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HomeMy WebLinkAbout1998-016ORDINANCE NO W -el& AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AND THE EXTRATERRITORIAL JU- RISDICTION OF THE CITY OF DENTON AS REINVESTMENT ZONE NO I FOR COM- MERCIAVINDUSTRIAL TAX ABATEMENT, ESTABLISHING THE BOUNDARIES OF SUCH ZONE, MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE, ORDAINING OTHER MATTERS RELATING THERETO, PROVIDING A SEVERABILITY CLAUSE, PROVIDING FOR REPEAL, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Denton, Texas ("City" or "Municipality") desires to promote the development or redevelopment of a certain contiguous geographic area within its corporate city limits, its Jurisdiction, and its extraterritorial jurisdiction by the creation of a reinvestment zone for commercial/industrial tax abatement, as authorized by V T C A TEX TAX CODE chapter 312 (referred to as the "Property Redevelopment and Tax Abatement Act' or the "Act'), and WHEREAS, an industry known as United Copper Industries has requested tax abatement to build improvements within the area to be designated as Reinvestment Zone I, and WHEREAS, the City Council desires to create a proper economic and social environment to induce investment of private resources and productive business enterprises in this area of the City, which meets the criteria established under §312 202 of the Act, and to expand primary em- ploymentlor to attract major investment, and WHEREAS, by resolution dated January 27, 1998, a public hearing before the City Council was called, set, and held at 7 00 p in on February 3, 1998 in the City Council Chambers of the City of Denton at 215 East McKinney Street in the City of Denton, such date being at least seven (7) days after the date of publication of notice of such public hearing and the receipt of written notices of such public hearing by the presiding officer of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone, in accor- dance with §312 201 of the Act, and WHEREAS, such public hearing was held before the consideration and adoption of this ordinance, and WHEREAS, the City, at that hearing, invited any interested citizen or his representative to appear and offer testimony or evidence for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory described in the notice calling the public hearing should be included in the proposed reinvestment zone, and the concept of tax abatement, and WHEREAS, in accordance with such public notice, all owners of property within the proposed reinvestment zone and all other taxing units and other interested persons were given the opportunity at such public hearing to protest the creation of the proposed reinvestment zone or the inclusion of their property in such reinvestment zone, and WHEREAS, on the 27`h day of January, 1998, on or before the holding of the above - mentioned public hearing, the City Council passed a resolution establishing guidelines and crite- na governing tax abatement agreements and stating that the City of Denton elects to become eli- gible to participate in tax abatement, in accordance with TEX TAX CODE §312 002, and such tax abatement policy is now in effect and was in effect prior to the public hearing, and WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of- fered evidence in favor and against all matters relating to the creation of the reinvestment zone, and, after hearing this testimony and evidence, the City Council deems it in the public interest to create this reinvestment zone, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SECTION I That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct SECTION II. That for the purposes of this ordinance, the following terms and phrases shall have the following meanings ascribed to them A Improvements — Improvements shall include, for the purpose of establishing eligibility under the Act, any activity at the location, including, but not limited to, new construction B Taxable Real Property — Taxable real property shall be as defined in the Texas Property Tax Code and shall not include personal property as defined in the Code C Base Year — The base year for determining increased value shall be the taxable real property value assessed the year in which the Tax Abatement Agreement is executed SECTION III. That the City, through its City Council, after conducting the above - mentioned public hearing and having heard such evidence and testimony, makes the following findings and determinations based on the evidence and testimony presented to it A That the public hearing on the adoption of the reinvestment zone has been properly called, held, and conducted in accordance with §312 201 of the Act and all other applicable laws, and that notice of such hearing has been published as required by law and mailed to the pre- siding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone as required by law, and B That prior to holding the public hearing, the City has adopted, by resolution, the guidelines and criteria governing tax abatement agreements by adopting a City of Denton Tax Abate- ment Policy and the City has elected to participate in tax abatement, and Page 2 C That the City had jurisdiction to hold and conduct the public hearing on the creation of the proposed the reinvestment zone, pursuant to chapter 312 of the Act, and D That the boundaries of the reinvestment zone shall be the area described