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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