HomeMy WebLinkAbout2001-263S Our Uoeumnn,WrJlo,rcM0l�SellY�N imrce Abu.. ASr ..3tlov
ORDINANCE NO 0W 0/` 0 1p
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT
AGREEMENT WITH SALLY BEAUTY COMPANY, INC SETTING FORTH ALL THE
REQUIRED TERMS OF THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH
THE TERMS OF CHAPTER 312 OF THE TEXAS TAX CODE, SETTING FORTH THE
VARIOUS CONDITIONS PRECEDENT TO SALLY BEAUTY COMPANY, INC RECEIV-
ING TH� TAX ABATEMENT, PROVIDING FOR A SEVERABILITY CLAUSE, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, on the 31" day of July, 2001, after a public hearing duly held in accordance
with Tex Tax Code §312 201 (the "Act"), the City Council passed Ordinance No 2001- 25-0
(the "Ordinance") establishing Reinvestment Zone No IV, City of Denton, Texas as a commer-
cial/indugtnal reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chap-
ter 312, Subchapter B of the Act, and
WHEREAS, on the 2"a day of May, 2001 Sally Beauty Company, Inc submitted an ap-
plication'for tax abatement with various attachments to the City concerning the contemplated use
of certain property located within the Zone, and
WHEREAS, the City Council finds that the contemplated use of the premises and the
contemplated improvements to the premises, as indicated by Sally Beauty Company, Inc are
consistent with encouraging the development of the Zone in accordance with the purposes for its
creation and are in compliance with the Denton Tax Abatement Policy, and
WHEREAS, the City Council deems it in the public interest to enter into a Tax Abate-
ment Agreement with Sally Beauty Company, Inc, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
S CTION 1 That the findings contained in the preamble to this ordinance are true and
correct and are adopted as a part of the whole ordinance
SSECTION 2 That the City Council finds and determines the following
That the contemplated use of the premises and the contemplated improvements of the prem-
ises, as indicated by Sally Beauty Company, Inc are consistent with encouraging the devel-
opmgnt of the Zone in accordance with the purposes of its creation and are in compliance
with the Denton Tax Abatement Policy
2 That the City Council finds that the improvements sought by Sally Beauty Company, Inc
within the Zone are feasible and practical and would be a benefit to the land to be included in
the Zone and to the City after the expiration of the Tax Abatement Agreement to be entered
into with Sally Beauty Company, Inc
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3 That the City Council finds that the Tax Abatement Agreement contains all the terms which
are mandatonly required to be included in any tax abatement agreement under §312 205 of
the Act
4 That, in accordance with §312 2041 of the Act, the City Council finds that not later than the
date on which the City Council considered this ordinance, and not later than the seventh day
before the date the City enters into a Tax Abatement Agreement with Sally Beauty Company,
Inc, that the City Manager, through the Director of Community Development, who are
hereby designated and authorized by the City Council to give such notice, delivered to the
presiding officer of the Denton Independent School District and Denton County a written no-
tice that the City intends to enter into this Tax Abatement Agreement with Sally Beauty
Company, Inc, and that this notice included a copy of the proposed Tax Abatement Agree-
ment in substantially the form of the Tax Abatement Agreement attached to this ordinance
5 That before the passage of this ordinance, the City Council held a public hearing in accor-
dance with §312 201 of the Act and created Reinvestment Zone No IV
6 The City Council finds that the project within Reinvestment Zone No IV is a redevelopment
of an existing business as defined in the Tax Abatement Policy and requires additional incen-
tives to promote economic development that generally satisfies the requirements of the policy
and the City Council hereby waives the mimmum threshold requirement within the policy for
tax abatement and authorizes a tax abatement of 100% on the increased valuation of the im-
provement in each year covered by the tax abatement agreement over the value of the prop-
erty for the year in which the tax abatement agreement is executed as set fourth in the
Agreement
SECTION 3 That the Mayor, or in her absence, the Mayor Pro Tem, is hereby author-
ized to execute a Tax Abatement Agreement with Sally Beauty Company, Inc, substantially in
the form of the Tax Abatement Agreement which is attached to and made a part of this ordinance
