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HomeMy WebLinkAboutCCMPacket2014-04-08CITY COMMISSION MEETING AGENDA FOR APRIL 8, 2011 5:30 P.tvI. ROLL CALL INVOCATION PLEDGE OF ALLEGIANCE -Meg Hancock, Sophomore at PTHS ADDITIONS/DELETIONS PROCLAMATION: Child Abuse Prevention Month I. MINUTES II. APPOINTMENTS A. Board of Ethics III. MOTIONS A. R & F Documents IV. MUNICIPAL ORDERS A. Personnel Actions B. Lease Agreement for Armory Building Located at 2956 Park Avenue — M. THOMPSON V. ORDINANCES — ADOPTION A. Declaration and Transfer of Surplus Property located at 510 Broadway — S. ERVIN B. Noble Park Pool Engineering Change Order #2 with ICA — M. THONIPSON C. Purchase Rear Packer Truck for Solid Waste — R. MURPHY D. Approve Addendum No. 2 to Employment Agreement for City Manager — CITY MGR VI. ORDINANCES — INTRODUCTION A. Accept Grant Award. for Distracted Driving Enforcement for Police Dept — S. ERVIN/POLICE CAPT. HODGSON B. Approve Memorandum of Understanding with Higdon Development, Inc. for Development of Property Located on Bleich Road — S. ERVIN VII. CITY MANAGER REPORT VIII. MAYOR & COMMISSIONER COMMENTS IX. PUBLIC COMMENTS X. EXECUTIVE SESSION APRIL 8, 2014 I move that the following documents and proposals be received and tiled: DOCUMENTS Certificate of Liability Insurance and Performance Bond Cot -Central Paving Company of Paducah, Inc. Notice of Cancellation for the Board of Commissioners of the City of Paducah, Kentucky for Tuesday, April 1, 2014 Agreement with Central Paving Company of Paducah, Inc. for Compost Grinding of Tree Debris and Yard Waste (ORD #'2014-03-8125) U.S. Department of Holls1110 and Urban Development PHA 5 -year and Annual Plan for City of Paducah Section 8 Housing Program (ti10 :� 1761) 2014 City of Paducah Section 8 Housing Administrative Plan (M0 # 1766) Paducah Symphony Orchestra, Inc. Financial Statements for years ended June 30. 2012 and June 30. 2013 Paducah \Fater Works Financial Highlights fol- month ended February 28, 2014 PROPOSALS Proposal for Purchase of the Coltlmbla Theatre by the Columbia Club, Inc. CITY OF PADUCAH April 8, 2014 Upon the recommendation of the City Manager, the Board of Commissioners of the City of Paducah order that the personnel changes on the attached list be approved. Ci.�nager's Signature � Zoe Date CITY OF PADUCAH PERSONNEL ACTIONS April 8, 2014 TERMINATIONS - FULL-TIME (F/T POSITION REASON EFFECTIVE DATE FIRE PREVENTION Gowen, Christina M, Deputy Fire Marshal Resignation Apr[ 10, 2014 PAYROLL ADJUSTMENTS/TRANSFERS/PROMOTIONSITEMPORARY ASSIGNMENTS PREVIOUS POSITION CURRENT POSITION NCS/CS FLSA EFFECTIVE DATE AND BASE RATE OF PAY AND BASE RATE OF PAY FIRE PREVENTION Tinsman, Apra[ K. Permit Specialist Permit Technician NCS Non -Ex March 20. 2014 S15.12/Hr $I 6.65/Hr NEW HIRE - FULL-TIME (F/T) POSITION RATE NCS/CS FLSA EFFECTIVE DATE POLICE OPERATIONS Parrish, Andre%:v J. Police Officer Recruit S19.78/Hr NCS Non -Ex May 8. 2014 EPW STREETS smith, Jar1 es Concrete Finisher S17.25/Hr NCS Non -Ex April 10. 2014 Agenda Action Form Paducah City Commission Meeting Date: April S, ?014 Short Title: Lease of the former Armory Building to Oscar Cross Boys & Girls Club ❑Ordinance ❑ Emergency Z Municipal Order ❑ Resolution ❑ LMotion Staff Work By: Mark Thompson, Rick Murphy Presentation By: Mark Thompson, Parks Services Director Background Information: For the past year the City and Oscar Cross Boys & Girls Club have worked to prepare the former armory property For use by the OCBGC for an afterschool elementary ave programming facility. "rhe City budgeted up to 525.000 in facility repairs and OCBGC fundraised for additional repairs. The initial length of this contract is for ten years commencing January 1. 20 14 with two automatic five year renewals unless either party chooses to opt out witlt a 90 day notice. OCBGC will pay the City S 1 per year of the lease and will be responsible for all building repairs. The City has maintained use of the associated iervice building on the property. Goal: ❑Strong Economy ®Quality Services ❑Vital Neighborhoods []Restored Downtowns Funds Available: account Name: N/A .account Number: Finance Project Number: Staff Recommendation: Adopt a %Iunicipal Order authorizing the iVlayor to execute a Lease Agreementr OCBGC for the former �mor�•. 1956 Park avenue. Attachments: Copy of Lease agreement MHT Department dead City Clerk C�f— City l Tanager MUNICFPAL ORDER NO. A MUNICIPA-L. ORDER AUTHORIZING THE VIAYOR TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF PADUCAH AND OSCAR CROSS BOYS & GIRLS CLUB OF PADUCAH. INC., FOR LEASE OF THE ARMORY BUILDING AND APPURTENANT PARK -LNG AREV LOCATED AT 2956 PARK AVENUE, PADUCAH. KENTUCKY BE IT ORDERED BY THE CITY OF PADUCAH. KENTUCKY: SECTION 1. That the Mayor is hereby authorized to execute a Lase Agreement between the City of Paducah, Kentucky and Oscar Cross Boys & Girls Club of Paducall. Inc. for lease of theArmory building and appurtenant parking area located at 2956 Parte Avenue. This agreement does not include the service building. SECTION 2. The term of the aforesaid lease authorized in Section I above shall commence on January 1. 2014. wd expires December 3l , 2023. The lease shall automatically renew for two (2) five (5) year terms, unless ,jilicr party gives written notice of termination no later than 90 days prior to the end of the teim or renewal terns. SECTION 3. This Order shall be in hill force and effect from and after the date of its adoption. 'VIavor ATTEST Tammara S. Sanderson. City Clerk Adopted by the Board of Commissioners. April S. 2014 Recorded by Tammara S. Sanderson. City Clerk, April 3. 2014 \mo\Lease — armory bldg -2956 park ,eve-oscar cross Agenda Action Form Paducah City Commission Meeting Date: April 8; 2014 Short Title: Transfer of 501-514 Broadwav ❑Ordinance ❑ Emergence ® \•(unicipal Order ❑ Resolution ❑ Motion Staff Work By: Stere Ervin Presentation B\ : Steve Ervin Randy Davis This action �\ould declare 510-514 Broadway surplus property mvned by the Ciry of Paducah and authorize the transfer of the property to the sole bidder Columbia Club. irtc. for 51.00. The property was advertised in the Paducah Sun requesting interested parties to submit a bid. No other bids were received for this property. Baekarouud Information: EPA has selected the Kentucky Department for Environmental Protection for a bro-,,nfields revolving loan fund grant. The Federal EPA grant received by the Commonwealth of Kentucky is being used to capitalize a resolving loan fund from which the Kentucky Department for Environmental Protection is providing loans and sub -grants to support cleanup activities for sites contaminated with hazardous substances and petroleum. Grant fluids are also beimiz used to market and oversee the revolving loan fluid program. The grant includes a total of $650,000 for hazardous substances cleanups and $200,000 for petreleum cleanups. The State Sub -giant Bro�tanfield Program seeks brownfield cleanup applications front local governinents and non -profits. The Kentucky Department for Environ -mental Protection anticipates offerin,g three to five sub -grants, each less than 550,000 and totaling $140;000. Of this amount. S105.000 will be for hazardous waste cleanups: S35.000 will be forpetroleurn cleanups. The Columbia Club, lnc., in partnership xvith the City of Paducah, ceishes to apple for a Brownfield Sub -grant through the Kentucky Department of Environmental Protection. The application amount «-ill be for S$0.000 with a 20% match requirement in the amount of $10.000. Grant fiends will be used to mitigate lead based paint and asbestos contamination at the Columbia Theatre. The Ciry of Paducah cannot be the applicant for the Brownfield Grant as the Citi did not conduct a phase I environmental revie%v prior to taking ownership. The intent of this agenda item is to transfer the Columbia Theater to Columbia Club, Inc. so that tliq may be the applicant for the Kentuck-y Bro-vvnf3eld Grant. The attached MOLD defines ownership responsibilities of the Cin and Columbia Club. htc. It should be noted that this transfer is for Grant purposes only. If the grant is not received bv the C011unbia Club. the Theater xNill be transferred back to the Cit; of Paducah, additionally. the MOU allo�Ns for a $10,000 cash grant to offset the costs of the Brownfield Gra:rt match. liabilitz insurance and additional asbestos remediation as required. The cash grant will be paid only if the COltlmbla Club receives the Brownfield Grant. The attached M0U has been re\ iewed b\ Counsel. At time of � rittrg. staff is reg ie« ing insurance Agenda .action Forrn Pace Provisions within the "vIOL-. Changes to insurance provisions of the DIOL.' «ill be provided at the Cite Commission meeting. Goal: ❑Strong Economy ❑ Quality Services❑ Vital'eighborlioods® Restored Downtowns Funds Available: Ac:eount Name - Account \umber: Finance Staff Recommendation: Approval Attachments: NIOU Department Head City Clerk City Manager Agenda Action Form Paducah City Commission Meebrig Date: March 25, 201.1 Short Title: Noble Park Pool Engineering Change Order #2 with ICA Ordinance ® Emergency ❑ Municipal Order ❑ Resolution ❑ Motion ❑ Staff Work By: Mark Thompson Presentation By: Mark Thompson Background Information: The original contract for the Noble Park Pool enaineerina with Florence & Hutcheson, now ICA, was authorized for 598,7G0, Ord.20I I-11-7881. However on Vlay 8, 2012 the City chose to add the replacement of the baby pool as a portion of the project increasing the contract to S 143,200.00, Ord.2012-5-7920. The scope of the engineering has changed considerably as the project has continued. It became necessary to bid the project into tluee bids rather than two after the first bid came in a great deal over budget. The re -bids however saved over S65,000 but required additional services for the coordination of three onsite contactors and the two re -bids themselves. CO #1 