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HomeMy WebLinkAbout24-946 INCOMPLETEORDINANCE NO. 24-946 AN ORDINANCE OF THE CITY OF DENTON APPROVING A GRANT TO EAGLE SURVEYING, LLC FOR IMPROVEMENTS LOCATED AT 212 W. SYCAMORE FROM THE DOWNTOWN REINVESTMENT GRANT PROGRAM IN AN AMOUNT NOT TO EXCEED $50,000.00; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved the Downtown Reinvestment Grant Program (the “Program”) by Ordinance No. 2007-072; and WHEREAS, on December 14, 2021, the City Council approved changes to the Program by Ordinance No. 21-2626; and WHEREAS, Eagle Surveying, LLC, owner of the property located at 212 W. Sycamore. (the “Property”), applied for a $50,000.00 grant in accordance with the Program; and WHEREAS, the Tax Increment Financing Reinvestment Zone Number One Board and the Downtown Economic Development Committee reviewed the application in accordance with the Program and recommend a grant in an amount not to exceed $50,000.00; and WHEREAS, it is in the public interest and benefits the Downtown TIRZ to award the Downtown Reinvestment Grant, thereby stimulating economic development and promoting desired redevelopment in the downtown area of the City of Denton; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The findings and recitations in the preamble of this ordinance are found to be true and incorporated herein by reference as if fully set forth in the body of this ordinance. SECTION 2. The City Council of the City of Denton hereby approves the Agreement attached hereto authorizing a grant in an amount not to exceed $50,000.00 from the Program. SECTION 3. The City Manager, or their 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 4. This Ordinance shall become effective immediately upon its passage and approval. The motion to approve this Ordinance was made byseconded by a'ck,- - - B:/t J ‘following vote U-U : Sr iq'\ BcGZe and Aye Nay Abstain Absent Mayor Gerard Hudspeth: Vicki Byrd, District 1 : Brian Beck. District 2 : Paul Nleltzer. District 3 : Joe Holland. District 4: Brandon Chase McGee, At Large Place 5 : Jill Jester, At Large Place 6: ,/ ,/ ,/ / ,/ ,/ ,/ PASSED AND APPROVED this the Lt t-\day of GERARD HUDSPETH, MAYOR Jun,L , 2024 ATTEST: LAUREN THODEN, CITY SECRETARY APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY g1 # 1% 2 :: :a o : ?3y1BY: b/ 1 2:29:28 -05'OO’ DOWNTOWN REINVESTMENT GRANT 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 City Man- ager, and Eagle Surveying, LLC, a Texas limited liability company with a principal place of busi- ness at 212 W. Sycamore St., Denton, TX 76201 (“Owner”). WHEREAS, the City Council of Denton, Texas (the “City Council”) has, by Ordinance No. 2007-072, elected to offer downtown reinvestment grant incentives and has adopted guidelines and criteria governing downtown reinvestment grant incentive agreements known as the Down- town Reinvestment Grant Program Policy (the “Program”), a copy of which is on file in the City of Denton Economic Development Office and which is incorporated herein by reference; and WHEREAS, the Program constitutes appropriate “guidelines and criteria” governing downtown reinvestment grant incentive agreements to be entered into by the City; WHEREAS, the Owner will be the owner or have a leasehold interest, as of the Effective Date (as hereinafter defined), 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”); and WHEREAS, on the 13th day of February, 2024, Owner submitted an application for a re- investment grant 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 of the City of Denton finds that the contemplated use of the Premises, the 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 purposes and are in compliance with the Program and similar guidelines and criteria adopted by the City and all applicable law; NOW, THEREFORE, the City Manager and Owner for and in consideration of the prem- ises and the promises contained herein do hereby contract, covenant, and agree as follows: I. TERMS AND CONDITIONS OF REIMBURSEMENT GRANT A. In consideration of and subject to the Owner meeting all the terms and conditions of reimbursement set forth herein, the City will pay to the Owner the following reimbursement grant: 1. A reimbursement grant in an amount not to exceed $50,000 (the “Grant”) attributable to new Improvements, as hereinafter defined, being constructed on the Premises. Page 2 2. The Grant will be distributed to Owner as a lump sum reimbursement upon completion of the Project, the receipt of adequate documentation of ex- penditure of the Grant amount on costs necessary and related to the Im- provements as described in Exhibit “B” attached hereto, and approval of the completed Improvements by the City. B. A condition of receiving the Grant is that, by February 13, 2025, Owner will rehab the façade, renovate the building’s exterior, and improve the