Loading...
HomeMy WebLinkAbout26-1578Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 ORDINANCE NO. 26-1578 AN ORDINANCE OF THE CITY OF DENTON APPROVING A GRANT TO HICKS SQUARED LLC FOR AWNING REPAIRS LOCATED AT 124 W. OAK ST. FROM THE DOWNTOWN REINVESTMENT GRANT PROGRAM IN AN AMOUNT NOT TO EXCEED $4,281.25 FROM TAX INCREMENT REINVESTMENT ZONE NUMBER ONE FUNDS; AND PROVIDING FOR AN EFFECTIVE DATE. THE TAX INCREMENT REINVESTMENT ZONE NUMBER ONE BOARD RECOMMENDS APPROVAL (4-0). WHEREAS, on April 3, 2007, the City Council approved the Downtown Reinvestment Grant Program (the "Program") by Ordinance No. 2007-072; and WHEREAS, on September 18, 2018, August 18, 2020, December 14, 2021. January 24, 2023, and November 19, 2025, the City Council approved changes to the Program by Ordinance Nos. 18-1321, 20-1521, 21-2626, 22-2567, and 25-1911, respectively; and WHEREAS, Hicks Squared LLC, owner of the property located at 124 W. Oak St., Denton, Texas 76201 (the "Property"), applied for a $4,281.25 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 the full amount requested by the applicant; and WHEREAS, pursuant to the Program, the maximum Grant amount for the improvements to the Property is $4,281.25; 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 between the City and Hicks Squared LLC in the form attached hereto (the "Agreement") providing for a grant in an amount not to exceed $4,281.25 payable from Tax Increment Reinvestment Zone No. 1 funds under 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. Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 The motion to approve this Ordinance was made by Joe Holland and seconded by Jill .fester . The Ordinance was passed and approved by the following vote L-J Aye Nay Abstain Absent Mayor Chris Watts: Jordan Villareal, District 1: Nick Stevens, District 2: Suzi Rumohr, District 3: Joe Holland, District 4: George Ferrie, At Large Place 5: Jill Jester, At Large Place 6: PASSED AND APPROVED this the 27th ATTEST: KRISTI GILBERT, CITY SECRETARY APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY Scott fray BY: Ucput%City Atturncc day of October , 2026. A,- �0'ke- CHRIS WATTS, MAYOR Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 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 Manager, and Hicks Squared LLC, a Texas limited liability company with its principal place of business at 124 W. Oak Street 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 Downtown 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 January 2026, Owner submitted an application for a reinvestment 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 and Owner for and in consideration of the premises 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 $4,281.25 (the "Grant") attributable to new Improvements, as hereinafter defined, being constructed on the Premises. Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 2. The Grant will be distributed to Owner as a lump sum reimbursement upon completion of the Project, the receipt of adequate documentation of expenditure of the Grant amount on costs necessary and related to the Improvements 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 October 27, 2027, Owner will complete the awning repairs as described 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, which are incorporated herein by reference. D. Owner agrees to comply with all the terms and conditions set forth in this Agreement. E. The parties expressly understand and agree that City's payment of the Grant is contingent 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 to 1 minate the Agreement. F. It is expressly understood that this Agreement in no way obligates the City to provide 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 awning 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. D. Prior to the award of the Grant, Owner shall own or have a leasehold interest in the Premises. III. RECORDS AND EVALUATION OF PROJECT Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 A. The Owner shall provide access and authorize inspection of the Premises by City employees and allow sufficient inspection of financial info 1 mation 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 ordinances 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. E. Pursuant to Section 2264. 