in June of 2013 increased totals to 540,995 for services increasing the contract with ICA to S 184, 1.95.00, This is final change order closinv out the, -naineerina services of the project. The services provided in CO#2. ICA assisted the City through the mitigation process with staffing and documentation. CO# 2 totals S 13,230 making the final contract total S197.425, Goal: ❑Strong Economy ® Quality Services❑ Vital Neighborhoods❑ Restored Downtowns Funds Available: Account Name: Noble Park Pool Project Account Number: PA0095 Finance Staff Recommendation: Approval Attachments: Change Order #2 r Department Head City Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: March 25, 201-1 Short Title: Purchase of a Rear Packer Reftise Collection Truck for use by the EPW-Solid Waste Division ®Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution F7Motion Staff Work By: Mike Orenduff, EPW Solid Waste Supt. Randy Crouch, EPW Maintenance. Supt Angela Weeks, EPW Project Mgr Presentation By: Rick Murphy, P.E., City Engineer -Public Works Director Background Information: On March 18, 2014, the City of Paducah Engineering -Public Work's Department received and opened sealed bids for the purchase of a new Rear Packer Refuse Collection Truck for use by the Solid Waste Division. Two responsive bids were received, with TAG Truck Center, LLC. submitting the lowest evaluated bid in the amount of S 157,67.00. The estimated time for delivery of the new truck will be 160 days after contract execution. Goal: ❑Strong Economy ®Quality Services ❑Vital Neighborhoods ❑Restored Dokintowris Funds Available: Account Name: Rolling Stock / VeNde Heavy v Account i\iumber: 050-2209-531-4007 mance Staff Recommendation: To receive and file the bids and adopt an Ordinance authorizing the ivlayor to enter into a contract with TAG Truck Center, LLC in the amount of $151,677.00 for the purchase of a new Rear Packer Refuse Collection Truck to be used by the Solid Waste Collection System Attachments: Ad, Original Bid Proposals, Bid Tab and Proposed Contract c Dep ment d City Clerk City Manager Agenda Action Form Paducah City Commission tMeeting Date: March 25. 2014 Short Title: City ivlanager Employment Agreement Extension ®Ordinance ❑ Emergency ❑ Municipal Order F-1Resolution❑ Motion Staff Work By: Jeff Pederson Presentation By: Jeff Pederson Background Information: An Employment Agreement between City Manager, Jeffrey A. Pederson, and the City of Paducah vas signed on December 7, 2010. The Agreement was amended by Ordinance on December 20, 2011. subsequent to a Performance Review conducted by the City Commission. As a result of a Performance Review conducted during November 2013, the City Commission and ivlr. Pederson have agreed to renew Pederson's Employment ,agreement for a three-year period, commencing December 7, 2013, through December 7, 2016. Other sections of the Agreement are amended as follows: • Section 4 adjusts the City Manager's salary to $150,000 aruually. • Section 6 adjusts the Citi' Ntanager's annual vacation accrued to twenty (20) days Staff Recommendation: Approve the Extension of the City \tanager's Employment Agreement with changes in Section 4 and Section 6, tluough December 7, 2016. Attachments: City Manager's Employment Agreement Extension Ordinance i Department Head Cit}' Clerk City Manager Agenda Action Form Paducah City Commission Meeting Date: 8 April 2014 Short Title: KY Office of Highway Safety — Distracted Driving Enforcement IZ Ordinance ❑ Emergency ❑ Municipal Order ❑ Resolution ❑ Motion Staff Work By: Don Hodgson, Sheryl Chino Presentation By: Steve Ervin, Don Hodgson Background Information: To coincide with a national campaign, the Kentucky Office of Highway Safety is offering mini grant funds for texting while driving enforcement from April 7 through April 20, 2014. This focused enforcement effort is to help reduce the collisions, injuries and fatalities that have been occurring due to driver's inattention and distraction. The Paducah Poiice Department has been awarded a Highway Safety N-lini-grant in the amount of S30,000. This grant will reimburse overtime hours associated with saturation patrols, including fuel costs. There is not a match requirement for this grant application, The app{lcation was originally approved by municipal order 1760. The grant requires authorization by the Paducah City Commission to allow the Mayor to execute all grant related documents. Goal: ❑ Strong Economy ® Quality Services ❑ Vital Neighborhoods ❑ Restored Downtowns Funds Available: Project Title: 14 Hwy Sfty Enforce Project #: P00079 Finance File #: 6.256 Acct 4: 001-1602-521.12-01, 001-1602.521.31-03 Budget: $30,000 ($27,000 OT, $3,000 Fuel — based on OT hrs wkd) Source of Funds: Federal Grant — no local match Staff Recommendation: Approval Department Head 11 City Clerk ORDINANCE NO. 2014 -4 - AN ORDINANCE AUTHORIZNG THE MAYOR TO EXECUTE .A GRANT AGREEMENT AND ALL DOCUNMENTS RELATING THERETO WITH THE KENTUCKY OFFICE OF HIGHWAY SAFETY FOR A DISTRACTED DRT M ENFORCEMENT GRANT AWARD WHEREAS. the City of Paducah applied for a reimbursement grant through the Kentucky Office of Highway Safety by Municipal Order No. [760 on March 13. 301-4. for overtime traffic enforcement activities related to distracted driver traffic enforcement durin; the week of .April ; through .April 20. 2014; and WHEREAS. the Kentucky Office of Highway Safety has approved the application and is now ready to award this grant. BE IT ORDAINED BY THE CITY OF PADUCAH. KENTUCKY: SECTION 1. Tile Mayor is hereby authorized to execute a Grant .Agreement, and all JOCnntent, relating thereto, with the Kentucky Office of Highwav Safety in the amount of 530.000.00 for overtime traffic enforcement activities related to distracted driver traffic enforcement during the week of April 7 through April 20. 2014. No local cash match is required. SECTION 2. This expenditure shall be charged to Proi--ct .account No. PO00719. SECTION 3. This ordinance shall be read on two separate days and will become effective upon sununary publication pursuant to KRS Chapter 424. \favor ATTEST: Tammara S. Sanderson. City Clerk Introduced by the Board of Commissioners. April S. 2014 Adopted by the Board of Commissioners, April 22. 2014 Recorded by Tammara S. Sanderson, City Clerk. April 22, 2014 Published by The Paducah Sun. _ ord\plan\grmus\police -Highway Sateiy-diso•acted drier 4-2014 ❑ P,1 Agenda Action Form Paducah City Commission Meeting Date: Short Title; Lakewood Villa — infill Development Agreement — Section 2 Ordinance ®Emergency ❑ Municipal Order ❑ Resolution ❑ Staff Work By: Stephen Ervin Presentation By: Stephen Ervin Background Information; Phil Higdon is requesting infill development incentives for Section 11 of Lakewood Villa. Lakewood Villa Section I is a 64 -unit Condominium development located on Bleich Road. Section l is complete. Lakewood Villa Section 2 is in compliance with the following Infill Development findings: • That a Residential Development Agreement will increase residential development in the City of Paducah. • That the City of Paducah's economic well-being is related to and in many respects dependent upon, sustained growth of its population and tar revenue base through development of vacant properties. • That a Residential Development Agreement will encourage development of single-family owner -occupied housing on vacant, orphaned, or underutilized land located in the mature portions of Paducah where infrastructure and services are in place. • That a Residential Development Agreement will encourage infill development that may have been underutilized or blighted, helping to catalyze revitalization. • That infill residential development will increase the revenue tax base necessary to meet various capital needs, especially in the area of public safety, maintain infrastructure and facilities, promote economic development, and will aid in the maintenance of existing infrastructure and facilities. • That a Residential Development Agreement will help maintain growth through infill development, which encourages a healthy economy. • That a Residential Development Agreement will encourage infill residential development, which will increase the population base of the City of Paducah, therefore increasing the possibilities of becoming a designated urbanized area. ,Lk�!enda ;-fiction Form Page The 10 -year infill development agreement allows the City to reimburse the developer for the actual costs incurred in connection with the construction of qualified "municipal facilities" (streets, gutters, and other public infrastructure) within the proposed development, in an amount not to exceed the total cost of facilities or the total sum of all ad valorem real property taxes collected by the City frorn the property, whichever is less, over a ten year period. Goal:® Strong Economy® Quality Services® Vital Neighborhoods❑ Restored Downtowns Funds Available: Account Name; Account Number: Finance Staff Recommendation: Approve agreeillent Other Recommendation: Motion: Attachments: Agreement Map Department Head City Clerk / City Manager 1698' 1,jean ORDINA-NCE 2014 —4- AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A NIENIORANDUM OF UNDERSTANDING BY AND ANIONG THE CITY OF PADUCAH. KENTUCKY AND HIGDON DEVELOPMENT, INC., WITH RESPECT TO THE RESDIENTIAL DEVELOPMENT OF PROPERTY W[THIN THE CORPORATE BOUNDARIES OF THE CITY OF PADUCAH AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUNIENTS RELATED TO SUCH MENIORANDUNI OF UNDERSTANDING. WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly development of vacant or underutilized properties located within it's corporate boundaries and of insuring the integrity and quality of it's existing residential neighborhoods: and v WHEREAS, the City of Paducah's economic well-being is related to and in many respects is dependent upon, sustained growth of it's population and tax revenue base through the development