KRS 154.32-060: Rehabilitation, replacement, or expansion of existing facilities --

Criteria for approval as economic development project.

(1) The authority shall not approve an economic development project that otherwise

meets the requirements of this su bchapter if the economic development project will

result in the replacement of facilities existing in the state, except as provided in this

section.

(2) The authority may approve an economic development project that:

(a) Rehabilitates an existing facility used for activities of an eligible company, if:

1. The facility has not been in operation for a period of ninety (90) or more

consecutive days; or

2. a. The current occupant of the facility has advertised a notice of

closure; and

b. The eligible company pr oposing the economic development

project is not an affiliate of the current occupant of the facility; or

3. a. The facility is sold or transferred pursuant to a foreclosure ordered

by a court of competent jurisdiction or an order of a bankruptcy

court of competent jurisdiction; and

b. The title to the facility prior to the sale is not vested in the eligible

company or an affiliate of the eligible company; or

4. The existing facility is rehabilitated to enable a business to produce vital

medications, personal protective equipment, or equipment necessary to

produce personal protective equipment;

(b) Replaces an existing facility of an eligible company if:

1. a. Title to the facility:

i. Is held by exercise of the power of eminent domain; or

ii. May be taken pursuant to a nonappealable judgment

granting authority to exercise the power of eminent

domain; and

b. Normal operations at the facility cannot be resumed within twelve

(12) months; or

2. The facility has been damaged or destroyed by fire or other casualty to

the extent that normal operations cannot be resumed at the facility

within twelve (12) months; or

3. The existing facility is replaced to enable a business to produce vital

medications, personal protective equipment, or equipment necessary to

produce personal protective equipment; or

(c) Replaces an existing facility located in the same county if the existing facility

cannot be expanded due to the unavailability of real estate at or adjacent to the

facility to be replaced. Any economic developm ent project satisfying the

requirements of this paragraph shall be eligible for incentives under this

subchapter only to the extent of the expansion. No incentives shall be

available for the equivalent of the facility to be replaced or rehabilitated.

(3) The authority shall not approve an economic development project under this section

which results in a lease abandonment or lease termination by the approved company

without the consent of the lessor.