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HomeMy WebLinkAboutMO #2757MUNICIPAL ORDER NO. 2757 A MUNICIPAL ORDER APPROVING A MEMORANDUM OF AGREEMENT WITH MR. GEORGE SULLIVAN 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 approved Ordinance No. 2023- 05-8775 to approve the consensual annexation of 252 Locust Avenue at the request of Mr. George Sullivan; and WHEREAS, Mr. George Sullivan wishes to take part in the incentives offered by the City of Paducah. NOW THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the City of Paducah hereby approves and authorizes a Memorandum of Agreement with Mr. George Sullivan 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 1 be in full force and effect from and after the date of its adoption. �,& George Bray, Mayo ATTEST: (^�`\\\\\jj Q Lindsay Parish, C fflierk Adopted by the Board of Commissioners, July 11, 2023 Recorded by Lindsay Parish, City Clerk July 11, 2023 \mo\Annexation incentives — 252 Locust Avenue Exhibit A MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT made and entered into this 14th day of June, 2023, by and between the City of Paducah, Kentucky, 300 South 5' Street Paducah, KY 42003, (hereafter referred to as "City"), and Mr. George Sullivan, 3482 Trail Head Drive; Unit 104, 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 252 Locust Avenue, Paducah, KY; and WHEREAS, approximately 1.3 acres, more or less, of the total tract is proposed to be annexed and the terms and agreements contained within this MOA shall only be applicable to said annexed portion of the tract; 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 the annexed portion of the tract 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 be able to obtain a building permit for a pole -barn type building or similar for no cost. Said building must be constructed on the annexed portion of the tract. 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 be able to construct an ingress/ egress off Coleman Road for access to the annexed portion of the property. Said ingress/ egress must have approval from the City of Paducah Engineering Department. 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: Approximately 1.3 acres of the 1.93 -acre tract 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 annexed portion of the tract 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 July 12, 2023 for a period of five (5) years terminating on July 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. BUILDING PERMIT INCENTIVE: (A) Under the terms of this Agreement, the Property Owner may apply for a building permit at no cost for one (1) pole -barn type structure. A building permit for one (1) structure similar to a pole -barn may be obtained at no cost. The term "similar" shall be at the discretion of the Fire Prevention Division if the structure is similar to a pole -barn type structure. (B) The building permit shall cover footer/ foundation inspections, on-going construction inspections and electrical inspections and any other inspection conducted by City of Paducah Fire Prevention personnel in accordance with the approved building permit. (C) More than one (1) structure constructed on the annexed portion of the property or a different structure that is not a pole -barn type structure or similar shall be required to obtain a building permit at cost. SECTION 4. SANITATION INCENTIVE: (A) Under the terms of this Agreement, the City will provide the annexed portion of 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) The one (1) year time frame must be utilized within five (5) years of the annexation date, said date being July 12, 2023. The Property Owner must notify the City of Paducah Planning Department, in writing, when the one (1) year sanitation service is to begin. Said date shall include ample time for the Planning Department to notify the Public Works Department. SECTION 5. INGRESS/ EGRESS INCENTIVE: (A) Under the terms of this Agreement, the Property Owner may construct at least one (1) ingress/ egress point from Coleman Road to the annexed portion of the tract. (B) The Property Owner shall obtain all necessary permits and approvals from the Engineering Department for the ingress/ egress point(s). SECTION 6. 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 7. 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 5' Street PROPERTY OWNER: Paducah, KY 42003 George Sullivan Revocable Trust Attn: Mr. George Sullivan 3482 Trail Head Drive; Unit 104 Paducah, KY 42001 SECTION 8. 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 9. 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 Parry 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 10. 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: 0 George Bray, Mayor Property Owner: Mr. George Sullivan