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ORDINANCE NO. 2009-6-7569
AN ORDINANCE AUTHORIZING AND APPROVING
URBAN RENEWAL AND COMMUNITY DEVELOPMENT
AGENCY'S BUY-BACK OF REAL PROPERTY LOCATED
AT 1615 MADISON STREET, PADUCAH, MCCRACKEN
COUNTY, KENTUCKY, FOR AND IN CONSIDERATION
OF $188,019.38, IN ACCORDANCE WITH THE FOUNTAIN
AVENUE REVITALIZATION PROJECT CONTRUCTION
AGREEMENT DATED JANUARY 18, 2008
WHEREAS, the City of Paducah, Kentucky (the "City") has determined that it is a
public purpose to foster and promote the proper and orderly development or redevelopment of
vacant, orphaned, or underutilized residential properties located within its corporate boundaries
and of insuring the integrity and quality of its existing residential neighborhoods, all to the
benefit of the citizens and residents of the City; and
WHEREAS, in order to fulfill that public purpose the City by and through the
Urban Renewal and Community Development Agency, as agency of the City of Paducah,
Kentucky (the "Agency") is presently engaged in a neighborhood redevelopment program known
as the "Fountain Avenue Neighborhood Revitalization Project" (the "Project") whose primary
purpose is to revitalize the Fountain Avenue neighborhood through the renovation of existing
residential structures and the construction of new residential structures which will maintain the
historical appearance of such area; and
WHEREAS, in the furtherance of the Project the Agency entered into a Fountain
Avenue Revitalization Project Construction Agreement (the "Agreement") with Mindsprings
Development, LLC, ("Contractor") for the construction of a new residential structure at 1615
Madison Street, Paducah, McCracken County, Kentucky (the "Property") within the Fountain
Avenue neighborhood; and
WHEREAS, pursuant to the Agreement, the Agency is obligated to buy-back the
Property from the Contractor in the event the Contractor is unable to sell the Property within the
specified sale period for a purchase price equal to the Stipulated Cost of Construction (as defined
in the Agreement) of $188,019.38; and
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WHEREAS, by Municipal Order No. 1383 the City previously recognized the
contingent obligation of the Agency under the Agreement and agreed to authorize an expenditure
from the City's operating reserves to fund the Agency's obligations under the Agreement; and
WHEREAS, the aforesaid specified sale period has expired and the Contractor has
been unable to sell the Property and has requested the Agency's buy-back obligations be
consummated in accordance with the terms of the Agreement; and
WHEREAS, the Board of Commissioners of the City is desirous of approving the
buy-back of the Property by the Agency in accordance with the terms and conditions of the
Agreement as the buy-back is in the best interest of the City in accomplishing the public purposes
of the City.
NOW, THEREFORE, BE IT ORDAINED, by the City of Paducah, Kentucky:
Section 1. Recitals and Authorizations. The City of Paducah hereby formally approves
of and the Agency is hereby authorized to buy-back the Property from Contractor for a purchase price
equal to the Stipulated Cost of Construction of $188,019.38 in accordance with the terms and conditions
of the Agreement previously entered into between the Agency and the Contractor.
Section 2. Recitals and Authorizations. Further, the Agency is hereby authorized to ent,
into, execute, and accept delivery of a general warranty deed and any and all other documentation
necessary to effectuate the buy-back of the Property from Contractor.
Section 3. Funding of the Purchase Price. All monies necessary for the buy-back of the
Property, including without limitation, the purchase price to be paid, shall be funded from the City's
operating reserves for the benefit of the Agency. All net proceeds from the subsequent sale of the
Property by the Agency shall be utilized to reimburse the City's operating reserves.
Section 4. Severability. If any section, paragraph or provision of this Ordinance shall be
held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this Ordinance.
Section 5. Compliance With Open Meetings Laws. The City Commission hereby finds —'
and determines that all formal actions relative to the adoption of this Ordinance were taken in an open
meeting of the City Commission, and that all deliberations of this City Commission and of its
committees, if any, which resulted in formal action, were in meetings open to the public, in full
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compliance with applicable legal requirements.
Section 6. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with
the provisions of this Ordinance are, to the extent of such conflict, hereby repealed and the provisions of
this Ordinance shall prevail and be given effect.
Section 7. Effective Date. This Ordinance shall be read on two separate days and will
become effective upon summary publication pursuant to KRS Chapter 424.
ATTEST:
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Tammara S. Brock, City Clerk v
Introduced by the Board of Commissioners, May 26, 2009
Adopted by the Board of Commissioners, June 9, 2009
Recorded by Tammara S. Brock, City Clerk, June 9, 2009
Published by The Paducah Sun, June 16, 2009
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