The Kentucky Tourism, Arts, and Heritage Cabinet notified the operators of the Ark Encounter that it is in breach of its Tourism Development Agreement with the state. That agreement provides up to $18 million in state subsidies for the Ark project in the form of annual sales tax rebates. FFRF obtained records from the Cabinet today that include a July 18 notice sent to the operators of the Ark saying that Ark Encounter, LLC has breached the agreement following the sale of the property. The letter says that no further tax rebates may accrue as of June 28.
The letter is similar to a letter sent by FFRF this week to the Cabinet Secretary, which pointed out that the Cabinet is prohibited from paying out further sales tax rebates without new authorization.