Loading...
HomeMy WebLinkAbout2016-05-8365195877 ORDINANCE NO. 2016-5-8365 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A FIRST AMENDMENT TO HOTEL DEVELOPMENT AGREEMENT BETWEEN THE CITY OF PADUCAH, KENTUCKY, AND PADUCAH RIVERFRONT HOTEL LP, WITH RESPECT TO A PUBLIC PROJECT; AUTHORIZING THE EXECUTION OF THE AMENDMENT WHEREAS, on June 29, 2015, the City and the Developer, entered into a Hotel Development Agreement, which may have been extended and amended from time to time, (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 the publically owned convention center, generally known as the Julian Carroll Convention, William and Meredith Schroeder Expo Center (the "Convention Center") (the "Project"); and WHEREAS, under the Development Agreement, Developer had committed to the negotiation and execution of a definitive management and/or operation agreements with the Paducah -McCracken County Convention Center (the PMCCC") for the use, occupancy, operation, management of the Convention Center; and WHEREAS, by unanimous vote of the board of directors of PMCCC, PMCCC will be hiring an in-house manager for the use, occupancy, operation, management of the Convention Center; and WHEREAS, the Developer and the City now desire to amend Section 4. h. and Section 6. c. of the Development Agreement in order to revoke and eliminate this commitment of Developer as a Condition Subsequent to the City's commitment to lease the Property to the Developer for the Project. 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 First Amendment to, Hotel Development Agreement (this "Agreement") among the City and the Developer in substantially the form attached hereto as Exhibit A and made part hereof. It is further determined that it is necessary and desirable and in the best interest of the City to enter into the Agreement for the purposes therein specified, and the execution and delivery of the Agreement is hereby authorized and approved. The City Manager is hereby authorized to execute the Agreement with such changes not inconsistent with this Order and not substantially adverse to the City as may be approved by the official executing the same on behalf of the City. The approval of such changes by said official, and that such are not substantially adverse to the City, shall be conclusively evidenced by the execution of the Agreement. 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. 527 ��- SECTION 3. Compliance With Open Meetings Laws. The City Commission hereby finds and determines that all formal actions relative to the adoption of this Order 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 Order are, to the extent of such conflict, hereby repealed and the provisions of this Order 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. ATTEST: ,jVM1N4!W /J City Clerk Introduced by the Board of Commissioners May 10, 2016 Adopted by the Board of Commissioners May 17, 2016 Recorded by Tammara S. Sanderson, City Clerk, May 17, 2016 Published by The Paducah Sun, May 19, 2016 \ord\agree-hotel development -first amendment 5-2016 528 EXHIBIT A FIRST AMENDMENT TO DEVELOPMENT AGREEMENT See attachment. 529 195876 FIRST AMENDMENT TO HOTEL DEVELOPMENT AGREEMENT THIS FIRST AMENDMENT HOTEL DEVELOPMENT AGREEMENT made and entered into on this day of May, 2016 (the "Effective Date") by and between PADUCAH RIVERFRONT HOTEL LP, a Kentucky ULPA Limited Partnership, by and through its General Partner, Paducah Hotel Inc., a Kentucky corporation, having an address of 1401 Spring Bank Drive, Building A, Suite 8, Owensboro, KY 42303, (hereinafter referred to as the "Develo er"); CITY OF PADUCAH, a Kentucky home class city having an address of 300 South 5 Street, PO Box 2267, Paducah, KY 42002-2267 (hereinafter referred to as the "City"). WITNESSETH: WHEREAS, on June 29, 2015, the City and the Developer, entered into a Hotel Development Agreement, which may have been extended and amended from time to time, (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 the publically owned convention center, generally known as the Julian Carroll Convention, William and Meredith Schroeder Expo Center (the "Convention Center") (the "Project"); and WHEREAS, under the Development Agreement, Developer had committed to the negotiation and execution of a definitive management and/or operation agreements with the Paducah -McCracken County Convention Center (the PMCCC") for the use, occupancy, operation, management of the Convention Center; and WHEREAS, by unanimous vote of the board of directors of PMCCC, PMCCC will be hiring an in-house manager for the use, occupancy, operation, management of the Convention Center; and WHEREAS, the Developer and the City now desire to amend Section 4. h. and Section 6. c. of the Development Agreement in order to revoke and eliminate this commitment of Developer as a Condition Subsequent to the City's commitment to lease the Property to the Developer for the Project. NOW THEREFORE, for and in consideration of $1.00 cash in hand paid, the receipt and sufficiency is hereby acknowledged by all parties, and the mutual covenants and conditions contained herein the parties agree as follows: 1. Amendments to the Development Agreement. a. Section 4. Subparagraph h., of the Development agreement is hereby revoked and stricken in its entirety. b. Section 6. Subparagraph c., "Conditions Subsequent," is hereby revoked and stricken in its entirety. 2. Reaffirmation of the Development Agreement. Except for the modifications set forth herein, all other terms and provisions of the Development Agreement entered into between the parties are expressly acknowledged, reaffirmed, and ratified by all parties hereto. All parties hereby agree to perform in strict accordance with the terms and provisions as set forth under the Development Agreement. 4. Miscellaneous Provisions. This Agreement shall be fully binding upon the parties! hereto and their successors, and assigns as of the Effective Date. IN WITNESS WHEREOF, the parties have respectively caused this Agreement to be executed on the day and year first above written. DEVELOPER: PADUCAH RIVERFRONT HOTEL LP, 530 By: Paducah Hotel Inc., a Kentucky corporation, Its General Partner By:_ Title: GUARANTOR: CITY: GLENN D. HIGDON GLENN D. HIGDON CITY OF PADUCAH, KENTUCKY 10 Title: 531