HomeMy WebLinkAbout20-504S:U.egal\Our pocumeirts\Resolutions�20�Incentive Policy Resolution ciean.docx
RESOLUTION NO. ZO-SO4
A RESOLUTION OF TI� CITY OF DENTON, APPROVING A POLICY FOR TAX
ABATEMENTS AND INCENTIVES TO ESTABLISH POLICIES, GUIDELINES, AND
CRITERIA GOVERNING TAX ABATEMENTS AND INCENTIVES; AND DECLARING AN
EFFECTIVE DATE.
WHEREAS, the City Council desires to promote economic development within Denton;
and
WHEREAS, the Property Development and Tax Abatement Act ("the Act"), Chapter 312,
Texas Tax Code allows the City to establish its own criteria for tax abatements; and
WHEREAS, the Act requires the City to establish guidelines and criteria prior to entering
into a tax abatement agreement; and
WHEREAS, guidelines and criteria adopted under the Act are eligible for two years from
the date adopted; and
WHEREAS, on June 6, 2000, the City Council approved guidelines and criteria, known as
the Denton Policy for Tax Abatements and Incentives ("Policy"); by passing Resolution No.
R2000-28; and
WHEREAS, the City previously adopted, amended, and reauthorized guidelines and
criteria for tax abatement by passing Resolution Nos. R90-18, R98-004, R2000-028, R2001-020,
R2003-021, R2005-057, R2008-003, R2010-009, R2012-009, R2014-016, R2015-042, R2016-
009; and
WHEREAS, on March 20, 2018, the City Council of the City of Denton approved the
current Policy by passing Resolution No. R2418-148; and
WHEREAS, the current Policy expires on March 20, 2020; and
WHEREAS, the City Council held a public hearing on March 17, 2020, as required by the
Act, to receive public feedback regaxding the proposed adoption of the Policy attached hereto as
Exhibit A and incorporated herein for a11 purposes; and
WHEREAS, the City Council deems it in the public interest to continue to be eligible far
participation in tax abatements and incentives and to adopt policies, guidelines, and criteria for tax
abatement and incentives by adopting the Policy attached hereto as E�ibit A and incorporated
herein for all purposes; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOVLES:
SECTION 1. The policies, guidelines, and criteria, set forth in Exhibit A, which is made a
part of this Resolution and incorporated herein for all purposes, is approved and adopted, and shall
be known as the Denton Policy for Tax Abatements and Incentives.
S:�I,egal\Our pocumexrts�Resolutions�20�Incentive Policy Resolution clean.docx
SECTION 2. From and after the effective date of this Resolution, the attached Denton
Policy for Tax Abatements and Incentives shall constitute the policies, guidelines, and criteria for
tax abatement and other incentive agreements for the City of Denton in accordance with Chapter
312 of the Texas T� Code.
SECTION 3. Pursuant to Texas Tax Code Section 312.002(c), the Denton Policy for Tax
Abatements and Incentives approved herein shall be effective for two (2) years from the date of
the apprdval of this R�soluti�n, during which time it may amended or repeal�zl by a vot� of 3/4 �f
the members of Council.
SECTION 4. The City Council reasserts its decision to become eligible to participate in
tax abatements and other incentives. The City Council provides certain tax abatements and
incentives to applicable business enterprises in variaus reinvestment zones which axe established
in the City in accordance with the applicable provisions of Chapter 312 of the Texas Tax Code and
in accordance with the Denton Policy for Tax Abatements and Incentives.
SECTION 5. The Denton Policy for Tax Abatements and Incentives shall be filed in the
official recards with the City Secretary and posted on the City's website in accordance with Texas
Tax Code Section 312.002(c-2).
SECTION 6. This Resolution shall become effective immediately upon its passage and
approval.
The motion to approve this resolution was made by �E/���,v �/,�,D,S'P�T� and
seconded by � t� �/ 2yt� �/ , the resolution was passed and approved by
the following vote [ � - � ]] :
Mayor, Chris Watts:
Gerard Hudspeth, District 1
Keely G. Briggs, District 2:
Jesse Davis, District 3:
John Ryan, District 4:
Deb Armintor, At Large Place 5:
Aye Nay
✓
✓
✓
�
Paul Meltzer, At Large Place 6: v
Abstain Absent
✓
✓
S:�L,egal\Our pocuments\Resolutions�201Incentive Policy Resolution clean.docx
PASSED AND APPROVED this the l%�K� day of � 2020.
