Note: Due to the COVID-19 situation and the need to maintain social distancing, all members of the Paducah Board of Commissioners participated by video and/or audio conferencing.
Commissioner Gerald Watkins was unable to attend this meeting.
City Block Development Agreement (vote August 12)
The Paducah Board of Commissioners approved an ordinance (by a 3-1 vote with Commissioner Richard Abraham voting no) for a development agreement between the City and Weyland Ventures Development, LLC for the City Block project. This project includes the development of a hotel, parking, open space, and mixed-use residential buildings located on the 2.88-acre city-owned block bounded by Second Street, Broadway, North Water Street, and Jefferson Street.
At the July 28 meeting, Bill Weyland and Barry Alberts with Weyland Ventures provided an overview of the company and its various projects including several projects completed in Louisville, Kentucky, and Dayton, Ohio. Alberts stated that Weyland Ventures likes Paducah and would like to do more projects after investing $21 million in the City Block project.
In April 2019, the City and Weyland entered into a pre-development agreement for each party to undertake various site due diligence for the project including numerous stakeholder meetings, market and financial analysis, project development and design, environmental review and geotechnical analysis, and parking analysis.
Under this development agreement, the project is divided into two construction phases. The city-owned block is divided into three tracts with Weyland purchasing the two smaller tracts (Tract 1 and Tract 3). The middle tract (Tract 2) is the largest which will remain under city ownership for parking and open space.
The first phase includes Weyland purchasing Tract 1 for $141,000 for the construction of a 4 ½ story boutique hotel, with the final site plan showing 84 rooms, along Jefferson Street. Weyland will invest a minimum of $12 million in the hotel. The City will review the design of the hotel to ensure the design fits the fabric of the historic downtown. Also, during this first phase, Weyland will provide improvements to Tract 2 (the middle tract) to create green space, open space, and parking with the final site plan depicting 172 parking spaces. At this time, this parking lot offers 213 spaces. The City will retain ownership of Tract 2 and will reimburse Weyland for the development expenses.
The second phase of this development is the construction of two mixed-use commercial and residential buildings along Broadway on Tract 3. Weyland will purchase Tract 3 for $155,000 and will invest a minimum of $9 million into this phase. Phase 2 could include approximately 18,000 square feet in commercial space with up to 48 upper-story residential units.
First Amendment and Extension to Right of First Refusal Agreement with Riverfront Hotel LP
The Paducah Board of Commissioners approved an ordinance (by a 3-1 vote with Commissioner Richard Abraham voting no) to amend and extend the agreement with Paducah Riverfront Hotel, LP for the city-owned property located at 501 North 3rd Street. This is vacant property located adjacent to the City’s floodwall and the Holiday Inn Paducah Riverfront. A nursing home was the last structure that was on the site before being demolished. In 2015, the City approved an agreement with Paducah Riverfront Hotel (LinGate Hospitality) for a right of first refusal and an option to purchase or lease the property. That agreement expired last month. This ordinance would extend the agreement for two more years with an expiration date of July 15, 2022, and amend the agreement to allow the developer more flexibility in the type of accommodations to be developed on the property. In 2015, the City entered into a development agreement with Paducah Riverfront Hotel to bring the 123-room Holiday Inn Paducah Riverfront which is located next to the convention center complex.
Rezoning of Property at 401 Walter Jetton Boulevard (vote August 25)
The Paducah Board of Commissioners introduced an ordinance to rezone 2.96 acres of property located at 401 Walter Jetton Boulevard from R-3 (Medium Density Residential Zone) to B-3 (General Business Zone). The site is the former Walter Jetton High School. The Marian Development Group is planning to purchase the property for a renovation project called The Dunlap. The project includes 40 one-bedroom apartment units and 20 two-bedroom apartment units. Symphony Auditorium and the former library would be renovated into a community service facility providing administrative offices, education and training spaces, and performance space for two arts organizations. The Paducah Symphony Orchestra (PSO) would be one of the arts organizations using space for their administrative offices and the hall as a secondary performance space. A second arts organization is also proposed to occupy and program the space. This ordinance would also approve a parking waiver variance to reduce the required number of parking spaces from 471 to 179 spaces. At its August 3 meeting, the Paducah Planning Commission found that the rezoning and parking waiver were appropriate along with the condition that the property not allow automotive uses of any type in the future.
Quick Highlights
- Municipal order approved for the 2020-2021 Kentucky Household Hazardous Waste Grant Interlocal Agreement with McCracken County. This grant funds the spring clean-up day held typically in April. It’s a city-county event with both government agencies splitting the required funding match.
- Municipal order approved to apply for the 2020-2021 Edward Byrne Memorial Justice Accountability Grant in the amount of $11,316. The municipal order amends the one approved in April by reducing the funding request from $13,094.65 to $11,316. The reduction is needed so that the grant funding will cover the entire purchase of four radios for the Paducah Police Department without the need for additional City funds.
- Ordinance approved for the refinancing of the 2010B General Obligation Bond. This is the $9.3 million bond originally issued in 2001 and refinanced in 2010 for the construction of the Paducah-McCracken County Expo Center and to contribute $3.0 million to the construction of the Carson Center. The 25-year bond issue debt service payments are funded primarily by the McCracken County Transient Room Tax with any remaining balance shared equally by the City of Paducah, McCracken County, and the Paducah Convention and Visitor’s Bureau. The bond market appears to be favorable to refinance this bond at an interest savings estimated to exceed $28,000 per year for each of the six remaining years.
- Ordinance approved for a budget amendment in the amount of $141,000 for the purchase of Paxton Park grounds equipment.
- Ordinances approved amending sections of Sect. 126-176 of the City of Paducah Zoning Code. The amendments are 1) to allow for electronic signs in the Mixed Use (MU) and A-1 districts and 2) to provide for an alternative rezoning approval process, renaming of the section, expanding notice requirements, and reordering and renumbering of the section.
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