HomeMy WebLinkAbout2010-12-7768128983ver2
ORDINANCE NO. 2010-12-7768
AN ORDINANCE AUTHORIZING AND APPROVING THE
WESTWOOD HILLS RESIDENTIAL INFILL DEVELOPMENT AGREEMENT
AMONG THE CITY OF PADUCAH, KENTUCKY, AND SIGNATURE HOMES OF
PADUCAH, LLC
WHEREAS, on or about June 8, 2010, Signature Homes of Paducah, LLC
("Developer") purchased the single family residential development located within the corporate
boundaries of the City of Paducah and generally known as the Westwood Hills Subdivision
including, without limitation, all public infrastructure and improvements installed and to be
constructed within such development; and
WHEREAS, the public infrastructure and improvements within Westwood Hills
Subdivision have an estimated fair market value of $400,000.00; and
WHEREAS, Developer has requested, that the City reimburse Developer for its
costs in acquiring the public infrastructure and improvements to the extent of either (i) the sum
of $400,000.00 or (ii) the amount of ad valorem real property taxes realized and collected by the
City from the City's levy and tax on the residential lots located within Westwood Hills
Subdivision for a period of ten (10) years following the date of the Letter of Acceptance issued
by the City Engineer -Public Works Director, the lesser to apply.
WHEREAS, for the following reasons the City is agreeable to reimbursing
Developer's costs in acquiring the public infrastructure and improvements within Westwood
Hills Subdivision: (i) upon completion and acceptance the public infrastructure and
improvements will become the property of the City; (ii) the public infrastructure and
improvements will increase residential infill within the City limits by encouraging development
of single-family owner -occupied housing on vacant, orphaned, or underutilized land located in
the mature portions of Paducah; and iii) the public infrastructure and improvements will promote
the health of the existing public school system by increased residential development within the
existing City of Paducah School System; (iv) the public infrastructure and improvements will
promote an increase in the revenue tax base necessary to meet various capital needs, especially
in the area of public safety and an increase the population base of the City of Paducah, therefore
increasing the possibilities of becoming a designated urbanized area; and
WHEREAS, City and Developer do now desire to memorialize by a binding
writing their agreement regarding the City's reimbursement to Developer of its cost incurred for
the installation and construction of the public infrastructure and improvements within Westwood
Hills Subdivision.
BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. Recitals and Authorization. The City hereby approves the Westwood Hills
Residential Infill Development Agreement (this "Agreement") by and among the City and Developer in
substantially the form attached hereto as Exhibit A and made part hereof. It is further determined that it
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is necessary and desirable and in the best interests of the City to enter into this Agreement for the
purposes therein specified, and the execution and delivery of this Agreement is hereby authorized and
approved. The Mayor of the City is hereby authorized to execute this Agreement with such changes in
this Agreement not inconsistent with this Ordinance and not substantially adverse to the City as may be
approved by the Mayor executing the same on behalf of the City. The approval of such changes by the
Mayor, and that such are not substantially adverse to the City, shall be conclusively evidenced by the
execution of this Agreement by the Mayor.
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:
Tammara S. Brock, City Clerk
Introduced by the Board of Commissioners, November 16, 2010
Adopted by the Board of Commissioners, December 7, 2010
Recorded by Tammara S. Brock, City Clerk, December 7, 2010
Published by The Paducah Sun, December 11, 2010
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EXHIBIT A TO THE ORDINANCE
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Westwood Hills
Residential Infill Development Agreement
THIS INFILL DEVELOPMENT AGREEMENT made and executed on this
day of , 2010, by and between the CITY OF PADUCAH,
KENTUCKY, a city of the second class, 300 South Fifth Street, P. O. Box 2267, Paducah,
Kentucky 42002-2267 (hereinafter referred to as "City"), and SIGNATURE HOMES OF
PADUCAH, LLC a Kentucky limited liability company of 540 Parker Road, Paducah, Kentucky
42003 (hereinafter referred to as "Developer").
