A Noah’s Ark theme park may have just hit rough waters.
Kentucky tourism officials have suspended a tax rebate deal worth $18 million after Ark Experience handed over the land the theme park sits on to an affiliated not-for-profit entity.
The officials said the sale of the $48 million property for just $10 violated the terms of the tax deal because the theme park failed to inform the state or to get approval, the Lexington Herald-Leader said.
Not-for-profits can qualify for the tax incentive, but the deal was made for Ark Encounter, not its not-for-profit affiliate.
It’s unclear why Ark Encounter carried out the transaction, and whether it believes it might be eligible for other tax benefits if the not-for-profit owns its property.