HomeMy WebLinkAboutOrdinances Book 14, Page 772, No Resolution Number772 %
A RESOLUTION AUTHORIZING THE EXECUTION OF A COOPERATION
AGREE1,10T BETWEEN TILE CITY OF PADUCAH MUNICIPAL HOUSING CON11ISSION
AND THE CITY OF PADUCAH, KENTUCKY
WHEREAS, the City of Paducah Municipal Housing Commission (herein -
called the "Local Authority") and the City of Paducah, Kentucky (herein
called the "Municipality") desire to enter into a Cooperation Agree-
ment in connection with the development of Lowy Rent Housing Units
pursuant to the United States Housing Act of 1937, as amended.
NO19 THEREFORE, BE IT RESOLVED BY THE BOARD OF C01,11ISSIONERS OF THE
CITY OF PADUCAH, KENTUCKY:
SECTION 1. That the Local Authority and the Municipality enter
into a Cooperation Agreement, and the Mayor is hereby authorized to
execute the same on behalf of the Municipality, and the Cite Clerk
to attest the same and affix thereto the seal of the Municipality,
said Cooperation Agreement being in substantially the following form:
COOPERATION AGREEMENT
"This Agreement entered into this day of , 1962
by and between the City of Paducah Iiunicipal Housing Commission
(herein called the "Local Authority") and the City of Paducah,
Kentucky (herein called the "Municipality"), witnesseth:
"Ir_ consideration of the mutual covenants hereinafter set
forth, the parties hereto do agree as follows:
1. Whenever used in this Agreement:
(1) The term "Project" shall mean any low -rent housing
hereafter developed as an entity by the Local Authority
with financial assistance of the- Public Housing Adminis-
tration (herein called the "PHA"); excluding, however,
any low -rent housing project covered by any contract for
loans and annual contributions entered•into between the
Local Authority and the PHA, or its predecessor agencies,
prior to the date of this Agreement.
(b) The term "Taxing Body" shall mean the State or any political '
subdivision or taxing unit thereof in which a Project is situated ai
which would have authority to assess ro levy.* real or personal
property taxes or to certify such taxes to a taring body or public
officer to be levied for its use and benefit with respect to a i
Project if it were not exempt from taxation.
(c) The term "Shelter Rent" shall mean the total of all charges to
all tenants of a Project for dwelling rents and nondwelling rents
(excluding all other income of such Project), less the cost to the
Local Authority of all dwelling and nondwelling utilities.
(d) The term "Slum shall mean anv area where dwellings predominate!
which, by reason of dilapidation, overcrowding, faulty arrangement
or design, lack of ventilation, light or sanitation facilities, or
any combination of these factors, are detrimental to safety, health'
or morals.
2. The Local Authority shall endeavor (a) to secure a contract or
contracts with the PHA for loans and annual contributions covering one or:
more Projects comprising approximately 849 units of low -rent housing and
(b) to develop and administer such Project or Projects, each of which
shall be located within the corporate limits of the Municipality. The
obligations of the parties hereto shall apply to each such Project
3• (a) Under the constitution and statutes of the Commonwealth of
Kentucky, all Projects are exempt from all real and personal
property taxes levied or imposed by any Taxing; Body. With respect
to any Project, so long as eigher (i) such Project is owned by a
public body or covernmental agency and is used for lover -rent housing;;
773
Purposes, or (ii) any contract between the Local Authority and the PHA for
loans or annual contributions, or both, in connection with such Project
remains in force and effect, or (iii) any bonds issued in connection
With such Project or any monies due to the PHA in connection with such
Project remain unpaid, whichever period is the longest, the Municipality
agrees that it will not levy or impose any real or personal property
taxes upon vnccu Project or upon the Local Authority with respect thereto.
During such period, the Local Authority shall make annual payments
(herein called "Payments in Lieu of Taxes") in lieu of such taxes and
in payment for the Public services and facilities furnished from time
to time without other cost or charge for or with respect to such
Project.
(b) Each annual Payment in Lieu of Taxes shall be made after
the end of the fiscal year established for such Project, and shall
be in an amount equal to either (i) ten percent (10%) of the Shelter
Rent actually collected but in no event to exceed ten percent (10%)
of the Shelter Rent charged by the Local Authority in respect to
such Project during such fiscal year or (ii) the amount permitted
to be paid by applicable state law in effect on the date such payment
is made, whichever amount is the lower.
