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HomeMy WebLinkAbout2017-05-09 Agenda with BackupCit of Denton City Hall Y 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Tuesday, May 9, 2017 2:00 PM Work Session Room After determining that a quorum is present, the City Council of the City of Denton, Texas will convene in a Work Session on Tuesday, May 9, 2017 at 2:00 p.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items will be considered: 1. Citizen Comments on Consent Agenda Items This section of the agenda allows citizens to speak on Consent Agenda Items only. Each speaker will be given a total of three (3) minutes to address any items he/she wishes that are listed on the Consent Agenda. A Request to Speak Card should be completed and returned to the City Secretary before Council considers this item. 2. Work Session Reports A. ID 17-587 Receive a report, hold a discussion, and provide staff direction regarding Shiloh Village and the concept of community housing (co -housing). Attachments: Exhibit 1 - Shiloh Village Presentation Exhibit 2 - Staff Presentation B. ID 17-589 Receive a report, hold a discussion, and give staff direction regarding redevelopment of the property at 101 S. Locust Street (Wells Fargo Building). Attachments: Exhibit 1 - Wells Fargo actual site Exhibit 2 - Wells Fargo large site Exhibit 3 - Wells Fargo site original concept Exhibit 4 - Presentation Following the completion of the Work Session, the City Council will convene in a Closed Meeting to consider specific items when these items are listed below under the Closed Meeting section of this agenda. The City Council reserves the right to adjourn into a Closed Meeting on any item on its Open Meeting agenda consistent with Chapter 551 of the Texas Government Code, as amended, or as otherwise allowed by law. 1. Closed Meeting: A. ID 17-621 Consultation with Attorneys - Under Texas Government Code Section 551.071 regarding legal issues Consultation, discussion and deliberation regarding legal matters associated with the City's legal and contractual relationship with the Denton Housing Authority including, but not limited to, Ojala Holdings and the Denton Housing Authority's requests for resolutions showing "no objections" on two 4% Housing Tax Credit housing developments, where discussion of these legal matters in an open meeting City ofDenton Page 1 Printed on 51512017 City Council Meeting Agenda May 9, 2017 would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. Following the completion of the Closed Meeting, the City Council will convene in a Special Called Meeting to consider the following items: 1. CONSENT AGENDA Each of these items is recommended by the Staff and approval thereof will be strictly on the basis of the Staff recommendations. Approval of the Consent Agenda authorizes the City Manager or his designee to implement each item in accordance with the Staff recommendations. The City Council has received background information and has had an opportunity to raise questions regarding these items prior to consideration. Listed below are bids, purchase orders, contracts, and other items to be approved under the Consent Agenda (Agenda Items A — D). This listing is provided on the Consent Agenda to allow Council Members to discuss or withdraw an item prior to approval of the Consent Agenda. If no items are pulled, Consent Agenda Items A — D below will be approved with one motion. If items are pulled for separate discussion, they may be considered as the first items following approval of the Consent Agenda. A. ID 17-167 Consider adoption of an ordinance approving an Advanced Costs Reimbursement Agreement between Epic Development, Inc., Columbia Medical Center of Denton Subsidiary, L.P., and the City of Denton regarding reimbursement to the City for removal of unauthorized obstructions from a transmission line easement; and providing effective date. The Public Utilities Board recommends approval (6-0). Attachments: Ordinance Advanced Costs Reimbursement Agreement Final MCH CC 05092017 FINAL Cost Reimbursement Agreement - FINAL w exhibits - 04212017 B. ID 17-585 Consider approval of a resolution of the City Council of the City of Denton, Texas, regarding the proposed site for the construction, expansion, and use of an electric power transmission/distribution substation generally located in the northeast corner of East Sherman Drive and Hartlee Field Road, in the extraterritorial jurisdiction of the City of Denton, Denton County, Texas, and part of Denton Municipal Electric's service territory; and providing an effective date. [Hartlee Field Substation] Attachments: DME Substation Locations Map.pdf Hartlee Field Options Map.pdf Revised Yellow Site Option.pdf Project Information Sheet.pdf Hartlee Field Road Substation Resolution - Signed by Legal C. ID 17-603 Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas, and the Day of the Dead Festival; providing for the expenditure of funds; and providing for an effective date. Attachments: Exhibit 1 - Ordinance and Agreement D. ID 17-618 Consider adoption of an ordinance of the City of Denton, Texas, concurring with the City ofDenton Page 2 Printed on 51512017 City Council Meeting Agenda May 9, 2017 City Manager's reorganization of the City of Denton's administrative departments and divisions; and providing an effective date. Attachments: Exhibit 1 - Org Chart Exhibit 2 - Ordinance 2. ITEMS FOR INDIVIDUAL CONSIDERATION A. ID 17-579 Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2016-2017 Budget and Annual Program of Services of the City of Denton to allow for adjustments to the General Fund of three hundred seventy-five thousand dollars ($375,000) for the purpose of funding fencing at City Cemeteries, Downtown Reinvestment Fund of twenty thousand dollars ($20,000) for the purpose of funding additional grant applications, the Library Donation Fund of twenty thousand dollars ($20,000) for the purpose of funding the purchase of replacement furniture, equipment and supplies; declaring a municipal purpose; providing a severability clause, an open meetings clause and effective date. Attachments: Exhibit 1 - Ordinance.pdf B. ID 17-575 Consider adoption of an ordinance approving a grant application from John Withers, representing Withhick, LLC, from the Downtown Reinvestment Grant Program not to exceed $25,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (7-0). Attachments: Exhibit 1 - Ordinance and Agreement Exhibit 2 - 112 W. Oak Presentation C. ID 17-576 Consider adoption of an ordinance approving a grant application from Tim Beaty, representing 421 E. Oak, from the Downtown Reinvestment Grant Program not to exceed $25,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (7-0). Attachments: Exhibit 1 - 421 E. Oak Ordinance and Agreement Exhibit 2 - 421 E. Oak Grant presentation 050917 D. ID 17-611 Consider approval of a resolution of the City of Denton, Texas evidencing no objection to the proposed new construction of The Standard at MedPark Station, L.P.; and authorizing such other actions necessary or convenient to carry out this resolution; and providing for an effective date. Attachments: Exhibit 1 - Letter from DHA 05-04-17 Exhibit 2 - Memo from 05-01-17 Exhibit 3 - Site Location Map Exhibit 4 - Site Plan Exhibit 5 - Standard at MedPark Resolution E. ID 17-612 Consider approval of a resolution of the City of Denton, Texas evidencing no objection to the proposed new construction of The Hudson at MedPark Station, L.P.; and authorizing such other actions necessary or convenient to carry out this resolution; and providing for an effective date. City ofDenton Page 3 Printed on 51512017 City Council Meeting Agenda May 9, 2017 Attachments: Exhibit 1 - Letter from DHA 05-04-17 Exhibit 2 - Memo from 05-01-17 Exhibit 3 - Site Location Map Exhibit 4 - Site Plan Exhibit 5 - Hudson at MedPark Resolution F. ID 17-624 Consider adoption of an ordinance of the city of Denton, Texas amending certain provisions of chapter 1 and chapter 17 of the Denton code of ordinances, the Denton property maintenance code, including sections 1-11, 17-2, 17-37, 17-42, 17-112, 17-121, and 17-124 and adding section 17-3 to provide for code enforcement officer authority; providing for a severability clause, savings clause, and an effective date. Attachments: Exhibit 1 Ordinance 3. CONCLUDING ITEMS A. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the City Council or the public with specific factual information or recitation of policy, or accept a proposal to place the matter on the agenda for an upcoming meeting AND Under Section 551.0415 of the Texas Open Meetings Act, provide reports about items of community interest regarding which no action will be taken, to include: expressions of thanks, congratulations, or condolence; information regarding holiday schedules; an honorary or salutary recognition of a public official, public employee, or other citizen; a reminder about an upcoming event organized or sponsored by the governing body; information regarding a social, ceremonial, or community event organized or sponsored by an entity other than the goveming body that was attended or is scheduled to be attended by a member of the goveming body or an official or employee of the municipality; or an announcement involving an imminent threat to the public health and safety of people in the municipality that has arisen after the posting of the agenda. CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2017 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1 -800 -RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. City ofDenton Page 4 Printed on 51512017 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEWON File #: ID 17-587, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Development Services CM: Todd Hileman Date: May 9, 2017 SUBJECT Receive a report, hold a discussion, and provide staff direction regarding Shiloh Village and the concept of community housing (co -housing). BACKGROUND In May 2016, Pat Smith, with Serve Denton, shared a conceptual proposal with the Planning Division to build housing units (300 square feet dwelling unit area) to address homelessness of veterans called Shiloh Village. The proposed site is on an approximately 2.5 acre site located at the southwest corner of Mingo Road and Old North Road. During this meeting, it was determined that additional research was warranted as the proposed housing units do not meet the minimum floor area requirement of 900 square feet for single family and 500 square feet for multi -family dwellings as specified in the Denton Development Code (DDC). Subsequently, Pat Smith and the Planning Division have held several follow up meetings to share updated information on the proposed project and the concept of community housing (co -housing). Coho/US, a national non-profit organization, defines co -housing as "an intentional community of private homes clustered around shared space." Shared spaces typically feature a common house, which may include a large kitchen and dining area, laundry, and recreational spaces. Shared outdoor space may include parking, walkways, open space, and gardens. Neighbors also share resources such as tools and lawnmowers. Households have independent incomes and private lives, but neighbors collaboratively plan and manage community activities and shared spaces. The legal structure is typically an HOA, Condo Association, or Housing Cooperative. Community activities feature regularly -scheduled shared meals, meetings, and workdays. Co - housing facilitates the formation of special interest clubs, organization of child and elder care, and carpooling. Initially, the Planning Division considered co -housing as a development type that could be defined as a separate residential land use for the project. However, after further research and with help from Ty Albright, a local expert on the concept of co -housing and a Board member of the Co -housing Association of the United States, it was discovered that no city in the United States categorizes co -housing development as a separate land use. Most cities categorize co -housing developments as single-family or multi -family dwellings. Because the proposed housing units at Shiloh Village do not meet the minimum floor area requirement by the DDC and do not meet the definition of a dwelling unit (having a full bathroom and a kitchen), they cannot be considered as single-family or multi -family dwellings. A code amendment would be necessary to accommodate the proposed project, creating a way to include the proposed housing units, encapsulating the co -housing City of Denton Page 1 of 3 Printed on 5/5/2017 powered by I._eggl;>karI File M ID 17-587, Version: 1 concept, and providing associated development standards. OPTIONS 1. Approve the project as part of an Overlay District. Overlay Districts are established to protect and enhance certain specific lands and structures which, by virtue of their type or location, have characteristics which are distinct from lands and structures outside such special districts. The Overlay District will include a purpose statement, land uses permitted, and design standards and requirements. As part of this option, a new land use category called "co -housing" will added. Co -housing is defined as "a community of sleeping units or dwelling units clustered around shared spaces, developed with the following: • A common house that shall include at a minimum a large kitchen, dining area, laundry facilities, and indoor gathering spaces; • Shared outdoor spaces that shall include at a minimum parking spaces, walkways, open space, a community garden, and a structure to store shared equipment; and • A legal Association with the purpose of establishing a charter for a co -housing community. Co -housing is not a multi -family development, collegiate housing, boarding house, fraternity, or sorority. 2. Amend the DDC to allow for Planned Development Districts. This district is intended to provide an alternative zoning district and development process to accommodate substantial development for residential, commercial, professional, recreational, industrial or other activities, including combinations of uses appropriately requiring flexibility under controlled conditions, not otherwise attainable under conventional base zoning districts. 3. Add a commercial land use in Subchapter 35.5 that would allow sleeping units as a component of the use. Similar to a hotel, but allowing individuals to occupy the units for an undetermined amount of time. 4. Amend the DDC to reduce the minimum floor area requirement for multi -family dwellings to 300 square feet. This option would require for the proposed housing units to have a full bathroom and a kitchen. RECOMMENDATION Staff recommends option 41 to create a Special Purpose Overlay District. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Related Goal: Economic Development 3.4 Encourage development, redevelopment, recruitment, and retention City of Denton Page 2 of 3 Printed on 5/5/2017 powered by I._ag;gl;>karI File M ID 17-587, Version: 1 EXHIBITS 1. Shiloh Village Presentation 2. Staff Presentation Respectfully submitted: Munal Mauladad Director of Development Services Prepared by: Ron Menguita, AICP Long Range Planning Administrator City of Denton Page 3 of 3 Printed on 5/5/2017 powered by I._ag;gl;>karI 0 - ct a cc W ci 0 ci L0J �I L0J rr ME n • • • Co ` b- s s • ,r • K fu • bn E Lo- uj ol a) E 0 i I UJ E OU bp 0 n • • • Co ` b- s s • ,r • K fu • ME Il s s � s ## # ## s 0' C, s. •:3 s • .. ##. ## #, s <0## s � s s o Il s � s 0. # s I ME c 4-j D 0 I rr ME m m m = V) CL 0 5 CL 4-j O > 0 4-J -0 O0C: O 0 -,e = U m 4- 0 I rr ME m m m I I I rr ME E 4-J o E- o L- 0 0 E E4-J 0 U — bn =3 ta C- o =3 U U u 4-J 0 4-J E4-J 0 4-1 Eis tL o o u ,u E bn 4-J . C- 4 -J M 4-J 4-J Lu (A u U LL I M. LAO mm - I X;W140 lNTVVJ:,�VAV IGIV� �9VTIV% , , I lii 'j z 5 1111112 AJ C) Vy M ......... ....... . ........ ........ ......... ......... ......... . ......... . ........ . ......... ......... 10 ..... ........ .. - I X;W140 lNTVVJ:,�VAV IGIV� �9VTIV% , , I lii LAO W LAO K 2 E=k ZZi 0 LU cn T- LLJ C) UJ -T- � 1 ------------- LLJ 0 (f) 0 D cz 0 r -v LLJ C) LLJ LAO K 2 E=k ZZi pni rr ME d r4 -Fo u .0 4-J 4-J 4-J QL (1) b.0 0 C 4-- c 4-J 4-J b.0 > 0 o L- o QL r4 r� QL (1) c LIO C 4-- c buo aj.2 a) o 4-J (a 4-1 u 4-J (a 0) bdo bdo > _0 QL 4-J > 0 u > 0 u E m to tw u 0 E ±� iz U V-4 r6 � .1 '0 C, 4 � - ',j .4 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEN' `IN File #: ID 17-589, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development DCM: Bryan Langley Date: May 9, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding redevelopment of the property at 101 S. Locust Street (Wells Fargo Building). BACKGROUND Jack Bell Properties has acquired the four properties associated with the Wells Fargo bank building at the southeast corner of Locust and Hickory Streets: the tower/bank lobby, the ATM lot, and two parking lots. The developer is considering three redevelopment scenarios: 1. Wells Fargo Building: This option contemplates remodeling the existing building only, to include offices in the basement and on floors 1-3 and 7, luxury apartments on floors 4-6, and an event center on floor 8. 2. Wells Fargo Actual Site: This option would include the existing Wells Fargo building and lots only. a. remodeling the existing building to include offices in the basement and on floors 1-3 and 7, luxury apartments on floors 4-6, and an event center on floor 8 b. a 70-80 room boutique hotel at the corner of Austin and Hickory streets to include a restaurant/bar, and meeting rooms; because of the smaller site, the hotel would be taller and the pool would be indoors c. 48 units of multifamily housing in a 4-5 story building; an aerial easement over Austin Street will be required to build a sky bridge (with apartment units above it) over Austin Street to the proposed parking garage d. a 3- to 4 -story parking garage attached to the south side of the hotel to provide parking for Jack Bell Properties sites only 3. Wells Fargo Large Site: This option encompasses the existing Wells Fargo building and lots along with leasing the Williams Trade Square site owned by the City of Denton. Details include: a. remodeling the existing building to include offices in the basement and on floors 1-3 and 7, luxury apartments on floors 4-6, and an event center on floor 8 b. an 80-100 room boutique hotel at the corner of Austin and Hickory streets to include an outdoor pool, restaurant/bar, and meeting rooms c. 164 units of multifamily housing, including three stories over the proposed parking garage; an aerial easement over Austin Street will be required to build apartments over the proposed park between Walnut and Mulberry streets d. 3- to 5 -story parking garage on the Williams Trade Square site to provide parking for the entire City of Denton Page 1 of 5 Printed on 5/5/2017 powered by I-eg;gl;>karI File M ID 17-589, Version: 1 redevelopment, including 102 spaces to replace the current free public parking on the site e. Approximately 10,000 square feet of retail, restaurant, or office space on the Hickory Street - facing first floor of the parking garage f. abandonment of Austin Street for the construction of a park to be owned by the City and maintained by the developer Jack Bell Properties has the following requests related to the redevelopment: • Option to lease the Williams Trade Square site • Boundary line adjustment between the Wells Fargo parking lots and Williams Trade Square • Granting of an aerial easement over Austin Street (a license to build across Austin and Walnut streets was issued by the City to the property owner in 1971 for a term of 50 years to facilitate the concept for the original project, see Exhibit 3 for illustration; City staff is researching the details and implications of this license) • If Austin Street is made into a park, the City will own it and the developer will maintain it in lieu of park fees Note on downtown residential inventory and population: As of April 30, 2017, there are 527 multifamily units downtown. There are also 24 lofts above businesses and 15 townhomes. The estimated residential population in the Downtown Implementation Plan Area is 2,500, which includes residents of multifamily, lofts, townhomes, and single family homes. FISCAL INFORMATION Current Conditions for Williams Trade Square: • The Denton Central Appraisal District's 2016 valuation of Williams Trade Square is $432,000. • In FY 16-17, the City of Denton will receive annual revenue of $15,330 from the lease of parking spaces in Williams Trade Square to Wells Fargo Bank and Denton County. • Williams Trade Square may be rented for special events at the rates of $50/6 hours, $100/12 hours, $150/24 hours, and a multi -day maximum of $450. To date in FY 16-17, one event has rented the site for a fee of $300; no other events have been booked. Current Conditions for Wells Fargo and Preliminary Analysis for Redevelopment Current Valuta and Tarr Rne nemule of the Wells FargoIP'ro�perties ATM 32829 189,0�47 $1,292 Pairkin,g 32837 $250^,897 '$1,,714 Pairlkiin,g 32844 $2740260 '$1,,874 8Uiilldiin,g 35443 '' ,70,01,0B001 5,284 1 Tet it Valuation $4,4114,2104 1 $30,164 Denton, 2016117 tax rate.- .683340 The tables below shows the actual or estimated values of structures associated with the Wells Fargo Actual Site City of Denton Page 2 of 5 Printed on 5/5/2017 powered by L.ag;gl;>karI File #: ID 17-589, Version: 1 and the Wells Fargo Large Site options, along with the estimated annual tax revenue. This preliminary analysis is based on information provided by the developer and gathered by City Economic Development staff. Citv Tax Revenue IEstini or Wells Fargo Actual Site (Grand Total: 1 $292„3111 1 Assermpbons 2G 16 IDeirntoirn CAD assessed allLue irnert estiiirxnatiin,g aim iincrease dUe to assluimptiie+irn of iinteriior-oMy rernodell 2 based on Denton CAD average for downtown new i use ($95/sff)__ s Ifaased on Hotell Indii,go comp from McLennan CHID ($140/s 4 based on Tarrant CAD gairage values ($201/sff) 5 Ibased on City 1piro forma for Errnllaassy SLuiites (project (75 rooir ns , $150/nii,ght x 60% OCCUpaney irate) 6 based on $11 in ainnLuall sales City of Denton Page 3 of 5 Printed on 5/5/2017 powered by L.eg]I>karI Proposed apartments ad va�loirerri 2 � .. Totalsw (Grand Total: 1 $292„3111 1 Assermpbons 2G 16 IDeirntoirn CAD assessed allLue irnert estiiirxnatiin,g aim iincrease dUe to assluimptiie+irn of iinteriior-oMy rernodell 2 based on Denton CAD average for downtown new i use ($95/sff)__ s Ifaased on Hotell Indii,go comp from McLennan CHID ($140/s 4 based on Tarrant CAD gairage values ($201/sff) 5 Ibased on City 1piro forma for Errnllaassy SLuiites (project (75 rooir ns , $150/nii,ght x 60% OCCUpaney irate) 6 based on $11 in ainnLuall sales City of Denton Page 3 of 5 Printed on 5/5/2017 powered by L.eg]I>karI File #: ID 17-589, Version: 1 City Tax Re,venue r ite Exhibit 2 - IIIIIIII JJJ JJJJ JJJJJJJpJJJJJJJJJJJJJJJJJJJJJJJJJJJJ Exhibit 3 - Wells Fargo Site Original Concept Exhibit 4 - Presentation ProposedProposed t Proposed parking garage ad valorem 4 Proposed hot6l restauraint sales tax 0.r (Grand Total: 1 $4118,,4811 1 1 21016 IDentoin CAD assessed valkie not estiini an increase dune to assLurnptiion of iiinteriioir-oMy iremodell `Ibased Asn Denton CAD average for downtown new mixed Use ($95/sff) 3 16ased oin IHotell Iindigo cornp ffroirn IMcLeininan CAD ($1401/0) 4 based oin Tarrant CAD ,garage vM ues ($20/sff) 5 (eased urn CiitV pro forma for IEirxu'bassy SLuiites (project (90 rooirns , 150/might x 601% occupancy irate) 6 based oin $1 rnid lion in ainnLual sales� OPTIONS 1. Initiate discussions regarding the lease of Williams Trade Square 2. Maintain status quo regarding Williams Trade Square STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Economic Development Related Goal: 3.4 Encourage development, redevelopment, recruitment, and retention EXHIBITS Exhibit 1 - Wells Fargo Actual Site Plan Exhibit 2 - Wells Fargo Large Site Plan Exhibit 3 - Wells Fargo Site Original Concept Exhibit 4 - Presentation Respectfully submitted: Caroline Booth City of Denton Page 4 of 5 Printed on 5/5/2017 powered by I._ag;gl;>karI File M ID 17-589, Version: 1 Director of Economic Development City of Denton Page 5 of 5 Printed on 5/5/2017 powered by I._ag;gl;>karI SVX31 NO1NK IP2e-pati rope) o,zo-595 �o�e� N I 1� b N a w 1 IS ®� b S M oz94 sdE iooi N:s EIC solu'aez door �s izs S1�311H�a`d � < p -1�311H�3V� N 1dVWW3�'dVW . w :NOd SONIMMI a3SOdOUd r r � oc ww Oo c �� oZ d d� n - F \r Z Q � 133fi1S NI1Sf1V m�> w w r m F- D Z Q U Z Y 133a1S 1Sf100-i12 r Z wU �¢ � m Fm ZN LU F C7 u, Z 3LL z o < Z d wr mU s<v w¢ i r w 0 0 Z Y a IIIIIII�IIIIIIII lum�i MINE -------------------------------------------- --------------------------------------- i U Z Y i33ais lsnoo-i F- rcnLu 3tLuL Z �9: w 0 0 Z Y a IIIIIII�IIIIIIII lum�i MINE -------------------------------------------- --------------------------------------- i U Z Y i33ais lsnoo-i F- City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN' O File #: ID 17-621, Version: 1 Legislation Text Agenda Information Sheet SUBJECT Consultation with Attorneys - Under Texas Government Code Section 551.071 regarding legal issues Consultation, discussion and deliberation regarding legal matters associated with the City's legal and contractual relationship with the Denton Housing Authority including, but not limited to, Ojala Holdings and the Denton Housing Authority's requests for resolutions showing "no objections" on two 4% Housing Tax Credit housing developments, where discussion of these legal matters in an open meeting would conflict with the duty of the City's attorneys to the City of Denton and the Denton City Council under the Texas Disciplinary Rules of Professional Conduct of the State Bar of Texas. City of Denton Page 1 of 1 Printed on 5/5/2017 powered by I-eg;gl;>karI City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEN' `IN File #: ID 