HomeMy WebLinkAboutMO #2599MUNICIPAL ORDER NO. 2599
A MUNICIPAL ORDER APPROVING A MEMORANDUM OF
AGREEMENT WITH HARRIETT REED FOR PROPERTY TAX INCENTIVES
RELATED TO THE ANNEXATION OF 5345 HINKLEVILLE ROAD AND 5435 U.S.
HIGHWAY 60, AND AUTHORIZING THE MAYOR TO EXECUTE ALL
DOCUMENTS RELATED TO SAME
WHEREAS, the City of Paducah has established an annexation incentive program
to provide certain annexation incentives in the City; and
WHEREAS, the City of Paducah approved the consensual Annexation of 5345
Hinkleville Road (which includes 5435 U. S. Highway 60), on June 28, 2022, by Ordinance No.
2022-05-8742; and
WHEREAS, Harriett Reed, property owner of 5345 Hinkleville Road, wishes to
voluntarily participate in the City annexation incentive program whereby the property described
above was previously annexed into the City of Paducah; and
WHEREAS, the City of Paducah now wishes to provide a property tax incentive
to the property owner as an annexation incentive.
KENTUCKY:
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
SECTION 1. That the Board of Commissioners hereby approves and authorizes
the Mayor to execute a Memorandum of Agreement with Harriett Reed, in substantially the form
attached hereto and made part hereof (Exhibit A), to provide a property tax reimbursement
incentive.
SECTION 2. That the term of the property tax incentive shall be over a
designated five (5) year period.
SECTION 3. That this Order shall be in full force and effect from and after the
date of its adoption.
TTE T:
indsay Parish ity Clerk
Adopted by the Board of Commissioners, July 12, 2022
Recorded by Lindsay Parish, City Clerk, July 12, 2022
mo/agree - Incentive — Harriet Reed 5345 Hinkleville Road Annexation
EXHIBIT A
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT made and entered into this 12th day of
July, 2022, by and between the City of Paducah, Kentucky (hereafter referred to as "City")
and Ms. Harriett Reed (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 12.79 acres, more or less, which are located at 5345 Hinkleville Road in
McCracken County and 5435 US Highway 60 West in the City of Paducah; and
WHEREAS, 5345 Hinkleville Road 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 5345 Hinkleville Road 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 5345 Hinkleville Road
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 both 5345 Hinkleville Road and 5435 US Highway 60 West.
NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and
conditions contained herein, the Parties agree as follows:
SECTION 1. ANNEXATION: 5345 Hinkleville Road 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 5345 Hinkleville Road and 5435
US Highway 60 West 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
5345 Hinkleville Road and 5435 US Highway 60 West (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 both properties.
(F) This Agreement shall commence upon its execution by both the Parties and the
reimbursement term shall begin on July 13, 2022 for a period of five (5) years terminating
on July 13, 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. 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 5345 Hinkleville Road and 5435 US Highway 60 West.
SECTION 4. 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 5t" Street
Paducah, KY 42003
PROPERTY OWNER:
Walter & Harriett Reed Revocable Living Trust
Attn: Harriett Reed, Trustee
1670 Spring Branch Road Northeast
New Salisbury, IN 47161
SECTION 5. 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 5345 Hinkleville Road 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, 5345 Hinkleville Road is de -annexed at any time.
SECTION 6. 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:
George Bray, Mayor
Walter & Harriett Reed Revocable Living Trust
0
Harriett Reed