HomeMy WebLinkAbout2019-12-8604222081
ORDINANCE NO. 2019-12-8604
AN ORDINANCE AUTHORIZING AND APPROVING THE
FORGIVENESS OF A LOAN OWED BY THE PADUCAH GOLF COMMISSION AND
REPEALING ORDINANCE NO. 2013-12-8109 AND ORDINANCE NO. 2015-1-8208,
WHICH AUTHORIZED AND MODIFIED THE LOAN BETWEEN THE CITY OF
PADUCAH AND THE PADUCAH GOLF COMMISSION FOR CAPITAL
IMPROVEMENTS TO PAXTON PARK MUNICIPAL GOLF COURSE
WHEREAS, on December 17, 2013, the City adopted Ordinance No. 2013-12-8109,
entitled "An Ordinance authorizing the Mayor to enter into a loan agreement between the City of
Paducah and Paxton Park Municipal Golf Course Board, " authorizing certain financial
assistance to Paducah Golf Commission (doing business under the assumed name Paxton Park
Municipal Golf Course Board) (the " Golf Commission"), a duly created and existing
recreational commission established by the City of Paducah pursuant to Chapter 70 Article IV of
the City's Code of Ordinances, for certain capital improvement projects need for the preservation
of the Paxton Park Municipal Golf located on City owned real property, situated within the
boundaries of the City of Paducah, which furthers the public purposes of the City to do whatever
is necessary for the health, safety, and welfare of its residents (the "Public Project"); and
WHEREAS, such financial assistance is evidenced by a certain Promissory Note dated
February 7, 2014, in the original principal amount of Two Hundred Twenty -Five Thousand and
00/100 Dollars ($225,000.00), which promissory note was subsequently modified by Promissory
Note Modification Agreement dated January 15, 2015 entered into by and between the City and
the Golf Commission, which modification agreement was authorized and approved by the City
Commission through the adoption, on January 13, 2015,of Ordinance No. 2015-1-8208, entitled
"An Ordinance of the City of Paducah, Kentucky, authorizing the Mayor to enter a Promissory
Note Modification Agreement between the City of Paducah and the Paxton Park Municipal Golf
Course Board" (the aforesaid Promissory Note and the Promissory Note Modification
Agreement shall be collectively referred to as the "Note"); and
WHEREAS, the Golf Commission is ordered by City Ordinances to cover all expenses
associated with the operations of the golf course through revenues generated through the Public
Project; and
WHEREAS, the Golf Commission is currently undergoing financial challenges
associated with two straight years of inclement weather during peak golf seasons; and
WHEREAS, the annual costs of the debt service payments paid by the Golf Commission
to the City in connection with the Note for capital improvements to the City's Public Project
causes a hardship on the Golf Commission and contributes to its current financial challenges; and
WHEREAS, City Staff recommends to the Board of Commissioners that it is in the best
interest of the City, the Golf Commission, and its residents to forgive the Golf Commission from
the liability and obligation to repay the remainder of its debt owed to the City under the terms of
the Note, which has an estimated balance of $176,250.00 and repeal Ordinance No. 2013-12-
8109 and Ordinance No. 2015-1-8208, all being effective as of December 31st, 2019.
NOW THEREFORE be it ordained by the City Commission of the City of Paducah as
follows:
SECTION 1. Ordinance 2013-12-8109 and Ordinance No. 2015-1-8208 are hereby
repealed in their entirety, effective December 31st, 2019.
SECTION 2. Effective as of December 31, 2019, the City hereby forgives the repayment
of the Note; and the Note and all indebtedness and obligations due thereunder are hereby fully
released, discharged, extinguished, and cancelled. Further, the City hereby approves the
Forgiveness of Debt Agreement by and between the City and the Golf Commission (the
"Agreement") 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 Agreement for the purposes therein specified, and the Mayor of the City is hereby
authorized to execute the Agreement, together with such other documents, instruments or
certifications which may be necessary to accomplish the transaction contemplated by this
Ordinance with such changes in the Agreement 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 Agreement by such
official.