of vacant or underutilized properties: and WHEREAS, Higdon Development Inc., a Kentucky corporation, (the "Developer") is the present owner of certain tracts of real estate located within the corporate boundaries of the City of Paducah and has expressed an intent to purchase or acquire another tract of real estate located within the corporate boundaries of the City of Paducah, upon which the Developer proposes to construct a condorniniurrYmulti-family residential development, which real estate is generally bounded by Bleich Road, Lakewood Drive, Ridgewood Street and east of K-Nlart, in the City of Paducah, McCracken County, Kentucky (the "Property"): and WHEREAS. the residential development will encourage development of vacant or underutilized land located in the mature portions of Paducah a -here infrastructure and services are in place: and WHEREAS, the residential development will encourage infill development on property that may have been underutilized or blighted, helping to catalyze revitalization: and WHEREAS, the residential development will help maintain growth through infill development, which encourages a healthy economy; and WHEREAS, the residential development agreement will encourage infill residential development, which will increase the population base of the City of Paducah. therefore increasing the possibility of becoming a designated urbanized area; and WHEREAS, in order to insure that the residential development will have a positive impact on the entire community and to encourage the public purpose of infill residential development, it is necessary and desirable that the City nou, authorize the Nlemorandum of Understanding by and among the City of Paducah and the Developer. NOW, THEREFORE, BE IT ORDAINED BY THE CITY CO,\/INIISSION OF THE CITY OF PADUCAH, KENTUCKY, as follows: SECTION 1. Recitals and Authorization. The City of Paducah hereby approves the Memorandum of Understanding (the "&IOU") among the City and the Developer in substantially the form attached hereto and is made a part hereof. It is further determined that it is necessary and desirable and in the best interests of the City to enter into the MOU for the purposes therein specified. The 1layor of the City of Paducah is hereby authorized to execute the IOU, together with such other a;reements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the IOU. 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 parts 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 the City Commission and of it's 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, reSOI L1ti0I1S, orders or parts thereof 1n conflict with the provisions of this Ordinance. to the extent of such conflict, are 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. Mayor Attest: Tammara S. Sanderson, City Clerk Introduced by the Board of Commissioners, April 8. 2014 Adopted by the Board of Commissioners, April 22, 201-I Recorded by Tammara S. Sanderson, City Clerk, April 22, 2014 Published by the Paducah Sun, \ord\plan\mou-higdon dev-bleich rd ORIGIN MEivlORANDUNI OF UNDERSTAINWNG This is a Memorandum of Understanding made and entered into on the day of 2014, by and between the CITY OF PADUCAH, KENTUCKY (the "City" or "City of Paducah"). a municipality of the second class and HIGDON DEVELOPMENT, INC., a Kentucky- corporation (the `'Developer''). WHEREAS, the Developer is the present owner of a certain tract of vacant real estate generally located at 451 Bleich Road in Paducah having acquired same by deed recorded in Deed Book 1059 page 407 in the McCracken County Clerk's office, located within the corporate boundaries of the City of Paducah, upon which Developer proposes to construct a residential development, which real estate is generally bounded by Bleich Road, Lakewood Drive, Ridgewood Street and east of K-Nlart. in the City of Paducah, McCracken County, Kentucky (the "Phase I Property"); and WHEREAS, the Developer is also the present owner of certain tracts of real estate generally located at 319 Bleich Road in Paducah having acquired same by deed recorded in Deed Book 1036 page 499, in the aforesaid clerk's office; and has expressed an intent to purchase or otherwise acquire another tract of real estate, which is 309 Bleich Road in Paducah, and more particularly described in the deed recorded in Deed Book 989 page 50, in the aforesaid clerk's office, all located within the corporate boundaries of the City of Paducah, upon which Developer proposes to construct a residential development, which real estate is generally bounded by the Phase 1 Property, Bleich Road, the Olympia Avenue area and east of K-Nlart. in the City of Paducah, McCracken County, Kentucky (the "Phase 11 Property"); and WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly development of vacant or underutilized properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods; and WHEREAS, the City of Paducah's economic well-being is related to and in many respects is dependent upon, sustained growth of its population and tax revenue base through the development of vacant or underutilized properties; and WHEREAS, the residential development (as defined herein) will encourage development of multi -family housing on vacant or underutilized land located in the mature portions of Paducah where infrastructure and services are in place; and WHEREAS, the residential development will encourage infill development on property that may have been underutilized or blighted, helping to catalyze revitalization; and WHEREAS, the residential development will help maintain growth through infill development, which encourages a healthy economy; and WHEREAS, the residential development will encourage infill residential development, which will increase the population base of the City of Paducah, therefore increasing the possibility of becoming a designated urbanized area; and WHEREAS, in order to insure that the residential development will have a positive impact on the entire community and to encourage the public purpose of infill residential development, it is necessary- and desirable that the City now authorize the Memorandum of Understanding by and among the City of Paducah and the Developer. 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: A. Developer agrees to the following: 1. To acquire fee ownership of 309 Bleich Road prior to Developer's submittal to the Paducah Planning Commission (the "Plannina Commission") a preliminary subdivision plat for the residential development of the Phase If Property. 2. Develop a residential development on the Phase I Property and the Phase If Property in separate phases for the exclusive use as a condominitun/multiple-family residential development and construct and install all public improN-ernents within the residential development in accordance with the final subdivision plat or plats approved by the Planning Commission, the subdivision plans and stonnwater management plan as approved by the Cit; Engineer, and all applicable subdivision regulations as set forth in Chapter 142 (the Subdivision Ordinance) of the Code of' Ordinances of the City of Paducah, Kentucky (the "residential development"). For the purposes of this Memorandum of Understanding, public improvements shall include: streets, sidewalks, curbs, gutters, storm sewers and storm water conveyance system, water supply and distribution facilities, sanitary sewer facilities. electric distribution facilities, street lights and survey monumentation. The residential development on the Phase I Property and the Phase II Property do not have to be completed simultaneously: provided. however, the Infill Agreement (as defined herein) relative to the Phase I Property must be executed within one (1) year from the date of this iviemorandum of Understanding and the [nfill Agreement (as defined herein) relative to the Phase I1 Property must be executed within five (5) years from the date of this i✓lemorandum of understanding. 3. Submit to the Planning Commission for approval preliminary subdivision plats for the residential development on the Phase I Property and on the Phase II Property. 4. Submit to the Planning Commission for approval final subdivision plats for the residential development on the Phase I Property and on the Phase I1 Property. 5. Submit to the City Engineer for approval the subdivision plans and stormtivater management plans for the residential development on the Phase I Property and the Phase It Property in compliance with the Subdivision Ordinance. 6. Restrict the use and development of the Phase I Property and the Phase 11 Property to only condominiunVmulti-family residential units, which covenant shall run with the land and shall be binding on all parties claiming tinder and through the Developer, unless cancelled, altered or amended by a writing entered into by the Developer. or its successors, and 2 the Cite of Paducah. This covenant on the use and development of the Phase I Property and the Phase II Property shall be incorporated in the covenants and restrictions of the Phase I Property and the Phase It Property, which will be filed with the applications for the preliminary and final subdivision plats of the residential development and ultimately placed of record in the McCracken County Clerk's office. 7. Submit to the Planning Commission an application for a Conditional Use permit to utilize the R-2 Zone properties for condo minium/multi-family residential development. B. City agrees to the following: 1. In consideration of the commitments and agreement of the Developer set forth above. the Citv agrees that upon the approval of the final subdivision plat for the residential development on the Phase 1 Property and acceptance of all public improvements as defined in paragraph A (2) above to be constructed and installed by Developer on the Phase I Property, and simultaneous thereto, the City of Paducah agrees to approve and enter into a residential infill development agreement in substantially the same form as attached hereto as Exhibit A (the "Infill Agreement") with the Developer as to the Phase I Property. ?. In consideration of the commitments and agreement of the Developer set forth above, the City agrees that upon the approval of the final subdivision plat for the residential development on the Phase 11 Property and acceptance of all public improvements as defined in paragraph A (l) above to be constructed and installed by Developer on the Phase II Property, and simultaneous thereto, the City- of Paducah agrees to approve and enter into the Infill Agreement with the Developer as to the Phase II Property. 