91A.180 Sale or lease of property -- Private improvements of governmentally
402 words·~2 min read·
/ky/91a-180A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
owned realty under a conveyance and leaseback agreement.
(1)The legislative body of any city or urban-county government may sell or lease
property, including any interest in real property, of the city or urban-county
government which is not needed or has become unsuitable for public use by the city
or urban-county government, or which property would be more suitably consistent
with the public interest for some other use of a public nature.
(2)When the legislative body of a city or urban-county government finds that the
purposes of one
(1)or more of its departments and the public purposes of the
Commonwealth would be promoted by the construction of buildings and
improvements on land owned by the city or urban-county government, it may
authorize the construction of such buildings and improvements by private
entrepreneurs with private capital under a conveyance and leaseback agreement
authorized by subsection
(3)of this section.
(3)The legislative body of a city or urban-county government may, subsequent to a
finding made pursuant to subsection
(2)of this section, convey the fee interest in the
particular real property to a private individual, corporation or partnership, subject to
a written agreement by such private entrepreneur to construct such buildings and
improvements on the fee simple holding and then subsequently, after placing a
mortgage necessary to fund the capital improvements on the fee interest by the
private entrepreneur, reconvey the fee title back to the city or urban-county
government. The city or urban-county government shall in turn execute a long term
lease on the real property back to the private entrepreneur. Under such conveyances
the mortgage shall not constitute a general obligation or debt of the city or urban-
county government. The city or urban-county government may, in event of default,
redeem the mortgage if it so elects. In such a leaseback arrangement, with suitable
rentals, the actual operation of such constructed facilities shall be conducted solely
by the entrepreneur or his agent, but the operation will be considered a public
purpose and public use of the property. However, the city or urban-county
government and the lessee shall agree that, and with adequate insurance, the city or
urban-county government shall be held harmless in connection with property loss
and general liability for injuries or death suffered on the property. Under the
leaseback agreements the facility will not be considered a governmental facility or
function of the city or urban-county government.