Paducah commissioners approve bond arbitrage payment, Hotel Metropolitan stewardship and multiple ordinances

The Paducah Board of Commissioners on March 4 approved a series of routine and substantive items, including a $946,515.49 payment to the U.S. Department of the Treasury to satisfy a yield‑restriction (arbitrage) liability linked to a 2020 general obligation bond, authorized a co‑stewardship agreement for the Hotel Metropolitan and Purple Room with the Uptown Heritage Foundation, and adopted four ordinances covering a street closure, a residential development incentive, medical cannabis business licensing and the abolition of 911 landline fees.

The votes were unanimous (aye votes from Commissioner Henderson, Commissioner Smith, Commissioner Thomas, Commissioner Wilson and Mayor George Bray) for each item called and put to roll call.

The municipal order authorizing payment of $946,515.49 to the Internal Revenue Service implements calculations prepared for the city that showed earnings on bond proceeds exceeded the allowable arbitrage yield; finance staff and outside consultants explained the payment at the meeting and said the city had set aside earnings to cover the liability.

The commission also approved a three‑year co‑stewardship agreement between the city and the Uptown Heritage Foundation to support the Hotel Metropolitan and its Purple Room. The agreement memorializes commitments tied to a prior Mellon Foundation grant and includes city funding of up to $250,000 per year for up to three years, with options to renew in one‑year increments.

On the ordinance docket the commission adopted: - an ordinance closing 15,460 square feet of North Third Street between Harrison Street and Executive Boulevard and authorizing quitclaim deeds to abutting property owners; - an agreement (Trails End Subdivision/Trails n Development LLC) approving a five‑year residential development rebate capped at the lesser of 20% of total infrastructure cost or the total ad valorem real property taxes actually received by the city; - an amendment to the city license tax code to establish a licensing schedule and minimum annual license tax for medicinal cannabis businesses and to require a valid Commonwealth license under KRS Chapter 218B; and - an ordinance removing the city’s 911 landline fees and aligning the code with the interlocal agreement between the city of Paducah and McCracken County.

Consent items enacted in a single motion included minutes from prior meetings, appointments to the Paducah Civic Beautification Board, personnel actions, an FY2026 highway safety grant application for $30,000 to the Kentucky Transportation Cabinet, a contract with HDL Companies to identify businesses not paying required local taxes, and contract modifications (1–6) to A & K Construction Inc. totaling $28,404 for a technology department reroof and renovation.

The board also approved a municipal order authorizing the mayor to execute the Hotel Metropolitan co‑stewardship agreement and moved into an executive session later in the evening to discuss pending litigation under KRS 61.810(1)(c); participants indicated no further action was expected after the closed session.

Votes at a glance - Consent agenda (minutes, appointments, personnel actions, FY2026 highway safety grant $30,000, HDL Companies contract, A & K Construction contract mods $28,404): Approved, roll call ayes 5–0. - Resolution: Adopt findings for rezoning petition, 200 Fountain Ave.: Approved, roll call ayes 5–0. - Municipal order: Authorize payment of $946,515.49 to Internal Revenue Service for 2020 general obligation bond yield restriction liability: Approved, roll call ayes 5–0. - Municipal order: Approve Hotel Metropolitan co‑stewardship agreement with Uptown Heritage Foundation (three‑year agreement; city funding up to $250,000/year): Approved, roll call ayes 5–0. - Ordinance: Close 15,460 sq ft of North Third Street between Harrison and Executive Blvd.: Adopted, roll call ayes 5–0. - Ordinance: Trails End Subdivision development agreement with Trails n Development LLC (5‑year rebate limit described in ordinance): Adopted, roll call ayes 5–0. - Ordinance: Medical cannabis business licensing and license tax schedule (requires valid license under KRS Chapter 218B): Adopted, roll call ayes 5–0. - Ordinance: Abolish 911 landline fees and align code with county interlocal agreement: Adopted, roll call ayes 5–0. - Motion to go into executive session to discuss proposed or pending litigation under KRS 61.810(1)(c): Approved, roll call ayes 5–0.

Because many items were adopted on unanimous roll calls after being read by the city clerk, the meeting record does not show individualized recorded “yes/no” votes beyond the roll calls; the tally for each listed motion was five ayes and no recorded no/abstain votes.