3. The Infill Agreement for both the Phase I Property and the Phase II Property shall evidence the Citv's agreement to reimburse the Developer for the actual and reasonable initial costs and expenses incurred by the Developer to construct and install the public improvements within the residential development to be developed on the Phase I Property and the Phase II Property, which public improvements are to be acquired and owned by the City, up to an amount not to exceed the total amount of ad valorem real property taxes assessed and collected by the City over a ten (10) year period, commencing with the execution of the Infill Agreement for the Phase I Property- and the Infill Agreement for the Phase II Property, from the residential development constructed on the Phase I Property and the Phase If Property, respectively. In the event the conditions precedent to the execution of the Infill Agreement for the Phase I Property are not satisfied fully within one (1) year of the date of this Memorandum of Understanding and the Infill Agreement for Phase I Property is not executed within this time frame, then the City's obligation to enter into the Infill Agreement for the Phase [ Property shall automatically terminate and be of no further force and effect. In the event the conditions precedent to the execution of the Infill Agreement for the Phase II Property are not satisfied fully- within five (5) years of the date of this Memorandum of Understanding and the Infill Agreement for Phase 11 Property is not executed within this time frame, then the City's obligation to enter into the Infill Agreement for the Phase 11 Property shall automatically terminate and be of no further force and e ffec t. 4. The City shall have no obligation whatsoever to reimburse the Developer in excess of the total amount of ad valorem real property taxes actually collected and received by the City annually during each year of the ten (10) year period from the Phase I Property or the Phase 11 Property. respectively. Further, the City's obligation to reimburse the Developer for eligible costs and expenses applicable to the Phase 1 Property and Phase II Property, respectively, shall automatically terminate upon payment in full of all such eligible costs and expenses or at the end of the ten (10) year period, whichever occurs first. C. Miscellaneous Provisions. The following miscellaneous provisions shall apply: 1. Assignment. This Memorandum of Understanding 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 Developer shall not assign his rights and obligations hereunder, in whole or in part, without the prior consent of the City, but in no event, shall anN assignment hereunder release or relieve the Developer from any obligations of this Agreement for which the Developer shall remain fully bound to the City. 2. ;Merger Clause. It is agreed and understood between the parties that this "vfemorand um of Understanding represents the entire and exclusive agreement between the parties and that all prior representations, covenants, warranties. understandings and agreements are merged herein. This Memorandum of Understanding may only be modified in writing executed by all parties hereto. 3. Construction. This Memorandum of Understandi�lg shall be governed and construed under the laws of the Commonwealth of Kentucky. 4. Assurances. The Citv and the Developer agree to execute such further documents and instruments as shall be necessary to fully carry out the terms of this Agreement. 5. amendments. This Memorandum of Understanding may not be modified or amended unless in writing signed by both parties hereto. 6. Execution and Delivery. This Memorandum of Understanding, shall be of no force or effect unless and until it shall have been executed by both the City and the Developer and approved by the governing body of the City of Paducah. 7. Time. All times referred to herein shall be strictl- construed. as all of such times shalt be deemed of the essence. [For signatures see following pages.1 4 WIT -NESS signatures of the parties as of the year and date First above written. DEVELOPER: HIGDON DEVELOPMENT, INC CITY: CITY OF PADUCAH, KENTUCKY By _ By 4h1iip 4P2,(ydo-n',"VKc-President Date: Date: Gayle Kaler, Mayor EXHIBIT A Residential Infill Development Agreement THIS INFILL DEVELOPMENT AGREEMENT (the "Infill Agreement") made and executed on this day of , 20_, by and between the City of Paducah. Kentucky, a city of the second class, 300 South Fifth Street, Paducah, Kentucky 42003 (hereinafter referred to as "City") and Higdon Development, Inc. (hereinafter referred to as "Developer"). WITNESSETH: WHEREAS, the Board of Commissioners adopted Ordinance 4 authorizing the approval of a Memorandum of Understanding (the MOU) between Development, Inc. as the Developer and the City of Paducah, which vIOU is dated 2014; and Higdon WHEREAS, the Developer is the owner of a tract of real property consisting of acres, which is located in Paducah, Kentucky, a document describing real property is set forth in the final plat which is entitled "Final Plat of the ' survey dated b} is attached thereto (the "final plat"); and WHEREAS; the Developer has obtained final subdivision approval for the Developer's development of said tract of property as a subdivision for residential purposed from the -Planning Commission on and by the Board of Commissioners on Ordinance 4 which approval is evidenced. by the final plat recorded in plat section , page in the McCracken County Clerk's office; and WHEREAS, the Board of Commissioners of the City ofPaducah finds: That an Infill Agreement with the Developer will increase residential development in the City of Paducah. That the City of Paducah's economic well-being is related to and in many respects dependent upon, sustained growvth of its population and tax revenue base through development of vacant or underutilized properties. That an Infill Agreement will encourage development of multi -family housing on vacant or underutilized land located in the mature portions of Paducah :vhere infrastructure and services are in place. That an Infill Agreement will encourage infill developr-ient on property that may have been underutilized or blighted, helping to catalyze revitalization. That infill residential development will increase the rev-Irme tax base necessary to meet Cel various capital needs, especially in the area of public safety, maintain infrastructure & facilities. promote economic development and will aid in the maintenance of existing infrastructure &: facilities. That an [nfill Agreement will help maintain growth through infill development, which encourages a healthy economy. That an Infill Agreement will encourage infill residential development, which .trill increase the population base of the City of Paducah, therefore increasing the possibility of becorning a designated urbanized area; and WHEREAS, the City desires to provide municipal services to benefit the Developers residential development and ultimately to the residents to be located therein, but requests the Developer to construct, at the Developer's cost, the public infrastructure and improvements which are necessary for the provision of such municipal services. including streets, gutters and other public improvements depicted on the final plat, which upon completion and acceptance by the City will become the property of the City; and WHEREAS, for reason that such public infrastructure and improvements will become the property- of the City upon completion of construction and acceptance by the Citi-, the City is agreeable to reimbursing the Developer for the costs and expenses (S per incurred by the Developer to construct and install such infrastructure and improvements within the residential development to the extent of the total cost and expense of same, or the arnount of ad valorem real property taxes collected by the City from property located within the residential development for a period of ten JO) years, commencing with the execution of the Infill Agreement, the lesser to apply. NOW, THEREFORE, in consideration of the foregoing provisions and for other valuable consideration, the receipt of which is hereby acknowledged by all parties hereto, the parties do covenant and agree as follows: 1. Construction of public infrastructure and improvements. The Developer shall construct and install within the residential development the public infrastructure and improvements which are necessary for the provision of miaricipal services by the City in accordance with the final plat, the subdivision plans and storrnwater management plan as approved by the City Engineer and all applicable subdivision regulations as set forth in Chapter 102 (the Subdivision Ordinance) of the Code of Ordinances of the City of Paducah, Kentucky. which shall include streets, gutters, storm sewers and a storm water conveyance system (hereinafter referred to as "Municipal Facilities"). All Municipal Facilities shall be located in Public right-of-ways dedicated by the final plat. The City Engineer shall have the right to inspect all construction of the Municipal Facilities during the construction process to ensure that construction of the Municipal Facilities are in compliance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance. 2. Acceptance by the City. Upon completion of construction of the 7 Municipal Facilities, and acceptance of the Municipal Facilities by the City Engineer, the City shall accept the Municipal Facilities, at which time the Municipal Facilities shall be deemed the sole and exclusive property of the City. Upon such acceptance, the City shall thereafter maintain the Municipal Facilities at the City's costs. Notwithstanding the foregoing, it is agreed and understood by and between the parties that the City shall not be obligated to accept the Municipal Facilities which are not constructed in accordance with the Final plat, the subdivision plans and storm%vater management plan as approved by the City Engineer and the Subdivision Ordinance. 