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Home My WebLink About2010-6-7697125663 ORDINANCE NO. 2010-6-7697 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A SECOND AMENDMENT TO THE FAQADE LOAN PROGRAM i AGEEMENT BY AND AMONG THE CITY OF PADUCAH, KENTUCKY AND i PADUCAH MAIN STREET, INC., DOING BUSINESS UNDER THE ASSUMED NAME OF PADUCAH RENAISSANCE ALLIANCE WHEREAS, on January 8, 2008, the City of Paducah and Paducah Main Street, Inc., doing business under the assumed of Paducah Renaissance Alliance ("Paducah Renaissance")(formerly doing business under the assumed name of Main Street) entered into an Agreement (the "Agreement") whereby Paducah Renaissance borrowed from the City a total amount of $100,000.00 without interest accruing thereon, for the purposes of funding the Paducah Renaissance facade loan program; and WHEREAS, City and Paducah Renaissance have come to an agreement as to the amendment of the Agreement (this "Amendment") and do now desire to memorialize this Second Amendment by this binding writing; and NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Recitals and Authorization. The City hereby approves this Amendment by and among the City and Paducah Renaissance in substantially the form attached hereto as Exhibit A and made part hereof. It is further determined that it is necessary and desirable and in the best interests of the City to enter into this Amendment for the purposes therein specified, and the execution and delivery of this Amendment is hereby authorized and approved. The Mayor of the City is hereby authorized to execute this Amendment, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by this Amendment with such changes in this Amendment not inconsistent with this Ordinance and not substantially adverse to the City as may be approved by the official executing the same on behalf of the City. The approval of such changes by said official, and that such are not substantially adverse to the City, shall be conclusively evidenced by the execution of this Amendment by such official. Section 2. 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 3. 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 this 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 4. 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 5. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. ATTEST: j&Tn/Md4a 6bucoc)'t, 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\downtown dev\fagade loan amend agree 2 EXHIBIT A SECOND AMENDMENT TO AGREEMENT THIS SECOND AMENDMENT TO AGREEMENT made and executed on the day of , 2010 by and between the CITY OF PADUCAH, KENTUCKY, a city of the second class, hereinafter referred to as "City", and PADUCAH MAIN STREET, INC. doing business under the assumed name of Paducah Renaissance Alliance, a Kentucky not for profit corporation, hereinafter referred to as Paducah Renaissance." WHEREAS, on January 8, 2008, City and Paducah Renaissance (formerly doing business under the assumed name of Main Street) entered into an Agreement (the "Agreement") whereby Paducah Renaissance borrowed from the City a total amount of $100,000.00 without interest accruing thereon, for the purposes of funding the Paducah Renaissance fagade loan program; and WHEREAS, City and Paducah Renaissance have come to an agreement as to the amendment of the Agreement (this "Amendment") and do now desire to memorialize this Second Amendment by this binding writing. NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants as herein set forth, and other good and valuable consideration, the receipt of which is hereby acknowledged by each party, the parties do covenant and agree that the Agreement is hereby amended so that same shall hereinafter read in its entirety as follows: WHEREAS, on or about July 1990, the City did lend unto Paducah Renaissance the sum of Twenty -Four Thousand Dollars ($24,000.00), which loan was for the purpose of funding Paducah Renaissance's facade loan program; and WHEREAS, in March of 1998 Paducah Renaissance requested and received a loan from the City in the amount of Twenty -Five Thousand Dollars ($25,000.00) to augment the funding to Paducah Renaissance's facade loan program; and WHEREAS, Paducah Renaissance and City have determined that a significant number of building facades are in need of restoration; and that restored storefronts enhance the marketability of downtown Paducah; and WHEREAS, Paducah Renaissance and City agree that the existing program is insufficiently funded and its terms and conditions of the facade loan program are no longer effective in bringing about restored facades to downtown Paducah; and 3 WHEREAS, the City is agreeable to lending the Paducah Renaissance an additional Fifty -One Thousand Dollars ($51,000.00), in order to bring the loan program to One -Hundred Thousand Dollars ($100,000.00) provided that said loans shall be subject to the terms and condition as herein provided, to which Paducah Renaissance is agreeable. NOW, THEREFORE, for and in consideration of the foregoing premises, and for other valuable consideration, the legal adequacy and sufficiency of which is hereby acknowledged by the parties hereto, the parties do covenant and agree as follows: 1. Additional Loan by City to Paducah Renaissance. Subject to the terms and condition as herein set forth, the City agrees to lend to Paducah Renaissance the additional sum of Fifty -One Thousand Dollars ($51,000.00). The City shall remit the loan proceeds to Paducah Renaissance as soon as practicable, but no later than 30 days following the date of this agreement. 