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HomeMy WebLinkAboutMO #2893MUNICIPAL ORDER NO. 2893 A MUNICIPAL ORDER APPROVING A RESIDENTIAL INFILL AGREEMENT BETWEEN THE CITY OF PADUCAH, KENTUCKY, AND WILLETT ENTERPRISES, INC, FOR LABARRI SUBDIVISION AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT AND ALL DOCUMENTS RELATED TO SAME WHEREAS, on November 30, 2023, the Board of Commissioners authorized a Residential Infill Agreement with EMD Properties, LLC with Ordinance No. 2023-11-8796 for reimbursement of ad valorem taxes based on costs associated with the public infrastructure in the subdivision; and WHEREAS, since the execution of said agreement, EMD Properties has agreed to sell the development to Willett Enterprises, Inc.; and WHEREAS, the City of Paducah has terminated the existing Residential Infill Agreement with EMD Properties and wishes to enter into a new Residential Infill Agreement with Willett Enterprises, LLC. KENTUCKY: NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, SECTION 1. Recitals. That the City of Paducah hereby approves a Residential Infill Agreement by and between the City of Paducah and Willett Enterprises, Inc. as attached hereto and made part hereof, for a total rebate not to exceed $197,991.86. Said Agreement shall be for a term of ten (10) years. It is further determined that it is necessary and desirable and in the best interests of the City to enter into the Residential Infill Development Agreement for the purposes therein specified. The Mayor of the City of Paducah is hereby authorized to execute the Agreement, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the Residential Infill Development Agreement. SECTION 2. Severability. If any section, paragraph or provision of this Municipal Order shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining parts of this Municipal Order. SECTION 3. Compliance with Open Meetings Laws The City Commission hereby finds and determines that all formal actions relative to the adoption of this Municipal Order were taken in an open meeting of this City Commission and that all deliberations of the City Commission and of its committees, if any which resulted in formal action, were in meetings open to the public in full compliance with applicable legal requirements. SECTION 4. Effective Date. This Order shall be in full for d effect from and after the date of its adoption. George Bray, Mayor ATTEST: Urfidsay Parish, City lerk Adopted by the Board of Commissioners, May 14, 2024 Recorded by Lindsay Parish, City Clerk, May 14, 2024 MO\Residential Infill — LaBarri Willett Enterprises Exhibit A LA BARRI SUBDIVISION RESIDENTIAL INFILL DEVELOPMENT AGREEMENT THIS RESIDENTIAL INFILL AGREEMENT made and executed on this day of , 2024, by and between the City of Paducah, Kentucky, a city of the second class, 300 South Fifth Street, P. O. Box 2267, Paducah, Kentucky 42002-2267 (hereinafter referred to as " City"), and , a Kentucky of "Developer"). WITNESSETH: (hereinafter referred to as WHEREAS, Developer has entered into an agreement with EMD Properties, LLC (hereinafter "EMD") to purchase a tract real property consisting of 6.15 acres (the "Development"), which is located in McCracken County, Kentucky. A document describing the real property, set forth in Final Plat, which is entitled Final Subdivision Plat, La Barri, dated January 9, 2019, by Mr. Herb Simmons, a Kentucky Professional Land Surveyor (P. L. S. No. 3732) is attached hereto as Exhibit A; and WHEREAS, City and EMD are parties to a Residential Infill Development Agreement ("Prior Agreement") dated November 30, 2023, a copy of which is attached hereto as Exhibit B; and WHEREAS, pursuant to the Prior Agreement, EMD agreed to construct certain Eligible Public Improvements (as defined therein), and the Eligible Public Improvements were to become the property of either the City or the Kentucky Transportation Cabinet ("KYTC" and together with the City, the "Government"), as applicable, upon inspection and acceptance; and WHEREAS, pursuant to the Prior Agreement, the City agreed to reimburse EMD for expenses associated with construction of Eligible Public Improvements, in an amount not to exceed $197,991.86, or the amount of ad valorem real property taxes realized by the City resulting from the Development for a period of eight (8) years beginning July 1, 2023, through June 30, 2031, the lesser to apply; and WHEREAS, EMD has constructed the Eligible Public Improvements, and such improvements were inspected, approved, and accepted by the City Engineer and the improvements have become property of the Government; and WHEREAS, EMD did not request reimbursement from the City for the cost of such Eligible Public Improvements prior to conveying the Development to Developer and the Residential Infill Development Agreement between the City and EMD will be terminated upon EMD's transfer of the property to Developer at closing; and WHEREAS, the City and Developer now desire to enter into this agreement to allow Developer, as the current owner of the Development, to request payment for the Eligible Public Improvements; NOW, THEREFORE, in consideration of the foregoing provisions, and for other valuable consideration, the receipt of which is hereby acknowledged by all parties hereto, the parties do covenant and agree as follows: 1. Payment to Developer for Eligible Public Improvements The City agrees to pay Developer for the cost and expense incurred by EMD under the Prior Agreement for construction of the Eligible Public Improvements, in the amount of $197,991.86, or to the extent of the amount of ad valorem real property taxes realized and collected annually by the City from the City's levy and tax on the Development for a period of ten (10) years beginning July 1, 2024, through June 30, 2034 (the "Period of Eligibility"), the lesser to apply. 