3. Reimbursement to the Developer for costs and expenses of constructing the Municipal Facilities. [n consideration of the Developer's construction of the Municipal Facilities which are to become the property of the City, the City- hereby agrees to reimburse the Developer for the actual and reasonable initial costs and expenses incurred by the Developer to construct and install the Municipal Facilities to the extent of such costs and expenses, or to the extent of the amount of ad valorem real property taxes realized and collected by the City from the Citv's levy and tax on the residential development for a period of ten (10) years commencing with the execution of the Infill Agreement, the lesser to apply. Reimbursement of these costs and expenses shall be subject to the following terms and conditions: A. Eligibility for reimbursement. Only actual costs and expenses incurred by the Developer in the construction of the Municipal Facilities which are constructed in accordance with (lie final plat, the Subdivision plans and stormwvater management plan as approved by the City Engineer and the Subdivision Ordinance shall be eligible for reimbursement. The determination of which costs and expenses are eligible and whether construction was made in accordance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance shall be made by the City Engineer in his reasonable discretion. B. Time of request. The Developer shall oitly be entitled to make a request for reimbursement at that point in time when the Developer has fully completed construction of all of the Municipal Facilities. Any request for reimbursement shall be filed with the City on or before May 31 of any calendar year. C. Request for reimbursement. Any request for reimbursement shall be in written form. Each request shall itemize the costs and expenses which were incurred by the Developer in the construction of the Municipal. Facilities. Such itemization shall first describe the ✓Municipal Facilities which were constructed, then describe the material and labor incurred in the construction of such facilities and thereafter an itemization of the costs and expenses relating to same. The Developer shall attach to each request supporting documentation that verifies the costs and expenses incurred by the Developer in the construction of the Municipal Facilities. The Developer shall also provide to the City Engineer any other documentation 3 requested by the City Engineer which the City Engineer deems necessary or advisable in his review of the request. Each request made by the Developer shall be verified under oath. D. Review and approval by the City Engineer. Upon submission of the written request, the City Engineer shalt evaluate the request and make a determination as to the eligibility of the costs and expenses as described in the request. As part of the evaluation, the City Engineer shall also make a determination that the Municipal Facilities were constructed in accordance with the final plat, the subdivision plans and stormvvater management plan as approved by the City Engineer and the Subdivision Ordinance. In the event the City Engineer makes a detennination that the Municipal Facilities, or any party thereof, were not constructed in accordance with said standards, such determination shall render the Developer's request ineligible for reimbursement. In making such a determination, the City Engineer shall provide a written description of the deficiency or deficiencies. In such event, the Developer shall not have any ftuther right to request reimbursement under the Infill :agreement until such time that the noted deficiency or deficiencies are cured and remedied. In making his evaluation, the City Engineer shall have the right to consult with the Developer and any architect, engineer, contractor or subcontractor with whom the Developer associated with prior to or during the construction of the Municipal Facilities. E. Upon approval of eligibility of the costs and expenses of the Municipal Facilities; the City Engineer shall make a written report evidencing such approval. The City Engineer shall state in the written report the amount of the costs and expenses which were approved for reimbursement. In the event the City Engineer should reject any cost or expense as set forth in the request, the City Engineer shall provide an explanation in the written report for such rejection. Upon completion of the written report, the City Engineer shall cause a copy of such written report to be delivered to the Developer and to the Finance Department of the City of Paducah. F. Reimbursement from the Finance Department. Upon receipt of the written approval by the City Engineer, the Finance Department shall make a determination as to the amount of ad valorem real property taxes which were levied by the City for the City's sole benefit against the real property located in the residential development and actually collected and received by the City annually during each year of the ten (10) year period commencing with the execution of the Infill Agreement. The Finance Department shall make payment to the Developer in an amount equal to such taxes actually collected and received by the City annually during each year of the ten (10) year period, subject, however. to the following conditions; 9 (1) The City shall have no obligation whatsoever to reimburse the Developer in excess of the sum total amount of the taxes actually collected and received by the City during the ten (10) year period. In the event such SLIM total amount exceeds the sum total of eligible costs and expenses, the City's obligation of reimbursement shal l terminate upon full payment of such costs and expenses. (2) Any taxes which may be collected by the City for the benefit of others, such as the school board, etc., shall not be deemed a part of the reimbursement herein. (3) Only taxes actually received and collected by the City during the aforesaid ten (10) year period following the effective date of this Agreement shall be utilized in determining the reimbursement hereunder. Any taxes collected prior to or after such ten (10) year- period earperiod shall not be included in such determination, regardless of the date of assessment or levy, issuance of the tax bills or in the event of anv delinquency in payment. 4. Enforcement of Agreement, Each of the parties to this Agreement shall have the right to enforce the teens of this Agreement. In the event of such enforcement, or in the event of any dispute between the parties regarding the meaning or interpretation of any provision of this Agreement, all parties do hereby agree to submit such action to the McCracken Circuit Court. Each party shall have all rights and remedies as provided by lakv. in the event such action is filed with the YlcCracken Circuit Court, each party does hereby waive trial by jury. It is agreed by and between the parties that the prevailing party in such action shall have the right to recover its reasonable attorney's fees from the non -prevailing party as part of its costs of litigation. 5. Arbitration. Should any dispute arise between the parties, the parties will try to resolve the dispute by negotiation. If the dispute has not been resolved by such negotiation, the parties will submit the dispute for administered mediation. In the event a dispute cannot be resolved by mediation, the following provisions shall apply; (a) As to any unresolved dispute, upon the written request of any party. the dispute shall be submitted to an arbitrator to be selected by the parties. If the parties cannot agree within ten (10) days after the receipt of written notice from the other party requesting it to do so, the appointment shall be left to the American Arbitration Association. (b) Except as otherwise specifically set forth herein; the arbitrator shall conduct the arbitration in accordance �%-ith the Commercial Arbitration Rules of the American Arbitration Association. The arbitration shall take place in Paducah, Kentucky. (c) The decision in writing of the arbitrator. when tiled with the parties hereto. 10 shall be final and binding on both parties. The arbitrator shall award the costs and expenses incurred by the prevailing party against the non -prevailing parte to such extent as determined by the arbitrator as the arbitrator deems just and equitable. Judgment may be entered upon the Final decision of the arbitrator in any court having jurisdiction. Any party shall have the right to sue in court to enforce the arbitration award. In accepting arbitration, the parties expressly waive trial by jury. 6. Miscellaneous provisions. The following miscellaneous provisions shall apple: A. Notices. All notices provided for herein will be in writing and addressed to the parties. B. Other rights and remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder are in addition to and not a limitation of any duties, obligations, rights and remedies, otherwise imposed or available by law. C. Governing Law. This document shall, in all respects, be governed by the laws of the state of Kentucky. D. Entire Agreement. The Infill Agreement and the MOh expresses the complete agreement of the parties and supersedes all prior written or oral agreements or understandings between the City and the Developer with regard to the matters addressed herein. The making, execution and delivery of this Agreement by the parties hereto has not been induced by any representations, statements, warranties or agreements other than those expressly set forth herein and in the MOU. E. Amendments. The Infill Agreement mai not be modified or amended unless by in writing signed by both parties hereto. F. Time. All times referred herein shall be strictly construed, as all of such times shall be deemed of the essence. G. Counterparts. The Infill Agreement may be executed simultaneously or in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement. H. Successors and assigns. The Infill Agreement shall be binding upon the parties hereto, their heirs, successors and assigns. Effective date of Agreement. The effective date of the Infill Agreement shall be the date that the Mayor of the Cite of Paducah executes the infill Agreement. CITY OF PADUCAH, KENTUCKY Im Gavle Kaler, iVlayor HIGDON DEVELOP' VIENT, NC. r By - 1�4 &77��4_ Title '/Z!