HomeMy WebLinkAboutR2007-001S:\Our Documents\Resolutions\06\Fry Street Small Area Plan District Resolution.doc
RESOLUTION NO. f2. rJI),l- rJ(J I
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
ESTABLISHING A POLICY FOR TAX ABATEMENT FOR THE FRY STREET SMALL
AREA PLAN DISTRICT IN THE CITY OF DENTON TO ESTABLISH GUIDELINES AND
CRITERIA GOVERNING TAX ABATEMENT AGREEMENTS; AND DECLARING AN
EFFECTIVE DATE.
and
WHEREAS, the City Council desires to promote economic development within Denton;
WHEREAS, providing tax abatement and other economic development incentives within
the City and its extraterritorial jurisdiction will likely contribute to the economic development of
Denton by encouraging major investment, the creation of jobs, and other economic development
benefits; and
WHEREAS, the City Council has adopted Section 10-129 of the Code of Ordinances,
which Section is incorporated herein for all purposes; and
WHEREAS, the City Council deems it in the public interest to be eligible for
participation in tax abatement and to adopt policies, guidelines and criteria governing tax
abatement agreements to be known as the Fry Street Small Area Plan District Tax Abatement
Policy; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION I. The polices, guidelines and criteria found in the Fry Street Small Area Plan
District Tax Abatement Policy, attached hereto as Exhibit A and made a part of this Resolution
and incorporated herein for all purposes, are in all things approved and adopted. From and after
the effective date of this Resolution, the attached Fry Street Small Area Plan District Tax
Abatement Policy shall constitute policy guidelines and criteria governing tax abatement
agreements in accordance with Chapter 312 of the Tex. Tax Code.
SECTION 2. Pursuant to Tex. Tax Code Section 312.002(c) the guidelines and criteria
adopted herein shall be effective for two (2) years, during which time the guidelines may be
amended or repealed by a vote oP/. of the members of the Council.
SECTION3. The City Council hereby asserts its decision to become eligible to
participate in tax abatement in the Fry Street Small Area Plan District. The City Council
provides certain tax incentives applicable to business enterprises in various reinvestment zones
which are established in the District, in accordfU1ce with the applicable provisions of Chapter 312
of the Tex. Tax Code and in accordance with the guidelines and criteria established in the
attached Exhibit A and in the Policy.
S:\Qur Documents\Resolutions\06\Fry Street Small Area Plan District Resolution.doc
SECTION 4. This Resolution shall become effective immediately upon its passage an~
approval at the regular meeting of the City Council of the City of Denton, Texas, on the 23-
day OfVanll-~~ ' 201)2, at which meeting a quorum was present and which meeting was
held in accordanc with the provisions of Tex. Gov.'t Code 9551.001, et seq.
PASSED AND APPROVED this the 23ddayof VtUZaarl/
2007. I
P~~~~.KOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY~~i~\J~
APPROVED AS 0 LEGAL FORM:
EDWINM. SNYDER, CITY ATTORNEY
BY: ~~ ~
7 . /
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S:\Our Documents\Contracts\06\Fry Street Tax Abatement Policy. doc
FRY STREET SMALL AREA PLAN DISTRICT
TAX ABATEMENT POLICY
I. GENERAL PURPOSE AND OBJECTIVES
The City of Denton (City) is committed to the promotion of high quality and to an ongoing
improvement in the quality of life for its citizens. Historic preservation offers stable, distinct and
interesting neighborhoods that add to the uniqueness of our community. The city council has
found and declared as a matter of public policy that the protection, enhancement, preservation
and use of historic landmarks is a public necessity and is required in the interest of culture,
prosperity, education and general welfare of the people, and has stated in city code #35.7.6 that
they shall:
A. Protect, enhance and perpetuate historic landmarks which represent or reflect distinctive
and important elements of the city's and state's architectural, archeological, cultural,
social, economic, ethnic and political history and to develop appropriate settings for such
places;
B. Safeguard the city's historic and cultural heritage, as embodied and reflected in such
historic landmarks by appropriate regulations;
C. Stabilize and improve property values in such locations;
D. Foster civic pride in the beauty and accomplishments of the past;
E. Protect and enhance the city's attractions to tourists and visitors and provide incidental
support and stimulus to business and industry;
F. Strengthen the economy of the city; and
G. Promote the use of historic landmarks: for the culture, prosperity, education, and general
welfare ofthe people of the city and visitors of the city.
