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Home My WebLink AboutMO #2230MUNICIPAL ORDER NO. 2230 A MUNICIPAL ORDER AUTHORIZING AND APPROVING A PADUCAH "CITY BLOCK" PROGRAM DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PADUCAH AND WEYLAND VENTURES DEVELOPMENT FOR PROGRAM DEVELOPMENT FOR A FUTURE HOTEL, PARKING, OPEN SPACE, AND MIXED-USE RESIDENTIAL BUILDING LOCATED AT THE CITY BLOCK BOUNDED BY SECOND STREET, BROADWAY, NORTH WATER STREET AND JEFFERSON STREET BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTIONI. The City hereby authorizes and approves a City Block Program Development Agreement with Weyland Ventures Development in substantially the same form attached hereto and made part hereof (Exhibit A) for program development for a future hotel, parking, open space, and mixed-use residential building located at the city block bounded by Second Street, Broadway, North Water Street and Jefferson Street and authorizes the Mayor to execute the Agreement. SECTION 2. This order shall be in full force and effect from and after the date of its adoption. Qt��_ _��® Brandi Harless, Mayor ATTEST: Lindsay Parish, City rerk Adopted by the Board of Commissioners, April 23, 2019 Recorded by Lindsay Parish, City Clerk, April 23, 2019 \MO\agree- Weyland Ventures City Block Program Development EXHIBIT A WEYLAND VENTURES/ CITY OF PADUCAH PADUCAH "CITY BLOCK" PROGRAM DEVELOPMENT AGREEMENT THIS DEVELOPMENT AGREEMENT ("Development Agreement" or "Agreement") is made and entered into as of the of 2019, (the "Effective Date") by and between WEYLAND VENTURES DEVELOPMENT, having an address of 815 West Market Street, Suite 110, Louisville, KY. 40202, (hereinafter referred to as the "Developer"); and CITY OF PADUCAH, a Kentucky second class city having an address of 300 South 5th Street, PO Box 2267, Paducah, KY 42002-2267 (hereinafter referred to as the "City"). WHEREAS, the City is the owner of certain real property bounded by Second Street, Broadway, North Water Street, and Jefferson Street; located fully within the proposed Tax Increment Finance District (hereinafter referred to as the "Site"); and WHEREAS, the City seeks to continue the revitalization of its downtown area, increase the vibrancy and vitality of the area, add public space, improve connectivity, diversify housing options, and respect the urban character and design of its built environment; and WHEREAS, the Developer has extensive experience in urban development, planning, and historic preservation that advances these objectives; and WHEREAS, the City and the Developer wish to enter into this Agreement to create a Development Program (hereinafter referred to as the "Program") for the Site. NOW, THEREFORE, in consideration of the foregoing premises, the City and Developer do hereby agree to the following: 1. The City shall grant the Developer, over a period of 12 months, the exclusive right to develop the Program, under the terms and conditions as specified in this Agreement; and 2. The Developer shall undertake all necessary actions to develop and execute the Program for the site, under the terms and conditions as specified in this Agreement; and 3. The Mayor is authorized to execute this Agreement on behalf of the City. Section 1 Obligations of the Developer 1.1 Upon execution of the Agreement, the Developer shall immediately begin work, at its sole expense, to develop the Program and Site Plan for the Site. Such a plan shall initially include — at a minimum - a hotel property and one or more mixed use buildings, public open space, and public parking. This Program and site plan shall be developed in coordination and collaboration with the City, and may change over time as new information, financial analysis, and market demand information become available that may inform both the Program and the Site Plan. The plan shall take into consideration issues of importance to the City, such as parking needs, view sheds, design character, market demand, and other matters that are brought to the attention of the Developer. 1.2 The Developer shall review all information that has been developed and collected by the City regarding the Site, the downtown, market demand, the proposed Tax Increment Finance ("TIF") district, and other information that is relevant to the development of the Site. The Developer may request additional information from the City. 1.3 The Developer shall prioritize a downtown hotel as part of the Program, utilizing the information contained in the recently completed downtown hotel analysis conducted by ConsultEcon, and augmented by additional hotel market research that is deemed to be necessary. The Developer shall undertake all appropriate and necessary outreach to potential hotel developers, partners, and/or operators in its hotel due diligence efforts. 1.4 The Developer shall also prioritize the creation of a new downtown open space on a portion of the Site that will be open to the public and designed in a flexible manner so as to be utilized for a variety of public and civic functions. 1.5 The Developer shall prioritize the continued use of a portion of the site for publicly available parking. 