HomeMy WebLinkAbout24-2355ORD[NANCE NO. 24-2355
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE CITY MANAGER TO
EXECUTE AN AMENDED AND RESTATED DEVELOPMENT AGREEMENT WITH VS
DEVELOPMENT, LLC AND DENTON COUNTY MUNICIPAL UTILITY DISTRICT NO. 16
TO REMOVE TERMS FOR FIRE SERVICE; CONSENT TO ANNEXATION OF PROPERTY
INTO THE DISTRICT; ADD TERMS FOR ADDITIONAL SERVICES; AND AMEND THE
STRATEGIC PARTNERSHIP AGREEMENT WITH DENTON COUNTY MUNICIPAL
UTILITY DISTRICT NO. 16; AND PROVIDING AN EFFECTIVE DATE
WHEREAS, VS Development, LLC, Olex (United States), Inc., and the City previously
entered into that certain Development Agreement, dated August 18, 2020 (the “Original
Development Agreement”) relating to the development of the Denton County Municipal Utility
District No. 16 (the “District”); and
WHEREAS, Olex sold the property to Developer on September 13, 202 1 via the instrument
recorded as Instrument No. 202 1-167738 in the Real Property Records of Denton County; and
WHEREAS, the City and the Developer amended the Original Development Agreement
by the First Amendment to Development and Consent Agreement Concerning Denton County
Municipal Utility District No. 16 on January 25, 2022, to provide terms under which the City
would provide fire protection services to the District; and
WHEREAS, the Original Development Agreement provided for the development of
approximately 552.958 acre tract of land (the “Property”) located wholly within the extratemitorial
jurisdiction of the City (the “Development”) for single-family residential, multifamily and
commercial uses; and
WHEREAS, the Developer has submitted petitions to the City to obtain the City’s consent
to the annexation of two tracts into the District (the “Consent Petitions”), the first tract comprising
approximately 356.425 acres (the "Hickey Tract") and the second tract comprising approximately
96.921 acres (the “Jean Tract”, and collectively with the Hickey Tract the “Annexation Tracts”),
both of which are located in Denton County, Texas and are wholly within the extratenitorial
jurisdiction of the City, in accordance with Texas Local Government Code Section 42.042; and
WHEREAS, the City and the District approved a Strategic Partnership Agreement in which
the City is guaranteed fifty percent (50%) of the sales and use tax collected for commercial uses
adjacent and abutting U.S. Highway 380 on June 18, 2024 (the “Strategic Partnership
Agreement”); and
WHEREAS, the City, the Developer, and the District desire to further amend the Original
Development Agreement, as amended, to: (i) remove the terms under which the City would
provide Fire Protection Services to the District; (ii) revise the provisions in the Original Agreement
regarding solid waste, water, and wastewater services; (iii) provide for the execution of an
amended and restated Strategic Partnership Agreement (the “Amended Strategic Partnership
Agreement”); (iv) provide the terms under which the City will consent to the annexation of the
Annexation Property into the District; and (v) make other modifications necessary due to the
annexation of the Annexation Property into the District, in the form attached hereto as Exhibit “A“
(the “Amended Development Agreement”); and
WHEREAS, the City and the District have agreed to modify the Strategic Partnership
Agreement to allow for limited purpose annexation of the Property and the Annexation Tracts and
for full purpose annexation of the Property and the Annexation Tracts at the completion of the
agreement; and
WHEREAS, the Amended Development Agreement includes as exhibits consent
resolutions consenting to the annexation of the Hickey Tract and the Jean Tract into the District
subject to the terms and conditions set forth in the Amended Development Agreement; and
WHEREAS, the Amended Development Agreement shall amend and restate the Original
Development Agreement and the previous amendment thereto in full, and shall supersede any prior
version of the Original Development Agreement as previously amended, and any amendments
thereto; and
WHEREAS, the Parties intend that the Property will be developed in accordance with the
agreed concept plan and the development standards set forth in the Amended Development
Agreement; and
WHEREAS, the City Council of the City hereby finds that amending and restating the
Development Agreement as provided herein is in the public interest; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The recitations contained in the preamble of this Ordinance are found to be
true and are incorporated herein by reference.
SECTION 2. The City Manager or their designee is hereby authorized to execute the
Amended Development Agreement attached hereto as Exhibit “A“ and to carry out the duties and
responsibilities of the City under the Amended Development Agreement.
SECTION 3. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by Gerard Hudspeth and seconded by
Brandon Chase McGee. The Ordinance was passed and approved by the following vote [ 7 - 0 ]:
Aye
X
X
X
X
X
X
X
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1 :
Brian Beck. District 2:
Paul Meltzer. District 3 :
Joe Holland. District 4:
Brandon Chase McGee, At Large Place 5 :
Jill Jester, At Large Place 6:
PASSED AND APPROVED this the 7th day of January, 2025.
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ATTEST:
LAUREN THODEN, CITY SECRETARY
„Na„„„ JUG.-
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
'„:Deputy CIty Attorney