HomeMy WebLinkAbout22-35722-357RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,APPROVING THE ESTABLISHMENT OF POLICIES, GUIDELINES, AND CRITERLAGOVERNING CHAPTER 380 INCENTIVES; AND DECLARING AN EFFECTIVE DATE.
WHEREAS, the City Council desires to promote economic development within Denton;and
WHEREAS, Chapter 380 of the Texas, Local Government Code allows the City to
establish programs to promote state or local economic development and to stimulate business and
commercial activity in the City, including programs for providing tax rebates and loans and grants
of public money; and
WHEREAS, this policy seeks to promote economic development, increase employment, and
stimulate business and commercial activity within the City of Denton for the benefit of the public
and therefore meets the requirements under Chapter 380 of the Texas Local Government Code;and
WHEREAS, on March 17, 2020, the City Council of the City of Denton approved the
current guidelines and criteria, known as the Denton Policy for Tax Abatements and Incentives
(“Policy”), by passing Resolution No. R20-504; and
WHEREAS, the current Policy expires on March 17, 2022; and
WHEREAS, the City Council deems it in the public interest to continue to provide
economic development loans, grants, and tax rebates and to adopt policies, guidelines, and criteriafor those incentives; 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 Chapter 380 Policy.
SECTION 2. From and after the effective date of this Resolution, the attached Denton
Chapter 380 Policy shall constitute the policies, guidelines, and criteria for incentive agreements
for the City of Denton in accordance with Chapter 380 of the Local Government Code.
SECTION 3. The City Council reasserts its decision to provide Chapter 380 incentives.
The City Council provides certain incentives to applicable business enterprises which are
established in the City in accordance with the applicable provisions of Chapter 380 of the Local
Government Code and in accordance with the Denton Chapter 380 Policy .
SECTION 4. This Resolution shall become effective immediately upon its passage and
approval.
The motion to approve this resolution was
seconded by :lesTe tHisthe following vote Il - DJ :
made by Id
the o])y9
Aye
1/
\/
P
b/
V/
Nay Abstain Absent
Mayor, Gerard Hudspeth :
Vicki Byrd, District 1 :
Brian Beck, District 2:
Jesse Davis. District 3 :
Alison Maguire, District 4:
Deb Armintor, At Large Place 5
Paul Meltzer, At Large Place 6:
PASSED AND APPROVED thi; the day of M(A . 2022
FE]nrDVEO
ATTEST:
ROSA RIOS, CITY SECRETARY
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APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
BY: an% B:l:?!:;!7=£Y'39:B
Deputy City Attorney
Exhibit A
Denton Chapter 380 Policy
City of Denton
++; aa i PdP P r + • •FJ- -+B%Policy
DENTON
Statement of Policy
The City of Denton 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 incorporates 100percent renewable energy into its portfolio. Local economic development incentives serve as a tool
for the City to use in accomplishing those objectives. To provide a framework for the consideration
of the use of public resources to stimulate economic activity, the City has established this policyto align the use of incentives with the City’s strategic focus areas and ensure a positive return on
investment for the community. Tax incentives, as described in this policy, will be available for
new and/or existing facilities and structures and for businesses wanting to locate, expand, upgradeor modernize existing or new facilities and structures in the City of Denton. These tax incentives,
as described herein, are governed by Chapter 380 of the Texas Local Government Code(hereinafter referred to as “Chapter 380). This policy is adopted under the authority of theConstitution and Laws of the State of Texas and the City Charter of the City of Denton.
The City of Denton has adopted the core values of Integrity, Transparency, Inclusion, Fiscal
Responsibility, and Outstanding Customer Service. These values are exemplified in our operations
and are considered when contemplating any request for incentives.
The 2020 Economic Development Strategic Plan has five guiding principles that provide aframework for economic development in Denton: Core Resiliency, Future Focused, Inclusive
Growth, Entrepreneurial Spirit and Cultural Vitality. The plan is also built around three majorgoals: Accelerate Recovery, Foster Growth, and Strengthen Community Inclusion.
Chapter 380 grants offered by the City of Denton are not entitlement programs and the City is not
under any obligation to provide an incentive to any applicant. The City considers incentives to be
strategic investments in organizations, developments, or projects that benefit the community, are
in alignment with the economic development strategic plan, and must comply with all program
criteria, policies, and guidelines adopted by the City Council.
