91A.180 Sale or lease of property -- Private improvements of governmentally owned realty under a conveyance and leaseback agreement. - Kentucky Statutes

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91A.180 Sale or lease of property -- Private improvements of governmentally owned realty under a conveyance and leaseback agreement. (1) The legislative body of any city of the first or second class or urban-county government may sell or lease property, including any interest in real property, of the
city of the first or second class or urban-county government which is not needed or
has become unsuitable for public use by the city of the first or second class or
urban-county government, or which property would be more suitably consistent
with the public interest for some other use of a public nature. (2) When the legislative body of a city of the first or second class or urban-county government finds that the purposes of one (1) or more of its departments and the
public purposes of the Commonwealth would be promoted by the construction of
buildings and improvements on land owned by the city of the first or second class or
urban-county government, it may authorize the construction of such buildings and
improvements by private entrepreneurs with private capital under a conveyance and
leaseback agreement authorized by subsection (3) of this section. (3) The legislative body of a city of the first or second class or urban-county government may, subsequent to a finding made pursuant to subsection (2) of this
section, convey the fee interest in the particular real property to a private individual,
corporation or partnership, subject to a written agreement by such private
entrepreneur to construct such buildings and improvements on the fee simple
holding and then subsequently, after placing a mortgage necessary to fund the
capital improvements on the fee interest by the private entrepreneur, reconvey the
fee title back to the city of the first or second class or urban-county government.
The city of the first or second class or urban-county government shall in turn
execute a long term lease on the real property back to the private entrepreneur.
Under such conveyances the mortgage shall not constitute a general obligation or
debt of the city of the first or second class or urban-county government. The city of
the first or second class or urban-county government may, in event of default,
redeem the mortgage if it so elects. In such a leaseback arrangement, with suitable
rentals, the actual operation of such constructed facilities shall be conducted solely
by the entrepreneur or his agent, but the operation will be considered a public
purpose and public use of the property. However, the city of the first or second
class or urban-county government and the lessee shall agree that, and with adequate
insurance, the city of the first or second class or urban-county government shall be
held harmless in connection with property loss and general liability for injuries or
death suffered on the property. Under the leaseback agreements the facility will not
be considered a governmental facility or function of the city of the first or second
class or urban-county government. History: Created 1982 Ky. Acts ch. 96, sec. 1, effective July 15, 1982.