� ie - STATE OF KENTUCKY COUNTY OF tiIcCRACKEN The foregoing instrument was acknowledged before me this ZOl4, by Gavle Kaler. Mayor; City of Paducah. `-iv commission expires Notary Public, State at Large STATE 017 KENTUCKY COUNTY OF iVIcCRACKEN day of The foregoing instrument \vas acknowledged before me this day of i' 1 .20 14, by�I % �J 1'i� _ i ��'�.�� �C��_(title) on behalf f Higdon Development Inc. My commission expires -J-04. 11, Notary- Public, State at Large iv1EMORANDUIN1 OF UNDERSTANDING This is a Memorandum of Understanding made and entered into on the day of , 2014, by and between the CITY OF PADUCAH, KENTUCKY (the "City" or "City of Paducah"), a municipality of the second class and HIGDO�' DEVELOPMENT, INC., a Kentucky corporation (the "Developer"). WHEREAS, the Developer is the present owner of a certain tract of vacant real estate generally located at 451 Bleich Road in Paducah having acquired same by deed recorded in Deed Book 1059 page 407 in the McCracken County Clerk's office, located within the corporate boundaries of the City of Paducah, upon which Developer proposes to construct a residential development, which real estate is generally bounded by Bleich Road, Lakewood Drive, Ridgewood Street and east of K-Nfart, in the City- of Paducah, McCracken County, Kentucky (the "Phase I Property"); and WHEREAS, the Developer is also the present owner of certain tracts of real estate generally located at 319 Bleich Road in Paducah having acquired same by deed recorded in Deed Book 1036 page 499, in the aforesaid clerk's office, and has expressed an intent to purchase or otherwise acquire another tract of real estate, which is 309 Bleicli Road in Paducah, and more particularly described in the deed recorded in Deed Book 989 page 50, in the aforesaid clerk's office. all located within the corporate boundaries of the City of Paducah, upon which Developer proposes to construct a residential development, which real estate is eenerally bounded by the Phase I Property, Bleich Road, the Olympia Avenue area and east of K-N/fart, in the City of Paducah, McCracken County, Kentucky (the "Phase II Property"); and WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly development of vacant or underutilized properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods; and WHEREAS, the City of Paducah's economic well-being is related to and in many respects is dependent upon, sustained growth of its population ,tnd tax revenue base through the development of vacant or underutilized properties; and WHEREAS, the residential development (as defined herein) will encourage development of multi -family housing on vacant or underutilized land located in the mature portions of Paducah where infrastructure and services are in place; and WHEREAS, the residential development will encourage infill development on property that may have been underutilized or blighted, helping to catalyze revitalization; and WHEREAS, the residential development will help maintain growth through infill development, which encourages a healthy economy; and WHEREAS, the residential development will encourage infill residential development, which will increase the population base of the City of Paducah, therefore increasing the possibility of becoming a designated urbanized area, and WHEREAS, in order to insure that the residential development will have a positive impact on the entire community and to encourage the public purpose of infill residential development, it is necessary and desirable that the City now authorize the Memorandum of Understanding by and among the City of Paducah and the Developer. 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: A. Developer agrees to the following: 1. To acquire fee ownership of 309 Bleich Road prior to Developer's submittal to the Paducah Planning Commission (the "Planning Commission") a reliminarti- subdivision plat for the residential development of the Phase It Property. 2. Develop a residential development on the Phase I Property and the Phase ll Property in separate phases for the exclusive use as a condominium/multiple-family residential development and construct and install all public improvements within the residential development in accordance with the final subdivision plat or plats approved by the Planning Commission, the subdivision plans and stormwater management plan as approved by the City Engineer, and all applicable subdivision regulations as set forth in Chapter 102 (the Subdivision Ordinance) of the Code of Ordinances of the City of Padwah. Kentucky (the "residential development"). For the purposes of this 'Memorandum of Understanding, public improvements shall include: streets, sidewalks, curbs, gutters, storm sewers and storm water conveyance system, water supply and distribution facilities, sanitary sewer facilities, electric distribution facilities, street lights and survey monumentation. The residential development on the Phase I Property and the Phase II Property do not have to be completed simultaneously; provided, however, the Infill Agreement (as defined herein) relative to the Phase I Property must be executed within one (1) year from the date of this Memorandurn of Understanding and the infill Agreement (as defined herein) relative to the Phase lI Property must be executed within five (5) years from the date of this Memorandum of Understanding. 3. Submit to the Planning Commission for approval preliminary subdivision plats for the residential development on the Phase I Property and on the Phase li Property. 4. Submit to the Planning Commission for approval final subdivision plats for the residential development on the Phase I Property and on the Phase II Property. 5. Submit to the City- Engineer for approval the subdivision plans and storrmvater management plans for the residential development on the Phase I Property and the Phase II Property- in compliance with the Subdivision Ordinance. 6. Restrict the use and development of the Phase i Property and the Phase II Property to only condominium/multi-family residential units, which covenant shall run with the land and shall be binding on all parties clairning tinder and through the Developer, unless cancelled, altered or amended by a writing entered into by the Developer. or its successors, and K the City of Paducah. This covenant on the use and development of the Phase I Property and the Phase II Property shall be incorporated in the covenants and restrictions of the Phase I Property and the Phase II Property, which will be filed with the applications for the preliminary and final subdivision plats of the residential development and ultimately placed of record in the McCracken County' Clerk's office. 7. Submit to the Planning Commission an application for a Conditional Use permit to utilize the R-2 Zone properties for condom iniurrti'multi-family residential development. B. Citv agrees to the following: 1. In consideration of the commitments and agreement of the Developer set forth above, the City agrees that upon the approval of the Etna] subdivision plat for the residential development on the Phase I Property and acceptance of all public improvements as defined in paragraph A (2) above to be constructed and installed by Developer on the Phase I Property, and simultaneous thereto. the City of Paducah agrees to approve and enter into a residential infill development agreement in substantially the same form as attached hereto as Exhibit A (the "Infill Agreement") with the Developer as to the Phase I Property. 2. In consideration of the commitments and agreement of the Developer set forth above, the City agrees that upon the approval of the final subdivision plat for the residential development on the Phase iI Property- and acceptance of all public improvements as defined in paragraph A (1) above to be constructed and installed by Developer on the Phase It Property, and simultaneous thereto, the City of Paducah agrees to approve and enter into the Infill Agreement with the Developer as to the Phase II Property. I The Infill Agreement for both the Phase I Property and the Phase II Property shall evidence the City's agreement to reimburse the Developer for the actual and reasonable initial costs and expenses incurred by the Developer to construct and install the public improvements within the residential development to be developed on the Phase I Property and the Phase 11 Property, which public improvements are to be acquired and o«ned by the City, up to an amount not to exceed the total amount of ad valorem real property taxes assessed and collected by the City over a ten ( 10) year period, commencing with the execution of the Infill Agreement for the Phase 1 Property and the Infill Agreement for the Phase 11 Property, from the residential development constructed on the Phase I Property and the Phase If Property, respectively. In the event the conditions precedent to the execution of the Infill Agreement for the Phase I Property are not satisfied fully within one (1) year of the date of this Memorandum of Understanding and the Infill Agreement for Phase I Property is not executed within this time frame, then the City's obligation to enter into the Infill Agreement for the Phase I Property shall automatically terminate and be of no further force and effect. In the event the conditions precedent to the execution of the Infill Agreement for the Phase I1 Property are not satisfied fully within free (5) years of the date of this Memorandum of Understanding and the Infill Agreement for Phase 11 Property is not executed within this time frame, then the City's obligation to enter into the Infill Agreement for the Phase I1 Property shall automatically terminate and be of no further force and effect. 