All applications or requests are considered on a case-by-case basis by the Economic Development
Partnership Board (EDPB) and the City Council. The City will conduct significant due diligence
when an application is submitted, which could include reviewing an applicant’s submission,
requesting information to verify any claims, reviewing any other incentives received by the
applicant from other jurisdictions, and conducting an independent economic and fiscal analysis for
any proposed project. Incentives may 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).
The City has strategic growth areas and related industries, organized by North American Industry
Classification System (NAICS) codes. These industries have been identified in the Strategic Plan
for cultivation and recruitment and will be given priority consideration. The strategic growth areasinclude: Connectivity, Creativity, Sustainability, and Competitiveness. Exhibit A providesadditional information on the industry by strategic growth areas. While these growth area
Denton Chapter 380 Incentive Policy Page 2
ecosystems will be given priority consideration, not being in a strategic growth area or relatedindustry does not disqualify a business from applying for an incentive if it meets other
requirements under the policy.
All incentives offered will be evaluated through a cost-benefit analysis. The economic impacts
evaluated may include net new jobs, wages, and contributions through property tax, sales taxes,
hotel occupancy taxes, mixed beverage taxes, or other significant public benefit.
All agreements will be based on performance. Successful applicants must demonstrate
performance with agreed upon metrics to continue to receive funding. Failure to meet performance
standards will result in recapture, reduction of rebates, or termination of agreement(s). Grantees
will also be responsible for making periodic reports on their investments, hiring, and provide the
City access to records to verify their reports.
Guidelines for various incentive programs have been adopted by the Denton City Council. These
include objectives, qualification criteria, reporting requirements, and other key program elements.
Grantees are responsible for ensuring they meet the requirements of the overall policy and the
program guidelines.
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. 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.
Definitions
“Agreement” means a contract between an Incentive recipient and the City clarifying the terms,
performance measures, and obligations of the parties.
“Assessed Taxable Value” means the value of the real and business personal property, as appraised
by the Denton Central Appraisal District (“DC AD”/or “District”), after any exemptions have been
applied.
“Base Year Value” means the Assessed Taxable 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.
Denton Chapter 380 Incentive Policy Page 3
“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 Hotel/Motel 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.
“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.
“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.
“Ecosystem” incorporates a number of elements, which include: anchor institutions, major emerging
players, competitions and events, building blocks, local capital and public awareness.1
“Established Resident” means an individual hired by applicant/grantee with a primary dwelling
place inside the corporate limits of the City of Denton at the time an employment application was
submitted and/or the date the employee was offered the position with Grantee.
“Expansion” 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 $65,000 or greater for all positions or atleast 25% of the positions have an annual wage of $75,000 or greater.
“Improvement” means a building, structure, or fixture erected on or affixed 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.
TIP Strategies. Economic Development Strategic Plan: City of Denton Texas. 2020.
Denton Chapter 380 Incentive Policy Page 4
“Job” means a permanent, full-time employment 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.
“Living Wage” is the wage necessary to provide the basic family expenses “basic needs budget”
plus all relevant taxes.2
“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 Extratenitorial 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 extends the economic life of the facility. Modernization may result from the construction,
alteration, or installation of buildings, structures, fixed machinery, or equipment.
“New Resident” means an individual hired by applicant/grantee with a primary dwelling place
outside the corporate limits of the City of Denton at the time an employment application was
submitted and/or the date the employee was offered the position with Grantee, but establishes a
primary dwelling place inside the corporate limits of the City of Denton after an employment
application was submitted and/or the date the employee was offered the position.
“North American Industry Classification System (NAICS)” is the standardized system utilized for
the publication of statistical data by the federal government and other entities to classify businesses
by the type of economic activity.3
“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.
2 Online Internet. Massachusetts Institute of Technology’s (MIT) Living Wage Calculator for Denton County.
https://livingwage.mit.edu/counties/48121 .
3 Online Internet. NAICS Association. 2022. NAICS.com.
Denton Chapter 380 Incentive Policy Page 5
“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 affixed 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.
“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 Tax 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.
“Tax Rebate” means the full or partial refund ofmunicipally imposed tax liability.
“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 reportswith 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.
“Texas Direct Payment Permit” means that permit issued by the State of Texas authorizing
Grantee to self-assess and pay applicable state and local 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 suchsupporting documentation required herein, and as the City may reasonably request.
