{"data":{"id":"us-ky/krs-56.510","jurisdiction":"us-ky","citation":"KRS 56.510","heading":"Payments of costs -- Conveyance of title of industrial development,","body":"headquarters, or nonretail service and technology project -- Acquisition of\npublic project by state -- Lease agreement or financing agreements.\n(1) In carrying out the purposes of this chapter, and in providing for the expenditure of\nfunds for the acquisition of real estate or for a building project for the state or for\nany state agency, the cabinet may find that the cost may be paid in whole or in part:\n(a) Out of the funds appropriated specifically for capital outlay purposes;\n(b) Out of funds directly appropriated to the involved state agency which may\nlegally be available for the purpose;\n(c) Out of funds derived or which may be derived by the issuance and sale of\nrevenue bond s by the commission (but only for the purpose of acquiring\nproperty for use by the state government or one of its departments or agencies,\nbut not including any independent municipal corporation or political\nsubdivision); or\n(d) By any one (1) or a combina tion of said methods of financing. Any such\nfindings providing for the issuance and sale of bonds shall be submitted to the\ncommission for final determination. When any funds appropriated to or\nstanding to the credit of a particular state agency are to be used for a purpose\nof the character above contemplated, the head of the agency may direct that\nthe funds be transferred to the credit of the Finance and Administration\nCabinet and made available for expenditure by the Finance and\nAdministration Cabinet for  the agreed purpose. Industrial development,\nheadquarters, or nonretail service and technology projects may be financed by\nthe issuance of revenue bonds of the commission only at the request of the\nCabinet for Economic Development, subject to the provision s of subsection\n(3) of this section.\n(2) In any case where the expenditures for the acquisition of real estate or for a building\nproject for the state or any state agency are to be financed in whole or in part by the\nissuance or sale of revenue bonds, the commission may provide that the title to any\nreal estate which may be so acquired shall not vest in the Commonwealth until the\nrevenue bonds, together with interest thereon, have been paid in full. In such cases\nthe commission may, by agreement or in a tru st indenture securing the payment of\nsuch revenue bonds, provide that the title of such real estate may be vested in some\nother state agency, or in a trustee named in such indenture, until the revenue bonds,\ntogether with the interest thereon, have been pa id in full. It shall be provided in any\nsuch financing:\n(a) That upon the retirement and discharge of the bonds, notes, or other\nobligations issued by the commission at the direction of and on behalf of a\nstate agency, title to the public project or public projects so acquired shall vest\nin the Commonwealth;\n(b) That in the event of default with respect to such bonds, notes, or other\nobligations, the Commonwealth shall have the exclusive option to acquire the\npublic project or public projects for the amount  required to discharge such\nbonds, notes, or other obligations, and is provided a reasonable time to\nexercise such option;\n(c) That the issuance of such bonds, notes, or other obligations shall be directed\nby and approved by such state agency not more than  sixty (60) days prior to\nthe date of issue of such obligations; and\n(d) That no bonds, notes, or other obligations shall be issued by the commission\nfor and on behalf of such state agency except upon express direction of such\nstate agency.\n(3) (a) In any case where the expenditures for the acquisition, installation and\nconstruction of an industrial development, headquarters, or nonretail service\nand technology project will be financed in whole or in part by the issuance or\nsale of revenue bonds, the commis sion may provide that the title to the\nindustrial development, headquarters, or nonretail service and technology\nproject which may be so acquired shall be conveyed to the entity which will\noccupy and utilize the industrial development, headquarters, or non retail\nservice and technology project; provided, however, that such conveyance shall\nonly be made if:\n1. The subject entity agrees in writing prior to the issuance of any revenue\nbonds to construct and acquire in connection with the industrial\ndevelopment, headquarters, or nonretail service and technology project\nfacilities satisfactory to the commission;\n2. The commission makes a finding in writing, that, based upon diligent\ninvestigation, the aggregate incremental taxes to be received by the\nCommonwealth as a result of such project are reasonably expected, over\nthe life of the revenue bond issue, to be at le ast equal to the principal\namount of any revenue bonds issued to finance such project;\n3. The industrial development, headquarters, or nonretail service and\ntechnology project is separately approved in writing by the Governor;\n4. The industrial development , headquarters, or nonretail service and\ntechnology project is separately approved and authorized by the General\nAssembly; and\n5. Any revenue bond proceedings for the financing of an industrial\ndevelopment, headquarters, or nonretail service and technology  project\nprovide that in the event of any disposition by an entity of any such\nproject previously conveyed to such industrial, headquarters, or nonretail\nservice and technology entity prior to the collection by the\nCommonwealth of incremental taxes in