4. The City shall have no obligation whatsoever to reimburse the Developer in excess of the total amount of ad valorem real property taxes actually collected and received by the City annually during each year of the ten (10) year period from the Phase I Property or the Phase ll Property, respectively. Further, the City's obligation to reimburse the Developer for eligible costs and expenses applicable to the Phase I Property and Phase II Property, respectively, shall automatically terminate upon payment in full of all such eligible costs and expenses or at the end of the ten (10) year period, whichever occurs first. C. 1�Liscellaneous Provisions. The following miscellaneous provisions shall apply: 1. Assignment. This Mernorandum of Understanding shall be binding upon and shall inure to the benefit of the parties hereto, and their respective legal representatives, heirs., successors and pennitted assigns. The Developer shall not assign his rights and obligations hereunder, in whole or in part, without the prior consent of the City, but in no event, shall any assignment hereunder release or relieve the Developer from any obligations of this Agreement for which the Developer shall remain hilly bound to the City. 2. iVlerger Clause. It is agreed and understood between the parties that this Memorandum of Understanding represents the entire and exclusive agreement between the parties and that all prior representations, covenants, warranties. understandings and agreements are merged herein. This Memorandum of Understanding rrity only be modified in writing executed by all parties hereto. 3. Construction. This Memorandum of Understanding shall be governed and construed under the laws of the Commonwealth of Kentucky. 4. Assurances. The City and the Developer agree to execute such further documents and instruments as shall be necessary to Fully carr\ out the terms of this Agreement. 5. Amendments. This ivlemorandum of Understanding may not be modified or amended unless in writing signed by both parties hereto. 6. Execution and Delivery. This Llemorandum of Understanding, shall be of no force or effect unless and until it shall have been executed by both the City and the Developer and approved by the governing body of the City of Paducah. 7. Time. All times referred to herein shall be stric113 construed. as all of such times shall be deemed of the essence, [For signatures see following pages.) 4 `FITNESS signatures of the parties as of the year and date first above written, DEVELOPER HIGDON DEVELOPIMENT, INC CITY: CITY OF PADUCAH, KENTUCKY By LBy Philipigd n, ice -President Date: Date: Gayle Kaler, iVlayor EXHIBIT A Residential Infill Development Agreeinent THIS INFILL DEVELOPMENT AGREEMENT (the "Infill Agreement'') made and executed on this day of , 20_, by and between the City of Paducah, Kentucky, a city of the second class, 300 South Fifth Street, Paducah, Kentucky 42003 (hereinafter referred to as "City") and Higdon Development, Inc. (hereinafter referred to as "Developer"). WITNESSETH: WHEREAS, the Board of Commissioners adopted Ordinance # authorizing the approval of a Memorandum of Understanding (the ivl0U) between Development, Inc. as the Developer and the City of Paducah, which VIOU is dated 2014; and Higdon WHEREAS, the Developer is the owner of a tract of real property consisting of acres, which is located in Paducah, Kentucky, a document describing real property is set forth in the Final plat which is entitled "Final Plat of the it survev dated b�- is attached thereto (the "final plat"), and WHEREAS, the Developer has obtained final subdivision approval for the Developer's development of said tract of property as a subdivision for residential purposed from the Planning Commission on _ and by the Board of Commissioners on � Ordinance ,which approval is evidenced by the final plat recorded in plat section M , page iff in the NTcCracken County Clerk's office; and WHEREAS, the Board of Commissioners of the City of Paducah finds; That an Infill Agreement with the Developer will increase residential development in the Cite of Paducah. That the City of Paducah' s economic welt -being is related to and i n many respects dependent upon, sustained growth of its population and tax revenue base through development of vacant or underutilized properties. That an Infill Agreement will encourage development of multi -family housing on vacant or underritilized land located in the mature portions of Paducah vA-here infrastructure and services are in place. That an Infill Agreement will encourage infill development on property that may have been underutilized or blighted, helping to catalyze revitalization. That infill residential development wilt increase the re\-enue tax base necessary to meet 01 various capital needs, especially in the area of public safety, maintain infrastructure & facilities. promote economic development and will aid in the maintenance of existing infrastructure & facilities. That an Infill Agreement will help maintain growth through infill development, which encourages a healthy economy. That an Infill Agreement will encourage infill residential development, which will increase the population base of the City of Paducah, therefore increasing the possibility of becoming a designated urbanized area; and WHEREAS, the City desires to provide municipal services to benefit the Developer's residential development and ultimately to the residents to be located therein, but requests the Developer to construct, at the Developer's cost, the public infrastructure and improvements which are necessary for the provision of such municipal services, including streets, gutters and other public improvements depicted on the final plat, which upon completion and acceptance by the City will become the property of the City; and WHEREAS, for reason that such public infrastructure and improvements will become the property of the City upon completion of construction and acceptance by the City, the City is agreeable to reimbursing the Developer for the costs and expenses (S per ) incurred by the Developer to construct and install such infrastructure and improvements within the residential development to the extent of the total cost and expense of same, or the amount of ad valorem real property taxes collected by the City from property located within the residential development for a period of ten (10) years. commencing with the execution of the Infill _Agreement, the lesser to apply. NOW, THEREFORE, in consideration of the fore;oingy provisions and for other valuable consideration, the receipt of which is hereby acknwxledged by all parties hereto, the parties do covenant and agree as follows: 1. Construction of public infrastructure and improvements. The Developer shall construct and install within the residential development the public infrastructure and improvements which are necessary for the provision of municipal services by the City in accordance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and all applicable subdivision regulations as set forth in Chapter 102 (the Subdivision Ordinance) of the Code of Ordinances of the City of Paducah, Kentucky, which shall include streets, gutters, storm sewers and a storm .water conveyance system (hereinafter referred to as "ivlunicipal Facilities"). All Municipal Facilities shall be located in public right-of-ways dedicated by the final plat. The City Engineer shall have the right to inspect all construction of the Municipal Facilities during the construction process to ensure that construction of the Municipal Facilities are in compliance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance. 2. Acceptance by the City. Upon completion of construction of the 7 Municipal Facilities, and acceptance of the Municipal Facilities by the City Engineer. the City shall accept the Municipal Facilities, at which time the Municipal Facilities shall be deemed the sole and exclusive property of the City. Upon such acceptance, the City shall thereafter maintain the Municipal Facilities at the City's costs. Notwithstanding the foregoing, it is agreed and understood by and between the parties that the City shall not be obligated to accept the Municipal Facilities which are not constructed in accordance k\,ith the final plat. the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance. 3. Reimbursement to the Developer for costs and expenses of constructing the Municipal Facilities. In consideration of the Developer's construction of the Municipal Facilities which are to become the property of the City, the City hereby agrees to reimburse the Developer for the actual and reasonable initial costs and expenses incurred by the Developer to construct and install the Municipal Facilities to the extent of Bach costs and expenses, or to the extent of the amount of ad valorem real property taxes realized and collected by the City from the Citv's levv and tax on the residential development for a period often (10) years commencing with the execution of the Infill Agreement, the lesser to