ATTEST:
ROSA RI(�S, CITY SECRETARY
.
BY:
APPROVED AS TO LEGAL FORM:
AARON LEAL, CITY ATTORNEY
BY: •� �i �//�Gv�
��
L�
CHRIS WATTS, MAYOR
S:�L,egal\Our pocuments\Resolutions120�Incentive Policy Resolution clean.docx
EX�IT A
Denton Policy for Tax Abatements and Incentives
EXHIBIT A
CITY OF DENTON
POLICY FOR TAX ABATEMENT AND INCENTIVES
I.
GENERAL PROVISIONS
A. Denton's central location on the I-35 transportation corridor, educated population,
skilled workforce, and friendly business climate make it a natural place for business and
industry success. As the county seat of Denton County, Denton is a well-established city that is
currently enjoying rapid growth as companies and individuals are drawn to the opportunities
found here. The provisions of this policy apply in the city limits of the City of Denton, Texas,
(City) and any applicable extraterritorial jurisdiction of the City.
B. The City is committed to promoting economic growth and redevelopment that
expands and diversifies the tax base; creates quality jobs; enhances the quality of life for
residents; protects human health and the environment, and secures new customers for
municipal utilities. 'The City is a national model for public power through Denton Municipal
Electric, which currently incorporates at least 40 percent renewable energy into its portfolio
and has committed to obtaining 100% renewable energy by 2020. Local economic
development incentives serve as a tool for the City to use in accomplishing these objectives.
To provide a framework for the consideration of the use of public resources to stimulate
economic activity, the City has established this policy to align the use of incentives with the
City's strategic key focus areas and ensure a positive return on investment for the community.
Tax incentives, as described herein, are governed by Section 312 of the Texas Property Tax
Code and Chapter 380 of the Texas Local Government Code.
C. While this policy is used to outline the procedures and criteria for granting
incentives, nothing in this document implies that the City is under any obligation to provide an
incentive to any applicant. Further, though this policy provides a framework for evaluation of
incentive applications, every project will be considered on a case-by-case basis by the
Economic Development Partnership Board (EDPB) and the City Council. Incentives will not
be considered if a building permit for new construction has been issued, a permit for
commercial alterations has been issued, or purchase of an existing building has been executed
(excluding existing businesses seeking to expand).
D. The City has target industry sectors for recruitment that will be given priority
consideration: aviation/aerospace; advanced manufacturing; renewable energy; research and
development; information technology; supply chain for existing primary employers, and
significant consumers of municipal utilities. While these sectors will be given priority
consideration, not being in a target industry does not disqualify a business from applying for an
incentive if it meets other requirements under the policy.
E. Priority consideration may also be given for projects that further the following
City economic goals and objectives:
• Promoting business and community investment
• Expanding and diversifying the tax base
• Promoting public-private partnerships in investment
• Increasing jobs with wages above Denton County's median and average wage
• Increasing the percentage of jobs paying $75,000 per year
• Encouraging higher-skilled and knowledge-based jobs
� Causing infill redevelopment to reduce urban sprawl or to encourage other desirable
development
• Encouraging start-up and small businesses to promote entrepreneurship and innovation
• Generating new customers for municipal utilities
• Engaging in sustainable practices or activities
F. Only retail projects (retail stores, restaurants, shopping centers, or malls) that
offer unique goods, services, or a brand that is not currently offered in the Denton city limits
may be considered for incentives. This consideration is designed to help address unmet
demand and minimize retail leakage from the City into the surrounding trade area. A minimum
of $15 million in annual ta�able sales generated is required in order to be eligible for
consideration of a rebate of sales taxes. The City may rebate a portion of the sales taxes
generated not to exceed 50% of the sales tax receipts.
G. This policy is adopted under the authority of the Constitution and Laws of the
State of Texas and the City Charter of the City of Denton, Texas.
H. Applicants requesting incentives in Denton will be considered under the
provisions of this policy. Projects are evaluated with regard to their return on investment and
public benefit. This could include addition of ad valorem t� value, sales tax, quality jobs, or
other significant public benefit.
I. Every incentive agreement the City enters into is an investment for the
public benefit, and each project is considered with regard to its merit to the community
at large. Performance measures will be established for each project, and annual
compliance reporting must be completed by incentive recipients prior to receipt of
incentives.