in the metes and bounds description attached hereto as Exhibit "A" and as shown on the diagram as the area outlined in red attached hereto as Exhibit "B" and being approximately 163 acres near High- way U S 380 and Geeslmg Road in the corporate limits and extraterntonal junsdiction of the City of Denton, Texas, such Exhibits "A" and "B" being incorporated and made a part of this ordinance as if written word for word herein, and E That the creation of the reinvestment zone for commercial/industrial tax abatement with the improvements expected to be developed by United Copper Industries and other similar in- dustrial and commercial business enterprises would be of benefit to the City and to the land to be included in the zone, with the boundaries as described in Exhibit "A," after the expira- tion of the tax abatement agreement entered into under §312 204 of the Act, and the im- provements sought are feasible and practical, and F That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation of a reinvestment zone, as set forth in §312 202 of the Act, in that it is, "reasonably likely, as a result of the designation, to contribute to the retention or expan- sion of primary employment or to attract major investment in the zone that would be a bene- fit to the property and that would contribute to the economic development of the Municipal- ity," and G That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation of a reinvestment zone as set forth in the Denton Policy for Tax Abatement and the expected improvements in the boundaries of the zone are expected to en- hance significantly the value of all taxable real property located within the reinvestment zone SECTION IV. That pursuant to §312 201 of the Act, the City, through its City Council, hereby creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area described by the metes and bounds description in Exhibit "A" attached hereto and as shown on Exhibit `B" attached hereto and such reinvestment zone is hereby designated and shall hereinafter be designated as Reinvestment Zone No I, City of Denton, Texas SECTION V. That Reinvestment Zone No I shall be effective as of January 1, 1999, and shall terminate five years from that date, on December 31, 2004, unless earlier terminated by action of the City Council or extended in accordance with §312 203 of the Act SECTION VI. That to be eligible for tax abatement, a commercial/industrial project shall A Be located wholly within the zone established herein, B Meet the requirements of the Denton Tax Abatement Policy, Page 3 C Not include property that is owned or leased by a member of the City Council of the City of Denton, or by a member of the Planning & Zoning Commission, D Conform to the requirements of the City's zoning ordinance and all other applicable laws and regulations, and E Have and maintain all land located within the designated zone, appraised at market value for tax purposes SECTION VII. That written tax abatement agreements with property owners located within the zone shall provide the terms regarding duration of exemption and share of taxable real property for taxation as approved hereunder, as shown below A Duration of exemption from two years to ten years depending on the value of the structure and personal property in accordance with the Denton Tax Abatement Policy, beginning with and including January 1, 1999, and B Share of taxes abated — 25% of taxes on the total value of appraised improvements which are added, provided, however, nothing herein shall prevent any other taxing unit that includes in its boundaries real property that is included in the reinvestment zone from entering into a tax abatement agreement with a different share of taxes abated on the total value of appraised improvements which are added, in accordance with the requirements of chapter 312 of the Act SECTION VIII. That any written agreements authorized under this ordinance must in- clude provisions for A Listing the kind, number, and location of all proposed improvements of the property, B Access to and authorized the inspection of the property by municipal employees to ensure that the improvements or repairs are made in accordance with the specifications and condi- tions of the agreements, C Limiting the uses of the property, consistent with the general purpose of encouraging devel- opment or redevelopment of the zone during the period that property tax exemptions are in effect, D Recapturing of property tax revenues lost as a result of the agreement if the owner of the property fails to make the improvements or repairs as provided by the agreement, E Containing each term agreed to by the owner of the property, F Requiring the owner of the property to certify annually to the governing body of each taxing unit that the owner is in compliance with each applicable term of the agreement, Page 4 G Providing that the governing body of the municipality may cancel or modify the agreement if the property owner fails to comply with the agreement, H Provide that the owner of the property enter into a long-term agreement of not less than five years in duration to receive its electrical utility service from the City of Denton Municipal Utilities, and Contain any additional terms and conditions which the City Council deems are necessary, in accordance with §312 205 of the Act, and that are negotiated with the owner of the property