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HomeMy WebLinkAbout2008-5-7413AIR 101084-2ver4clean ORDINANCE NO. 2008-5-7413 AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING A MEMORANDUM OF UNDERSTANDING BY AND AMONG THE CITY OF PADUCAH, KENTUCKY, AND ACHIEVEMENT COMPANY, LLC, WITH RESPECT TO THE RESIDENTIAL/COMMERCIAL 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 has adopted the Fountain Avenue Neighborhood Plan which promotes the redevelopment of the Fountain Avenue Neighborhood including; • Goal 6-9, Improve existing infrastructure (new street surfaces, sidewalks, curbs & gutters as needed. • Goal 4-2, Provide incentives to encourage rehabilitation of existing structures and promote quality new infill construction, • Goal 4-3, Seek opportunities to help low income families remain residents in the neighborhood. • Goal 4-5, Encourage quality new development of the City -owned 6.5 plus acres of the former site of the Paducah Housing Authority Martin Luther King Jr. Community property located at the corner of Martin Luther King Jr. Drive and North 13th Street; 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, Urban Renewal and Community Development Agency of Paducah, Kentucky, is the present owner of a certain tract of vacant real estate located within the corporate boundaries of the City of Paducah upon which Achievement Company, LLC, (the "Developer") a Kentucky limited liability company, proposes to construct a residential/commercial development, commonly referred to as "14th & Madison" (the "Residential/Commercial Development"), which real estate is generally bounded by north 13th Street, north 14th Street, Martin Luther King Jr. Drive, and Monroe Street, in the city of Paducah, McCracken, Kentucky (the "Property"); and WHEREAS, the Residential/Commercial Development will encourage development of single-family owner -occupied 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/Commercial Development will encourage infill development on property that may have been underutilized or blighted, helping to catalyze revitalization; and WHEREAS, the Residential/Commercial 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, in order to insure that the Residential/Commercial Development will have a positive impact on the entire community and to encourage the public purpose of infill residential development and promote redevelopment of the Fountain Avenue Neighborhood, it is necessary and desirable that the City now authorize the Memorandum of Understanding by and among the City and the Developer. �L _ul'^.�—��'.e1u;„i.Jy, w:w..:LU��I ex..�.wwr .xNAG11 •:_.- - ,: •—_:�`:.."-•:x' n..l..-._..A.:aw.xiirllYAaxxu.. *M�.LF ,a .cL..i�elys�m ..^ �• nvmmet .. - •. uaul�u V . 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 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 MOU for the purposes therein specified, and the execution and delivery of the MOU is hereby authorized and approved. 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 T contemplated by the MOU with such changes in the MOU not inconsistent with this Ordinance 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 such MOU by such official. 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. ATTEST: Tammara S. Brock, City Clerk Introduced by the Board of Commissioners, April 28, 2008 Adopted by the Board of Commissioners, May 13, 2008 Recorded by Tammara S. Brock, City Clerk, May 13, 2008 Published by The Paducah Sun, May 19, 2008 \ord\plan\14th & Madison Development 2 (�D EXHIBIT A TO ORDINANCE 95939 MEMORANDUM OF UNDERSTANDING This is a Memorandum of Understanding (Agreement) made and entered into on the day of May, 2008, by and between the CITY OF PADUCAH, KENTUCKY (the "City" or "City of Paducah"), a municipality of the second class, and ACHIEVEMENT COMPANY, LLC, a Kentucky limited liability company (the "Developer"). 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 has adopted the Fountain Avenue Neighborhood Plan which promotes the redevelopment of the Fountain Avenue Neighborhood including; • Goal 6-9, Improve existing infrastructure (new street surfaces, sidewalks, curbs & gutters as needed. Goal 4-2, Provide incentives to encourage rehabilitation of existing structures and promote quality new infill construction, Goal 4-3, Seek opportunities to help low income families remain residents in the neighborhood. Goal 4-5, Encourage quality new development of the City -owned 6.5 acres of the former site of the Paducah Housing Authority Martin Luther King Jr. Community property located at the corner of Martin Luther King Jr. Drive and North 13th Street; 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, Urban Renewal and Community Development Agency of Paducah, Kentucky, is the present owner of a certain tract of vacant real estate located within the corporate boundaries of the City of Paducah upon which the Developer proposes to construct a residential/commercial development, commonly referred to as "14th & Madison" (the" Residential/Commercial Development"), which real estate is generally bounded by north 13th Street, north 14th Street, Martin Luther King Jr. Drive, and Monroe Street, in the city of Paducah, McCracken, Kentucky (the "Property"); and WHEREAS, the Residential/Commercial Development will encourage development of single-family owner -occupied 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/Commercial Development will encourage infill development on property that may have been underutilized or blighted, helping to catalyze revitalization; and WHEREAS, the Residential/Commercial 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, in order to insure that the Residential/Commercial 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/Commercial 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: 3 I A. Developer agrees to the following: 1. Purchase the Property, subject to easements, covenants, conditions, and restrictions of record, from Urban Renewal and Community Development Agency of Paducah, Kentucky ("Urban Renewal"). The proposed purchase shall be subject to the negotiation and execution of a definitive Purchase Agreement with terms that are consistent with the terms of this MOU and satisfactory to Urban Renewal and the Developer. The Purchase Agreement will contain such representations, warranties, covenants, conditions, and indemnification provisions as are typically found in transactions of this size and type. 2. Submit for approval a preliminary and a final subdivision plat of the Residential/Commercial Development to be constructed by Developer on the Property to the Paducah Planning Commission in compliance with Paducah Zoning & Subdivision regulations. 