for all purposes as if written word for word herein
SECTION 4 That the City Council hereby instructs and authorizes the City Manager to
inspect, audit, and evaluate the progress of Sally Beauty Company, Inc to determine if it has met
all of the conditions of the attached Tax Abatement Agreement prior to the tax abatement going
into effect
SECTION 5 That if any section, subsection, paragraph, sentence, clause, phrase, or
word in this ordinance, or application thereof to any person or circumstance is held invalid by
any court of competent jurisdiction, such holding shall not affect the validity of the remaining
portions of this ordinance, the City Council of the City of Denton hereby declares that they
would have enacted such remaining portions despite any such validity
Page 2 of 3
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SECTION 6 That this ordinance shall become effective immediately upon its passage
and approval
PASSED AND APPROVED this the _,�Iji day of 2001
ATTEST
JENNIFER WALTERS, CITY SECRETARY
M
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY ►
EULINE BROCK, MAYOR
Page 3 of 3
STATE OF TEXAS § TAX ABATEMENT AGREEMENT BETWEEN
COUNTY OF DENTON § THE CITY OF DENTON AND
CITY OF DENTON § SALLY BEAUTY COMPANY, INC
This Tax Abatement Agreement (the "Agreement") is entered into by and between the
City of Denton, Texas (the "City'), duly acting herein by and through its Mayor, and Sally
Beauty Company, Inc, a Delaware corporation authorized to do business in the State of Texas,
or its assignee as set out in Section 6, (the "Owner"), duly acting herein by and through its
authorized officers
WHEREAS, the City has adopted a resolution stating that it elects to be eligible to par-
ticipate in tax abatement and has adopted guidelines and criteria governing tax abatement agree-
ments known as the Denton Tax Abatement Policy, and
WHEREAS, on the 6`h day of June, 2000, the City Council of Denton, Texas (the "City
Council") adopted the Denton Tax Abatement Policy (the "Policy") through the passage of
Resolution No 2000-028 which Policy was amended on the I" day of May 2001, by Resolution
No 2001-020, which states that the City elects to become eligible to participate in tax abatement,
which is attached hereto and incorporated herein as Exhibit "A" and made a part of this Agree-
ment for all purposes, and
WHEREAS, the Policy constitutes appropriate "guidelines and criteria" governing tax
abatement agreements to be entered into by the City as contemplated by Section 312 002 of the
Texas Tax Code, as amended (the "Code"), and
WHEREAS, on the 31" day of July 2001, the City Council passed Ordinance No
(the "Ordinance") establishing Reinvestment Zone No IV, City of Denton, Texas, as a commer-
ciaUindustnal reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chap-
ter 312, Subchapter B of the Code (the "Act"), and
WHEREAS, Owner owns certain real property being approximately 13 3742 acres at or
near 3900 Morse Street within the corporate limits of the City of Denton, Texas as more par-
ticularly described in Exhibit "B" attached hereto and incorporated herein by reference and made
a part of this Agreement for all purposes (the "Premises") located entirely within the Zone, and
WHEREAS, on the 2nd day of May, 2001, Owner submitted an application for tax abate-
ment with various attachments to the City concerning the contemplated use of the Premises (the
"Application for Tax Abatement"), attached hereto and incorporated herein as Exhibit "C" and
made a part of this Agreement for all purposes, and
WHEREAS, the City Council has found 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 of said Zone in accordance with
the purposes for its creation and are in compliance with the Policy and the Ordinance and similar
guidelines and criteria adopted by the City and all applicable law, and
WHEREAS, the City Council has found that the terms of this Agreement, and the Prem-
ises and Improvements, including the tangible personal property investment, meet the applicable
guidelines and criteria heretofore adopted by the City Council, which are set forth in the Policy,
and
WHEREAS, the City Council has found that the Project constitutes a redevelopment
project of the type which requires additional incentives to promote economic development that
generally satisfy the requirements of the Policy, and the City Council has waived the minimum
threshold and determined that it is necessary to exceed the maximum fifty percent (50%) in tax
abatement to redevelop the building contained within the property, and
