2013 Kentucky Revised Statutes CHAPTER 91A - FINANCE AND REVENUE OF CITIES 91A.180 Sale or lease of property -- Private improvements of governmentally owned realty under a conveyance and leaseback agreement.
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91A.180 Sale or lease of property -- Private improvements of governmentally
owned realty under a conveyance and leaseback agreement.
(1)
(2)
(3)
The legislative body of any city of the first or second class or urban-county
government may sell or lease property, including any interest in real property,
of the city of the first or second class or urban-county government which is not
needed or has become unsuitable for public use by the city of the first or
second class or urban-county government, or which property would be more
suitably consistent with the public interest for some other use of a public
nature.
When the legislative body of a city of the first or second class 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 of the
first or second class 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.
The legislative body of a city of the first or second class 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 of the first or second class or
urban-county government. The city of the first or second class 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 of the first or second class or
urban-county government. The city of the first or second class 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 of the first or second class or urban-county
government and the lessee shall agree that, and with adequate insurance, the
city of the first or second class 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 of the first
or second class or urban-county government.
History: Created 1982 Ky. Acts ch. 96, sec. 1, effective July 15, 1982.
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