Kentucky Statutes 56.590 – Construction, financing by state of public buildings and improvements in capital city — Methods of financing — Title to real estate
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(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.
Effective: June 17, 1978
History: Created 1978 Ky. Acts ch. 120, sec. 1, effectiveJune 17, 1978.
(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.
Terms Used In Kentucky Statutes 56.590
- Building: includes any structure or improvement upon real estate of a permanent nature and additionally includes any sites, structures, equipment, machinery, or devices for the purpose of establishing, developing, or furthering television or related services in aid of education or in aid of any other proper public functions, whether or not the same would otherwise be legally defined as buildings. See Kentucky Statutes 56.440
- Cabinet: means the Finance and Administration Cabinet. See Kentucky Statutes 56.440
- City: includes town. See Kentucky Statutes 446.010
- Commission: means the State Property and Buildings Commission. See Kentucky Statutes 56.440
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Corporation: may extend and be applied to any corporation, company, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Fee simple: Absolute title to property with no limitations or restrictions regarding the person who may inherit it.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes both general and limited partnerships. See Kentucky Statutes 446.010
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- written: shall mean letters, words, or numbers, or their equivalent, set down by handwriting, typewriting, printing, photostating, photographing, magnetic impulse, mechanical or electronic recording, or other form of data compilation. See Kentucky Statutes 56.440
(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.
Effective: June 17, 1978
History: Created 1978 Ky. Acts ch. 120, sec. 1, effectiveJune 17, 1978.