WITNESSETH:
WHEREAS, on May 21, 2007, Shepherd's Nest Villas, LLC, ("Shepherd's Nest") made
application to the City and tendered a final plat entitled "Westwood Hills Subdivision" (the "Final
Plat"), together with subdivision plans and a stormwater management plan (the "Plans") approved
by the City Engineer on July 20, 2007 for the development and subdivision of approximately 44
acres of land located within the corporate boundaries of the City of Paducah, McCracken
County, Kentucky into a single family residential development (herein after referred to as
"Westwood Hills Subdivision"); and
WHEREAS, the Final Plat of Westwood Hills Subdivision was conditionally approved
by the City on July 10, 2007, by Ordinance #2007-7-7297, upon the commitment of Shepherd's
Nest to develop Westwood Hills Subdivision and to construct and install all required public
infrastructure and improvements within the subdivision (the "Municipal Facilities") in
accordance with the Final Plat, the Plans, and -all applicable subdivision regulations (the
"Subdivision Regulations"); and
WHEREAS, the Final Plat of Westwood Hills Subdivision was subsequently filed of
record in the McCracken County Court Clerk's office in Plat Section "L," page 1842; and
WHEREAS, the City desires to provide municipal services to benefit Westwood Hills
Subdivision, and ultimately residents to be located therein, but requires the Municipal Facilities
which are necessary for the provision of such municipal services, including streets, gutters, and
other public improvements, which upon completion and acceptance by the City will become the
property of the City, to be constructed at no cost to the City; and
WHEREAS, Shepherd's Nest completed or paid for the completion of a portion of the
Municipal Facilities but failed to complete all of the Municipal Facilities within Westwood
Hills Subdivision; and
WHEREAS, on or about February 23, 2010, Atlas Tri-State SPE, LLC ("Atlas"), a
subsidiary of Branch Banking and Trust Company, entered into a Development Agreement with
the City (the "Development Agreement")(a copy of which is attached hereto as Exhibit A),
whereby it agreed to assume and to complete the remaining Municipal Facilities within
Westwood Hills Subdivision; and
WHEREAS, Developer is now the owner of Westwood Hills Subdivision having
purchase same from Atlas on or about June 8, 2010, further, Developer purchased the Municipal
Facilities within Westwood Hills Subdivision for a purchase price of $400,000.00; and
WHEREAS, Atlas remains committed to complete the Municipal Facilities as required
under the Development Agreement; and
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WHEREAS, for reason that the Municipal Facilities within Westwood Hills Subdivision
will become the property of the City upon completion of construction and acceptance by the
City, the City is agreeable to reimbursing Developer its cost in acquiring the Municipal Facilities
(which sum is $400,000.00) to the extent of either the lesser of the total sum of $400,000.00 or
the amount of ad valorem real property taxes realized and collected by the City from property
located within Westwood Hills Subdivision for a period of ten (10) years following the date of
the Letter of Acceptance (as defined herein), provided that all required public infrastructure and
improvements are completed by Atlas and accepted by the City; and
WHEREAS, further the completion of the development of the Westwood Hills
Subdivision will increase residential infill development in the City of Paducah by encouraging
development of single-family owner -occupied housing on vacant, orphaned, or underutilized
land located in the mature portions of Paducah where infrastructure and services are in place;
and
WHEREAS, further the completion of the development of the Westwood Hills
Subdivision will (i) promote the health of the existing public school system by increased
residential development within the existing City of Paducah School System; (ii) increase the
revenue tax base necessary to meet various capital needs, especially in the area of public safety;
and (iii) increase the population base of the City of Paducah, therefore increasing the
possibilities of becoming a designated urbanized area.
NOW, THEREFORE, in consideration of the foregoing provisions, and for other
valuable consideration, the receipt of which is hereby acknowledged by all parties hereto, the
parties do covenant and agree as follows:
1. Reimbursement to Developer for Costs Incurred in Acquiring the
Municipal Facilities. The City hereby agrees to reimburse Developer for the cost incurred by
the Developer for the acquisition of the Municipal Facilities to the extent of either (i) the sum of
$400,000.00 or (ii) the amount of ad valorem real property taxes realized and collected by the
City from the City's levy and tax on the residential lots located within Westwood Hills
Subdivision for a period of ten (10) years following the date of the Letter of Acceptance (the
"Acceptance") issued by the City Engineer -Public Works Director, the lesser to apply.
Reimbursement of the cost shall be subject to the following terms and conditions:
A. Time of Request. The Developer shall only be entitled to make a request
for reimbursement upon satisfaction of all conditions precedent as set
forth in paragraph 2 below. Any request for reimbursement shall be filed
with the City on or before May31 st of each calendar year.
B. Request for Reimbursement. Any request for reimbursement shall be in
written form and delivered to the Finance Department.
C. Reimbursement from Finance Department. Upon receipt of the written
request, the Finance Department shall make a determination as to the
amount of ad valorem real property taxes which were levied by the City
for the City's sole benefit against the residential lots located within
Westwood Hills Subdivision and actually collected and received by the
City in each year of the ten (10) year period following the Acceptance.
The Finance Department shall make payment to the Developer in an
amount equal to such taxes actually collected and received by the City for
each such year, subject, however, to the following conditions:
(1) The City shall have no obligation whatsoever to reimburse the
Developer in excess of the sum total amount of the taxes actually
collected and received by the City during the ten (10) year period
following the Acceptance.
(2) Any taxes which may be collected by the City for the benefit of
others, such as the school board, etc., shall not be deemed a part of
the reimbursement herein.
(3) Only taxes actually received and collected by the City during the
ten (10) year period following the Acceptance shall be utilized in
determining the reimbursement hereunder. Any taxes collected
prior to or after such ten (10) year period shall not be included in
such determination, regardless of the date of assessment or levy,
issuance of the tax bills, or in the event of any delinquency in
payment.
D. Termination. The City's obligation to reimburse the Developer shall
terminate upon the happening of either (i) payment in full of the
$400,000.00 or (ii) the expiration of the ten (10) year period following the
Acceptance, whichever shall occur first.
