HomeMy WebLinkAboutMO #2824MUNICIPAL ORDER NO. 2824
A MUNICIPAL ORDER AUTHORIZING AN ADDENDUM TO THE LEASE
AGREEMENT WITH HERITAGE OPERATING, LLC DBA CREMATION
SOCIETY OF PADUCAH AND AUTHORIZING THE MAYOR TO EXECUTE
SAID ADDENDUM AND ALL DOCUMENTS RELATED TO SAME
WHEREAS, in 2008 the City entered into a Lease Agreement with Evergreen Services of
Paducah for the operation of a crematorium in Oak Grove Cemetery; and
WHEREAS, in 2009, the City executed an amendment to the lease agreement authorizing
the assignment of the lease to the Cremation Society of Paducah, LLC; and
WHEREAS, in 2010, the City issued a memorandum for the purpose of further defining
the term of the lease and identifying the leased property; and
WHEREAS, in 2021, the City executed a second amendment to the lease agreement
authorizing certain alterations and improvements to the facility located on the leased premises;
and
WHEREAS, Cremation Society of Paducah, LLC was acquired by Heritage Operating,
LLC d/b/a Cremation Society of Paducah; and
WHEREAS, the City now wishes to enter into an addendum to the lease with Heritage
Operating, LLC d/b/a Cremation Society of Paducah for the design and development of a
cremation garden on the leased property to include the sale of above -ground inurnments and the
daily maintenance of the cremation gardens.
NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. The City hereby approves the Addendum to Lease Agreement
between the City of Paducah, Kentucky, and Heritage Operating, LLC d/b/a Cremation Society
of Paducah in substantially the same form attached hereto as Exhibit A and made a part hereof. It
is further determined that it is necessary, desirable, and in the best interest of the City to enter
into this Addendum to Lease Agreement for the purposes therein specified, and the execution
and delivery of this Addendum to Lease Agreement is hereby authorized and approved. The
Mayor is hereby authorized to execute this Addendum to Lease Agreement with such changes
not inconsistent with this Ordinance and not substantially adverse to the City as may be approved
by the Mayor.
SECTION 2. This Municipal Order shall be effec ' e from and after the date of
its adoption.
George Bray, Mayor
ATTEST:
Lindsay Parish ity Clerk
Adopted by the Board of Commissioners November 14, 2023
Recorded by Lindsay Parish, City Clerk, November 14, 2023
\mo\Cremation Society Addendum 2023 — Crematorium
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ADDENDUM TO LEASE AGREEMENT
THIS ADDENDUM TO LEASE AGREEMENT ("Addendum") is made this
day of 12023, by and between the CITY OF PADUCAH, KENTUCKY
("Lessor"") and HERITAGE OPERATING, LLC D/B/A CREMATION SOCIETY OF
PADUCAH, a Kentucky limited liability company, 226 North 4th Street, Paducah, Kentucky
("Lessee").
WHEREAS, Lessor entered into a Lease Agreement ("Original Lease") with Evergreen
Services of Paducah, LLC (`'Evergreen") doing business under the assumed name of Roth
Funeral Chapel, which Lease Agreement was dated December 16, 2008;
WHEREAS, Lessor and Evergreen entered into an Amendment to Lease Agreement
("Amendment") dated December 9, 2009, which Amendment provided an option to extend the
term and authorized the assignment of the Lease from Evergreen to Cremation Society of
Paducah, LLC;
WHEREAS, Lessor and Evergreen entered into a Memorandum ("Memorandum") on
March 26, 2010 for the purpose of further defining the term of the Lease and identifying the
leased property, which Memorandinn is of record in Deed Book 1187, page 75, in the
McCracken County Clerk's Office; and
WHEREAS, Evergreen formed a subsidiary known as Cremation Society of Paducah,
LLC, with which it entered into an Assignment of Lease Agreement assigning all of Evergreen's
rights title, and interest under the Original Lease, the Amendment, and the Memorandum, to
Cremation Society of Paducah, LLC, as Lessee;
WHEREAS, Lessor and Lessee entered into a Second Amendment to Lease Agreement
dated June 24, 2021 regarding alterations and improvements to the facility located on the leased
premises; and
WHEREAS, the Cremation Society of Paducah, LLC was acquired by Heritage
Operating, LLC d/b/a Cremation Society of Paducah; and