It is the policy of the City that said consideration will be provided in accordance with the
procedures and criteria outlined in this document. Nothing herein shall imply or suggest that the
City is under any obligation to provide tax abatement to any applicant.
All applicants shall be considered on a case-by-case basis. Abatements will not be considered if
work on a project already has begun.
Tax abatements, as described in this Policy, will be available for historic structures in the Fry Street
Small Area Plan District (map-Attachment A) undergoing approved improvements as outlined in
this document, except as this Policy may be limited for property described in Section 312.211(a) of
the Texas Property Tax Code (Vemons Texas Civil Statutes Annotated, hereinafter referred to as
Tax Code.")
II. HISTORIC LANDMARK COMMISSION
Requests for tax abatement shall be reviewed by the Historic Landmark Commission ("HLC"),
HLC is comprised of nine members, appointed by the City Council.
S:\Our Documents\Contracts\06\Fry Street Tax Abatement Policy.doc
HLC serves as a recommending body 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 tax abatement application and any additional
information requested by HLC or presented to HLC. The Tax Abatement Application shall be
substantially in the form of Exhibit A of this Policy. All meetings of HLC shall be held in
compliance with the Texas Open Meetings Act, Chapter 551 of the Texas Govemment Code.
III. VALUE OF INCENTIVES
The criteria outlined in the Application will be used by HLC in determining whether or not it is in
the best interests of the City to recommend that tax abatement be offered to a particular project.
Specific considerations will include the degree to which the individual project furthers the goals
and objectives of the community as described in the Denton Comprehensive Plan, as well as the
relative impact on growth, employment, expansion of the tax base, and economic development.
Properties awarded this incentive will receive 100% tax abatement on the amount of increase in
ad valorem valuation from the pre-renovation valuation for a period of 10 years.
All abatements are subject to final approval ofthe 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. Tax abatement shall not apply to any portion of the land value of the project.
Criteria for eligible projects are:
The building must be:
At least 50 years old.
Located within the Fry Street Small Plan Area District.
Improvements are to equal or exceed 25% of the most recent assessed ad valorem tax
valuation or $20,000, whichever is less. Roof repair may constitute no more than 50% of
minimum threshold amount.
Must comply with Property Appearance Guidelines (approved by CC by resolution in
1997).
Review Process:
Plans pre-approved by the City of Denton Historic Landmark Commission.
Verification upon completion by HLC.
City Council must approve tax abatement.
Benefits:
100% tax abatement on the amount of increase in ad valorem valuation from the pre-
renovation valuation for a period of 10 years.
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Other stipulations:
Incentive may transfer with the property, if sold, provided the assignee agrees to the terms
of the tax abatement.
If the structure ceases to comply with the terms of application, abatement will be revoked
for the remainder of the 10-year period and all previous abatements shall be paid back to
the city as outlined in Sec. 10-129 of the city historic preservation code.
At the discretion of Council, this abatement may be used in conjunction with Historic
Landmark zoning abatements, but the applicant must meet each tax abatement
requirement separately in order to be considered for both abatements
Prplimin~nJ' Application
IV. PROCEDURAL GUIDELINES
Any person, organization or corporation desiring that the City consider providing tax abatement to
encourage location or expansion of facilities within the limits of the jurisdictions shall be required
to comply with the following procedural guidelines. Nothing within these guidelines shall imply
or suggest that the City is under any obligation to provide tax abatement to any applicant.
A. Applicant shall complete the attached "Application for Tax Abatement."
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 Comprehensive Plan and applicable building codes
and City ordinances.