17-167, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Denton Municipal Electric CM/ ACM: Todd Hileman Date: May 9, 2017 SUBJECT Consider adoption of an ordinance approving an Advanced Costs Reimbursement Agreement between Epic Development, Inc., Columbia Medical Center of Denton Subsidiary, L.P., and the City of Denton regarding reimbursement to the City for removal of unauthorized obstructions from a transmission line easement; and providing effective date. The Public Utilities Board recommends approval (6-0). BACKGROUND Texas Municipal Power Agency (TMPA) owns rights to an easement located on property owned by Medical City Healthcare, formally known as Denton Regional Medical Center. In a study done by Power Engineers, Inc., for the Pockrus/Spencer Substation CIP Project, it was discovered the TMPA transmission lines located within the easement was in violation of National Electric Safety Code (NESC) minimum vertical clearance standards. Although the line is owned by TMPA, Denton Municipal Electric (DME) has a Transmission Operator, Maintenance, and Construction Services Agreement in place to perform all necessary operations for the TMPA Denton area transmission system assets. Because the easement and line are located on property owned by Medical City Healthcare, Medical City Healthcare is responsible for the costs associated with bringing the line into compliance. DME staff has met with Medical City Healthcare to discuss this issue and Medical City Staff has indicated that they understand they are financially responsible for the work to be done. The work will be begin in mid to late May and will take approximately four weeks to complete. The work consists of removing 4,400 cubic feet of dirt, moving the dirt to another site, and grading the land. The work will be performed by Mann Robinson at the cost of $88,100 as a change order to the existing contract awarded under City of Denton Ordinance 2013-024. As this was an unplanned expense for the hospital, DME and Medical City have agreed to terms of a payment plan that will allow Medical City to payout the $98,000 in installments of $1,633.34 for 60 months. Staff will present to Council, information related to the TMPA Operations, Maintenance, and Construction Services Agreement, the connection to the Capital Improvement Program, and the overall situation related to the grading work to be done at Medical City Healthcare. RECOMMENDATION City of Denton Page 1 of 2 Printed on 5/5/2017 powered by I-eg;gl;>karI File #: ID 17-167, Version: 1 PUB recommends approving the ordinance and Advanced Costs Reimbursement Agreement as presented (6-0). ESTIMATED SCHEDULE OF PROJECT DME would like to have line grading done before June to avoid summer outages. EXHIBITS 1. Ordinance 2. Presentation 3. Advanced Costs Reimbursement Agreement Respectfully submitted: Phil Williams, General Manager, DME Prepared by: Elizabeth Ruiz Key Accounts & Energy Programs Administrator City of Denton Page 2 of 2 Printed on 5/5/2017 powered by L.ag;gl;>karI ORDINANCE NO. 2017 - AN ORDINANCE APPROVING AN ADVANCED COSTS REIMBURSEMENT AGREEMENT BETWEEN EPIC DEVELOPMENT, INC., COLUMBIA MEDICAL CENTER OF DENTON SUBSIDIARY, L.P., AND THE CITY OF DENTON REGARDING REIMBURSEMENT TO THE CITY FOR REMOVAL OF UNAUTHORIZED OBSTRUCTIONS FROM A TRANSMISSION LINE EASEMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton deems it is in the public interest and serves a municipal and public purpose to enter into an Advanced Costs Reimbursement Agreement with Epic Development, Inc., a Delaware corporation, and Columbia Medical Center of Denton Subsidiary, L.P., a Texas limited partnership, regarding reimbursement to, the City for the removal of unauthorized obstructions from a transmission line easement; NOW, THEREFORE; SECTION 1. City Council finds that the Advanced Costs Reimbursement Agreement between Epic Development, Inc., a Delaware corporation, and Columbia Medical Center of Denton Subsidiary, L.P., a Texas limited partnership, and the City serves a valid municipal and public purpose and is in the public interest. SECTION 2. The City Manager, or his designee, is authorized to execute the Advanced Costs Reimbursement Agreement between Epic Development, Inc., a Delaware corporation, and Columbia Medical Center of Denton Subsidiary, L.P., a Texas limited partnership, and the City, in the form substantially similar to the attached Exhibit "A". The City Manager is authorized to carry out the City's rights and duties under the Advanced Costs Reimbursement Agreement including authorization for the expenditure of funds provided for in the same. SECTION 3. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the day or 2017. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY om APPROVED AS TO LEGAL FORM: AARON LEAL, INTER Y ATTORNEY BY: E I FEMO t,., � � N A � r- 0 0 ^ a%mo • W a o � V � t � o O 4° 0 ywa pry ;L V19=3171 L8713=1H p- r. S VOZ-1115Z—VIIS 4�. as m vfli ply' :14 & Lgv A z 0 Hi, LU 0 jLj dVO(3 b fir] 0,9 MA 6 z VIS 0 0 0 CL z m O � o ADVANCED COSTS REIMBURSEMENT AGREEMENT THIS ADVANCED COSTS REIMBURSEMENT AGREEMENT (the "Agreement") is by and between the EPIC DEVELOPMENT, INC. a Delaware corporation, ("EPIC"), COLUMBIA MEDICAL CENTER OF DENTON SUBSIDIARY, LP, a Texas limited partnership, doing business as MEDICAL CITY DENTON ("MEDICAL CITY DENTON"), and the CITY OF DENTON, a Texas home -rule municipal corporation, ("DENTON"). RECITALS WHEREAS, the Texas Municipal Power Agency ("TMPA") owns, and the CITY maintains, under a separate agreement with TMPA, a 138Kv electric transmission line ("Transmission Line") located on an property owned by EPIC and which is burdened with an easement for the location of the Transmission Line with the same being depicted on the attached Exhibit "A" ("Property"); and WHEREAS, the easement for the Transmission Line was granted by EPIC to TMPA on November 29, 1993 and recorded in the Denton County Real Property Records under Document No. 94-R0007256 ("Easement" and a copy of the same is attached as Exhibit "B"); and WHEREAS, the Easement states that "Grantee shall have the right to remove or prevent the construction of any or all buildings, structures and obstructions within such easement. If any such buildings, structures or obstructions are hereafter constructed or permitted by Grantor to exist within the easement without prior written consent of Grantee then Grantee shall have the right to remove the same and Grantor agrees to pay to Grantee the reasonable cost of such removal."; and WHEREAS, the required ground clearance of the Transmission Line, as set by the National Electric Safety Code, has been compromised by the unauthorized dumping of dirt within the boundaries of the Easement as depicted on Exhibit "C"; and WHEREAS, the CITY has notified MEDICAL CITY DENTON of the need to restore the required ground clearance and the cost for the CITY to do the same at a total cost of $98,000.00; WHEREAS, MEDICAL CITY DENTON has determined that it is more cost effective to have the CITY remove the dirt, grade out the Property and restore the required ground clearance of the Transmission Line; and WHEREAS, the CITY, at a total cost of $98,000.00, will remove the dirt, grade the Property and restore the required ground clearance of the Transmission Line; and WHEREAS, the CITY will be responsible for paying the contractor who completed the work on its behalf; and Advanced Costs Reimbursement Agreement Page 1 of 8 WHEREAS, MEDICAL CITY DENTON has agreed to reimburse the CITY, and EPIC guaranty the payment to the CITY, for the total cost of the dirt removal and restoration of the ground clearance of the Transmission Line; NOW, THEREFORE, in consideration of the mutual representations, covenants and promises herein contained, and for other valuable consideration, the receipt and sufficiency of which is acknowledged, the parties agree as follows: Section 1. Recitals. EPIC, MEDICAL CITY DENTON, and CITY are in full and complete agreement with the recitals set forth above and the obligations imposed on EPIC under the Easement. Section 2. Payment Obligation of MEDICAL CITY DENTON. MEDICAL CITY DENTON will pay to CITY the amount of $98,000.00 in accordance with the terms of the promissory note attached as Exhibit "D" and will execute the same contemporaneously with the execution of this Agreement. Section 3. Guaranty Obligation of EPIC. EPIC will guaranty MEDICAL CITY DENTON's payment obligation in accordance with the terms of the guaranty attached as Exhibit "D" and will execute the same contemporaneously with the execution of this Agreement. Section 4. Governing Law; Remedies; No Waiver. This Agreement and the rights of the parties under it will be governed by and construed in all respects in accordance with the laws of the State of Texas. Any action or judicial proceeding arising out of this Agreement shall be filed and prosecuted in Denton County, Texas, and MEDICAL CITY DENTON and EPIC consent to such venue. MEDICAL CITY DENTON and EPIC agree to pay all reasonable costs of collection if incurred by CITY, including, but not limited to, attorneys' fees. If any suit or action is instituted to enforce this Agreement, MEDICAL CITY DENTON and EPIC agree to pay, in addition to the costs and disbursements otherwise allowed by law, all expenses of CITY incurred in collection. This includes, but is not limited to, subject to any limits under applicable law, CITY's actual attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals and any anticipated post -judgment collection services. If not prohibited by applicable law, MEDICAL CITY DENTON and EPIC will also pay any court costs, in addition to all other sums provided by law. All rights or remedies of CITY hereunder or otherwise available at law or in equity shall be cumulative, and no one right or remedy shall be deemed exclusive of the other, or any other right or remedy conferred by law or equity. No failure on the part of CITY to exercise, and no delay in exercising, any right, power or remedy will operate as a waiver thereof, nor will any single or partial exercise by CITY of any right, power or remedy preclude any other or future exercise thereof or the exercise of any other right, power or remedy. Advanced Costs Reimbursement Agreement Page 2 of 8 Section 5. Amendment; Assignment. This Agreement shall not be altered or otherwise amended except by an instrument in writing signed by all parties. This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned or otherwise transferred by MEDICAL CITY DENTON or EPIC without the prior written consent of CITY, which consent CITY can withhold in its sole and absolute discretion, and any purported assignment or other transfer without such consent shall be void and of no force and effect. Section 6. Notices. Unless otherwise provided in this Agreement, any and all notices required or permitted under this Agreement, the Promissory Note, or the Guaranty shall be in writing and given by mail, facsimile, or in person to the parties at the address set forth below: CITY (Proper notice to CITY is when notices are delivered to both addresses listed below City of Denton c/o Denton Municipal Electric 1659 Spencer Rd Denton, Texas 76205 Attention: General Manager Fax (940) 349-7334 0ZII] City of Denton c/o City Attorney's Office 215 E. McKinney St. Denton, Texas 76201 Fax (940) 382-7923 EPIC: Epic Development, Inc. P.O. Box 570 Nashville, Texas 37202-0570 Fax (940) - MEDICAL CITY DENTON: Columbia Medical Center of Denton Subsidiary, LP 3535 S. Interstate 35 East Denton, Texas 76210-6850 Fax (940) - Advanced Costs Reimbursement Agreement Page 3 of 8 If notice is given in person, such notice shall be deemed delivered upon personal delivery. If notice is given by facsimile, such notice shall be deemed delivered upon confirmation of transmittal. If notice is given by mail, such notice shall be deemed to have been delivered five (5) days following deposit in U.S. mail, postage prepaid, certified mail, return receipt requested. Any party may change its notice address by giving notice to the other party as provided in this Section 8. Section 7. No Third Party Beneficiaries. Nothing in this Agreement shall be interpreted or construed as creating any rights or privileges of any kind whatsoever in persons or entities who are not parties to this Agreement. Nothing in this Agreement shall be intended or deemed to create a partnership, joint venture, or other similar relationship between the parties hereto. Section 8. Entire Agreement; Construction. This Agreement, Promissory Note and Guaranty constitute the final and complete expression of the parties with respect to the subject matter hereof, and replace and supersede all prior understandings with respect thereto. This Agreement, Promissory Note and Guaranty have been negotiated by MEDICAL CITY DENTON, EPIC and CITY, and their respective legal counsel, and the parties specifically agree that any legal or equitable principles that might require the construction of this Agreement, Promissory Note or Guaranty, or any provision of this Agreement, Promissory Note or Guaranty, against the party drafting will not apply in any construction or interpretation of this Agreement, Promissory Note or Guaranty. The section headings contained herein are for convenience and reference only and are not intended to define or limit the scope of any provision of this Agreement. Section 9. Authority. The signatories to this Agreement, Promissory Note and Guaranty represent that they have the power and requisite authority to bind the respective party to perform the obligations set out in this Agreement, Promissory Note, and Guaranty. A. MEDICAL CITY DENTON. MEDICAL CITY DENTON represents, warrant, covenants and agrees that it has the full, complete, and absolute authority to enter into this Agreement and Promissory Note; that it is a Texas limited partnership organized under the laws of the State of Texas and is in good standing under Texas law; that this Agreement and Promissory Note have been duly authorized by its board of directors and any other body, person, or entity whose approval is required; and that this Agreement and Promissory Note are binding and enforceable agreements of and against MEDICAL CITY DENTON in accordance with their terms. B. EPIC. EPIC represents, warrant, covenants and agrees that it has the full, complete, and absolute authority to enter into this Agreement and Guaranty; that it is a Delaware corporation organized under the laws of the State of Delaware, is in good standing under Delaware law; is duly authorized to Advanced Costs Reimbursement Agreement Page 4 of 8 conduct business in the State of Texas law; that this Agreement and Guaranty have been duly authorized by its board of directors and any other body, person, or entity whose approval is required; and that this Agreement and Guaranty are binding and enforceable agreements of and against EPIC in accordance with their terms. C. CITY. CITY represents, warrant, covenants and agrees that it has the full, complete, and absolute authority to enter into this Agreement and accept the obligations due it under both the Promissory Note and Guaranty; that it is a Texas home -rule corporation organized under the laws of the State of Texas and is in good standing under Texas law; and that this Agreement, Promissory Note, and Guaranty have been duly authorized by its council Section 10. Counterparts. For the convenience of the parties hereto, this Agreement may be executed, including by facsimile signature, in one or more counterparts, each identical to the other, so long as the counterparts in a set contain the signatures of all the parties to this Agreement, and shall bind the parties when each party has received a set containing the signature of all. Section 11. Effective Date. The effective date of this Agreement is the date the same is executed by the CITY. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first herein above written. Signature Pages Follow Advanced Costs Reimbursement Agreement Page 5 of 8 EPIC DEVELOPMENT, INC., a Delaware corporation la Signature Printed Name Title Executed on the day of , 2017. Advanced Costs Reimbursement Agreement Page 6 of 8 COLUMBIA MEDICAL CENTER OF DENTON SUBSIDIARY, LP, a Texas limited partnership, by and through its general partner, COLUMBIA NORTH TEXAS SUBSIDIARY, GP, LLC, a Texas limited liability company IN Signature Printed Name Title Executed on the day of , 2017. Advanced Costs Reimbursement Agreement Page 7 of 8 CITY OF DENTON, a Texas home -rule municipal corporation la Todd, Hileman, City Manager, under the authority of Ordinance No. 2017 - Executed on the day of ATTEST: By: Jennifer Walters, City Secretary APPROVED AS TO LEGAL FORM: By: Aaron Leal, Interim City Attorney , 2017. Advanced Costs Reimbursement Agreement Page 8 of 8 EXHIBIT A TO ADVANCED COSTS REIMBURSEMENT AGREEMENT 1 HOOP I §� RH 90 11111 IH I. w � q EXHIBIT B TO ADVANCED COSTS REIMBURSEMENT AGREEMENT ' 00 72UG STATE OF TEXAS § COUNTY -OF DENTON § KNOW ALL MEN BY THESE PRESENTS: That Epic Development, Inc. s . of Denton County, Texas, hereinafter called "Grantor," whether one or more, for and in consideration of Ten Dollars ($10.00), and other good and valuable consideration, to Grantor in hand paid by the Texas Municipal Power Agency, a municipal corporation and political subdivision of the State of Texas, which is located two and one-half miles north of Carlos, Texas on FM 244, and whose mailing address is P.O. Box 7000, Bryan, Texas 77805, hereinafter called "Grantee," has granted, sold and conveyed and by these presents does grant, sell and convey unto Grantee an easement and right of way for the purpose*of erecting, operating, maintaining and servicing thereon one'or more electric power and/or communication lines, each consisting of a"variable:number of wires, and all necessary or desirable appurtenances, attachments and .complete supporting structures,, including foundations, guy wires and guy anchorages, and structural components over,.,across and upon that real property situated in Denton County, Texas, and more particularly described as follows: ATTACHED AS "EXHIBIT A" Grantee shall have the right to construct, operate,. improve, reconstruct, increase or reduce the capability, repair, relocate, inspect, patrol, maintain or remove such lines within such easement as Grantee may from time to time find necessary, convenient or desirable to erect thereon and all rights necessary or convenient for full use of the above grant, including reasonable access over, across and upon the above referenced land to such easement. Grantee shall have the right to trim or remove trees and shrubbery to the extent necessary, in the sole judgement of Grantee, to prevent possible interference with the operation of such lines or to remove possible hazards thereto, together with the right to put gates in existing fences weithin.such easement. Grantee shall have the right to remove or prevent the construction of any or all buildings, structures and obstructions within such easement. If any such buildings, structures or obstructions are hereafter constructed or permitted by Grantor to exist within the easement without prior written consent of Grantee then Grantee shall have the right to'remove the same and Grantor agrees to pay to Grantee the reasonable cost of such removal. Grantee shall have no right to fence or enclose such easement or to use it for any purpose other than as set oui; above. The right of the Grantor to use the, above described land, including the portion within the easement, for all other purposes that will not interfere with the exercise of the rights of Grantee is reserved to the Grantor, including the right to use the same for general agricultural and grazing purposes, to erect or maintain fences not more than 8 feet high across such easement, provided that gates or openings 12 feet wide or more are installed therein, to provide Grantee reasonable access to all parts of such easements; and to lay out, dedicate, construct, maintain and use such roads, streetso alleys, railroad tracks, underground telephone cables and conduits, and oil, gas, water and sewer pipelines as will not interfere with -the rights of Grantee; provided that all such facilities shall be properly grounded, and shall be so constructed as to provide with respect to Grantee's lines and other facilities the minimum clearances. provided by law, and recognized as standard in the electrical industry: TO NAVE .AND TO HOLD the above easement and right of way unto Grantee, its successors and assigns, until all of such lines and supporting structures shall have been completely abandoned and no future use of the same contemplated by Grantee, and in that event such easement and right of way shall cease and all rights herein granted shall terminate and revert to Grantor, Grantor's heirs, successors and assigns; and is binding upon the_Grantor, Grantor's heirs, and legal representatives, to warrant and forever defend the'above described easement and right of way unto Grantee, its successors and assigns, against every person whosoever lawfully claiming or to claim the same or any part thereof. This agreement, together with the other provisions of this 'grant, 'shall constitute a covenant running with the land for the benefit of Grantee, its successors and assigns.. The right hereby granted ,is..severable and may be assigned either in whole or in part. EXECUTED this ' .�t•_ day of ili{9u ei ff A.D. 19 %7- [+.Pl+c. Q fill tLiaP� ar"w � 1 Ott . — FAc.1M vs, . THE STATE OF TEXAS § COUNTY OF �$ § BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared P" tve.l ;, A. Sm PIeAgA known to me to be the person whose name subscribed to the foregoing. instrument, and acknowledged to me that he� executed the same for the purposes and consideration therein expressed. Given under my hand and seal of office,this Q�.7 _ day of A.D., 19�2,j. , . Notary Public��� (Seal) `4° My Commission expires - •"!!"l/ill I IEI It 1111111 4� EXHIBIT nA$F LEGAL DESCRIPTION BEING 3.469 acres of land located in the DANIEL LAMBERT SURVEY, Abstract No. 784 and the M. E. P. & P. R. R. COMPANY SURVEY Survey, Abstract No. 950, Denton County, Texas, being a portion of a tract of land described in deed to Epic Development, Inc., recorded in Volume 3245, Page 699 of the Real Property Records of Denton County, Texas and being more particularly described as follows: BEGINNING at a point in the North right -of -line of Colorado Boulevard (an 80 foot wide right-of-way) as shown by the plat recorded in Cabinet F, Page 125 of the Plat Records of Denton County, Texas, lying N 85'59123"W, 75.69 feet and N 04'00"37"E, 40.00 feet from the intersection of the centerline of said Colorado Boulevard (an 80 foot wide right-of-way) and the centerline of Mayhill Road (a 120 foot wide right-of-way); THENCE N 85'59123"W along the North right-of-way line of said Colorado Boulevard (an 80 foot wide right-of-way), 70.06 feet to a point; THENCE N 01'38137"E, 131.87 feet to a point; THENCE N 44'3915511W, 887.47 feet to a point; THENCE N 67'32119"W, 874.74 feet to a point in the Northeast right-of-way line of said Colorado Boulevard (an 80 foot wide right-of-way) THENCE along the Northeast right-of-way line of said Colorado Boulevard (an 80 foot wide right-of-way) as follows: N 39'28116"W, 10.06 feet to the Beginning of a Curve to the Left; NORTHWESTERLY, 80.05 feet along said Curve to the Left, having a radius of 640.00 feet, a central angle of 07'10100'T and a chord bearing N 43'03.16"W, 80.00 feet to a point in the Northeast line of a 70 foot wide Texas Municipal Power Agency easement described in Volume 1822, Page 312 of the Real Property Records of Denton County, Texas; THENCE N 39'2811611W along the Northeast right-of-way line of said 70 foot wide easement, 89.50 feet to a point; THENCE S 67'32'19"E, 1025.86 feet to a point; THENCE S 44'39'55"E, 957.30 feet to a point; THENCE S 01.38137"W, 164.70 feet to the PLACE OF BEGINNING, containing 3.469 acres (151,103 square feet) of land. YIW 54 > w x 4 0 cua CL oj < CL cr. YIW 54 > w 4 0 cua CL oj < CL cr. if-- YIW 54 WQ 4 0 < gig if-- �' ac � � r rn n. r ,� CC > 11 G7 r Ak r r O� z rte. e�N 00' OO.bO M`�r 00 IST SFln t adiCl 9S?!_0008 -b6 a .aegwnN U69s O T 4w L?