3. Developer agrees that the use and development of the Property shall be restricted to a townhouse and commercial/professional office development. Definition of townhouse shall be as defined in the Paducah Zoning Regulations. The Residential/Commercial Development shall be constructed, installed, and developed in accordance with the details, plans, and specifications set forth in the Developer's proposal submitted to Urban Renewal and approved at an Urban Renewal meeting held on January 8, 2008. 4. Developer agrees that the construction of the Residential/Commercial Development shall be substantially completed by March 1, 2011. Substantial completion shall mean that the Director of Planning and the Chief Building Inspector for the City of Paducah shall have issued a certificate of compliance with the terms of this MOU and the Developer's proposal submitted to Urban Renewal and approved at an Urban Renewal meeting held on January 8, 2008. 5. Developer agrees to invest at least $9.0 million dollars in the construction, installation, development, and completion of the Residential/Commercial Development on the Property by July 1, 2010. 6. Developer agrees not to install entrance gates into the Residential/Commercial Development. 7. Developer agrees to abide by the Developer's proposal submitted to Urban Renewal and approved by Urban Renewal on January 8, 2008. 8. Developer shall provide, at the Developer's expense, detailed verification reasonably satisfactory to the City of the Developer's capital investment and construction goals committed herein and in the Developer's proposal to Urban Renewal. Such progress reports will be provided at 12, 18, and 24 months from the date of the execution of this MOU and at such other time(s) as the City may require. The City reserves the right to require any reasonable verification procedures or process. 9. The Developer agrees to implement a pre -construction sales campaign upon receipt of building permits for the construction of the residential units. 10. To ensure the completion of the project and to fulfill the objective of owner occupants, the Developer agrees to market all of the residential townhouse units in the Residential/Commercial Development for sale only for purposes of owner occupancy for a period of time equivalent to 900 unit -days. This holding period shall commence upon receipt of certificate of occupancy. At the expiration of the 900 unit -day period, all residential townhouse units remaining unsold may be marketed by Developer for sale or lease, provided the lease of such units shall be for a period of not less than one year. B. City agrees to the following: 1. In consideration of the commitments and agreements of the Developer set for above, the City agrees that upon the approval of the final subdivision plat of the EI WE Residential/Commercial Development and substantial completion of the Residential/Commercial Development by Developer, the City shall: a. Make such improvements, as it deems necessary, to North 13th Street & North 14th Street between Madison Street & Martin Luther King Jr. Drive to allow for on -street parking. b. Install new sidewalks as needed around the perimeter of the Residential/Commercial Development. c. Install appropriate street lighting consistent with the Lowertown lighting around perimeter of the Residential/Commercial Development. d. It is understood by the City of Paducah and Developer that the improvements stated above in subsections a, b and c to be constructed by the City shall be completed by the City as it deems necessary, but in no event shall the cost of such improvements exceed the amount of $300,000. In the event the agreed upon improvements in subsections a, b and c are completed for less than $300,000, it is understood by Developer and that the City of Paducah has met its obligation to Developer hereunder. Developer shall have no claim for any remaining balance of the $300,000 after improvements have been completed. e. As further incentive to Developer for new construction in the Fountain Avenue Neighborhood, the City shall provide a grant to the Developer upon the sale of six (6) selected residential townhouses in the Residential/Commercial Development. The amount of the grant shall be 10% of the actual sale price of each of the selected residential townhouse units. In no case shall the amount exceed $20,000 per residential townhouse unit. The six (6) selected residential townhouse units shall be the first three, tenth, fifteenth, and twentieth residential townhouse units sold by the Developer. The City shall only be responsible for paying and disbursing the grant to the Developer in the event the sale of each of the residential townhouse units contemplated herein is consummated and only at the time of closing of each sale. C. Miscellaneous Provisions. The following miscellaneous provisions shall apply: 1. Assignment. This Agreement 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 Agreement represents the entire and exclusive agreement between the parties, and that all prior representations, covenants, warranties, understandings and agreements are merged herein. This Agreement may only be modified in a writing executed by all parties hereto. 3. Construction. This Agreement 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 Agreement may not be modified or amended unless by a writing signed by both parties hereto. 6. Execution and Delivery. This Agreement 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. 5 610 WITNESS signatures of the parties as of the year and date first above written. DEVELOPER: ACHIEVEMENT COMPANY, LLC -10 Rud Bergfeld, President Date: 0 CITY: CITY OF PADUCAH, KENTUCKY By William F. Paxton, Mayor Date: