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ORDINANCE NO p�, 91%/`a�15_0
AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN
AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO IV
FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT, ESTABLISHING THE
BOUNDARIES OF SUCH ZONE, MAKING FINDINGS REQUIRED IN ACCORDANCE
WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE, ORDAINING OTHER
MATTERS, RELATING THERETO, PROVIDING A SEVERABILITY CLAUSE, PROVID-
ING FOR REPEAL, AND PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council of the City of Denton, Texas ("City" or "Municipality")
desires to promote the development or redevelopment of a certain contiguous geographic area
within its corporate city limits and its jurisdiction by the creation of a reinvestment zone for
commercial/industrial tax abatement, as authorized by Tex Tax Code Ch 312 (referred to as the
"Property Redevelopment and Tax Abatement Act" or the "Act"), and
WHEREAS, an industry or business known as Sally Beauty Company, Inc, a Delaware
corporation authorized to do business in Texas, has requested tax abatement to build improve-
ments within the area to be designated as Reinvestment Zone IV, and
WHEREAS, the City Council desires to create a proper economic and social environment
to induce investment of private resources and productive business enterprises in this area of the
City, which meets the criteria established under §312 202 of the Act, and to expand primary em-
ployment or to attract major investment, and
WHEREAS, by resolution dated July 17, 2001, a public hearing before the City Council
was called, set, and held at or after 6 00 p in on July 31, 2001, in the City Council Chambers of
the City of Denton at 215 East McKinney Street in the City of Denton, such date being at least
seven days after the date of publication of notice of such public hearing and the receipt of written
notices of such public hearing by the presiding officer of each taxing unit that includes in its
boundaries real property that is to be included in the proposed reinvestment zone, in accordance
with §31=01 of the Act, and
WHEREAS, such public hearing was held before the consideration and adoption of this
ordinance; and
WHEREAS, the City, at that hearing, invited any interested citizen or his representative
to appear, and offer testimony or evidence for or against the creation of the reinvestment zone,
the boundaries of the proposed reinvestment zone, whether all or part of the territory described in
the notice calling the public hearing should be included in the proposed reinvestment zone, and
the concept of tax abatement, and
WHEREAS, in accordance with such public notice, all owners of property within the
proposed reinvestment zone and all other taxing units and other interested persons were given the
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opportunity at such public hearing to protest the creation of the proposed reinvestment zone or
the inclusion of their property in such reinvestment zone, and
WHEREAS, on the 61h day of June, 2000, on or before the holding of the above -
mentioned public hearing, the City Council passed Resolution No 2000-028 establishing guide-
lines and criteria governing tax abatement agreements and stating that the City of Denton elects
to become eligible to participate in tax abatement, in accordance with Tex Tax Code §312 002,
which Tax Abatement Policy was amended by Resolution No 2001-020 and such Policy is now
in effect and was in effect prior to the public hearing, and
WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of-
fered evidence in favor and against all matters relating to the creation of the reinvestment zone,
and, after hearing this testimony and evidence, the City Council deems it in the public interest to
create this reinvestment zone, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the facts and recitations contained in the preamble of this ordinance
are hereby found and declared to be true and correct
SECTION 2 That for the purposes of this ordinance, the following terms and phrases
shall have the following meanings ascribed to them
A Improvements — Improvements shall include, for the purpose of establishing eligibility under
the Act, any activity at the location, including, but not limited to, new construction, recon-
struction, renovation and repairs
B Taxable Real Property — Taxable real property shall be as defined in the Texas Property Tax
Code and shall not include personal property as defined in the Code
C Base Year — The base year for determining increased value shall be the taxable real property
value assessed the year in which the Tax Abatement Agreement is executed
SECTION 3 That the City, through its City Council, after conducting the above -
mentioned public hearing and having heard such evidence and testimony, makes the following
findings and determinations based on the evidence and testimony presented to it
A That the public hearing on the adoption of the reinvestment zone has been properly called,
held, and conducted in accordance with §312 201 of the Act and all other applicable laws,
and that notice of such hearing has been published as required by law and mailed to the pre-
siding officer of the governing body of each taxing unit that includes in its boundaries real
property that is to be included in the proposed reinvestment zone as required by law, and
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B That prior to holding the public hearing, the City has adopted, by resolution, the guidelines
and criteria governing tax abatement agreements by adopting a City of Denton Tax Abate-
ment Policy, as amended, and the City has elected to participate in tax abatement, and
C That the City had Jurisdiction to hold and conduct the public hearing on the creation of the
proposed the reinvestment zone, pursuant to chapter 312 of the Act, and
