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Home My WebLink AboutMO #3115MUNICIPAL ORDER NO. 3115 A MUNICIPAL ORDER APPROVING A MEMORANDUM OF AGREEMENT WITH DARREN AND KELLY HACK FOR CERTAIN INCENTIVES AND AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS RELATED TO SAME WHEREAS, the City of Paducah's economic well-being is related to and in many respects dependent upon, sustained growth of its population and tax revenue base through annexation of contiguous territories; and WHEREAS, the Board of Commissioners approved Ordinance No. 2025- 08-8850 to approve the consensual annexation of 1541 Olivet Church Road at the request of Darren and Kelly Hack and Dustin Hawkins; and WHEREAS, Darren and Kelly Hack wish to take part in the incentives offered by the City of Paducah. KENTUCKY: NOW THEREFORE, BE IT ORDERED BY THE CITY OF PADUCAH, SECTION 1. That the City of Paducah hereby approves and authorizes a Memorandum of Agreement with Darren and Kelly Hack in substantially the form attached hereto and made part hereof (Exhibit A) in accordance with the City of Paducah Annexation Incentives Ordinance No. 2022-01-8719. SECTION 2. That the Mayor is hereby authorized to execute said Memorandum of Agreement approved in Section 1 above. SECTION 3. This Order shall be/ eiin full force and effect from and after the date of its adoption. 9 A 1_�_ George Bray, Mayor ATTEST:. Lindsay Parish, C4 Clerk Adopted by the Board of Commissioners, September 2, 2025 Recorded by Lindsay Parish, City Clerk, September 2, 2025 \mo\Annexation incentives — 1541 Olivet Church Road MEMORANDUM OF AGREEMENT THIS MEMORANDUM OF AGREEMENT made and entered into this 2nd day of September, 2025, by and between the City of Paducah, Kentucky, 300 South 5th Street Paducah, KY 42003, (hereafter referred to as "City"), and Mr. Darren Hack & Mrs. Kelly Hack, 1541 Olivet Church Road, Paducah, KY 42001, (hereafter referred to as "Property Owners"). City and Property Owners are each a "Party" and collectively the "Parties". RECITALS WHEREAS, the Property Owners are the owner of a certain tract of real property consisting of approximately .47 acres, more or less, which is located at 1541 Olivet Church Road, Paducah, KY; and WHEREAS, the Property Owner's property is presently located in an unincorporated area of McCracken County that is contiguous to the corporate boundaries of the City and when annexed, developed and/or sold will utilize and benefit from municipal services, including public safety and sanitation; and WHEREAS, the City of Paducah has established an annexation incentive program to provide annexation incentives to the Property Owners; and WHEREAS, the Property Owners wish to voluntarily participate in the City annexation incentive program; and WHEREAS, the social and economic well being of the City is directly related to, and in many respects dependent upon; the growth of the City and its tax revenue base through annexation of contiguous territories. In order to meet various capital needs, especially in the area of public safety, provide and maintain infrastructure and other public facilities, promote economic development, and continue to provide affordable, quality municipal services to taxpayers, the City deems it to be in its best interest to encourage and induce contiguous developments to become part of Paducah through consensual annexation, with all services, rights, privileges and other amenities appertaining thereto; and WHEREAS, as an incentive to the Property Owners to incorporate the property into the City through consensual annexation, the Parties enter into an agreement by which the City will reimburse the Property Owners the total City of Paducah real estate property tax revenues collected over a designated five (5) year period. 1 WHEREAS, as an incentive to the Property Owners to incorporate the property into the City through consensual annexation, the Parties enter into an agreement by which the Property Owners will receive free basic sanitation service, not to exceed ten thousand ($10,000) dollars -worth of basic sanitation service, over a designated one (1) year period. NOW, THEREFORE, in consideration of the above recitals and the mutual covenants and conditions contained herein, the Parties agree as follows: SECTION 1. ANNEXATION: 1541 Olivet Church Road shall be annexed into the City pursuant to KRS 81A.412. SECTION 2. PROPERTY TAX INCENTIVE: (A) The City will reimburse the Property Owners the total City of Paducah real estate property tax revenues collected over a designated five (5) year period. (B) The City of Paducah real estate property tax to be reimbursed shall be paid solely from real estate property tax revenues collected by the City over the defined period of five (5) years. (C) It is understood that all reimbursements provided in this Agreement shall be made solely to the present Property Owners and not to any subsequent developer, purchasers, tenants or other interests, present or future. The Property Owners shall promptly inform the City of Paducah Finance Department upon any change of address to which payments are to be sent. (D) It is agreed that in the event the Property Owners sell, transfer and/or leases any part of the property, the Property Owners shall continue to receive the incentive payments as defined in this Agreement. It is understood that the incentive payments are to be paid directly to the Property Owners regardless as to who owns and/or leases the property provided the Property Owners are in compliance with all terms of this Agreement. (E) The City's maximum liability to the Property Owners for reimbursement shall not exceed the total verified sum of all City real estate property tax revenues collected over