/TO/4766T u0 NN310 AlNf100/ ii"ROQOH W ill a1Ht HDNOH XI � A1NnOa NOINaa IA P AOnSH.4a.4 Pa T T A yaoZa 2f p '• N can v n m � opo w r N M,3 r } rn m Q EXHIBIT C TO ADVANCED COSTS REIMBURSEMENT AGREEMENT EXHIBIT D TO ADVANCED COSTS REIMBURSEMENT AGREEMENT PROMISSORY NOTE AND GUARANTY Basic Information Date: , 2017 Obligated Party: COLUMBIA MEDICAL CENTER OF DENTON SUBSIDIARY, LP, a Texas limited partnership Obligated Party's Mailing Address: 3535 S. Interstate 35 East Denton, Texas 76210-6850 Payee: CITY OF DENTON, a Texas home -rule municipal corporation Place for Payment: 215 E. McKinney St., Denton, Texas 76201 or as otherwise directed by Payee. Principal Amount: NINETY EIGHT THOUSAND DOLLARS AND NO CENTS ($98,000.00) Maturity Date: August 1, 2022 Annual Interest Rate on Matured, Unpaid Amounts: Highest allowed by law. Terms of Payment: The Principal Amount is due and payable in equal monthly installments of ONE THOUSAND SIX HUNDRED AND THIRTY THREE DOLLARS AND 34/CENTS ($1,633.34), on the 1St day of each month, beginning September 1, 2017 and continuing until the unpaid principal has been paid in full. Security for Payment: None. Promise to Pay Obligated Party promises to pay to the order of Payee the Principal Amount. This note is payable at the Place for Payment and according to the Terms of Payment. All unpaid amounts are due by the Maturity Date. If any amount is not paid either when due under the Terms of Payment or on acceleration of maturity, Obligated Party promises to pay any unpaid amount at the Annual Interest Rate on Matured, Unpaid Amounts. Promissory Note and Guaranty Page 1 of 4 Defaults and Remedies A default exists under this note if (1) Obligated Party defaults in the payment of this note or in the performance of any obligation in any instrument securing or collateral to this note; (2) (a) Obligated Party fails to timely pay or perform any obligation or covenant in any written agreement between Payee and Obligated Party other than as described in (1) above; (3) any representation in this note or in any other written agreement between Payee and Obligated Party is materially false when made; (4) a receiver is appointed for Obligated Party; (5) a bankruptcy or insolvency proceeding is commenced by Obligated Party or a partnership of which Obligated Party is a general partner; (6) (a) a bankruptcy or insolvency proceeding is commenced against Obligated Party or a partnership of which Obligated Party is a general partner and (b) the proceeding continues without dismissal for sixty days, the party against whom the proceeding is commenced admits the material allegations of the petition against it, or an order for relief is entered; or (7) Obligated Party or a partnership of which Obligated Party is a general partner is terminated, begins to wind up its affairs, or is authorized to terminate or wind up its affairs by its governing body or persons, or any event occurs or condition exists that permits the termination or winding up of the affairs of Obligated Party or a partnership of which Obligated Party is a general partner. Upon the occurrence of a default under this note, Payee may declare the unpaid principal balance and any other amounts owed on the note immediately due, and may exercise all other rights and remedies available at law or in equity. Waivers Obligated Party waives, to the extent permitted by law, all (1) demand for payment, (2) presentation for payment, (3) notice of intention to accelerate maturity, (4) notice of acceleration of maturity, (5) protest, (6) notice of protest, (7) rights, if any, under section 17.001 and chapter 43 of the Texas Civil Practice and Remedies Code. And (8) and rule 31 of the Texas Rules of Civil Procedure. Attorney's Fees Obligated Party also promises to pay reasonable attorney's fees and court and other costs if an attorney is retained to collect or enforce the note. These expenses will bear interest from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts. Obligated Party will pay Payee these expenses and interest on demand at the Place for Payment. These expenses and interest will become part of the debt evidenced by the note and will be secured by any security for payment. Usury Savings Interest on the debt evidenced by this note will not exceed the maximum rate or amount of nonusurious interest that may be contracted for, taken, reserved, charged, or received under law. Any interest in excess of that maximum amount will be credited on the Principal Promissory Note and Guaranty Page 2 of 4 Amount or, if the Principal Amount has been paid, refunded. On any acceleration or required or permitted prepayment, any excess interest will be canceled automatically as of the acceleration or prepayment or, if the excess interest has already been paid, credited on the Principal Amount or, if the Principal Amount has been paid, refunded. This provision overrides any conflicting provisions in this note and all other instruments concerning the debt. OBLIGATED PARTY: COLUMBIA MEDICAL CENTER OF DENTON SUBSIDIARY, LP, a Texas limited partnership, by and through its general partner, COLUMBIA NORTH TEXAS SUBSIDIARY, GP, LLC, a Texas limited liability company la Signature Printed Name Title Promissory Note and Guaranty Page 3 of 4 GUARANTY For value received, EPIC DEVELOPMENT, INC., a Delaware corporation, ("EPIC") absolutely, irrevocably, and unconditionally guarantee payment of this note according to its terms to the same extent as if it was the Obligated Party on this note. EPIC waives all demands and all notices, including notice of intention to accelerate maturity, notice of acceleration of maturity, notice of nonpayment or default, presentment for payment, protest, notice of protest, suit, and diligence. EPIC also waives any notice of and defense based on the extension of time of payment or change in methods of payment and consent to all renewals, extensions, and other adjustments in the manner of payment of this note and any transfer of this note to any third party. This is an unconditional guaranty of payment and performance, not of collection, and it is an agreement of guaranty, not of suretyship. EPIC waives defenses based on suretyship and all requirements of law, if any, that any collection efforts be made the Obligated Party or that any action be brought against the Obligated Party before resorting to this guaranty, including rights under section 17.001 and chapter 43 of the Texas Civil Practice and Remedies Code and rule 31 of the Texas Rules of Civil Procedure. GUARANTOR EPIC DEVELOPMENT, INC., a Delaware corporation :S Signature Printed Name Title P.O. Box 570 Nashville, Texas 37202-0570 Signed on the day of , 2017. Promissory Note and Guaranty Page 4 of 4 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEWON File #: ID 17-585, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Denton Municipal Electric CM/ ACM: Todd Hileman, City Manager Date: May 9, 2017 SUBJECT Consider approval of a resolution of the City Council of the City of Denton, Texas, regarding the proposed site for the construction, expansion, and use of an electric power transmission/distribution substation generally located in the northeast corner of East Sherman Drive and Hartlee Field Road, in the extraterritorial jurisdiction of the City of Denton, Denton County, Texas, and part of Denton Municipal Electric's service territory; and providing an effective date. [Hartlee Field Substation] BACKGROUND The Denton Municipal Electric (DME) Capital Improvement Program includes a project to reconstruct its electric transmission system. Its current capacity is inadequate for expected future load. The need for a substation in the vicinity of the area described above (Exhibit 1), in the City of Denton, Texas, has been identified and shared with closely impacted landowner representatives. DME held an open house and meetings to discuss the siting of the proposed substation and transmission routes with the landowner representatives of the potential site area and has received feedback from them. OPTIONS 1. Approve adoption of the resolution. 2. Do not approve resolution. RECOMMENDATION Based upon information received during Open House meetings and discussions with land owners, preliminary site studies, staff recommends that the Yellow Substation Site Option, which is currently owned by the City of Denton, EX 3) be selected in accordance with the Public Utilities Board Public Hearing determination on April 10, 2017 and the City Council Public Hearing on May 2, 2017. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Options were presented in Closed Session to the Public Utilities Board on March 27, 2017, and to the City Council on December 6, 2016. A Public Hearing was held at the Public Utilities Board meeting on April 10, 2017, at which time the PUB recommended the "Yellow" site option. A Public Hearing was held at the City Council meeting on May 2, 2017. STRATEGIC PLAN RELATIONSHIP City of Denton Page 1 of 2 Printed on 5/5/2017 powered by I-eg;gl;>karI File #: ID 17-585, Version: 1 The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 2.3 Promote superior utility services and facilities EXHIBITS 1. DME Substations Locations Map 2. Hartlee Field Substation Options Map 3. Revised Yellow Site Option 4. Project Information Sheet 5. Resolution Respectfully submitted: Phil Williams General Manager Prepared by: Elizabeth Bell Denton Municipal Electric City of Denton Page 2 of 2 Printed on 5/5/2017 powered by I._ag;gl;>karI I I �M �; �. I �I � i! I � �, n„u �i �� �„ % �` ' ' �� ' � u� !fir � ,f� , „�'� � i '� nx ,ice► a� � � � Y � � � �, n 1 ,�,n�,,lo � ���� f�1J�� �rrr��, � P Y , � � �� �► r � � � � ��” ���, � � � �l �i/ % it o ��� f ,� � � � ,, , � �� � � � '�'� f '! 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Construction of the Hartlee Field Substation is one project that is necessary. Information on the project is presented herein. Several alternatives have been considered as possible locations for reconstruction of the Hartlee Field Substation. A map is attached that shows location; options that have been identified at this time. One of those possible sites is owned by the city. A substation location could be chosen that is different from those locations shown on the map. - All facilities will be owned and operated by DME. Whv is the Proiect needed? State an ,���I Vu1Y4iluiVmi����IYilQliii�p� i�V�iuYt�°I��I�BdIIdVIi�l�'IIYII�I�VI VIuI��lu �i�Qli ���II��i�IIVtlIpIV II�IIIVii'��i�6�Di�V� 4li ���,1���� y 9 �federalaws mandate specific and wellM VV defined performance requirements for utility systems. DME must comply with these requirements not only to ensure regulatory compliance, but more importantly, to maintain the best reliability of electric service to our �� f customers. Annual studies are completed to determine whether or not each transmission line segment and substation section provide the performance required by the rules. If deficiencies are identified, projects must be defined and constructed that resolve the deficits. In determining a solution for a deficiency, alternatives are considered that take into account benefits, impacts, and costs. In the case of Hartlee Field Substation, it has been determined with the growth in North Texas, the capacity of adjacent substations will not be sufficient to accommodate growth in northeast Denton at some point in the future. It is the intention of the City of Denton to purchase the land and build the substation in a future year as the City expands to the north and northeast. This site provides DME with great flexibility both in maintaining City-wide system reliability and in meeting the growing electrical demands of the City's electrical system. DME has investigated five alternatives for the Hartlee Field Substation. The attached map shows the five options. Project Information Hartlee Field Substation The Site Selection Process The analysis phase of project development only identifies that a project is needed, what the project should accomplish, and a potential area for the needed project. It does not mandate the use of a specific site. The site selection process, which includes requesting public input, is employed to assist with determining the location for the new substation. Alternatives have been identified for the substation construction and are depicted on the attached map. Identification of these sites is the starting point for the selection process. This open house is intended to communicate the need for the project and to provide an opportunity for individuals to learn about the project and make comments. Potentially affected land owners and those within 500 feet of any of the alternative sites have been notified by mail of the project and the public open house. The City Council has approved the substation site selection process. This process presents the public with several opportunities to provide input. The first step is for DME to conduct an open house where information is made available on the proposed project, questions may be asked, recommendations can be made, and written or verbal comments may be provided. Interested individuals may also contact DME at any time. Contact information for DME is provided below andat the open, house. All comments received for a project will be compiled, DME will consider all comments, complete additional reviews as appropriate, and will provide a recommendation to the Public, Utilities Board (PUB). During its consideration of DME's proposal, the PUB will conduct a public hearing and direct DME to take additional actions or recommend a site for consideration by the City Council. During its consideration of the PUB's findings, the City Council will again conduct a public hearing to receive comments from interested residents. Ultimately, the City Council will select the site for the proposed substation. DME's practice is to provide notices by mail for the open house and for the PUB and City Council public hearings. January 26, 2017 DME's contact for questions: Brian Daskam Energy Services Development Officer Phone: (940) 349-7567 Email: Brian.Daskam@cityofdenton.com Timeline for the Proposed Facilities Following recommendation by the Public Utilities Board and approval by the City Council of a site, DME will undertake procurement of land for the proposed substation should a site other than the one already owned by the City of Denton be selected. The time required for purchase of the land is unknown at this time. Construction of the substation will be undertaken when 2 Project Information Hartlee Field Substation January 26, 2017 development or other load growth in northeast Denton increases to the point where it is needed or should other reliability considerations arise. DME has no timetable for actual construction but anticipates that the station will be needed four to ten years after the site is selected by City Council and the land is acquired. Procurement of Land and Easements Land and easement procurement processes are governed by state laws and local ordinances such as Senate Bill 18. Once the City Council has approved the substation site, if procurement actions are required, the process will follow these requirements. The City will pay fair market prices for land and land rights. Fair market value is determined by conducting market studies and appraisals. Attachment: Location Map 3 S:\Lep,al\Our Documents\Real Estate\DME\Hartlee Field Substation\Flartlee Field Substation Resolution,docx RESOLUTION NO. A RESOLUTION OF THE' CITY COtJNCIL OF THE CITY OF DENTON, TEXAS REGARDING THE PROPOSED SITE FOR THE CONSTRUCTION, EXPANSION AND USE OF AN ELECTRIC POWER TRANSMISSION/DISTRIBUTION SUBSTATION GENERALLY LOCATED IN THE NORTHEAST CORNER OF EAST SHERMAN DRIVE AND IIARTLEE FIELD ROAD, IN THE EXTRATERRITORIAL JURISDICTION OF THE CITY OF DENTON, DENTON COUNTY, TEXAS, AND PART OF DENTON MtJNICIPAI-, ELECTRIC'S SERVICE TERRITORY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Denton Municipal Electric ("DME"), the City of Denton's electric department, has previously announced that in order to serve future load and needs of its customers the necessity exists for the construction, expansion and use of a substation (the "Hartlee Field Road Substation"), in the general area of the northeast corner of East Sherman Drive and Hartlee Field Road, in the extraterritorial jurisdiction of the City of Denton, Denton County, Texas (also referred to below as the "Yellow Site"), and the same being located in the certificated service territory of DME; and WHEREAS, DME has diligently examined a number of possible locations in the northeast part of the City and the City's extraterritorial jurisdiction, in order to determine an appropriate site for the construction, expansion and use of the substation; and it has considered the impact on homeowners, any displacement of residents, the cost of easements, transmission and distribution line construction costs, engineering factors, and other relevant factors to the extent reasonably possible; and WHEREAS, DME staff then conducted an open house (January 26, 2017), with advanced notices being mailed to landowners who own property within five -hundred (500) feet of the potential substation sites, in order to inform the public regarding the sites for the proposed construction, expansion and use of the Ilaitlee Field Road Substation, and receive public input on the same; and WHEREAS, the PUB, after considering any and all public comment and the recommendations of DME staff, recommended to City Council by a vote of 7-0 that the "Yellow Site" be selected as the site for the location and construction of the Hardee Field Road Substation; and WHEREAS, after the open houses, the City Council, during a regularly scheduled open meeting, on May 2, 2017, held a public hearing to allow further public input before making a decision for location of the construction of the Hartlee Field Road Substation; and WHEREAS, the City Council, after considering all of the facts, circumstances and the recommendation of the PUB, is of the opinion, and the City Council finds, that the "Yellow Site," located in the general area of the northeast corner of East Sherman Drive and Hartlee Field Road, 11 in the extraterritorial jurisdiction of the City of" Denton, Denton County, Texas, is a feasible site option for the location and construction of the Hartlee Field Road Substation; NOW, THEREFORF" THE COUNCIL OP'THE CITY Ol'DE,NTON RESOLVES: .SECTION 1. The City Council approves the "Yellow Site," located in the general area of the northeast corner of East Sherman Drive and Hartlee Field Road, in the extraterritorial jurisdiction of the City of Denton, Denton County, Texas, and depicted on the attached site map marked as Exhibit "I", as the site for the location and construction of Denton Municipal Electric's I-lartlee Field Road Substation and accordingly directs DME to acquire the property rights to the site so designated, in substantial compliance with what is depicted on the attached map. SECTION 2. The recitals set forth in the preamble to this resolution are incorporated in, and are made a part of this resolution for all purposes. SECTION 3. This resolution shall take effect immediately from and after its adoption. PASSED AND APPROVED this the day of _ 2017. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY By: APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY By: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEYlf `IN File #: ID 17-603, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office CM: Todd Hileman Date: May 9, 2017 SUBJECT Consider adoption of an ordinance of the City of Denton authorizing an agreement between the City of Denton, Texas, and the Day of the Dead Festival; providing for the expenditure of funds; and providing for an effective date. BACKGROUND This Agreement allows for the total expenditure of $600 from Council Contingency Funds. (Council Member Joey Hawkins) Key provisions of the Agreement include: ➢ Funds shall be used for expenses for the 2017 Day of the Dead Festival. ➢ In addition to other reporting requirements, documentation in the form of cancelled checks and/or corresponding receipts specifically detailing expenditure of funds for the purpose provided is required for reimbursement from these designated funds. FISCAL INFORMATION Funding for the Agreement will come from Council Contingency Funds. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Related Goal: opportunities Safe, Liveable & Family -Friendly Community 4.4 Provide and support outstanding leisure, cultural, and educational City of Denton Page 1 of 2 Printed on 5/5/2017 powered by I._eggl;>karI File #: ID 17-603, Version: 1 EXHIBITS 1. Ordinance and Agreement Respectfully submitted: Todd Hileman City Manager Prepared by: Sarah Lollar Executive Assistant City of Denton Page 2 of 2 Printed on 5/5/2017 powered by I._ag;gl;>karI SALegal\0ur Documents\0rdinances\l7\sery agr-Day of the Dead Festival ord.doc ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF DENTON, TEXAS, AND THE DAY OF THE DEAD FESTIVAL; PROVIDING FOR THE EXPENDITURE OF FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton hereby finds that the agreement between the City and the Day of the Dead Festival, which is attached hereto and made a part hereof by reference (the "Agreement"), serves a municipal and public purpose and is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the preamble of this Ordinance are incorporated by reference into the body of this Ordinance as if fully set forth herein. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City under the Public Service Agreement, including the expenditure of funds as provided in the Agreement. SECTION 3. 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 I= APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: Olegakour documents\contracts\ I 7\scry agr day ofthe dead festival.doc SERVICE AGREEMENT BETWEEN TI CITY OF DENTON, TEXAS AND DAY OF THE DEAD FESTIVAL This Agreement is hereby entered into by and between the City of Denton, Texas, a Home Rule Municipal Corporation, hereinafter referred to as "City", and Day of the Dead Festival, aTexas Non - Profit Corporation, hereinafter referred to as "Festival." WHEREAS, City has determined that the proposal for services merits assistance and can provide needed services to citizens of City and has provided funds in its budget for the purpose of paying for contractual services; and WHEREAS, this Agreement serves a valid municipal and public purpose and is in the public interest; NOW, THEREFORE, the parties hereto mutually agree as follows: I. SCOPE OF SERVICES Festival shall, in a satisfactory and proper manner, perform the following tasks, for which the monies provided by City may be used: The funds being provided shall be used by Festival for the purpose of the Day of the Dead Festival. 11. OBLIGATIONS OF FESTIVAL In consideration of the receipt of funds from City, Festival agrees to the following terms and conditions: A. Six Hundred Dollars and no/100 ($600.00) shall be paid to Festival by City to be utilized for the purposes set forth in Article 1. B. Festival will maintain adequate records to establish that the City funds are used for the purposes authorized by this Agreement, C. Festival will permit authorized officials of City to review its books at any time. D. Upon request, Festival will provide to City its By Laws and any of its rules and regulations that may be relevant to this Agreement. E. Festival will not enter into any contracts that would encumber City funds for a period that would extend beyond the term of this Agreement. sAegakour docurnents\con tracts\ 17\scry agr day of the dead festiva I, doc F. Festival will appoint a representative who will be available to meet with City officials when requested. G. Festival will submit to City copies of year-end audited financial statements. III. "TIMI;? OF PERFORMANCE 'The services funded by City shall be undertaken and completed by Festival within the following time frame: The term of this Agreement shall commence on the effective date and terminate September 30, 2017 unless the contract is sooner terminated under Section VII "Suspension or Termination". IV, PAYMENTS A. PAYMENT'S TO FESTIVAL City shall pay to Festival the sum specified in Article 11 after the effective date of this Agreement, B. ExCESS PAYMFNT, Festival shall refund to City within ten (10) working days of City's request, any sum of money which has been paid by City and which City at any time thereafter determines: 1) has resulted in overpayment to Festival; or 2) has riot, been spent strictly in accordance with the terms of this Agreement; or 3) is not supported by adequate documentation to fully justify the expenditure. V. EVALUATION Festival agrees to participate in an implementation and maintenance system whereby the services can be continuously monitored. Festival agrees to make available its financial records for review by City at City's discretion, In addition, Festival agrees to provide City the following data and reports,, or copies thereof: A. All external or internal audits. Festival shall submit a copy of the annual independent audit to City within ten (10) days of receipt. B. All external or internal evaluation reports. C. An explanation of any rnajor changes in program services. D. To comply with this section, Festival agrees to maintain records that will provide accurate, current, separate, and complete disclosure of the status of funds received and the services performed under this Agreement. The record system of Festival shall contain sufficient documentation to Page 2 of'7 sAlcgakour daeuments\contracts\17\sery agr day of the: dead festival.doc provide in detail full support and justification for each expenditure. Festival agrees to retain all books, records, documents, reports, and written accounting procedures pertaining to the services provided and expenditure of funds under this Agreement for five years. El. Nothing in the above subsections shall be construed to relieve Festival of responsibility for retaining accurate and current records that clearly reflect the level and benefit of services provided under this Agreement. VI. DIRECTORS' MEETINGS During the term of this Agreement, Festival shall deliver to City copies of all notices of meetings of its Board of'Directors, setting forth the time and place thereof wherein this program is a part of the subject matter of the meeting. Such notice shall be delivered to City in a timely manner to give adequate notice, and shall include an agenda and a brief description of the matters to be discussed. Festival understands and agrees that City's representatives shall be afforded access to all meetings of its Board of Directors. Minutes of all meetings of Festival' governing body shall be available to City within ten (10) working days of approval. VII. TERMINATION The City may terminate this Agreement for cause if Festival violates any covenants, agreements, or guarantees of this Agreement, the Festival' insolvency or filing of bankruptcy, dissolution, or receivership, or the Festival' violation of any law or regulation to which it is bound under the terms of this Agreement. The City may tenninate this Agreement for other reasons not specifically enumerated in this paragraph. VIII, EQUAL OPPORTUNITY AND COMPLIANCE WITH LAWS A. Festival shall comply with all applicable equal employment opportunity and affirmative action laws or regulations. B. Festival will furnish all information and reports requested by City, and will permit access to its books, records, and accounts for purposes of investigation to ascertain compliance with local, State and Federal rules and regulations, C. In the event of noncompliance by Festival with the nondiscrimination requirements, the Agreement may be canceled, terminated, or suspended in whole or in part, and Festival may be barred from further contracts with City. IX WARRANTIES Festival represents and warrants that: Page 3 of 7 Olegakour documents\contracts\J7\sery agr day of the dead festiva I. doe A. All information, reports and data heretofore or hereafter requested by City and furnished to City, are complete and accurate as of the date shown on the information, data, or report, and, since that date, have not undergone any significant change without written notice to City. B. Any supporting financial statements heretofore requested by City and furnished to City, are complete, accurate and fairly reflect the financial conditions of Festival on the date shown on said report, and the results of the operation for the period covered by the report, and that since said data, there has been no material change, adverse or otherwise, in the financial condition of Festival. C. No litigation or legal proceedings are presently pending or threatened against Festival. 