KRS 56.515: Leaseback agreement for fairgrounds improvements.

(1) When the cabinet finds that the purposes of the State Fair Board and the public

purposes of the Commonwealth would be promoted by the construction of buildings

and improvements on land in the custody of the State Fair Board as defined in KRS

247.140(1)(a), it may, in addition to any other method prescribed by law, authorize

the construction of such buildings and improvements by private capital under a

conveyance and leaseback agreement authorized by subsection (2) of this section, or

under a mortgage agreement authorized by subsection (3) of this section.

(2) The cabinet may convey the fee interest in any of the land described in subsection

(1) of this section to a private individual, corporation, or partnership to which such

land has been or will be leased, subject to a written agreement by such individual,

corporation, or partnership to construct such buildings and improvements and to

reconvey the fee interest to the Commonwealth subject to a mortgage placed on the

fee interest by such individual, corporati on, or partnership for the purpose of

securing private financing for the construction of such buildings and improvements;

provided, however, that such mortgage shall not constitute a general obligation or

debt of the Commonwealth and that the Commonwealth may, in the event of

default, redeem the mortgage if it so elects.

(3) The cabinet may agree that a private individual, corporation, or partnership to which

any of the land described in subsection (1) of this section has been leased may, in

order to secure private financing for the construction of such buildings and

improvements, have the right to grant against its leasehold interest a first mortgage

lien in an amount sufficient to pay fully the costs of the construction of such

buildings and improvements, to which all rights of the Commonwealth shall be

subordinate and inferior; provided, however, that such first mortgage lien shall not

constitute a general debt or obligation of the Commonwealth.

(4) Any agreement made under this section shall be made only with the written consent

of the State Fair Board and the State Property and Buildings Commission and shall

be signed in the name of the Commonwealth by the secretary of the Finance and

Administration Cabinet and the Governor and shall be lodged for record in the

Office of the Secretary of State.