J. The minimum threshold valuation for incentivized projects must be at least 95%
of the investment hard costs and projected jobs submitted in the application. Projects that do
not meet this minimum threshold or other performance measures under the incentive
agreement are subject to termination of the agreement and/or recapture of a portion or
all of the incentive value. Should an incentive recipient fail to meet performance
measures and to perform under the prescribed cures, incentives are subject to repayment
to the City of Denton.
K. The Denton County Tax Abatement Policy states that applicants whose
projects will be located in or are currently located in a municipality within the county
must have an approved and executed Tax Abatement Agreement with that municipality
prior to applying for a Denton County tax abatement. Denton County will not utilize
Chapter 381 of the Texas Local Government Code to administer a community and
economic development program to provide grants as a form of economic development.
II.
DEFINITIONS
"Agreement" means a contract between an Incentive recipient and the City clarifying the terms,
performance measures, and obligations of the parties.
"Assessed T�able Value" means the value of the real and business personal property, as appraised
by the Denton Central Appraisal District ("DCAD"/or "District"), after any exemptions have been
applied.
"Base Year Value" means the Assessed Ta�cable Value as of January 1 preceding the execution of
the agreement, excluding land value, inventory, vehicles and supplies, as determined by the DCAD.
"Business Park" is defined as a multi-building, multi-tenant, master planned complex of
approximately one million square feet or more under roof, constructed to house manufacturing,
distribution, assembly, and office facilities.
"Business Personal Property" means property associated with a Project other than Real Property
and excluding inventory, vehicles and supplies.
"Capital Investment" means the total actual capital cost to grantee for the acquisition of land,
development, and construction of the Project, including a reasonable capital operating reserve,
and the furniture and equipment installed at the Project.
"City" means the City of Denton, Texas, and its governing and operating bodies.
"City HOT Returns" means City of Denton HoteUMotel Occupancy Tax Reports on which the
grantee or other persons report and remit City of Denton hotel occupancy taxes imposed under
Chapter 351 of the Texas Tax Code on amounts paid for hotel rooms in the Project.
"Community Support and Involvement" may include but is not limited to monetary or active
investment in local nonprofits, public institutions or community organizations.
"Council" is the City Council of the City of Denton, Texas.
"Default" is an event in which a party to an Agreement has failed to meet Performance Measures
and to perform under prescribed cures.
`Bxpansion" means an investment in fixed assets that will result in an increase in occupied building
areas, increased employment, or higher Assessed Value of Real Property or Business Personal
Property by a firm already located in the City.
"Facility" means combined Real and Business Personal Property Improvements that house an
economically purposeful activity.
"Higher wage" means having an average annual wage of $55,000 or greater for all positions or at
least 25% of the positions have an annual wage of $65,000 or greater.
"Improvement" means a building, structure, or fixture erected on or aff�ed to land.
"Incentive" means any inducement for economic activity given by the City such as a tax abatement
or rebate or any other incentives not prohibited by state or federal law.
"Job" means a permanent, full-time employrnent position that has provided or will result in
employment of at least 2,080 hours per position per year. Part-time positions may be aggregated to
create a full-time position for consideration in this policy.
"Knowledge-based jobs" are defined as occupations which require specialized and theoretical
knowledge, usually acquired through a college education or through work experience or other
training which provides comparable knowledge; require some research, analysis, report writing
and presentations; or require special licensing, certification, or registration to perform the job
task.
"Leadership in Energy and Environmental Design" (LEED) certification is a
voluntary internationally recognized green building certification system, with verification by a
third party that a building or community was designed and built using strategies aimed at
improving performance across the following metrics: energy savings, water efficiency, CO2
emissions reduction, improved indoor environmental quality, and stewardship of resources.
"Local Contractors" and "Local Sub-Contractors" refers to vendors that have their "principal
office or place of business," as reported to the Texas Secretary of State Office, located within
Denton City Limits or Extraterritorial Jurisdiction (ETJ}.
"Modernization" means the replacement and upgrading of existing facilities which increases the
productive input or output, updates the technology, or substantially lowers the unit cost of
operation, and e�ends the economic life of the facility. Modernization may result from the
construction, alteration, or installation of buildings, structures, fixed machinery, or equipment.
"Performance Measures" are the performance indicators for a Project established by Agreement and
reported to the City annually using a certificate of compliance provided in the Agreement or as
otherwise prescribed by the Agreement.
"Primary Employer" refers to employers that produce products or services which are sold outside of
the community or region.
"Project" means the combination of proposed investment, improvements, and economic activity
that is submitted in an application for an economic incentive.
"Real Property" means land or an improvement affia�ed thereto.
