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HomeMy WebLinkAbout2011-2-7789ORDINANCE NO. 2011-2-7789 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A MEMORANDUM OF UNDERSTANDING BY AND AMONG THE CITY OF PADUCAH, KENTUCKY, AND HIGDON DEVELOPMENT, INC., WITH RESPECT TO THE RESIDENTIAL DEVELOPMENT OF VACANT PROPERTY WITHIN THE CORPORATE BOUNDARIES OF THE CITY OF PADUCAH; AND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS RELATED TO SUCH MEMORANDUM OF UNDERSTANDING. WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly development of vacant properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods; and WHEREAS, the City of Paducah's economic well-being is related to and in many respects is dependent upon, sustained growth of its population and tax revenue base through development of vacant properties; and WHEREAS, Higdon Development Inc., a Kentucky corporation, (the "Developer") is the present owner of a certain tract of vacant real estate located within the corporate boundaries of the City of Paducah upon which Developer proposes to construct a multi -family residential development, which real estate is generally bounded by County Park Road, Stuart Nelson Park Road and Stuart Nelson Park, in the city of Paducah, McCracken, Kentucky (the "Property"); and WHEREAS, the Residential Development will encourage development of orphaned, or underutilized land located in the mature portions of Paducah where infrastructure and services are in place; and WHEREAS, the Residential Development will encourage infill development that may have been underutilized or blighted, helping to catalyze revitalization; and WHEREAS, the Residential Development will promote the health of the existing public school system by increased residential development within the existing City of Paducah School System; and WHEREAS, the Residential Development will help maintain growth through infill development, which encourages a healthy economy; and WHEREAS, the Residential Development Agreement will encourage infill residential development, which will increase the population base of the City of Paducah, therefore increasing the possibilities of becoming a designated urbanized area; and WHEREAS, in order to insure that the Residential Development will have a positive impact on the entire community and to encourage the public purpose of infill residential development it is necessary and desirable that the City now authorize the Memorandum of Understanding by and among the City and the Developer. NOW THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: SECTION 1. Recitals and Authorization. The City hereby approves the Memorandum of Understanding among the City and the Developer (the "MOU") in substantially the form attached hereto as Memorandum of Understanding and made part hereof. It is further determined that it is necessary and desirable and in the best interests of the City to enter into the MOU for the purposes therein specified. The Mayor of the City is hereby authorized to execute the MOU, together with such other agreements, instruments or certifications which may be necessary to accomplish the transaction contemplated by the MOU. SECTION 2. 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 3. Compliance With Open Meetings Laws. 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 4. 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 5. Effective Date. This Ordinance shall be read on two separate days and will become effective upon summary publication pursuant to KRS Chapter 424. i ATTEST: 1!6A47Ck Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, February 15, 2011 Adopted by the Board of Commissioners, February 22, 2011 Recorded by the City Clerk. February 22, 2011 Published by The Paducah Sun, February 28, 2011 \ord\mou-higdon development MEMORANDUM OF UNDERSTANDING This is a Memorandum of Understanding made and entered into on the day of , 2011, by and between the CITY OF PADUCAH, KENTUCKY (the "City" or "City of Paducah"), a municipality of the second class, and HIGDON DEVELOPMENT, INC., a Kentucky corporation (the "Developer"). � WHEREAS, Developer is the present owner of a certain tract of vacant real estate recorded in deed book 778 page 634, in the McCracken County Court Clerk's office, located within the corporate boundaries of the City of Paducah upon which Developer proposes to construct a residential development, which real estate is generally bounded by County Park Road, Stuart Nelson Park Road and Stuart Nelson Park, in the city of Paducah, McCracken, Kentucky (the "Property"); and WHEREAS, the City of Paducah is charged with the responsibility of overseeing the proper and orderly development of vacant properties located within its corporate boundaries and of insuring the integrity and quality of its existing residential neighborhoods; and WHEREAS, the City of Paducah's economic well-being is related to and in many respects is dependent upon, sustained growth of its population and tax revenue base through development of vacant properties; and WHEREAS, the Residential Development (as defined herein) will encourage development of multi -family housing on vacant, orphaned, or underutilized land located in the mature portions of Paducah where infrastructure and services are in place; and WHEREAS, the Residential Development will encourage infill development that may have been underutilized or blighted, helping to catalyze revitalization; and WHEREAS, the Residential Development will promote the health of the existing public school system by increased residential development within the existing City of Paducah School System; and WHEREAS, the Residential Development will help maintain growth through infill development, which encourages a healthy economy; and WHEREAS, the Residential Development will encourage infill residential development, which will increase the population base of the City of Paducah, therefore increasing the possibilities of becoming a designated urbanized area; and WHEREAS, in order to insure that the Residential Development will have a positive impact on the entire community the City and the Developer have reached certain agreements respecting the construction and improvement of the Residential Development and wish to reduce the same to writing. NOW, THEREFORE, in consideration of the foregoing premises, and for other value consideration, the legal adequacy and sufficiency of which is hereby acknowledged by all parties hereto, the parties do covenant and agree as follows: A. Developer agrees to the following: 1. Develop the Property for the exclusive use as a multiple family residential development and construct and install all public improvements within the residential development in accordance with the final subdivision plat or plats approved by the Paducah Planning Commission ( the "Planning Commission"), the subdivision plans and stormwater management plan approved by the City Engineer, and all applicable subdivision regulations as set forth in Chapter 102, Article I and II of the Code of Ordinances—City of Paducah, Kentucky (the "Subdivision Ordinance")(the "Residential Development"). For purposes of this Memorandum of Understanding, public improvements shall include: streets, sidewalks, curbs, gutters, storm sewers and storm water conveyance system, water supply and distribution facilities, sanitary sewer facilities, electric distribution facilities and street lights, and survey monumentation. The Residential Development may be, at the option of the Developer, completed in two phases, provided, however, the Phase 1 Infill Agreement must be executed within one (1) year from the date of this Memorandum of Understanding and the Phase II Infill Agreement (as defined herein) must be executed within five (5) years from the date of this Memorandum of Understanding. 