1). None of the provisions herein contravenes or is in conflict with the authority under which Festival is doing business or with the provisions of any existing indenture or agreement of Festival. E. Festival has the power to enter into this Agreement and accept payments hereunder, and has taken all necessary action to authorize such acceptance under the terms and conditions of this Agreement. F. None of the assets of Festival are subject to any lien or encumbrance of any character, except for current taxes not delinquent, except as shown in the financial statements furnished by Festival to City. Each of these representations and warranties shall be continuing and shall be deemed to have been repeated by the submission of each request for payment. X. CHANGES AND AMENDMI-'XI'S A. Any alterations, additions, or deletions to the terms of this Agreement shall be by written amendment executed by both parties, except when the terms of this Agreement expressly provide that another method shall be used. 13. It is understood and agreed by the parties hereto that changes in the State, Federal or local laws or regulations pursuant hereto may occur during the term of this Agreement. Any such modifications are to be automatically incorporated into this Agreement without written amendmenthereto, and shall become a part of"the Agreement on the effective date specified by the law or regulation. C. Festival shall notify City of any changes in personnel or governing board composition. Page 4 of 7 Olegahour documentskontricts\1 7\scry agr day of the dead festival.doc X1. INDEMNIFICATION To the extent authorized by law, the Festival agrees to indemnify, hold harmless, and defend the City, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the Festival or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of Festival, its officers, employees, agents, subcontractors, licensees and invitees, XII. CONFI.JCTOF INTEREST A. Festival covenants that neither it nor any member of its governing body presently has any interest, direct or indirect, which would conflict in any manner or degree with the performance of services required to be performed under this Agreement. Festival further covenants that in the performance of this Agreement, no person having such interest shall be employed or appointed as a member of its governing body. B. Festival further covenants that no member ofits governing body or its staff, subcontractors or employees shall possess any interest in or use his/her position for a purpose that is or gives the appearance of being motivated by desire for private gain for himself/herself, or others; particularly those with which he/she has family, business, or other ties. C. No officer, member, or employee of'City and no member of its governing body who exercises any function or responsibilities in the review or approval of the undertaking or carrying out of this Agreement shall participate in any decision relating to the Agreement which affects his personal interest or the interest in any corporation, partnership, or association in which he has direct or indirect interest. XIII, NOTICE Any notice or other written instrument required or permitted to be delivered under the terms of this Agreement shall be deemed to have been delivered, whether actually received or not, when deposited in the United States mail, postage prepaid, registered or certified, return receipt requested, or via hand -delivery or facsimile, addressed to Festival or City, as the case may be, at the following addresses: CITY City of Denton, Texas Attn: City Manager 215 E. McKinney Denton, TX 76201 Fax No. 940.349.8591 DAY OF THE DEAD FES'rIVAL David Pierce Day of the Dead 2016 N. Bell Avenue Denton, TX 76209 Page 5 of'7 sAlegahour documentkon tracts\] 7\sei-v a gr day of the dead festiva I. doc Either party may change its mailing address by sending notice of change of address to the other at the above address by certified mail, return receipt requested. XIV. MISCELLANEOUS A. Festival shall not transfer, pledge or otherwise assign this Agreement or any interest therein, or any claim arising thereunder to any party or parties, bank, trust company or other financial institution without the prior written approval of City. B. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect and continue to conform to the original intent of both parties hereto. C. In no event shall any payment to Festival hereunder, or any other actor failure of City to insist in any one or more instances upon the terms and conditions of this Agreement constitute or be construed in any way to be a waiver by City of any breach of covenant or default which may then or subsequently be committed by Festival. Neither shall such payment, act, or omission in any manner impair or prejudice any right, power, privilege, or remedy available to City to enforce its rights hereunder, which rights, powers, privileges, or remedies are always specifically preserved. No representative or agent of City may waive the effect of this provision. D. This Agreement, together with referenced exhibits and attachments, constitutes the entire agreement between the parties hereto, and any prior agreement, assertion, statement, understanding, or other commitment occurring during the term of this Agreement, or subsequent thereto, have any legal force or effect whatsoever, unless properly executed in writing, and if appropriate, recorded as an amendment of this Agreement. E. This Agreement shall be interpreted in accordance with the laws of the State of Texas and venue of any litigation concerning this Agreement shall be in a court of competent.jurisdiction sitting in Denton County,'I'exas. IN WITNESS WHEREOF, the parties do hereby affix their signatures and enter into this Agreement as of the _ day of 2017. ciTy Of, DENTON, TEXAS TODD HILEMAN, CITY MANAGER Page 6 of 7 AlepAour documentskontractAMsery agr day of the dead festival,doc TTEST: WALTERS, CITY SECRETARY "llov APPROVED AS TO LEGAL FORM: AARON ZEAL, INTERIM CITY ATTORNEY BY: ATTEST: 11q City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IEYlf `IN File #: ID 17-618, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: City Manager's Office DCM : Bryan Langley Date: May 9, 2017 SUBJECT Consider adoption of an ordinance of the City of Denton, Texas, concurring with the City Manager's reorganization of the City of Denton's administrative departments and divisions; and providing an effective date. BACKGROUND City Manager Todd Hileman began employment with the City of Denton on January 23, 2017. Within the first few weeks, after spending a good deal of time with Council Members and numerous City staff, he proposed structural changes to the organization designed to help facilitate better coordination across functions, enhance accountability, improve responsiveness and customer service, provide stronger support and direction to employees, and utilize resources more efficiently. The changes organized departments reporting directly to City Manager Todd Hileman, Deputy City Manager Bryan Langley, and Assistant City Manager Jon Fortune. The City Council concurred with the changes adopting an ordinance on February 21, 2017. On April 25, 2017, Assistant City Manager Jon Fortune announced his resignation to accept an Assistant City Manager position for the City of Dallas. His replacement was announced on May 1 as Mario Canizares. Mario is currently serving as the Deputy City Manager for the City of Coppell and has more than 20 years' experience in local government. He will begin his duties with the City of Denton on May 24. In advance of Mario's arrival and in a continued effort to meet the above stated goals, the changes described below and shown in the attached organizational chart are proposed. Revised Organizational Structure CM Hileman: Police, Fire (including Community Improvement Services), DME, and Development Services will continue to report to the City Manager directly. Director of Community Affairs John Cabrales has announced that he will be leaving the organization on June 16, 2017. As a result, Public Information Office (PIO), as well as Public Communications Office, DTV, and Reprographic divisions, will report to the Assistant to the City Manager effective May 8, 2017. DCM Langley: Finance, Human Resources, Technology Services, Library, Parks & Recreation, Economic Development, Customer Service, and Materials Management will continue to report to Bryan, in addition to the City Secretary's office. Transportation will be moved to ACM Canizares to better align the coordination and completion of major construction projects, as well as allow Bryan to spend time on higher-level organizational City of Denton Page 1 of 2 Printed on 5/5/2017 powered by I._eggl;>karI File #: ID 17-618, Version: 1 goals and projects as Chief Operating Officer. ACM Canizares: When Mario starts on May 24, 2017, the following departments will be reporting to him: Capital Projects, Utilities (Water/ Wastewater/ Environmental Services/ Solid Waste), and Transportation (Airport/ Fleet/ Facilities). Dr. Kenneth Banks has been named Utilities General Manager. Solid Waste will report directly to Dr. Banks along with his current divisions of Water, Wastewater, and Environmental Services. Ethan Cox, serving currently as Customer Service Manager for the City, has been appointed the Director of Solid Waste. Ethan will begin his duties as Director of Solid Waste on May 20. Tiffany Thomson has been appointed Customer Service Manager effective May 20 and will report directly to DCM Langley. EXHIBITS 1. Organizational Chart 2. Ordinance Respectfully submitted: Todd Hileman City Manager City of Denton Page 2 of 2 Printed on 5/5/2017 powered by L.ag;gl;>karI City of Denton Organization Chart City Manager Todd Hileman Deputy City Manager/COO Assistant City Manager Police Bryan Langley Mario Canizares Denton Municipal Finance Capital Projects Electric Development Human Resources Streets Services LCommunity Technology Services Utilities Development Fire ater Water Community Improvement Wastewater Services Parks & Recreation Asst. to the City Environmental Manager Economic Services Development PCO/DTV Solid Waste P10 Customer Service Transportation Reprographics Materials Management Airport Fleet City Secretary Facilities SALegahOur Documents\0rdinances\1 7\City Manager's Second Reorganization Ordinance.doc AN ORDINANCE OF THE CITY OF DENTON, TEXAS CONCURRING WITH THE CITY MANAGER'S REORGANIZATION OF THE CITY'S ADMINISTRATIVE DEPARTMENTS AND DIVISIONS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on February 21, 2017, the City Council adopted Ordinance No. 2017-068 to demonstrate its concurrence with City Manager Todd Hileman's reorganization of the City's administrative departments and divisions; and WHEREAS, Ordinance No. 2017-068 provided that any major modifications to the organizational structure be presented to the Council for concurrence via an ordinance; and WHEREAS, in light of the City Manager's recent hiring of Mario Canizares as Assistant City Manager, the City Manager has reorganized the City's administrative departments and divisions to provide optimal efficiency and effectiveness; and WHEREAS, the City Council finds that this Ordinance is in the public interest; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The recitals and findings contained in the preamble of this Ordinance are incorporated into the body of this Ordinance. SECTION 2. The City Council hereby concurs with the City Manager's reorganization of the City's administrative departments and divisions as depicted in the chart attached hereto as Exhibit "A". SECTION 3. The Council acknowledges that the City Manager may make minor modifications to the organizational structure after this Ordinance is adopted. Any major modifications shall be presented to the Council for concurrence via Ordinance. 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 S:\Legal\Our Documents\Ordinances\l 7\City Manager's Second Reorganization Ordinance.doc APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: Page 2 Exhibit "A" City of Denton Organization Chart City Manager Todd Hilernan Deputy City Manager/COO Assistant City Manager Police Bryan Langley Mario Canizares Denton Municipal Finance Capital Projects Electric Development Human Resources Streets Services LCommunity Technology �Services Utilities I Development Fire Community Improvement Library Water Wastewater Services Parks & Recreation Environmental Asst. to the City Manager Economic Services Development —[ PCO/DTV Solid Waste —E P —10 Customer Service Transportation L�Reprographics Materials Airport Fleet Management City Secretary Facilities City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEWON File #: ID 17-579, Version: 1 DEPARTMENT: ACM: Date: Finance Bryan Langley May 9, 2017 Legislation Text Agenda Information Sheet SUBJECT Consider adoption of an ordinance of the City of Denton, Texas amending the Fiscal Year 2016-2017 Budget and Annual Program of Services of the City of Denton to allow for adjustments to the General Fund of three hundred seventy-five thousand dollars ($375,000) for the purpose of funding fencing at City Cemeteries, Downtown Reinvestment Fund of twenty thousand dollars ($20,000) for the purpose of funding additional grant applications, the Library Donation Fund of twenty thousand dollars ($20,000) for the purpose of funding the purchase of replacement furniture, equipment and supplies; declaring a municipal purpose; providing a severability clause, an open meetings clause and effective date. BACKGROUND Staff is proposing to amend the General Fund FY 2016-17 budget by $375,000 for the purpose of funding fencing around IOOF (Independent Order of Odd Fellows) and Oakwood cemeteries. Staff is proposing to amend the Downtown Reinvestment Fund FY 2016-17 budget by $20,000 for the purpose of funding two additional grant applications. Under the FY 2016-17 budget, Council authorized $100,000 of expenditures. To date $70,000 has been paid or approved for three grants, leaving $30,000 of expenditure authority. An additional $20,000 is needed to fund the two additional grants. Staff is proposing to amend the Library Donation Fund FY 2016-17 budget $20,000 for the purpose of purchasing replacement furniture for the South Branch Library and the purchase of equipment and supplies. PRIOR ACTION/REVIEW (Council, Boards, Commissions) On April 18, 2017, City Council received a report on the status of the Downtown Reinvestment Fund. On May 1, 2017, City Council received a report on the maintenance and improvements to the IOOF and Oakwood Cemeteries. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and City of Denton Page 1 of 2 Printed on 5/5/2017 powered by I._eggl;>karI File #: ID 17-579, Version: 1 Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Organizational Excellence Related Goal: 1.1 Manage financial resources in a responsible manner EXHIBITS 1. Ordinance Respectfully submitted: Chuck Springer, 940-349-8260 Director of Finance Prepared by: Nancy Towle Budget Manager City of Denton Page 2 of 2 Printed on 5/5/2017 powered by L.ag;gl;>karI ORDINANCE NO. AN ORDINANCE OF THE CITY OF DENTON, TEXAS, AMENDING THE FISCAL YEAR 2016-2017 BUDGET AND ANNUAL PROGRAM OF SERVICES OF THE CITY OF DENTON TO ALLOW FOR ADJUSTMENTS TO THE GENERAL FUND OF THREE HUNDRED SEVENTY FIVE THOUSAND DOLLARS ($375,000) FOR THE PURPOSE OF FENCING AT CITY CEMETERIES, DOWNTOWN REINVESTMENT FUND OF TWENTY THOUSAND DOLLARS ($20,000) FOR THE PURPOSE OF FUNDING ADDITIONAL GRANT APPLICA'T'IONS, THE LIBRARY DONATION FUND OF TWENTY THOUSAND DOLLARS ($20,000) FOR THE PURPOSE OF FUNDING THE PURCHASE OF REPLACEMENT FURNITURE, EQUIPMENT AND SUPPLIES; DECLARING A MUNICIPAL PURPOSE; PROVIDING A SEVERABILITY CLAUSE, AN OPEN MEETINGS CLAUSE AND AN EFFECTIVE DATE. WHEREAS, pursuant to Ordinance No. 2016-262, the City Council of Denton, Texas, approved the Fiscal Year 2016-2017 Budget and Annual Program of Services (the "Budget"); and WHEREAS, the City of Denton desires to fund additional fencing around City Cemeteries; and WHEREAS, the City of Denton desires to fund additional grant applications; and WHEREAS, the City of Denton desires to fund the purchase of replacement furniture, equipment and supplies; and WHEREAS, the City Council finds that this Budget Amendment serves an important municipal purpose as eligible items for expenditure in the current Budget, consistent with Section 102.010 of the Texas Local Government Code and other applicable laws; NOW, THEREFORE, THE COUNCIL, OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings set forth in the above preamble to this Ordinance are true and correct and are hereby adopted. SECTION 2. The Fiscal Year 2016-2017 Budget and Annual Program of Services is hereby amended by the City Council to allow for adjustments to the General Fund of $375,000 increasing appropriations from $114,433,930 to $114,808,930; Downtown Reinvestment Fund of $20,000 increasing appropriations from $100,000 to 120,000 Library Donation Fund of $20,000 increasing appropriations from $50,000 to $70,000. SECTION 3. This Ordinance shall be filed with the City Secretary, who is directed to attach a copy of this Ordinance to the Fiscal Year 2016-2017 Budget and. Annual Program of Services. SECTION 4. This Ordinance was approved by at least five members of the City Council as required by Section 8.08 of the City Charter. SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in this Ordinance, or the application thereof to any person or under any circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas, hereby declares it would have enacted such remaining portions despite any such invalidity. SECTION 6. It is officially found and determined that the meeting at which this Ordinance was passed was open to the public as required by law, and the public notice of the time, place and purpose of this meeting was given as required by law. SECTION 7. 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 UN APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY 4 BY:' Page 2 - - City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEN' `IN File #: ID 17-575, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development DCM: Bryan Langley Date: May 9, 2017 SUBJECT Consider adoption of an ordinance approving a grant application from John Withers, representing Withhick, LLC, from the Downtown Reinvestment Grant Program not to exceed $25,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (7-0). BACKGROUND The building at 112 W. Oak is on the face of the Square and in the National Register District. It is an important part of Denton's history. The new owner wants to restore the building based on a photo of it from 1943. Work will include removing the aggregate rock slipcover, exposing the original brick facade, restoring the upper story and transom windows, rerouting electrical and plumbing throughout the building, and installing a fire suppression system. Preliminary tests have found the brick behind the slipcover to be in good shape; the owners will have to see if the slipcover can be safely removed without damaging the brick. The original tin ceiling also was found under the suspended acoustic tile ceiling. Plumbing and electrical for the upstairs apartment were run between the tin ceiling and the acoustic tiles. To expose the original ceiling, those will have to be rerouted. They do not have a tenant at this time, but have talked to several interested parties. RECOMMENDATION Staff recommends approval of the ordinance. ESTIMATED SCHEDULE OF PROJECT The project will be completed by December 2017. PRIOR ACTION/REVIEW (Council, Boards, Commissions) April 18, 2017 The City Council reviewed two grants, 112 W. Oak and 421 E. Oak, during a Work Session. Council directed staff to present a $20,000 budget to raise the grant fund balance from $30,000 to $50,000 amendment in order to fully fund the two grants. City of Denton Page 1 of 2 Printed on 5/5/2017 powered by I-eg;gl;>karI File #: ID 17-575, Version: 1 April 12, 2017 The Economic Development Partnership Board reviewed the request and recommends a grant in the amount of $25,000 (7-0). March 9, 2017 The Downtown Task Force reviewed the request and recommends a grant in the amount of $25,000 (11-0). FISCAL INFORMATION Council initially granted expenditure authority of $100,000 for the Downtown Reinvestment Grant for FY 2016 -2017. A budget amendment of $20,000 has been presented to Council. Expenditures to date are: $20,000 JT Clothiers (paid) $25,000 Armadillo Ale (approved, waiting on completion of project) $25,000 Denton County Brewing (approved, waiting on completion of project) $30,000 Balance The total amount of this project is $125,000. With a $25,000 grant, the return on investment is 1:5. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Economic Development Related Goal: 3.3 Promote a business -friendly environment EXHIBITS 1. Ordinance and agreement 2. Presentation Respectfully submitted: Caroline Booth Director, Economic Development Prepared by: Julie Glover Economic Development Program Administrator City of Denton Page 2 of 2 Printed on 5/5/2017 powered by I._ag;gl;>karI si \I egahour d0CL11nent,9\ordinances\17\1 12 w. oak ordinance.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING A GRANT APPLICATION OF JOHN WITHERS, REPRESENTING WFITIHICKS, LLC, LOCATED 112 W. OAK STREET, FROM THE DOWNTOWN REINVESTMENT GRANT' PROGRAM NOT TO EXCEED $25,000; AND PROVIDING FOR AN EFFECTIVE' DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive Reimbursement Program by Ordinance No. 2007-072; and WHEREAS, on December 6, 2011, the City Council approved changes to the Downtown Reinvestment Grant Program by Ordinance No. 2012-001; and WHEREAS, John Withers applied for a $25,000 grant; NOW, THEREFORE, 'THE COUNCIL OF THE CITY 0FDENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the Agreement attached hereto from John Withers, representing Withhicks, LLC, in an amount not to exceed $25,000 from the Downtown Incentive Reimbursement Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City, including the expenditure of funds as provided in the Agreement. SECTION 3. 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 APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: DOWNTOWN REIMBURSEMENT GRANT INCENTIVE AGREEMENT This Downtown Reinvestment Grant Agreement (the "Agreement") is entered into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its Mayor, and John Withers, representing Withhicks, LLC, located at 112 W. Oak Street (the "Grantee"), duly authorized to do business and in good standing in the State of Texas, duly act- ing herein by and through its authorized officer. WHEREAS, the City has adopted a resolution which provides that it elects to be eligible to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria governing g downtown reinvestment grant incentive agreements known as the Denton Downtown Reinvestment Grant Incentive Program; and WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a copy of which is on file in the City of Denton Economic Development Office and which is in- corporated herein by reference; and WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti- tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive agreements to be entered into by the City; and WI IEREAS on October 13, 2011, the Downtown Task Force recommended changes to the original Downtown Incentive Reimbursement Grant Program; and WHEREAS on November 1, 2011, the Economic Development Partnership Board rec- ommended the changes to the City Council of the City of Denton, including changing the name of the program to "Downtown Reinvestment Grant Program" (the "Program"); and WHEREAS, on December 6, 2011, the City Council approved said changes to the Down- town Reinvestment Grant Program; and WHER1,AS, the Owner will be the Owner, as of the Effective Date (as hereinafter de- fined), which status is a condition precedent, of certain real property, more particularly described in Exhibit "A" attached hereto and incorporated herein by reference and made a part of this Agreement for all purposes (the "Premises") as of the Effective Date; and WHEREAS, on the 10t" day of January, 2017, Owner submitted an application for rein- vestment with various attachments to the City concerning the contemplated use of the Premises (the "Application"), which is attached hereto and incorporated herein by reference as Exhibit "B"; and WHEREAS, the City Council finds that the contemplated use of the Premises, the Con- templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development in accordance with the Macintosh HD: I Jsers.johnwitheTsir:1.,ibrary:Cache,;:'I'emporar.yltei-ns:Outlook Ternp:112 W. Oak agreernent4-27-17Am NOW, THEREFORE, the City and Owner for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: 1. TERMS AND CONDITIONS OF REIMBURSEMENT A. In consideration of and subject to the Owner meeting all the terms and conditions of reimbursement set forth herein, the City hereby grants the following reimbursement: I A reimbursement in an amount not to exceed $25,000 attributable to new capital investments, as hereinafter described, being constructed on the Premises. B. A condition of the Reimbursement is that, by May 9, 2018 (subject to force majeure delays not to exceed 180 days), a capital investment in the form of fa4ade work, as de- scribed in Exhibit "B" be constructed on the Premises. For the purposes of this paragraph, the term "force maJeure" shall mean any circumstance or any condition beyond the control of Own- er, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the above- mentioned thresholds. C. The term "capital investment" is defined as the construction, renovation and equipping of fagade work, as described in Exhibit "C" (the "Improvements on the Premises", the "Contemplated Improvements" or "Improvements") to include costs related to the construction. of the Improvements on the Premises. D. A condition of the Reimbursement is that the Contemplated Improvements be constructed and the Premises be used substantially in accordance with the description of the pro- ject set forth in Exhibit 1113". ment. E. Owner agrees to comply with all the terms and conditions set forth in this Agree- 2. CONDITION OF REIMBURSEMENT A. At the time of the award of the Grant, all ad valorem real property taxes with re- spect to said property owned within the City shall be current. B. Prior to the award of the Grant, Grantee shall have constructed the Capital Im- provements as specified in Exhibit "B". EM Macintosh [iD:t,tsers-.johnwitbers.ir:Library:Caelies:Temrx)rar.ylteffis:Outtook TernpA 12 W, Oak agruernent4-27-17.doc 1 RECORDS AND EVALUATION OF PROJECT A. The Owner shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial information related to construction of the Improvements to insure that the Improvements are made and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Owner's business operations. 