WHEREAS, the Lessee and Lessor agree that this addendum to the lease is necessary to
assign all of Cremation Society of Paducah, LLC's rights, title, and interest under the Original
Lease, the Amendment, the Second Amendment, and the Memorandum to Heritage Operating,
LLC d/b/a Cremation Society of Paducah, as well as to govern certain matters not addressed in
the Lease agreement and prior amendments thereto;
NOW, THEREFORE, the parties hereto agree as follows:
Assignment. As a part of Heritage Operating, LLC's acquisition of Cremation
Society of Paducah, LLC, Cremation Society of Paducah, LLC assigned to Heritage Operating,
LLC d/b/a Cremation Society of Paducah all of its rights, title, interest, warranties, covenants,
duties obligations and undertakings under the following:
A certain lease dated December 16, 2008 by and between Evergreen Services of Paducah,
LLC and the City of Paducah, Kentucky, as amended by Amendment to Lease dated
December 9, 2009 and by Second Amendment to Lease dated June 24 2021, for a certain
parcel of land in Oak Grove Cemetery more particularly described in Memorandum of
Lease dated March 26, 2010, of record in Deed Book 1187, page 75, in the McCracken
County Court Clerk's office, which lease is for an initial term expiring on December 16,
2048 with one (1) renewal term extending the Lease for ten (10) additional years.
Lessor hereby consents to the assignment of the lease as stated herein.
Amendment to Paragraph 5. The parties agree that Paragraph 5 of the Original
Lease (dated December 16, 2008) shall be stricken in its entirety and replaced with the
following:
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Lessee will erect, at its expense and in phases, a cremation (urn) garden that includes
spaces for above ground inurnments in various marked places. The spaces will be plotted on a
physical drawing of each phase of the garden, which drawing will be available for review and
approval by the city cemetery board prior to construction and at any time upon request. Lessee
shall provide all labor, materials, and equipment, and shall perform all work necessary and
incidental to the provision of cremation inurnment services, including management and
maintenance of the grounds and facilities thereon, administrative operations, and sales.
3. Amendment to Paragraph 9. The parties agree that Paragraph 9 of the Original
Lease (dated December 16, 2008) shall be stricken in its entirety and replaced with the
following:
Lessee shall remit to Lessor an amount equal to thirty percent (30%) of all fees collected
by Lessee in its operation of the Facility, whether from sales or performance of services related
to the operations of the cremation (urn) garden in the cemetery. Fees shall be remitted to Lessor
on a monthly basis and contributed to the cemetery project (PF0048). Lessee will provide for the
collection of fees from the purchaser and provide the City with a complete revenue report at the
end of each calendar quarter.
4. Record Keeping. Lessee shall be responsible for maintaining appropriate records
associated with sales and services performed and shall remit copies of such records to the City of
Paducah at the time of sale.
5. Insurance. Lessee agrees that it will comply with the insurance requirements
contained in paragraph 7 of the Original Lease.
6. Reaffirmation. All other terms, provisions, and conditions of the Lease, including
the Original Lease, Amendment, Memorandum, and Second Amendment, shall remain in full
force and effect and shall be binding upon the parties hereto.
IN WITNESS WHEREOF, this Addendum was executed as of the date first above
written.
LESSEE:
ATTEST: HERITAGE OPERATING, LLC D/B/A
CREMATION SOCIETY OF PADUCAH
By:
LESSOR:
ATTEST:
ME
CITY OF PADUCAH, KENTUCI{Y
By:
George Bray, Mayor
4
the Original Lease, Amendment, Memorandum, and Second Amendment, shall remain in full
force and effect and shall be binding upon the parties hereto.
IN WITNESS WHEREOF, this Addendum was executed as of the date first above
written.
LESSEE:
ATTEST:
In
LESSOR:
ATTEST:
an
HERITAGE OPERATING, LLC D/B/A
CREMATION SOCIETY OF PADUCAH
By:
CITY OF PADUCAH, KENTUCKY
By:.
0
George Bray, Mayor