HomeMy WebLinkAboutMO #2568MUNICIPAL ORDER NO. 2568
A MUNICIPAL ORDER APPROVING A MEMORANDUM OF AGREEMENT WITH
THE OVERLAND GROUP FOR CERTAIN INCENTIVES AND AUTHORIZING THE
MAYOR TO EXECUTE ALL DOCUMENTS RELATED TO SAME
WHEREAS, the City of Paducah's economic well-being is related to and in many
respects dependent upon, sustained growth of its population and tax revenue base through
annexation of contiguous territories; and
WHEREAS, the Board of Commissioners adopted Ordinance No. 2022-01-8719
on January 11, 2022 to provide for annexation incentives to be offered by the City of Paducah;
and
WHEREAS, said incentives include a property tax rebate incentive, sanitation
incentive, and closing cost incentive; and
WHEREAS, the Board of Commissioners approved Ordinance No. 2022-04-8732
to approve the consensual annexation of 5250 and 5266 US Highway 60 West at the request of
The Overland Group; and
WHEREAS, The Overland Group wishes to take part in the incentives offered by
the City of Paducah.
KENTUCKY:
NOW THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
SECTION 1. That the City of Paducah hereby approves and authorizes a
Memorandum of Agreement with The Overland Group in substantially the form attached hereto
and made part hereof (Exhibit A) in accordance with the City of Paducah Annexation Incentives
Ordinance No. 2022-01-8719.
SECTION 2. That the Mayor is hereby authorized to execute said Memorandum
of Agreement approved in Section 1 above.
SECTION 3. This Order shall be in full force and ct from and after the date
of its adoption.
George Bray, Mayor
ATTEST: I/�)
A B—iz t i
Lindsay Parish City Clerk
Adopted by the Board of Commissioners, April 26, 2022
Recorded by Lindsay Parish, City Clerk April 26, 2022
\mo\Annexation incentives — 5250 and 5266 US Highway 60 West
Exhibit A
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT made and entered into this 27th day of
April, 2022, by and between the City of Paducah, Kentucky, 300 South 5th Street
Paducah, KY 42003, (hereafter referred to as "City"), and The Overland Group, 1589
Imperial Center; Suite 2008, West Plains, MO 65775, (hereafter referred to as "Property
Owner"). City and Property Owner are each a "Party" and collectively the "Parties".
RECITALS
WHEREAS, the Property Owner is the owner of a certain tracts of real property
consisting of approximately 1.461 acres, more or less, which is located at 5250 US
Highway 60 West and 5266 US Highway 60 West, Paducah, KY and referred to as Sonic
Drive -In and Taco John's respectively; and
WHEREAS, the Property Owner's property is presently located in an
unincorporated area of McCracken County that is contiguous to the corporate boundaries
of the City and when annexed, developed, and/or sold will utilize and benefit from
municipal services, including public safety and sanitation; and
WHEREAS, the City of Paducah has established an annexation incentive program
to provide annexation incentives into the City; and
WHEREAS, the Property Owner wishes to voluntarily participate in the City
annexation incentive program whereby Sonic Drive -In and Taco John's shall be annexed
into the corporate limits of the City of Paducah; and
WHEREAS, the social and economic well being of the City is directly related to,
and in many respects dependent upon; the growth of the City and its tax revenue base
through annexation of contiguous territories. In order to meet various capital needs,
especially in the area of public safety, provide and maintain infrastructure and other public
facilities, promote economic development, and continue to provide affordable, quality
municipal services to taxpayers, the City deems it to be in its best interest to encourage
and induce contiguous developments to become part of Paducah through consensual
annexation, with all services, rights, privileges and other amenities appertaining thereto;
and
WHEREAS, as an incentive to the Property Owner to incorporate Sonic Drive -In
and Taco John's into the City through consensual annexation in order to make all
municipal services available to said properties and to facilitate overall municipal growth,
the Parties enter into an agreement by which the City will reimburse the Property Owner
the total City of Paducah real estate property tax revenues collected from any property
located therein, over a designated five (5) year period for Sonic Drive -In and Taco John's.
WHEREAS, as an incentive to the Property Owner to incorporate Sonic Drive -In
and Taco John's into the City through consensual annexation in order to make all
municipal services available to said property and to facilitate overall municipal growth, the
Parties enter into an agreement by which the Property Owner will receive free basic
sanitation service, not to exceed ten thousand ($10,000) dollars -worth of basic sanitation
service, over a designated one (1) year period for each property.
NOW, THEREFORE, in consideration of the above recitals and the mutual
covenants and conditions contained herein, the Parties agree as follows:
SECTION 1. ANNEXATION: Sonic Drive -In and Taco John's shall be annexed into
the City pursuant to KRS 81A.412.
SECTION 2. PROPERTY TAX INCENTIVE:
(A) Under the terms of this Agreement, the City will reimburse the Property Owner the
total City of Paducah real estate property tax revenues collected from any property
located therein over a designated five (5) year period.
(B) The City of Paducah real estate property tax to be reimbursed by the City to the
Property Owner under this Agreement shall be paid solely from real estate property tax
revenues collected by the City, hereafter referred to as "Tax Revenues," over a defined
period of five (5) years for Sonic Drive -In and Taco John's (the "Reimbursement Term").
(C) It is understood that all reimbursements provided in this Agreement shall be made
solely to the present Property Owner and not to any subsequent developer, purchasers,
tenants or other interests present or future. The Property Owner shall promptly inform
the City of Paducah Finance Department upon any change of address to which payments
are to be sent.
