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HomeMy WebLinkAboutMO #3032MUNICIPAL ORDER NO. 3032 A MUNICIPAL ORDER APROVING AN ADDENDUM TO THE DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PADUCAH, KENTUCKY, C.I.R.CO PROPERTIES, LLC, AND 314 CONDOMINIUMS ASSOCIATION CORPORATION FOR THE PROPERTY LOCATED AT 324 BROADWAY AND AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS RELATED TO SAME WHEREAS, on June 11, 2024, the Board of Commissioners approved a Development Agreement with C.LR.Co., LLC, by Municipal Order 2907, declaring the property located at 324 Broadway (formerly known as 318 Broadway), Paducah, Kentucky, to be surplus property and authorizing the transfer of said property, contingent upon the Developer receiving the necessary permits from the City of Paducah; and WHEREAS, in order to comply with the requirements of the Kentucky Building Code, certain modifications and additions to the terms of the Development Agreement are required, to which the original parties and the Association have agreed; and Agreement. KENTUCKY: WHEREAS, the City now wishes to enter into an addendum to the Development NOW, THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, SECTION 1. Recitals. That the City of Paducah authorizes and directs the Mayor to execute an Addendum to the Development Agreement with C.I.R.CO, LLC in substantially the form attached hereto and made a part hereof as Exhibit "A" together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the Addendum not inconsistent with this Municipal Order and not substantially adverse to the City as may be approved by the Mayor. SECTION 2. Effective Date. This Order shall be_in oll)force and effect from and after the date of its adoption. Bray, ATTEST: �_J� dsay Paris, City Clerk Adopted by the Board of Commissioners, April 8, 2025 Recorded by Lindsay Parish, City Clerk, April 8, 2025 MO\Addendum to Development Agreement — C.I.R.CO 318 Broadway — Kresge Site EXHIBIT "A" ADDENDUM TO DEVELOPMENT AGREEMENT This Addendum is made and entered into on the day of 2025 by and between the CITY OF PADUCAH, KENTUCKY (the "City" or "City of Paducah"), C.I.R.CO PROPERTIES, LLC, a Kentucky limited liability company (the "Developer"), and 314 CONDOMINIUMS ASSOCIATION CORP., a Kentucky corporation (the "Association"). WHEREAS, the City and the Developer entered into a Development Agreement dated June 12, 2024 regarding development of a certain tract of vacant real estate located at 324 Broadway Street (the "Property"); and WHEREAS, in order to comply with the requirements of the Kentucky Building Code, certain modifications and additions to the terms of the Development Agreement are required, to which the original parties and the Association have agreed; and WHEREAS, the parties desire to formalize those modifications herein; NOW THEREFORE, in consideration of the foregoing premises, and for other valuable consideration, the legal adequacy and sufficiency of which is hereby acknowledged, the parties covenant and agree as follows: 1. Subdivision. The parties acknowledge that the Property must be subdivided in order to implement Developer's design plans while also satisfying the requirements of the Kentucky Building Code. The parties agree that the Property will be subdivided into two (2) tracts, as shown on the plat of survey attached hereto as Exhibit 1, and further described as follows: A. A 15 -foot tract adjacent to the building located at 314 Broadway Street, Paducah, Kentucky shall be conveyed from the City to 314 Condominiums Association Corp. The parties acknowledge that the Association is the current owner of 314 Broadway Street, Paducah, Kentucky, which property is being developed in conjunction with the Property subject to the Development Agreement. Conveyance of this tract shall be subject to the reversion provisions in paragraph 2 below. B. A 25 -foot tract consisting of the remaining portion of the Property (as originally described in the Development Agreement and Exhibit A thereto) shall be conveyed to the Developer in accordance with paragraph C(1) of the Development Agreement and shall be subject to the reversion provision found in Paragraph C(3) of the Development Agreement. 2. Reversion. If the Developer defaults on the Development Agreement or this Addendum, including failure to initiate construction within thirty (30) days of transfer of the property to the Association, the City may resume possession and ownership of the 15 -foot tract. The City may exercise this right of reversion by providing notice to the Association and Developer and, upon receipt of such notice, the deed shall be forfeited and the 15 -foot tract shall revert to the City for no consideration. In such event, all of the monetary investments and improvements made to such property shall be forfeited without any compensation or right to compensation whatsoever. If the City elects to exercise its rights under this section, the Association shall promptly take all reasonable steps to cause the transfer and conveyance of the property back to the City, at no out-of-pocket cost to the City, such that as nearly as practicable the City is restored with marketable fee title to the property free and clear of any mortgages, liens, encumbrances, and adverse interests. 3. Term/Termination. Developer agrees to satisfy its obligations under paragraph C(1) of the Development Agreement no later than May 31, 2025. The City reserves the right to terminate the Development Agreement and this Addendum if Developer has not satisfied its requirements under paragraph C(1) of the Development Agreement by May 31, 2025. Developer further agrees to commence work on the Development within thirty (30) days of transfer of the Property and to complete the Development within fifteen (15) months of commencing work. Failure to do so shall constitute a default of the terms of the Development Agreement and this Addendum, and, in such event, the City reserves the right to terminate this Agreement and to exercise its rights of reversion with respect to the Property. 4. BindinE Agreement/Authority. The Developer and the Association agree to be bound by the terms of the Development Agreement and this Addendum, and represent that they have all necessary authority to enter into the Development Agreement and this Addendum. 5. Ratification. The parties acknowledge that, except as stated herein, all other terms of the Development Agreement shall remain in full force and effect. WITNESS the signatures of the parties on the date first above written. 111MT1AX CLR.CO PROPERTIES, LLC Andrew Hardin, Member CITY: CITY OF PADUCAH, KENTUCKY By George Bray, Mayor By Blake Calhoun, Member Date: Date: 314 CONDOMINIUMS ASSOCATION CORP. By Blake Calhoun, President By Jared Morgan, Vice President