Denton Chapter 380 Incentive Policy Page 6
Public Benefit
If, upon initial application, a project qualifies for an incentive under the guidelines set forth in this
Policy, the City may consider the following factors in evaluating its public benefit:
•Expands the tax base through property, sales, Hotel Occupancy Tax (HOT), or other taxes to
the City, County, DISD, and DCTA through the development of property, facility or by making
improvements to an existing property or facility, through the development of a new business
or expansion of an existing business, through the development of a new multi-tenant complex
where businesses can locate, or through the addition or increase in jobs available in the City.
Community Investment demonstrates a commitment to community support or involvement
through monetary or in-kind support of local nonprofits, public institutions, or community
organrzatrons;
Public Private Partnerships includes development of public infrastructure or public
amenities that City deems beneficial, or developer assumes responsibility for development
of infrastructure or other public facilities beyond what is required. Project will involve a
significant relationship with a public school district or institution of higher education.
25% of local contractors used in construction or 25% of new jobs filled by Denton residents
Other priorities or considerations as determined by City Council
•
•
•
•
Application Procedure
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.1. Applicant shall complete the attached Incentive Application (Exhibit B). The
application will not be considered until it is administratively complete. The
Economic Development Director or the City Manager, or their designee, may
amend the Application at their discretion from time to time. Applicant shall be
responsible for obtaining and submitting the most recent Application form from the
City
2. 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; zoning changes;
compatibility with the Denton 2040 Plan and applicable building codes and Cityordinances; and a complete legal description as provided in the deed granting title to
the owner of the property. This information will be submitted with the completed
Incentive Application or the application may be considered incomplete.
3. Applicant shall complete a Due Diligence Form which authorizes the City to obtain
and review any and all information needed to evaluate an application for an
economic development incentive, including business financial statements, creation
documents, and credit rating. The City may request additional information relatedto the creditworthiness or financial position of a business in the process of
reviewing and evaluating the application for economic development incentive.
4. 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 Department, City of Denton, 401 N. Elm
Denton Chapter 380 Incentive Policy Page 7
Street, Denton, TX 76201.
5. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as needed.
6. The application will be distributed to the appropriate City departments for internal
review and comment. Additional information may be requested as needed.
7. Fiscal agents of the City may review the application for comment and
recommendation. Additional information may be requested as needed.
8. 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 bythe EDPB or 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 incompliance with the Texas Open Meetings Act, Chapter 551 of the Texas
Government Code. Additional information may be requested as needed. Therecommendation of the EDPB will be forwarded, with all relevant materials, to the
City Council.
9. 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 incentive and the commitments of the applicant, including all
the terms required by Chapter 380 and such other terms and conditions as the City
Council may require.
10. The City reserves the authority to enter into incentive agreements at differing rebate
percentages and/or terms as set forth in the guidelines of this Policy, consistent with
the requirements of Chapter 380.
Section 522.131 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. Theinformation must relate to a trade secret of the business prospect or 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 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.
Any incentive agreement will address various issues, including but not limited to, the following:
1. General description of the project
2. Amount of the incentive and percent of value to be rebated each year
3 . Method of calculating the value of the incentive
4. Duration of the rebate, including commencement date and termination date
5 . Complete legal description of the property as provided in the deed granting title to the
Denton Chapter 380 Incentive Policy Page 8
owner of the property
Kind, number, location and timetable of planned improvement
Specific terms and conditions to be met by applicant, which will be based on the
information submitted by the applicant in the Incentive Application and/or other
appropriate criteria
The proposed use of the facility and nature of construction
Contractual obligations in the event of default, violation of terms or conditions,
delinquent taxes, recapture, any decrease in valuation, administration and assignment.
6.
7.
8
9.
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 qualifiedcontractors, subcontractors and suppliers who are historically underutilized businesses based on
information provided by the General Services Commission pursuant to Chapter 2161 of theGovernment Code. Businesses receiving an incentive are encouraged to use diligent efforts to hire
local contractors and local subcontractors where possible during construction of the project.
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 employment for Denton residents. In
this effort, the business, lessee or assignee is encouraged to recruit from the low-moderate income
Census tracts as further defined 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.
Denton Chapter 380 Incentive Policy Page 9
Figure 1: 2022 Qualified Census Tracts in Denton
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Incentive Tools and Programs
New, expanding, and modernizing businesses may be considered for an incentive. Once a
determination has been made that a project is eligible for an incentive, the following will serve as a
basis for determining amount and term of the grant or rebate. Additional public benefit factors and
considerations may increase the grant and/or rebate percentage.