WHEREAS, written notice that the City intends to enter into this Agreement, along with
a copy of this Agreement, has been furnished by the City, in the manner and by the time pre-
scribed by the Code, to the presiding officers of the governing bodies of each of the taxing units
in which the Premises is located,
NOW, THEREFORE, the City and Owner for and in consideration of the premises and
the promises contained herein do hereby contract, covenant, and agree as follows
1
CONDITIONS OF ABATEMENT
A A condition of the Abatement (defined below) is that, by December 31, 2003
(subject to force majeure delays not to exceed 180 days), the Owner shall make a capital invest-
ment of at least $5,000,000 in the improvements on the Premises, including an investment in
tangible personal property, including renovation, reconstruction, and repairs of the building, fur-
niture, fixtures and improvements for the redevelopment and renovation of the facility for office
and/or warehouse use The investment in tangible personal property shall not include inventory
and supplies The kind, number, location and details of the Improvements and tangible personal
property investment are described in the Application for Tax Abatement For the purposes of
this section, capital investment with respect to construction, renovating and repairing the Im-
provements shall include costs related to the development and improvement of the real estate,
including without limitation, construction costs and design and engineering costs and such im-
provements and renovations made by Owner that constitute both permanent real property and
tangible personal property improvements to the Premises For the purposes of this paragraph, the
term "force majeure" shall mean any circumstance or any condition beyond the control of
Owner, as set forth in Section 22 "Force Majeure" which makes it impossible to meet the above -
mentioned threshold Provided, however, should Owner fail to make a capital investment in the
Improvements, including tangible personal property, of at least $5,000,000 on or before Decem-
ber 31, 2003, except as delayed by force majeure, the Agreement will terminate and all tax
abatements previously given will be refunded to the City by the Owner in accordance with Sec-
tion 1D hereof Provided, further that Owner shall only be entitled to Tax Abatements on the
increase in the value of real property improvements over the assessed value of the improvements
Page 2 of 12
on January 1, 2001 — the year in which this Agreement is executed No abatement will be given
on any increase in the value of the land or personal property For example, if Owner spends
$5,000,000 on real property improvements on the Premises in 2002, but the appraised value of
the improvements increases only $2,000,000 over the appraised value in the 2001 base year, the
tax abatement shall be limited to the $2,000,000 increase in the appraised value of the improve-
ments
B A condition of the abatement is that the Improvements be constructed, the Owner
or its assignee under Section 6 shall maintain occupancy of the building for the full ten years of
the Tax Abatement, and that the Owner or its assignee maintain the $5,000,000 investment on
the Premises, including the tangible personal property investment, for the full ten years of the
Tax Abatement, and the Premises, be used substantially in accordance with the description of the
project set forth in the Application for Tax Abatement
C A condition of this abatement is that throughout the Term of the Abatement, the
Improvements shall be operated and maintained for the purposes set forth herein — for office
and/or warehouse use — so that the uses of the Premises shall be consistent with the general pur-
pose of encouraging development or redevelopment of the Zone, except as otherwise authorized
or modified by this Agreement
D If the total Improvements constructed on the project and tangible personal prop-
erty investment do not meet the threshold value of $5,000,000 by December 31, 2003, this
Agreement will be terminated and the Owner shall immediately refund all tax abatements previ-
ously given by City with interest at 7% per annum from the date the Owner received the abate-
ment Such threshold being a condition precedent to receiving a tax abatement If the Owner
receives an abatement in error but does not meet the threshold investment level, the Owner shall
immediately, upon receiving notice from the City, remit the amount by which the tax abatement
should be reduced with interest at Seven percent (7%) per annum from the date the Owner re-