051 of the Texas Government Code, Owner certifies that it and its branches, divisions, or departments do not and will not knowingly employ an undocumented worker. V. NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other parry or address as either parry designated in writing, by certified mail postage prepare, by hand delivery or via facsimile: OWNER: Mark Hicks c/o Stag Commerical 1770 Westminster Denton, TX 76205 CITY: Cassey Ogden, Interim City Manager City of Denton 215 East McKinney Denton, Texas 76201 Fax No. 940.349.8596 Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 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. 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 ordinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. IX. APPLICABLE LAW This Agreement shall be construed under the laws of the State of Texas and is fully performable 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 parties 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. Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 Xll. COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 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 provisions 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 Parry, either Parry is not able to perform any or all of its obligations 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 parry is unable to perform. XVII. INDEMNIFICATION OWNER SHALL INDEMNIFY, SAVE AND HOLD HARMLESS THE CITY, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, ATTORNEYS AND EMPLOYEES (COLLECTIVELY, 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 AUTHORITY 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 Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 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 NEGLIGENCE OR WILLFUL MISCONDUCT OF THE CITY OR THE BREACH BY THE CITY OF THIS AGREEMENT. XVIII. MISCELLANEOUS A. Owner has submitted herewith a completed Form 1295 generated by the Texas Ethics Commission's (the "TEC") electronic filing application in accordance with the provisions of Section 2252.908 of the Texas Government Code and the rules promulgated by the TEC (the "Form 1295"). The Parties understand and agree that, with the exception of information identifying the City and the contract identification number, if any, the City is not responsible for the information contained in the Form 1295; the information contained in the Form 1295 has been provided solely by the Owner; and the City has not verified such information. B. Owner acknowledges that in accordance with Chapter 2273 of the Texas Government Code, City is prohibited from entering into a taxpayer resource transaction with an abortion provider or an affiliate of an abortion provider. The terms "taxpayer resource transaction," "abortion provider," and "affiliate of an abortion provider" shall have those definitions provided in Texas Government Code § 2273.001. By signing this Agreement, Owner certifies that is not an abortion provider or an affiliate of an abortion provider, and that it will not use the proceeds of this Agreement for the purpose of assisting a woman with procuring an abortion or the services of an abortion provider. Failure to meet or maintain the requirements under this provision will be considered a material breach. [Signature pages follow] Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 This Agreement is executed and effective on this, the day of 2026, (the "Effective Date") by duly authorized officials of the City and Owner. ATTEST: KRISTI GILBERT, CITY SECRETARY C APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY SC C scout Gray J BY: Deputy City Attorney CITY OF DENTON CASSEY OGDEN, INTERIM CITY MANAGER OWNER: Hicks Squared, LLC n ,D—Signed by: BY: Ras . Mark Hicks, Owner Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 EXHIBIT A LEGAL DESCRIPTION OF THE PREMISES ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE WM NEILL SURVEY. ABSTRACT NUMBER 971. CITY OF DENTON, DENTON COUNTY, TEXAS. AND BEING PART OF LOT 1, BLOCK 5, ORIGINAL TOWN OF DENTON, RECORDED IN VOLUME 4. PAGE 53, PLAT RECORDS DENTON COUNTY TEXAS AND BEING PART OFA TRACT DESCRIBED IN A DEED TO DONALD E HICKEY RECORDED IN VOLUME 541 PAGE 467, DEED RECORDS, DENTON COUNTY. TEXAS. AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS BEGINNING AT A BUILDING CORNER AT THE SOUTHWEST CORNER OF SAID LOT 1 AND HICKEY TRACT AND BEING AT THE INTERSECTION OF