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HomeMy WebLinkAbout2010-6-7695124966 ORDINANCE NO. 2010-6-7695 AN ORDINANCE AUTHORIZING AND APPROVING PURCHASE OF REAL PROPERTY LOCATED AT 1437 MARTIN LUTHER KING JR. BOULEVARD, PADUCAH, MCCRACKEN COUNTY, KENTUCKY AND 1214 NORTH 14TH STREET, PADUCAH, MCCRACKEN COUNTY, KENTUCKY FOR AND IN CONSIDERATION OF THE TOTAL SUM OF $33,500.00 AND IN SETTLEMENT OF A FEDERAL CIVIL ACTION; AND THE SUBSEQUENT ASSIGNMENT OF THE RIGHT AND OBLIGATION TO PURCHASE THE PROPERTIES TO THE URBAN RENEWAL AND COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF PADUCAH, KENTUCKY; AND FOR THE DISMISSAL OF THE FEDERAL CIVIL ACTION WHEREAS, the real property located at 1437 Martin Luther King Jr. Blvd, Paducah, McCracken County, Kentucky which is more particularly described on Exhibit "A," attached hereto, and the real property located at 1214 North 14th Street, Paducah, McCracken County, Kentucky which is more particularly described on Exhibit "B," attached hereto, (collectively, the "Properties") , are currently the subject of a condemnation proceeding instituted by the City of Paducah, Kentucky (the "City") and a federal civil action filed in the U.S. District Court for the Western District of Kentucky; and WHEREAS, in order to fulfill the public purposes of the City of revitalizing neighborhoods through the renovation of existing residential structures and the construction of new residential structures which will maintain the historical appearance of such area, the City has reached a settlement with the owners of the Properties, Myra Henderson and Sandra Neal (collectively, the "Sellers"), for the purchase of the Properties by and through its public agency, the Urban Renewal and Community Development Agency (the "Agency"); and WHEREAS, the Board of Commissioners of the City of Paducah concur and find that the purchase of the "Properties" for the purchase price of Thirty Three Thousand Five Hundred Dollars ($33,500.00) is and in the best interest of the City and to the benefit of the citizens and residents of the City; and WHEREAS, the Board of Commissioners of the City is desirous of assigning all its rights and obligations to purchase the Properties in accordance with the terms and conditions of the Sale and Purchase Contract (the "Contract"), attached hereto and made a part hereof as Exhibit "C," to Agency; and WHEREAS, the City having reached a settlement with the Sellers regarding the condemnation of the Properties, the City is desirous of dismissing it claims in the federal civil action pending before the U. S. District Court for the Western District of Kentucky and the execution of a mutual release of all claims. 1 Kentucky: NOW, THEREFORE, BE IT ORDAINED, by the City of Paducah, Section 1. Recitals and Authorizations. The Board of Commissioners of the City of Paducah hereby approves and consents to the purchase and acquisition of the "Properties" from the "Seller," for the purchase price equal to Thirty Three Thousand Five Hundred Dollars ($33,500.00) in accordance with the terms and conditions of the Contract and the settlement of the condemnation proceedings and the civil action pending before the U. S. District Court for the Western District of Kentucky. It is hereby found and determined that the acquisition is for the public purposes of the City. It is further determined that the Mayor, on behalf of the City of Paducah, Kentucky, is hereby authorized to execute the Contract and a mutual release of all claims against the Sellers in the federal lawsuit and any other documentation necessary to dismiss the federal lawsuit. Section 2. Recitals and Authorizations. The Board of Commissioners hereby authorizes corporate counsel, on behalf of the City, to consent to and agree to a dismissal of the federal lawsuit. Section 3. Recitals and Authorizations. The Board of Commissioners of the City of Paducah hereby approves and consents to the assignment of all its rights and obligations under the Contract to the Agency. It is further determined that the Mayor, on behalf of the City of Paducah, Kentucky, is hereby authorized to execute the Assignment in substantially the form attached hereto as Exhibit "D." Section 4. Funding of the Purchase Price. The Finance Director is hereby authorized to fund the purchase price of $20,000 for 1437 Martin Luther King Blvd., project account CD0040 and the purchase price of $13, 500 for 1214 North 14th Street, project account CD0041, and any other costs necessary to consummate the purchase authorized herein. Section 5. Corporate Counsel is hereby authorized to conduct such due diligence and investigation as it deems necessary and in the best interest of the City and Agency. Further Corporate Counsel is authorized to prepare the general warranty deed and any other documents necessary to accomplish and consummate the purchase and acquisition of the Properties by Agency in accordance with this Ordinance. Section 6. 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 7. 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 compliance with applicable legal requirements. Section 8. 