4. GENHZ41 PROVISION1 A. The City has determined that it has adopted guidelines and criteria for the Down- town Reinvestment Grant Program agreements for the City to allow it to enter into this Agree- ment containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Policy, and have been and will be undertaken in coordination with Owner's corporate, public employee, and business relations requirements. C. Neither the Premises nor any of the Improvements covered by this Agreement are owned or ]eased by any member of the City Council, any member of the City Planning and Zon- ing Commission of the City, or any member of the governing body of any taxing units joining in or adopting this Agreement. D. In the event of any conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control.. 5. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via facsimile: GRANTEE: Withhicks LLC Attn: John Withers 1400 Dallas Drive Denton, Texas 76205 Fax No. 940.320.1201 Page 3 CITY: Todd Hileman, City Manager City of Denton 215 East McKinney penton, ,texas 76201 Fax No. 940.349.8596 Maciwoih Hl):IJsers.,johtiwilliersjr:t,ibrary:C�aches:'I'emporaryltenis:Outlook'l'entp:112 W. Oak agreemcnt4-27-17.doc 6. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of an enabling ordinance at its meeting on the 2nd day of December, 2014, authorizing the Mayor to execute this Agree- ment on behalf of the City, a copy of which is attached hereto and incorporated herein by refer- ence as Exhibit "D". 7. SEVERABULTY In the event any section, subsection, paragraph, sentence, phrase or word is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word, In the event that (i) the term of the Grant with respect to any property is longer than allowed by law, or (ii) the Grant applies to a broader classification of property than is allowed by law, then the Grant shall be valid with respect to the classification of property abated hereunder, and the portion of the term, that is allowed by law. 8. OWNER STANDING Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any litigation questioning or challenging the validity of this Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. This Agreement shall be construed under the laws of the State of Texas and is fully per- formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den- ton County, 10. ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. 11. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. EM .Macintosh I 11):UsersJohnwithersjr: Librasy:CachesTernporaryl lerns: Outlook 'Femp:112 V Oak agreemcnt4-27-1 ?.doe �W ja N This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, but all of which together shall constitute one and the same instrument, 13. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 14. NO JOINI'VENTURE Nothing contained in this Agreement is intended by the parties to create a partnership or joint venture between the parties, and any implication to the contrary is hereby disavowed. 15. AMENDMENT This Agreement may be modified by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not orig- inally necessary to this Agreement. 16. FORCE MAJEURE If, because, of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other causes beyond the control of either Party, either Party isnot able to perform any or all of its obli- gations under this Agreement, then the respective Party's obligations hereunder shall be sus- pended during such period but for no longer than such period of time when the party is unable to perform. This Agreement is executed to be effective 30 days after the executed date of the day of 2017, (the "Effective Date") by duly authorized officials of the City and Owner. PASSED AND APPROVED this the day of._,_. 2017. CITY OF DENTON TODI) HILLMAN CITY MANAGER Page 5 . .. . .... . .... Macintosh IID:Users.johnwithersjr:Library:Caches:'Femporaryltems:Outlook Temp: 112 W. Oak agreement 4-27-17.doe ATTEST: JENNIFER WALTERS, CITY SECRETARY [In APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: JZHTN IT�HRS. MEMBER STATE OF TEXAS COUNTY OF DENTON Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared Todd Hileman, City Manager for the City of Denton, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was executed for the purposes and consideration therein expressed. Given under my hand and seal of office this the day of . ..... 2017. Notary Public in and for the State of Texas My Commission Expires:_, Page 6 Macintosh 14D:Ugcrs.johnwithersjr:1,ibraty:Caches:l'emporaryltems:Outlook Temp:112 W. Oak Agreement 4-27-17.doc Before me, the undersigned authority, a Notary Public in and for said State of Texas, on this day personally appeared John Withers, Member, known to me to be the person who signed and executed the foregoing instrument, and acknowledged to me that this instrument was execut- ed for the purposes and consideration therein expressed. Given under my hand and seal of office this the 01 '1 day of 2017. Notary Public in and for the State of My Commission Expires: 400pt"014 Page 7 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEYlf `IN File #: ID 17-576, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Economic Development DCM: Bryan Langley Date: May 9, 2017 SUBJECT Consider adoption of an ordinance approving a grant application from Tim Beaty, representing 421 E. Oak, from the Downtown Reinvestment Grant Program not to exceed $25,000; and providing for an effective date. The Economic Development Partnership Board recommends approval (7-0). BACKGROUND The building at 421 E. Oak (Monroe Pearson Building) is near the Euline Brock Transit Center. This building was most recently Fantasia Fans, and was originally a grocery warehouse in the early 1900s. The owner, Tim Beaty, wants to restore it, by building a dock on the west face of the building, replacing overhead doors and all original openings with windows, cleaning and preserving the original brick facade and placing awnings in the original locations on the east and south sides. The interior of the building will preserve all brick walls and openings. New areas will be constructed for offices, a chapel, banquet hall, catering kitchen, restroom facilities and foyer. The building will be upgraded with a fire suppression system, electrical, plumbing and mechanical systems. The entire building will be retrofitted for structural support of a new roof system including skylights to mimic the originals. A new fire hydrant will be installed on Oak Street. Upgrades to the transformer will be made as part of an agreement with Denton Municipal Electric. The new tenant, Walters Wedding Estates, will operate an event center, which can accommodate approximately 1,200 occupants. It's expected that many of the events will be weekend wedding celebrations, which will require overnight stays for many of the guests. Guests will create additional revenue for local restaurants, hotels, and businesses. During the April 18 work session, Councilmembers requested more information about parking at 421 E. Oak. Since this development is within the Central Business District, it is exempted from the parking requirements in Subchapter 14 of the DDC per DDC 35.14.3.B. Within the CBD, only residential uses are required to provide additional parking when development or redevelopment occurs. The analysis provided with the event center Site Plan shows that within the total "Old Mill" development at 421 E. Oak, 413 E. Oak, and 420 E. McKinney (all under the same ownership), 269 parking spaces will be provided and shared among the businesses in the development, most of which operate Monday -Friday from 8 a.m. to 5 p.m. Further, the owner and the event center tenant plan to encourage guests to park at the Med Park DCTA station and take the train into Downtown. City of Denton Page 1 of 3 Printed on 5/5/2017 powered by I._eggl;>karI File #: ID 17-576, Version: 1 For comparative purposes, based on the current tenants and uses in all of these buildings, about 295 spaces would be required if these developments were outside of the CBD. RECOMMENDATION Staff recommends approval of the ordinance awarding a grant in the amount of $25,000. ESTIMATED SCHEDULE OF PROJECT The project will be completed by October 2017. PRIOR ACTION/REVIEW (Council, Boards, Commissions) April 18, 2017 The City Council reviewed two grants, 112 W. Oak and 421 E. Oak, during a work session. Council directed staff to present a $20,000 budget amendment to raise the grant fund balance from $30,000 to $50,000 in order to fully fund the two grants. April 12, 2017 The Economic Development Partnership Board reviewed the request and recommends a grant in the amount of $25,000 (7-0). March 9, 2017 The Downtown Task Force reviewed the request and recommends a grant in the amount of $25,000 (11-0). FISCAL INFORMATION Council initially granted expenditure authority of $100,000 for the Downtown Reinvestment Grant for FY 2016 -2017. A budget amendment of $20,000 has been presented to Council. Expenditures to date are: $20,000 JT Clothiers (paid) $25,000 Armadillo Ale (approved, waiting on completion of project) $25,000 Denton County Brewing (approved, waiting on completion of project) $30,000 Balance The total investment in this project is $1,215,673. With a $25,000 grant, the return on investment is 1:48. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Economic Development Related Goal: 3.3 Promote a business -friendly environment EXHIBITS 1. Ordinance and agreement City of Denton Page 2 of 3 Printed on 5/5/2017 powered by I._ag;gl;>karI File M ID 17-576, Version: 1 2. Presentation Respectfully submitted: Caroline Booth Director of Economic Development Prepared by: Julie Glover Economic Development Program Administrator City of Denton Page 3 of 3 Printed on 5/5/2017 powered by I._ag;gl;>karI sAlegahftr d0CLHnents\ordinances\1 7\421 e. oak ordinance.doc ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, APPROVING A GRANT APPLICATION OF TIM BEATY, REPRESENTING 421 E. OAK STREET, FROM THE DOWNTOWN REINVESTMENT GRANT PROGRAM NOT TO EXCEED $25,000; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive Reimbursement Program by Ordinance No. 2007-072; and WHEREAS, on December 6, 2011, the City Council approved changes to the Downtown Reinvestment Grant Program by Ordinance No. 2012-001; and WHEREAS, Tim Beaty applied for a $25,000 grant; NOW, THEREFORE, 'THIS COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the Agreement attached hereto from Tim Beaty in an amount not to exceed $25,000 from the Downtown Incentive Reimbursement Grant Program. SECTION 2. The City Manager, or his designee, is hereby authorized to execute the Agreement and to carry out the duties and responsibilities of the City, including the expenditure of funds as provided in the Agreement. SECTION 3. 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 MM APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: C: t.'sm Windowslun"rKw"ary Internet Files'CoMM 0u1hw&AXVMSXDLJ42i E. Oak Agivvrwnit doc DOWNTOWN REIMBURSEMENTGRANT INCENTIVE AGREEMENT "Mis Downtown Reinvestment Grant Agreement (the "Agreement-) is entered into by and between the City of Denton, 'I'"exas (the "City"), duly acting herein by and through its Mayor, and Tin -i Beaty, representing 421 E. Oak Street (the "Grantec"'), duly authorized to do business and in good standing in the State ofTexas, duly acting herein by and througji its autbor.. ized offiecr. WHEREAS, the City has adopted at resolution which provides that it elects to be eligible to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria governing downtown reinvestment grant incentive agreements known as the Denton Downtown R.cinvestment Grant Incentive Prograrn.- an(] WHEREAS, on the arta (lay of April, 2007. the City Council of Denton, Texas (the "City ouncil") adopted the Denton Downtown Incentive Reiniburseinent Program (the "Prograrn"), a copy of which is on file in the City ofDcriton Economic Development Office and which is in- corporated herein by referen=, and WHEREAS, the Denton Downtown Incentive Reimbursement program policy consti- rutes appropriatc "guidelines and criteria" governing downtown reinvestment grant incentive agreements to be entered into by the C ity; and Wf-UtEAS on Octobcr 13, 2011, the Downtown 'Task Force recommended changes to the original Downtown Incentive Reimbursement Grant Prograni., and WFIEREAS on November 1, 2011, the Econornic Development Partrict-s-hip Board rec- onunendcd the changes to the City Council of the City ol"Denton, including changing the name ofthe program to "Downtown Reinvestment Grant Program" (the "Program"), and W HER EAS, on December 6, 2011, the City ouncil approved said changes to the Down- town Reinvestment Grant Program, and WfiEREAS, the Owner will be the Owner, as of the Effective Date (as hereinafter de- firied), which status, is a condition precedent. of certain real property, more particularly described in Fxhibit "A" attached hereto and incorporated herein by reference, and inadc a part of this Agreement for all purposes (the "Premises") as ofthe Effective Date; and WHERFAS, on the 28"" (Jay of"February, 2017, Owner submitted an application for rein- vestinent with various attachments tea the City concerning the contemplated Use c)fthc Premises (the "Application"), which is attached hercto and incorporated herein by reference as Exhibit 1113'% , and WHEREAS, the City Council finds that, the contemiplated use of the Premises, the Con- teniplated Improvements (as liercinafler defined) to the Premises as set forth in this Agreemoit, and the other ternis hereol'are consistent with encouraging development in accordance with the C Usm; blemel Files Coment OtMcokAXVMSXWA42f F Oak Agremmadoc PUrposes and are in compliance with the Ordinance and Prograrn and similar guidefirws and cri- teria adopted by the City and all applicable lawa, NOW, THEREFORE, the City and Owner for and in consideration of the prerniscs and the promises contained herein do hereby contract, covenant, and agree as follo\vs: 1. TERMS AND CONDITIONS 01"REIMBURSEMENT A. In consideration of and subject to the Owner ineeting all the tenris and conditions ot'reirribursernent set tbrth herein, the City hereby grants the following reimbursement: A reimbursement in an arrioUnt not to cxceed S25,000 attribUtable tea new capital investments, as herejualler described, being constrUdCd On tile Premises. K A condition of the Reimbursement is that, by May 9, 2018 (subJect to kirce majeure delays, not to exceed 180 days), as capital investment in the f6rin offayadc work , as de- scribed in Exhibit "B" be constructed on the Premises, For the purposes of" this paragraph, the terin "force nia ' jeure" shall ineaac n any circurnstne or any condition beyond the control of'Own- er, as set tenth in Section X "Force Majeure- which makes it impossible to niect the above- mention"J thresholds. CThe tCnn "capital investment" is defined as the construction, renovation and eqUipping of fawade work, as described in Exhibit "C" (the "Iniproverrients on the Premises", tile "Contemplated Improvements" or "Improvements") to include costs related to the construction of the Improvements on the Premises, D. A condition of the Reimbursement is that the (701ACTIlplated Improvements be constructed and the Premises be used substantially in accordance with the description ofthe pro- ject set t6rth in J."xhibit "B". E,, Owner agrees to comply with all the leans and conditions set forth in tills Agree- nient. 2. CONDITION OF RFIMf3LTRSFMEN"l' A. At the dine of the award of the Grant, all ad valorem real property taxes with re- spect to said Property owned kvithin the City shall be current. 13, Prior to the award of (fie Grant., Grantee shall have constructed the Capital ]in.- provernents as specified in Exhibit "B". CA,.,w,crs tbeaty�ApliData"[.A)Cal,Micft)�ic)ft Wigukm�lonpmaro Imemel, F0eqT'onlent.Oulkwok AXVMsXDU'421 E, Oak AgeonenlAm 3. RECORDS AND EVAl-UATION OFPROJUIT A. The Owner shall provide access and authorize inspection of the Premises by City employees, and allow sufficient inspection of financial intbrination related to constructi(,ni ofthe Improvements U) insure that the Iniprovernents are made and the thresholds are met according to the specifications and conditions of this AgTeervient, Such inspections shall be done in a way that will not interfere with Owner's business operations, 4. GENERAL PROVISIONS A, The City has determined that it has adopted guidelines and criteria for the Down- town Reinvcstnicrit Grant Progrrarn ap!vements for the City to allow it to enter into this Agrce- ment containing the terms set fi)rth herein. 1K The City has detennined that procedures fifllowed by the City conform to the re- quirements of` the Code and the Policy, and have been and will be undertaken in coordination with, Owner's corporate, public cinployee, and business relations requirements. C, Neither the Prernises; nor any of the Improvcinents covered by this Agreement are owned or leased by any member of the City ('"ouncil, any member of the City Planning and Zon- ing ('701111nission of the City, or, any member of the governing body ofmy taxing unitsJoining in or adopting this Agree rrient. DIn the event ofany conflict between the City zoning ordinances, or other City or- dinances or regulations, and this Agreement, such ordinances or regulations shall control, 5, NarICE All notices called fior or required by this Agreement shall be addressed to the following, or such other party, or address as either party designated in writing, by certified mail postage pre- pare, by hand delivery or via fiacsirnile- GRANTEE: Tirn Beaty 421 E. Oak Street Denton, Texas 76201 Em Todd Hilernan, City Manager City of Denton 215 East McKinney Denton, 'Texas 76201 Fax No, 940,349,8596 C tNero. iNtoty Apl)Ukmi t ocal biternm Files E Oak Ngreemom doc 6. CITY COUNCIL ALYTHORIZATION This Agreement was authorized by the Clity Council by passage of an, enabling ordinance at its meeting on the 2tid (lay of Deeember, 2014, authorizing the Mayor to execute this Agree- ment on bcha,flfofthe City, a copy of which is attached hereto and incorporated herein by ret'cr- crice as Exhibit "D". 7 SEVIERABIlLTY In the event any section, subsection, paragraph, sentence, phrase or word is field invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as ifthe parties intended at all times to delete said invalid section, subsection, para- graph, sentence, phrase, or word. In the event that (i) the Icrm of the Grant with respect to ally, property is longer than allowed by law, (m- (ii) the Grant applies to a broader classification of property than is allowed by law, then the Grant shall be valid with respect to the classification ot' property abated hercunder, and the portion of the term, that is allowed by law, 8 OWNER STANDING Owner, as as party to this Agreement, sliall be deemed as proper and necessary party in any litigation questioning or challeaging the validity ofthis Agreement or any of the underlying or- dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. 9 APPLICABLE LAW "Phis Agreement shall be c(,nistrued under the laws of the State of Texas and is fully per- formable in Denton County. Texas, Venue for any aCti011 Under this Agreement shall be in Den - toll County, 10, ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the pal -- ties with respect to the transaction contemplated in this Agreement. H. BINDING This .Aga-cernelit shall be binding on the pailies and the respective successors, assigns, heirs, and legal iLlm-esentatives, ( renijunat)r Wermo F 0,akAgrrmwnLdoe 12. COUN'TERPARTS This Agrecinent may be executed in COLInterparts, each of which shall be deemed in orig- inal, but call of which together shall constitute one and the saine instrument, 13. SECTION AND OTHER HEADINGS Section or other headings contained in this Agreement are for reference purposes only arid slia.11 not affect in any way the meaning or interpretation of this Agreemcnt, 14, NO JOIN'I'VENTURF,' Nothing contained in this Agreement is intended by the parties to create j partnership or joint k"Criture between tile parties, and any implication to the contrary is hereby disavowed. 15. AMENDMENT This A&7eement may be rnodified by the parties hereto to include other provisions Miich could hwe originally been included in this Agreement or to delete provisions that were riot orig- inally necessary to this Agreement, 16. FORCF MAHURE,, If'' bec ause of f.lood, fire, explosions, civil disturbances, strikes, war, acts ot'God. or other causes beyond the control OfeithCr party, either Party is not able to perform any or all of its obli- gations under this Ageement, their the respective Party's obligations hereunder shall be sus- pended during such period but for no longer than such period of brie when the party is Unable to pertbrm. Tbis Agreenient is executed to be effective 30 days afler the CXCCUted date of the day of'authorized officials ofthe 0 1 t -1 Y I __ ___ , 2016, (the "Effective Date") by duty and Owner, PASSED AND APPROVED this the &Y 201T CJTY OF DENTON TODD HILEMAN CITY MANAGER Page 5 C bot,met Heskontent Oullook AWMISALAP1421 F Oak Agrpvnent.doc ATTES'P . [ENNIFTR WALTERS, CITY SECRETARY m APPROVED AS TO LEGAL FORM: AA.R(.)N LEAL, INTERIM CITY ATTORNEY BY 'X �TC 11 ovofltKE� ri '-"K Pagc 6 C Wmdvw""Tonxirary Intertm Ffle.w,Contcm Outhwk AXVMSXDU421 F, Oak Agreevnencdm, STATE OFTEXAS COUNTY OF DENTON Before me, the widersigned authority, as Notary Public in and for said State ofTexas. on this day pers(-'mally appeared Todd Hileman, City Manager fi)r the City of Denton, known to rric to be the person who sigped and executed the foregoing instrument, mid acknowledged to tile that this irlStrUillent was executed for the ptalioses and consideration therein expressed, Given tinder my hand and seal of office this the..., .- day of", . 1, 2017 Notary Public in and ftn- tile state orrexas My Comi-nission Expires: CA hitmet FOes Coment Oudook� AXVNISXDU 421 E, Oak, AgnTmcntdoc STAI"I"OFTEXAS COUNTY OF DENTON Before me, the undersigned authority, a Notary Public in and for said State, ot"I'exas, on this day personally appeared Tim Beaty, Owner, knoNvii to me to be the person who signed and executed the floregoing instrument, and ackjiowlcdgcd to me that this instrument was cxecutcd I'or the 1.)urposes and consideration therein exprcssed, Ckly Of 2017 stat a¢ as ELaAgETH �,iwwv Puiooc, STate ot Texas Notary Public in and flor the =14APDOEWIN r��s�or My ComrniOori L -x0fes fes State of' ty, fk-I-- ixo July 12, 2017 J I , 20 7 -- My, Commission Expires:— -L - 11'age 8 CITY OF DENTON DOWNTOWN REINVESTMENT GRANT PROGRAM APPLICATION City of Denton Department of Economic Development 215 E. McKinney Street Denton, TX 76201 940-349-7732 www.cityofdenton.com Julie. glover(q-)ci!yofdenton.qom Downtown Reinvestment Grant Program Policy 6 Please return completed with necessary attachments and signature to Economic Development office, 215 E. McKinney no later than 5 pin by the first Monday of each month. If you have any application questions, please contact the Economic Development Program Administrator at 940- 349-7732. Applicant Name Tim BeatDate y _ii`usi71i"ess­_Name_- 02.28.17 I — TNT Holdings -Mailing Address Tim Beaty Builders, Inc P.O. Box 68 Denton, Texas 76202 Contact Phone 940.387.3275 Email Address tbeaty@tbbuilders.com Building Owner (if different from applicant) Historical/Current Building Name Monroe Pearson Building Project Site/Address 421 E. Oak Street Denton, Texas 6201 Type of Work: (check all that apply) Paint Only Fapde & Building Renovation Signage Awnings Utility Upgrades Impact Fees Details of Planned Improvements relating to Grant Request (attach additional information if necessary) Reference attached sheet titled, "Details of Planned Improvement." Downtown Reinvestment Grant Program Policy 7 Details ofPlanned Improvement: 'Tim Beaty/TNT Holdings is the owner and project managerforthe renovation and rehabilitation of 421 E.Oak Street also known asthe Monroe Pearson Building. The building was originally agrocery warehouse in the early 1900's. The project which is in the DTIP area proposes to completely renovate the structure into aDowntown Event Center. Plans have been drawn torehabilitate the building facades and toreplace and repair the docks per current building codes. The exterior renovation will include building a dock on the west face of the building, repairing and renovating the south dock enhanced with ADA ramp and Stair to front door, replacing overhead doors and all original openings with new windows, cleaning and preserving original brick veneer and placing awnings in original locations on the east and south sides. The interior ofthe building will preserve all brick walls and openings. New areas will beconstructed for offices, chapel, banquet hall, catering kitchen, restroom facilities and foyer. The building will be upgraded with new fire suppression system, electrical, plumbing and mechanical systems. The entire building will be retro -fitted with a super structure for structural support of a new roof system including sky -lights tomimic the original roof system. Impact fees have been paid aopart ofthe permit package. Anew fire hydrant will beinstalled onOak Street. Upgrades to the transformer will be made as part of the permit agreement with DME. A fire lane turn around was provided in the parking lot to accommodate the city's fire department. Mr, Beaty intends to bring the vacant building and the lot it occupies back to life with a totalbuilding renovation, new landscape and pedestrian sidewalk nnOak Street. How will this project benefit Downtown? Reference attached sheet titled, "Project Benefits." Project Expenditures Estimated Costs Grant Requested Fagade/Building Rehab ) 6 $17,000.00 Awnings l6, 060 $ 8,000m Signs $ 5,600.00 Impact Fees $ .00 Utility Upgrades $ 389,303.00 Totals 476919476 TOTAL COST OF PROPOSED PROJECT $ TOTAL GRANTREQUEST (May not exceed 50% of TOTAL COST up to $25,000) $ 1,215,673.00 $ 25,000.00 Attach with all required color samples of paint, awning/canopy, sign design, etc., as ivell as photographs of building's exterior facade, roof acrd foundation. 