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HomeMy WebLinkAbout2009-6-7568112951 ORDINANCE NO. 2009-6-7568 AN ORDINANCE AUTHORIZING AND APPROVING URBAN RENEWAL AND COMMUNITY DEVELOPMENT AGENCY'S BUY-BACK OF REAL PROPERTY LOCATED AT 1640 HARRISON STREET, PADUCAH, McCRACKEN ' COUNTY, KENTUCKY, FOR AND IN CONSIDERATION ` y OF $165,648.37, IN ACCORDANCE WITH THE FOUNTAIN AVENUE REVITALIZATION PROJECT CONTRUCTION AGREEMENT DATED JANUARY 18, 2008 WHEREAS, the City of Paducah, Kentucky (the "City") has determined that it is a public purpose to foster and promote the proper and orderly development or redevelopment of vacant, orphaned, or underutilized residential properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods, all to the benefit of the citizens and residents of the City; and WHEREAS, in order to fulfill that public purpose the City by and through the Urban Renewal and Community Development Agency, as agency of the City of Paducah, Kentucky (the "Agency') is presently engaged in a neighborhood redevelopment program known as the "Fountain Avenue Neighborhood Revitalization Project" (the "Project") whose primary purpose is to revitalize the Fountain Avenue neighborhood through the renovation of existing residential structures and the construction of new residential structures which will maintain the historical appearance of such area; and WHEREAS, in the furtherance of the Project the Agency entered into a Fountain Avenue Revitalization Project Construction Agreement (the "Agreement") with Mindsprings Development, LLC, ("Contractor") for the construction of a new residential structure at 1640 Harrison Street, Paducah, McCracken County, Kentucky (the "Property") within the Fountain Avenue neighborhood; and WHEREAS, pursuant to the Agreement, the Agency is obligated to buy-back the Property from the Contractor in the event the Contractor is unable to sell the Property within the specified sale period for a purchase price equal to the Stipulated Cost of Construction (as defined in the Agreement) of $165,648.37; and WHEREAS, by Municipal Order No. 1383 the City previously recognized the contingent obligation of the Agency under the Agreement and agreed to authorize an expenditure from the City's operating reserves to fund the Agency's obligations under the Agreement; and WHEREAS, the aforesaid specified sale period has expired and the Contractor has been unable to sell the Property and has requested the Agency's buy-back obligations be consummated in accordance with the terms of the Agreement; and WHEREAS, the Board of Commissioners of the City is desirous of approving the buy-back of the Property by the Agency in accordance with the terms and conditions of the Agreement as the buy-back is in the best interest of the City in accomplishing the public purposes of the City.. NOW, THEREFORE, BE IT ORDAINED, by the City of Paducah, Kentucky: Section 1. Recitals and Authorizations. The City of Paducah hereby formally approves of and the Agency is hereby authorized to buy-back the Property from Contractor for a purchase price equal to the Stipulated Cost of Construction of $165,648.37 in accordance with the terms and conditions of the Agreement previously entered into between the Agency and the Contractor. Section 2. Recitals and Authorizations. Further, the Agency is hereby authorized to ent, into, execute, and accept delivery of a general warranty deed and any and all other documentation necessary to effectuate the buy-back of the Property from Contractor. Section 3. Funding of the Purchase Price. All monies necessary for the buy-back of the Property, including without limitation, the purchase price to be paid, shall be funded from the City's operating reserves for the benefit of the Agency. All net proceeds from the subsequent sale of the Property by the Agency shall be utilized to reimburse the City's operating reserves. Section 4. Severability. 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 5. Compliance With Open Meetings. 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 the 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 2 compliance with applicable legal requirements. Section 6. Conflicts. 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 7. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. ATTEST: jWMMVX110 �- a7e-� Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, May 26, 2009 Adopted by the Board of Commissioners, June 9, 2009 Recorded by Tammara S. Brock, City Clerk, June 9, 2009 Published by The Paducah Sun, June 16, 2009 \ord\plan\ftn ave buyback -1640 Harrison 3 - n —"r- 4 --