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

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