2018-121 Top 20 Taxpayer Category on EDP BoardDate: September 7, 2018 Report No. 2018-121
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Inclusion of Top 20 Taxpayer representatives on the Economic Development Partnership (EDP)
Board
EXECUTIVE SUMMARY:
Since the formation of the Economic Development Partnership Board by the City Council in
2003, two Board members “will be, or be employed by, a top twenty City of Denton ad valorem
or sales tax payer,” and such members must reside or work in Denton. While the board
composition has been expanded over the past 15 years to include more diversity of perspective
and experience, that membership category has remained unchanged due to the unique view these
members bring on locating and expanding large companies in Denton and the particular
workforce needs of the largest local employers, as well as the business background and financial
experience of the individual members themselves.
BACKGROUND:
In 2001, at the direction of Mayor Euline Brock, City staff organized a community symposium
called “Denton Tomorrow” in order to share the City Council’s vision for the future of Denton
and its economic development and solicit feedback from residents. A retreat, facilitated by the
consulting firm TIP Strategies then was held to further discuss and refine the ideas and concepts
gathered at the symposium; City Council and City staff, Denton Chamber of Commerce Board
leaders and staff, Denton County, Denton ISD, North Central Texas College, Texas Woman’s
University, and University of North Texas all participated in the retreat as stakeholders in local
economic development.
In 2002, those stakeholders began a series of steering committee and task force meetings that
ultimately resulted in a detailed strategic plan for economic development. That plan included the
creation of an economic development partnership board to oversee plan implementation and
ongoing economic development activities by the City and the Chamber.
In 2003, the Council approved the economic development strategic plan and officially created
the Economic Development Partnership Board. The original composition of the EDP Board was
two City Council members, two members of the Denton Chamber of Commerce Board of
Directors, two Top 20 tax payers, and the President of the University of North Texas. These
seven voting members represented stakeholders in Denton’s government, business, and higher
education sectors. The City Manager and the President of the Denton Chamber of Commerce
were ex-officio members.
In 2011, due to a new emphasis on recruitment of business to locate or expand at Denton
Enterprise Airport, Council added one member to the EDP Board who has “knowledge or
experience in general aviation-related matters.” At the same time, an at-large seat was added for
a “citizen of the City of Denton” who “has specific knowledge, skills, and abilities to assist in all
Date: September 7, 2018 Report No. 2018-121
or any one of the functions and responsibilities of the Economic Development Partnership
Board.” This brought the total voting membership of the EDP Board to nine.
In 2014, the Council determined that due to the impact economic development has upon the
Denton Independent School District, it was in the public interest to add the Superintendent of
DISD as an ex-officio member.
In 2015, the Council expressed an interest in diversifying the membership of the EDP Board and
determined it was in the public interest to modify the Board’s membership to include
participation of the Denton Black Chamber of Commerce and the Denton Hispanic Chamber of
Commerce. Total Board voting membership was now 11.
In 2016, in recognition of Texas Woman’s University’s contributions to Denton’s economy,
Council determined it was in the public interest to add a seat to the EDP Board for the TWU
Chancellor and President; this brought Board voting membership to 12, where it remains today.
DISCUSSION:
One significant activity of the economic development partnership between the City and the
Chamber is to recruit and expand companies that bring quality jobs for citizens and significant ad
valorem or sales volume to grow the local tax base. These particular efforts often focus on larger
companies, which have unique needs in site selection, workforce, utilities, transportation, etc.
The Top 20 taxpayer members can provide perspective to staff and fellow Board members on all
these issues, because they deal with them in the location, expansion, and operation of their
companies. They also serve as a valuable resource in the vetting of such companies’ projects and
the financial information they submit when applying to the City for incentives because they often
have experience with projects of similar size and scale. The expansion of the EDP Board
membership over the years has added new and valuable perspectives of small business owners
and has allowed for more gender and racial inclusion. As a whole, the board membership
makeup allows for a wide range of viewpoints based on diverse experience with business
operations of different sizes and in different sectors.
ATTACHMENT(S):
Ordinance No. 2017-203
STAFF CONTACT:
Caroline Booth
Caroline.Booth@cityofdenton.com
940.349.7751
ORDINANCE NO.
2017-203
AN ORDINANCE REPEALING ORDINANCE NO. 2003-258, AND SUBSEQUENT
AMENDMENTS UNDER ORDINANCE NO. 2011-042, ORDINANCE NO. 2014-009,
ORDINANCE NO. 2015-074, AND ORDINANCE NO. 2016-249, RELATING TO THE
CREATION, APPOINTMENTS, AND DUTIES OF THE ECONOMIC DEVELOPMENT
PARTNERSHIP BOARD (THE "BOARD") AND REPLACING THESE ORDINANCES WITH
THIS ORDINANCE RELATING TO THE CREATION, APPOINTMENTS, AND DUTIES OF
THE ECONOMIC PARTNERSHIP BOARD IN ORDER TO CLARIFY THE
QUALIFICATIONS AND LIMITATIONS OF BOARD MEMBERS; AMENDING THE
DENTON CODE OF ORDINANCES, CHAPTER 2, ARTICLE IX; AND PROVIDING FOR A
REPEALER AND CONFLICT CLAUSE AND AN EFFECTIVE DATE.
