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HomeMy WebLinkAboutOrdinances Book 10, Page 1237, No Ordinance Number1237 AN ORDINANCE AUTHORIZING THE MAYOR AND CITY CLERIC TO ENTER INTO AND EXECUTE, FOR AND ON BEHALF OF THE CITY OF PADUCAH, KENTUCEY, A LEASE FROM THE PADUCAH AIRPORT CORPORATION TO THE CITY OF PADUCA AND THE COUNTY OF MCCRACKE2 STATE OF KENTUCKY, UPON TNO TRACTS OR PARCELS OF LAND ADJOINING THE PROPERTY OF THE PADUCAH-UCCRACKEN COUNTY AIRPORT; PROVIDING OPTIONS FOR RENE1ING SAID LEASE IN 1946 AND IN SUBSEQUENT YEARS; AND PRESCRIBING THE CONDITIONS UNDER WHIC THE CITY AND COUNTY SHALL BECOME THE 07111ERS OF SAID LEASED PROPERTY WHEREAS, the City and County have purchased and established a new airport known as the "Paducah and I:;cCracken County Airport2, but in order to comply with the rules and regulations of the Civil Aeronautics Association it will be necessary to expend the sum of approximately Forty Thousand (:;;40,000.00) Dollars for easements foe the trimming of trees on adjacent lands, for the construction of a ramp, and for other improvements; and, 'WHEREAS, the City of Paducah and the County of McCracken, being financially unable to pay from its revenues appropriated in the year 1945 the amount necessary for the improvement of said airport in order to comply with the rules and regulations of the civil aeronautics association, and any contract therefor being in violation of Section 157 of the Constitution of the State of Kentucky which provides haat it shall be unlawful for any city or county "to become indebted, in any manner or for any purpose, to an amount exceeding, in any year, the income and revenue provided for such year", the Paducah Airport Corporation has been duly and regularly organized as a corporation in order to perform all acts necessary to finance said undertaking, to borrow money, issue notes and mortgage its property, and to do all other things necessary and incidental to the above mentioned purposes; and, WIiEREAS, the City and County have heretofore executed and delivered to the Corporation a deed of conveyance to the hereinafter two tracks or parcels of land which were originally purchased for use in connection with the operation of said airport, but said tracts or parcels of land were not required for that purpose and are not, in fact, a part of the lands -omprising the landing area of said airport; and, WHEREAS, it is the object, intent and purpose of the parties ;hat in order to secure funds for paying the cost of making :he aforesaid improvements, the Paducah Airport Corporation will execute and deliver to the Citizens Savings Bank at Paducah, -Tvustee jnortgage upon the hereinafter described two tracts or parcels f land as secutity for the payment of a loan in the sum of 1238 Forty Thousand (';'40,000.00) Dollars, said loan to be evidenced by ten (10) promissory notes, numbered consecutively from 1 to 10, both inclusive, bearinS interest at the rate of 3% per annum from date until paid, interest payable semi-annually on the first day of December and June hereafter, and which notes will be described as follows: Note #1 for ;:1,000.00 due July 1st, 1946 Note J{2 for `1,000.00 due November 15th, 1946 Note i,'j3 for x,5,000.00 due July 1st, 1947 Note #4 for ^if5,000.00 due November 15th, 1947 Note %`5 for 5,000.00 due July 1st, 1948 Note #6 for ;'51000.00 due ETovember 15th, 1948 Note m7 for ;5,000.00 due July 1st, 1949 Note #8 for 5ri000.00 due November 15th, 1949 Mote #9 for •:41000.00 due July 1st, 1950 Note ;1'10 for ;4:;000.00 due November 15th, 1950 And the City and County shall pay, provided the options for renewal of this lease is exercised from year to year, a sufficient sum for the retirement of the above described notes as the same shall become due, and in the event the option for renewal of this lease from year to year is exercised as hereinafter provided and there is paid by the City and County in rentals the total sum of 4"40,000.00, the Corporation shall reconvey the hereinafter describ lots or parcles of land to said City and County; NOW THEREFORE, BE IT ORDAINED BY TIIE EOARD OF COMi::ISSIONERS OF THE CITY OF PADUCAH, KENTUCKY: SECTION 1. That the 1,7ayor and City Clerk be and they are hereby authorized and empowered to enter into and execute, for and on behalf of the City of Paducah, a lease and option upon two tracts or parcels of land adjoining the landing area of the Paducah-McCra County Airport, being the same property conveyed by the City of Paducah and the County of LicCrac'.cen, State of Kentucky, to the Paducah i-irnort Corporation by deed dated October _, 1945, and of record in Deed book `, page , in