. New Markets Tax Credit (NMTC): The City includes a Qualifying Census Tract (Census Tract
21021990300), which encompasses the downtown business district. The EDP will facilitate an eligible
project’s contact with and application to a Community Development Entity (CDE) to secure loan
financing via the CDE’s NMTC allocation.
Economic Development Partners
1. Industrial Park Site Survey/Utility Connection: For undeveloped land within the industrial parks it
owns, the Boyle County Industrial Foundation will assume the costs of surveying a site selected by
a project and extending necessary utility connections to the site boundary.
2. Permitting/Licensing Assistance: For both industrial and commercial projects, the Danville/Boyle
County Chamber of Commerce offers “JumpStart” guidance through the local permitting/licensing
process by:
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a. convening a roundtable of local regulatory agency representatives to personally advise the
project regarding local and, if applicable, state requirements for its operations and to develop a
project-specific plan for the permitting/licensing process; and
b. coordinating the follow-up response of local regulatory agencies to the project’s needs.
3. Application Fee Reimbursement: The Boyle County Industrial Foundation will reimburse a
company for the non-refundable application fee payable to the Kentucky Cabinet for Economic
Development upon the company’s submission of an application for state financial incentives, a value
of up to $1,000.00 per project application.
4. Workforce Training, Recruitment & Relocation Support: The community of Danville/Boyle County,
Kentucky, stands ready to accommodate your company’s workforce needs through our network of local
resources:
a. Bluegrass Community & Technical College’s Danville Campus offers a variety of workforce
education and training programs that may be specifically tailored to the needs of your company for
skilled employees.
b. Our community’s economic development, educational, and employment agencies are also
committed to assisting your company to recruit a skilled workforce from our 13-county labor
market area, encompassing an available labor supply of at least 31,674 workers within a
regional civilian labor force of approximately 300,370 workers as of September 2011 per the
U.S. Department of Labor, Bureau of Labor Statistics.
c. The EDP offers “concierge” services to our new and existing industries through our network of
public and private resources. On the community’s behalf, the EDP will warmly receive and
diligently support your company’s managerial and/or technical staff and their families who may
relocate here to establish your new facility and operations. This support includes direct, personal
assistance to secure residential housing and services, spousal employment, and educational
placement.
As these aggressive and flexible incentives attest, the community of Danville/Boyle County, Kentucky,
strongly desires to welcome your company as the newest corporate citizen of our diverse and vibrant
community of local industries and businesses!
For additional information, please contact:
Jody A. Lassiter, JD | President/CEO
Danville/Boyle County Economic Development Partnership
304 South Fourth Street | Danville, Kentucky 40422
Office: (859) 236-2805 | Mobile: (859) 319-8068
jody@betterindanville.com | www.betterindanville.com