THE EAST UNE OF ELM STREET AND THE NORTH LINE OF OAK STREET THENCE NORTH 00 DEGREES 16 MINUTES 22 SECONDS WEST WITH THE WEST LINE OF SAID LOT 1 AND HICKEY TRACT. A DISTANCE OF 120 00 FEET TO BUILDING CORNER AT THE NORTHWEST CORNER OF SAID LOT 1 AND SAID HICKEY TRACT AND THE AT THE INTERSECTION OF THE EAST UNE OF ELM STREET AND THE SOUTH UNE OF PECAN STREET. THENCE NORTH 69 DEGREES 43 MINUTES 36 SECONDS EAST WITH 7 HE NORTH LINE OF SAID LOT 1 AND HICKEY TRACT, A DISTANCE OF 24 92 FEET TO A BUILDING CORNER. THENCE SOUTH 00 DEGREES 16 MINUTES 22 SECONDS EAST, A DISTANCE OF 120 05 TO A CORNER IN A METAL PLATE ON THE SOUTH UNE OF SAID LOT 1 AND THE SOUTHERN MOST SOUTHEAST LINE OF SAID HICKEY TRACT, THENCE SOUTH 89 DEGREES 50 MINUTES 02 SECONDS WEST WITH THE SOUTH LINE OF SAID LOT 1 AND SAID HICKEY TRACT. A DISTANCE OF 24.92 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 0 069 ACRES OF LAND Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 EXHIBIT B APPLICATION AND IMPROVEMENTS Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 Aut^ ntsign 10: 384C7647-5+.2C-F111-9s.4r-000DIMFFKA Downtown Reinvestment Grant Program Application Please return completed the application with necessary attachments and signatures to the Economic Development Department office at 401 N. Elm St., Denton, Texas. If you have any application questions, please contact the Economic Development Department at 940-349-7776. I 1 Applicant Name Date Business :V• a Y�7•�� �1eC..1hC(� _ , Mailing Address 1l70 �JJicSrIM Contact Phone� Email Address y ��(,�` �(�_ C Building Owner (if different from applicant) 1ckS IQQ.4 wex> Historical/Current Building Name Project Site/Address Type of Work: (check all that apply) ❑ Paint Only ❑ Signage ❑ Utility Upgrades ❑ Facade & Building Renovation 9 Awnings ❑ Impact Fees ON ❑ Interior/Code Improvements ❑ Fire Suppression System Details of planned improvements relating to grant request (attach additional information if necessary). rz C - V O�W & UV'St r 8 913 Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 1dowdowU AwLt"IY32:••�••IM►JafM�•iM 13 11 this ct L fn 1Xs%-nt~.1 1 11 IFIZOW(NtA 1ftx� GF �(E r LnW Omwi sption of the m>pen� : ��� s _cam was' rz, LFO._ Project Cmegicwt)cs Fam&,Rui Iding Rebah Awnilgt Signs Inw"I Fec9 Utility Upgrade -a blWriurICade Improverncrtts Fire Suppression S}stern hil anated lusts C;rant Requested - — I i Tawic � 02 SO `4 Z�/1 11-11 AL OF PA PQSE:D PROJECT TOTAL. URANTRWT-ST S d -7-:791.5 (16tay not exceed S{ % of TOTAL COST up to $50.000) 1 Attu h ui! nqutrw! GU�iUr rrartprrs uti/F�urn►, awnin.9 camam, sogn dr.ugn. tip:. as Kril ai Ph0rnjffM0V ojbwjI( ;PW'r e-x(rr.xw Awade_ ravf asidfi +ndati n Mi o3130126 IIS5610- -- Dwe 9 r Docusign Envelope ID: 255DCOBA-27B3-8346-81AB-6DF3A2768635 DOWNTOWN RE[NvILS-TW :NT GRANT AG1th.FMENT FORM i'leasc complete sM return with the Duwittown Reinvestment Cieant Applioattrvn to the Ecanumic Daeveirvment otit�c. 401 N Elm St., Dragon, I rxas If you have any qucsttons. please coated the Ecunotnrc L)evckTmcnt Dcpartmeni at 940- 349. 7 776. I have nwl with a mprrseniaave fmm the Economic Development Deparimcm and I have read and full. undcrstand cFe r)owntuwn Reinvcstmerd C'imnt pruiced'um eatablvO" by the Denton City C�il. 1 utterxl w wic duv Sr'n program fur tlx: of Rvmcnik ied renovation projects to advance the eff m of revitalization sod hiur ric prewrvation of Dentun's hiskiric downtown. I hmw mw recriueciC nor w(II I rscwlvie mrnrwxv w.#nies for Als—tolnzarmn fir Oo I urtvicrtrtand that if I am awarded a rai%M-rxn Rcmvcstn).tu Gront hry the City 01'r-knttxl. any deviaA„(n from the appm%-ed pru yet nra% adult In the lwrtial ar total witikirawal of the grant, (If I am awarded a reinvvrtttment pftant for facade. awning in sign %"k and the facade, sigh cc awning Is altered fcx any m2s m v►ittun unr (1) ytsr fi cn construction, I may be requlrW to reimburse the City of Denloti immedintely for the full arncwnt of the grant ) S1 AC4 COM-M Hez i m— Bus t. i t mfion .br:�+r A II dv r-4 (P3 i -14 C1v S Priwed NOW DGve IIf's,1-14-- jR&,jA,*ng Owner's S%-yxiturr 14(thffier'en ftowgMVjcavu) Prinfrd,ti'cunr AdVe This sectirm► is to be ooa vieted by Economic Develia meet stall'. [Are caru dr,ed .hv DF.IX, RoronnwencAafrcPn Dale cvru&krvdby 17R7_ U1 Board RtcvmMWnddfPM Siafj ii=notwe Graff S4"arirrr Dwe c~ukrcdhyC by Cumcil APPAM71 Sraff CiRmoure