HomeMy WebLinkAbout2007-12-7376513
96262
ORDINANCE NO. 2007-12-7376
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING THE
FIRST AMENDMENT TO INTERLOCAL COOPERATIVE AGREEMENT BY AND
AMONG THE CITY OF PADUCAH, KENTUCKY, MCCRACKEN COUNTY,
KENTUCKY,AND PADUCAH-MCCRACKEN COUNTY RIVERPORT AUTHORITY
WITH RESPECT TO THE PLAN OF FINANCING PROVIDED FOR THE
PURCHASE OF 2308 SOUTH 4TH STREET, PADUCAH, MCCRACKEN COUNTY,
C KENTUCKY
WHEREAS, on or about November 31, 2005, the City of Paducah, Kentucky ("City"),
McCracken County, Kentucky ("County"), and the Paducah -McCracken County Riverport Authority
("Riveport") entered into an Interlocal Cooperation Agreement (the "Agreement") which sets forth in
detail the common plan of finance provide by City and County to enable Riverport to purchase at a
purchase price of $1,200,000.00 a certain tract of real property located at 2308 South 4t' Street, Paducah,
McCracken County, Kentucky, together with all improvements, fixtures and appurtenant property rights,
privileges, fleeting, and riparian rights thereto, (the "Property") for purposes of economic development
along the Ohio and Tennessee Rivers within the City of Paducah, County of McCracken; and
WHEREAS, on April 26, 2007 Riverport did accept the bona fide offer of Western Rivers
Properties, LLC ("Western") to purchase the Property at a reduced purchase price of $1,100,000.00 for
purposes of establishing its corporate headquarters and marine service center in Paducah, McCracken
County, Kentucky (the "Public Project"); and
WHEREAS, as an additional financial incentive for Western to establish the Public Project in
Paducah, McCracken County, Kentucky, Riverport agreed to finance the entire purchase price for a 15
year term; and
WHEREAS, on May 16, 2007, the sale, transfer, and financing of the Property were
consummated between Riverport and Western due to the positive impact the Public Project would have
on the community by stimulating the local economy, expanding the tax base, and reducing
unemployment; and
WHEREAS, the leadership of the City and County strongly supported the location of the Public
Project in Paducah, McCracken County, Kentucky, and the financial incentives provided by Riverport to
Western for the establishment of the Public Project; and
WHEREAS, as a result of the aforesaid financial incentives provided by Riverport to Western,
Riverport has requested that the City and County amend the terms of the common plan of financing
provided by the City and County to Riverport, as evidenced in the Agreement, by the forgiveness of a
portion of the indebtedness owed by Riverport to the City and the County, to which the City is agreeable;
and
WHEREAS, in order to further the public purposes of stimulating the local economy, expanding
the tax base, and reducing unemployment, it is necessary and desirable for the City to authorize and
approve the first amendment to the Agreement forgiving $33,333.00 of the indebtedness owned by
Riverport to the City.
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 the First Amendment to
Interlocal Cooperative Agreement among the City, County and Riverport (the "First Amendment") 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 First Amendment for the
purposes therein specified, and the execution and delivery of the First Amendment is hereby authorized
and approved. The Mayor of the City is hereby authorized to execute the First Amendment, together with
such other agreements, instruments or certifications which may be necessary to accomplish the
transaction contemplated by the First Amendment with such changes in the First 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 such
First Amendment by such official.
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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.
AT EST:
Zf 4,6tr-k
Tammara S. Brock, City Clerk
Introduced by the Board of Commissioners, November 27, 2007
Adopted by the Board of Commissioners, December 11, 2007
Recorded by City Clerk, December 11, 2007
Published by The Paducah Sun, December 18, 2007
\ord\agree-interlocal city, co, riverport $33,000
CERTIFICATION
I hereby certify that the above is a true and correct copy of an ordinance adopted by the City of
Paducah, Kentucky, on December 11, 2007.
2
Tammara S. Brock, City Clerk
515
EXHIBIT A TO ORDINANCE
85684ver2
FIRST AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT
THIS FIRST AMENDMENT TO INTERLOCAL COOPERATION AGREEMENT
(the "Amendment") is made and executed by and among CITY OF PADUCAH, a city of the second
class of the Commonwealth of Kentucky, ("City"); McCRACKEN COUNTY, KENTUCKY, a political
subdivision of the Commonwealth of Kentucky, ("County"); and PADUCAH-MCCRACKEN
COUNTY RIVERPORT AUTHORITY, a body corporate and politic created by the ordinances of the
City of Paducah, Kentucky, and McCracken County, Kentucky pursuant to authority granted by the
legislature of the Commonwealth of Kentucky in KRS 65.510, et. seq., ("Riverport").
