Kentucky suspends tax rebate deal with Ken Ham's Ark Encounter due to breach of contract

Kentucky has suspended the state tax rebate deal with the Ark Encounter theme park, saying it violated the terms of agreement with the state.

Last week, state officials notified the theme park located in Williamstown, Grant County that the owners violated the contract by transferring the property from a for-profit company to a nonprofit company, the Courier-Journal reported.

The property was reportedly transferred for $10 on June 28 from Ark Encounter LLC to Crosswater Canyon, which is a nonprofit subsidiary of the Christian creationist ministry Answers in Genesis.

A July 18 letter from the state Tourism, Arts and Heritage Cabinet informed the Ark Encounter that it is in violation of its agreement that provides the attraction with $18 million in subsidies through annual tax rebates.

Ark Encounter spokesman Mark Looy said on Friday that it did not believe that the theme park was in violation of the agreement.

"We don't believe that the transfer of the property created a default, but we will comply with the concerns that the tourism department may have related to the transfer," he said.

He added that the officials of the biblical attraction "look forward to maintaining a positive relationship with the state long into the future."

Laura Brooks, the spokeswoman for the tourism cabinet, said that the tax break will be restored if the Ark Encounter is deeded back to the for-profit entity within 30 days.

Williamstown Mayor Rick Skinner was concerned that the transfer of property was taken to avoid paying taxes. "We're skeptical of their thinking and their lack of communication right now," he said.

The Ark Encounter has been visited by about one million tourists in its first year of operations, and officials of the attraction have claimed that it has generated an economic impact of around $200 million.

The Northern Kentucky Convention and Visitors Bureau handed out the Star of Tourism Award to Answers in Genesis this year due to the economic impact of the Ark Encounter as well as the Creation Museum in the region, according to a press release published on the creationist ministry's website.

"The economic impact of the attractions has demonstrated the state's wisdom in offering incentives for qualifying tourist attractions to build in the Commonwealth," Looy stated.

"Directly and indirectly, Kentucky, because of the Ark and the museum, has already benefited from thousands of new jobs and has seen more money available for state programs, which reduces the tax burden of its residents," he added.