C. A complete legal description shall be provided. Applicant shall complete all forms and
information detailed in the Application and submit all information to the City Manager, City
of Denton, 215 E. McKinney, Denton, 'VX 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. The application will be distributed to the appropriate City departments for internal review
and comments. Additional information may be requested as needed.
F. Copies of the complete application package and staff comments will be provided to HLC.
Consiclpration of thE" A pplic9tion
G. The HLC will consider the application at regular or called meeting(s). Additional
information may be requested as needed.
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H. The recommendation of the HLC will be forwarded, with all relevant materials, to the City
Council.
I. 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.
1. The City Council shall hold a public hearing and determine whether the project is "feasible
and practical and would be of benefit to the land to be included within the zone and City
after the expiration of the tax abatement agreement in accordance with Section 312.201."
Special consideration shall be given to policies noted in the Denton Comprehensive Plan
when designating a tax reinvestment zone.
K. The City Council may consider adoption of an ordinance designating the area described in
the legal description of the proposed project as a commercial/industrial tax abatement zone.
L. 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 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. Should the commitments subsequently not be satisfied, the tax abatement
shall be null and void (unless the tax abatement agreement provides for a recapture of the
property tax revenue lost proportionate to a partial failure to meet the minimum thresholds
set forth in the agreement) and all abated taxes shall be paid immediately to the City of
Denton and all other taxing jurisdictions participating in the tax abatement agreement.
Provisions to this effect shall be incorporated into the agreement.
M. The City reserves the sole discretion to enter into tax abatement agreements as set forth in
the guidelines of this Policy, consistent with the requirements of the Tax Code.
Annual Fvnhultion
Upon completion of construction, the City Council shall receive from the City Manager an annual
evaluation of each abatement to insure compliance with the agreement and to report possible
violations of the agreement to the taxing entities. After new tax base numbers are received in July
of each year, the City Manager and his staff will have ninety (90) days to review and prepare a
breakdown of those figures.
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S:\Our Documents\Contracts\06\Fry Street Tax Abatement Policy. doc
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City of Denton
Tax Abatement Application
City of Denton
Department of Downtown Development
Denton, ,Texas 76201
940) 349-7732
940) 349-7206 FAX
WWW city()fcl~nton com
TlII1E" elov~r@r'ityofclE"nt()n com
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S:\Our Documents\Contracts\06\Fry Street Tax Abatement Policy.doc
Application for Historic Structure Property Tax Abatement
Fry Street Small Area Plan District
From the City of Denton, Texas
Property
Address
Legal
Description
Owner(s)
Mailing
Address
Phone and Email
Date of original construction of building
Tax Valuation (effective prior to start date of rehabilitation project)
Start date of rehabilitation
Estimated completion date
I certify that I am the legal owner of the aforementioned property.
I attest that the information listed above is true and complete to the best of my knowledge.
I attest that this property meets the eligibility requirements for an abatement of taxes as provided for by
the City of Denton, as follows:
1. The property is located within the boundaries of the Fry Street Small Area Plan District;
2. The property is at least 50 years old; :
3. The estimated cost of the rehabilitation project will equal or exceed 25% of the most recent
assessed ad valorem tax valuation of the structure or $20,000, whichever is less. Roofrepair
or replacement may comprise no more than 50% of the minimum threshold amount necessary
to qualify for tax abatement;
4. A tax certificate showing that all taxes due upon the property have been paid is attached to
this application;
5. A proposal listing all aspects of the planned rehabilitation will be submitted to the Historic
Preservation Officer for review by Denton Historic Landmark Commission for compatibility
with the Property Appearance Guidelines. I will submit an agreement for a Certificate of
Appropriateness for any exterior modifications to the property for the duration of the period
during which the tax abatement is in effect;
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6. I authorize the City Manager or designee, Historic Landmark Commissioners and elected
officials to visit and inspect the property as needed to complete this application and
certification process as set forth in the' ordinance.
Signature of property owner(s)
Date
Notarized
By
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