the designated five (5) year period. (F) This Agreement shall commence upon its execution by both the Parties and the reimbursement term shall begin on September 3, 2025 for a period of five (5) years terminating on September 3, 2030. This Agreement shall remain in full force and effect for the duration of the designated time period. At the end of the reimbursement term, this provision of this Agreement shall be null and void. 2 SECTION 3. SANITATION INCENTIVE: (A) The City will provide the property with free basic sanitation service, not to exceed ten thousand ($10,000) dollars -worth of basic sanitation service, over a designated one (1) year period. (B) Basic sanitation service includes the regular, scheduled pick-up of roll -outs or dumpsters. Appliances, mattresses, brush and the like that require special equipment or additional visits by Public Works personnel to retrieve said items will not be covered under this Agreement. Construction dumpsters shall not be covered under this agreement. (C) It is agreed and understood that sanitation service may be transferred to another owner of the property or any lot within the annexed area for the duration of the one (1) year time frame. (D) It is agreed and understood that the City of Paducah Public Works Department will track the total dollar value of basic sanitation service rendered for the property. In the event the total dollar value exceeds ten thousand ($10,000) dollars, regular sanitation service fees will be added to the Property Owner's monthly water bill beginning on the month next following when the ten thousand ($10,000) dollars were exceeded. (E) It is agreed and understood that in the event sanitation service cannot be provided by the City due to the type of refuse, volume of refuse or other contributing factors as determined by the City of Paducah Public Works Department and another disposal company is required, the fees generated by the disposal company will not be reimbursed. (F) This Agreement shall commence upon its execution by both the Parties and the sanitation term shall begin retroactively on August 27, 2025 for a period of one (1) year terminating on August 27, 2026 unless the basic sanitation service exceeds ten thousand ($10,000) dollars as stipulated herein. This Agreement shall remain in full force and effect for the duration of the designated time period. At the end of the sanitation service term, this provision of this Agreement shall be null and void. SECTION 4. DEFAULT: REMEDIES: This Agreement may be terminated by the City, by written notice, in the event the Property Owners breach any one or more of the terms and conditions set forth herein, including following all City ordinances and Planning & Zoning requirements and fails to cure said breach within a reasonable time after written notice thereof. This Agreement may be terminated by the Property Owners in the event the City fails to 3 reimburse the Property Owners on the terms and conditions set forth herein and fails to cure said breach within a reasonable time after written notice thereof. Upon a material breach of this Agreement by either party, the non -breaching party shall be entitled to all remedies provided by law nor shall the City's total liability ever exceed one hundred percent (100%) of the total real estate property tax paid to the City of Paducah as collected from the property. SECTION 5. NOTICES: Any written notices or requests required under the terms of this agreement shall be given to the following: CITY OF PADUCAH City of Paducah Attention: Director of Planning 300 South 5th Street Paducah, KY 42003 PROPERTY OWNERS: Mr. Darren Hack and Mrs. Kelly Hack 1541 Olivet Church Road Paducah, KY 42001 SECTION 6. AGREEMENT NULL AND VOID: This Agreement shall terminate, and otherwise become null and void, if the property described herein is not incorporated into the City by the Paducah Board of Commissioners or the Commonwealth of Kentucky through consensual annexation or, if for any reason, the property is de -annexed at any time. SECTION 7. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement and understanding between the Parties and supersedes all prior agreements, promises, communications, representations; whether oral or written by any employee, officer or representative of either Party hereto. There are no promises, representations, covenants, undertakings, restrictions or conditions other than those expressly set forth herein. Any subsequent amendment hereto shall be in writing and executed by authorized representatives of both Parties. This Agreement shall be binding upon, and inure to the benefit of, the Parties hereto. SECTION 8. SEVERABILITY: The provisions of this Agreement are independent of, and severable from, each other, and no provision shall be affected or rendered invalid or unenforceable by virtue of the fact that for any reason, other provisions herein may be invalid or unenforceable, in whole or in part. If a court of competent jurisdiction determines that any N provision of this Agreement is invalid or unenforceable as written, a court may interpret, construe, rewrite or revise such provision, to the fullest extent allowed by law, so as to make it valid and enforceable consistent with the intent of the Parties. In the event a court of competent jurisdiction finally determines that any portion of this Agreement is invalid or unenforceable as written, neither Party shall have any liability to the other as a result thereof. IN WITNESS WHEREOF, the Parties have executed this Memorandum of Agreement as of the day and year first hereinabove written. ATTEST: Lindsay Parish, City Clerk CITY OF PADUCAH: George Bray, Mayor Property Owners: 0 Mr. Darren Hack & Mrs. Kelly Hack 5