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. 2 Section 9. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publicationurp suant to VRS Chapter 424. ATTEST: J&iwma44S, Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, June 8, 2010. Adopted by the Board of Commissioners, June 22, 2010. Recorded by Tammara S. Brock, City Clerk, June 22, 2010. Published by The Paducah Sun, June 28, 2010. \ord\plan\property settlement -1437 MLK & 1214 N 14th 10,14011:311I_\ LEGAL DESCRIPTION OF 1437 MARTIN LUTHER KING BOULEVARD, PADUCAH, MCCRACKEN COUNTY, KENTUCKY Beginning at the Northeast Corner of the Interior Section of Clay Street and North 15th Street in Paducah, Kentucky; thence in an easterly direction with the northerly line of Clay Street 30 feet; thence at right angles and in a northerly direction towards Park Avenue 115 feet; thence at right angles and in a westerly direction 30 feet to the easterly line of North 15th Street; thence in a southerly direction with said last mentioned line 115 feet to the point of beginning. Being the same property conveyed to Rexie F. Neal (AKA Rexie Griffin) by Deed dated November 19, 1964, of record in Deed Book 462, Page 337, McCracken County Clerk's office. Rexie F. Neal is deceased and in accordance with her Last Will and Testament of record in Will Book HHH, Page 600, McCracken County Clerk's office, the property was devised to Myra Henderson and Sandra Neal. M EXHIBIT B LEGAL DESCRIPTION OF 1214 NORTH 14TH STREET, PADUCAH, MCCRACKEN COUNTY, KENTUCKY Being Lot No. 4, in block #65 of Harris, Flourney, Trimble and Norton's addition to the City of Paducah, and also being known as Faxon's Subdivision of said block #65. Said Lot #4 lies on the northerly side of 14th Street and fronts 40 feet thereon, extending back in uniform width in a northerly direction 175 feet on the line of an alley. Said Lot and block are shown in Plat Book 3, Page 37, in the office of Commissioner of Public Works of the City of Paducah Kentucky. Being the same property conveyed to Myra Henderson and Sandra Neal by Deed dated April 1, 1999, of record in Deed Book 932, Page 648, McCracken County Court Clerk's office. A L EXHIBIT -- SALE AND PURCHASE CONTRACT — The City of Paducah, Kentucky, hereinafter collectively referred to as "Buyer", agree to purchase from Sandra Neal and Myra Henderson, hereinafter collectively referred to as "Seller', the following described improved properties, with all improvements and appurtenance thereunto belonging, known as 1437 Martin Luther King Jr. Blvd. and 1214 North 14"' Street, Paducah, KY (the "Property") 1. PURCHASE PRICE: The purchase price for the Property shall be the amount of twenty thousand dollars ($20,000) for 1437 Martin Luther King Jr. Blvd. And thirteen thousand five hundred dollars ($13,500) for 1214 North 14t�` Street for a total of thirty three thousand five hundred dollars ($33,500) for both properties payable as follows: A. Cash at closing of sixteen thousand seven hundred fifty dollars & No/100 ($16,750) payable to Myra Henderson; B. Cash at closing of sixteen thousand seven hundred fifty dollars & No/100 ($16,750) payable to Sandra Neal, less all payments required to lien holders to clear title to the property; C. Pending Approval City of Paducah Commission 2. PROPERTY INCLUDED: The term Property as herein used shall include all fixtures such as screens, flooring, stone doors and windows, lighting, heating and plumbing equipment, plus all articles so attached or built in which, if removed, would leave premises in a damaged, incomplete or unfinished condition. 3. DEED: At closing, upon the Purchase Price being paid as provided in Paragraph 1 hereof, an unencumbered marketable title to the Property shall be conveyed to Buyer by deed of general warranty with the usual covenants such as any national title company would 0 0 insure, free and clear of all liens and encumbrances except such easements, restrictions and agreements now of record affecting the property. Should the title to the property appear defective, Seller shall have thirty (30) days after receipt of notice from Buyer of such defect or defects within which to remedy same at cost of Seller. 4. CLOSING COSTS: Buyer shall pay for the opinion of title, if any, and all other closing costs. 5. PRORATIONS: Property taxes to be prorated as of the date of closing. 6. CLOSING: This transaction shall close within 60 days of execution of this contract. T. EARNEST MONEY: None. 8. POSSESSION: Possession of the property shall be given to Buyer at closing. 9. RISK OF LOSS OR DAMAGE: All risk of loss or damage to the Property by fire, windstorm, casualty, or other cause shall remain with Seller until date of closing. If the Property is destroyed or materially damaged by any of the aforementioned, this Contract shall be null and void at the option of the Buyer and the earnest money refunded. 10. MAINTENANCE : Until physical possession is delivered to Buyer, Seller agrees to maintain any heating, cooling, plumbing, electrical systems, and any built-in appliances and equipment in normal operating condition capable of continued service. 