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Home My WebLink AboutMO # 2077210460 MUNICIPAL ORDER NO. 2077 AN MUNICIPAL ORDER AUTHORIZING AND APPROVING THE SALE OF SURPLUS MUNICIPALLY OWNED REAL PROPERTY LOCATED AT 125 NORTH 11TH STREET, PADUCAH, MCCRACKEN COUNTY, KENTUCKY, FOR PURPOSES OF REDEVELOP AND REVITALIZATION IN THE DOWNTOWN BUSINESS AREA WHEREAS, the City of Paducah ("City") is the present owner of certain surplus real property with dilapidated residential and commercial improvements located at 125 North 11th Street, Paducah, McCracken County, Kentucky, commonly referred to as "Slim's BBQ" (the "Property"), which was purchased with the intent and purpose of demolishing the dilapidated structures and securing the Property; and WHEREAS, City has determined that the Property is no longer necessary, appropriate, or in the best interests of the operations of the City and its citizens and that the Property should be sold as surplus real estate; and WHEREAS, the City offered the Property for sale as surplus property in accordance with KRS 82.083 and the sealed bidding procedure set forth in the City of Paducah Codes of Ordinances, Section 2-668; and WHEREAS, Richard Christion Hutson and wife, Virginia P. Hutson, was the successful bidder offering to purchase the Property for a purchase price in the amount of $1.00 and its commitment to invest at least $50,000.00 in the demolition of the dilapidated residential structure and rehabilitating, stabilizing and revitalizing the commercial diner structure and improvements into a habitable and quality condition which is commensurate with other commercial structures within the City of Paducah, Kentucky and in accordance with designs and plans to be approved by the Fire Prevention Division of the City (the "Renovation Project"); and NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: Section 1. Recitals and Authorizations. The Board of Commissioners hereby declares the Property to be surplus property as it relates to the operations of the City. Further, the Board of Commissioners hereby approves the sale of the Property to Richard Christion Hutson and wife, Virginia P. Hutson, for a purchase price in the amount of $1.00 and its commitment to complete the Renovation Project. That the Mayor of the City of Paducah, Kentucky, be and is hereby authorized to execute and deliver a special warranty deed of conveyance of the Property with a reverter provision, together with all other documentation necessary to effectuate the sale and transfer of the Property. A copy of the proposed deed is attached hereto as Exhibit A. Section 2. Severability. If any section, paragraph or provision of this Municipal Order 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 Municipal Order. 229 Section 3. Compliance With Open Meetings Laws. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Municipal 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 Municipal Order are, to the extent of such conflict, hereby repealed and the provisions of this Municipal Order shall prevail and be given effect. Section 5. Effective Date. This Municipal Order shall be in full force and effect on and after the date as approved by the Board of Commissioners of the City of Paducah, Kentucky. Mayor Brandi Harless ATTEST: Tammara S. Sanderson, City Clerk Adopted by the Board of Commissioners, February 27, 2018 Recorded by Tammara S. Sanderson, City Clerk, February 27, 2018 \mo\prop sale — 125 N 11t' - Hutsons 230 EXHIBIT A TO MUNICIPAL ORDER DEED OF CONVEYANCE THIS DEED made and entered into this the day of , 2018, by and between CITY OF PADUCAH, KENTUCKY, a municipal corporation of the Home Rule Class existing under the laws of the Commonwealth of Kentucky, and a body politic and corporate, whose address is Post Office Box 2267, Paducah, Kentucky 42002-2267, hereinafter called Grantor, and RICHARD CHRISTION HUTSON and wife, VIRGINIA P. HUTSON, whose mailing address is 1104 Olde Friedman Lane, Paducah, Kentucky 42001, hereinafter collectively called Grantee; WITNESSETH: THAT FOR AND IN CONSIDERATION of the sum of $1.00, cash in hand paid by Grantee to Grantor, the receipt of which is hereby acknowledged, Grantor sold and does by these presents grant, bargain, sell, alien and convey unto Grantee, for their joint lives, with remainder in fee simple to the survivor of them, his or her heirs and assigns forever, together with all the improvements, appurtenances and rights thereunto belonging, the following described property (the "Property"), lying and being in McCracken County, Kentucky, and more particularly described as follows: Beginning at a point on the west side of Eleventh Street 80 feet south of the southwest corner of Eleventh and Jefferson Streets; thence in a southerly direction along the west line of Eleventh Street 80 feet to an alley; thence at right angles and in a westerly