{"data":{"id":"us-ky/krs-56.590","jurisdiction":"us-ky","citation":"KRS 56.590","heading":"Construction, financing by state of public buildings and improvements in","body":"capital city -- Methods of financing -- Title to real estate.\n(1) When the cabinet finds that the general welfare of the State Capitol and its environs\nand the public purposes of the Commonwealth would be promoted by the\nconstruction of buildings and improvements on land owned by the Commonwealth\nin the vicinity of and complimentary to the Capital Plaza in the capital city, it may,\nin addition to any other methods prescribed by law , authorize the construction of\nsuch buildings and improvements as provided in this section.\n(2) The costs of constructing buildings and improvements determined to be needed by\nthe cabinet under this section may be paid in whole or in part (a) out of funds\nspecifically appropriated for the construction of such buildings and improvements,\nor (b) out of funds derived or which may be derived from the issuance and sale of\nrevenue bonds as authorized by this chapter or by KRS Chapter 58, or (c) by private\ncapital under a conveyance and leaseback agreement as authorized by this section,\nor (d) by any combination of said methods.\n(3) When the cabinet authorizes the construction of buildings and improvements under\nthis section, the costs of which are proposed to be financed wholly by private capital\nunder a conveyance and leaseback agreement, or partly by private capital in\ncombination with any other method authorized by subsection (2) of this section, the\ncabinet, acting for and on behalf of the Commonwealth, may co nvey the fee simple\nor any lesser interest in, including air rights above, any land owned by the\nCommonwealth in the vicinity of the Capital Plaza to any person, corporation, or\npartnership, to which such land or any interest therein has been or will be le ased,\nsubject to a written agreement by such person, corporation, or partnership to\nconstruct such buildings and improvements thereon and to reconvey such land to\nthe Commonwealth subject to a mortgage placed on the land or interest therein by\nthe person, corporation or partnership, for the purpose of securing private financing\nof all or a part of the costs of construction of such buildings and improvements, and\nfor the leaseback to such person, corporation or partnership of such land, buildings\nand improvements.  Any mortgage placed on the land under this subsection shall\nnot constitute a general obligation or debt of the Commonwealth but the\nCommonwealth may, in the event of default, redeem the mortgage if it so elects.\n(4) The cabinet may divide any build ing or improvement project authorized under this\nsection into two (2) or more parts or units for purposes of financing the costs of\nconstruction of each such part or unit and may agree that the Commonwealth's\ninterest in any part or unit of such project co nveyed to any person, corporation or\npartnership, and reconveyed to the Commonwealth subject to a mortgage as\nauthorized by subsection (3) of this section may be subordinate and inferior to such\nmortgage, provided, however, that such mortgage shall not con stitute a general\nobligation or debt of the Commonwealth, and the Commonwealth may, in the event\nof default, redeem the mortgage if it so elects.\n(5) Any agreements made under this section shall be made only with the written\nconsent of the State Property a nd Buildings Commission and shall be signed in the\nname of the Commonwealth by the secretary of the Finance and Administration\nCabinet and the Governor and shall be lodged for record in the office of the\nSecretary of State.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=22663","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:11Z","sha256":"1debbe0872a9875915e449cfae43f9e4f63b17e7f15224e340ec8138096e5427","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.580","next":"us-ky/krs-56.600"},"notice":"GroundRules: Original legal text. Not legal advice."}