2. Submit to the Planning Commission for approval a preliminary subdivision plat for both Phase I and Phase II of the Residential Development and two final subdivision plats of Phase I and Phase II of the Residential Development to be constructed by Developer on the Property in compliance with the Subdivision Ordinance. 3. Submit to the City Engineer for approval the subdivision plans and stormwater management plan for the Residential Development in compliance with the Subdivision Ordinance. 4. The use and development of the Property shall be restricted to only multi -family residential units, which covenant shall run with the land and shall be binding on all parties claiming under and through the Developer, unless cancelled, altered, or amended by a writing entered into by the Developer, or its successors, and the City of Paducah. This covenant on the use and development of the Property shall be incorporated in the covenants and restrictions of the Property which will be filed with the application for a preliminary and final subdivision plat of the Residential Development and ultimately place of record in the McCracken County Court Clerk's office. B. City agrees to the following: 1. In consideration of the commitments and agreement of the Developer set for above, the City agrees that upon the approval of each of the two final subdivision plats of the Residential Development and acceptance of all public improvements as defined in paragraph A (1) above, and simultaneous thereto, the City of Paducah agrees to approve and enter into a residential infill development agreement in substantially the same form as attached hereto as Exhibit A (the "Infill Agreement") with Developer for each of the two phases of development. 2. The Infill Agreement shall evidence the City's agreement to reimburse Developer, for the actual and reasonable initial costs and expenses incurred by Developer to construct and install the public improvements within the Residential Development to be acquired and owned by the City up to an amount not to exceed the total amount of ad valorem real property taxes assessed and collected by the City over a ten (10) year period, commencing with the execution of the Infill Agreement, from the Residential Development constructed on the Property. For the purpose of this Agreement, the public improvements to be acquired and owned by the City shall include: streets, sidewalks, curbs and gutters, storm sewers and storm water conveyance system located within public right of way. If the Infill Agreement for Phase II of the Residential Development is not executed within 5 years of the date of adoption of this Memorandum of Understanding, then the City's obligation to enter into the Infill Agreement for Phase II shall automatically terminate and be of no further force and effect. 3. The City shall have no obligation whatsoever to reimburse Developer in excess of the total amount of ad valorem real property taxes actually collected and received by the City annually during each year of the ten (10) year period. Further, the City's obligation to reimburse Developer shall automatically terminate upon payment in full of all such eligible costs and expenses or at the end of the ten (10) year period, whichever occurs first. 4. The City shall construct, at its cost, Section 1 of the roadway improvement relating to the Residential Development. Section I (Exhibit B) shall be defined as that portion of the intersection of County Park Road and an unnamed roadway in the existing right of way of County Park Road. The City agrees to complete Section 1 by December 1, 2011 baring any delays associated with regulatory matters/permits. 5. Upon approval of the Infill Agreement for Phase II and final subdivision plat for Phase II by the City Commission, the City shall construct, at its cost, Section 3 (Exhibit B) of the roadway improvement relating to the Residential Development within 6 months of building permit issued to the developer for the development for Phase II. Section 3 shall be defined as that area located adjacent to Stuart Nelson Park Road and proceeding to the west to the limits of the Higdon Development, Inc. Property. C. Miscellaneous Provisions. The following miscellaneous provisions shall apply: 1. Assignment. This Memorandum of Understanding shall be binding upon and shall inure to the benefit of the parties hereto, and their respective legal representatives, heirs, successors and permitted assigns. The Developer shall not assign its rights and obligations hereunder, in whole or in part, without the prior consent of the City, but in no event, shall any assignment hereunder release or relieve Developer from any obligations of this Agreement for /^ which Developer shall remain fully bound to City. 2. Merger Clause. It is agreed and understood between the parties that this Memorandum of Understanding represents the entire and exclusive agreement between the parties, and that all prior representations, covenants, warranties, understandings and agreements are merged herein. This Memorandum of Understanding may only be modified in a writing executed by all parties hereto. 3. Construction. This Memorandum of Understanding shall be governed and construed under the laws of the Commonwealth of Kentucky. 4. Assurances. City and the Developer agree to execute such further documents and instruments as shall be necessary to fully carry out the terms of this Agreement. 5. Amendments. This Memorandum of Understanding may not be modified or amended unless by a writing signed by both parties hereto. 6. Execution and Delivery. This Memorandum of Understanding shall be of no force or effect unless and until it shall have been executed by both the City and the Developer and approved by the governing body of the City of Paducah. 7. Time. All times referred herein shall be strictly construed, as all of such times shall be deemed of the essence. WITNESS signatures of the parties as of the year and date first above written. DEVELOPER: HIGDON DEVELOPMENT, INC Phil Higdon, President Date: CITY: Date: &RC 2, - I(