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
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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
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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
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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:
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(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,
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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
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