Committee approves three state leases and reviews lease modification for Health & Family Services

The Capital Projects and Bonds Oversight Committee on July 16 approved three leases presented by Natalie Bronner of the Division of Real Properties.

Bronner said PR 5586 provides 84 parking spaces for the Department of Corrections at $111.30 per space per month, totaling $112,190.40 annually through June 30, 2025. PR 5930 covers 9,240 square feet of office and laboratory space for the Kentucky State Police at $16 per square foot, excluding utilities, totaling $147,840 annually through June 30, 2034. PR 5330 covers 8,356 square feet of space for the Education & Labor Cabinet in Kenton County; Bronner said negotiations produced a reduction in the rental rate from $33.19 to $28.68 per square foot, producing an annual rent of $239,650.08 through June 30, 2029.

Representative McPherson asked whether lessors set lease terms and whether negotiations produced the reduced rate in Kenton County; Bronner said lessors set initial terms but the office negotiates when there is only one responsive bid or when agencies request it, and that the Kenton County reduction resulted from direct negotiation with the City of Covington.

Bronner also reported a lease modification for the Cabinet for Health and Family Services: the agency occupies 16,505 square feet at $15.75 per foot (annual cost $259,953.76) and approved a $12,245 renovation bid from GEM Construction Group to secure its reception area; the renovation cost will be amortized over the term through June 30, 2027 consistent with KRS 56 8 13 2. The modification required no committee action.

All three leases were approved by roll call.