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HomeMy WebLinkAbout2020-08-8651226486 ORDINANCE NO. 2020 —08-8651 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A FIRST AMENDMENT AND EXTENSION TO RIGHT OF FIRST REFUSAL BETWEEN THE CITY OF PADUCAH, KENTUCKY, AND PADUCAH RIVERFRONT HOTEL LP, WITH RESPECT TO A PUBLIC PROJECT; AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT WHEREAS, on November 4, 2015 and as a part of a larger public project to develop the Paducah Downtown Riverfront, City of Paducah, Kentucky ("City") and Paducah Riverfront Hotel, LP, a Kentucky ULPA limited partnership ("Developer"), entered into a Right of First Refusal Agreement (the "Agreement") whereby City granted and accorded unto Developer the right of first refusal and option to purchase or lease three (3) certain tracts of real estate generally located at 501 North 3rd Street, Paducah, McCracken County, Kentucky, for future development for purposes of providing full-service accommodations for transient travelers and tourist within the Paducah -McCracken County Area; WHEREAS, according to Section 2 of the Agreement, the term of the Agreement expired on July 15, 2020; and WHEREAS, Developer has requested that City amend and extend the expiration date of the Agreement for two (2) more years and amend Developer's commitments under the Agreement to allow more flexibility in the type of accommodations to be developed on the Property; and WHEREAS, City has determined that the requested amendments and extensions to the Agreement are in the best interest of City and furthers the public purpose of the City in the development of the Paducah Downtown Riverfront. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Recitals and Authorization. City hereby approves the First Amendment and Extension to the Right of First Refusal Agreement (this "First Amendment") by and between City and Developer in substantially the same 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 this First Amendment for the purposes therein specified, and the execution and delivery of this First Amendment is hereby authorized and approved. The Mayor is hereby authorized to execute this First Amendment with such changes not inconsistent with this Ordinance and not substantially adverse to the City as may be approved by the Mayor. The approval of such changes by the Mayor, and that such are not substantially adverse to the City, shall be conclusively evidenced by her execution of this First Amendment. 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 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 ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. 5;Z�7-.'k,- Mayor Brandi Harlss ATTEST: Cd/Ll. City Clerk, Lindsay P ish Introduced by the Board of Commissioners, August 11, 2020 Adopted by the Board of Commissioners August 12, 2020 Recorded by Lindsay Parish, City Clerk, August 12, 2020 Published by The Paducah Sun, August 16, 2020 ORD\agree - Paducah Riverfront Hotel First Amendment & Extension of Right of First Refusal 226393 FIRST AMENDMENT AND EXTENSION TO RIGHT OF FIRST REFUSAL AGREEMENT THIS FIRST AMENDMENT AND EXTENSION TO RIGHT OF FIRST REFUSAL AGREEMENT made and entered into on this day of 2020 (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 "Developer"); and CITY OF PADUCAH, KENTUCKY, a municipal corporation and political subdivision of the Commonwealth of Kentucky having an address of 300 South 5'h Street, P.O. Box 2267, Paducah, KY 42002-2267 (hereinafter referred to as "City"). WITNESSETH: WHEREAS, on November 4, 2015, City and Developer, entered into a Right of First Refusal Agreement (the "Agreement") whereby City granted and accorded unto Developer the right of first refusal to purchase or lease three (3) certain tracts of real estate generally located at 501 North 3rd Street, Paducah, McCracken County, Kentucky (more particularly described on Exhibit A (the "Property"), which agreement was filed of record in Deed Book 1311, page 231, in the McCracken County Clerk's office; and WHEREAS, according to Section 2 of the Agreement, the term of the Agreement expired on July 15, 2020; and WHEREAS, Developer has requested that City amend and extend the expiration date of the Agreement and amend Developer's commitment to develop and construct an upscale hotel on the Property; and WHEREAS, City has determined that the requested amendments and extensions to the Agreement are in the best interest of City. NOW THEREFORE, for and in consideration of $10.00 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. Extension of the Term of the Agreement. City and Developer expressly agree to amend Section 2, "Term" of the Agreement to extend the term of the Agreement so that this section as amended and extended will now read as follows: 2. Term. The term of this Agreement shall commence on July 15, 2017 and shall continue for a period offive (5) years expiring as of 11:59 p.m., CST, on July 15, 2022 (the "Term'). 