interior to bring up to code as de- scribed in Exhibit “B” (collectively, the “Improvements”) on the Premises. C. A condition of the Reimbursement is that the Improvements be completed and used substantially in accordance with the description of the project set forth in Exhibit “B” and comply with the requirements of the Program. D. Owner agrees to comply with all the terms and conditions set forth in this Agree- ment. E. The parties expressly understand and agree that City’s payment of the Grant is con- tingent upon City’s receipt and appropriation of adequate funds to pay the Grant. If adequate funds are not available to make the payment under this Agreement, City may, at its option, either reduce the amount of the Grant or terminate the Agreement. F. It is expressly understood that this Agreement in no way obligates the City to pro- vide more funds than the Grant amount. II. CONDITION OF REIMBURSEMENT A. Prior to payment of any portion of the Grant, all ad valorem real property taxes with respect to the Premises and all other property in the City owned by the Owner shall be current. B. Prior to the payment of any portion of the Grant, Owner shall have constructed the Improvements as specified in Exhibit “B.” C. If alterations to the Improvements are made for any reason within one (1) year from final payment of the Grant, Owner is required to reimburse the City in the full amount of the Grant, unless Owner has received advance written approval of the alterations from the City. D. Prior to the award of the Grant, Owner shall own or have a leasehold interest in the Premises. Page 3 III. 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 ensure that the Improvements are made, and performance 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. IV. GENERAL PROVISIONS A. The City has adopted guidelines and criteria for the Program that allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City to enter into this Agreement and the obligations of the parties to this Agreement conform to the requirements of the Code and the Program. C. In the event of any conflict between the City zoning ordinances, or other City ordi- nances or regulations, and this Agreement, such ordinances or regulations shall control. D. Owner represents and warrants that Owner is authorized to make the Improvements to the Premises. V. 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 prepare, by hand delivery or via facsimile: OWNER: CITY: Dan Rick Sara Hensley, City Manager 222 S. Elm St. City of Denton Suite 200 215 East McKinney Denton, Texas 76201 Denton, Texas 76201 Fax No. 940.349.8596 VI. CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of Ordinance No. _____________ authorizing the City Manager to execute this Agreement on behalf of the City. Page 4 VII. SEVERABIILTY 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, paragraph, 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. VIII. 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 ordi- nances, resolutions, or City Council actions authorizing same and Owner shall be entitled to inter- vene in said litigation. IX. APPLICABLE LAW 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 Denton County, Texas. X. 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. XI. BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XII. COUNTERPARTS 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. Page 5 XIII. 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. XIV. NO JOINT 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. XV. AMENDMENT This Agreement may be modified in writing by the parties hereto to include other provi- sions which could have originally been included in this Agreement or to delete provisions that were not originally necessary to this Agreement. XVI. 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 is not able to perform any or all of its obli- gations under this Agreement, then the respective Party’s obligations hereunder shall be suspended during such period but for no longer than such period of time when the party is unable to perform. XVII. INDEMNIFICATION OWNER SHALL INDEMNIFY, SAVE AND HOLD HARMLESS THE CITY, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, ATTORNEYS AND EMPLOYEES (COL- LECTIVELY, THE “INDEMNITEES”) FROM AND AGAINST ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION WHICH DIRECTLY OR INDIRECTLY ARISES FROM CITY’S GRANT AND OWNER’S PERFORMANCE OF ITS OBLIGATIONS HEREUNDER AND ANY CONTESTS OR CHALLENGES TO THE LEGAL AUTHOR- ITY OF THE CITY OR OWNER TO ENTER INTO THIS AGREEMENT AND ANY AND ALL LIABILITIES, LOSSES, COSTS OR EXPENSES (INCLUDING ATTORNEY’S FEES AND DISBURSEMENTS) THAT ANY INDEMNITEES SUFFER OR INCURS AS A RESULT OF ANY OF THE FOREGOING; PROVIDED, HOWEVER, THAT OWNER SHALL HAVE NO OBLIGATION UNDER THIS PARAGRAPH TO THE CITY WITH RESPECT TO ANY OF THE FOREGOING