2. Conditions Precedent to Reimbursement. Developer acknowledges that
the following conditions precedent to reimbursement must be satisfied prior to any
reimbursement to Developer:
A. The Municipal Facilities have been constructed as required by and in
accordance with the requirements of the Final Plat, the Plans, the
Development Agreement, and the Subdivision Regulations; and
B. The Municipal Facilities are approved and accepted by the City Engineer -
Public Works Director and a letter of acceptance has been issued by the
City Engineet-Public Works Director (the "Acceptance").
3. Acceptance by the City. Upon the Acceptance of the Municipal Facilities
by the City, the Municipal Facilities shall be deemed the sole and exclusive property of the City.
Upon the Acceptance, the City shall thereafter maintain such Municipal Facilities, at the City's
costs. Notwithstanding the foregoing, it agreed and understood by and between the parties that
the City shall not be obligated to accept the Municipal Facilities which are not constructed in
accordance with Final Plat, the Plans, the Development Agreement, and the Subdivision
Regulations.
4. Enforcement of Agreement. Each of the parties to this Agreement shall
have the right to enforce the terms of this Agreement. In the event of such enforcement, or in the
event of any dispute between the parties regarding the meaning or interpretation of any provision
of this Agreement, all parties do hereby agree to submit such action to the McCracken Circuit
Court. Each party shall have all rights and remedies as provided by law. In the event such
action is filed with the McCracken Circuit Court, each parry does hereby waive trial by jury. It
is agreed by and between the parties that the prevailing party in such action shall have the right
to recover its reasonable attorney's fees from the nonprevailing party as part of its costs of
litigation.
5. Arbitration. Should any dispute arise between the parties, the parties will
try to resolve the dispute by negotiation. If the dispute has not been resolved by such
negotiation, the parties will submit the dispute for administered mediation. In the event a dispute
cannot be resolved by mediation, the following provisions shall apply:
A. As to any unresolved dispute, upon the written request of any party, the
dispute shall be submitted to an arbitrator to be selected by the parties. If
the parties cannot agree within ten (10) days after the receipt of written
notice from the other party requesting it to do so, the appointment shall be
left to the American Arbitration Association.
B. Except as otherwise specifically set forth herein; the arbitrator shall
conduct the arbitration in accordance with the Commercial Arbitration
Rules of the American Arbitration Association. The arbitration shall take
place in Paducah, Kentucky.
C. The decision in writing of the arbitrator, when filed with the parties
hereto, shall be final and binding on both parties. The arbitrator shall
apply:
award the costs and expenses incurred by the prevailing party against the
non -prevailing parry to such extent as determined by the arbitrator as the
arbitrator deems just and equitable. Judgment may be entered upon the
final decision of the arbitrator in any court having jurisdiction. Any party
shall have the right to sue in court to enforce the arbitration award. In
accepting arbitration, the parties expressly waive trial by jury.
6. Miscellaneous Provisions. The following miscellaneous provisions shall
A. Notices. All notices provided for herein will be in writing and addressed
to the parties at the addresses as referenced above.
B. Other Rights and Remedies. The duties and obligations imposed by this
Agreement and the rights and remedies available thereunder are in
addition to and not a limitation of any duties, obligations, rights, and
remedies, otherwise imposed or available by law.
C. Governing Law. This document shall, in all respects, be governed by the
laws of the state of Kentucky.
D. Entire Agreement. This Agreement expresses the complete agreement of
the parties and supersedes all prior written or oral agreements or
understandings between the City and the Developer with regard to the
matters addressed herein. The making, execution, and delivery of this
Agreement by the parties hereto have not been induced by any
representations, statements, warranties or agreements other than those
expressly set forth herein.
E. Amendments. This Agreement may not be modified or amended unless
by a writing signed by both parties hereto.
F. Time. All times referred herein shall be strictly construed, as all of such
times shall be deemed of the essence.
G. Counterparts. This Agreement may be executed simultaneously or in any
number of counterparts, each of which shall be deemed to be an original,
but all of which together shall constitute one and the same agreement.
H. Successors and Assigns. This Agreement shall be binding upon the
parties hereto, their heirs, successors, and assigns.
I. Effective Date of Agreement. The effective date of this Agreement shall
be the date that the mayor of the City of Paducah executes this Agreement.
IN WITNESS WHEREOF, the parties hereto have on the date set forth above caused this
instrument to be duly EXECUTED AND DELIVERED by authority duly given.
CITY OF PADUCAH, KENTUCKY
By
William Paxton, Mayor
SIGNATURE HOMES OF PADUCAH,LLC
By
Title
STATE OF KENTUCKY )
COUNTY OF McCRACKEN )
The foregoing instrument was acknowledged before me this day of
, 2010, by William Paxton, Mayor, of the City of Paducah, Kentucky.
My commission expires
Notary Public, State at Large
STATE OF KENTUCKY )
COUNTY OF McCRACKEN )
The foregoing instrument was acknowledged before me this day of ,
2010, by , (title) of Signature
Homes of Paducah, LLC, a Kentucky limited liability company, on behalf of said company.
My commission expires
7
Notary Public, State at Large