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Home My WebLink AboutMO # 1877359 MUNICIPAL ORDER NO. 1877 A MUNICIPAL ORDER OF THE CITY OF PADUCAH, KENTUCKY, AUTHORIZING A SECOND EXTENSION UNDER THE HOTEL DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PADUCAH, KENTUCKY, AND PADUCAH RIVERFRONT HOTEL LP, WITH RESPECT TO A PUBLIC PROJECT; AUTHORIZING THE EXECUTION OF THE AGREEMENT WHEREAS, on June 29, 2015, the City and Paducah Riverfront Hotel LP (the "Developer") entered into a Hotel Development Agreement (the "Development Agreement"), whereby the City and the Developer agreed that the City would lease 600 North 4th Street, Paducah, McCracken County, Kentucky (the "Premises") to the Developer in exchange for the Developers agreement to construct, develop and operate an upscale hotel on the Premises (the "Project"); and WHEREAS, on October 20, 2015, the City adopted Municipal Order 1867 which authorized the City Manager to sign an agreement with Paducah Riverfront Hotel LP to grant an extension to the time period described in Section 4. h. and Section 6. c. of the Development Agreement in order to provide the Developer and the Paducah -McCracken County Convention Center (the PMCCC") sufficient time to negotiate and execute definitive management and/or operational agreements for the Convention Center and eliminating this commitment of Developer as a Condition Subsequent to the City's commitment to lease the Property to the Developer for the Project; and WHEREAS, the City desires to grant a second extension to the time period described in Section 4. h. and Section 6. c. of the Development in order to provide the Developer and the Paducah -McCracken County Convention Center (the PMCCC") sufficient time to negotiate and execute definitive management and/or operational agreements for the Convention Center and eliminating this commitment of Developer as a Condition Subsequent to the City's commitment to lease the Property to the Developer for the Project. NOW THEREFORE, BE IT ORDERED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Recitals and Authorization. The City hereby approves the Extension Amendment to Hotel Development Agreement (this "Agreement") among the City and the Developer 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 interest of the City to enter into the Agreement for the purposes therein specified, and the execution and delivery of the Agreement is hereby authorized and approved. The City Manager is hereby authorized to execute the Agreement with such changes not inconsistent with this Order 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 the Agreement. 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 360 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 Order 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 Order are, to the extent of such conflict, hereby repealed and the provisions of this Order shall prevail and be given effect. Section 5. Effective Date. This Order shall be in full force and effect on and after the date as approved by the Board of Commissions of the City of Paducah, Kentucky. ATTEST: Q Tammara S. Sanderson, City Clerk Adopted by the Board of Commissioners, December 15, 2015 Recorded by Tammara S. Sanderson, City Clerk, December 15, 2015 \mo\agree-extension-2nd-hotel development 10) EXHIBIT A SECOND AMENDMENT TO DEVELOPMENT AGREEMENT A SECOND EXTENSION UNDER THE HOTEL DEVELOPMENT AGREEMENT THIS EXTENSION UNDER THE HOTEL DEVELOPMENT AGREEMENT made and entered into on this day of December, 2015 (the "Effective Date") by and between PADUCAH RIVERFRONT HOTEL LP, a Kentucky ULPA Limited Partnership, by and through its General Partner, Paducah Hotel Inc., a Kentucky corporation, having an address of 1401 Spring Bank Drive, Building A, Suite 8, Owensboro, KY 42303, (hereinafter referred to as the "Developer"); CITY OF PADUCAH, a Kentucky home class city having an address of 300 South 5`" Street, PO Box 2267, Paducah, KY 42002-2267 (hereinafter referred to as the "City"). WITNESSETH: WHEREAS, on June 29, 2015, the City and the Developer, entered into a Hotel Development Agreement (the "Development Agreement") regarding the Developer's development and construction of an upscale brand hotel franchised by a major hotel chain and the further use, occupancy, operation, management by the Developer of the hotel and the publically owned convention center, generally known as the Julian Carroll and Paducah Expo Convention Center (the "Convention Center") (the "Project"); and WHEREAS, on October 20, 2015, the City adopted Municipal Order 1867 which authorized the City Manager to sign an agreement with Paducah Riverfront Hotel LP to grant an extension to the time period described in Section 4. h. and Section 6. c. of the Development Agreement in order to provide the Developer and the Paducah -McCracken County Convention Center (the PMCCC") sufficient time to negotiate and execute definitive management and/or operational agreements for the Convention Center and eliminating this commitment of Developer as a Condition Subsequent to the City's commitment to lease the Property to the Developer for the Project; and WHEREAS, the City desires to grant a second extension to the time period described in Section 4. h. and Section 6. c. of the Development in order to provide the Developer and the Paducah -McCracken County Convention Center (the PMCCC") sufficient time to negotiate and execute definitive management and/or operational agreements for the Convention Center and eliminating this commitment of Developer as a Condition Subsequent to the City's commitment to lease the Property to the Developer for the Project. NOW THEREFORE, for and in consideration of $1.00 cash in hand paid, the receipt and sufficiency is hereby acknowledged by all parties, and the mutual covenants and conditions contained herein the parties agree as follows: 1. Extensions under the Development Agreement. a. Section 4. Subparagraph h., of the Development agreement is hereby revoked and stricken in its entirety and shall read as follows: 4. h. Negotiate and execute definitive management and/or operational agreements with PMCCC to operate the Convention Center on or before the 1 st day of March, 2015. b. Section 6. Subparagraph c., "Conditions Subsequent," is hereby revoked and stricken in its entirety. 2. Reaffirmation of the Development Agreement. modifications set forth herein, all other terms and provisions entered into between the parties are expressly acknowledged, parties hereto. All parties hereby agree to perform in strict provisions as set forth under the Development Agreement. 3 Except for the extension and of the Development Agreement reaffirmed, and ratified by all accordance with the terms and 361 362 4. Miscellaneous Provisions. This Agreement shall be fully binding upon the parties hereto and their heirs, successors, and assigns as of the Effective Date. IN WITNESS WHEREOF, the parties have respectively caused this Agreement to be executed on the day and year first above written. DEVELOPER: PADUCAH RIVERFRONT HOTEL LP, By: Paducah Hotel Inc., a Kentucky corporation, Its General Partner By: GLENN D. HIGDON Title: WIF."IMEW I1[QA GLENN D. HIGDON CITY: CITY OF PADUCAH, KENTUCKY By:_ Title: