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HomeMy WebLinkAbout2025-12-8864ORDINANCE NO. 2025-12-8864 AN ORDINANCE ABOLISHING ORDINANCE NO. 2023-06-8782 AND ESTABLISHING AND APPROVING SIMPLIFIED SOUTHSIDE INCENTIVES FOR HOMEOWNERS AND DEVELOPERS AND AUTHORIZING THE DIRECTOR OF PLANNING AND URBAN RENEWAL AND COMMUNITY DEVELOPMENT AGENCY TO ADMINISTER THE INCENTIVE PROGRAMS AND PROVIDE FINANCIAL ASSISTANCE TO ELIGIBLE APPLICANTS FOR IMPROVEMENTS, REPAIR, REMODEL, RECONSTRUCTION OF EXISTING HOMES AND CONSTRUCTION OF NEW HOMES TO SUPPORT THE SOUTHSIDE REVITALIZATION PLAN WHEREAS, the City of Paducah is presently engaged in a neighborhood redevelopment program and has adopted the Southside Revitalization Plan (the "Plan); and WHEREAS, the primary purposes of the redevelopment program and Plan are to begin with the revitalization of the Phase One area of Southside neighborhood as outlined in the Plan; with future phase areas to come, as adopted by the City Commission on August 12, 2025, through the improvements, repair, remodel, and reconstruction of existing homes and the new construction of homes which preserve the residential character of the area; and WHEREAS, part of the Tools for Neighborhood Revitalization of the Southside Revitalization Plan are to develop additional incentives to attract more development, help with homeowner repair, and homeowner buyer incentives amongst other efforts; and WHEREAS, the City of Paducah has committed funds for the establishment of these Southside Incentives, which will be utilized to accomplish the Program Goals of the Plan; and WHEREAS, the City of Paducah now intends to end and repeal its previous incentive programs and to amend and replace part of Chapter 34 (Community Planning & Development) to create new incentives in support of the Southside Revitalization Plan. NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY: SECTION 1. Chapter 34 Article X (Sections 34-191 through 34-205), entitled Southside Business Improvement Grant Program, Article XI (Sections 206 through 220 entitled Southside Home Rehabilitation and New Construction Incentive Program, and Article XII (Sections 221 through 225) entitled Southside Home Repair Micro Grant Program are hereby repealed in their entirety. Further, they are to be replaced in full as set forth below. SECTION 2. Any Applicant, contract, or incentives authorized under the previous Southside Incentive Grant Programs will be continued and completed as per the program applications and agreements, and the repeal of these sections shall not affect their validity or their ability to finish and/or complete. SECTION 3. Eligibility, administration and approvals under the Southside Program Phase One incentive programs will be determined by the Director of Planning and/or Urban Renewal and Community Development Agency (U.R.C.D.A.) based upon the criteria outlined herein. Eligibility will be determined on a "first come, first serve basis," until the fund is depleted. The Director of Planning and/or U.R.C.D.A. are specifically authorized to approve grant awards not to exceed Thirty Thousand Dollars ($30,000.00) pursuant to Homeowner Grants and Seventy -Five Thousand Dollars ($75,000.00) pursuant to Developer Grants. SECTION 4. Article X of the City of Paducah Code of Ordinances shall be replaced as follows: ARTICLE X. SOUTHSIDE REVITALIZATION PLAN INCENTIVES. Section 34-191. Title. This article shall be known as the Southside Revitalization Plan Incentives, and shall consist of two (2) incentive programs: Homeowner Grants and Developer Grants. Section 34-192. Purpose, The purpose of this article is to provide landowners, homeowners and developers within the Southside Paducah Neighborhoods, as outlined in the Plan, with incentives to improve, repair, remodel or reconstruct existing homes and construct new homes to revitalize the neighborhoods located in the Southside. Section 34-193. General Provisions for Homeowner Grants. General Provisions for Homeowner Grants are as follows: A. Applicants must reside on the premises as their primary residence, the structure must be located in the Phase One area of the Plan and Applicants must state the name or names of all person(s) claiming the property to be their primary residence. Applicants may request a waiver of this requirement for unique circumstances. B. Applicants must provide a copy of the deed to the premises, and every person or entity on the deed must also sign the application. C. Applicants must be current on property taxes. D. Applicants must certify whether or not they have any other southside incentive grant or development agreement for the premises, and that they acknowledge the limitations of the number of southside incentives per premise permitted. E. It is recommended that the real property has no liens, other than a I't mortgage. If the property has additional liens, Applicants shall identify and state each such lien and provide a written explanation as to the nature of the lien(s), the amount and any plan to address or release such lien(s). F. Required permits shall be obtained for each project as applicable. Any associated permit fees may be included as a project expense. G. The project must be completed within one (1) year of the date on the award letter, unless a request for extension is submitted with good cause demonstrated, and an extension letter is issued. Extensions for less than thirty (30) days may be approved by city planning staff, while extensions greater than thirty (30) days will be forwarded to U.R.C.D.A. for approval. Projects that are not completed within one (1) year will have their grant award terminated, and the grants proceeds will be reallocated. H. Under no circumstances will funds be awarded to the Applicant prior to completion of the project. This is reimbursement only after completion of the project. I. Grant awards shall not