(c) The Municipality shall distribute the Payments in Lieu of Taxes
among the Taxing Bodies in the proportion which the real property
taxes which would have been paid to each Taxing Body for such year
if the Project were not exempt from taxation bears to the total real
property taxes which would have been paid to all of the Taxing
Bodies for such year if the Project were not exempt from taxation;
Provided, however, That no payment for any year shall be made to
any Taxing Body in excess of the amount of the real property taxes
which would have been paid to such Taxing Body for such year if the
Project were not exempt from taxation.
(d) Upon failure of the Local Authority to make any Payment in Lieu
of Taxes, no lien against any Project or assets of the Local
Authority shall attach, nor shall any interest or penalties accrue
or attach on account thereof.
4. The Municipality agrees that, subsequent to the date of initiation
(as defined in the United States Housing Act of 1937, as amended) of
each project and within five years after the completion thereof, or
such further period as may be approved by the PHA, there has been or
will be elimination (as approved by the PHA) by demolition, confemna-
tion, effective closing, or compulsory repair or improvement, of unsafe
or insanitary dwelling units situated in the locality or metropolitan
to the number of
area in which such Project is located, substantially equal in number
Project; ProvidedneThat,owherenstrcmord
edthanloneufamilyrislliving inc
can
unsafe or insanitary dwelling unit, the elimination of such unit shall
count as the elimination of units equal to the number of families
accoshallmnotted applyeinitheand caseroveofldid anyrProjecthdevelopedfuther tat this aongthehsite of
a slum cleared subsequent to July 15, 1949, and that the dwelling units
eliminated by the clearance of the site of such Project shall not be
counted as elimination for any other Project or any other low -rent
housing project, or (ii) any Project located in a rural nonfarm area.
5. During the period commencing with the date of the acquisition of
any part of the site or sites of any Project and continuing so long as
either either (i) such Project is owned by a public bodor or governmental
betweenatheand 1Localdfor Authorityrent and thePHAforploans y or annualnccontract
ontribu-
tions, or both in connection with such Project remains in force and
effect, or (iii) any bonds issued in connection with such Project or
any monies due to the PHA in connection with such Project remain unpaid,
Whichever period is the longest, the Municipality without cost or
charge to the Local Authority or the tenants of such Project (other
than the Payments in Lieu of Taxes) shall:
(a) Furnish or cause to be furnished to the Local Authority and
the tenants of such Project public sercices and facilities of the
same character and to the same extent as are furnished from time
to time without cost or charge to other dwellings and inhabitants
in the Municipality;
(b) Vacate such streets, roads, and alleys within the ares of such
Project as mayte necessary in the development thereof, and convey
without charge to the Local Authority such interest as the Municipality
may have in such vacated areas; and, insofar as it is lawfully able to
do so without cost or expense to the Local Authority or to the
Municipality, cause to be removed .from such vacated areas, insofar as
it may be necessary, all public or private utility lines and equip-
ment;
f
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(c) Insofar as the Municipality may lawfully do so, (i) grant such
deviations from the building code of the Municipality as are reasonable
and necessary to promote economy and efficiency in the development and
administration of such Project, and at the same time safeguard health
and safety, and (ii) make such changes in any zoning of the site and
surrounding territory of such Project as are reasonable and necessary
for the development and protection of such Project and surrounding
territory;
(d) Accept grants of easements necessary for the development of such
Project; and
(e) Cooperate with the Local Authority by such other lawful action
or ways as the Municipality and the Local Authority may find necessary
in connection with the development and administration of such Project.
6. In respect to any Project the Municipality further agrees that within a
reasonable time after receipt of a written request therefor from the Local
Authority:
(a) It will accept the dedication of all interior streets, roads,
alleys and adjacent sidewalks within the area of such Project,
together with all storm and sanitary sewer mains in such dedicated
areas, after the Local Authority, at its own expense has completed
the grading, improvement, paving, and installation thereof in accord-
ance with specifications acceptable to the Municipality;
(b) It will accept necessary decications of land for, and will grade,
improve, pave, and provide sidewalks for, all streets bounding such
Project or necessary to provide adequate access thereto (in consider-
ation whereof the Local Authority shall pay to the Municipality such
amount as would be assessed against the Project site for such work
if such site were privately owned); and
(c) It will provide, or cause to be provided, water mains, and storm
and sanitary sewer mains, leading to such Project and serving the
bounding streets thereof (in consideration whereof the Local Authority
shall pay to the Municipality such amount as would be assessed a ainst
the Project site for such work if such site were privately owned.
