2013 Kentucky Revised Statutes CHAPTER 56 - STATE LANDS AND BUILDINGS 56.813 Request for additional space -- Improvements in premises -- Amendment or modification of leases -- Emergency modification -- Register of proposed lease modifications.
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56.813 Request for additional space -- Improvements in premises -Amendment or modification of leases -- Emergency modification -Register of proposed lease modifications.
(1)
(2)
(3)
(4)
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) 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.
1.
If the improvements cost more than one thousand dollars ($1,000),
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.
2.
If the improvements cost one thousand dollars ($1,000) 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 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.
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.
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 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.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 81, effective June 20, 2005. -Amended 1994 Ky. Acts ch. 177, sec. 2, effective July 15, 1994. Amended
1992 Ky. Acts ch. 339, sec. 2, effective July 14, 1992. -- Created 1990 Ky. Acts
ch. 512, sec. 8, effective July 13, 1990.
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