the McCracken County Court Clerk's Office, said tracts of land to be held under lease by said City and County jointly, and which Lease and Option shall contain the following terms, conditions and agreements: - "For and in consideration of the sum of One (:„1.00) Dollar cash in hand paid by the City and County to the Cor oratic the receipt of which is hereby acknowledl,ed, the Corporation here :ken leases to the City and County the above described tracts or parcels of land until January 1st, 1946. The Corporation also grants unto! the City and County the right and option to renew this lease for a period of one year beginning January 1st, 1946, and the same right and option is granted for further terms of one year beginninrr on 1239 the first day of January of each year thereafter, at an annual rental payable on the dates and in amounts as follows: ,ease Period Amount Due Date Duo -1-46 ;2000.00 with interest ;1000.00 clue July to at 3'� per annum from 1, 1946. -1-47 October 22, 1945 to;1000.00 due date due November 15, 1946 -1-47 -10,000.00 ith interest ``,5000.00 due July ::p to at 3;° per annum from 1, 1947 _-1-48 October 22, 1945 to date :;5000.00 due due. November 15, 1947. =1-e8 ;,10,000.00 with interest ;;5000.00 due July to at 3°� per annum from 1, 1948 L-1-49 October 22, 1945, to date `:5000.00 due due xovember 15, 1948 L -1-4g (10,000.00 with interest at :1.5000.00 due July to 3 per annum from October 1, 1949 L-1-50 22, 1945 to date due ti15000.00 due tlovember 15, 1949 L-1-50 ;',8,000.00 with interest .4000.00 due July to at 3;" per annum from 1, 1950 L-1-51 October .22, 1945 to date 14000.00 due due. November 15, 1950 "Provided, however, that in the event said options are exercised as herein provided and the City and County pay to the Corporation the sum of ;,40,000.00, together with all interest accrued thereon as above set out, this lease shall terminate and the Corporation hereby agrees and binds itself, its successors and assigns to convey the above described real estate to the City and County on January 1st, 1951 if said sum shall have been paid by that date, and upon the conveyance of said property to the City land County, the Corporation will currant the title generally. "The City and County is hereby granted the fight and privilege of renewing this lease from year to year, and the option shall be deemed to have been exercised in any year if the legislativ bodies shall, upon the adoption of the annual apportionment ordinanc Iby the City and the adoption of the budget by the County, include therein an appropriation for the renewal thereof and provide therein an amount sufficient for m yment of the rental installments due for 1,nder he year in which said lease may be renewed. "The rights and privileges granted to the City and County the terms of this lease shall be subordinate and inferior to the lien of the Citizens Savings Eank at Paducah, Kentucky, Trustee, nder its mort.age against said property. "It is further understood and agreed between the parties hereto that any and all rentals which may became due under this lease shall be paid to the Citizens Savings Eank at Paducah, Kentuck., Trustee, the same to apply to the payment of the aforesaid notes which shall become duo on July 1st and November 16th, 01 1240 each year, and upon the satisfaction of any note by the payment of the annual rental as herein provided, the note so paid shall be forthwith cancelled and delivered to the Corporation. "If either the City or the County shall, in any year, fail to appropriate sufficient funds for payment of one-half of the rentals due for said year, the other shall not be obligated to pay its one-half and this contract shall be of no further* force and effect. "If duding any year in which the City and County may exercise th&ir option to renew this lease, the holder of any one or more of the aforesaid notes shall be required to pay angl ad valorem or income taxes assessed thereon by the United States of America, by the Commonwealth of Kentucky, or by any political subdivision of the Commonwealth of Kentucky, there shall be added to the aforesaid annual rental payment due in such year a sum equal to the assessments which are required to be paid by the holder of said note or nol:es in said year, one-half thereof to be paid by the County and one-half by the City, and in which event the Corporation shall refund to the holders the amount of the taxes levied against them". SEC TON 2. This ordinance shall be in full force and effect from and after its adoption. Ma yor . Passed b;; the Board of Commissioners, October 23, 1945 Recorded by Rudy Stewart, City Clerk, October 23, 1945.