"Retail" means the selling of consumer goods or services to customers.
"Retail Leakage" means that local residents are spending more for products or services than local
businesses capture and indicates there is an unmet demand in the community for certain types of
products. Keeping sales tax dollars in the City is the goal of minimizing retail leakage.
"Tax Abatement" means the full or partial exemption of ad valorem taxes for eligible properties in a
reinvestment zone designated as such for economic development purposes for new or expanded
business development for a period of up to 10 years. Abatement may be granted for real property
improvements and/or business personal property.
"Tax Rebate" means the full or partial refund of municipally imposed taac liability.
"Reinvestment Zone" is a geographic area designated as blighted and in need of revitalization for
the purpose of granting incentives as authorized by law.
"Sales Tax" means the 1% general municipal sales and use taxes imposed by the City of Denton
pursuant to Section 321.103(a) of Texas Taac Code and 0.5% additional municipal sales and use
tax imposed by the City of Denton from property tax reduction pursuant to Section 321.103(b) of
the Texas Tax Code and arising (i) from any person's collection of sales taxes as a result of sales
of taxable items consummated at the Project during the term of this Agreement, (ii) from any
person's payments to vendors or directly to the Texas Comptroller of Public Accounts of City
Sales Taxes on purchases of taxable items consummated at the Project during the term of this
Agreement, and (iii) from City Sales Taxes paid by any person in connection with the
construction or equipping of the Project.
"Sustainable materials" or products related to manufacturing may include but are not limited to:
biobased; recyclable; pollution reduction equipment or systems; and reclaimed goods.
"Texas Comptroller of Public Accounts' Monthly Sales Tax Report" means reports from the
Comptroller to the City as provided in Section 321.3022 of the Texas Tax Code that identify
amounts paid from the Comptroller to the City, by period, of Sales Taxes. If during the term of
this Agreement, due to a change in law or policy the Comptroller ceases providing such reports
with respect to the Sales Taxes, "Texas Comptroller of Public Accounts' Monthly Sales Tax
Report" means alternative documentation that the Parties agree establishes the amounts of Sales
Taxes received by the City.
"Construction Sales and Use Tax Grant" This incentive involves a rebate of a portion of the local
sales and use taxes for the purchase of construction materials and furniture/fixtures/equipment
that would generate additional tax revenue that the City of Denton would not otherwise receive.
"Texas Direct Payment Permit" means that permit issued by the State of Texas authorizing
Grantee to self-assess and pay applicable state and locai use taxes directly to the State of Texas
related to selected portions of Grantee's taxable purchases.
"Texas Sales and Use Tax Return" means a return or other statement in a form acceptable to the
City setting forth the Grantee's collection of use tax imposed by the City and received by the
City from the State of Texas, for the use of taxable items by Grantee at the Property for the
applicable grant period which are to be used to determine Grantee's eligibility for a Grant,
together with such supporting documentation required herein, and as the City may reasonably
request.
III.
APPLICATION PROCEDURE
A. To ensure fairness, accountability, and compliance with all applicable regulations,
every incentive request must proceed through a uniform application process. Nothing within
these guidelines implies or suggests that the City is under any obligation to provide an incentive
to any applicant.
a. Applicant shall complete the attached Incentive Application (Ea�hibit A). The
application will not be considered until it is administratively complete.
b. Applicant shall prepare a map or other documents providing the following: precise
location of the property and all roadways within 500 feet of the site; existing uses
and conditions of real property; proposed improvements and uses; any proposed
changes in zoning; compatibility with the Denton 2 0 3 0 Plan and applicable
building codes and City ordinances; a complete legal description. T'his information
must be submitted with the completed Incentive Application or the application will
5
be considered incomplete.
c. Applicant shall complete all forms and information detailed in the Incentive
Application and submit the Incentive Application and all additional required
information to the Economic Development Deparhnent, City of Denton, 215 E.
