HomeMy WebLinkAboutMO #2605MUNICIPAL ORDER NO. 2605
A MUNICIPAL ORDER APPROVING A MEMORANDUM OF
AGREEMENT WITH WILLIAM EVANS FOR PROPERTY TAX AND SANITATION
INCENTIVES RELATED TO THE ANNEXATION OF 1630 NORTH FRIENDSHIP
ROAD, 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 1630
North Friendship Road, on July 12, 2022, by Ordinance No. 2022-07-8743; and
WHEREAS, William Evans, property owner of 1630 North Friendship 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
and sanitation 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 William Evans, in substantially the
form attached hereto and made part hereof (Exhibit A), to provide a property tax reimbursement
incentive and sanitation inventive.
SECTION 2. That the term of the property tax incentive shall be over a
designated five (5) year period. Under the terms of the Memorandum of Agreement, the City will
provide the property 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.
SECTION 3. That this Order shall be in full force and effect from and after the
date of its adoption.
George Bray, Mayor
ATTEST:
CeM
-3lh�dsay Parish,Ory l
Adopted by the Board of Commissioners, July 26, 2022
Recorded by Lindsay Parish, City Clerk, July 26, 2022
mo/agree - Incentive — William Evans 1630 North Friendship Rd Annexation
EXHIBIT A
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT made and entered into this 26th day of
July, 2022, by and between the City of Paducah, Kentucky, 300 South 5th Street Paducah,
KY 42003, (hereafter referred to as "City"), and Mr. William A. Evans, 1630 North
Friendship Road, Paducah, KY 42001, (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 tract of real property
consisting of approximately 1.93 acres, more or less, which is located at 1630 North
Friendship Road, Paducah, KY; 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 the property 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 the property 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.
WHEREAS, as an incentive to the Property Owner to incorporate the property 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.
NOW, THEREFORE, in consideration of the above recitals and the mutual
covenants and conditions contained herein, the Parties agree as follows:
SECTION 1. ANNEXATION: 1630 North Friendship 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 the property 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 the property (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 the 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 the property.
(F) This Agreement shall commence upon its execution by both the Parties and the
reimbursement term shall begin on July 27, 2022 for a period of five (5) years terminating
on July 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 the property 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.
(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 the property. In the
event the total dollar value of basic sanitation service exceeds ten thousand ($10,000)
dollars within the one (1) year time frame, 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.
(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 July 27, 2022 for a period of one (1) year terminating on
July 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 the property.
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 5t" Street
Paducah, KY 42003
PROPERTY OWNER: William A. Evans
1630 North Friendship Road
Paducah, KY 42001
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 1630 North Friendship Road 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, the property is 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, within the
annexed area.
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 hereinabgve written.
ATTEST:
Lindsay Parish, City Clerk
Property Owner:
M
Mr. William A. Evans
CITY
Bray,