56.515 Leaseback agreement for fairgrounds improvements.
384 words·~2 min read·
/ky/chapter-56/56-515A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)When the cabinet finds that the purposes of the State Fair Board and the public
purposes of the Commonwealth would be promoted by the construction of buildings
and improvements on land in the custody of the State Fair Board as defined in KRS
247.140(1)(a), it may, in addition to any other method prescribed by law, authorize
the construction of such buildings and improvements by private capital under a
conveyance and leaseback agreement authorized by subsection
(2)of this section, or
under a mortgage agreement authorized by subsection
(3)of this section.
(2)The cabinet may convey the fee interest in any of the land described in subsection
(1)of this section to a private individual, corporation, or partnership to which such
land has been or will be leased, subject to a written agreement by such individual,
corporation, or partnership to construct such buildings and improvements and to
reconvey the fee interest to the Commonwealth subject to a mortgage placed on the
fee interest by such individual, corporation, or partnership for the purpose of
securing private financing for the construction of such buildings and improvements;
provided, however, that such mortgage shall not constitute a general obligation or
debt of the Commonwealth and that the Commonwealth may, in the event of
default, redeem the mortgage if it so elects.
(3)The cabinet may agree that a private individual, corporation, or partnership to which
any of the land described in subsection
(1)of this section has been leased may, in
order to secure private financing for the construction of such buildings and
improvements, have the right to grant against its leasehold interest a first mortgage
lien in an amount sufficient to pay fully the costs of the construction of such
buildings and improvements, to which all rights of the Commonwealth shall be
subordinate and inferior; provided, however, that such first mortgage lien shall not
constitute a general debt or obligation of the Commonwealth.
(4)Any agreement made under this section shall be made only with the written consent
of the State Fair Board and 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.