A company that planned to reopen the former Kentucky Kingdom amusement park in Louisville has abandoned the project.

Bluegrass Boardwalk Inc. announced on its website Friday that it was withdrawing due to government regulations and stipulations.

Bluegrass Boardwalk CEO Natalie Koch (COOK') says she and her partners have determined that leasing a park instead of owning it would not fit their business model. Koch's family owns and operates Holiday World in Santa Claus, Ind., and she says they have long wanted to operate a second park.

The state this week approved incentives of up to $3.9 million over 10 years for the company, which had proposed investing $15.6 million to open the park in 2014. The deal would have included a lease agreement with the Kentucky State Fair Board.

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