{"data":{"id":"us-ky/krs-56.820","jurisdiction":"us-ky","citation":"KRS 56.820","heading":"Construction on state -owned land under built -to-suit lease agreements --","body":"Leases without conveyance of title -- Buildings located in Fayette County.\n(1) This section shall apply when the built-to-suit process involves the construction of a\nbuilding on state-owned land.\n(2) Upon the execution of a lease awarded under this section, the Commonwealth shall\nconvey to the individual or firm to whom such lease has been awarded, in fee\nsimple with covenant of general warranty of title, the real estate upon which  the\nbuilding is to be constructed under this lease. The lease shall provide for an initial\nlease term commencing on the date the building is accepted for occupancy by the\nCommonwealth, but not later than thirty (30) days after the owner's architect has\ncertified that construction of the building has been completed, and ending June 30\nof the second year of the then current fiscal biennium of the Commonwealth, with\nan option in the Commonwealth, as lessee, to extend the term of the lease for a term\nof two (2) years from the expiration of the original term of the lease and for two (2)\nyears from the expiration of each extended term of the lease, until the original term\nof the lease has been extended for a total number of years to be agreed upon by the\nparties at a rental which, if paid for the original term and for each of the full number\nof years for which the term of the lease may be extended, will amortize the total\ncost of the erection of the building and appurtenances. The rent shall be paid at such\ntimes as the parties to the lease agreed upon. The lease shall provide that the lessee\nmay, at the expiration of the original or any extended term, purchase the leased\npremises at a stated price, which shall be the balance of the total cost of erection of\nthe bu ilding and appurtenances not amortized by the payments of rent previously\nmade by the lessee. The lease shall provide that in the event of the exercise of the\noption to purchase the leased premises or in the event the lease has been extended\nfor the full n umber of years which it is agreed the same may be extended, and all\nrents and payments provided for in the lease have been made, the lessor shall\nconvey the premises to the lessee in fee simple with covenant of general warranty of\ntitle. The lease may prov ide that the lessee shall, as additional rent for the leased\npremises, pay all taxes assessed against the leased premises, and the cost of insuring\nthe building erected thereon against loss or damage by fire and windstorm in such\nsum as may be agreed by the parties thereto.\n(3) For buildings located in Fayette County, the commissioner of the Department for\nFacilities Management on behalf of the Department for Military Affairs may award\na built-to-suit lease for built-to-suit projects without the conveyance of title required\nin subsection (2) of this section. Any lease agreement under this subsection shall be\nawarded in accordance with the provisions of KRS Chapter 45A. The provisions of\nKRS 56.8163, 56.8165, 56.8167, 56.8169, 56.8171, and 56.8173 shall not a pply to\nbuilt-to-suit leases awarded under this subsection. Any lease agreement established\nunder this subsection shall provide that title to all improvements shall vest in the\nCommonwealth upon completion of the term of the lease.\n(4) For buildings located in Fayette County procured pursuant to this section and leased\nfrom the Commonwealth by an agency of the federal government, the following\nprovisions shall apply:\n(a) Notwithstanding KRS 56.813(2) to the contrary, the secretary of the Finance\nand Administration Cabinet, on behalf of the Department of Military Affairs,\nmay approve modifications to existing buildings if the source of the payments\nby the Department of Military Affairs for the improvements are made through\nan agreement with an agency of the U nited States government, or through an\nincrease in the term of the lease, provided that the improvements are procured\nby the Department of Military Affairs pursuant to the provisions of KRS\nChapter 45A; and\n(b) Any lease modification approved by the secret ary of the Finance and\nAdministration Cabinet pursuant to this subsection shall be reported by the\ncabinet to the Legislative Research Commission for referral to an appropriate\nlegislative committee within thirty (30) days of the execution of the lease\nmodification.","path":["KRS Chapter 56"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=42948","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:12Z","sha256":"798939c489d8411186a6938b4c90991766074db177ad44c166b84af36d9b2502","source_id":"us-ky","stale":false,"prev":"us-ky/krs-56.819","next":"us-ky/krs-56.821"},"notice":"GroundRules: Original legal text. Not legal advice."}