11. BROKER REPRESENTATION:'The parties warrant that no real estate brokers or salespersons are representing the parties in this transaction and that each shall indemnify the other from any claim for such real estate commission arising from their respective acts. 12. SPECIAL CONDITIONS: A. Inspection: LXJ Buyer waives all inspections of the property and relies solely upon the Buyer's examination of the property and releases Seller and brokers from any and all liability relating to any defect or deficiency affecting the property. This release shall survive the closing. Seller is selling the property "as is," with no warranties, implied or express as to the Property's fitness for its intended use. B. Dismissal of Federal Lawsuit: A Full and Final Release of all Claims regarding the Federal Lawsuit between Buyer and Seller shall be executed at closing prior to the disbursement of sale proceeds. C. Tenants in Possession: All tenants shall be properly evicted and the premises vacated prior to closing. D. Power of Sale: All legal documents relating to a Power of Attorney or Guardianship appointment over Sandra Neal must be provided for review prior to closing. Said legal document must be filed of record with the McCracken County Clerk prior to the execution and recording of the closing documents. E. City Liens: Buyer shall execute a release of all liens held against the property at the time of closing. F. Judgment Liens: All judgment liens filed against Sandra Neal must be satisfied at the time of closing. Payoff letters from said lien holders must be obtained prior to closing as well as a letter of intent to release said liens upon receipt of payoff funds. Payoff of all liens will be collected and paid through closing. G. Spousal interest:: Any spouse of Myra Henderson or Sandra Neal must execute the deed of conveyance of said property. H. Attorney Fees: Each Seller is responsible for her own attorney's fees incurred for legal representation concerning this legal matter and the resolution thereof. Buyer is is 0 responsible for its own attorney's fees incurred for legal representation concerning this legal matter and the resolution thereof. 13. ENTIRE AGREEMENT: Buyer and Seller have read the entire contents of this Contract, agree that all terms and conditions pertinent hereto are included in this writing, and agree that no verbal agreements or understandings of any kind shall be binding upon the parties. 14. TIME: Time is of the essence in this entire Contract. DATE: Buyer TE: TE: TE: 125559 EXHIBITI) ASSIGNMENT OF PURCHASE AGREEMENT This ASS]CiNMI N'f OI- PEJIZCI-IASi:; AGIZ1:;I MEN'I', made and entered into this day of Junc. 2010. by and between CITY 01" PADUCAI-1. KE:N"I'UCKY, whose address is Post Office Box 2267, Paducah. Kentucky 42002-2267 ("Assignor,") and UR13AN RENEWAL AND COMMUNITY I)1?VI7L.OPMEN"i' AGENCY 017 THE CITY 01" PADUCAH, KENTUCKY, a body politic and corporate, created and acting pursuant to the laws of the state of' Kentucky, whose address is Post Office Box 2267, Paducah, Kentucky 42002-2267, ("Assignee.") WITNESSETH: W1-IEREAS, on the _ day of , 2010. Assignor, as 131.1yer, and Myra Henderson and Sandra Ncal, collectively as Seller, (hereinafter referred to as "Seller'") did enter into a Sale and Purchase Contract ("Agreement') Wherein Seller did accept an offer from Assignor to purchase Seller's real property as described therein: and WI-IERE:AS. Assignor desires to assign and transfer unto Assignee the rights. title, privileges. Interests and Obligations thCI'Cunder: and WFIEREAS, Seller is agreeable of the Assignment from Assignor to Assignee as the Assignee is a governmental agency of the Assignor. NOW, -1-1-11-HR]"F'ORE'. in consideration of carrying out the foregoing premises, and other valuable consideration, the legal adequacy and sufficiency ofwhich is hereby acknowledged by all parties heI'eto, the parties do covenant and agree as flollows: I . Assip_nment. Assignor does hereby irrevocably assign and transfer unto Assignee, and Assignee does hereby accept. the Agreement, and all rights, title, privileges, interests, and obligations thereunder. A copy of the original Purchase Agreement is attached hereto as Exhibit "A." 2. Assumption of Obligations. In accepting this Assignment. Assignee does hereby expressly assume all obligations and liabilities of -Assignor under the Agreement. I . Rights and Remedies. In the event Seller fails to consummate the sale in the manner as required under the Agreement, or otherwise fails to comply with and satisfy all warranties and representations made by Seller thereunder, it is understood and acknowledged between the parties that Assignee shall have all rights and remedies o1 -Assignor under the Agreement with regard to same. and the enforcement of -the Agreement in accordance with its terms and provisions. 4. Miscellaneous Provisions. This Assignment shall be binding, upoiy the parties hereto, and their heirs, successors. and assigns. Wi-['N['SS our sign�Uures on the date first written above. CITY OF PADUCAH, KENTUCKY UR13AN RENEWAL AND COMMUNITY DEVELOPMENT AGENCY OF THE CITY OF PADUCAH By Title KENTUCKY By Title