Announcement of Marriott Aloft as Hotel for 519 North 3rd Street
Mayor George Bray announced that National Hospitality, LLC has an agreement with Marriott for the construction of an Aloft hotel on the property at 519 North 3rd Street. The developer is anticipating a $15 million private investment and has demonstrated that the funding in place.
Mayor Bray said there is an Aloft hotel in Louisville, and that he has stayed in a couple of different Aloft hotels. Mayor Bray added, “It’s got a very cool vibe with an open atmosphere. It’s one of the new brands of hotels, and I think it will serve this community very well. I think people will be very interested in staying there.”
At its September 30 meeting, the Paducah Board of Commissioners authorized a development agreement with National Hospitality, LLC for the construction of a hotel on the city-owned property located at 519 North 3rd Street. This property is adjacent to the Holiday Inn Paducah Riverfront and within walking distance to the Paducah Convention Center complex in downtown Paducah. The City purchased this property in 2015 which previously housed a nursing home and hospital.
The hotel is proposed to have four stories, approximately 120 rooms, an indoor swimming pool, and a dining area. The developer plans to hold a public meeting to gather input on the hotel’s design.
As part of the development agreement, the City agrees to convey the property to the developer; however, if the developer defaults, the city would be able to regain ownership of the property. The hotel is to be completed within 24 months once an approved start date is set.
Ordinances Related to 911 Services
The Paducah Board of Commissioners approved ordinances related to the provision and funding of emergency 911 services. The first ordinance amends the original interlocal agreement with McCracken County for the provision of 911 services. This change in the agreement establishes a Paducah-McCracken Joint 911 Parcel Fee Appeals Board which shall determine appeals filed by property owners concerning the classification of their property. The previous ordinance included a City board and a County board. This Joint Appeals Board shall consist of five citizens who are not elected officials nor employees of the City or County. The Mayor shall appoint two members with the McCracken County Judge Executive appointing two members. The Mayor and Judge Executive shall jointly appoint one member.
The second ordinance approved by the Board repeals and replaces the real estate parcel fee ordinance creating the funding of 911 services, equipment, and maintenance. This update is similar to the changes in the interlocal agreement to update the appeals process. This ordinance also includes the updated occupied residential unit rebate form. For this first year only, owners of all occupied residential rental units are eligible to claim a rebate of $22.50 per unit against the annual 911 Real Estate Parcel Fee due. For more information, visit 911 Real Estate Parcel Fee.
Paducah Main Street Discussion
Planning Director Carol Gault, Paducah Main Street Chairman Jeff Canter, and David Wilkins who chairs Paducah Main Street’s Economic Vitality Committee provided an overview of the history and purpose of Paducah Main Street. The Main Street model is used by communities across the country to energize and redevelop their downtown areas. It has a four-point approach: design, promotions, economic vitality, and organization. Gault explained that Paducah Main Street has been instrumental in revitalizing downtown Paducah with Paducah honored in 2010 to receive the Great American Main Street Award. Gault showed pictures of downtown comparing 2nd Street in 1989 versus today depicting significant changes in streetscape and ambiance.
Paducah Main Street began as a non-profit in 1989. In 2009, it became a division of the City of Paducah’s Planning Department. Wilkins said most Main Streets operate as non-profits, not as divisions of city government. The purpose of the discussion at this meeting was to explore the pros and cons of an entity owned by the community as a non-profit versus as a division of a city department.
Wilkins proposed meeting with local stakeholders and holding listening sessions to gather input with the goal of coming back to the City Commission with a detailed plan of how, if desired by the community, to transition Paducah Main Street from a city division to a non-profit. The City Commission voiced their support in researching this possible transition and suggested talking to other communities about the structure of their Main Street entities.
Health Insurance Plan Update
Benefits Advisor DJ Story with HUB International provided an overview of the City of Paducah’s 2025 health insurance plan through Anthem Blue Cross Blue Shield as the City’s third-party administrator. Those who participate in the City’s health plan will have NO change to their health insurance premiums for 2025. The City has maintained the same health insurance premium rates consecutively for 13 years which is quite unusual and an indication of the good management of the health plan and the City’s dedication to employee wellness. Furthermore, vision premiums are remaining the same as this current year. The dental premiums will increase by 3 percent. To comply with Internal Revenue Service (IRS) minimums, there is a change in the deductibles for the health insurance plans. For example, the deductible for a single person on the Investor Plan is increasing from $3200 to $3300. The City of Paducah has a self-insured health insurance plan which means premiums paid into the plan by the employees are used to pay the claims.
Actions taken by the Paducah Board of Commissioners regarding benefits, wellness, and health insurance are as follows:
- Municipal order approved for the 2025 health insurance, vision, and dental premiums.
- Municipal order approved for a contract with HUB for strategic health risk advisor and benefit placement services for the City’s health insurance.
- Municipal order approved authorizing an agreement between the City of Paducah and Anthem Blue Cross Blue Shield to provide administrative services for 2025 related to the City’s health insurance plan.
- Municipal order approved for an agreement with Voya Financial Advisors, Inc. to provide stop loss insurance which is used when a plan participant’s claims exceed a set value or when the City’s total claims exceed a set maximum.
- Municipal order approved setting the policy for the funds provided by the City to eligible employees for 2025 in the health and wellness plans (also called spending credits).
Additional Meeting Information
- Mayor Bray presented a proclamation to representatives of various organizations including Paducah Public Schools, Paducah Cooperative Ministry, and Kentucky Cares proclaiming November as Hunger and Homelessness Awareness Month.
- Mayor Bray presented a Duke of Paducah to Jeff Canter who serves on several boards including Paducah Main Street, Columbia Art House, and Tennessee RiverLine.
- Appointment of Denny Roof and Michele Murphy to the Paducah Civic Beautification Board.
- Municipal Order approved for contract modification #7 with MidStates Construction for the Robert Cherry Civic Center Project. This change is a credit to the City in the amount of $3,034.03.
- Municipal Order approved authorizing the application for a 2024 KY Office of Homeland Security State and Local Cyber Grant for the Technology Department.
- Municipal Order approved for the Release of All Claims and to ratify the Mayor’s signature and execution of the Release of All Claims against Kenneth W. Flournoy and El Camino Logistics, LLC, dated October 10, 2024. This was a lawsuit filed by the City regarding the vehicle crash that damaged the Civic Center in 2022.
- Municipal Order approved for the purchase of one ¾ ton service truck and one 1-ton service truck.
- Municipal Order approved to apply for a Kentucky League of Cities Liability Grant in the amount of $3000.
- Ordinance approved for a new interlocal agreement for the Paducah-McCracken County Geographic Information System. The McCracken County and Paducah Geographic Information System Consortium was established in 1999. This new interlocal agreement adds McCracken County PVA to the consortium.
- Ordinance approved amending Chapter 78 of the Paducah Code of Ordinances regarding personnel. Many of the amendments update language to match existing policies.
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