direction toward Twelfth Street a distance of 40 feet; thence at right angles and in a northerly direction parallel with Eleventh Street a distance of 80 feet; thence at right angles and in an easterly direction along the dividing line of the property described and the Shell Oil Company property a distance of 40 feet to the point of beginning on Eleventh Street. Being the same property conveyed to The City of Paducah, Kentucky by deed dated July 17, 2017, and recorded in Deed Book 1348, page 631, in the McCracken County Clerk's Office. TO HAVE AND TO HOLD the same, together with all improvements thereon and all rights and appurtenances thereunto pertaining unto Grantee, for their joint lives, with remainder in fee simple to the survivor of them, his or her heirs and assigns forever, with Covenant of Special Warranty, except easements, covenants and restrictions of record. It is mutually agreed by the parties hereto, their successors and assigns, that this conveyance and transfer is made and accepted upon the following conditions and commitment of Grantee to Grantor: (a) Grantee shall raze, at their sole cost and expense, the residential structure located on the Property and shall rehabilitate, stabilize and revitalize, at their sole cost and expense, the commercial diner structure and improvements, generally known Slim's BBQ, which is also located on the Property in accordance with designs and plans to be approved by the Fire Prevention Division of the 231 City of Paducah, with a capital investment of at least $50,000.00, exclusive of the value of the Property (the "Project"), within one (1) year from the date of this deed of conveyance. (b) In the event Grantee has not substantially completed the Project within one (1) year from the date of this deed of conveyance, Grantee agrees that this deed shall be forfeited and the Property shall at once revert back to Grantor and Grantee shall promptly take all steps to cause the transfer and re -conveyance of the Property back to Grantor, at no out-of-pocket cost to the Grantor, such that the Grantor is restored with merchantable fee title to the Property free and clear of any mortgages, liens, encumbrances, and adverse interests. The parties further agree that substantial completion of the Project shall mean that a certificate of occupancy has been issued by the City of Paducah's inspection department. (c) Grantee will be financing the rehabilitation and revitalization of the Property with a mortgage loan from The Paducah Bank and Trust Company ("Lender") secured by a mortgage on the Property in the principal amount of approximately $50,000.00. As a condition for providing the aforesaid financing, Lender is requiring that its mortgage loan and its mortgage be superior to the rights of the Grantor reserved and retained herein. As a result, Grantor hereby subordinates Grantor's entire rights reserved and retained herein in and to the Property to the mortgage lien of Lender, and any renewal, extension, or refinancing of the mortgage loan. It is further hereby agreed that Grantor's right and interest in the Property shall be deemed automatically extinguished and of no further force and effect in the event and at such time the Property is sold through a Master Commissioner's Sale pursuant to a foreclosure action to enforce the Lender's mortgage lien, or any renewal, extension, or refinancing of the mortgage loan. Grantor and Grantee hereby swear and affirm, under penalty of perjury, that the foregoing transfer of real property is made by gift, nominal consideration, or no consideration and, further, that the estimated fair cash value for the property hereby transferred is: $30,000.00. The recording of this deed is exempt from the real estate transfer tax pursuant to KRS 142.050 IN WITNESS WHEREOF, the Grantor and Grantee have hereunto set their hands. CITY OF PADUCAH, KENTUCKY :1 MAYOR BRANDI HARLESS RICHARD CHRISTION HUTSON 232 VIRGINIA P. HUTSON STATE OF KENTUCKY ) COUNTY OF MCCRACKEN ) The foregoing instrument was sworn and acknowledged before me this day of , 2018, by Mayor Brandi Harless of the City of Paducah, Kentucky, on behalf of said entity, Grantor. My commission expires NOTARY PUBLIC, STATE AT LARGE NOTARY ID# STATE OF KENTUCKY ) COUNTY OF MCCRACKEN ) The foregoing instrument was sworn and acknowledged before me this day of , 2018, by Richard Christion Hutson, and wife, Virginia P. Hutson., Grantee. My commission expires THIS INSTRUMENT WAS PREPARED BY THE UNDERSIGNED WITHOUT THE BENEFIT OF A TITLE EXAMINATION AND BASED UPON INFORMATION SUPPLIED BY THE GRANTOR. THE UNDERSIGNED ASSUMES NO RESPONSIBILITY FOR ITS ACCURACY. This instrument prepared by: DENTON LAW FIRM, PLLC P. O. Box 969 Paducah, KY 42002-0969 233 NOTARY PUBLIC, STATE AT LARGE NOTARY ID# Send current year tax bill to: Mr & Mrs Chris Hutson 1104 Olde Friedman Lane Paducah, KY 42001