2. Acknowledgement of Loans. Paducah Renaissance does hereby acknowledge that the original sum of Twenty -Four Thousand Dollars ($24,000.00) heretofore loaned to Paducah Renaissance in 1990, the Twenty -Five Thousand Dollars ($25,000.00) heretofore loaned in 1998, and the additional Fifty -One Thousand ($51,000.00) to be loaned to Paducah Renaissance are in the form of loans from the City to Paducah Renaissance. As such, Paducah Renaissance has the liability to repay the loans without interest to the City, which repayment shall be subject to the repayment terms and conditions as hereinafter provided. 3. Use of Loan Proceeds. Paducah Renaissance covenants to the City that it shall only utilize loan proceeds received from the aforementioned loans to fund its facade loan program. Paducah Renaissance use of loan proceeds shall be subject to the following terms and conditions: a) Each loan under the facade loan program shall only be qualified applicants which conduct business located in the Renaissance area. b) The maximum amount of any loan to any single business shall not exceed �i Thirty Thousand Dollars ($30,000). Each loan shall be evidenced by a duly executed promissory note which contains such terms and conditions as determined by Paducah Renaissance. Loans under the facade loan program C! may be made with interest up to 2% interest. Interest collected shall be placed in the loan pool program. c) Each loan made under the facade loan program shall be in strict accordance with the policies and procedure as outlined in Appendix "A," which appendix is incorporated herein by reference. No change or modification shall be made to any of the policies or procedures unless the prior consent and approval of the City is first obtained. d) Paducah Renaissance shall be fully responsible for the enforcement and collection upon each and every loan. Such enforcement and collection shall include judicial enforcement of any promissory note which has come in default. Any and all costs and expenses regarding enforcement and collection shall be at the cost of Paducah Renaissance. e) The loan funds shall not be co -mingled with other Paducah Renaissance funds or accounts. f) Funds not being loaned shall be placed in an interest bearing account at a financial institution with deposit insurance or collateral sufficient to cover the fund balance. Interest proceeds shall be rolled into fund for use in the loan program as described herein. 4. Monthly Reports. Paducah Renaissance shall provide to the City monthly reports which shall reflect each loan made under the facade loan program, the business to whom the loan was made, the loan balances on each loan, and whether any loan is in default. Such monthly reports shall contain such additional information as may be required by the City from time to time. 5. Repayment of Loans by Paducah Renaissance. Paducah Renaissance shall have the unconditional obligation to repay to the City the total of all loans in the amount of One -Hundred Thousand Dollars ($100,000.00), plus any interest earned thereon and held by Paducah Renaissance at the time of the triggering event, within ninety (90) days following the occurrence of the earlier of the following events: a) Paducah Renaissance terminated its facade loan program; or b) The City makes demand upon Paducah Renaissance for repayment of the loans. In the event Paducah Renaissance fails to repay the loans in the 5 manner as herein set forth, the City shall have the right to make collection upon same. In such event, the City shall have the right to collect not only the loans, but additionally, shall have the right to collect from Paducah Renaissance any and all costs and expenses in regards to collection, including its reasonable attorney fees and costs. 6. Security for Repayment. As security for the repayment obligations of Paducah Renaissance to the City, Paducah Renaissance shall execute to the City a security agreement wherein Paducah Renaissance assigns unto the City a security interest in all of the accounts, promissory notes, chattel paper, and documents which relate to Paducah Renaissance's facade loan program. The City shall have a right to the actual possession of all negotiable instruments, including promissory notes. 7. Miscellaneous Provisions. This agreement shall be binding upon the parties hereto, their respective heirs, successors, and assigns. This agreement represents the entire agreement by and between the parties concerning the aforementioned loans, and all prior understandings, representations and agreement are merged herein by reference. This agreement shall be construed under the laws of the Commonwealth of Kentucky WITNESS our signatures on the date first above written. CITY OF PADUCAH, KENTUCKY Title PADUCAH MAIN STREET, INC. doing business under the assumed name of PADUCAH RENAISSANCE ALLIANCE IM Title 0