1.6 The Developer shall evaluate the creation of other mixed-use or residential buildings on a portion of the Site. 1.7 The execution of the Section I Tasks shall be undertaken within the schedule outlined in Exhibit A, with the understanding that this is an estimated schedule and may change depending upon the collection and evaluation of information provided in Section I and Section II. Section II Obligations of the City 11.1 Upon execution of this Agreement, the City shall make available to the Developer all relevant information and data related to the specified site, as well as relevant information related to downtown Paducah and the surrounding market. Such information and data shall include — at a minimum—survey information, elevations, utilities, geotechnical, flood plain, and all GIS data related to the Site. The Developer may request that the City collect and provide additional information that currently may not exist. 11.2 The City shall undertake — as owner of the property — a Phase 1 environmental analysis and a Phase 2 analysis if deemed to be necessary by the City. 11.3 The City shall provide information regarding available utilities and capacity on the Site to meet the implementation needs of the Program. 11.4 The City shall undertake a parking assessment for the Site. The assessment shall include benchmarking parking inventory, evaluating parking capacity in downtown Paducah, and determining occupancy trends. The assessment will analyze existing conditions, future development, and make specific recommendations for better management of the City's parking assets that reflects input from businesses, employees, residents, and visitors. 11.5 The City shall work with the Developer to assess zoning or other development regulations to implement the Program, and determine any appropriate revisions, amendments, variances, or other changes, if needed. 11.6 The City will work with the Developer to engage in input and consultations with City staff and appropriate stakeholders. 11.7 The City shall support efforts by the Developer to secure necessary projectfinancing and/or investments, including but not limited to Opportunity Zones, Brownfields, Tourism Tax Credits, or other types of public financing assistance. 11.8 The City shall continue its efforts to ensure that a (TIF) District is in place prior to a future transfer of the property to the Developer. Certain improvements to the real property - including but not limited to infrastructure, public open space, and parking - shall be deemed to be eligible for TIF proceeds and or City investments recouped via TIF proceeds. 11.9 The City shall, under the terms and conditions herein and other agreements and cooperation efforts that ensue, transfer fee ownership of the development property for the minimum price of $325.00. This transfer price, however, does not preclude other financial arrangements and participations accruing to the City as may be determined as part of the development's economic and financial due diligence, and the ability to insure the long term success of the development for both the City and the Developer. Any such additional arrangements shall be memorialized prior to the fee simple transfer of the property. Section III Other Provisions 111.1 Timing: The Agreement shall be effective the date of its execution and shall remain in effect for a period of 12 months hence. At that time, or sooner, one of the following shall occur: a) The Agreement will expire upon the execution of a subsequent Agreement covering the implementation of the Program, and construction and operation of a development project; and the transfer of fee simple title to the property; and the financial closing allowing the initial phase of the Development to begin construction. b) The Agreement is extended for a specified period of time upon the mutual consentof the parties due to circumstances currently unforeseen. C) The Agreement expires and neither party shall have any further obligations or responsibilities to the other party. Any and all expenditures of either party incurred during the time of this Agreement shall remain with the parties and no transfers of funds or reimbursements shall occur. 111.2 Project Design: It is recognized by the parties to this Agreement that the project site plan and its individual buildings and elements shall be subject to: a) Collaborative discussions and review with City staff; b) Informal consultations with stakeholders at the request of the City; followed by c) All project design review procedures that are required of any development proposal under the City's zoning and development regulations. 111.3 During the period in which this Agreement is in effect, the City shall enter into no other agreements that provide any new incentives for the development of a downtown hotel, new residential construction and/or mixed-use development with a residential component (other than the Developer) within the TIF District, unless agreed to by the Developer. Development projects that qualify under existing City programs are exempt from this provision. 111.4 This Agreement may be revised and amended as may be deemed to be necessary and appropriate during the time of its existence at the mutual agreement of both parties. 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