(D) It is agreed that in the event the Property Owner sells, transfers and/or leases any
part of either property, the Property Owner shall continue to receive the incentive
payments as defined in this Agreement. It is understood that the incentive payments are
to be paid directly to the Property Owner regardless as to who owns and/or leases the
properties provided the Property Owner is in compliance with all terms of this Agreement.
(E) Limitation on Reimbursement of City of Paducah property tax: The City's maximum
liability to the Property Owner for reimbursement shall not exceed the total verified sum
of all City real estate property tax revenues collected over a designated five (5) year
period for Sonic Drive -In and Taco John's.
(F) This Agreement shall commence upon its execution by both the Parties and the
reimbursement term shall begin on April 27, 2022 for a period of five (5) years terminating
on April 27, 2027. This Agreement shall remain in full force and effect for the duration of
the designated time period. At the end of the reimbursement term, this provision of this
Agreement shall be null and void.
SECTION 3. SANITATION INCENTIVE:
(A) Under the terms of this Agreement, the City will provide both properties with free
basic sanitation service, not to exceed ten thousand ($10,000) dollars -worth of basic
sanitation service, over a designated one (1) year period for each property.
(B) Basic sanitation service includes the regular, scheduled pick-up of roll -outs or
dumpsters. Appliances, mattresses, brush and the like that requires special equipment
or additional visits by Public Works personnel to retrieve said items will not be covered
under this Agreement. Construction dumpsters shall not be covered under this
agreement.
(C) It is understood that sanitation service may be transferred to another owner of the
property or any lot within the annexed area for the duration of the one (1) year time frame.
(D) It is agreed and understood that the City of Paducah Public Works Department will
track the total dollar value of basic sanitation service rendered for Sonic Drive -In and
separately for Taco John's. In the event the total dollar value of basic sanitation service
exceeds ten thousand ($10,000) dollars within the one (1) year time frame on either or
both properties, regular sanitation service fees will be added to the Property Owner's
monthly water bill beginning on the month next following when the ten thousand ($10,000)
dollars were exceeded for the associated property.
(E) It is agreed and understood that in the event sanitation service cannot be provided
by the City due to the type of refuse, volume of refuse or other contributing factors as
determined by the City of Paducah Public Works Department and another disposal
company is required, the fees generated by the disposal company will not be reimbursed.
(F) This Agreement shall commence upon its execution by both the Parties and the
sanitation term shall begin on April 27, 2022 for a period of one (1) year terminating on
April 27, 2023, unless the basic sanitation service exceeds ten thousand ($10,000) dollars
as stipulated herein. This Agreement shall remain in full force and effect for the duration
of the designated time period. At the end of the sanitation service term, this provision of
this Agreement shall be null and void.
SECTION 4. DEFAULT: REMEDIES: This Agreement may be terminated by the City, by
written notice, in the event the Property Owner breaches any one or more of the terms
and conditions set forth herein, including following all City ordinances and Planning &
Zoning requirements and fails to cure said breach within a reasonable time after written
notice thereof. This Agreement may be terminated by the Property Owner in the event
the City fails to reimburse the Property Owner on the terms and conditions set forth herein
and fails to cure said breach within a reasonable time after written notice thereof by the
Property Owner.
Upon a material breach of this Agreement by either party, the non -breaching party
shall be entitled to all remedies provided by law nor shall the City's total liability ever
exceed one hundred percent (100%) of the total real estate property tax paid to the City
of Paducah as collected from Sonic Drive -In and Taco John's.
SECTION 5. NOTICES: Any written notices or requests required under the
terms of this agreement shall be given to the following:
CITY:
City of Paducah
Attention: Director of Planning
300 South 5th Street
Paducah, KY 42003
PROPERTY OWNER:
The Overland Group
1598 Imperial Center; Suite 2008
West Plains, MO 65775
SECTION 6. AGREEMENT NULL AND VOID: This Agreement shall terminate,
and otherwise become null and void, and neither party shall have any further liability to
the other, if Sonic Drive -In and Taco John's described herein is not incorporated into the
City by the Paducah Board of Commissioners or the Commonwealth of Kentucky through
consensual annexation or, if for any reason, either property or both properties are de -
annexed at any time.
SECTION 7. ENTIRE AGREEMENT: This Agreement constitutes the entire
agreement and understanding between the Parties and supersedes all prior agreements,
promises, communications, representations, whether oral or written, by any employee,
officer, or representative of either Party hereto. There are no promises, representations,
covenants, undertakings, restrictions or conditions other than those expressly set forth
herein. Any subsequent amendment hereto shall be in writing and executed by authorized
representatives of both Parties. This Agreement shall be binding upon, and inure to the
benefit of, the Parties hereto and their respective successors and assigns, provided,
however, that this Agreement shall not be transferred or assigned to a different property
owner.
SECTION 8. SEVERABILITY: The provisions of this Agreement are
independent of and severable from each other, and no provision shall be affected or
rendered invalid or unenforceable by virtue of the fact that for any reason, other provisions
herein may be invalid or unenforceable, in whole or in part. If a court of competent
jurisdiction determines that any provision of this Agreement is invalid or unenforceable as
written, a court may interpret, construe, rewrite or revise such provision, to the fullest
extent allowed by law, so as to make it valid and enforceable consistent with the intent of
the Parties. In the event a court of competent jurisdiction finally determines that any
portion of this Agreement is invalid or unenforceable as written, neither Party shall have
any liability to the other as a result thereof.
IN WITNESS WHEREOF, the Parties have executed this Memorandum of
Agreement as of the day and year first hereinabove written.
ATTEST:
Lindsay Parish, City Clerk
CITY OF PADUCAH:
M
George Bray, Mayor
The Overland Group
99
RB Grisham