apply. Reimbursement of these costs and expenses shall be subject to the following terms and conditions: A. Eligibility for reimbursement. Only actual costs and expenses incurred by the Developer in the construction of the Municipal Facilities vvhicll are constructed in accordance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance shall be eligible for reimbursement. The determination of which costs and expenses are eligible and whether construction was made in accordance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance shall be made by the City Engineer in his reasonable discretion. B. Time of request. The Developer shall only be entitled to make a request for reimbursement at that point in time when the Developer has fully completed construction of all of the Municipal Facilities. Any request for reimbursement shall be filed with the City on or before May 31 of any calendar year. C. Request for reimbursement. Any request for reimbursement shall be in written form. Each request shall itemize the costs and expenses which were incurred by the Developer in the construction of the Municipal Facilities. Such itemization shall first describe the ivlunicipal Facilities which were constructed, then describe the material and labor incurred in the construction of such facilities and thereafter an itemization of the costs and expenses relating to same. The Developer shall attach to each request supporting docwr►entation that verifies the costs and expenses incurred by the Developer in the construction of the Municipal Facilities. The Developer shall also provide to the City Engineer any other documentation 3 requested by the City Engineer which the City Engineer deems necessary or advisable in his review of the request. Each request made by the Developer shall be verified under oath. D. Review and approval by the City Engineer. Upon submission of the written request, the City Engineer shall evaluate the request and make a determination as to the eligibility of the costs and expenses as described in the request. As part of the evaluation, the City Engineer shall also make a determination that the Nfunicipal Facilities were constructed in accordance with the final plat, the subdivision plans and stormwater management plan as approved by the City Engineer and the Subdivision Ordinance. In the event the City Engineer makes a determination that the Nfunicipal Facilities, or any party thereof, were not constructed in accordance with said standards, such determination shall render the Developer's request ineligible for reimbursement. In making such a detennination, the City Engineer shall provide a written description of the deficiency or deficiencies. In such event, the Developer shall not have any further right to request reimbursement under the Infill Agreement until such time that the noted deficiency or deficiencies are cured and remedied. In making his evaluation, the City Engineer shall have the right to consult with the Developer and any architect, engineer, contractor or subcontractor with whom the Developer associated with prior to or during the construction of the Municipal Facilities. E. Upon approval of eligibility of the costs and expenses of the iVfunicipal Facilities. the City Engineer shall make a written report evidencing such approval. The City Engineer shall state in the written report the amount of the costs and expenses which were approved for reimbursement. In the event the City Engineer should reject any cost or expense as set forth in the request, the City Engineer shall provide an explanation in the written report for such rejection. Upon completion of the written report, the City Engineer shall cause a copy of such written report to be delivered to the Developer and to the Finance Department of the City of Paducah. F. Reimbursement from the Finance Department. Upon receipt of the written approval by the City Engineer. the Finance Department shall make a determination as to the amount of ad -valorem real property taxes which were levied by the City for the City's sole benefit against the real property located in the residential development and actually collected and received by the City annually during each year of the ten (10) year period commencing with the execution of the infill :agreement. The Finance Department shall make payment to the Developer in an amount equal to such taxes actually collected and received by the City annually during each year of the ten (10) year period, subject. however. to the following conditions: 9 (1) The City shall have no obligation whatsoever to reimburse the Developer in excess of the sum total amount of the taxes actuall} collected and received by the City during the ten (10) year period. In the event such sum total amount exceeds the sum total of eligible costs and expenses, the City's obligation of reimbursement shall terminate upon full payment of such costs and expenses. (2) Any taxes which may be collected by the City for the benefit of others, such as the school board, etc., shall not be deemed a part of the reimbursement herein. (3) Only taxes actually received and collected by the City daring the aforesaid ten (10) year period following the effective date of this Agreement shall be utilized in determining the reimbursement hereunder. Any taxes collected prior to or after such ten (10) year period shall not be included in such determination, regardless of the date of assessment or levy, issuance of the tax bills or in the event of any delinquency in payment. 4. Enforcement of Agreement. Each of the parties to this Agreement shall have the right to enforce the terms of this Agreement. In the event of such enforcement, or in the event of any dispute between the parties regarding the meaning or interpretation of any provision of this Agreement, all parties do hereby agree to submit such action to the McCracken Circuit Court. Each party shall have all rights and remedies as provided by law. In the event such action is filed with the McCracken Circuit Court, each party does hereby waive trial by jury. It is agreed by and between the parties that the prevailing party in such action shall have the right to recover its reasonable attorney's fees from the non -prevailing party as part of its costs of litigation. 5. Arbitration. Should any dispute arise between the parties, the parties will try to resolve the dispute by negotiation. If the dispute has not been resolved by such negotiation, the parties will submit the dispute for administered mediation. In the event a dispute cannot be resolved by mediation, the following provisions shall apply: (a) As to any unresolved dispute, upon the written request of any party, the dispute shall be submitted to an arbitrator to be selected by the parties. If the parties cannot agree within ten (10) days after the receipt of written notice from the other party requesting it to do so, the appointment shall be left to the American Arbitration Association. (b) Except as otherwise specifically set forth herein; the arbitrator shall conduct the arbitration in accordance \iith the Commercial Arbitration Rules of the American Arbitration Association. The arbitration shall take place in Paducah, Kentucky. (c) The decision in writing of the arbitrator, %\hen tiled with the parties hereto, H shall be final and binding on both parties. The arbitrator shall award the costs and expenses incurred by the prevailing parte against the non -prevailing parte to such extent as determined by the arbitrator as the arbitrator deems just and equitable. Judgment may be entered upon the Final decision of the arbitrator in any court having jurisdiction. Any party shall have the right to sue in court to enforce the arbitration award. In accepting arbitration, the parties expressly waive trial by jury. 6. Miscellaneous provisions. The following miscellaneous provisions shall apply: A. Notices. All notices provided for herein v:ill be in writing and addressed to the parties. B. Other rights and remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder are in addition to and not a limitation of ani° duties, obligations, rights and remedies, otherwise imposed or available by law. C. Governing Law. This document shall, in all respects. be governed by the laws of the state of Kentucky. D. Entire Agreement. The Infill Agreement and the MOU expresses the complete agreement of the parties and supersedes all prior written or oral agreements or understandings between the City and the Developer with regard to the matters addressed herein. The making, execution and delivery of this Agreement by the parties liereto has not been induced by any representations, statements, warranties or agreements other than those expressly set forth herein and in the MOU. E. Amendments. The Infill Agreement mal, not be modified or amended unless by in writing signed by both partiesrhereto. F. Time. All times referred herein shall be strictly construed, as all of such times shall be deemed of the essence. G. Counterparts. The Infill Agreement may be executed simultaneously or in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement. H, Successors and assigns. The Infill Agreement shall be binding upon the parties hereto, their heirs, successors and assigns. Effective date of Agreement. The effective date of the Infill Agreement shall be the date that the Mayor of the City of Paducah executes the [nftl.l Agreement. CITY OF PADUCAH. KENTUCKY Gayle Kaler, Mayor HIGDON DEVELOPMENT, INC. By Title STATE OF KENTUCKY j COUNTY OF itilcCR-ACKEN The foregoing instrument was acknowledged before nie this day of 2014, by Gayle Kaler. Mayor, City of Paducah. My commission expires Notary Public, State at Large STATE OF KENTUCKY ) COUNTY OF MCCRACKEN The foregoing inst ument vas acknowledged before me this day of 2014, by� I ej d6 r-) on behalf of Higdon Development My commission expires gJ— A, M., Q014 Ld % " �' B14, 6 C ic, Notary Public, State at La3eawegQ;2 12