WITNESSETH:
WHEREAS, on or about November 31, 2005, the parties entered into an Interlocal Cooperation
Agreement (the "Agreement") which sets forth in detail the common plan of finance provide by City and
County to enable Riverport to purchase at a purchase price of $1,200,000.00 a certain tract of real
property located at 2308 South 4`t' Street, Paducah, McCracken County, Kentucky, together with all
improvements, fixtures and appurtenant property rights, privileges, fleeting, and riparian rights thereto,
(the "Property") for purposes of economic development along the Ohio and Tennessee Rivers within the
City of Paducah, County of McCracken; and
WHEREAS, on March 22, 2006, the Agreement was record in the McCracken County Court
Clerk's office in Deed Book 1088, page 503; and
WHEREAS, on April 26, 2007 Riverport did accept the bona fide offer of Western Rivers
Properties, LLC ("Western") to purchase the Property at a reduced purchase price of $1,100,000.00 for
purposes of establishing its corporate headquarters and marine service center in Paducah, McCracken
County, Kentucky (the "Public Project"); and
WHEREAS, as an additional financial incentive for Western to establish the Public Project in
Paducah, McCracken County, Kentucky, Riverport agreed to finance the entire purchase price for a 15
year term; and
WHEREAS, on May 16, 2007, the sale, transfer, and financing of the Property were
consummated between Riverport and Western due to the positive impact the Public Project would have
on the community by stimulating the local economy, expanding the tax base, and reducing
unemployment; and
WHEREAS, the leadership of the City and County strongly supported the location of the Public
Project in Paducah, McCracken County, Kentucky, and the financial incentives provided by Riverport to
Western for the establishment of the Public Project; and
WHEREAS, as a result of the aforesaid financial incentives provided by Riverport to Western,
Riverport has requested that the City and County amend the terms of the common plan of financing
provided by the City and County to Riverport, as evidenced in the Agreement, by the forgiveness of a
portion of the indebtedness owed by Riverport to the City and the County, to which the City and County
are agreeable; and
WHEREAS, City, County, and Riverport do now desire to execute the Amendment evidencing
their agreement.
NOW, THEREFORE, in consideration of the foregoing premises, and for other good and
valuable consideration, the legal adequacy and sufficiency of which is hereby acknowledged by all parties
hereto, the City, the County, and the Riverport do covenant and agree as follows:
I. Amendment. Section 4 of the Agreement is hereby amended so that same shall
hereinafter read as follows:
4. Terms of Financing_ Agreement.
A. Riverport promises and agrees to promptly pay to the order of the City the
principal sum of THREE HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SEVEN AND
00/100 DOLLARS ($366,667.00), in United States Currency, with no interest. Riverport shall repay the
indebtedness by the payment of one (1) installment of FOURTY-SIX THOUSAND SIX HUNDRED
SIXTY-SEVEN AND 00/100 DOLLARS ($46,667.00) on or before the 1St day of December, 2007, and
four (4) equal successive annual installments of EIGHTY THOUSAND AND 00/100 DOLLARS
3
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516
($80,000.00) commencing on the 1st day of December, 2008, with a like installment payment to be due
and payable on the l st day of December of each successive year, the final installment of principal due on
the 1 st day of December, 2011.
B. Riverport promises and agrees to promptly pay to the order of the County the
principal sum of THREE HUNDRED SIXTY-SIX THOUSAND SIX HUNDRED SIXTY-SEVEN AND
00/100 DOLLARS ($366,667.00), in United States Currency, with no interest. Riverport shall repay the
indebtedness by the payment of one (1) installment of FOURTY-SIX THOUSAND SIX HUNDRED
SIXTY-SEVEN AND 00/100 DOLLARS ($46,667.00) on or before the lst day of December, 2007, and
four (4) equal successive annual installments of EIGHTY THOUSAND AND 00/100 DOLLARS
($80,000.00) commencing on the 1st day of December, 2008, with a like installment payment to be due
and payable on the l st day of December of each successive year, the final installment of principal due on
the 1 st day of December, 2011.
H. Consent to the Sale of the Property. City and County acknowledge and ratify the sale
of the Property by Riverport to Western.
III. Reaffirmation of Ajreement. City, County, and Riverport by their execution hereof,
do ratify and reaffirm all other terms and conditions of the Agreement and acknowledge the Agreement to
be in full force and effect, the same having been amended only as set forth herein.
IV. Effective Date . The effective date of the Amendment shall be on the date when
said document is executed by the City, County, and Riverport after approval of governing body of each.
IN WITNESS WHEREOF, the parties hereto have set their hands on the date below written.
CITY OF PADUCAH, KENTUCKY
By:
William F. Paxton, Mayor
Date:
McCRACKEN COUNTY, KENTUCKY
By:
Van Newberry, Judge Executive
Date:
STATE OF KENTUCKY )
COUNTY OF McCRACKEN )
PADUCAH-McCRACKEN COUNTY
RIVERPORT AUTHORITY
By:
Steve Kight, Chairman
Date:
The foregoing instrument was acknowledged before me this day of
_, 2007, by William F. Paxton, Mayor, City of Paducah, Kentucky, on behalf of said City.
My commission expires
0
Notary Public, State at Large
STATE OF KENTUCKY )
COUNTY OF McCRACKEN )
County.
The foregoing instrument was acknowledged before me this day of
_, 2007, by Van Newberry, McCracken County Judge Executive, on behalf of said
My commission expires
Notary Public, State at Large
STATE OF KENTUCKY )
COUNTY OF McCRACKEN )
The foregoing instrument was acknowledged before me this day of
, 2007, by Steve Kight, Chairman of the Paducah -McCracken County Riverport
Authority, on behalf of said Authority.
My commission expires
Notary Public, State at Large
APPROVED BY THE GOVERNOR'S OFFICE OF LOCAL DEVELOPMENT OF THE
COMMONWEALTH OF KENTUCKY, AS REQUIRED BY KRS CHAPTER 65.210 et seq.:
' By._
Title:
Date:
STATE OF KENTUCKY )
COUNTY OF
The foregoing instrument was acknowledged before me this
, 2007, by ,
the Governor's Office of Local Development of the Commonwealth of Kentucky.
My commission expires
This instrument was prepared by:
DENTON & KEULER, LLP
POST OFFICE BOX 929
PADUCAH, KENTUCKY 42002-0929
5
day of
_ (title) on behalf of
Notary Public, State at Large
517