Section 3. 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 4. 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 5. Effective Date. This Ordinance shall be read on two separate days and will
become effective upon summary publication pursuant to KRS Chapter 424.
r
Mayor Brandi Hai ss
ATTEST:
indsay Parri h ity Clerk
Introduced by the Board of Commissioners, December 10, 2019
Adopted by the Board of Commissioners, December 17, 2019
Recorded by Lindsay Parrish, City Clerk, December 17, 2019
Published by The Paducah Sun, December 25, 2019
\ord\ Paxton Park Golf Loan Release 2019
Ordinance Prepared By L Emmons — Denton Law Firm, PLLC
EXHIBIT A
FORGIVENESS OF DEBT AGREEMENT
SEE ATTACHMENT
222071
FORGIVENESS OF DEBT AGREEMENT
THIS FORGIVENESS OF DEBT AGREEMENT is made and entered into on this
day of December, 2019, by and between CITY OF PADUCAH, KENTUCKY, a city of
the home rule class of the Commonwealth of Kentucky, (the "City") and G.P.E.D.C., INC.,
doing business under the assumed name of PADUCAH GOLF COMMISSION (doing business
under the assumed name Paxton Park Municipal Golf Course Board (hereinafter the
"Commission" or `Borrower") a duly created and existing recreational commission established
by the City of Paducah, Kentucky pursuant to the laws of the Commonwealth of Kentucky.
RECITALS
WHEREAS, the City has previously provided certain financial assistance to Borrower
for certain capital improvement projects need for the preservation of the Paxton Park Municipal
Golf located within the boundaries of the City of Paducah, which furthers the public purposes of
the City to do whatever is necessary for the health, safety, and welfare of its residents; and
WHEREAS, such financial assistance is evidenced by a certain Promissory Note dated
February 7, 2014, in the original principal amount of Two Hundred Twenty -Five Thousand and
00/100 Dollars ($225,000.00), which promissory note was authorized and approved by the City
Commission through the adoption of Ordinance No. 2013-12-8109; and
WHEREAS, the terms of the aforesaid Promissory Note was subsequently modified by
Promissory Note Modification Agreement dated January 15, 2015 entered into by and between
the City and Borrower, which modification agreement was authorized and approved by the City
Commission through the adoption of Ordinance No. 2015-1-8208 (the aforesaid Promissory Note
and the Promissory Note Modification Agreement shall be collectively referred to as the
"Note"); and
WHEREAS, it is mutually desirable, beneficial, agreeable and in the best interest of the
parties hereto and the City residents that the City forgive the repayment of the Note as such
forgiveness furthers the public purposes of the City.
NOW, THEREFORE, for and in consideration of the foregoing premises, and for other
valuable consideration, the legal adequacy, sufficiency, and receipt of which is hereby
acknowledged by all parties hereto, the parties do covenant and agree as follows:
1. Forgiveness. Effective as of December 31, 2019, the City hereby forgives the
repayment of the Note; and the Note and all indebtedness and obligations due thereunder are
hereby fully released, discharged, extinguished, and cancelled; and Borrower is fully released and
discharged from any liability with respect to the Note and all indebtedness and obligations due
thereunder.
2. Miscellaneous Provisions. This Agreement shall be binding upon the parties
hereto, their successors, and assigns. In the event of any litigation concerning this Agreement,
Borrower submits itself to the jurisdiction of the McCracken Circuit Court, and additionally,
hereby waives its right of trial by jury.
IN TESTIMONY WHEREOF, this Forgiveness of Debt Agreement has been executed
by the parties on the day and year first above written.
COMMISSION
CITY OF PADUCAH, KENTUCKY
C1
By_
Title
Mayor Brandi Harless
PADUCAH GOLF