KRS § 441.630 — KY Code / Title XL / Chapter 441 / Section 441.630
441.630 Contents of agreement between authority and local government -- Limits of authority's financial participation in projects
Status: in_force

441.630 Contents of agreement between authority and local government -- Limits

of authority's financial participation in projects.

If the authority deems it suitable, feasible, necessary, or expedient that any project or

projects be financed or refinanced and constructed by the authority, the authority may

make one (1) or more written agreements in which the parties may include provisions as

to any of the following:

(1) Identify the project to be financed by the authority, setting forth specifications and

design of the facilities to be constructed, reconstructed, improved, or repaired, and

any other information which is deemed necessary and proper for the development

of the project;

(2) Set forth what portions, if any, of the cost of the project have been or shall

thereafter be contributed by the authority from the funds and other resources

available to it during the then current biennium and not previously obligated. The

authority's contribution from its funds, excluding rentals received under leases

made by the authority and any contribution, grant, or gift made to the authority by a

local government, person, or entity other than the state, for the use and benefit of

the project, shall not exceed ninety percent (90%) of the cost;

(3) Set forth agreements for planning, design, acquisition of property, soliciting

construction bids, awarding construction contracts, issuing of work orders, and

other steps necessary or incidental to the construction of the project, and

authorizing and selling bonds for the project;

(4) Agree that upon completion of the project the lessee will continuously pay all of the

cost of repairing, maintaining, and operating the project;

(5) Agree that upon the happening of stated events and the performance of stated

conditions not inconsistent with law, the authority shall convey the project to the

lessee;

(6) Set forth the terms and provisions of lease or proposed conveyance to be entered

into by and between the authority and any local government, including the

requirement that all new jail construction projects receiving any authority funding

shall provide an agreed upon number of beds for state prisoners at a rate set by the

commissioner of the Department of Corrections but which in no case shall be less

than seventy-five percent (75%) of the actual daily cost of maintaining a prisoner;

(7) Agree that upon determination of the amount of bonds to be issued by the authority

for the project and the interest rate or rates the bonds are to bear, and prior to the

delivery of any bonds to the purchaser, the rental to be paid during the term of the

lease and each term for which the lease may be renewed shall be established

according to a method of computation set forth in the proposed lease, and that the

authority and lessee, each by authorized persons, shall execute the lease and file the

original or a signed counterpart in the office of the authority, and the Secretary of

State of the Commonwealth;

(8) Agree to establish any method of interim financing by the authority during the

construction of any project, with borrowed funds from any bank, trust company, or

banking institution, the funds to be amortized from money obtained through the sale

of revenue bonds before, during, or at completion of the construction of such

project or projects; and

(9) Agree to establish guidelines for the construction, reconstruction, improvement, or

repair of projects determined by the authority to qualify for grants from the

authority.