HomeMy WebLinkAbout2008-5-7416613
88665
ORDINANCE NO. 2008-5-7416
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING
A MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF PADUCAH,
C11
KENTUCKY AND CAMPBELL DOWNTOWN PROPERTIES, LLC FOR THE
RESTORATION AND RE -DEVELOPMENT OF REAL PROPERTY LOCATED AT 310
BROADWAYAND AUTHORIZING THE EXECUTION OF VARIOUS DOCUMENTS
RELATED TO SUCH MEMORANDUM OF UNDERSTANDING.
WHEREAS, Campbell Downtown Properties, LLC owns and is restoring
building situated upon the real property located at 312 Broadway, Paducah, Kentucky.
WHEREAS, in September of 2007, the building situated upon the real property
located at 312 Broadway, Paducah, Kentucky, collapsed in part leaving the real property located
at 310 Broadway in need of repair; and
WHEREAS, pursuant to the City's Nuisance Code the building situated upon the
real property located at 310 Broadway has been condemned and the City shall cause the structure
to be demolished and removed in part; and
WHEREAS, Campbell desires to acquire the real property located at 310
Broadway, Paducah, Kentucky, which real property lies adjacent to its own building and real
property located at 312 Broadway, Paducah, Kentucky and proposes to expand its current
restoration to include the restoration and re -development of the real property located at 310
Broadway, Paducah, Kentucky, (the "Project"); and
WHEREAS, the Project will have a positive impact on the entire community by
stimulating the local economy, expanding the tax base, reducing unemployment, offering unique
products and services to residents in a multi -state region; and
WHEREAS, the City strongly supports the expansion of the Project in downtown
Paducah, McCracken County, Kentucky; and
WHEREAS, in order to induce the acquisition and redevelopment of the Project
by Campbell Downtown Properties LLC, the City is agreeable to providing certain economic
incentives and contributions to Campbell's for purposes of defraying some of the building
construction costs of the Project; and
WHEREAS, it is deemed necessary and advisable that this MOU be entered into
by the parties setting forth their agreement with respect to the expansion, acquisition, investment
and employment of the Project and the economic incentives to be provided to defray some of
these costs thereof.
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 between Campbell Downtown Properties, LLC and the City 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 interests 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,
614
together with such other agreements, instruments or certifications which may be necessary to
accomplish the transaction 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:
A61'mt
Tammara S. Brock, City Clerk
Introduced by the Board of Commissioners, May 13, 2008
Adopted by the Board of Commissioners, May 27, 2008
Recorded by Tammara S. Brock, City Clerk, May 27, 2008
Published by The Paducah Sun, June 2, 2008
Ord/mou-campbell downtown 310 B'way
MAYOR
615
101800
MEMORANDUM OF UNDERSTANDING
This is a Memorandum of Understanding (MOU) made and entered into on this the
day of , 2008 (the "Effective Date"), between and among
CAMPBELL DOWNTOWN PROPERTIES, LLC ("COMPANY"), a Kentucky based
corporation, with principal offices located at 315 Broadway, Paducah, KY 42001; the CITY OF
PADUCAH, KENTUCKY ("City").
WHEREAS, COMPANY owns and is restoring building situated upon the real property
located at 312 Broadway, Paducah, Kentucky.
WHEREAS, in September of 2007, the building situated upon the real property located
at 312 Broadway, Paducah, Kentucky, collapsed in part leaving the real property located at 310
Broadway in need of repair; and
WHEREAS, pursuant to the City's Nuisance Code the building situated upon the real
property located at 310 Broadway has been condemned and the City shall cause the structure to be
demolished and removed in part; and
WHEREAS, COMPANY desires to acquire the real property located at 310 Broadway,
Paducah, Kentucky, which real property lies adjacent to its own building and real property
located at 312 Broadway, Paducah, Kentucky and proposes to expand its current restoration to
include the restoration and re -development of the real property located at 310 Broadway,
Paducah, Kentucky, (the "Project"); and
WHEREAS, the Project will have a positive impact on the entire community by
stimulating the local economy, expanding the tax base, reducing unemployment, offering unique
products and services to residents in a multi -state region; and
WHEREAS, the CITY strongly supports the expansion of the Project in downtown
Paducah, McCracken County, Kentucky; and
WHEREAS, in order to induce the acquisition and redevelopment of the Project by the
COMPANY, the City is agreeable to providing certain economic incentives and contributions to
COMPANY for purposes of defraying some of the building construction costs of the Project; and
WHEREAS, it is deemed necessary and advisable that this MOU be entered into by the
parties setting forth their agreement with respect to the expansion, acquisition, investment and
employment of the Project and the economic incentives to be provided to defray some of these
costs thereof; and
THEREFORE, COMPANY, and the City agree to the following:
A. COMPANY commits to:
1. Acquiring fee title to the real property located at 310 Broadway,
Paducah, Kentucky.
