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HomeMy WebLinkAboutMO # 2078210465 MUNICIPAL ORDER NO. 2078 AN MUNICIPAL ORDER OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A MEMORANDUM OF AGREEMENT BY AND AMONG THE CITY OF PADUCAH, KENTUCKY, AND RICHARD CHRISTION HUTSON AND VIRGINIA P. HUTSON, WITH RESPECT TO THE ELIMINATION OF A CERTAIN DILAPIDATED STRUCTURE AND THE REHABILITATION, STABILIZATION AND REVITALIZATION OF A CERTAIN COMMERCIAL STRUCTURE LOCATED AT 125 NORTH 11TH STREET, WITHIN THE CORPORATE BOUNDARIES OF THE CITY OF PADUCAH AND COMMONLY REFERRED TO AS "SLIM'S BBQ"; AND AUTHORIZING THE EXECUTION OF SUCH MEMORANDUM OF AGREEMENT WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly redevelopment of blighted areas located within its corporate boundaries and of insuring the integrity and quality of its existing downtown business area; and WHEREAS, Richard Christion Hutson and wife, Virginia P. Hutson (the "Investor") are in the process of acquiring from the City that certain real estate located at 125 North 1 lt' Street, Paducah, McCracken County, Kentucky, upon which is situated a dilapidated residential structure and commercial diner structure generally known as Slim's BBQ (the "Property"); and WHEREAS, Investor are acquiring the Property with the specific intent and purpose of demolishing 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 area and in accordance with designs and plans to be approved by the Fire Prevention Division of the City of Paducah, at their sole cost and expense, with a capital investment of at least $50,000.00, exclusive of the value of the Property (the "Renovation Project"); and WHEREAS, the Renovation Project will have a positive impact on the entire community by stimulating the local economy, expanding the tax base, and promoting the redevelopment of the downtown business area; and WHEREAS, as an incentive to the Investor to complete the Renovation Project, the City is agreeable to providing a certain economic incentive to Investor for purposes of defraying certain demolition and stabilization costs to be incurred by Investor in completing the Renovation Project; and NOW THEREFORE, BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Recitals and Authorization. The City hereby approves the Memorandum of Agreement among the City and Investor (the "MOA") 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 the MOA for the purposes therein specified, and the execution and delivery of the MOA is hereby authorized and approved. The 234 Mayor of the City is hereby authorized to execute the MOA, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the MOA with such changes in the MOA not inconsistent with this Municipal 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 such MOA by such official. 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. 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: Ljv�a 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\1\40A-$6,500-125 N 11th-Hutsons 235 EXHIBIT A TO MUNICIPAL ORDER 210442 MEMORANDUM OF AGREEMENT This is a Memorandum of Agreement (this "Agreement") made and entered into on the day of February, 2018, by and between the CITY OF PADUCAH, KENTUCKY ("City"), , 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, and RICHARD CHRISTION HUTSON and wife, VIRGINIA P. HUTSON, whose mailing address is 1104 Olde Friedman Lane, Paducah, Kentucky 42001 (collectively, the "Investor"). WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly redevelopment of blighted areas located within its corporate boundaries and of insuring the integrity and quality of its existing downtown business area; and WHEREAS, City is the present owner of certain real estate located at 125 North 11th Street, Paducah, McCracken County, Kentucky, upon which is situated a dilapidated residential structure and commercial diner structure generally known Slim's BBQ (the "Property"); and WHEREAS, City acquired the Property for purposes of demolishing both the residential and commercial diner structures as both of them are not fit for habitation and are unsecure, creating a public nuisance and health hazard to the citizens of Paducah and for purposes of the elimination of blighted areas and insure the integrity and quality of its existing downtown business area; and WHEREAS, Investor desires to acquire the Property with the specific intent and purpose of demolishing 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 area and in accordance with designs and plans to be approved by the Fire Prevention Division of the City !