D That the boundaries of the reinvestment zone shall be the area described in the metes and
bounds description attached hereto as Exhibit "A" and as shown on the diagram as the area
outlined in red attached hereto as Exhibit ieB" and being approximately 13 3742 acres at or
near 3900 Morse Street in the corporate limits of the City of Denton, Texas, such Exhibits
"A" and "B" being incorporated and made a part of this ordinance as if written word for
word harem, and
E That the creation of the reinvestment zone for commercial/industnal tax abatement with the
improvements expected to be developed by Sally Beauty Company, Inc would be of benefit
to the City and to the land to be included in the zone, with the boundaries as described in Ex-
hibit "A," after the expiration of the tax abatement agreement entered into under §312 204 of
the Act, and the improvements sought are feasible and practical, and
F That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the
criteria for the creation of a reinvestment zone, as set forth in §312 202 of the Act, since it is,
"reasonably likely, as a result of the designation, to contribute to the retention or expansion
of primary employment or to attract major investment in the zone that would be a benefit to
the property and that would contribute to the economic development of the Municipality,
and
G That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit eB" meets the
criteria for the creation of a reinvestment zone as set forth in the Denton Policy for Tax
Abatement and the expected improvements in the boundaries of the zone are expected to en-
hance significantly the value of all taxable real property located within the reinvestment
zone
SECTION 4 That pursuant to §312 201 of the Act, the City, through its City Council,
hereby creates a reinvestment zone for commercial/industnal tax abatement encompassing only
the area described by the metes and bounds description in Exhibit "A" attached hereto and as
shown on Exhibit `B" attached hereto and such reinvestment zone is hereby designated and shall
hereinafter be designated as Reinvestment Zone No IV, City of Denton, Texas
SSECTION 5 That Reinvestment Zone No IV shall be effective as of January 1, 2002,
and shall terminate five years from that date, on December 31, 2006, unless extended for an
additional five year term or unless earlier terminated by action of the City Council in accordance
with §312 203 of the Act
SECTION 6 That to be eligible for tax abatement, a commercial/industnal project shall
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A Be located wholly within the zone established herein,
B Meet the requirements of the Denton Tax Abatement Policy,
C Not include property that is owned or leased by a member of the City Council of the City of
Denton, or by a member of the Planning & Zoning Commission,
D Conform to the requirements of the City's zoning ordinance and all other applicable laws and
regulations, and
E Have and maintain all land located within the designated zone, appraised at market value for
tax purposes
SECTION 7 That written tax abatement agreements with property owners located
within the zone shall provide the terms regarding duration of exemption and share of taxable real
property and/or tangible personal property located on the real property for taxation as approved
hereunder, as shown below
A Duration of exemption from two years to ten years depending on the value of the structures
and real property in accordance with the Denton Tax Abatement Policy, beginning with and
including January 1, 2002, and
B Share of taxes abated — 100% of taxes on the total value of appraised real property improve-
ments which are added, provided, however, nothing herein shall prevent any other taxing unit
that includes in its boundaries real property that is included in the reinvestment zone from en-
tering into a tax abatement agreement with a different share of taxes abated on the total value
of appraised improvements which are added, in accordance with the requirements of chapter
312 of the Act
SECTION 8 That any written agreements authorized under this ordinance must include
provisions for
A Listing the kind, number, and location of all proposed improvements of the property,
B Access to and authorizing the inspection of the property by municipal employees to ensure
that the improvements or repairs are made in accordance with the specifications and condi-
tions of the agreements,
C Limiting the uses of the property, consistent with the general purpose of encouraging devel-
opment or redevelopment of the zone during the period that property tax exemptions are in
effect,
D Recapturing of property tax revenues lost as a result of the agreement if the owner of the
property fails to make the improvements or repairs as provided by the agreement,
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E Containing each term agreed to by the owner of the property,
F Requiring the owner of the property to certify annually to the governing body of each taxing
unit that the owner is in compliance with each applicable term of the agreement,
G Providing that the governing body of the municipality may cancel or modify the agreement if
the property owner fails to comply with the agreement,
H Contain any additional terms and conditions which the City Council deems are necessary, in
accordance with §312 205 of the Act, and that are negotiated with the owner of the property
Provided, however, nothing herein shall prevent other taxing units, who include in their
boundaries real property within the reinvestment zone, from negotiating terms and conditions
that are different from any municipal tax abatement agreement, so long as the mandatory
terms and conditions required by §312 205 of the Act are included
SECTION 9 That the City Council further directs and designates the City Manager and
the Director of Community Development as liaisons for communication with regard to all mat-
