HomeMy WebLinkAboutHotel Development Agreement ExtensionRESOLUTION
A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE CITY
OF PADUCAH, KENTUCKY, DIRECTING AND INSTRUCTING
CORPORATE COUNSEL TO PREPARE A WRITTEN EXTENSION OF
THE HOTEL DEVELOPMENT AGREEMENT DATED DECEMBER 17,
2013 AMONG THE CITY OF PADUCAH, KENTUCKY AND PADUCAH
CONVENTION HOTEL, LLC, A KENTUCKY LIMITED LIABILITY
COMPANY, DAVID M. PUCKETT, TODD M. CLARK, JOHN M.
CLARK, DAVID B. JONES, GLENN R. MALONE, EDDIE CORLEY, AND
GARRETT FORBES MATHIEU REGARDING THE DEVELOPMENT
AND CONSTRUCTION OF AN UPSCALE BRAND HOTEL
FRANCHISED BY A MAJOR HOTEL CHAIN AND THE FURTHER USE,
OCCUPANCY, OPERATION, MANAGEMENT OF THE HOTEL
WHEREAS, on December 17, 2013, the City and Paducah Convention Hotel, LLC, a
Kentucky limited liability company, David M. Puckett, Todd M. Clark,
John M. Clark, David B. Jones, Glenn R. Malone, Eddie Corley, and
Garrett Forbes Mathieu (collectively, jointly and severally, the
"Developer "), entered into a Hotel Development Agreement (the
"Development Agreement ") regarding the Developer's development and
construction of an upscale brand hotel franchised by a major hotel chain
and the further use, occupancy, operation, management by the Developer
of the hotel; and
WHEREAS, according to the Development Agreement the term of the agreement
terminated on April 30, 2014, unless essential conditions to the
Development Agreement were timely satisfied by the Developer; and
WHEREAS, the Developer has failed to timely perform these essential conditions to the
Development Agreement and the City is prepared to terminate the
Development Agreement; and
WHEREAS, the Developer has requested an additional extension of the term of the
Development; and
WHEREAS, the Paducah City Commission is agreeable to providing the requested
extension in consideration of the Developers commitments as set forth
herein which shall all be incorporated into a written extension agreement
prepared by corporate counsel to the City of Paducah.
NOW, THEREFORE BE IT RESOLVED BY THE CITY OF
PADUCAH, KENTUCKY:
1) The corporate counsel to the City of Paducah is directed and instructed to prepare a
written extension of the Hotel Development Agreement dated December 17, 2013,
which extension shall provide as follows:
A. The Development Agreement shall expire, terminate and be null and void
as of 2:00 p.m. CST on January 29, 2015, unless the Conditions Subsequent set forth
in Section 6 of the Development Agreement are satisfied by the Developer prior to
the aforesaid date and time. Time shall be of the essence.
B. The Developer must expressly agree to the aforesaid expiration and
termination of the Development Agreement in the event the Conditions Subsequent
set forth in Section 6 of the Development Agreement are not satisfied by the
Developer. The Developer further agrees that time is of the essence.
C. The timely satisfaction of the Conditions Subsequent shall specifically
include the following without limitation:
(i) The Developer's completion of its financing with Independence
Bank as required under the Commitment Letter with the Bank;
L L
The Developer depositing with Independence Bank the equity
infusion required under the Commitment Letter with the Bank;
The Developer obtaining a fully executed written construction
agreement with contractor;
The Developer fully executing all definitive agreements with the
City; and
The Developer depositing with the Bank by February 17, 2015 all
funding required by the City to assure that the Hotel project will
proceed in balance.
D. The Developer must expressly agree that the hotel building site shall be
used and occupied for the 2015 AQS Quilt Show and the use and occupancy of the
site will be delivered to the Developer within a reasonable period of time after the
conclusion of the Quilt Show and removal of the pavilion.
2) This Resolution shall be in full force and effect from and after its adoption.
ATTEST:
v 11/AettiiJi, !i,! .0
Tammara S. Sanderson, City Clerk
Adopted by the Board of Commissioners, January 20, 2015
Recorded by Tammara S. Sanderson, City Clerk, January 20, 2015
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