2. Invest a minimum of $100,000 in the Project by year-end (2009)
for the restoration and rehabilitation of the buildings located at 310
and 312 Broadway, Paducah for commercial and/or residential
occupancy.
3. Adhere to all of the regulations and requirements of the CITY'S
development regulations, policies and ordinances.
616
4. Acknowledging the rights of the City to condemn and cause the
building located on the Project to be demolished and removed in
part; and further the City's right to have the cost of such
demolition and removal be charged against the real property upon
which the building is located and shall be a lien upon such real
property.
5. COMPANY agrees that in the event it fails to meet the required
levels of investment for the Project during the times previously
noted, unless another time has been mutually agreed to, then the
grant of City assistance shall be fully reimbursed, plus interest
calculated using New York prime rates. The CITY further agrees
that in the event the failure to attain or maintain the required levels
or investment by COMPANY, in spite of its good faith best efforts,
were the result of unavoidable and unforeseen circumstances,
including, but, not limited to an Act of God or national
emergencies, then the City at their sole discretion, may: (a) seek a
pro rata reimbursement, or (b) waive any reimbursement.
6. COMPANY shall provide detailed verification reasonably
satisfactory to the City of the company's progress on the capital
investment committed herein. Such progress reports will be
provided at 12 and 24 months from the date of the execution of this
Agreement by the company and at such other time(s) as the City
may require. The City reserves the right to require any reasonable
verification procedures or process.
B. The City commits to:
1. The City, using its usual enforcement procedures, shall issue to the
COMPANY an order of correction and demolition for the project.
2. The City shall, at its cost, expend $34,875.00 to retain the services
of a qualified demolition contractor to demolition and remove a
portion of the buildings located at 310 and 312 Broadway,
Paducah, Kentucky, which demolition and removal shall be in
accordance with the proposal previously accepted and approved by
the City's Chief Building Inspector and the authorized
representative of the Company. The cost of such demolition and
removal shall be charged against the real property located at 310
and 312 Broadway, Paducah, Kentucky, and a lien upon such real
property shall be filed encumbering same. The City shall waive it
abatement costs and release its lien once the Company provides
evidences satisfactory to the City's Chief Building Inspector that
the Company has substantially completed the Project and satisfied
its commitments herein.
C. Miscellaneous Provision:
This Agreement represents the entire understanding and agreement reached
between the parties, and all prior covenants, agreements, and presentations are
merged herein. The transaction contemplated by this MOU shall be contingent
upon the approval and consent to the sale, the incentives, and the terms of this
MOU by the governing bodies of the City. Subject to approval by the governing
bodies of the City, this MOU shall be fully binding upon the parties hereto and
shall be deemed fully enforceable in accordance with the terms and provisions
hereof. Company shall not assign this MOU without first obtaining the written
consent of the other parties, which written consent shall not be unreasonably
withheld. If any provision of this MOU shall be held invalid under any applicable
laws, such invalidity shall not affect any other provision of this MOU than can be
given affect without the invalid provision, and, to this end, the provisions hereof
are severable. This MOU shall be construed under the laws of the
Commonwealth of Kentucky.
IN WITNESS WHEREOF the parties hereto have set their hands on the day and year
written below.
CAMPBELL DOWNTOWN
PROPERTIES
Signature:
Title:
Date:
CITY OF PADUCAH, KENTUCKY
....... Signature:
Title:
Date:
617