KRS § 56.590 — KY Code / Title VII / Chapter 56 / Section 56.590
56.590 Construction, financing by state of public buildings and improvements in capital city -- Methods of financing -- Title to real estate
Status: in_force

56.590 Construction, financing by state of public buildings and improvements in

capital city -- Methods of financing -- Title to real estate.

(1) When the cabinet finds that the general welfare of the State Capitol and its environs

and the public purposes of the Commonwealth would be promoted by the

construction of buildings and improvements on land owned by the Commonwealth

in the vicinity of and complimentary to the Capital Plaza in the capital city, it may,

in addition to any other methods prescribed by law, authorize the construction of

such buildings and improvements as provided in this section.

(2) The costs of constructing buildings and improvements determined to be needed by

the cabinet under this section may be paid in whole or in part (a) out of funds

specifically appropriated for the construction of such buildings and improvements,

or (b) out of funds derived or which may be derived from the issuance and sale of

revenue bonds as authorized by this chapter or by KRS Chapter 58, or (c) by private

capital under a conveyance and leaseback agreement as authorized by this section,

or (d) by any combination of said methods.

(3) When the cabinet authorizes the construction of buildings and improvements under

this section, the costs of which are proposed to be financed wholly by private capital

under a conveyance and leaseback agreement, or partly by private capital in

combination with any other method authorized by subsection (2) of this section, the

cabinet, acting for and on behalf of the Commonwealth, may convey the fee simple

or any lesser interest in, including air rights above, any land owned by the

Commonwealth in the vicinity of the Capital Plaza to any person, corporation, or

partnership, to which such land or any interest therein has been or will be leased,

subject to a written agreement by such person, corporation, or partnership to

construct such buildings and improvements thereon and to reconvey such land to

the Commonwealth subject to a mortgage placed on the land or interest therein by

the person, corporation or partnership, for the purpose of securing private financing

of all or a part of the costs of construction of such buildings and improvements, and

for the leaseback to such person, corporation or partnership of such land, buildings

and improvements. Any mortgage placed on the land under this subsection shall

not constitute a general obligation or debt of the Commonwealth but the

Commonwealth may, in the event of default, redeem the mortgage if it so elects.

(4) The cabinet may divide any building or improvement project authorized under this

section into two (2) or more parts or units for purposes of financing the costs of

construction of each such part or unit and may agree that the Commonwealth's

interest in any part or unit of such project conveyed to any person, corporation or

partnership, and reconveyed to the Commonwealth subject to a mortgage as

authorized by subsection (3) of this section may be subordinate and inferior to such

mortgage, provided, however, that such mortgage shall not constitute a general

obligation or debt of the Commonwealth, and the Commonwealth may, in the event

of default, redeem the mortgage if it so elects.

(5) Any agreements made under this section shall be made only with the written

consent of the State Property and Buildings Commission and shall be signed in the

name of the Commonwealth by the secretary of the Finance and Administration

Cabinet and the Governor and shall be lodged for record in the office of the

Secretary of State.