(a) The Director of the Arkansas Economic Development Commission or designee of the director will review each application, making certain the project proposal meets the following minimum criteria:

1. (1) The application shall be submitted prior to incurring any project cost other than those costs defined as preconstruction costs;

2. (2) The project shall:

   1. (A) Have a marketing plan designed to attract at least twenty-five percent (25%) of its visitors from out of state;
   2. (B) Have costs in excess of the amounts specified in Arkansas Code § 15-11-503(4);
   3. (C) Have a significant and positive impact on the state, including an analysis of whether the project will compete directly with existing tourism attractions in the state;
   4. (D) Produce sufficient revenues and public demand to be operating and open to the public on a regular and persistent basis;
   5. (E) Be likely to attract overnight guests from outside the state who would stay in commercial lodging near the attractions; and
   6. (F) Not adversely affect the existing employment in the state;
3. (3) The Secretary of the Department of Parks, Heritage, and Tourism shall have determined that a proposed project to be located within a Natural State Initiative Opportunity Zone is consistent with the existing character of the state park within which, or adjacent to which, the project is located; and
4. (4) Other criteria that the director may deem to apply.

(c)

1. (1) Upon granting approval, the director shall enter into a financial incentive agreement with an approved company with respect to its tourism attraction project.

2. (2) The terms and provisions of each financial incentive agreement shall include, but shall not be limited to:

   1. (A) The amount of approved costs, determined through negotiations with the director and applicant;
   2. (B) The eligibility date for incurring project costs;
   3. (C)

(i) A date by which the approved company shall have completed the tourism attraction project (the completion date), provided that the completion date occurs within two (2) years of the date of the financial incentive agreement unless an extension is granted.

1. (ii) Within three (3) months after the completion date, the approved company shall document the actual cost of the project through a certification of such costs by an independent certified public accountant acceptable to the director;

   1. (D) Provisions that the term of the financial incentive agreement may be extended for a period of two (2) years by the director if:

      1. (i) Such extension is also approved by the Secretary of the Department of Finance and Administration; and
      2. (ii) The approved company has failed to complete the project as a result of unanticipated and unavoidable construction delays or a change in business ownership;
   2. (E) In any sales tax reporting period during which a financial incentive agreement is in effect, if the increased state sales tax liability of the approved company exceeds the state sales tax credit available to the approved company, then the approved company shall pay the excess to the state as sales tax;
   3. (F) Within forty-five (45) days after the end of each calendar year, the approved company shall supply the director with such reports and certifications as the director may request demonstrating to the satisfaction of the director that the approved company is in compliance with the provisions of the Arkansas Tourism Development Act, Arkansas Code § 15-11-501 et seq.;
   4. (G) The approved company shall not receive a credit against the Arkansas sales tax imposed by Arkansas Code § 26-52-301 et seq., with respect to any calendar year if in any calendar year following the first year of the financial incentive agreement or the agreed upon completion date, the project is not operating and open to the public on a regular and persistent basis;
   5. (H) The financial incentive agreement shall not be transferable or assignable by the approved company without the written consent of the director; and

   6. (I) If the approved company utilizes sales tax credits which are subsequently disallowed, then the approved company will be liable for the payment to the Secretary of the Department of Finance and Administration of all taxes resulting from the disallowance of the credits plus applicable penalties and interest.

      1. (d)
2. (1) The Arkansas Economic Development Commission’s approval of any application is for content only.

3. (2)

   1. (A) It does not constitute approval of all items listed on the application or the project plan.
   2. (B) These items will be reviewed and either approved or ruled ineligible upon an audit by the Revenue Division of the Department of Finance and Administration.