WHEREAS, in 2003, the City Council of the City of Denton, Texas, determined that is
was beneficial and in the public interest to establish an Economic Development Partnership Board
to provide economic development policy guidance for the City and adopted Ordinance No. 2003-
258 (the "Ordinance"), which ordinance was codified in the Denton Code of Ordinance, Chapter
2, Article IX; and
WHEREAS, in 2011, the City Council amended the Ordinance by adopting Ordinance No.
2011-042 in order to add two seats to the Board, consisting of an at -large position and a position
for a member with general knowledge ofor experience in general aviation, and to expand the duties
of the Board to include branding and marketing for Denton Municipal Airport; and
WHEREAS, in 2014, the City Council amended the Ordinance by adopting Ordinance No.
2014-009in order to add the Superintendent of the Denton Independent School District as an ad
hoc non-voting member of the Board; and
WHEREAS, in 2015, the City Council amended the Ordinance by adopting Ordinance No.
2015-074 in order to add two seats to the Board, one for a representative nominated by the Denton
Black Chamber of Commerce Board of Directors and one for a representative nominated by the
Denton Hispanic Chamber of Commerce Board of Directors; and
WHEREAS, in 2016, the City Council amended the Ordinance by adopting Ordinance No.
2016-249 in order to add one seat to the Board for the Chancellor and President of Texas Woman's
University; and
WHEREAS, in 2017, the City Council determined that it is beneficial and in the public
interest to repeal the Ordinance and subsequent amendments in order to clarify and refine the
Board member qualifications, terms, duties, and responsibilities; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION11. Findings.
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The findings contained in the preamble of this Ordinance are incorporated into the body of
this Ordinance.
SECTION 2. The Code of Ordinances of the City of Denton, Chapter 2, Article IX is
hereby amended by deleting it in its entirety and replacing it with the following:
ARTICLE IX. ECONOMIC DEVELOPMENT PARTNERSHIP BOARD
Sec. 2-251. Creation, Members, Qualifications, and Tenure.
A. There is hereby created a City of Denton board entitled the Denton Economic
Development Partnership Board (the "Board"). The Board shall consist of twelve members. Six
members shall be appointed for a two-year term in even -numbered years, and six members shall
be appointed for a two-year term in the odd -numbered years. No member shall serve more than
three consecutive terms; members who have served three consecutive terms are eligible for re-
nomination after one year off the Board. The President of the University of North Texas ("UNT")
and the Chancellor of Texas Woman's University ("TWU") or his or her designee may serve
unlimited terms but must be re -nominated upon the expiration of each term.
B. The Board members shall be appointed by the City Council and shall serve at the
City Council's pleasure. To aid the City Council in making appointments to the Board, the City
Council will appoint two City Council members and one Chamber of Commerce ("Chamber")
member to act as a nominating committee ("Committee"). The Committee members are qualified
for appointment to the Board. The Committee will solicit nominations, contact nominees to relate
duties and responsibilities, and to confirm willingness to serve. The Committee will solicit
recommendations from the Chamber Board of Directors, the President of UNT, the President and
Chancellor of TWU, the Denton Black Chamber of Commerce Board of Directors, and the Denton
Hispanic Chamber of Commerce Board of Directors. If any such recommendation is not submitted,
the Committee will consider the racial, ethnic, and gender diversity objectives of the City Council,
as well as the knowledge, skills, and abilities of the nominees to assist in any one or all of the
functions of the Board when making its nomination recommendations to the City Council. After
evaluating the recommended nominees, the Committee will present to the City Council a slate of
Board nominees for City Council approval.
C. Notwithstanding anything contained herein to the contrary, the membership
makeup ofthe Board shall consist of the following:
1. Two members of the Board shall be City Council members at the time of their
appointment. If such a member is no longer on the City Council, their
appointment to the Board is terminated and their unexpired term shall be filled
by a currently serving City Council member. Such members must be residents
ofthe City of Denton.
2. Two members of the Board shall be members of the Denton Chamber of
Commerce Board of Directors ("Chamber Board"), which are nominated by the
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Chamber Board, at the time of their appointment. If such a member is no longer
on the Chamber Board, their appointment to the Board is terminated and their
unexpired term shall be filled by a currently serving Chamber Board member.
Such members must reside or work in the City of Denton.
3. Two members will be, or must be currently employed by, a top 20 City of
Denton ad valorem or sales tax payer. Such members must reside or work in
the City of Denton. If such a member is no longer a top 20 City of Denton
taxpayer or employed by one, their appointment to the Board is terminated and
their unexpired term shall be filled by a current City of Denton top 20 taxpayer
or City of Denton top 20 taxpayer employee.