7. If by reason of the Municipality's failure or refusal to furnish or cause
to be furnished any public services or facilities which it jas agreed here-
under to furnish or to cause to be furnished to the Local Authority or to
the tenants of any Project, the Local Authority incurs any expense to obtain
such services or facilities then the Local Authority may deduct the amount
of such expense from any Payments in Lieu of Taxes due or to become due to
the Municipaluty in respect to any Project or any other low -rent housing
projects owned or operated by the Local Authority.
8. No Cooperation Agreement heretofore entered into between the Municipality
and the Local Authority shall be construed to apply to any Project covered
by this Agreement.
9. So long as any contract between the Local Authority and the PHA for loans
(including preliminary loans) or annual contributions, or both, in connection
with any Project remains in force.and effect, or so long as any bonds issued
in connection with any Project or any monies due to the PHA in connection
with any Project remain unpaid, this Agreement shall not be abrogated,
changed or modified without the consent of the PHA. The privileges and
obligations of the Municipality hereunder shall remain in full force and
effect with respect to each Project so long as the beneficial title to such
Project is held by the Local Authority or by any other public body or govern-
mental agency, including the PHA, authorized by law to engage in the
development or administration of low -rent housing projects. If at,any time
the beneficial title to, or possession or, any Project is held by such other
public body or governmental agency, including the PHA, the provisions hereof
shall inure to the benefit of and may be enforced be, such other public body
or governmental agency, including the PHA.
10. In addition to the Payments in Lieu of Taxes and in .further consideration
of the public services and facilities furhished and to be furnished in
respect to any Project for which an Annual Contribution Contract was
initially entered into between August 2, 1954, and June 30, 1961, between
the Local Authority and the PHA (Projects Ky-6-5, 6, 7);
(a) After zayment in full of all obligations of the Local Authority
in connection with such Project for which any annual contributions
are pledged and until the total amount of annual contributions paid by
the PHA in respect to such Project has been repaid, (1) all
receipts in connection with such Project in excess of expenditures
necessary for the management, operation, maintenance, or financing,
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and for reasonable reserves therefor,shall be paid annually to the
PHA and to the Municipality on behalf of the local public bodies
which have contributed to such Project in the form of tax exemption
or otherwise, in proportion to the aggregate contribution which the
PHA and such local public bodies have made to such Project, and (2)
no debt in respect to such Project, except for necessary expenditures
for such Project, shall be incurred by the Local Authority;
(b) If, at any time, such Project or any part thereof is sold, such
sale shall be to the highest responsible bidder after advertising
or at fair market value as approved by the PHA, and the proceeds of
such sale, together with any reserves, after application to any out-
standing debt of the Local Authority in respect to such Project, shall
be paid to the PHA and local public bodies as provided in clauses
a(1) of this Section 10: Provided, That the amounts to be paid to
the PHA and the Local public bodies shall not exceed their respective
total contribution to such Project;
(c) The Municipality shall distribute the payments made to it pursuant
to clauses (a) and (b) of this Section 10 among the local public bodies
(including the Municipality) in Proportion to their respective aggre-
gate contributions to such Project.
11. The Cooperation Agreements dated October 5, 1938 (covering Projects
Ky-6-1, 2), November 29, 1949 (covering Projects Ky-6-3 4), and April 28,
1958, as amended August 30, 1960 (covering Projects Ky-6-5, 6, 7), are
herevy superseded and are merged and consolidated into this Agreement
which shall be effective retroactively to April 1, 1962, the beginning
of the fiscal year for all Projects, and shall constitute the sole Agreement
between the parties. All actions and obligations, properly had, taken or
performed, pursuant to the superseded Cooperation Agreements shall be deemed
to have been had, taken or performed and shall be continued under this
Agreement.
IN WITNESS WHEREOF the Municipaluty and the Local Authority have
respectively caused this Agreement to be duly executed as of the date and
year first above written.
(SEAL)
ATTEST:
(SEAL)
ATTEST:
Secretary
City Clerk
CITY OF PADUCAH MUNICIPAL HOUSING CO.
By
Chairman
CITY OF PADUCAH, KENTUCKY
By
Mayor
SECTION 2. This Resolution shall be in full force and effect from
and after its adoption.
Winston Gholson, Mayor Pro Tem
�. lee,
A. B. Fendley, C issioner
Passed by the Board of Commissioners August 28, 1962
Recorded by Sarah Thurman, City Clerk, August 28, 1962.