McKinney, Denton, TX 76201.
d. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as needed.
e. T`he application will be distributed to the appropriate City departments for
internal review and comment. Additional information may be requested as needed.
f. Fiscal agents of the City may review the application for comment and
recommendation. Additional information may be requested as needed.
g. The Denton Economic Development Partnership board (EDPB) serves as an
advisory body, which makes recommendations to the City Council regarding
whether economic development incentives should be offered in each individual
case. Its recommendation shall be based upon an evaluation of information
submitted in the incentive application and any additional information requested by
the EDPB ar presented to the EDPB. The EDPB will consider the application
at a regular or special-called meeting(s). All meetings of the EDPB shall be
held in compliance with the Texas Open Meetings Act, Chapter S51 of the Texas
Government Code. Additional information may be requested as needed. The
recommendation of the EDPB will be forwarded, with all relevant materials, to the
City Council.
h. If the City Council decides to grant a tax abatement, it shall call a public hearing to
consider establishment of a tax reinvestment zone in accordance with Section
312.201 of the Tax Code. The reinvestment zone must meet one or more of the
criteria of Section 312.202 of the Tax Code.
i. The City Council may consider adoption of an ordinance or resolution approving
the terms and conditions of a contract between the City and the applicant
governing the provision of the tax abatement or incentive and the commitments of
the applicant, including all the terms required by Section 312.205 of the Tax Code
and such other terms and conditions as the City Council may require.
j. The City reserves the authority to enter into tax abatement agreements at differing
percentages and/or terms as set forth in the guidelines of this Policy, consistent
with the requirements of Chapter 312 of the Texas Taac Code. T'he City also
reserves the authority to enter into incentive agreements under Chapter 380 of the
Texas Local Government Code.
B. Section 312.003 of the Texas Tax Code makes confidential information provided
to the City as a part of this application that describes the specific processes or business activities
to be conducted or the equipment or other property to be located on the property. This
information is not subject to public disclosure until the incentive agreement is executed. Section
522131 of the Texas Government Code (Texas Public Information Act) makes confidential
information which relates to economic development negotiations between the City and a
business prospect that the City seeks to have locate, stay or expand in or near the territory of
the City. The information must relate to a trade secret of the business prospect, commercial or
financial information which the business prospect can demonstrate based on specific factual
evidence that disclosure would cause substantial competitive harm to the person from whom the
information was obtained or information about a financial or other incentive being offered to
the business prospect by the City or by another person. Information about a financial or other
incentive being offered to the business prospect is required to be disclosed when an agreement
is made with a business prospect. The City will respond to requests for disclosure as required
0
by law and will assert exceptions to disclosure as it deems relevant. The City will make
reasonable attempts to notify the applicant of the request so it may assert its own objections to
the Attorney General.
C. Any incentive agreement will address various issues, including but not limited to,
the following:
a. General description of the project
b. Amount of the incentive and percent of value to be abated or rebated each year
c. Method of calculating the value of the abatement
d. Duration of the abatement, including commencement date and termination date
e. Legal description of the property
f. Kind, number, location and timetable of planned improvements
g. Specific terms and conditions to be met by applicant, which will be based on the
information submitted by the applicant in the Incentive Application andlor other
appropriate criteria
h. The proposed use of the facility and nature of construction
i. Contractual obligations in the event of default, violation of terms or conditions,
delinquent ta�ces, recapture, any decrease in valuation, administration and
assignment
D. Businesses receiving an incentive are asked to use diligent efforts to purchase all
goods and services from Denton businesses whenever such goods and services are comparable
in availability, quality and price. The City of Denton also encourages the use, if applicable, of
qualifed contractors, subcontractors and suppliers who are historically underutilized
businesses based on information provided by the General Services Commission pursuant to
Chapter 2161 of the Government Code.
E. Businesses receiving an incentive are encouraged to use diligent efforts to hire
local contractors and local subcontractors where possible during construction of the project.
F. Businesses receiving incentives are asked to endeavor to make available, or
endeavor to cause lessees or assignees to make available full-time or part-time employrnent for
Denton residents. In this effort, the business, lessee or assignee is encouraged to recruit from
the low-moderate income Census tracts as further defned by the U.S. Department of Housing
and Urban Development's (HUD) Qualified Census Tracts (QCT) map shown in Figure 1.
HUD defines QCTs as "census tracts in which one-half or more of the households have
incomes below 60 percent of the area median income or the poverty rate is 25 percent of [or]
higher.
7
FIGURE 1: DENTON, TEXAS
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IV.
INCENTIVE TOOLS
A. Tag Abatement: New, expanding, and modernizing businesses may be considered for
a t� abatement if a minimum threshold of $5 million in ad valorem value will be created by the
project. To qualify, companies must meet the minimum threshold in the %rst 24 months from the
execution of the agreement or as specified in the tax abatement agreement.
