HomeMy WebLinkAboutMO #2962MUNICIPAL ORDER NO. 2962
A MUNICIPAL ORDER ACKNOWLEDING THAT THE PADUCAH BOARD OF
COMMISSIONERS AUTHORIZES THE MAYOR TO EXECUTE A DEVELOPMENT
AGREEMENT WITH NATIONAL HOSPITALITY, LLC, FOR THE CONSTRUCTION OF A
HOTEL ON CERTAIN REAL PROPERTY CURRENTLY OWNED BY THE CITY OF
PADUCAH,KY
WHEREAS, the City holds fee title to a tract of property identified, by the McCracken
County, KY PVA, as 519 North 3rd Street, Paducah, KY 42001; and
WHEREAS, the City and the Developer agree to finalize a plan for the transfer of the
Development Site to Developer and the construction by Developer of a hotel (the "Hotel"), of
an operating brand to be mutually agreed upon, on the Development Site; and
WHEREAS, the City recognizes that the construction of the Hotel aligns with the
City's goals of enhancing tourism, job creation, and local business growth and also involves
significant capital investment and risk by the Developer; and
WHEREAS, the parties negotiated a plan for the Development Site which includes
certain incentives and abatements without which the Developer would not agree to develop the
Development Site; and
WHEREAS, in consideration of the foregoing recitals, the mutual covenants
and obligations set forth herein and other good and valuable consideration, the parties do
hereby covenant and agree as follows:
1. Conveyance of Development Site.
Subject to the provisions of this Agreement, the City agrees to convey to the
Developer, or its assigns, the Development Site in fee simple, for the purchase
price of One Dollar ($1.00). The agreement shall include a reverter in favor of the
City, and contained within the deed to be filed on record, to allow the City to
regain ownership in the event of default.
2. Site Development and Obligations of Developer.
The Developer agrees to the following terms and conditions:
(a) On or before the Closing Date, Developer shall engage the services
of architects, engineers, designers, and other necessary professionals to
begin the design and planning of the Hotel.
(b) Within a reasonable time, as agreed by both parties, after the Closing Date
(the "Construction Commencement Date"), Developer will commence
the construction of the Hotel, based upon plans that are mutually agreeable
to the Developer and the City. The parties shall mutually agree upon the
number of rooms and operating brand of the Hotel prior to the
Construction Commencement Date. Construction shall be done in a good
and workmanlike manner. The Developer agrees that the Hotel shall
be constructed in compliance with all existing City design and
construction standards as well as all applicable state and federal laws and
regulations.
(c) Developer agrees that construction of the Hotel shall be completed
within twenty-four (24) months of the Construction Commencement
Date, subject to any force majeure event and other reasonable delays
outside of the control of the Developer.
NOW, THEREFORE, BE IT ORDERED BY THE BOARD OF COMMISSIONERS OF
THE CITY OF PADUCAH, KENTUCKY:
SECTION 1: The Board of Commissioners of the City of Paducah hereby
approves and the Mayor is hereby authorized to execute a development agreement with National
Hospitality, LLC for the construction of a hotel at the location identified by the McCracken
County, KY PVA as 519 North 3rd Street, Paducah, KY 42001.
SECTION 2. This Order shall be in full force and effect from and after the date
of its adoption.
George Bray, Mayor
ATTEST:
Claudia S. Meeks, Assistant City Clerk
Adopted by the Board of Commissioners, September 30, 2024
Recorded by Claudia S. Meeks, Assistant City Clerk, September 30, 2024
mo\National Hospitality — 519 N. 31d Street — Development Agreement