02.28.14 Applicant's Signature Date Downtown Reinvestment Grant Program Policy 8 Project Benefit: The Event Center will accommodate approximately 1200 occupants including parking. k,sexp*cte6 many of the events will be weekend wedding celebrations which will necessitate overnight stays for some ofthe guests. Guests will create additional revenue for restaurants, hotels and businesses in Denton. Tim Beaty, owner of TNT Holdings, owns four buildings in close proximity along the railroad between McKinney Street and Hickory Street. The Old K8ill Building was renovated as ahistorica| building and OW Mill Village which contains three buildings were also renovated into downtown retail and restaurant sites. |ntotal, the four buildings house 13businesses and 2apartments. The new Event Center will share the 269 parking spaces available at the completion of the project along with a few additional spaces nnOak Street created bythe project. The owner ofthe building, Tim Beaty, worked closely with city staff during the design phases ofthe project and agreed to provide safe pedestrian access through his properties in a "sunset easement agreement" until timethe city can reroute it's pedestrian way inthis area. This pedestrian way will connect D[TAtothe Bell Avenue corridor inasafer route. The renovation of the vacant property will result in a significant increase in property and sales taxes. Tim Beaty, as owner of TNT Holdings, spent over 20 years renovating this area to accommodate growth in the downtown area benefiting many who own small local businesses, shop local businesses and enjoy the popular coffee shop Ieca. DOWNTOWN REINVESTMENT GRANT AGREEMENT FORM Please complete and return with Downtown Reinvestment Grant Application to Economic Development office, 215 E. McKinney no later than 5 pin by the first Monday of each month. If you have any questions, please contact the Economic Development Program Administrator at 940- 349-7732. 1 have met with the Economic Development Program Administrator, and I have read and fully understand the Downtown Reinvestment Grant procedures established by the Denton City Council. I intend to use this grant program for the aforementioned renovation projects to advance the efforts of revitalization and historir, preservation of Denton's historic downtown. I have not received, nor will I receive insurance monies for this revitalization project. I understand that if I am awarded a Downtown Reinvestment Grant by the City of Denton, any deviation from the approved project may result in the partial or total withdrawal of the grant. (If I am awarded a reinvestment grant for fayade, awning or sign work and the fagade, sign or awning is altered for any reason within one (1) year from construction, I may be required to reimburse the City of Denton immediately for the full amount of the grant.) Tim Beaty Builders, Inc. BusinesslOrganfration Name Tim Beaty 02.28.17 Aplilicaut's Signature Printed Nante Date Tim Beaty 02.28.17 Building Owner's Signature (if differentfront applicant) Printed Nante Date ------------------------------------------------------------------------- * -------- * ................ This section is to be completed by Economic Development staff Date considered by DTTF Recommendation Staff Signature Date considered by City Manager Recommendation City Manager Signature Date considered by E.DPB Recommendation Staff Signature Downtown Reinvestment Grant Program Policy 9 � Clean brick & repair mortar asrequired � Remove paint from brick excluding Lettering oLtnp � Repair Dock, add steps and ADA ramp Preserve all decorative brick trim atwindows and doors m Remove brick from old openings onEast side —fill with storefront 0 Replace all glass missing from small windows Clean and preserve brick work Construct New Awnings over New Entrance doors • Replace overhead garage door with store front glass SNOIIVA3'13 0 bfi; LIJI:)NV Z -s D "J .0 ivdnimuDw 1911 AILNID INIA] 111W (110 9 � rczK,ms zozgz svxm 'N01 N:10 R9 xaH old DNI 'smiaiinoAivie vqi.L I p L) 0 V) z k. z 0 V) V) Ln 0 t" U (i z k--� z go z Lu. i i i uj L) 0 V) z k. z 0 V) V) Ln 0 t" U (i z k--� 9 "LWWO MM SVX.0NUIMM 99 XOS '9'd :)NI ("XIIIng kiV]g WIi NYId 9NDVIVd NIISVW MIND INIAI 111W aIO M. ---------- ---------- czi� �j z I I V - CL. W w In F- z a < ---------- - - - - - - ----------- 0 a- FTMff� Lo'ej w -4nN-4AV -1-13g issf�� ho czi� �j z I I V - CL. W w In F- z a < ---------- - - - - - - ----------- 0 a- FTMff� Lo'ej w -4nN-4AV -1-13g ".. I ...... Y"l DNI 'ssmins Aivn va Ja)UO:) jUaA3 11!W Plo 10 11, all Hill I I L R E m ,ah O CC LY" All 10, yj 'IQ pg jj HT JN!t.21 4 p Al' m Mpplftl, "o 4'r M Customer Name: TNT Properties Project Name: Uonroe Event Center Date: January 25, 2017 Estimator: D Morton Cost Code Description of Work TOTAL FAqADEIBUILDING REHAB Fabrication 12,500 Demolition window Installation openingsi'Deteriorated wood 20,000 20,000 TOTAL COST Brick Restoration 25,000 25,0001 WindowfTransorri!Ext Doors 62,653 62,653 Preservation of Exist Sign Painting, Exte6or 25,8" 25,890 ............. Structural Steel 295,000: 295,000 Roof system 173,570 173,570 Foundation 202,657 202,657 TOTAL COST 804,770.00 UTILITY UPGRADES Plumbing 87,600 87,600 Electrical 293,160 293.160 Fite Water/Tap, FH 8,543 8,543 TOTAL COST 389,303.00 GRAND TOTAL COST 1,216,673.00 421 E. Hickory St. Denton, TX 76201 940,387.3275 AWNINGS Fabrication 12,500 12,500 Installation 3,500 3,500 TOTAL COST 16,000.00 SIGNS Preservation of Exist Sign 5,600 5,600 TOTAL COST 5,600,00 UTILITY UPGRADES Plumbing 87,600 87,600 Electrical 293,160 293.160 Fite Water/Tap, FH 8,543 8,543 TOTAL COST 389,303.00 GRAND TOTAL COST 1,216,673.00 421 E. Hickory St. Denton, TX 76201 940,387.3275 Water: Sewer: Road: Fee Transmittal for Commercial Development Only Project Name: Old Mill Event Center Project Number: SP16-0023 Road Impact Fee Zone: E Water Tap Size(s): 6" Per Approved Site Plan Water Tap Feels): $3800 See Notes, if applicable Domestic Meter Size(s): n/a Per Approved Site Plan Irrigation Meter Size(s): n/a Per Approved Site Plan Water Meter Fee(s): n/a See Notes, if applicable Header Fee(s): n/a See Notes, ifapplicable Impact Fee: n/a See Notes, ifapplicable Impact Fee Credit: n/a See Notes, ifapplicable Net Impact Fee: n/a Notes: BI TO CONFIRM METER SIZE WITH PILUMBING PLANS UPON PERMIT ADD $4773.00 for new hydrant Domestic Meter Size(s): n/a Per Approved Site Plan Sewer Tap Size(s): n/a See Notes, ifapplicable Sewer Tap Fee(s): n/a See Notes, ifapplicable Impact Fee: n/a See Notes, ifapplicable Impact Fee Credit: n/a See Notes, if applicable Net Impact Fee: n/a See Notes, if applicable Notes: 61 TO CONFIRM METER SIZE WITH PLUMBING PLANS UPON PERMIT Impact Fee: n/a Notes: Parking Lot: Fee: $720 Notes: Standard Fee City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEN' `IN File #: ID 17-611, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services CM: Todd Hileman DATE: May 9, 2017 SUBJECT Consider approval of a resolution of the City of Denton, Texas evidencing no objection to the proposed new construction of The Standard at MedPark Station, L.P.; and authorizing such other actions necessary or convenient to carry out this resolution; and providing for an effective date. BACKGROUND At the City Council meeting on May 2, 2017, staff presented a request from the Denton Housing Authority (DHA), in partnership with a private developer, Ojala Holdings, for the Council to consider resolutions of no objection for two 4% tax credit housing developments. One of the developments (The Standard at MedPark Station) is proposed to be a 263 unit multi -family development consisting of one, two, and three bedrooms. The other (The Hudson at Medpark Station) is a 160 unit Senior Development consisting of one and two bedrooms. Both of these development projects have gone through the development review and planning and zoning process and have all approvals needed. Ojala plans to partner with the DHA on these developments, which means the developments would be exempt from property taxes. In December of 2016, Ojala obtained an Encouragement Letter from the Department of Housing and Urban Development (HUD) to proceed with the developments. HUD is going to provide debt financing for the construction. If Ojala does not submit full application materials to them by May 17, 2017, Ojala will have to start the process over at an additional cost (upwards of $100,000). They are seeking the resolutions of non - opposition so that they can complete and submit their application to HUD. DISCUSSION Request for Information At the May 2 meeting, the City Council asked a number of questions to Ojala and the DHA. As a follow-up from the questions asked on Tuesday night, staff sent an e-mail to Sherri McDade, the Executive Director of the DHA, on Thursday requesting more information by the morning of Friday, May 5, to include in this agenda information sheet with the resolutions of non -opposition. The following was requested: • Specific plan for how funding from this project would be allocated by the DHA; • Plan of how the DHA would regularly report to the City Council on how the funding was being utilized in Denton; • Provide an answer if the development has internet access; • Provide a description of previous contact with the school district and a letter from the school district City of Denton Page 1 of 4 Printed on 5/5/2017 powered by I._eggl;>karI File #: ID 17-611, Version: 1 with their position on this project; and • Financial projections for the development in total and on a per unit basis, including the projected taxes foregone. DHA responded that they would be unable to provide the detailed additional information in the time required, but provided a letter in response (Exhibit 1). Other Taxing Entities Staff reached out to Denton ISD Superintendent Jamie Wilson to inquire about the school district's position on tax credit request for this development. Although the next regularly scheduled board meeting is not until May 9, Superintendent Wilson offered the following thoughts on demographics. The Standard at MedPark Station would be located in the Pecan Creek attendance zone. The existing apartments within this zone have been yielding between 0.3 and 0.59 students per unit. Given that this planned development would offer tax credit units the yield will be on the higher side. The Standard with 263 units would likely yield between 125-150 total students once fully occupied. About 50% of these student would be elementary and assigned to Pecan Creek Elementary. Pecan Creek is currently expected to be at capacity within 4 years as is; this development would certainly accelerate it. The Hudson at MedPark Station, located in the same area, would not have an impact on student enrollment due to it being age restricted. Staff also reached out to Denton County Judge's Office on their position on the tax credit request for these developments, but have not heard back yet. Tax Assessment Comparable To develop financial projections for the loss of property taxes over a period of time, the developer assumed the Standard / Hudson at MedPark Station property would be assessed at a similar value to Providence Place, a nearby tax credit property (see Exhibit 2 for their assumptions and model). The 2016 total improvement value for Providence Place was utilized in their model with a total value of $8,104,193, or $27,945 per unit (based upon 290 units). The preliminary 2017 assessed value of Providence Place has been released per the Denton Central Appraisal District's website (<htips://www.dentoncad.com/home/details?search=306721>). Please see below history of the assessed value and note that 2017 is still preliminary. It is likely that the 2017 preliminary assessed value could be appealed by the property owner and modified. Table 1. Assessed Value History for Providence Place Year Total Improvement Value Total Improvement Value Y increase in1636,314 and Non- omesite alue Appraised Value Assessed Value % increase in Assessed Value 2017* 14,544,551 9% 1,090,824 15,635,375 15,635,375 70% 2016 8,104,193 % 1,090,824 9,195,017 9,195,017 8% 2015 7,404,193 4% 1,090,824 8,495,017 8,495,017 52% 2014 4,515,427 14,473,646 4% 1,090,824 5,606,251 15,109,960 5,606,251 0% 2013 4,697,231 12% 909,020 5,606,251 5,606,251 10% 2012 4,200,940 6% 909,020 5,109,960 5,109,960 0% 2011 19% P5,109,960 -17% City of Denton Page 2 of 4 Printed on 5/5/2017 powered by I- g;gl;>karI File #: ID 17-611, Version: 1 12010 x$5,489,337 1 x$636,314 x$6,125,651 x$6,125,651 1 1 assessed values for 2017 Although the final 2017 assessed value for Providence Place is unknown at this time, the 2017 assessed value will likely be higher than 2016, and therefore, the developer's cost per unit assumption utilized to calculate the loss of property taxes may be low. Simply using the preliminary 2017 Total Improvement Value of $14,544,551, the per unit value for Providence Place would be $50,153.62. Using the developer's same model, with 423 units in the proposed MedPark development, the total improvement value would be $21,214,983 (423 units x $50,153.62) with an estimated sum of $8,062,098 in foregone taxes over a 15 -year period. Again, because that 2017 value is preliminary, that is the high side; however it demonstrates the effect of the per unit price used in the model as the developer's original estimate of foregone taxes over a 15 -year period was $4,514,413. Developments The proposed developments are located northwest of the Mayhill Road and Colorado Boulevard intersection Exhibit 3). It comprises the westernmost area, located at the terminus of Hudsonwood Drive, and is approximately 20.49 acres. The developments will be located on both the north and south side of Hudsonwood Drive and will feature two different complexes of apartments, as reflected on the Proposed Site Plan (Exhibit 4 ). Ojala initially intended to combine the two complexes into one development, but has decided to develop them instead into two separate complexes with their own entrances and amenities. Ojala Holdings will asset manage the project once complete and oversee a national third party management company who will run the day to day management of the property. The Standard at MedPark Station The subject tract is located northwest of the Mayhill Road/Colorado Boulevard intersection. It comprises the westernmost area, located at the terminus of Hudsonwood Drive. The Standard will be located on the north side of Hudsonwood Drive and will feature four three-story multi -family buildings. The project is a 263 unit multi -family complex including: • 43 one -bedroom units; • 135 two-bedroom units; • 85 three-bedroom units. The development has 1, 2 and 3 bedroom units ranging in size from 647 - 1,070 Square Feet. Rents average $776, $923, and $1,057 for a 1, 2, and 3 bedroom, respectively. The Hudson at MedPark Station The subject tract is located northwest of the Mayhill Road/Colorado Boulevard intersection. It comprises the westernmost area, located at the terminus of Hudsonwood Drive. The development will be constructed south of Hudsonwood Drive. The Hudson apartments will be age restricted for independent senior living. The Hudson will feature two, three-story buildings with a mixture of one and two bedroom units. The proposed buildings are both approximately 34 feet tall, and the density of units for this lot will be 24.06 dwelling units per acre. The total number of units will be 160, which is 106 units less than the maximum that would be permitted for the lot acreage. Rents average $776 for one bedroom units and $923 for 2 bedroom units. OPTIONS City of Denton Page 3 of 4 Printed on 5/5/2017 powered by L.ag;gl;>karI File #: ID 17-611, Version: 1 • Approval of the resolution as presented • Deny approval of the resolution ESTIMATED SCHEDULE OF PROJECT If awarded tax credits by TDHCA, construction is scheduled to begin during the first quarter of 2018 and should be completed by the third quarter of 2019. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Presentations of information and discussion regarding the tax credit application process and the Hudson at MedPark Station and the Standard at MedPark Station development has taken place at the City Council work session on May 2, 2017. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Safe, Liveable & Family -Friendly Community Related Goal: 4.2 Seek clean and healthy neighborhoods in Denton FXU RITC Exhibit 1 - Letter from DHA May 4, 2017 Exhibit 2 - Memo from May 1, 2017 Exhibit 3 - Site Location Map Exhibit 4 - Site Plan Exhibit 5 - Resolution of No Objection (for The Standard at MedPark) Respectfully submitted: Bryan Langley Deputy City Manager Prepared by: Sarah Kuechler Assistant to the City Manager City of Denton Page 4 of 4 Printed on 5/5/2017 powered by I._ag;gl;>karI Denton Housing Authority -------------- --------- ------------------------------------- - -------------- L372M NUMM 215 E. McKinney Street Denton, TX 76201 Re: Resolutions for Developments Dear Ms. Kuechler, DHA is in receipt of your request dated May 4, 2017 for answ�6rs to additional questions following.the City Council meeting held on May 017, with a required due date of by 9:00 am. The answers to most of these questions have been asked and answered and backup documentation and information has been provided to Council and City staff on several occasions. My records indicate: OctoberA8, 2016, February 7 Ith & �k 21st, 2017, and finally on Ma'y'2, 2017. N TM mv, Section 8 Pecan Place Hentage Oaks 940/383 1504 940/484-9535 940/383-1506 '225 Mlsoiri St. , DcriRicn, Texas 716205 -9401383-3039 - Fax 9401383 2035 E-mafl ACa dentonhousingauthority.com 121 *Please note: Any funding not used for the Voucher Program will be used to fund the reserve for purchase option for Standard & Hudson. **DUE TO THE TIMING OF THIS RESPONSE, THE PROPOSED LIST OF FUNDING HAS NOT GONE BEFORE THE DHA BOARD 2. The City of Denton has a staff liaison, Barbara Ross that receives DHA Board of Commissioner's reports, agendas, and minutes for all monthly and Special called meetings. We will continue to provide her with the same information. We will provide you with a report of any funds allocated to United Way for Community Impact Initiatives as they are approved by our Board annually. 3. Yes, there will be internet access. 4. DHA and City staff have spoken to the Superintendent previously, and as of today have requested a written letter as the Council has requested. 5. DHA provided the financial information regarding these developments to City staff as reported and reviewed at the May 2, 2017 Council Work Session. According to the Mayor and Council at the meeting on May 2"d, these Resolutions would be placed on the Council agenda for May 91". If for some reason they are not, please notify me as soon as possible. Thank you, Sherri McDade Chief Executive Officer c;a w v sir,. DATE: May 1, 2017 DEPARTMENT OF COMMUNITY AFFAIRS 215 E. McKinney * Denton, TX 76201 * 940-349-8509 MEMORANDUM TO: Todd Hileman, City Manager FROM: John Cabrales, Director of Community Affairs SUBJECT: Information on Denton Housing Authority — Ojala Tax Credit Development Below is information in response to questions asked by council regarding the partnership between the Denton Housing Authority (DHA) and Ojala Holdings on two, 4% tax credit developments. All the information was provided by DHA and Ojala. Both DHA and Ojala plan to be present at tomorrow's Work Session discussion to answer any further questions. What are the differences between a 9% Housing Tax Credit development and a 4% Housing Tax Credit development? The Texas Department of Housing and Community Affairs (TDHCA) administers two different housing tax credit programs in the State of Texas; a 9% and 4% program. Housing tax credits are used to help finance the construction, acquisition and/or renovation of affordable housing units. • 9% housing tax credit program: o VERY competitive program -- In 2017, 85 applications were submitted in the DFW region, of which eight may be funded (less than 10% success rate). o Applications are funded based on detailed scoring criteria established by TDHCA -- all developers `compete' against one -another. o Local units of government can affect the points of an applicant from their jurisdiction by approving a resolution of "Opposition", "Non -Opposition", or "Support." o Typically, a 9% award will provide an equity contribution to the development equal to approximately 70% of the total development costs. 4% housing tax credit program: o Non-competitive program that favors good site selection over an opaque set of application rules. o Applications are funded based on hitting detailed criteria established by TDHCA. o Local units of government must approve a resolution of "Non -Opposition" for an application to be considered. o Typically, a 4% award will provide an equity contribution to the development equal to approximately 30% of the total development costs -- significantly lower than a 9% deal, thus additional financial creativity is required (tax exemptions, soft loans, forgivable grants, etc.). What are the deal points in the partnership agreement between DHA and Ojala? • DHA and Ojala will serve as co -developers o Ojala will manage the pre -development, development and construction process o DHA has consent/approval rights on all major decisions • Developer Fee split 65/35 between Ojala/DHA - $1,925,000 to DHA • Cash Flow split of 50/50 - $2,977,423 to DHA • DHA to retain the Right of First Refusal (ROFR) purchase option in year 15 (can purchase the property from the partnership) What are the financials for DHA in the agreement? • $4,902,423 in total income = $1,925,000 (developer fee) + $2,977,423 (cash flow), over a 15 year period. What does DHA plan to do with the revenue gain from this agreement? • DHA plans to further its core mission to provide quality affordable housing and promote programs to assist families toward self- sufficiency. DHA's waiting list has 3,000 families currently, but it is closed, and they will not be able to reissue any vouchers for the next year. • Reserve some funding for the purchase option on the development after the 15 year period. • Use some funds towards their voucher program, due to reduced funding from the Department of Housing and Urban Development HUD. They estimate they will lose approximately 170 vouchers for next fiscal year. • They plan to use some funds for pre -development costs towards the replacement of their remaining senior housing property. • Fund Community Partnership with United Way and its partner agencies to address Community Impact issues relating to DHA's mission and goals, (i.e. Security Deposit, Homelessness & veteran housing issues, and programs for families to better enhance their lives). • Backfill federal budget cuts, allowing DHA to provide housing options for about 170 individuals and families that would otherwise be homeless • Help funding on-site services and programs for the MedPark residents — such services include: o Social events (potluck dinners, game night, movie nights, birthday parties) o After school childcare services and programs o Health screenings and nutritional courses o GED preparation classes o Annual income tax preparation (offered by an income tax prep service) o Quarterly financial planning courses (homebuyer education, credit counseling, investing advice, retirement plans) o Arts, crafts, and other recreational activities o Guest lectures o Food pantry/common household items What specifically is in it for the community as a whole? • Residents — Both seniors and families will gain access to quality housing that is in extremely high -demand. o Denton has a large supply/demand imbalance of quality, affordable rental housing - a market study conducted last year (surveying 53 apartment communities) indicated that the Denton rental market was 98.9% occupied o Denton has not had additional affordable units added to its inventory in several years and is projected to create a demand for 3,937 new rental units over the next five years • Community — The development will provide revenue to DHA (backfilling the reduction in HUD funding) and allow DHA to provide housing options for 100 plus individuals and families that would otherwise be homeless City of Denton — The City will receive fees related to construction of the development, i.e. Permit fees, inspection fees, and impact fees Local businesses — Gain access to consumers that can spend more of their incomes on goods and services vs. rent o 6,807 income qualified families and 2,531 income qualified seniors currently live in Denton -- families and seniors that qualify already live in the proposed development -- currently, they are just paying a very high % of their income on rent (reducing their discretionary spending allowances) What is the loss of the property taxes of a period of time (15 years)? • Current land value o The land has an agricultural tax exemption and is valued at $247,672 o $115,030 in tax payments over a 15 -year period • As developed into a workforce housing property o $4,514,413 over a 15 -year period, or $300,960 per year o This assumes that the property is assessed at a similar value to Providence Place, the nearby tax credit property. his://www. dentoncad.comlhome/details? search= 306721 o Providence Place is assessed at $27,945 per unit, less than 1/4 of the value ascribed to market rate properties in Denton ■ Arch at Denton - 2010 Construction — 210 units —Assessed at $185,000 per unit https://www. dentoncad.comlhome/details? search=209329year=2017 ■ Lodge at Pecan Shores — 2011 Construction — 192 units — Assessed at $130,000 per unit his://www.dentoncad.comlhome/results towner id=780461&searchby �1 See attached Property Tax Analysis for more information. What is a clear definition of workforce (or affordable) housing? What does it looks like for Denton? Workforce housing = Housing that is restricted to residents (families and seniors) that earn at or below a certain % of Area Median Income (AMI). AMI in Denton County = $71,700. Restrictions at MedPark are set at 60% of AMI, thus residency will be restricted to tenants earning at/below $43,020 per year. • Rents are restricted at $776 - $1,057 for 1, 2, and 3 bedroom units. The goal of workforce housing is to provide quality housing options at restricted rental rates, so that residents do NOT pay more than -30% of their income on rent. How much workforce housing is currently available in Denton? Current rental market in Denton consists of 82 total rental properties, of which 7 are workforce (8.5% of total). Currently, the workforce properties are 99% occupied. How much workforce housing is needed? The current occupancies sit at about 99%, and there have been no workforce units added since 2007, and the projected growth in Denton over the next 5 -years will likely create a demand for an additional 3,937 rental units. Therefore, the demand for new rental units is extremely high. Q 0 0 l O N I m W 0 t I O C O� lm O o ama��c°,,ma N , n s m m� n W W m o o a N N m C�� o m m .