Provided, however, nothing herem shall prevent other taxing units, who include in their boundaries real property within the reinvestment zone, from negotiating terms and conditions that are different than any Municipal tax abatement agreement, so long as the mandatory terms and conditions required by §312 205 of the Act are included SECTION IX. That the City Council further directs and designates the City Manager and the Director of Economic Development as liaisons for communication with regard to all matters pertaining to the Zone, including, without limitation, the development of the amendment of the current Denton Tax Abatement Policy, the negotiation of tax abatement agreements with industries, commercial enterprises, and other businesses eligible for tax abatement under the Tax Abatement Policy and for communication with other taxing entities and the Joint Tax Abatement Committee SECTION X. That all ordinances or parts of ordinances in force when the provisions of this ordinance became effective which are inconsistent or in conflict with the terms or provisions contained in this ordinance are hereby repealed to the extent of any such conflict SECTION XI. That if any section, paragraph, clause, or provision in this ordinance, or application thereof to any person or circumstance is held invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, clause, or provision shall not affect any of the re- maining portions of this ordinance SSACTION XII. It is hereby found, determined, and declared that a sufficient written no- tice of the date, place, hour, and subject of the meeting of the City Council at which this ordi- nance was adopted was posted and placed and conveniently accessible at all times to the general public at the City Hall of the City for the time required by law, preceding this meeting, as re- quired by the Open Meetings Act, TEX GOWT CODE ch 551, and that this meeting was open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered, and formally acted upon The City Council further rati- fies, approves, and confirms such written notice and contents posting thereof The City Council further finds that a quorum was present at such meeting SECTION XIII. That the contents of the notice of public hearing, which hearing was held before the City Council and before the passage of this ordinance on February 3, 1998, the publication of said notice is hereby ratified, approved, and confirmed Page 5 SSgCTION XIV. That this ordinance shall become effective immediately upon its pas- sage and approval PASSED AND APPROVED this the ge day of / (.� 11998 ATTEST JENNIFER WALTERS, CITY SECRETARY BY APPR ED A TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY BY \\CH LGL\V0L1\shmed\depNALWur Dmumenb\0rdin n .keinveS nOt zone i dM JAC ER, MAYOR Page 6 "EXHIBIT A" LEGAL DESCRIPTION REINVESTMENT ZONE NO I REAL PROPERTY METES AND BOUNDS ALL that certain lot, tract or parcel of land lying and being situated in the City and County of Denton, State of Texas, being part of the T Living Survey, Abstract 729 and the M. Forrest Survey, Abstract Number 417 and being more particularly described as follows. BEGINNING at the southwest corner of 90.6566 acre tract described as Tract III by Special Warranty deed conveyed to Albertson's Incorporated recorded in Volume 3205, Page 214 of the Real Property Records of Denton County, Texas, said point also lying on the north line of U.S Highway 380, THENCE South a distance of 63 feet to the centerline of said U S Highway 380, THENCE Northeasterly along the centerline of U S Highway 380 a distance of 4,303 feet to a point for corners THENCE North passing at 63 feet the north right-of-way line of U.S Highway 380 and continuing along the east line of a 28 acre tract, conveyed to D C Bullard, at ux by deed recorded in Volume 432, Page 149 of the Deed Records of Denton County, Texas, continuing North and passing the northeast corner of said Bullard tract and continuing North to a point in the centerline of Fishtrap Road, THENCE Westerly and northwesterly along the centerline courses of Fishtrap Road a distance of 3,210 feet to a point for corner, said point being the intersection of the centerline of Fishtrap Road and the centerline of the Union Pacific Railroad; THENCE Southwesterly along the centerline of the Union Pacific Railroad a distance of 1,710 feet to a point for corner, THENCE South passing at 64 feet the most northerly northwest corner of said 90 6566 acre Albertson's tract and continuing a total distance of 240 feet to a point for corner, said point being the northwest corner of a 1 457 acre SAVE & EXCEPT tract described as Tract II in said Albertson's deed recorded in Volume 3205, Page 214 R.P.R.D.C.T.; THENCE Southeasterly along the northeast line of said 1.457 acre tract a distance of 564 feet to a point for corner, said point being the southeast corner of said 1.457 acre tract; THENCE South along the west line of a 2 114 acre tract described as Tract 1 in said Albertson's deed recorded in Volume 3205, Page 214 R P R D C T a distance of 662 feet to the southwest corner of said 2.114 acre tract, THENCE West a distance of 69 feet to the most southerly northwest corner of said 90 6566 acre Albertson's tract; THENCE South a distance of 185 feet to the POINT OF BEGINNING and containing 163 acres of land 1 23-98 EXHIBIT "B" W 9 o q vF 9 o � vi ❑ o ° po d o 4 0 op 0 o po 00 C " 1 x rA.11