Motion to Negotiate Development Agreement with National Hospitality, LLC
After meeting in executive session for the discussion of matters pertaining to a specific proposal by a business entity where public discussion of the subject matter would jeopardize the location, retention, expansion a business entity, as
permitted by KRS 61.810(1)(g), the Paducah Board of Commissioners returned to open session and unanimously approved the following motion: A proposed motion that the Board of Commissioners adopt a Municipal Order entitled, a Municipal Order acknowledging the intent of the Paducah Board of Commissioners to authorize the Mayor and City Manager to negotiate in good faith a development agreement with National Hospitality, LLC, for the consideration of a hotel on certain real property currently owned by the City of Paducah, Kentucky, with said development agreement to be presented at a future date to the Board of Commissioners for determination of final action.
Mayor George Bray said this project is to construct an approximately 120-room hotel on the city-owned property at 519 North 3rd Street. This property is adjacent to the Holiday Inn Paducah Riverfront in downtown Paducah. The hotel would be a mutually agreed upon national brand.
Mayor Bray said, “It confirms the growth this community is having and also the impact that the Paducah Sports Park is going to have on the need for hotel rooms going forward. It’s very positive for the community. It’s very positive for all of us.”
Commission Priorities Update Presentation
Assistant City Manager Michelle Smolen presented a midyear report on the work underway on the 2024 Commission Priorities. After holding strategic planning sessions in February, the Board determined 10 Commission Priorities and five Continuous Improvement items. To read the midyear report, visit Commission Priorities.
The 2024 Commission Priorities are Beautification and Wayfinding, Downtown, Housing, Minority Inclusion, Operational Efficiencies, Protecting Key Historical and Cultural Resources, Quality of Life, Southside, Stormwater, and Trails and Bike Lanes. The continuous improvements action items include 911, City Facilities, Mental Health Awareness, Paducah Sports Park, and Revenue Equity.
Acceptance of National Park Service Paul Bruhn Grant
The Paducah Board of Commissioners approved a Municipal Order accepting the National Park Service Paul Bruhn Historic Revitalization Grant. This competitive grant, which does not require a local match, will provide $750,000 to support economic development through the preservation of historic buildings. Once the city develops the application process and criteria and receives approval of the process from the National Park Service, the funds would be used to provide grants up to $100,000 each for the rehabilitation of historic properties in the Central Business District, Market House District, and Southside community. Funds also would be used to provide environmental technical support to those receiving subgrants. All properties awarded subgrants through this program must be listed in the National Register of Historic places by the end of the grant period. Properties may be listed individually or identified as contributing to a listed historic district.
Authorize Reimbursement to IDA for Site Preparation for Triple Rail Site
The Paducah Board of Commissioners approved a Municipal Order authorizing a reimbursement of up to $958,404 to the Industrial Development Authority for site preparation work at the Triple Rail Site in West Paducah. This nearly $4.7 million project is being funded primarily by McCracken County along with IDA funds. The project includes clearing, grubbing, earthwork, and engineering inspections at the site. Learn more by visiting Triple Rail Site.
Employment Agreement with Carol Gault as Director of Planning
The Paducah Board of Commissioners approved a Municipal Order authorizing an employment agreement with Carol Gault as Director of Planning. Gault has been serving as Interim Planning Director since mid-June. Gault is a former City Commissioner and Paducah Main Street Director.
Property Tax Levy Public Hearing and Ordinance Introduction
The Paducah Board of Commissioners approved an ordinance setting the City’s real estate and personal property tax rates for fiscal year 2025. The City’s real estate tax levy is set to be 26.4 cents per $100 assessed value, slightly higher than last year’s rate of 25.6 cents. This would be an increase of $8 on a home that is assessed for $100,000.
The City’s Compensating Rate, the rate that would keep the revenue at the same amount as last year, is 25.4 cents per $100 assessed value. Kentucky Revised Statutes (KRS) permits a city to adjust the rate upward no more than 4 percent of the compensating rate. Since the City’s proposed tax levy of 26.4 cents is higher than the compensating rate, the public hearing at the previous meeting was required.
The Board also approved an ordinance to collect the tax levies as set by the Paducah Independent School District. For many years, the City has collected the school’s taxes and passed along the funds to the district. The City does not set the school district’s rates. The school district’s real estate tax levy is 87.4 cents per $100 of assessed value.
CDBG Entitlement Program
City Manager Daron Jordan announced that he received notification on Monday from the Department of Housing and Urban Development (HUD) that Paducah is being considered as a Community Development Block Grant (CDBG) Entitlement Community. With growth in the population of the local Metropolitan Statistical Area (MSA), Paducah is eligible for the program which provides annual grants to be used for community development activities including housing and neighborhood revitalization. This could generate approximately $450,000 per year in direct CDBG funds without the need to make an application and compete with other communities for funds. Additional information about this program can be found at CDBG Entitlement Community..
Additional Meeting Information
- Municipal Orders approved to purchase one crew cab dump truck for the Street Division and one ¾ ton pickup truck for the Parks & Recreation Department.
- Municipal Order approved for a funding agreement with Paxton Park for the purchase of a greens mower.
- Ordinance introduced to accept the permanent utility easement for the property at 723 Cruse Avenue allowing the City to access a stormwater line for future repairs, replacements, or removal.
- The Board voted with a unanimous vote to table the ordinance introduction that would amend the zoning map to rezone 200 Fountain Avenue from R-1 (low density residential) to Neighborhood Services Zone as recommended by the Paducah Planning Commission.
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