-I .-i .-i .-i .-i N N N N N N N N N Q1 v m 0 �n O m W o o m a m a �rl c °N' r- Lr L m n a a n W W m o o a N N m C n C N N N N N N N N N N N N N N 01 N L u U Vf y o 0 . . . . . . . . . . . . . o LL � c O O N c m m 0 O N w � H tD I� W m O ti N m C �I1 tD I� W m O ti w 8 N N N N N N N N N N m m - O O O O O O O O O O O O O O O O ! 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N N N N N N N N N N N N N N N N a S16-0008 Site Location SITE N "_ E,d 0 155 310 620 Feet Parcels" DENTON Roads Development Services - GIS , �. Dzte:,,,,4/2016 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, enpineerinp or surveying purposes but rather for reference purposes. These maps are the property of the City Denton have been to the the Public Information Act. The City Denton the information No of and made available public based implied, are provided for the data herein, its use, or its interpretation. on of makes every efforto produce and publish most current and accurate Utilization ofthis map indicates understanding and acceptance of th is statement. possible. warranties, expressed or LFULLLJ LL �I II lil I z N� 0u IN o �l 1 II' I II II i Ilk- 10 � 11 I t I " LI'J J PRIMARY PRIVATE STREET O o F r r VIII ... i, J I, _ II. T11 I O YJ a � I�0 I u —-- w I Ln STOCKBRIDGE RD. OD N x L� I oo xrE�o �,nnn�nnn txn I -_ Sexal 'uo4uaa GF B 9 qac N g i uoa ae a �S �I dp W gN` a d p .� W paepue4S aul ao_ aaoo o;s V, i W V7 l 4 Sx �y I �i a' f aT � I g 1--1 I tlH3Nuroe III u h J >z h s i -- - . LFULLLJ LL �I II lil I z N� 0u IN o �l 1 II' I II II i Ilk- 10 � 11 I t I " LI'J J PRIMARY PRIVATE STREET O o F r r VIII ... i, J I, _ II. T11 I O YJ a � I�0 I u —-- w I Ln STOCKBRIDGE RD. OD N x L� I oo xrE�o �,nnn�nnn txn I -_ SUP REQUIREMENTS - SITE PLAN THE STANDARD AT MEDPARK STATION TOTAL PROJECT ACREAGE 10.29 AC TOTAL UNITS 263 DENSITY (DU/AC) 25.56 CURRENT ZONING RCC -D ESTIMATED TIME OF COMPLETION 3rd Quarter - 2019 UNITTYPE % UNITS NO. OF UNITS 1 BEDROOM 16.35% 43 2 BEDROOM 51.33% 135 3 BEDROOM 32.32 85 TOTAL UNITS 100% 263 GROSS FLOOR AREA FLOOR AREA RATIO TOTAL BUILDING AREA 311,512.55 SF 69.55% LEASING/AMENITY/MAIL 5326 SF - LOT COVERAGE PERCENT SQUARE FEET BUILDING FOOTPRINT 22.06% 103,838 PAVEMENT 33.40% 157,205 SIDEWALK 13.12% 61,766 POOL 0.77% 3,626 TOTAL IMPERVIOUS 69.36% 326,435 LANDSCAPE AREA 30.64% 144,208 ENVIRONMENTALLY SENSITIVE AREAS 0.00% 0 BUILDING TYPE STORIES HEIGHT BUILDING 1 3 341-011 BUILDING 11 3 341-011 BUILDING 111 3 341-011 BUILDING IV 3 34'- 0" TRASH ENCLOSURES N/A N/A BUILDING FRONTAGE (WITHIN 20 FEET OF FRONT PROPERTY LINE) DISTANCE PERCENTAGE FRONT PROPERTY LINE 705'-9" 100.00% TOTAL BUILDING FRONTAGE 360'-8" 51.10% PARKING CALCULATIONS UNIT NO. OF UNITS SPACES PER UNIT TOTAL 1 BEDROOM 43 1.5 65 2 BEDROOM 135 1.75 236 3 BEDROOM 85 2 170 TOTAL REQUIRED PARKING 1.86% 2,453 471 74.39% 98,293 TOTAL IMPERVIOUS 81.00% STANDARD LANDSCAPE AREA 19.00% 422 HANDICAP 0.00% 0 10 ON -STREET* 40 TOTAL PARKING PROVIDED 472 *IN COMPLIANCE WITH DENTON DEVELOPMENT CODE 35.14.5.A: "One off-street parking space credit for every two on -street spaces up to four credits, thereafter one space credit for each on -street parking space." REQUIRED PROVIDED BIKE PARKING 0 30 DETENTION TOTAL DETENTION ACREAGE 3.03 AC LOT COVERAGE PERCENT SQUARE FEET BUILDING FOOTPRINT 0.00% 0 PAVEMENT 4.75% 6,271 SIDEWALKS 1.86% 2,453 DETENTION/RETENTION 74.39% 98,293 TOTAL IMPERVIOUS 81.00% 107,018 LANDSCAPE AREA 19.00% 25,110 ENVIRONMENTALLY SENSITIVE AREAS 0.00% 0 0 N a' � n u - I iva o -F+UDSOPIWOOD RD UDSONWOOD RD. 5e& � n x sexal 'uolu@(j N x o qac uope4S >IaedpaW v 4e uospnH ayl w ysP ao_ d Ih A lal Io c �� p0 - Z Z w Z $ Z .-v O a g_C�oa �� - I� �T U a Gkll 84Z STOCKBRIDGE RD. C� O o z Lf) w z rx a -------------------------- o x 0 N a' � n u - I iva o -F+UDSOPIWOOD RD UDSONWOOD RD. ISI d Ih A lal Io c �� p0 - Z Z w Z $ Z .-v O a g_C�oa �� - I� �T U a Gkll STOCKBRIDGE RD. C� O o z Lf) w z rx 0 N a' SUP REQUIREMENTS - SITE PLAN THE HUDSON AT MEDPARK STATION TOTAL PROJECT ACREAGE 6.65 AC TOTAL UNITS 160 DENSITY (DU/AC) 24.06 CURRENT ZONING RCC -D ESTIMATED TIME OF COMPLETION 3rd Quarter - 2019 UNIT TYPE % OF UNITS NO. OF UNITS 1 BEDROOM 70.00% 112 2 BEDROOM 30.00% 48 TOTAL UNITS 100.00% 160 GROSS FLOOR AREA FLOOR AREA RATIO TOTAL BUILDING AREA 153,027.39 57.48% LEASING/AMENITY/MAIL 6,250.01 - LOT COVERAGE PERCENT SQUARE FEET BUILDING FOOTPRINT 17.61% 51,009 PAVEMENT 25.97% 75,201 SIDEWALKS 10.98% 31,797 RETENTION 17.31% 50,130 TOTAL IMPERVIOUS 71.87% 208,137 LANDSCAPE AREA 28.13% 81,459 ENVIRONMENTALLY SENSITIVE AREAS 0% 0 BUILDING TYPE STORIES HEIGHT BUILDING I 3 341-011 BUILDING II 3 341-011 BUILDING FRONTAGE (WITHIN 20 FEET OF FRONT PROPERTY LINE) DISTANCE PERCENTAGE FRONT PROPERTY LINE 705-10" 100.00% TOTAL BUILDING FRONTAGE 421'-6" 59.72% PARKING CALCULATIONS UNIT NO. OF UNITS SPACES PER UNIT TOTAL 1 BEDROOM 112 1 112 2 BEDROOM 48 1 48 TOTAL REQUIRED PARKING 160 STANDARD 156 HANDICAP 4 ON -STREET * 0 TOTAL PARKING PROVIDED 160 *IN COMPLIANCE WITH DENTON DEVELOPMENT CODE 35.14.5.A "One off-street parking space credit for every two on -street spaces up to four credits, thereafter one space credit for each on -street parking space." REQUIRED PROVIDED BIKE PARKING 0 0 E 0- >, E a >, ai o M o @ z sexal 'uoluap °a M uoi1e4S >1aedPaW W uospnH v 8 o o aul Pue paepue4S aul gp4P =a os L ju E 0- >, E a >, ai o M o @ S:\Legal\Our Documents\Resolutions\17\The Standard at MedPark Station.dou RESOLUTION NO. CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF DENTON, TEXAS EVIDENCING NO OBJECTION TO THE PROPOSED NEW CONSTRUCTION OF THE STANDARD AT MEDPARK STATION, L.P.; AND AU'T'HORIZING SUCH OTHER ACTIONS NECESSARY OR CONVENIENT TO CARRY OUR "PHIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The Standard at MedPark Station, LP (hereafter, "Applicant"), its successors, assigns or affiliates, has proposed the new construction of The Standard at MedPark Station consisting of approximately 263 units located at approximately 2100 S. Mayhill Road, Denton, Texas (the "Development"); and WHEREAS, Applicant, its successors, assigns or affiliates, has advised that it intends to submit an application to the Texas Department of Housing and Community Affairs ("TDHCA") for 4% low income housing tax credits for the Development; THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: In accordance with the requirements of Texas Government Code §2306.67071 and Texas Administrative Code § 10.204(4), it is hereby found that: 1. Notice has been provided by the Applicant to the City of Denton in accordance with Texas Government Code, §2306.67071(a); and 2. The City of Denton has had sufficient opportunity to obtain a response from the Applicant regarding any questions or concerns about the proposed Development; and 3. The City Council of the City of Denton has held a meeting at which public comment could be made on the proposed Development in accordance with Texas Government Code, §2306.67071(b); and 4. After due consideration of the information provided by the Applicant and public comment, the City Council of the Denton does not object to the proposed Application. 5 PASSED AND APPROVED this the day of 52017. CHRIS WATTS, MAYOR ATTEST: S:\Legal\Our Documents\Resolutions\17\The Standard at MedPark Station.docx ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEN' `IN File #: ID 17-612, Version: 1 Legislation Text AGENDA INFORMATION SHEET DEPARTMENT: Department of Development Services CM: Todd Hileman DATE: May 9, 2017 SUBJECT Consider approval of a resolution of the City of Denton, Texas evidencing no objection to the proposed new construction of The Hudson at MedPark Station, L.P.; and authorizing such other actions necessary or convenient to carry out this resolution; and providing for an effective date. BACKGROUND At the City Council meeting on May 2, 2017, staff presented a request from the Denton Housing Authority (DHA), in partnership with a private developer, Ojala Holdings, for the Council to consider resolutions of no objection for two 4% tax credit housing developments. One of the developments (The Standard at MedPark Station) is proposed to be a 263 unit multi -family development consisting of one, two, and three bedrooms. The other (The Hudson at Medpark Station) is a 160 unit Senior Development consisting of one and two bedrooms. Both of these development projects have gone through the development review and planning and zoning process and have all approvals needed. Ojala plans to partner with the DHA on these developments, which means the developments would be exempt from property taxes. In December of 2016, Ojala obtained an Encouragement Letter from the Department of Housing and Urban Development (HUD) to proceed with the developments. HUD is going to provide debt financing for the construction. If Ojala does not submit full application materials to them by May 17, 2017, Ojala will have to start the process over at an additional cost (upwards of $100,000). They are seeking the resolutions of non - opposition so that they can complete and submit their application to HUD. DISCUSSION Request for Information At the May 2 meeting, the City Council asked a number of questions to Ojala and the DHA. As a follow-up from the questions asked on Tuesday night, staff sent an e-mail to Sherri McDade, the Executive Director of the DHA, on Thursday requesting more information by the morning of Friday, May 5, to include in this agenda information sheet with the resolutions of non -opposition. The following was requested: • Specific plan for how funding from this project would be allocated by the DHA; • Plan of how the DHA would regularly report to the City Council on how the funding was being utilized in Denton; • Provide an answer if the development has internet access; • Provide a description of previous contact with the school district and a letter from the school district City of Denton Page 1 of 4 Printed on 5/5/2017 powered by I._eggl;>karI File #: ID 17-612, Version: 1 with their position on this project; and • Financial projections for the development in total and on a per unit basis, including the projected taxes foregone. DHA responded that they would be unable to provide the detailed additional information in the time required, but provided a letter in response (Exhibit 1). Other Taxing Entities Staff reached out to Denton ISD Superintendent Jamie Wilson to inquire about the school district's position on tax credit request for this development. Although the next regularly scheduled board meeting is not until May 9, Superintendent Wilson offered the following thoughts on demographics. The Standard at MedPark Station would be located in the Pecan Creek attendance zone. The existing apartments within this zone have been yielding between 0.3 and 0.59 students per unit. Given that this planned development would offer tax credit units the yield will be on the higher side. The Standard with 263 units would likely yield between 125-150 total students once fully occupied. About 50% of these student would be elementary and assigned to Pecan Creek Elementary. Pecan Creek is currently expected to be at capacity within 4 years as is; this development would certainly accelerate it. The Hudson at MedPark Station, located in the same area, would not have an impact on student enrollment due to it being age restricted. Staff also reached out to Denton County Judge's Office on their position on the tax credit request for these developments, but have not heard back yet. Tax Assessment Comparable To develop financial projections for the loss of property taxes over a period of time, the developer assumed the Standard / Hudson at MedPark Station property would be assessed at a similar value to Providence Place, a nearby tax credit property (see Exhibit 2 for their assumptions and model). The 2016 total improvement value for Providence Place was utilized in their model with a total value of $8,104,193, or $27,945 per unit (based upon 290 units). The preliminary 2017 assessed value of Providence Place has been released per the Denton Central Appraisal District's website (<htips://www.dentoncad.com/home/details?search=306721>). Please see below history of the assessed value and note that 2017 is still preliminary. It is likely that the 2017 preliminary assessed value could be appealed by the property owner and modified. Table 1. Assessed Value History for Providence Place Year Total Improvement Value Total Improvement Value Y increase in1636,314 and Non- omesite alue Appraised Value Assessed Value % increase in Assessed Value 2017* 14,544,551 9% 1,090,824 15,635,375 15,635,375 70% 2016 8,104,193 % 1,090,824 9,195,017 9,195,017 8% 2015 7,404,193 4% 1,090,824 8,495,017 8,495,017 52% 2014 4,515,427 14,473,646 4% 1,090,824 5,606,251 15,109,960 5,606,251 0% 2013 4,697,231 12% 909,020 5,606,251 5,606,251 10% 2012 4,200,940 6% 909,020 5,109,960 5,109,960 0% 2011 19% P5,109,960 -17% City of Denton Page 2 of 4 Printed on 5/5/2017 powered by I- g;gl;>karI File M ID 17-612, Version: 1 12010 x$5,489,337 1 x$636,314 x$6,125,651 x$6,125,651 1 1 assessed values for 2017 Although the final 2017 assessed value for Providence Place is unknown at this time, the 2017 assessed value will likely be higher than 2016, and therefore, the developer's cost per unit assumption utilized to calculate the loss of property taxes may be low. Simply using the preliminary 2017 Total Improvement Value of $14,544,551, the per unit value for Providence Place would be $50,153.62. Using the developer's same model, with 423 units in the proposed MedPark development, the total improvement value would be $21,214,983 (423 units x $50,153.62) with an estimated sum of $8,062,098 in foregone taxes over a 15 -year period. Again, because that 2017 value is preliminary, that is the high side; however it demonstrates the effect of the per unit price used in the model as the developer's original estimate of foregone taxes over a 15 -year period was $4,514,413. Developments The proposed developments are located northwest of the Mayhill Road and Colorado Boulevard intersection Exhibit 3). It comprises the westernmost area, located at the terminus of Hudsonwood Drive, and is approximately 20.49 acres. The developments will be located on both the north and south side of Hudsonwood Drive and will feature two different complexes of apartments, as reflected on the Proposed Site Plan (Exhibit 4 ). Ojala initially intended to combine the two complexes into one development, but has decided to develop them instead into two separate complexes with their own entrances and amenities. Ojala Holdings will asset manage the project once complete and oversee a national third party management company who will run the day to day management of the property. The Standard at MedPark Station The subject tract is located northwest of the Mayhill Road/Colorado Boulevard intersection. It comprises the westernmost area, located at the terminus of Hudsonwood Drive. The Standard will be located on the north side of Hudsonwood Drive and will feature four three-story multi -family buildings. The project is a 263 unit multi -family complex including: • 43 one -bedroom units; • 135 two-bedroom units; • 85 three-bedroom units. The development has 1, 2 and 3 bedroom units ranging in size from 647 - 1,070 Square Feet. Rents average $776, $923, and $1,057 for a 1, 2, and 3 bedroom, respectively. The Hudson at MedPark Station The subject tract is located northwest of the Mayhill Road/Colorado Boulevard intersection. It comprises the westernmost area, located at the terminus of Hudsonwood Drive. The development will be constructed south of Hudsonwood Drive. The Hudson apartments will be age restricted for independent senior living. The Hudson will feature two, three-story buildings with a mixture of one and two bedroom units. The proposed buildings are both approximately 34 feet tall, and the density of units for this lot will be 24.06 dwelling units per acre. The total number of units will be 160, which is 106 units less than the maximum that would be permitted for the lot acreage. Rents average $776 for one bedroom units and $923 for 2 bedroom units. OPTIONS City of Denton Page 3 of 4 Printed on 5/5/2017 powered by L.ag;gl;>karI File #: ID 17-612, Version: 1 • Approval of the resolution as presented • Deny approval of the resolution ESTIMATED SCHEDULE OF PROJECT If awarded tax credits by TDHCA, construction is scheduled to begin during the first quarter of 2018 and should be completed by the third quarter of 2019. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Presentations of information and discussion regarding the tax credit application process and the Hudson at MedPark Station and the Standard at MedPark Station development has taken place at the City Council work session on May 2, 2017. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Safe, Liveable & Family -Friendly Community Related Goal: 4.2 Seek clean and healthy neighborhoods in Denton FXU RITC Exhibit 1 - Letter from DHA May 4, 2017 Exhibit 2 - Memo from May 1, 2017 Exhibit 3 - Site Location Map Exhibit 4 - Site Plan Exhibit 5 - Resolution of No Objection (for The Hudson at MedPark) Respectfully submitted: Bryan Langley Deputy City Manager Prepared by: Sarah Kuechler Assistant to the City Manager City of Denton Page 4 of 4 Printed on 5/5/2017 powered by I._ag;gl;>karI Denton Housing Authority -------------- --------- ------------------------------------- - -------------- L372M NUMM 215 E. McKinney Street Denton, TX 76201 Re: Resolutions for Developments Dear Ms. Kuechler, DHA is in receipt of your request dated May 4, 2017 for answ�6rs to additional questions following.the City Council meeting held on May 017, with a required due date of by 9:00 am. The answers to most of these questions have been asked and answered and backup documentation and information has been provided to Council and City staff on several occasions. My records indicate: OctoberA8, 2016, February 7 Ith & �k 21st, 2017, and finally on Ma'y'2, 2017. N TM mv, Section 8 Pecan Place Hentage Oaks 940/383 1504 940/484-9535 940/383-1506 '225 Mlsoiri St. , DcriRicn, Texas 716205 -9401383-3039 - Fax 9401383 2035 E-mafl ACa dentonhousingauthority.com 121 *Please note: Any funding not used for the Voucher Program will be used to fund the reserve for purchase option for Standard & Hudson. **DUE TO THE TIMING OF THIS RESPONSE, THE PROPOSED LIST OF FUNDING HAS NOT GONE BEFORE THE DHA BOARD 2. The City of Denton has a staff liaison, Barbara Ross that receives DHA Board of Commissioner's reports, agendas, and minutes for all monthly and Special called meetings. We will continue to provide her with the same information. We will provide you with a report of any funds allocated to United Way for Community Impact Initiatives as they are approved by our Board annually. 3. Yes, there will be internet access. 4. DHA and City staff have spoken to the Superintendent previously, and as of today have requested a written letter as the Council has requested. 5. DHA provided the financial information regarding these developments to City staff as reported and reviewed at the May 2, 2017 Council Work Session. According to the Mayor and Council at the meeting on May 2"d, these Resolutions would be placed on the Council agenda for May 91". If for some reason they are not, please notify me as soon as possible. Thank you, Sherri McDade Chief Executive Officer c;a w v sir,. DATE: May 1, 2017 DEPARTMENT OF COMMUNITY AFFAIRS 215 E. McKinney * Denton, TX 76201 * 940-349-8509 MEMORANDUM TO: Todd Hileman, City Manager FROM: John Cabrales, Director of Community Affairs SUBJECT: Information on Denton Housing Authority — Ojala Tax Credit Development Below is information in response to questions asked by council regarding the partnership between the Denton Housing Authority (DHA) and Ojala Holdings on two, 4% tax credit developments. All the information was provided by DHA and Ojala. Both DHA and Ojala plan to be present at tomorrow's Work Session discussion to answer any further questions. What are the differences between a 9% Housing Tax Credit development and a 4% Housing Tax Credit development? The Texas Department of Housing and Community Affairs (TDHCA) administers two different housing tax credit programs in the State of Texas; a 9% and 4% program. Housing tax credits are used to help finance the construction, acquisition and/or renovation of affordable housing units. • 9% housing tax credit program: o VERY competitive program -- In 2017, 85 applications were submitted in the DFW region, of which eight may be funded (less than 10% success rate). o Applications are funded based on detailed scoring criteria established by TDHCA -- all developers `compete' against one -another. o Local units of government can affect the points of an applicant from their jurisdiction by approving a resolution of "Opposition", "Non -Opposition", or "Support." o Typically, a 9% award will provide an equity contribution to the development equal to approximately 70% of the total development costs. 