ARISING OUT OF THE GROSS NEGLI- GENCE OR WILLFUL MISCONDUCT OF THE CITY OR THE BREACH BY THE CITY OF THIS AGREEMENT. Page 6 This Agreement is executed to be effective on the executed date of the ____ day of _______________, 202 , (the “Effective Date”) by duly authorized officials of the City and Owner. CITY OF DENTON ______________________________________ SARA HENSLEY, CITY MANAGER ATTEST: LAUREN THODEN, CITY SECRETARY BY: __________________________________ APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY BY: __________________________________ OWNER: EAGLE SURVEYING, LLC By: DAN RICK, Manager _________ EXHIBIT A LEGAL DESCRIPTION OF THE PREMISES Being Lot 2, Block 1 of SYCAMORE ADDITION, an Addition in the City of Denton, Denton County, Texas according to the Conveyance Plat thereof recorded under Doc Number 2023-8, Plat Records, Denton County, Texas. EXHIBIT B APPLICATION AND IMPROVEMENTS Renovation of 212 W. Sycamore St., Denton 1 Eagle Surveying is purchasing the building located at 212 W. Sycamore St. in Denton to be used as our new corporate office. We opened for business in 2016 and leased two rooms at 210 S. Elm St. for our first office. Over the years, as Eagle grew, we leased more space within the 210 S. Elm building until the opportunity to relocate to the newly renovated 222 S. Elm St. building became an option. Eagle has been proud to call that building home for the past several years, but we have once again found ourselves needing more space and flexibility than a leased building would accommodate. We are excited to purchase the building on Sycamore and the plans to expand it to approximately 5,650 SF, nearly doubling the space we currently have. The building currently located at 212 W. Sycamore St. was opened in May 1965 as the new location for Denton County Teachers Federal Credit Union (now DATCU). The building was further expanded to its current footprint in 1969. DATCU moved out of the building in 2015 when it relocated its corporate headquarters to Corinth. The building was occupied by a plumbing company until late last year. We really like the mid-century modern design and hope to only improve upon it. The existing building is approximately 3,510 SF. As we’ve worked with our architect to lay out the space to sufficiently accommodate our growing needs, we’ve determined that we need to expand the building. As has been done with the other surrounding buildings (222 S. Elm and 212 S. Elm), we intend to add a second floor to the building. We feel that our architect has done a great job preserving the original portion of the building and adding the much-needed space with an overall design that complements each other. Our goal is to make the addition feel as if it was originally intended. The proposed renovations will significantly upgrade the utilities to the building as well as the overall energy efficiency. We believe this project will greatly benefit and enhance the southern section of the TIRZ area. Projects like these will likely encourage other improvements and development in this area. This project will facilitate the growth of a Denton-based small business in the downtown area, allowing us to continue offering our services throughout the DFW Metroplex from here. We are excited to better expose this unique part of downtown through these redevelopment efforts. One of the objectives of this project is to improve the quality of pedestrian traffic within the 200 S. Elm block of businesses. Pedestrian traffic between office buildings is essential and encouraged due to the shared relationships between the current tenants. We also hope to improve the alleyway that connects all the properties along the block with a pedestrian and bicycle-friendly design while maintaining a slow- moving flow of vehicular traffic to the parking areas. We feel that supporting the secondary 'frontage' back entrances for each business can help to enhance property aesthetics and encourage walkability and safety throughout the block. Renovation of 212 W. Sycamore St., Denton 2 Photo of 212 W. Sycamore – circa 1969 Existing photos with some description of intended demo for 212 W. Sycamore St. Renovation of 212 W. Sycamore St., Denton 3 Elevations of the renovations proposed for 212 W. Sycamore St. Renovation of 212 W. Sycamore St., Denton 4 Renovation of 212 W. Sycamore St., Denton 5 Improvements to pedestrian traffic Renovation of 212 W. Sycamore St., Denton 6 Existing floor plan of 212 W. Sycamore St. Renovation of 212 W. Sycamore St., Denton 7 Floor plan for the renovated 212 W. Sycamore St. – first floor Renovation of 212 W. Sycamore St., Denton 8 Floor plan for the renovated 212 W. Sycamore St. – second floor Renovation of 212 W. Sycamore St., Denton 9 Existing pictures of 212 W. Sycamore St. Renovation of 212 W. Sycamore St., Denton 10 Renovation of 212 W. Sycamore St., Denton 11