HomeMy WebLinkAboutMO #2778MUNICIPAL ORDER NO. 2778
A MUNICIPAL ORDER DECLARING THE REAL PROPERTY AS
IMPROVED LOCATED AT 2301 MCCRACKEN BOULEVARD TO
BE SURPLUS PROPERTY, AUTHORIZING THE SALE OF THE
PROPERTY TO NEWGEN VENTURES, LLC, FOR AND IN
CONSIDERATION OF $3,000,000.00, AUTHORIZING THE CITY'S
PORTION OF THE SALE PROCEEDS TO BE USED TO REDEEM,
PAY AND DISCHARGE THE KENTUCKY TAXABLE GENERAL
OBLIGATION BONDS, SERIES 2013B, AND AUTHORIZING THE
MAYOR TO EXECUTE THE REAL ESTATE SALE & PURCHASE
AGREEMENT AND ALL OTHER DOCUMENTS RELATED TO
SAME
WHEREAS, G.P.E.D.C., Inc., a non-profit corporation, ("GPEDC") owns
a certain tract of land located at 2301 McCracken Boulevard which is controlled by the
City of Paducah (`the City") and County of McCracken ("the County") pursuant to a
Ground Lease Agreement dated April 22, 2013; and
WHEREAS, on April 8, 2013, the City authorized an Interlocal
Cooperation Agreement ("ILA") between the City and the County for the purpose of
acquiring, constructing and installing a building for sublease to Teletech Services at 2301
McCracken Boulevard ("the Project Improvements"); and
WHEREAS, the Project was financed through the cash payment of
$1,350,000 from the City ("City's Contribution"), the cash payment of $1,350,000 from
the County ("County's Contribution"), and the cash payment of $300,000 from the
Greater Paducah Economic Development Council, Inc. ("GPEDC Contribution"); and
WHEREAS, the City approved Ordinance No. 2013-09-8074 authorizing
the issuance of City of Paducah, Kentucky Taxable General Obligation Bonds, Series
2013B ("2013B Bonds") in the approximate aggregate principal amount of $2,485,000
(subject to a permitted adjustment increasing or decreasing the principal amount of by up
to $245,000) for the purpose of financing economic development projects including the
City's Contribution related to the Project Improvements; and
WHEREAS, the property at 2301 McCracken Boulevard is currently
vacant; and
WHEREAS, pursuant to KRS 82.083, it is hereby determined that it is in
the public interest to dispose of the Project Improvements and relinquish its leasehold
rights by transferring the property with the Project Improvements and its leasehold rights
with compensation for economic development purposes and to utilize sale proceeds to
redeem, pay, and discharge the 2013B Bonds.
NOW THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH,
KENTUCKY:
SECTION 1. The Board of Commissioners hereby declares the Project
Improvements and its leasehold rights located at 2301 McCracken Boulevard to be
surplus property as it relates to the operations of the City. Further, the Board of
Commissioners hereby authorizes the transfer of said Project Improvements and its
leasehold rights to NewGen Ventures, LLC, for compensation in the amount of
$3,000,000.00 for economic development purposes and authorizes the Mayor to execute
the Real Estate Sale and Purchase Agreement, as attached hereto and made part hereof
Exhibit A, and all other documents related to same.
SECTION 2. The Board of Commissioners hereby directs that the City's
portion of the proceeds from the sale of the Project Improvements and its leasehold rights
shall be utilized to redeem, pay, and discharge the 2013 Bonds and authorizes and directs
the Mayor and City Clerk's execution and delivery of all documents related to same.
SECTION 3. If any one or more of the provisions of this Municipal Order
should be determined by a court of competent jurisdiction to be contrary to law, then such
provisions shall be deemed to be severable from all remaining provisions and shall not
affect the validity of such other provisions.
SECTION 4. This Order shall be in fuH f r;Fe aid effect from and after
the date of its adoption.
Bray, Mayor
ATTE T:
Lindsay Pari , 'ty Clerk
Adopted by the Board of Commissioners, August 8, 2023
Recorded by Lindsay Parish, City Clerk, August 8, 2023
\mo\building sale — 2301 McCracken Blvd