HomeMy WebLinkAboutMO #3116MUNICIPAL ORDER NO. 3116
A MUNICIPAL ORDER APPROVING A MEMORANDUM OF AGREEMENT WITH
DUSTIN HAWKINS 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 6615 Blandville Road at the request of
Darren and Kelly Hack and Dustin Hawkins; and
WHEREAS, Dustin Hawkins wishes to take part in the incentives offered
by the City of Paducah.
11.401IAZ�.4ty
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 Dustin Hawkins 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 in full force and effect from and after
the date of its adoption.
,::;9 PA -
George Bray, Mayor
ATTFB'I':
mdsay Parish, ity Clerk
Adopted by the Board of Commissioners, September 2, 2025
Recorded by Lindsay Parish, City Clerk, September 2, 2025
\no\Annexation incentives — 6615 Blandville 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. Dustin Hawkins, P.O. Box 976,
Mayfield, KY 42066, (hereafter referred to as "Property Owner"). City and Property Owner are
each a "Party" and collectively the "Parties".
RECITALS
WHEREAS, the Property Owner is the owner of a certain tract of real property
consisting of approximately .41 acres, more or less, which is located at 6615 Blandville 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 Owner; and
WHEREAS, the Property Owner wishes 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 Owner to incorporate the property into the
City through consensual annexation, the Parties enter into an agreement by which the City will
reimburse the Property Owner 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 Owner to incorporate the property into the
City through consensual annexation, the Parties enter into an agreement by which the
Property Owner 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: 6615 Blandville Road shall be annexed into the City
pursuant to KRS 81A.412.
SECTION 2. PROPERTY TAX INCENTIVE:
(A) The City will reimburse the Property Owner 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 Owner and not to any subsequent developer, purchasers,
tenants or other interests present or future. The Property Owner 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 Owner sells, transfers and/or leases any part
of the property, the Property Owner 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 Owner regardless as to who owns and/or leases the property provided the
Property Owner is in compliance with all terms of this Agreement.
(E) The City's maximum liability to the Property Owner 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. This one (1) year time period may begin after the issuance of a Certificate of
Occupancy for any building(s) constructed on the property. The one (1) year time frame shall
only be applicable to any initial building(s) constructed on the property and not to any new
buildings constructed thereafter.
(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) It is agreed and understood that the Property Owner shall notify the City in sufficient
time to coordinate with the Public Works Department when to start said one (1) year time
frame.
(G) This Agreement shall commence upon its execution by both the Parties and the
sanitation term shall begin as agreed when the City of Paducah is notified to commence the
one (1) year time frame. 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.
3
SECTION 4. DEFAULT: REMEDIES: This Agreement may be terminated by the City, by
written notice, in the event the Property Owner breaches 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 Owner in the event the City fails to
reimburse the Property Owner 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 OWNER:
Dustin Hawkins
P.O. Box 976
Mayfield, KY 42066
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.
0
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
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 Owner:
Mr. Dustin Hawkins