2. Other Amendments to the Agreement. Section 5 (e), of the Agreement is amended to read as follows: 5. e. Developer may also exercise an option to purchase the Property anytime during the Term of thisAgreement by delivering written notice of its intent to proceed with the purchase of the Property at the agreed purchase price of $300, 000.00 and Developer's written commitment to Cityfor the development and construction on the Property ofeither an upscale full-service hotel or a unique and luxury boutique hotel with luxury retail shops restricted to the firstfloor with such other terms and conditions as may be agreed to by and between City and Developer. The terms and conditions of the aforesaid hotel construction and development being a material term to this option to purchase and right offirst refusal. 3. Reaffirmation of the Development Agreement. Except for the modifications set forth herein, all other terms and provisions of the Agreement entered into between the parties are expressly acknowledged, reaffirmed, and ratified by all parties hereto. All parties hereby agree to perform in strict accordance with the terms and provisions as set forth under the Agreement. 4. Miscellaneous Provisions. This Agreement shall be fully binding upon the parties hereto and their successors, and assigns as of the Effective Date. [SIGNATURES ON FOLLOWING PAGES] CITY: CITY OF PADUCAH, KENTUCKY M. Mayor Brandi Harless STATE OF KENTUCKY ) COUNTY OF MCCRACKEN ) The foregoing instrument was acknowledged before me on this day of 2020, by Mayor Brandi Harless on behalf of the City of Paducah, Kentucky. My commission expires Notary ID No.; This instrument prepared by: Lisa H. Emmons DENTON LAW FIRM, PLLC P. O. Box 969 Paducah, KY 42002-0969 Notary Public, State at Large 11 EXHIBIT A THE PROPERTY TRACTI Beginning at the point of intersection of the north line of Harrison Street and the west he of North Third Street; thence in a northerly direction with the west line of North Third Street North 31 degrees 27 minutes West 347.12 feet to its point of intersection with the south line of Clay Street; thence with an interior angle of 90 degrees 03 minutes in a westerly direction with the south line of Clay Street South 58 degrees 30 minutes West 163.25 feet to the east line of an alley; thence with an interior angle of 89 degrees 57 minutes in a southerly direction with the east line of said alley South 31 degrees 27 minutes East 347.12 feet to a point in the north line of Harrison Street; thence with an interior angle of 90 degrees 03 minutes in an easterly direction with the north line of Harrison Street North 58 degrees 30 minutes East 163.25 feet to the point of beginning; LESS SO MUCH as was conveyed to the Commonwealth of Kentucky by deed dated July 26, 1979, recorded July 1, 1980, in Deed Book 629, page 550; said deed described a triangular parcel of 532 square feet for new street right-of-way. TRACT B Beginning at an iron pipe at the corner of the intersection of Executive Blvd. (formerly Clay Street) as it intersects with the public alley and from thence south 29 deg 38' 53" E. 179.25 feet to an iron pipe; thence south 60 deg 26' 10" W. 63.35 feet to a pipe; thence north 61 deg 28' 24" W. 189.45 feet to an iron pipe; thence north 29 deg 38'53" W. 18.43 feet to an iron pipe; thence north 60 deg 26' 10" E. 163.25 feet to the point of beginning, constituting 0.487 acres. IRKTOM11 Beginning at a point in the north right of way line of Riverfront Access Road (Park Avenue), said point being 33.00 feet left of Park Avenue Station 158+92.04; thence N. 60 deg 20' 56" E. 62.95 feet to a point 86.24 feet left of Riverfront Access Road (Park Avenue) Station 159+25.24; thence S 29 deg 3737" E. 72.76 feet to a point 48.10 feet left of Riverfront Access Road (Park Avenue) Station 159+87.04; thence S 28 deg 31'36' W. 15.10 feet to a point in the north right of way line of Riverfront Access Road (Park Avenue), said point being 33.00 feet left of Riverfront Access Road (Park Avenue) Station 159+87.04; thence N 61 deg 28' 24" W. along the north right of way line of Riverfront Access Road (Park Avenue), 95.00 feet to the point of the beginning, containing 3,007.44 square feet. For clarification purposes, Tract If and III hereinabove are contiguous parcels, and are bounded on the northeast by Clay Street; on the east by a 20 foot alley lying between the above-described property and the Paducah Centre property owned by Wells Health Properties, L.L.C.; and on the southwest by Park Avenue. Being the same property conveyed to the City of Paducah, Kentucky by deed dated August 12, 2015, of record in Deed Book 1306, page 397, in the McCracken County Clerk's Office. IN WITNESS WHEREOF, the parties have respectively caused this First Amendment to be executed on the day and year first above written. DEVELOPER: PADUCAH RIVERFRONT HOTEL LP, By: Paducah Hotel Inc., a Kentucky cc Its General Partn= _ "11 STATE OF KENTUCKY ) COUNTY OF eD(A 4' (,S S ) The foregoing instrument was acknowledged before me on this � day of ) (A � 2020, by Glenn D. Higdon, President of Paducah Hotel Inc., General Partner o Paducah ucah Riverfront Hotel LP, a Kentucky Limited Partnership, on behalf of said limited partnership. My commission expires 2L Notary ID No., 5-9 V, �9 9 ( /�^ - , ® I Notary Pub�Iic, Stateat Large A 3