2014 Kentucky Revised Statutes
CHAPTER 56 - STATE LANDS AND BUILDINGS
56.820 Construction on state-owned land under built-to-suit lease agreements -- Leases without conveyance of title -- Buildings located in Fayette County.
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<![CDATA[56.820
Construction on state-owned land under built-to-suit lease
agreements -- Leases without conveyance of title -- Buildings located in
Fayette County.
(1)
(2)
(3)
(4)
This section shall apply when the built-to-suit process involves the construction
of a building on state-owned land.
Upon the execution of a lease awarded under this section, the Commonwealth
shall convey to the individual or firm to whom such lease has been awarded, in
fee simple with covenant of general warranty of title, the real estate upon which
the building is to be constructed under this lease. The lease shall provide for an
initial lease term commencing on the date the building is accepted for
occupancy by the Commonwealth, but not later than thirty (30) days after the
owner's architect has certified that construction of the building has been
completed, and ending June 30 of the second year of the then current fiscal
biennium of the Commonwealth, with an option in the Commonwealth, as
lessee, to extend the term of the lease for a term of two (2) years from the
expiration of the original term of the lease and for two (2) years from the
expiration of each extended term of the lease, until the original term of the
lease has been extended for a total number of years to be agreed upon by the
parties at a rental which, if paid for the original term and for each of the full
number of years for which the term of the lease may be extended, will amortize
the total cost of the erection of the building and appurtenances. The rent shall
be paid at such times as the parties to the lease agreed upon. The lease shall
provide that the lessee may, at the expiration of the original or any extended
term, purchase the leased premises at a stated price, which shall be the
balance of the total cost of erection of the building and appurtenances not
amortized by the payments of rent previously made by the lessee. The lease
shall provide that in the event of the exercise of the option to purchase the
leased premises or in the event the lease has been extended for the full
number of years which it is agreed the same may be extended, and all rents
and payments provided for in the lease have been made, the lessor shall
convey the premises to the lessee in fee simple with covenant of general
warranty of title. The lease may provide that the lessee shall, as additional rent
for the leased premises, pay all taxes assessed against the leased premises,
and the cost of insuring the building erected thereon against loss or damage by
fire and windstorm in such sum as may be agreed by the parties thereto.
For buildings located in Fayette County, the commissioner of the Department
for Facilities Management on behalf of the Department for Military Affairs may
award a built-to-suit lease for built-to-suit projects without the conveyance of
title required in subsection (2) of this section. Any lease agreement under this
subsection shall be awarded in accordance with the provisions of KRS Chapter
45A. The provisions of KRS 56.8163, 56.8165, 56.8167, 56.8169, 56.8171, and
56.8173 shall not apply to built-to-suit leases awarded under this subsection.
Any lease agreement established under this subsection shall provide that title
to all improvements shall vest in the Commonwealth upon completion of the
term of the lease.
For buildings located in Fayette County procured pursuant to this section and
leased from the Commonwealth by an agency of the federal government, the
following provisions shall apply:
(a) Notwithstanding KRS 56.813(2) to the contrary, the secretary of the
Finance and Administration Cabinet, on behalf of the Department of
Military Affairs, may approve modifications to existing buildings if the
source of the payments by the Department of Military Affairs for the
improvements are made through an agreement with an agency of the
United States government, or through an increase in the term of the
lease, provided that the improvements are procured by the Department of
Military Affairs pursuant to the provisions of KRS Chapter 45A; and
(b) Any lease modification approved by the secretary of the Finance and
Administration Cabinet pursuant to this subsection shall be reported by
the cabinet to the Legislative Research Commission for referral to an
appropriate legislative committee within thirty (30) days of the execution
of the lease modification.
Effective:April 2, 2014
History: Amended 2014 Ky. Acts ch. 15, sec. 2, effective April 2, 2014. -- Amended
2013 Ky. Acts ch. 32, sec. 158, effective March 19, 2013. -- Amended 1992 Ky.
Acts ch. 54, sec. 9, effective July 14, 1992. -- Created 1978 Ky. Acts ch. 231,
sec. 11, effective June 17, 1978.
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