To qualify to receive the gIant or rebate, companies must meet the minimum threshold of projected
tax value for the project in the first 24 months from the execution of the agreement or as specified
in the agreement. The minimum threshold is at least 90% of the incentivized projected tax value
for new projects and 75cY, of the tax value for expansion projects. A job based grant may be
provided once per year on each new eligible job added. Eligible new jobs are capped in the
agreement and are reimbursable over the term of the grant.
If, upon initial application, a project qualifies for an incentive under the guidelines set forth in this
Policy, the City may consider the following considerations in evaluating the project and the grant
or rebate percentage:
Denton Chapter 380 Incentive Policy Page 10
•
•
•
•
•
•
Generates new utility customers (priority consideration for larger customers);
Encourages new business markets/suppliers and entrepreneurship (the project is from an
industry not significantly represented in the local economy or is a new business startup or
entrepreneurial endeavor)
Creates knowledge-based jobs, as documented by the applicant (An average wage that is
above the average wage in Denton County or at least 25 percent of jobs requiring a college
bachelor’s degree);
Increases higher wage jobs (includes an average annual wage of $65,000 or greater for all
positions or at least 25% of the positions have an annual wage of $75,000 or greater);
Pays a living wage for all new employees in accordance with the current “Living Wage”
from the MIT Living Wage Calculator for Denton County;
Engages in sustainable practices (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);
Spur infill development or redevelopment (Project is to develop/redevelop a property in a
manner that reduces urban sprawl and or increases density in a desirable area; project
includes use of existing facility that has been vacant for at least two years);
The project is an international or national headquarters facility; and
Provides child care assistance to employees that may include: on-site child care services;
vouchers or other financial assistance for child care; backup or temporary child care
services; flexible hours or remote work accommodations; and flexible spending accounts
for child care expenses.
•
•
•
All incentives 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 property within the City limits. The 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 agreement is executed. The City may also
consider other tax incentives authorized by law.
Chapter 380 Grants or Loans
The City may consider incentives to businesses utilizing its authority under Chapter 380 of the Texas
Local Government Code. 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 money 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:
Denton Chapter 380 Incentive Policy Page 1 1
•
•
•
•
•
•
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 competitive position when in direct competition for a project
Increase jobs paying $75,000 per year or more
Incentives for the development if Class A office space, particularly in downtown
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
term for 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.
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 of 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 in strategic growth areas and related industries, by North American Industry
Classification System (NAICS) codes, that have been identified in the Strategic Plan for
cultivation and recruitment. The strategic growth areas include: connectivity, creativity,
sustainability, and competitiveness. Exhibit A provides additional information on the
industry by strategic growth areas.
Based Aircraft Incentive: Specific considerations for a based aircraft incentive will includeexpansion 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. Values may not be combined to reach the $1million minimum.
Denton Chapter 380 Incentive Policy Page 12
Entrepreneurial/Tech Incentive: Fostering the entrepreneurial ecosystem is one of the five
guiding principles in the 2020 Economic Development Strategic Plan. The City works with the
Denton Chamber of Commerce, educational institutions, Stoke, and other partners to encourage a
culture and climate that promotes entrepreneurship and tech development. The City may offer cash
incentives through relocation, expansion and job based grants to support entrepreneurs, tech, tech
enabled, startups and encourage knowledge based and high wage jobs in Denton. A residency
bonus grant may also be granted for each eligible new job with a primary dwelling in the city limits
of Denton during the coverage period. The Economic Development Investment Fund is the source
of funds utilized for this program. This program has a separate Entrepreneurial/Tech Incentive
application.
Table 1 below establishes a stratified job based grant framework. A job grant may be provided
once per year on each new eligible job added. The amount may vary depending whether the
employee is an established resident or new resident. A job grant may be provided once per
year on each new eligible job added. The amount may vary depending whether the employeeis an established resident or new resident.
Table 1: Job Based Grant Table
Salary
$5TooI
2,500
$ 1 ,000
$500
Jobs equal to or > than $100,000
Jobs equal to $90.000-$99,999
Jobs equal to $75,000-$89,999
Jobs equal to $65,000-$74,999
Denton Chapter 380 Incentive Policy Page 13