KRS 416.675: Public use required -- No condemnation for indirect benefit -- Exemption.

(1) Every grant of authority contained in the Kentucky Revised Statutes to exercise the

power of eminent domain shall be subject to the condition that the authority be

exercised only to effectuate a public use of the condemned property.

(2) "Public use" shall mean the following:

(a) Ownership of the property by the Commonwealth, a political subdivision of

the Commonwealth, or other governmental entity;

(b) The possession, occupation, or enjoyment of the property as a matter of right

by the Commonwealth, a political subdivision of the Commonwealth, or other

governmental entity;

(c) The acquisition and transfer of property for the purpose of eliminating

blighted areas, slum areas, or substandard and insanitary areas in accordance

with KRS Chapter 99;

(d) The u se of the property for the creation or operation of public utilities or

common carriers; or

(e) Other use of the property expressly authorized by statute.

(3) No provision in the law of the Commonwealth shall be construed to authorize the

condemnation of p rivate property for transfer to a private owner for the purpose of

economic development that benefits the general public only indirectly, such as by

increasing the tax base, tax revenues, or employment, or by promoting the general

economic health of the co mmunity. However, this provision shall not prohibit the

sale or lease of property to private entities that occupy an incidental area within a

public project or building, provided that no property may be condemned primarily

for the purpose of facilitating an incidental private use.

(4) The exercise of the power of eminent domain for the acquisition of property

financed by state road funds or federal highway funds shall be exempt from the

provisions of this section.