HomeMy WebLinkAboutMO #2717MUNICIPAL ORDER NO. 2717
A MUNICIPAL ORDER APPROVING A MEMORANDUM OF AGREEMENT WITH DR.
DANIEL JONES 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. 2023-03-8762
to approve the consensual annexation of 2631 Holt Road at the request of Dr. Daniel Jones; and
WHEREAS, Dr. Daniel Jones 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 Dr. Daniel Jones 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 effect rom and after the date
of its adoption.
A—
George Bray, Mayor
ATTEST:
Lindsay ParisfiJCity Clerk
Adopted by the Board of Commissioners, April 11, 2023
Recorded by Lindsay Parish, City Clerk April 11, 2023
\mo\Amexation incentives — 2631 Holt Road
Exhibit A
MEMORANDUM OF AGREEMENT
THIS MEMORANDUM OF AGREEMENT made and entered into this 11th day of April, 2023, by
and between the City of Paducah, Kentucky, 300 South 5th Street Paducah, KY 42003, (hereafter
referred to as "City"), and Go Big Blue Properties LLC, 2670 D New Holt 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 o"
approximately 3.71 acres, more or less, which is located at 2631 Holt 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: 2631 Holt 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 April 12, 2023 for a period of five (5) years terminating on April 12, 2028. 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, and due to the properties being in the same ownership, the
City will provide the property located at 2670 New Holt Road 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 2670 New Holt
Road 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
+ollar value of basic sanitation service rendered for the property. In the event the total dollar value of
oasic 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 April 12, 2023 for a period of one (1) year terminating on April 12, 2024, 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 5th Street
Paducah, KY 42003
PROPERTY OWNER:
Go Big Blue Properties, LLC
Attn: Dr. Daniel Jones
2670 D New Holt 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 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-
nnexed at anytime.
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.
CITY OF PADUCAH:
By
George Bray, Mayor
ATTEST:
Lindsay Parish, City Clerk
Property Owner:
Dr. Daniel Jones