If, upon initial application, a project qualifes for tax abatement under the guidelines set forth in
this Policy, the City may consider the following factors in evaluating its public benefit:
• The project will occupy a building that has been vacant for at least two years;
• The project will create knowledge based, high-skilled o r higher-paying jobs as
documented by the applicant (An average wage that is above the median wage in Denton
County or at least 25 percent of jobs requiring a college bachelor's degree at entry level
will be used to determine eligibility);
• The project will involve a signifcant relationship with one of the two universities in
Denton;
� The project will create improvements to the Denton Downtown Implementation Plan area;
• The project is an international or national headquarters facility;
• Renewable energy will be generated, stored, or utilized for the project or the project
incorporates significant environmentally sustainable practices that include:
Leadership in Energy and Environmental Design (LEED) certification, recycling
initiatives, the manufacture of sustainable materials or products that support sustainable
industries, or the incorporation of clean technology;
• T'he applicant is committed to actively supporting the Denton community through non-profit
organizations, donations to public schools andlor public art
� 25% of local contractors used in construction or 25% of new jobs iilled by Denton
residents
All abatements are subject to final approval of the City Council. Even though a project may
meet the criteria as set forth in this Policy, an application may be denied at the discretion of the
City. The incentive shall not apply to any portion of the land value of the project.
The City may consider the use of incentives to retain existing businesses, which propose to
improve or redevelop properiy within the City limits. T'he City may also take into consideration
the expansion/redevelopment of existing businesses that create new or additional higher wage or
knowledge-based jobs. The incentive will only apply to the increased valuation of the
improvements over the appraised value of the property prior to such improvements as same is
established by the Denton Central Appraisal District the year in which the tax abatement
agreement is executed. The City may also consider other tax incentives authorized by law.
B. Chapter 380 Grants or Loans: The City may consider incentives to businesses
utilizing its authority under Chapter 380 of the Texas Local Government Code (hereinafter referred
to as "Chapter 380"). Chapter 380 states that a municipality may establish and provide for the
administration of one or more programs for making loans and grants of public maney and
providing personnel and services of the municipality, to promote state or local economic
development and to stimulate business and commercial activity in the municipality. The City of
Denton may consider the use of grants and loans as incentives to accomplish one or more of the
following economic development purposes:
• Targeted industry cluster or supply chain recruitment initiatives
• Capital grants or loans for start-up and small businesses to promote entrepreneurship
� Grants to offset costs associated with public infrastructure improvements or impact fees
• Cash incentives to gain a competiiive position when in direct competition for a project
• Increase the percentage of jobs paying $75,000 per year or more
Chapter 380 incentives will be considered on a case-by-case basis, and may be considered for
one or more of the following criteria:
• Net new jobs with wages above Denton County's median wage
• The relocation of a company that promotes the growth of targeted industry sectors listed
in Section I.D.
• Incentives for businesses that cause infill redevelopment or other desirable development
objectives;
• Any other activity which the City Council determines meets a specific public purpose for
economic development.
When the City determines that incentives are required to retain existing businesses that propose to
improve or redevelop property within the City limits, the City Council may consider, on a case-
by-case basis, and reserve the right to waive the minimum threshold and/or exceed the percentage
and termfor a grant.
The City of Denton may also take into consideration the expansion/redevelopment of existing
businesses that create new or additional higher wage or knowledge-based jobs. Ad valorem
rebates will only apply to the increased valuation of the improvements over the appraised value of
the property prior to such improvements as same is established by the Denton Central Appraisal
District the year in which the grant agreement is executed.
Job-based grants may be considered for businesses creating higher-wage or knowledge-based
jobs.
The City may also consider other tax incentives authorized by law.
C. Economic Development Investment Fund: The City may offer cash incentives and
grants from the Economic Development Investment Fund (established by Ordinance No. 2016-
229) when appropriate and necessary. Such incentives require EDPB and Council approval
through a Chapter 380 Agreement. To be eligible for consideration, the company must meet at
least two of the following criteria:
• higher wage or knowledge-based jobs;
• substantial capital investment (minimum of $15 million);
• recruitment of industry sector targets, including aviation/aerospace, advanced
manufacturing, renewable energy, research and development, information technology,
supply chain for primary employers, or significant consumers of municipal utilities.
D. Based Aircraft Incentive: Specific considerations for a based aircraft incentive will
include expansion of the tax base, annual fuel consumption, and contribution to the growth and
development of Denton Enterprise Airport (DTO). Newly based aircraft may be eligible for an
incentive if a minimum of $1 million in ad valorem value will be created by the aircraft. Aircraft
must be operational, air worthy, and based at DTO for a majority of the year; values may not be
combined to reach the $1 million minimum.
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