56.813 Request for additional space -- Improvements in premises -- Use of funds to
748 words·~3 min read·
/ky/56-813A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
improve leased building that state will own at end of lease term -- Amendment
or modification of leases -- Emergency modification -- Register of proposed
lease modifications.
(1)An agency may request that the Finance and Administration Cabinet provide
additional space in a building in which space is already leased by the state. If the
cabinet determines there is need for more space, the current lease may be amended,
with agreement of the lessor, to increase the leased space. However, the rental rate
paid for the additional space shall not exceed the square foot rental rate fixed by the
original lease. A lease may also be modified with agreement of the lessor to
decrease the number of square feet leased and the rent shall be appropriately
reduced.
(a)1. When an agency occupying leased premises desires improvements in the
premises, the agency shall obtain the cabinet secretary's approval for the
improvements at an estimated cost before the lessor makes the
improvements.
2. If the improvements cost more than ten thousand dollars ($10,000), the
agency shall obtain the cabinet secretary's approval for the rent increase
necessary to amortize the cost of the improvements in full over the life
of the lease. No other financing method shall be used.
3. a. If the improvements cost ten thousand dollars ($10,000) or less,
the agency shall obtain the cabinet secretary's approval for the
dollar amount necessary to pay for the cost of the improvements at
direct state expense or the rent increase necessary to amortize the
cost of the improvements in full over a period of time which shall
run no longer that the life of the lease. No other financing method
shall be used. No improvement shall be artificially divided so as to
qualify under the provisions of this subparagraph.
b. Any improvements approved under this subparagraph with a cost
between one thousand dollars ($1,000) and ten thousand dollars
($10,000) shall be reported semiannually by the Finance and
Administration Cabinet to the Capital Projects and Bond Oversight
Committee established by KRS 45.790. The report shall include,
for each project, the agency for which the improvement was made,
the cost, a description of the work performed, and the property
identification number.
(b)Any rent increase necessary to amortize a cost pursuant to paragraph
(a)of
this subsection shall not extend beyond the period required to accomplish the
agreed amortization.
(c)The cabinet secretary shall amend a lease to reflect a rent increase necessary to
amortize a cost pursuant to paragraphs
(a)and
(b)of this subsection, and the
amendment shall state that the rent increase is for the purpose of amortizing
this cost.
(d)For any building leased by a state agency that the state will own upon
termination of the lease or expiration of the lease term, and for which no
modification of the lease may be made to amortize improvements to the
property, the cabinet may use funds provided by state agencies to improve,
renovate, or refit the building to better satisfy the needs of the agencies
occupying the leased property up to six hundred thousand dollars ($600,000)
without additional approval of the General Assembly.
(3)Any modification to an existing lease which is required because of an emergency as
described at KRS 56.805(3) shall be made pursuant to KRS 56.805(3) and
(4)and
this section.
(4)The Division of Real Properties, within the Department for Facilities and Support
Services, shall maintain a register of all proposed lease modifications which, if
approved, will result in the payment of a square foot rate for the leased space which
is greater than the square foot rate contained in the original lease. All such proposed
modifications shall be filed and kept in the register for public inspection and
comment for thirty
(30)calendar days. Comments received from the public during
the period shall be considered before the lease modification is executed by the
parties and becomes binding against the Commonwealth. After receiving
comments, if the secretary determines that the proposed modifications are not in the
interest of the Commonwealth, he or she may require the agency to continue
operation in its present space or cancel the lease and seek more suitable space. The
lessor, under any lease proposed to be modified as contemplated therein, shall be
advised of the requirements of this subsection and cautioned that the
Commonwealth shall have no liability for any action undertaken by the lessor in
anticipation of, but prior to execution of, the modifications of the lease.