<br><br>56.590 Construction, financing by state of public buildings and improvements in <br>capital city -- Methods of financing -- Title to real estate. <br>(1) When the cabinet finds that the general welfare of the State Capitol and its environs <br>and the public purposes of the Commonwealth would be promoted by the <br>construction of buildings and improvements on land owned by the Commonwealth <br>in the vicinity of and complimentary to the Capital Plaza in the capital city, it may, <br>in addition to any other methods prescribed by law, authorize the construction of <br>such buildings and improvements as provided in this section. <br>(2) The costs of constructing buildings and improvements determined to be needed by <br>the cabinet under this section may be paid in whole or in part (a) out of funds <br>specifically appropriated for the construction of such buildings and improvements, <br>or (b) out of funds derived or which may be derived from the issuance and sale of <br>revenue bonds as authorized by this chapter or by KRS Chapter 58, or (c) by private <br>capital under a conveyance and leaseback agreement as authorized by this section, <br>or (d) by any combination of said methods. <br>(3) When the cabinet authorizes the construction of buildings and improvements under <br>this section, the costs of which are proposed to be financed wholly by private capital <br>under a conveyance and leaseback agreement, or partly by private capital in <br>combination with any other method authorized by subsection (2) of this section, the <br>cabinet, acting for and on behalf of the Commonwealth, may convey the fee simple <br>or any lesser interest in, including air rights above, any land owned by the <br>Commonwealth in the vicinity of the Capital Plaza to any person, corporation, or <br>partnership, to which such land or any interest therein has been or will be leased, <br>subject to a written agreement by such person, corporation, or partnership to <br>construct such buildings and improvements thereon and to reconvey such land to <br>the Commonwealth subject to a mortgage placed on the land or interest therein by <br>the person, corporation or partnership, for the purpose of securing private financing <br>of all or a part of the costs of construction of such buildings and improvements, and <br>for the leaseback to such person, corporation or partnership of such land, buildings <br>and improvements. Any mortgage placed on the land under this subsection shall <br>not constitute a general obligation or debt of the Commonwealth but the <br>Commonwealth may, in the event of default, redeem the mortgage if it so elects. <br>(4) The cabinet may divide any building or improvement project authorized under this <br>section into two (2) or more parts or units for purposes of financing the costs of <br>construction of each such part or unit and may agree that the Commonwealth's <br>interest in any part or unit of such project conveyed to any person, corporation or <br>partnership, and reconveyed to the Commonwealth subject to a mortgage as <br>authorized by subsection (3) of this section may be subordinate and inferior to such <br>mortgage, provided, however, that such mortgage shall not constitute a general <br>obligation or debt of the Commonwealth, and the Commonwealth may, in the event <br>of default, redeem the mortgage if it so elects. <br>(5) Any agreements made under this section shall be made only with the written <br>consent of the State Property and Buildings Commission and shall be signed in the <br>name of the Commonwealth by the secretary of the Finance and Administration <br><br>Cabinet and the Governor and shall be lodged for record in the office of the <br>Secretary of State. <br>Effective: June 17, 1978 <br>History: Created 1978 Ky. Acts ch. 120, sec. 1, effectiveJune 17, 1978. <br><br>