exceed 30% of the verified improvement costs of the project and shall not and cannot exceed a maximum of Thirty Thousand Dollars ($30,000.00) per address or property regardless of the investment amount. J. There is a minimum of Five Thousand Dollars ($5,000.00) verified improvement cost for the project to be eligible for funding. K. Grant award amounts, less than Ten Thousand Dollars ($10,000.00), shall be in the form of a grant requiring no repayment conditions. L. Grant Awards exceeding the Ten Thousand Dollars ($10,000.00) threshold shall be made through a forgivable and deferred payment loan, secured and outlined herein. Section 34-194. Homeowner Grants Exceeding Threshold. A. Any grant award below Ten Thousand Dollars ($10,000.00) may be approved by the City Planning Director. Any grant award exceeding Ten Thousand Dollars ($10,000.00) shall be reviewed by city planning staff for completeness and forwarded to U.R.C.D.A. for approval. Additionally, for any grant award exceeding the Ten Thousand Dollars ($10,000.00) threshold, Applicant shall be required to enter into a forgivable -deferred payment loan, secured by a mortgage in favor of the City of Paducah, at 0% interest. This loan shall be evidenced by a promissory note payable to the City of Paducah. The City of Paducah will prepare the promissory note and mortgage to be recorded. The mortgage will be filed of record, but it may or may not be filed with the benefit of a title examination performed by staff or outside professionals. The promissory note and mortgage will be for the total of the grant award (not to exceed $30,000.00) and structured to be forgiven over a period of five (5) years. If the Applicant resides in the residence for a period of 5 years, the loan shall be forgiven, and a mortgage release shall be filed of record at the City's cost. If the Applicant moves or sells the property within five (5) years, the note is to be paid by the Applicant or the seller at closing at a sliding reduced rate as outlined in the promissory note. The date of the promissory note and the mortgage shall serve as the beginning of the repayment period. 1. Sale of property less than one year equals 100% repayment. 2. Sale of property after one year, but less than two years, equals 80% repayment. 3. Sale of property after two years, but less than three years, equals 60% repayment. 4. Sale of property after three years, but less than four years, equals 40% repayment. 5. Sale of property after four years, but less than five years, equals 20% repayment. 6. Sale of the property after more than five years equals 0% repayment. Additionally, Applicants may approach the City after five (5) years to initiate a mortgage release. B. Applicants may make more than one (1) application for a Homeowner Grant for each address or property. However, each address or property shall be limited to three (3) applications in total, and the applications shall not cumulatively exceed the $30,000.00 limit as outlined in section 34-193(H) above. Section 34-195. Application, Administration and Reimbursement Payment Process: A. Applications shall be submitted by paper or online. Applicants are solely responsible for submitting a complete application. In addition to the application the following attachments will be required: Photographs showing the existing conditions of the proposed project. 2. Detailed plans for the proposed project including but not limited to: a. Detailed description of planned improvements; or b. Drawings of the proposed changes. 3. Third Party estimates for the cost of the proposed improvements. 4. Proof of financial ability to complete the proposed improvements by providing a bank letter of credit, bank loan commitment, bank statements, credit documents or other financial instrument. 5. Copy of the deed. All persons on the deed will be required to sign the note and mortgage for the forgivable deferred loan. 6. Any other documentation supporting the Applicants request for program funds. 7. All Applicants must submit a W-9. All funds awarded are considered income and will be reported to the IRS at the end of the year. A 1099 will be mailed to the Applicant at the end of the year. B. Upon submittal of a complete application it will be reviewed by Planning Staff in the order of date as received. Incomplete applications will not be accepted. 2. Complete applications that have all the required attachments will be forwarded to the Planning Director or U.R.C.D.A. for final approval. Upon final approval, an award letter will be mailed/emailed to the Applicant. C. Applicant will complete the work outlined in the application and the award letter. All work must be completed after the date of the award letter. D. Requesting payment of approved funds: To obtain funds Applicant will submit a request for payment of the incentive award. 2. Additional documents required for the reimbursement include: a. Copy of Certificate of Completion/Certificate of Occupancy issued by the Fire Prevention Division of the Fire Department if applicable. If approval is not required by the Fire Prevention Division, a site inspection and approval by a member of the Planning Staff will be required prior to the approval of the reimbursement. b. Photographs of the completed project. C. Proof that all expenditures have been paid in the form of: • An affidavit signed by all contractors certifying that they have been paid in full and that no lien will be filed against the property or, • Copy of all invoices with proof of payment to match each invoice The request will be reviewed for completion and once approved: a. The City will issue a payment either by electronic bank transfer or check to the Applicant for incentives that do not exceed $10,000.00; b. For incentive amounts exceeding $10,000.00 per parcel, the City will have the promissory note and mortgage prepared and order a check. The