(1) As used in this section:
(a) "Existing development area" means a development area established by a county containing a city of the first class or by a city of the first class prior to March 23, 2007, that is subject to the provisions of a grant contract, Interlocal Cooperation Agreement, or Master Agreement executed prior to March 23, 2007; and (b) "New development area" means a development area that is created within an existing development area.
(2) The provisions of KRS 65.490 to 65.499 shall apply only to:
(a) Existing development areas; and (b) New development areas, provided that:
1. The project for the existing development area is amended to remove the new development area from the existing development area;
2. All contracts regarding the application of increment derived from the new development area require not less than ten percent (10%) of the increment be paid to the agency for which the existing development area was established;
3. Notwithstanding KRS 65.495 to the contrary, the payment to the agency under subparagraph 2. of this paragraph shall not be taken into account in determining whether thresholds within the contract have been met; and 4. The amendment of the project for an existing development area is approved by:
a.
i. The county containing a city of the first class; or ii. The city of the first class; in which the existing development area is located;
b. The state;
c. The agency for which the existing development area was established; and d. If applicable, the insurer of any bonds issued for the benefit of the agency for which the existing development area was established.