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May 14, 2008
Contact: Jill Midkiff, 502/564-4240
Statement from Finance and Administration Cabinet on the lawsuit filed
by the former Kentucky Horse Park Hotel developer
Since 2004, a hotel at the Kentucky Horse Park has been envisioned as a public/private partnership. The state would lease a portion of the Kentucky Horse Park to the developer who would design, build and provide financing for the hotel. This aspect of the transaction was clear and consistently relayed to the developers.
Upon assuming office in December 2007, the Beshear Administration reviewed the project and thought that it possessed merit while recognizing that the sub-prime market situation would present financing challenges. Finance Cabinet officials worked with the developers to create an enhanced financing package that included considerably more state participation than originally envisioned.
The Cabinet set a deadline of April 15, 2008 for the developer to obtain financing. This was done to avoid the risk of an unfinished hotel or unsightly construction remnants present during the World Equestrian Games at the Kentucky Horse Park in 2010. Unfortunately, the developer failed to secure financing by that deadline.
The Cabinet denies the developer’s claim that there was a breach of contract. The Cabinet acted prudently and in the best interest of the Commonwealth at all times during this process. This project may be viable at another time. The Commonwealth will make that decision after the World Equestrian Games in 2010.
