HomeMy WebLinkAboutMO # 1383MUNICIPAL ORDER NO. 1383
A MUNICIPAL ORDER RECOGNIZING THE CONTINGENT LIABILITY
THAT EXISTS WITHIN THE FOUNTAIN AVENUE PLAN
WHEREAS, the Fountain Avenue Plan calls for risk absorption contracts to kick-
start new construction in the Fountain Avenue neighborhood; and
WHEREAS, the Urban Renewal Board has approved three risk -guarantee
contracts to construct spec houses with Mindspring Development and a fourth contract with
Brent Lamo; and
WHEREAS, the City's FY2008 Budget includes a $140,000 reserve to cover the
net cost of purchasing and re -selling the spec houses, if the contractors who are erecting them are
not able to sell them independently; and
WHEREAS, the Paducah City Commission desires to recognize the contingent
liability of expenditures that would be required if the purchase of some or all four houses is
necessary.
BE IT ORDERED BY THE CITY OF PADUCAH, KENTUCKY:
SECTION 1. That the Paducah City Commission orders that a contingency
liability of up to $674,107 is hereby recognized and that if it is necessary to do so, the
Commission will authorize expenditure from the City's operating reserve to pay the cost of the
real estate purchase contract until the property is sold and the operating reserve fund can be
reimbursed.
SECTION 2. This Order shall be in full force and effect from and after the date
of its adoption.
ATTEST:
&er_y /,
.—
Tammara S. Brock, City Clerk
Adopted by the Board of Commissioners, April 28, 2008
Recorded by Tammara S. Brock, City Clerk, April 28, 2008
\mo\ftn ave contingent liability
266