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Home My WebLink AboutMO #2623MUNICIPAL ORDER NO. 2623 A MUNICIPAL ORDER APPROVING A MEMORANDUM OF AGREEMENT WITH JACQUELINE ANN BELL FOR PROPERTY TAX INCENTIVES RELATED TO THE ANNEXATION OF 3520 OLIVET CHURCH 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 3520 Olivet Church Road, on July 26, 2022, by Ordinance No. 2022-07-8744; and WHEREAS, Jacqueline Ann Bell, property owner of 3520 Olivet Church 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 Jacqueline Ann Bell, 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. ' George Bray, Mayor ATT ST:. "-1L"CL)aA Qun( indsay Patio, City Clerk Adopted by the Board of Commissioners, August 9, 2022 Recorded by Lindsay Parish, City Clerk, August 9, 2022 mo/agree - Incentive — Jacqueline Ann Bell 3520 Olivet Church Rd Annexation EXHIBIT `A' MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT made and entered into this 9th day of August, 2022, by and between the City of Paducah, Kentucky, 300 South 5th Street Paducah, KY 42003, (hereafter referred to as "City"), and Ms. Jacqueline Ann Bell, 3735 Minnich Avenue, 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 1.06 acres, more or less, which is located at 3520 Olivet Church 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. NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and conditions contained herein, the Parties agree as follows: SECTION 1. ANNEXATION: 3520 Olivet Church 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 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 (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 the designated five (5) year period. (F) This Agreement shall commence upon its execution by both the Parties and the reimbursement term shall begin on August 10, 2022 for a period of five (5) years terminating on August 10, 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 the property. 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 5th Street Paducah, KY 42003 PROPERTY OWNER: Ms. Jacqueline Ann Bell 3735 Minnich Avenue Paducah, KY 42001 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 the property 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 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 7. 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: By George Bray, Mayor Property Owner: M Ms. Jacqueline Ann Bell