56.820 Construction on state-owned land under built-to-suit lease agreements. - Kentucky Statutes

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56.820 Construction on state-owned land under built-to-suit lease agreements. (1) This section shall apply when the built-to-suit process involves the construction of a building on state-owned land. (2) Upon the execution of a lease awarded under this section, the Commonwealth shall convey to the individual or firm to whom such lease has been awarded, in fee
simple with covenant of general warranty of title, the real estate upon which the
building is to be constructed under this lease. The lease shall provide for an initial
lease term commencing on the date the building is accepted for occupancy by the
Commonwealth, but not later than thirty (30) days after the owner's architect has
certified that construction of the building has been completed, and ending June 30
of the second year of the then current fiscal biennium of the Commonwealth, with
an option in the Commonwealth, as lessee, to extend the term of the lease for a term
of two (2) years from the expiration of the original term of the lease and for two (2)
years from the expiration of each extended term of the lease, until the original term
of the lease has been extended for a total number of years to be agreed upon by the
parties at a rental which, if paid for the original term and for each of the full number
of years for which the term of the lease may be extended, will amortize the total
cost of the erection of the building and appurtenances. The rent shall be paid at such
times as the parties to the lease agreed upon. The lease shall provide that the lessee
may, at the expiration of the original or any extended term, purchase the leased
premises at a stated price, which shall be the balance of the total cost of erection of
the building and appurtenances not amortized by the payments of rent previously
made by the lessee. The lease shall provide that in the event of the exercise of the
option to purchase the leased premises or in the event the lease has been extended
for the full number of years which it is agreed the same may be extended, and all
rents and payments provided for in the lease have been made, the lessor shall
convey the premises to the lessee in fee simple with covenant of general warranty of
title. The lease may provide that the lessee shall, as additional rent for the leased
premises, pay all taxes assessed against the leased premises, and the cost of insuring
the building erected thereon against loss or damage by fire and windstorm in such
sum as may be agreed by the parties thereto. Effective: July 14, 1992
History: Amended 1992 Ky. Acts ch. 54, sec. 9, effective July 14, 1992. -- Created 1978 Ky. Acts ch. 231, sec. 11, effective June 17, 1978.