Iaccarino, 111821 KYAGO, AGO OAG 21-12

Docket NºAGO OAG 21-12
Case DateNovember 18, 2021
CourtKentucky
Carmine G. Iaccarino
AGO OAG 21-12
No. OAG 21-12
Kentucky Attorney General Opinion
Commonwealth of Kentucky Office of the Attorney General
November 18, 2021
         Subject: Whether, under KRS 91.752, the Lexington-Fayette County Urban Government may establish an industry-specific “hotel only” management district that benefits noncontiguous properties and provides indirect benefit to properties not within the defined district.          Requested by: Susan Speckert, Commissioner of Law Lexington-Fayette Urban County Government          Written by: Carmine G. Iaccarino Olivia F. Amlung Assistant Attorneys General          Syllabus: Under KRS 91.752, the Lexington-Fayette Urban County Government may establish an industry-specific “hotel district” comprised of noncontiguous properties even if the district may provide indirect benefit to properties not within the defined district.          Opinion of the Attorney General          By statute, urban-county governments may establish “management districts . . . for the purpose of providing and financing economic improvements that specially benefit property within the management district.” KRS 91.752. Expecting that VisitLex1 may petition to establish a particular management district under this authority, the Lexington-Fayette Urban County Government asks whether, under KRS 91.752, it may establish an industry-specific management district. If so, the Lexington-Fayette Urban County Government would consider a petition to establish a management district for the sole benefit of hotels within a certain defined area even though some of those properties may not be contiguous to each other and indirect benefit might inure to other properties not within the defined district. For the reasons below, it is the Attorney General’s opinion that an industry-specific management district, like the one described here, is permissible under KRS 91.750 through KRS 91.762.          First, the “general rule” is “that special assessments against property will not be upheld unless there is benefit to the property.” Louisville Mem’l Gardens, Inc. v. Carpenter, 261 S.W.2d 627, 628 (Ky. App. 1953)...

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