2. Requests for Pam On or before May 31 of any calendar year, Developer may request payment from the City in an amount equal to the total ad valorem real property taxes realized and collected by the City against the real property located in the Development during the Period of Eligibility. Developer shall submit such request in writing to the City Engineer's Office. The City Engineer's office shall present the request to the Finance Department, who shall make a determination as to the amount of ad valorem real property taxes which were levied by the City for the City's sole benefit against the real property located in Developer's Development and actually collected and received by the City for each year period during the Period of Eligibility. The Finance Department shall make payment to the Developer in an amount equal to such taxes actually collected and received by the City specific to each of the City's Fiscal Years within the Period of Eligibility, subject, however, to the following conditions: A. Only taxes actually received and collected by the City during the Period of Eligibility following the effective date of this Agreement from levies against the Developer' s Development shall be utilized in determining the payments described herein. Any taxes collected prior to the Period of Eligibility shall not be included in such determination, regardless of the date of assessment or levy, issuance of the tax bills, or in the event of any delinquency in payment. B. Any taxes which may be collected by the City for the benefit of others, such as the school board, etc., shall not be deemed a part of the reimbursement herein. C. The City shall have no obligation whatsoever to reimburse the Developer in excess of the sum total amount of the ad valorem real property taxes actually collected and received by the City annually during the Period of Eligibility. D. The City's obligation of payment hereunder shall terminate the earlier of 1) such time as payments from the City to the Developer equal $197,991.86, or 2) upon expiration of the Period of Eligibility, 3. No Transfer/Assignment. The rights and obligations of Developer hereunder shall not be transferred or assigned by Developer to any third -party purchaser or transferee of the Development, and no transfer or sale of the Development shall release Developer from any of its obligations hereunder. In no event shall the City be obligated to offer the incentives offered to Developer hereunder to a third -party purchaser or transferee of the Development. 4. Miscellaneous Provisions. The following miscellaneous provisions shall apply: A. Enforcement of Agreement. Each of the parties to this Agreement shall have the right to enforce the terms of this Agreement. In the event of such enforcement, or in the event of any dispute between the parties regarding the meaning or interpretation of any provision of this Agreement, all parties do hereby agree to submit such action to the McCracken Circuit Court. Each party shall have all rights and remedies as provided by law. In the event such action is filed with the McCracken Circuit Court, each party does hereby waive trial by jury. It is agreed by and between the parties that the prevailing party in such action shall have the right to recover its reasonable attorney' s fees from the non -prevailing party as part of its costs of litigation. B. Notices. All notices provided for herein will be in writing and addressed to the parties at the addresses as referenced above. C. Other Rights and Remedies. The duties and obligations imposed by this Agreement and the rights and remedies available thereunder are in addition to and not a limitation of any duties, obligations, rights, and remedies, otherwise imposed or available by law. D. Governing Law. This document shall, in all respects, be governed by the laws of the state of Kentucky. G. Entire Agreement. This Agreement expresses the complete agreement of the parties and supersedes all prior written or oral agreements or understandings between the City and the Developer with regard to the matters addressed herein. The making, execution, and delivery of this Agreement by the parties hereto has not been induced by any representations, statements, warranties or agreements other than those expressly set forth herein. H. Amendments. This Agreement may not be modified or amended unless by a writing signed by both parties hereto. I. Time. All times referenced herein shall be strictly construed, as all of such times shall be deemed of the essence. J. Counterparts. This Agreement may be executed simultaneously or in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same agreement. K. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, and their respective legal representatives, heirs, successors and permitted assigns. L. Effective Date of Agreement. The effective date of this Agreement shall be the date that the mayor of the City of Paducah executes this Agreement and has received the approval of the governing body of the City of Paducah, subject to the contingencies contained in paragraph M below. M. Contingency. The parties acknowledge that closing on the transaction between EMD and Developer is scheduled for June 4, 2024. Developer shall notify the City if closing is delayed, or if the purchase agreement between Developer and EMD is terminated. In the event that Developer does not purchase the Development from EMD, then this Agreement shall be void and of no force or effect. N. Assurances. The Developer agrees to execute such further documents and instruments as shall be necessary to carry out the terms of this Agreement fully. IN WITNESS WHEREOF, the parties hereto have executed this agreement effective as of the date first stated above. CITY OF PADUCAH LE George Bray, Mayor Date: DEVELOPER: By: Title: Date: