HomeMy WebLinkAbout2008-10-7466ORDINANCE NO. 2008-10-7466
AN ORDINANCE OF THE CITY OF PADUCAH, KENTUCKY, APPROVING
A MEMORANDUM OF UNDERSTANDING WITH PADUCAH RIVERFRONT
HOSPITALITY, LLC AND AUTHORIZING THE MAYOR TO EXECUTE SAID
MEMORANDUM OF UNDERSTANDING
WHEREAS, the Paducah -McCracken Convention Center Corporation, an agency of
local government of the city of Paducah and McCracken County, own certain lands along the
riverfront in downtown Paducah that have been allocated to private leasehold interests for the
operation and management of a hotel and convention centers, known as the Executive Inn; and
WHEREAS, the city's convention business operated by the Executive Inn, is the
centerpiece of Paducah's $280 million annual tourism business. More than 3,000 jobs are provided
locally in the tourism and hospitality industries; and
WHEREAS, the Executive Inn, has for 24 years been the home to the American Quilt
Society spring show. This international event brings some 35,000 visitors to Paducah convention
facilities; and
WHEREAS, the Executive Inn was closed on September 8, 2008. The closing of the
hotel and convention facilities places the spring show, as well as numerous other convention events,
in jeopardy; and
WHEREAS, Paducah Riverfront Hospitality, LLC ("Paducah Hospitality) has agreed
to purchase and significantly rehabilitate, expand and reopen the Executive Inn Hotel and convention
facility by rehabilitating the Executive Inn ("Project") within the corporate limits of the City of
Paducah ("City"), Kentucky; and
WHEREAS, as a condition precedent to the construction of the Project, Paducah
Hospitality has requested the commitment of the City to make and/or reimburse Paducah Hospitality
for certain necessary costs related to financing, renovation, construction, and improvements to
facilities and properties relating to the municipal interests of the City, including the improvements to
the access and entrance to the convention centers, the riverfront, and the greenway trail ("Related
Facilities"); and
WHEREAS, it is the general consensus of the City Commission that the construction
of Paducah Hospitality's Project will promote the economic welfare of Paducah, and will help
relieve unemployment and also provide a stimulus to future commercial, hospitality, and convention
activity in Paducah, and that the terms as negotiated between the City and Paducah Hospitality with
regard to the City's commitment to Paducah Hospitality are in the public interest of the City and
accomplishes the immediate construction of Paducah Hospitality's Project.
WHEREAS, lost business and the potential for more losses have created an urgent
need for the City to act.
BE IT ORDAINED BY THE CITY OF PADUCAH, KENTUCKY:
Section 1. The Board of Commissioners does hereby approve the terms of the
Memorandum of Understanding between the City and Paducah Riverfront Hospitality, LLC, which
defines the City's commitment to fund $75,000.00 for the expenses related to the renovation,
construction, and improvements of hotel Proj ect and the Related Facilities. In accordance with such
approval, the Mayor of the City is hereby authorized and directed to enter into a Memorandum of
Understanding with Paducah Riverfront Hospitality, LLC, which sets forth the terms of the City's
commitment with regard to renovation, construction, and improvements of the Related Facilities.
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Section 2. Pursuant to KRS 83A.060, the City Commission suspends the requirement of a second
reading and publication of this Ordinance. As grounds therefore, the City hereby declares, on the
basis of the findings set forth above, that an emergency exists and this ordinance is necessary to
protect the public's health, safety, and welfare.
ATTEST:
IWM/M" --/) A�
Tammara S. Brock, City Clerk
Introduced and adopted by the Board of Commissioners, October 14, 2008
Recorded by Tamara S. Brock, City Clerk, October 14, 2008
Published by The Paducah Sun, October 21, 2008
\ord\MOU-Paducah Riverfront Hospitality (Ex Inn)