check will be delivered to the Applicant upon signing of the note and mortgage. Section 34-196. General Provision for Developer Grants. General Provisions for Developer Grants. Applications for Developer Grants shall be created, administered, and reviewed by the City Planning Department. Applications shall be reviewed for completeness. After an application is deemed complete, the City Planning Department will work with the applicant to draft a formal Development Agreement that will outline all provisions and conditions of the development project in greater detail. Applications and proposed Development Agreement will be forwarded to U.R.C.D.A. for approval, denial or revision. Section 34-197. Developer Grants Structure. A. All Developer Grants shall be required to enter into (a) a Developer Agreement, (b) forgivable -deferred payment loan, and (c) secured by a mortgage in favor of the City of Paducah at 0% interest. This loan shall be evidenced by a promissory note payable to the City of Paducah. The City of Paducah will prepare the Developer Agreement, promissory note and mortgage to be recorded. The mortgage will be filed of record, but it may or may not be filed with the benefit of a title examination performed by staff or outside professionals. The promissory note and mortgage will be for the total of the grant award (not to exceed $75,000.00) and structured to be forgiven over a period of ten (10) years. If buyer resides in the residence for a period of 10 years, the loan shall be forgiven, and a mortgage release shall be filed of record at the City's cost. If the owner moves or sells the property within ten (10) years, the note is to be paid by the owner at closing at a sliding reduced rate as outlined in the promissory note. The date of the promissory note and the mortgage shall serve as the beginning of the repayment period. B. Applicants may not make more than one (1) application for a Developer Grant for each address or property, and no grant award shall exceed Seventy -Five Thousand Dollars ($75,000.00). Section 34-198. Application, Administration and Reimbursement Payment Process: A. Applications shall be submitted by paper or online. Applicants are solely responsible for submitting a complete application. Applications shall include but not be limited to (i) detailed description of the home to be constructed, (ii) detailed plans of the home to be constructed, (iii) detailed estimates broken down by category and (iv) proof of financial ability to complete the project and (v) any other documentation supporting the Applicant's request for program funds. B. Incomplete applications will not be accepted. C. Complete applications that have all the required attachments will be forwarded to U.R.C.D.A. for final approval. Upon final approval by U.R.C.D.A., a Developer Agreement will be signed. D. Applicants will complete the work outlined in the application and per the provisions of the Developer Agreement. E. To obtain funds at the completion of the project, Applicant will submit a written request for payment of the incentive to city planning staff. Additional documents required for the reimbursement may include, but not be limited to (i) copy of Certificate of Completion/Certificate of Occupancy issued by the Fire Prevention Division, (ii) photographs of the completed project, (iii) proof that all expenditures have been paid and/or lien waivers signed by all contractors or subcontractors certifying that they have been paid in full and that no lien will be filed against the property. F. Request will be reviewed for completeness and if approved, city planning staff will work with the closing agency to have all the necessary documents ready for closing including a note and mortgage for the grant funds prepared. The City will provide funds at closing for the amount awarded in the award letter. Section 34-199. Review/Reporting Progress to the City Commission A. Each year, the Planning Department shall report to the City Commission on the progress of the Southside Revitalization Plan Incentives. B. After five (5) years, the City Commission shall evaluate market conditions within Phase One of the Southside Neighborhood to determine whether to: I. Continue Phase One of the Southside Program as currently designated and/or extended to additional phases, 2. Amend the program to better align with the current need and conditions, or 3. Terminate the program and rely solely on prevailing market conditions to complete the redevelopment of the neighborhood. C. This program shall remain in effect for an initial period of five (5) years from its effective date. Prior to the conclusion of this term, the City Commission shall assess whether the market -rate home sale process in Phase One of the Southside Neighborhood meets or exceeds the cost of new construction. If market rates do not meet or exceed construction cost at that time, the City Commission may authorize an extension of the program for up to two (2) additional years. SECTION 5. If any section, paragraph or provision of this Ordinance 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 provisions of this Ordinance. SECTION 6. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Ordinance were taken in an open meeting of this City Commission, and that all deliberations of this 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 7. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed, and the provisions of this Ordinance shall prevail and be given effect. SECTION 8. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter. i. George ray, Mayor ATTEST: \ �— Lindsay Parish, City ' lerk Introduced by the Board of Commissioners, November 25, 2025 Adopted by the Board of Commissioners, December 9, 2025 Recorded by Lindsay Parish, City Clerk, December 9, 2025 n_ Published by The Paducah Sun, C S rU5 ORMSouthside Revitalization Plan Dousing Incentives