4. One member will be the President of UNT or a UNT faculty or staff member
designated by the President. Such member need not reside in the City ofDenton.
5. One member will be the Chancellor and President of TWU or a TWU faculty
or staff member designated by the Chancellor and President. Such member need
not reside in the City of Denton.
6. One member will have knowledge or experience in general aviation -related
matters and shall have no financial interest in matters at the Denton Enterprise
Airport. This member must reside or work in the City of Denton.
7. One member will be a citizen of the City of Denton who, in the discretion of
the City Council, has specific knowledge, skills, and abilities to assist in all or
any one of the functions and responsibilities ofthe Board.
8. One member will be nominated by the Denton Black Chamber of Commerce
Board of Directors. This member must reside or work in the City of Denton.
9. One member will be nominated by the Denton Hispanic Chamber of
Commerce. This member must reside or work in the City of Denton.
10. The City Manager, the President ofthe Chamber, and the Superintendent of the
Denton Independent School District will serve as ad hoc ex officio (non-voting)
members of the Board.
D. The Board shall elect its chairperson and vice -chairperson from among its members,
who shall serve for one-year terms or until his or her successor is elected or qualified.
The Board may remove and reelect a chairperson or vice -chairperson at any time with
an affirmative vote of at least 10 members.
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E. Board members shall serve without compensation. Board members may be allowed
out-of-pocket expenses for activities performed in furtherance of their duties to the
Board. Such expenses must be pre -approved by the City Manager if paid for out of City
funds, or the Chamber President ifpaid for out of Chamber funds.
Sec. 2-252. Meetings.
The Board shall meet on a regular basis and no less than on a quarterly basis. Monthly
meetings are encouraged. The chairperson, vice -chairperson, or any five Board members may call
any regular or special meeting. Notice of the meetings shall be posted and the meetings shall be
conducted in accordance with the Texas Open Meetings law, being Chapter 551 ofthe Government
Code, as amended. A majority of the qualified voting members of the Board shall constitute a
quorum for the transaction of business at any meeting of the Board. The act of a majority of the
qualified voting members of the Board present at a meeting at which a quorum is present shall be
the act of the Board.
Sec. 2-253. Rules of Procedure.
The Board shall adopt rules of procedure governing the operation of the Board
incorporating Section 2-29 of City Council Rules of Procedure insofar as it is possible.
Sec. 2-254. Duties and Responsibilities of the Board.
The role of the Board is to provide economic development policy guidance. The Board
may make recommendations to the City Council and Chamber Board of Directors. The Board's
duties include:
A. The Board may create committees or task forces consisting of Board members and/or
non -Board members to assist with the implementation of projects or activities.
Committee or task force chairpersons shall be appointed by the Board and will serve at
the pleasure of the Board.
B. The Board will be responsible for designing economic development incentive policies
and recommending those policies to the City Council for adoption. These policies may
include tax abatement, Chapter 380 agreements, infrastructure assistance, etc. In
making any recommendations, the Board shall comply with applicable law. It will be
the Board's responsibility to review policies of other cities and to be informed as to
legislative changes affecting state and local incentive programs.
C. The Board shall act as the recommending body to the City Council for economic
development incentives authorized by law for specific projects, including without
limitation tax abatements and incentives authorized under Chapter 312 ofthe Tax Code,
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economic development agreements authorized under Chapter 380 of the Local
Government Code, public improvement districts authorized under Chapter 372 of the
Local Government Code, and certain Downtown Reinvestment Grants under
Ordinance No. 2012-001. However, utility incentives based on thresholds, such as
Denton Municipal Electric's Economic Growth Rider and the Water/Wastewater Plan
Line Extension may be made without Board review or recommendation. Nothing
herein shall be construed so as to invalidate an economic development incentive
authorized by the City Council that did not receive a recommendation from the Board.
D. The Board will review, consider, and make recommendations to the City Council
regarding marketing and branding for the Denton Enterprise Airport. The Board will
review, consider, and make recommendations to the City Council regarding Denton
Enterprise Airport incentive policies, as assigned by the City Council or requested by
the City Manager, and will act as a recommending body to the City Council for specific
airport economic development incentives, as assigned by City Council or requested by
the City Manager and permitted by City and State law."
SECTION 3. Ordinances 2003-258, 2011-042, 2014-009, 2015-074, and 2016-249 are
hereby repealed and are replaced with this Ordinance provided, however, that the repeal of any
such ordinance or code or part thereof shall not revive any other section or part of any ordinance
or code heretofore repealed or superseded. This ordinance supersedes any provision in any City
ordinance that is in conflict with this ordinance including without limitation any conflicting
provisions of Sections 2-61 through 2-65 of the Code of Ordinances of the City of Denton.
SECTION 4. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of 2017.
CHRIS WATTS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:.... A' .....
APPR( l D AS T LEGAL FORM:
AARON EAL, INTERIM CITY ATTORNEY