the amount specified in\nsubparagraph 2. of this paragraph, the subject industrial, headquarters, or\nnonretail service and technology entity shall pay to the Commonwealth\nan amount equal to the difference between the aggregate incremental\ntaxes collected by the Commonwealth to such date of disposition and the\nprincipal amount of such revenue bonds;\n(b) As an alternate to the initial conveyance of an industrial development,\nheadquarters, or nonretail service and technology project to an entity, such\nproject may b e leased to such entity upon such terms as the commission and\nthe Cabinet for Economic Development shall determine to be proper, and in\nsuch case, subject to the provisions of subparagraphs 1., 2., and 3. of\nparagraph (a) of this subsection, provision may also be made for title to such\nproject to be conveyed to the subject entity at such time as the Commonwealth\nhas collected incremental taxes in respect of the project in an amount equal to\nthe principal amount of any revenue bonds issued to finance such in dustrial\ndevelopment, headquarters, or nonretail service and technology project;\n(c) It is hereby determined and declared as a legislative finding of fact that the\nprovisions and requirements of paragraphs (a) and (b) of this subsection\nprovide for the rec eipt by the Commonwealth of fair market value for any\nindustrial development, headquarters, or nonretail service and technology\nproject conveyed to an entity pursuant to this subsection; and\n(d) The Cabinet for Economic Development is authorized and empowe red to\ninitiate industrial development, headquarters, or nonretail service and\ntechnology projects and to finance such projects pursuant to the provisions of\nthis chapter. When revenue bonds are issued for the financing of any such\nproject, the Cabinet for Economic Development is authorized and empowered\nto enter into financing agreements or lease agreements with the commission\nproviding for the making of financing payments by the Cabinet for Economic\nDevelopment from appropriations made to the Cabinet for Economic\nDevelopment as, if and when received, for the amortization of revenue bonds\nso issued, provided that no such obligation shall be binding upon the Cabinet\nfor Economic Development for a period extending beyond the legislative\nbiennium during which such obligation is incurred, but such obligation may\nbe renewed during successive biennial periods by the Cabinet for Economic\nDevelopment. The issuance of any revenue bonds, notes or other obligations\nfor the financing of industrial development, headquart ers, or nonretail service\nand technology projects shall be directed by and approved by the Cabinet for\nEconomic Development not more than sixty (60) days prior to the date of the\nissue of such obligations, and no bonds, notes or other obligations shall be\nissued by the commission for and on behalf of the Cabinet for Economic\nDevelopment, except upon such express direction and upon compliance with\nthis subsection. Any portion of an industrial development, headquarters, or\nnonretail service and technology pro ject may be financed by a city or county\nof the Commonwealth in the same manner as a financing by the commission\nunder this section, KRS 56.513 and 56.514 or pursuant to the statutory\nauthority of such city or county. In such event, the Cabinet for Economi c\nDevelopment may enter into similar financing agreements or lease agreements\nwith such city or county in order to make proper provision for such financing.\n(4) The cabinet, in providing for the expenditure of funds for any of the purposes\nmentioned in this section, or the commission in providing for the issuance and sale\nof revenue bonds, shall have power to provide by agreement with the state agency\naffected, or by provision in the trust indenture securing the bonds, such terms and\nconditions as may be co nsidered appropriate and reasonable so as to permit either\nthe leasing to, and use by, any state agency of any building project or the\nconveyance or lease of any industrial, headquarters, or nonretail service and\ntechnology development project to any entit y, any such building project to be paid\nfor by such state agency either:\n(a) From its own appropriation;\n(b) By the issuance of revenue bonds; or\n(c) By means of a proposal to pay a rental for the use of all or any part of any\nbuilding proposed to be const ructed and any such industrial, headquarters, or\nnonretail service and technology development project to be paid for by the\nCabinet for Economic Development by the issuance of revenue bonds of the\ncommission, subject to the provisions of subsection (3) of this section, and\namortization of such revenue bonds by the Cabinet for Economic\nDevelopment.\nThe cabinet or the commission, in making any such lease agreement or financing\nagreement, or in making provision in any trust indenture securing revenue bonds, i s\nauthorized and empowered to lease all or any part of the facility financed for such\nterm and upon such conditions and for such considerations or enter into financing\nagreements with the Cabinet for Economic Development in respect of any industrial\ndevelopment, headquarters, or nonretail service and technology project as may\nappear to be in the public interest.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=48327","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:11Z","sha256":"cc8c382ae855dba061d8f842fd9c532762298b3d4b7d7efa6fb5bfff1fc37cc1","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.505","next":"us-ky/krs-56.513"},"notice":"GroundRules: Original legal text. Not legal advice."}