4% housing tax credit program: o Non-competitive program that favors good site selection over an opaque set of application rules. o Applications are funded based on hitting detailed criteria established by TDHCA. o Local units of government must approve a resolution of "Non -Opposition" for an application to be considered. o Typically, a 4% award will provide an equity contribution to the development equal to approximately 30% of the total development costs -- significantly lower than a 9% deal, thus additional financial creativity is required (tax exemptions, soft loans, forgivable grants, etc.). What are the deal points in the partnership agreement between DHA and Ojala? • DHA and Ojala will serve as co -developers o Ojala will manage the pre -development, development and construction process o DHA has consent/approval rights on all major decisions • Developer Fee split 65/35 between Ojala/DHA - $1,925,000 to DHA • Cash Flow split of 50/50 - $2,977,423 to DHA • DHA to retain the Right of First Refusal (ROFR) purchase option in year 15 (can purchase the property from the partnership) What are the financials for DHA in the agreement? • $4,902,423 in total income = $1,925,000 (developer fee) + $2,977,423 (cash flow), over a 15 year period. What does DHA plan to do with the revenue gain from this agreement? • DHA plans to further its core mission to provide quality affordable housing and promote programs to assist families toward self- sufficiency. DHA's waiting list has 3,000 families currently, but it is closed, and they will not be able to reissue any vouchers for the next year. • Reserve some funding for the purchase option on the development after the 15 year period. • Use some funds towards their voucher program, due to reduced funding from the Department of Housing and Urban Development HUD. They estimate they will lose approximately 170 vouchers for next fiscal year. • They plan to use some funds for pre -development costs towards the replacement of their remaining senior housing property. • Fund Community Partnership with United Way and its partner agencies to address Community Impact issues relating to DHA's mission and goals, (i.e. Security Deposit, Homelessness & veteran housing issues, and programs for families to better enhance their lives). • Backfill federal budget cuts, allowing DHA to provide housing options for about 170 individuals and families that would otherwise be homeless • Help funding on-site services and programs for the MedPark residents — such services include: o Social events (potluck dinners, game night, movie nights, birthday parties) o After school childcare services and programs o Health screenings and nutritional courses o GED preparation classes o Annual income tax preparation (offered by an income tax prep service) o Quarterly financial planning courses (homebuyer education, credit counseling, investing advice, retirement plans) o Arts, crafts, and other recreational activities o Guest lectures o Food pantry/common household items What specifically is in it for the community as a whole? • Residents — Both seniors and families will gain access to quality housing that is in extremely high -demand. o Denton has a large supply/demand imbalance of quality, affordable rental housing - a market study conducted last year (surveying 53 apartment communities) indicated that the Denton rental market was 98.9% occupied o Denton has not had additional affordable units added to its inventory in several years and is projected to create a demand for 3,937 new rental units over the next five years • Community — The development will provide revenue to DHA (backfilling the reduction in HUD funding) and allow DHA to provide housing options for 100 plus individuals and families that would otherwise be homeless City of Denton — The City will receive fees related to construction of the development, i.e. Permit fees, inspection fees, and impact fees Local businesses — Gain access to consumers that can spend more of their incomes on goods and services vs. rent o 6,807 income qualified families and 2,531 income qualified seniors currently live in Denton -- families and seniors that qualify already live in the proposed development -- currently, they are just paying a very high % of their income on rent (reducing their discretionary spending allowances) What is the loss of the property taxes of a period of time (15 years)? • Current land value o The land has an agricultural tax exemption and is valued at $247,672 o $115,030 in tax payments over a 15 -year period • As developed into a workforce housing property o $4,514,413 over a 15 -year period, or $300,960 per year o This assumes that the property is assessed at a similar value to Providence Place, the nearby tax credit property. his://www. dentoncad.comlhome/details? search= 306721 o Providence Place is assessed at $27,945 per unit, less than 1/4 of the value ascribed to market rate properties in Denton ■ Arch at Denton - 2010 Construction — 210 units —Assessed at $185,000 per unit https://www. dentoncad.comlhome/details? search=209329year=2017 ■ Lodge at Pecan Shores — 2011 Construction — 192 units — Assessed at $130,000 per unit his://www.dentoncad.comlhome/results towner id=780461&searchby �1 See attached Property Tax Analysis for more information. What is a clear definition of workforce (or affordable) housing? What does it looks like for Denton? Workforce housing = Housing that is restricted to residents (families and seniors) that earn at or below a certain % of Area Median Income (AMI). AMI in Denton County = $71,700. Restrictions at MedPark are set at 60% of AMI, thus residency will be restricted to tenants earning at/below $43,020 per year. • Rents are restricted at $776 - $1,057 for 1, 2, and 3 bedroom units. The goal of workforce housing is to provide quality housing options at restricted rental rates, so that residents do NOT pay more than -30% of their income on rent. How much workforce housing is currently available in Denton? Current rental market in Denton consists of 82 total rental properties, of which 7 are workforce (8.5% of total). Currently, the workforce properties are 99% occupied. How much workforce housing is needed? The current occupancies sit at about 99%, and there have been no workforce units added since 2007, and the projected growth in Denton over the next 5 -years will likely create a demand for an additional 3,937 rental units. Therefore, the demand for new rental units is extremely high. Q 0 0 l O N I m W 0 t I O C O� lm O o ama��c°,,ma N , n s m m� n W W m o o a N N m C�� o m m .-I .-i .-i .-i .-i N N N N N N N N N Q1 v m 0 �n O m W o o m a m a �rl c °N' r- Lr L m n a a n W W m o o a N N m C n C N N N N N N N N N N N N N N 01 N L u U Vf y o 0 . . . . . . . . . . . . . o LL � c O O N c m m 0 O N w � H tD I� W m O ti N m C �I1 tD I� W m O ti w 8 N N N N N N N N N N m m - O O O O O O O O O O O O O O O O ! 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N N N N N N N N N N N N N N N N a S16-0008 Site Location SITE N "_ E,d 0 155 310 620 Feet Parcels" DENTON Roads Development Services - GIS , �. Dzte:,,,,4/2016 The City of Denton has prepared maps for departmental use. These are not official maps of the City of Denton and should not be used for legal, enpineerinp or surveying purposes but rather for reference purposes. These maps are the property of the City Denton have been to the the Public Information Act. The City Denton the information No of and made available public based implied, are provided for the data herein, its use, or its interpretation. on of makes every efforto produce and publish most current and accurate Utilization ofthis map indicates understanding and acceptance of th is statement. possible. warranties, expressed or LFULLLJ LL �I II lil I z N� 0u IN o �l 1 II' I II II i Ilk- 10 � 11 I t I " LI'J J PRIMARY PRIVATE STREET O o F r r VIII ... i, J I, _ II. T11 I O YJ a � I�0 I u —-- w I Ln STOCKBRIDGE RD. OD N x L� I oo xrE�o �,nnn�nnn txn I -_ Sexal 'uo4uaa GF B 9 qac N g i uoa ae a �S �I dp W gN` a d p .� W paepue4S aul ao_ aaoo o;s V, i W V7 l 4 Sx �y I �i a' f aT � I g 1--1 I tlH3Nuroe III u h J >z h s i -- - . LFULLLJ LL �I II lil I z N� 0u IN o �l 1 II' I II II i Ilk- 10 � 11 I t I " LI'J J PRIMARY PRIVATE STREET O o F r r VIII ... i, J I, _ II. T11 I O YJ a � I�0 I u —-- w I Ln STOCKBRIDGE RD. OD N x L� I oo xrE�o �,nnn�nnn txn I -_ SUP REQUIREMENTS - SITE PLAN THE STANDARD AT MEDPARK STATION TOTAL PROJECT ACREAGE 10.29 AC TOTAL UNITS 263 DENSITY (DU/AC) 25.56 CURRENT ZONING RCC -D ESTIMATED TIME OF COMPLETION 3rd Quarter - 2019 UNITTYPE % UNITS NO. OF UNITS 1 BEDROOM 16.35% 43 2 BEDROOM 51.33% 135 3 BEDROOM 32.32 85 TOTAL UNITS 100% 263 GROSS FLOOR AREA FLOOR AREA RATIO TOTAL BUILDING AREA 311,512.55 SF 69.55% LEASING/AMENITY/MAIL 5326 SF - LOT COVERAGE PERCENT SQUARE FEET BUILDING FOOTPRINT 22.06% 103,838 PAVEMENT 33.40% 157,205 SIDEWALK 13.12% 61,766 POOL 0.77% 3,626 TOTAL IMPERVIOUS 69.36% 326,435 LANDSCAPE AREA 30.64% 144,208 ENVIRONMENTALLY SENSITIVE AREAS 0.00% 0 BUILDING TYPE STORIES HEIGHT BUILDING 1 3 341-011 BUILDING 11 3 341-011 BUILDING 111 3 341-011 BUILDING IV 3 34'- 0" TRASH ENCLOSURES N/A N/A BUILDING FRONTAGE (WITHIN 20 FEET OF FRONT PROPERTY LINE) DISTANCE PERCENTAGE FRONT PROPERTY LINE 705'-9" 100.00% TOTAL BUILDING FRONTAGE 360'-8" 51.10% PARKING CALCULATIONS UNIT NO. OF UNITS SPACES PER UNIT TOTAL 1 BEDROOM 43 1.5 65 2 BEDROOM 135 1.75 236 3 BEDROOM 85 2 170 TOTAL REQUIRED PARKING 1.86% 2,453 471 74.39% 98,293 TOTAL IMPERVIOUS 81.00% STANDARD LANDSCAPE AREA 19.00% 422 HANDICAP 0.00% 0 10 ON -STREET* 40 TOTAL PARKING PROVIDED 472 *IN COMPLIANCE WITH DENTON DEVELOPMENT CODE 35.14.5.A: "One off-street parking space credit for every two on -street spaces up to four credits, thereafter one space credit for each on -street parking space." REQUIRED PROVIDED BIKE PARKING 0 30 DETENTION TOTAL DETENTION ACREAGE 3.03 AC LOT COVERAGE PERCENT SQUARE FEET BUILDING FOOTPRINT 0.00% 0 PAVEMENT 4.75% 6,271 SIDEWALKS 1.86% 2,453 DETENTION/RETENTION 74.39% 98,293 TOTAL IMPERVIOUS 81.00% 107,018 LANDSCAPE AREA 19.00% 25,110 ENVIRONMENTALLY SENSITIVE AREAS 0.00% 0 0 N a' � n u - I iva o -F+UDSOPIWOOD RD UDSONWOOD RD. 5e& � n x sexal 'uolu@(j N x o qac uope4S >IaedpaW v 4e uospnH ayl w ysP ao_ d Ih A lal Io c �� p0 - Z Z w Z $ Z .-v O a g_C�oa �� - I� �T U a Gkll 84Z STOCKBRIDGE RD. C� O o z Lf) w z rx a -------------------------- o x 0 N a' � n u - I iva o -F+UDSOPIWOOD RD UDSONWOOD RD. ISI d Ih A lal Io c �� p0 - Z Z w Z $ Z .-v O a g_C�oa �� - I� �T U a Gkll STOCKBRIDGE RD. C� O o z Lf) w z rx 0 N a' SUP REQUIREMENTS - SITE PLAN THE HUDSON AT MEDPARK STATION TOTAL PROJECT ACREAGE 6.65 AC TOTAL UNITS 160 DENSITY (DU/AC) 24.06 CURRENT ZONING RCC -D ESTIMATED TIME OF COMPLETION 3rd Quarter - 2019 UNIT TYPE % OF UNITS NO. OF UNITS 1 BEDROOM 70.00% 112 2 BEDROOM 30.00% 48 TOTAL UNITS 100.00% 160 GROSS FLOOR AREA FLOOR AREA RATIO TOTAL BUILDING AREA 153,027.39 57.48% LEASING/AMENITY/MAIL 6,250.01 - LOT COVERAGE PERCENT SQUARE FEET BUILDING FOOTPRINT 17.61% 51,009 PAVEMENT 25.97% 75,201 SIDEWALKS 10.98% 31,797 RETENTION 17.31% 50,130 TOTAL IMPERVIOUS 71.87% 208,137 LANDSCAPE AREA 28.13% 81,459 ENVIRONMENTALLY SENSITIVE AREAS 0% 0 BUILDING TYPE STORIES HEIGHT BUILDING I 3 341-011 BUILDING II 3 341-011 BUILDING FRONTAGE (WITHIN 20 FEET OF FRONT PROPERTY LINE) DISTANCE PERCENTAGE FRONT PROPERTY LINE 705-10" 100.00% TOTAL BUILDING FRONTAGE 421'-6" 59.72% PARKING CALCULATIONS UNIT NO. OF UNITS SPACES PER UNIT TOTAL 1 BEDROOM 112 1 112 2 BEDROOM 48 1 48 TOTAL REQUIRED PARKING 160 STANDARD 156 HANDICAP 4 ON -STREET * 0 TOTAL PARKING PROVIDED 160 *IN COMPLIANCE WITH DENTON DEVELOPMENT CODE 35.14.5.A "One off-street parking space credit for every two on -street spaces up to four credits, thereafter one space credit for each on -street parking space." REQUIRED PROVIDED BIKE PARKING 0 0 E 0- >, E a >, ai o M o @ z sexal 'uoluap °a M uoi1e4S >1aedPaW W uospnH v 8 o o aul Pue paepue4S aul gp4P =a os L ju E 0- >, E a >, ai o M o @ S:\Legal\Our Documents\Resolutions\17\The Hudson at MedPark Station.docx RESOLUTION NO. CONSIDER APPROVAL OF A RESOLUTION OF THE CITY OF DENTON, TEXAS EVIDENCING NO OBJECTION TO THE PROPOSED NEW CONSTRUCTION OF THE HUDSON AT MEDPARK STATION, L.P.; AND AUTHORIZING SUCH OTHER ACTIONS NECESSARY OR CONVENIENT TO CARRY OUT THIS RESOLUTION; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, The Hudson at MedPark Station, LP (hereafter, "Applicant"), its successors, assigns or affiliates, has proposed the new construction of The Hudson at MedPark Station consisting of approximately 160 units located at approximately 2102 S. Mayhill Road, Denton, Texas (the "Development"); and WHEREAS, Applicant, its successors, assigns or affiliates, has advised that it intends to submit an application to the Texas Department of Housing and Community Affairs ("TDHCA") for 4% low income housing tax credits for the Development; THE CITY COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES: In accordance with the requirements of Texas Government Code §2306.67071 and Texas Administrative Code § 10.204(4), it is hereby found that: 1. Notice has been provided by the Applicant to the City of Denton in accordance with Texas Government Code, §2306.67071(a); and 2. The City of Denton has had sufficient opportunity to obtain a response from the Applicant regarding any questions or concerns about the proposed Development; and 3. The City Council of the City of Denton has held a meeting at which public comment could be made on the proposed Development in accordance with Texas Government Code, §2306.67071(b); and 4. After due consideration of the information provided by the Applicant and public comment, the City Council of the Denton does not object to the proposed Application. PASSED AND APPROVED this the day of , 2017. CHRIS WATTS, MAYOR 5:\legal\Our Documents\Resolutions\17\The Hudson at Med Park Station.docx ATTEST: JENNIFER WALTERS, CITY SECRETARY am APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com IlEl l FON File #: ID 17-624, Version: 1 Legislation Text Agenda Information Sheet DEPARTMENT: Community Improvement Services CM: Todd Hileman Date: May 9, 2017 SUBJECT Consider adoption of an ordinance of the city of Denton, Texas amending certain provisions of chapter 1 and chapter 17 of the Denton code of ordinances, the Denton property maintenance code, including sections 1-11, 17-2, 17-37, 17-42, 17-112, 17-121, and 17-124 and adding section 17-3 to provide for code enforcement officer authority; providing for a severability clause, savings clause, and an effective date. BACKGROUND A review of Community Improvement Services' (CIS) legal authority to enforce current duties and assignments revealed the need for clarification and distinction of their mission and jurisdictional influence. Currently, CIS operates as a designee of the Code Official. Chapter 17 of the Denton Property Maintenance Code defines the Code Official as the Building Official. The CIS division has not been in the reporting structure of the Building Department since 2015. The establishment of independent legal authority for CIS is vital in the enforcement of nuisance violations outlined in Chapter 17, Texas Administrative Code Chapter 140, and the Texas Health and Safety Code Chapter 341 and 342. Current Operations Dangerous buildings Fences Political signs bt,iildiiig Trash carts Interior rentals Carports Stagnant water Vehicle violations iaaa�arg: aaa a:-ar�r �goils Vacant structures 1�oaralsid(., v(..uii or s Gar ag (. saks Tall grass / weeds Zoiiiii/ Minimum building standards Irrigation r�4(.,gghbor°hood vgl:alily Tree limbs Graffiti CO's Trash ROW maintenance sggils Outside storage / PODS ROW signs " kg w a airsin.ic,,dotis Under the current operations, duties and activity assignments have overlapped into technical and regulatory areas managed by other departments. Specific duties and activities identified falling into this category are City of Denton Page 1 of 3 Printed on 5/5/2017 powered by I-eg;gl;>karI File #: ID 17-624, Version: 1 highlighted in red above. The highlighted duties will be realigned within the appropriate department having official oversight. Below is a depiction of the changes. Realignment of Duties Building Inspections Planning Other Accessory building / structure Zoning / commercial Police - Carports Neighborhood vitality Roadside vendors Home occupations CO's Traffic Engineering - Garage sales Tall grass / weeds View obstructions Signs Tree limbs / clearing Inoperable vehicles The proposed ordinance provides for clear legal authority in conformity with applicable state laws and local mission alignment. The primary focus of duties will include health and safety nuisances outlined in state law and supported by local ordinance under the Property Maintenance Code. In coordination with Development Services, additional responsibilities have been identified as supplemental to these duties. The division of duties and codification of legal authority will provide stability and consistency to CIS in the performance of its duties to successfully abate health and safety nuisances. It will also provide an enhanced level of effectiveness and efficiency in the process of handling complaints and cases between Departments with a mutual vested interest, such as Planning and Building Inspections. The ordinance will clarify the limit of involvement for CIS in areas such as accessory structures, stop work orders, carports, home occupations, zoning, signs other than in the right of way, and Certificates of Occupancy. The new ordinance will specifically exclude code enforcement officers from the definition of code official to remove them from the responsibility allotted to the Building Inspections Department. There will be a new definition of code enforcement officer and the term will substitute for code official in several areas of the code in order to regain CIS' jurisdiction over its primary and supplemental focuses. For example, Sec. 17-37 allows enforcement by CIS of junked vehicles; Sec. 17-112(4) allows enforcement by CIS of weeds, trash and debris, and stagnant water; Secs. 17-121 and 17-124 (e) (1) allow enforcement by CIS of graffiti. Other provisions of the ordinance will limit CIS involvement in other department functions. Sec. 17-42 will be deleted to remove tree preservation and mitigation requirements from the Code of Ordinances since it is in the DDC and a Planning function. The following chart demonstrates the codified authority to perform duties reflected in the ordinance. Codified Authority Dangerous buildings Fences Graffiti Minimum building standards Trash carts ROW maintenance Vacant structures Stagnant water ROW signs Interior rentals Irrigation Political signs Outside storage / PODS Tall grass / weeds Junked vehicles Trash and debris Tree limbs / clearing Inoperable vehicles City of Denton Page 2 of 3 Printed on 5/5/2017 powered by L.ag;gl;>karI File #: ID 17-624, Version: 1 Lastly, the ordinance will affirmatively lay out all of the sections of code over which CIS officers should be in control. This narrowing of responsibility will allow CIS to focus its energy on true public nuisances within their area of expertise and allow the other departments to focus on their subject matter, making the processes more efficient and effective. RECOMMENDATION Staff recommends the City Council approve the proposed ordinance as presented. PRIOR ACTION/REVIEW (Council, Boards, Commissions) This item was included in a Legal Status Report to Council dated December 30, 2016. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Safe, Liveable & Family -Friendly Community Related Goal: 4.2 Seek clean and healthy neighborhoods in Denton EXHIBITS Exhibit 1 Ordinance Respectfully submitted: Laura Behrens Fire Marshal City of Denton Page 3 of 3 Printed on 5/5/2017 powered by I._ag;gl;>karI AN ORDINANCE OF THE CITY OF DENTON, TEXAS AMENDING CERTAIN PROVISIONS OF CHAPTER 1 AND CHAPTER 17 OF THE DENTON CODE OF ORDINANCES, THE DENTON PROPERTY MAINTENANCE CODE, INCLUDING SECTIONS 1-11, 17-2,17-37,17-42,17-112,17-121, AND 17-1.24 ANI) ADDING SECTION 17-3 TO PROVIDE FOR CODE ENFORCEMENT OFFICER AUTHORITY; PROVIDING FOR A SEVERABILITY CLAUSE, SAVINGS CLAUSE, AND AN EFFECTIVE DATE. WHEREAS, the City of Denton, Texas has previously implemented Chapter 1 and Chapter 17, "Property Maintenance Code" of the Code of Ordinances of Denton. Texas; and WHEREAS, it is the intention of the City to further refine and enhance the enforcement capabilities of the City's Code Enforcement Officers to better enforce minimum standards and abate public nuisances in order to serve the citizens of the City of Denton; and WHEREAS, the City is authorized to adopt these enforcement provisions by virtue of its Horne -Rule authority, the Texas Constitution, Chapters 54.035 and 214 of the Tex. Loc. Gov't Code, and Chapters 341-342 of the Tex. Health & Safety Code; and WHEREAS, the Council finds that it is necessary to declare the full jurisdictional authority of the City's Code Enforcement Officers for all purposes and such amendments are in the best interest of the citizens of the City of Denton; NOW THEREFORE; THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION I. The recitals contained herein are made a part of this Ordinance as if set forth. at length herein. SECTION 2. Chapter 1, Section 1-11 and Chapter 17 "Property Maintenance" of the Code of Ordinances of Denton, Texas is hereby amended by amending Sections 17-2, 1.7-37, 17-42, 17- 112, 17-121, and 17-124 and by adding Section 17-3 "Enforcement" as stated herein. SECTION 3. Chapter 1, Section 1-11 is hereby amended as underlined: "The City Manager is hereby authorized to issue citations into municipal court for any violation of this Code. Such authority is in addition to and cumulative of other enforcement remedies provided for in this Code or by law. It shall be unlawful for a person or corporation to intentionally and knowingly fail to appear in accordance with the terms of a citation issued hereunder, which was personally served on the person or corporation failing to appear." SECTION 4. The following sections of Chapter 17 of the Code of Ordinances of the City of Denton is hereby amended as underlined: a. In Section 17-2, the definition of "code official" is deleted and substituted therefor with the following definition: Page 1 of 4 "Code Official means the Building Official of the City of Denton or his/her designee charged with the administration and enforcement of this Chapter. Code Official does not include Code Enforcement Officer." b. In Section 17-2, the following definition is added as follows: "Code Enforcement Officer means an officer employed by the City who engages in Code Enforcement to prevent, detect, investigate, and enforce violations of laws regulating public nuisance, health, safety and welfare as specifically delegated by the City." c. In Section 17-37, the words "code official" is deleted and substituted therefore with "Code Enforcement Officer". d. In Section 17-112(d), the words "code official" is deleted and substituted therefore with "Code Enforcement Officer". e. In Section 17-121, the words "code official" is deleted and substituted therefore with "Code Enforcement Officer". f. In Section 17-124(e)(1), the words "code official" is deleted and substituted therefore with "Code Enforcement Officer". g. In Section 17-42, the section shall be deleted and substituted therefore as follows: "Maintenance of Trees in Right of Way and Irrigation. (a) It shall be unlawful for any owner or occupant of any property within the City to have trees and shrubs which have branches overhanging a public street or sidewalk. Trees along public rights-of-way shall be trimmed to a clearance height of 15 feet on the street side and 10 feet on the sidewalk side. This is measured from the curb line to the canopy branch. Trees may not constitute an obstruction to the vision of traffic. (b) It shall be unlawful for any owner or occupant of any property within the City to knowingly make, cause, or permit a use of water contrary to the Land and Landscape Irrigation and Water Waste Ordinance, as amended." h. In Section 17-62, the section shall be deleted and substituted therefore as follows: "Solid Waste Container Maintenance. The Code Enforcement Officer shall enforce Chapter 24, Article 1, of the Code of Ordinances of the City of Denton, as amended." i. Section 1.7-3 shall be added and state as follows: "Sec. 17-3. Enforcement. a. Code Enforcement Officers of the City of Denton are hereby authorized and directed to enforce only the following provisions in this Chapter: Sections 17-21, 17-34, 17-35, 17- 37, 17-40, 17-41, 17-42, 17-50, 17-60, 17-61, 17-62, 17-70, 17-80, 17-90, 17-100, 17-101, Page 2 of 4 17-112, 17-121, 17-122, 17-124, Chapter 17, Article XIII, Division 2, and Chapter 24, Article I. Code Enforcement Officers shall also have the authority to interpret these provisions and apply such interpretations to these provisions in the interest of public safety, health, and J�)erleral welfare. Code Enforcement Officers shall not have the authority to waive structural, fire or sound engineering requirements relative to public safety. Code Enforcement Officers shall not have the authority to inspect properties for compliance with Denton Development Code rules and regulations or Chapter 28 of the Code of Ordinances for the City of Denton. b. Code Enforcement Officers shall make, or cause to be made all of the inspections required to enforce the provisions in 17-3(a). Whenever necessary to make an inspection to enforce any of these provisions or whenever the Code Enforcement Officer has reasonable cause to believe that there exists in any structure or upon any premisesany condition or violation which makes such structure or premises unsafe by virtue of violations of these provisions, the Code Enforcement Officer as authorized b law ma enter such structure or premises at all reasonable times tqJns_p_eto ct thp same r or_ ---p— perform qqy d�q�im qs�ed uon the(Le Enforcement Officer under this section. If such structure or prepjiLe�s is occu ied, he/she shall first presence roper credentials and request entry, _p .-Lqp— and if such structure or premises is unoccupied, -he/she shall first make a reasonable effort to locate the owner or othqUgLsoRs having care or control of the structure o"rm premises .I— - and request If such entry is refused, the Code Enforcement Officer shall have recourse to every remedy provided by law to secure entry. c. Enforcement shall be in compliance with Sec. 17-196 herein. The imposition of penalties prescribed shall not preclude the City from instituting appropriate action to restrain, correct, or abate any violations of this Chapter." SECTION 5. Chapter 19, Section 1. 9-5 ("Authority to issue citations"), is hereby amended by deleting it in its entirety, as it conflicts with Chapter I., Section 1-11 ("Procedures for enforcement of Code"). SECTION 6. If any section, subsection, paragraph, sentence, clause, phrase, or word in this ordinance, or application thereof to any person or circumstances is held invalid by any court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of this Ordinance, and the City Council of the City of Denton, Texas hereby declares it would have enacted such remaining portions despite any invalidity. SECTION 7. Save and except as amended hereby, all of the provisions, sections, subsections, paragraphs, sentences, clauses, and phrases of the Code of Ordinances shall remain in full force and effect. SECTION 8. This Ordinance providing for a penalty shall become effective 14 days from the date of its passage, and the City Secretary is hereby directed to cause the caption of this Ordinance to be published twice in the Denton Record -Chronicle, the official newspaper of the City of Denton, Texas within 10 days of the date of its passage. Page 3 of 4 PASSED AND APPROVED this the day of , 2017. CHRIS WATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: AARON LEAL, INTERIM CITY ATTORNEY BY: Page 4 of 4