56.813 Request for additional space -- Improvements in premises -- Amendment or modification of leases -- Emergency modification -- Register of proposed lease modifications. - Kentucky Statutes

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56.813 Request for additional space -- Improvements in premises -- Amendment or modification of leases -- Emergency modification -- Register of proposed lease
modifications. (1) An agency may request that the Finance and Administration Cabinet provide additional space in a building in which space is already leased by the state. If the
cabinet determines there is need for more space, the current lease may be amended,
with agreement of the lessor, to increase the leased space. However, the rental rate
paid for the additional space shall not exceed the square foot rental rate fixed by the
original lease. A lease may also be modified with agreement of the lessor to
decrease the number of square feet leased and the rent shall be appropriately
reduced. (2) (a) When an agency occupying leased premises desires improvements in the premises, the agency shall obtain the cabinet secretary's approval for the
improvements at an estimated cost before the lessor makes the improvements.
1. If the improvements cost more than one thousand dollars ($1,000), the
agency shall obtain the cabinet secretary's approval for the rent increase
necessary to amortize the cost of the improvements in full over the life
of the lease. No other financing method shall be used. 2. If the improvements cost one thousand dollars ($1,000) or less, the
agency shall obtain the cabinet secretary's approval for the dollar amount
necessary to pay for the cost of the improvements at direct state expense
or the rent increase necessary to amortize the cost of the improvements
in full over a period of time which shall run no longer that the life of the
lease. No other financing method shall be used. No improvement shall
be artificially divided so as to qualify under the provisions of this
subparagraph. (b) Any rent increase necessary to amortize a cost pursuant to paragraph (a) of this subsection shall not extend beyond the period required to accomplish the
agreed amortization. (c) The cabinet secretary shall amend a lease to reflect a rent increase necessary to amortize a cost pursuant to paragraphs (a) and (b) of this subsection, and the
amendment shall state that the rent increase is for the purpose of amortizing
this cost. (3) Any modification to an existing lease which is required because of an emergency as described at KRS 56.805(3) shall be made pursuant to KRS 56.805(3) and (4) and
this section. (4) The Division of Real Properties, within the Department for Facilities and Support Services, shall maintain a register of all proposed lease modifications which, if
approved, will result in the payment of a square foot rate for the leased space which
is greater than the square foot rate contained in the original lease. All such proposed
modifications shall be filed and kept in the register for public inspection and
comment for thirty (30) calendar days. Comments received from the public during
the period shall be considered before the lease modification is executed by the parties and becomes binding against the Commonwealth. After receiving
comments, if the secretary determines that the proposed modifications are not in the
interest of the Commonwealth, he may require the agency to continue operation in
its present space or cancel the lease and seek more suitable space. The lessor, under
any lease proposed to be modified as contemplated therein, shall be advised of the
requirements of this subsection and cautioned that the Commonwealth shall have no
liability for any action undertaken by the lessor in anticipation of, but prior to
execution of, the modifications of the lease. Effective: June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 81, effective June 20, 2005. -- Amended 1994 Ky. Acts ch. 177, sec. 2, effective July 15, 1994.