� of Paducah, at their sole cost and expense, with a capital investment of at least $50,000.00, exclusive of the value of the Property (the "Renovation Project'); and WHEREAS, the Renovation Project will have a positive impact on the entire community by stimulating the local economy, expanding the tax base, and promoting the redevelopment of the downtown business area; and WHEREAS, as an incentive to the Investor to complete the Renovation Project the City is agreeable to providing certain economic incentive to Investor for purposes of defraying certain demolition and stabilization costs to be incurred by Investor in completing the Renovation Project; and WHEREAS, it is deemed necessary and advisable that this Agreement be entered into by the parties setting forth their agreement with respect to the economic incentives to be provided to defray the costs thereof. NOW, THEREFORE, in consideration of the foregoing premises, and for other value consideration, the legal adequacy and sufficiency of which is hereby acknowledged by all parties hereto, the parties do covenant and agree as follows: 1. Purchase and Sale of Property. As a result of the sealed bidding procedure of the City, City has agreed to sell and convey unto Investor, and Investor has agreed to purchase from City, the Property, and all improvements, subject to the terms and conditions as hereinafter defined. 2. Purchase Price. The purchase price to be paid by the Investor to the City for the Property shall be One Dollar ($1.00). The purchase price shall be paid by Investor at time of closing. 3. Conditions to Conveyance. It is expressly agreed and understood that the City's obligation to sell and convey the Property to the Investor, and Investor's right to acquire 236 the Property from the City, shall be subject to Investor's substantially completing the Renovation Project within one (1) year from the date of this deed of conveyance. 4. Closing. Sale and purchase contemplated by this Agreement shall be consummated in Paducah, Kentucky, once the sale and conveyance are approved by the City Commission, on a date and time mutually agreeable to the parties. At the closing, City shall deliver to Investor the special warranty deed of conveyance attached hereto as Exhibit A. 5. Taxes and Assessments. Taxes and assessments for the current year, if any, shall be the sole responsibility of Investor. 6. Transfer of Title --Risk of Loss. Title and possession to the Property sold hereunder shall pass to Investor on the closing date upon delivery to Investor the aforementioned deed of conveyance, at which time risk of loss shall pass to Investor. 7. Brokerage Fees. If any brokerage or finder's fee claims shall be made based on this Agreement, the defense of said claim shall be the responsibility of the party that the claimant asserts made the commitment on which the claim is based, and additionally, such party shall pay and satisfy such claim should the claim be deemed valid by any court of competent jurisdiction. Additionally, such party shall indemnify the other party from any and all costs and expenses incurred by reason of such claim, including reasonable attorney fees. 8. The City's Economic Incentive. The City agrees to reimburse Investor, for the actual and reasonable costs and expenses incurred by Investor up to an amount not to exceed $6,500 to defray certain demolition costs incurred by Investor in the completion of the Renovation Project. Written evidence deemed acceptable by the City's Director of the Planning Department of such actual and reasonable costs must be provided at the time of Investor's request for reimbursement. 9. Miscellaneous Provisions. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective legal representatives, heirs, successors and permitted assigns. The Investor shall not assign their rights and obligations hereunder, in whole or in part, without the prior consent of the City. It is agreed and understood between the parties that this Agreement regarding sale of assets together with the appendices represents the entire and exclusive agreement between the parties, and that all prior representations, covenants, warranties, understandings and agreements are merged herein. This Agreement may only be modified in a writing executed by all parties hereto. This Agreement shall be governed and construed under the laws of the Commonwealth of Kentucky. This Agreement may not be modified or amended unless by a writing signed by both parties hereto. This Agreement shall be of no force or effect unless and until it shall have been executed and delivered by both the City and the Investor. INVESTOR: WITNESS signatures of the parties as of the year and date first above written. CITY: CITY OF PADUCAH, KENTUCKY IM RICHARD CHRISTION HUTSON MAYOR BRANDI HARLESS VIRGINIA P. HUTSON 237 EXHIBIT A TO MOA 210441 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 238 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. (7)(b)• 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 MAYOR BRANDI HARLESS RICHARD CHRISTION HUTSON VIRGINIA P. HUTSON 239 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 NOTARY PUBLIC, STATE AT LARGE NOTARY ID# Send current year tax bill to: Mr & Mrs Chris Hutson 1104 Olde Friedman Lane Paducah, KY 42001