ters pertaining to the Zone, including, without limitation, the development of the amendment of
the current Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agree-
ments with industries, commercial enterprises, and other businesses eligible for tax abatement
under the Tax Abatement Policy and for communication with other taxing entities and the Joint
Tax Abatement Committee
SECTION 10 That all ordinances or parts of ordinances in force when the provisions of
this ordinance became effective which are inconsistent or in conflict with the terms or provisions
contained in this ordinance are hereby repealed to the extent of any such conflict
SECTION 11 That if any section, paragraph, clause, or provision in this ordinance, or
application thereof to any person or circumstance is held invalid or unenforceable, the invalidity
or unenforceability of such section, paragraph, clause, or provision shall not affect any of the re-
maining portions of this ordinance
SECTION 12 It is hereby found, determined, and declared that a sufficient written no-
tice of the date, place, hour, and subject of the meeting of the City Council at which this ordi-
nance was adopted was posted and placed and conveniently accessible at all times to the general
public at the City Hall of the City for the time required by law, preceding this meeting, as re-
quired by the Open Meetings Act, Tex Gov't Code Ch 551, and that this meeting was open to
the public as required by law at all times during which this ordinance and the subject matter
thereof has been discussed, considered, and formally acted upon The City Council further rati-
fies, approves, and confirms such wntten notice and contents posting thereof The City Council
further finds that a quorum was present at such meeting
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SECTION 13 That the contents of the notice of public hearing, which hearing was held
before the City Council and before the passage of this ordinance on July 31, 2001, the publica-
tion of said notice is hereby ratified, approved, and confirmed
SECTION 14 That this ordinance shall become effective immediately upon its passage
and approval y
PASSED AND APPROVED this the J b day of. 2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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EXHIBIT "A"
Legal Description of Sally Beauty Company, Inc property
BEING a tract of land situated in the M E P and P R R Cc Survey, Abstract No 927,
Denton County, Texas, being a part of Lot 6, Block 3 of the Golden Triangle Industrial
Park, Phase V, an addition to the City of Denton according to the plat recorded in Cabinet
C, Page 87, Plat Records of Denton County, Texas, and being more particularly described
as follows
BEGINNING at a found '/2-inch iron rod with cap stamped "A H HALFF ASSOC "
(hereafter referred to as "with cap') at the intersection of the South right-of-way line of
Morse Street (60 feet wide) with the East right-of-way line of Kimberly Drive (60 feet
wide),
THENCE South 88 degrees 50 minutes 50 seconds East, along said South line, a distance
of 393 00 feet to a found 1/2-inch iron rod with cap for a corner,
THENCE South 1 degree 09 minutes 10 seconds West, departing said South line, a
distance of 529 70 feet to a point for a corner, said corner lying South 1 degree 09
minutes 10 seconds West, a distance of 20 00 feet from a %z-mch iron rod with cap set for
witness, which hes on the North line of a 40-foot wide Drainage and Utility Easement as
shown on said recorded plat in Cabinet C, Page 87,
THENCE North 88 degrees 50 minutes 50 seconds West, along the centerline of said
easement, a distance of 41180 feet to a point for a corner lying on the East line of said
Kimberly Drive and being South 88 degrees 50 minutes 50 seconds East, a distance of
0 30 feet from an `x' found for witness in top of a headwall,
THENCE North 3 degrees 11 minutes 09 seconds East, along said East line, a distance of
20 00 feet passing a set'/retch iron rod with cap, and continuing on line, a total distance
of 530 03 feet to the POINT OF BEGINNING AND CONTAD41NG 213,153 square feet
or 4 893 acres of land
AND
BEING an 8 4812 acre tract of land in the M E P & P R R CO SURVEY, ABSTRACT
NO 927, and being all of Lot 1, Block 3 and part of Lot 6, Block 3, Phase V of the
Golden Triangle Industrial Park, an addition to the City of Denton, Denton County,
Texas, according to the plat thereof recorded in Cabinet C, Page 87, Plat Records of
Denton County, Texas, and being more particularly described as follows
BEGINNING at a 1/2-inch iron rod with a yellow plastic cap stamped "A H HALFF
ASSOC " (hereafter referred to as "with cap") found at the point of intersection of the
south right-of-way line of Morse Street (60 feet wide), and the west right-of-way line of
Mayhill Road (60 feet wide),
THENCE South 03 degrees 24 minutes 15 seconds West, along said west line, a distance
of 530 11 feet to a''/x-inch iron rod with cap found for a corner,
THENCE North 88 degrees 50 minutes 50 seconds West, departing said west line and
along the south line of Lot 1, at 562 39 feet passing the southwest comer of Lot 1 and
continuing along the south line of Lot 6, in all a distance of 687 04 feet to a''/x-inch iron
rod with cap found on the south line of Lot 6,
THENCE North 01 degree 09 minutes 10 seconds East, departing said south line of Lot
6, a distance of 529 70 feet to a'/z-inch iron rod with cap found for a comer, said point
lying on the south right -of --way line of Morse Street (60 feet wide),
THENCE South 88 degrees 50 minutes 50 seconds East, along said south right-of-way
line, at 158 16 feet passing the northeast corner of Lot 6 and continuing along the north
line of Lot 1, in all a distance of 707 86 feet to the POINT OF BEGINNING AND
CONTAINING 369,438 square feet or 8 4812 acres of land
BOTH TRACTS TOTALING 13 3742 acres of land
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