ceived the abatement
E In consideration of the abatement granted herein Owner agrees to comply with all
the terms and conditions set forth in this Agreement
2
GENERAL PROVISIONS
A The City has concluded that it has adopted guidelines and criteria governing tax
abatement agreements for the City to allow it to enter into this Agreement containing the terms
set forth herein
B The City has concluded that procedures followed by the City conform to the re-
quirements of the Code and the Ordinance, and have been and will be undertaken in coordination
with Owner's corporate, employee, and business relations requirements
C The Premises are not in an improvement project financed by tax increment bonds
Page 3 of 12
D Neither the Premises nor any of the improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the Planning and Zoning
Commission of the City, or any member of the governing body of any taxing units Joining in or
adopting this Agreement
E In the event of any conflict between the City zoning ordinances, or other City or-
dinances or regulations, and this Agreement, such ordinances or regulations shall control
ABATEMENT TERMS AND CONDITIONS
A In consideration of the Owner meeting all the terms and conditions of abatement
set forth herein, the City hereby grants a tax abatement ("Abatement") (1) to Owner relative to
all improvements to the Premises (the "Improvements"), such Abatement to be subject to the
following terms and conditions
B The value of the Abatement on the Premises and the Improvements shall be the
following portion of the increase in value of the Improvements on the premises over their value
on January 1, 2001, the year in which this Agreement is executed in accordance with Section
312 204 of the Code
ONE -HUNDRED (100%) OF THE INCREASE IN VALUE ON THE IM-
PROVEMENTS TO THE REAL PROPERTY ONLY SUCH IMPROVE-
MENTS MAY INCLUDE, BUT ARE NOT LIMITED TO EQUIPMENT OF A
PERMANENT AND IMMOVABLE NATURE AFFIXED TO THE BUILDING
WITH A LIFE LESS THAN THE BUILDING, (EX HVAC AND ELEVA-
TORS) LAND, INVENTORY, EQUIPMENT AND BUSINESS PERSONAL
PROPERTY VALUES, AND OTHER TANGIBLE PERSONAL PROPERTY
IMPROVEMENTS ARE NOT ELIGIBLE FOR ABATEMENT
C The real property's current value — the value as of January 1, 2001 — may not be
abated
D Owner shall have the right to protest and contest any or all appraisals or assess-
ments of the Premises and/or Improvements If Owner is successful in obtaining a reduction in
taxes based upon such protest or contest after a tax abatement for that year has been granted, it
shall immediately notify the City, through its City Manager
E The term of the Abatement (the "Term") shall begin on January 1, 2003 (the "Be-
ginning Date") and, unless sooner terminated as herein provided, shall end on the December 31s`
immediately preceding the W anniversary of the Beginning Date or December 31, 2012
F If the capital investment requirements of the Improvements are not met, the tax
abatement will not be granted
Page 4 of 12
RECORDS AND EVALUATION OF PROJECT
A The Owner shall provide access and authorize inspection of the property by City
employees and allow sufficient inspection of financial information to insure that the improve-
ments are made and the threshold has been 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 City shall annually (or such other times deemed appropriate by the City)
evaluate the Project to ensure compliance with this Agreement Owner shall provide information
to the City on a form provided by the City for the evaluation The information shall include,
without limitation, an inventory listing the kind, number, and location of and the total investment
value of all improvements and investments to the property, including the value of all buildings
and other structures and permanent improvements installed, renovated, repaired or located on the
Premises
B The City Manager shall make a decision and rule on the eligibility of the Project
for tax abatement based on the information furnished each year by the Owner on or before
August 1 of the taxable year and shall so notify Owner, the Joint Committee on Tax Abatement,
and the City Council If the Owner is dissatisfied with the City Manager's decision, it can appeal
his decision to the City Council The City Council's decision on the matter shall be binding, fi-
nal, and not appealable, except for arbitrary and capricious acts and actions, gross negligence or
willful misconduct Any appeal shall be under the substantial evidence rule, provided, however,
that notwithstanding the foregoing, under no circumstances shall the City Manager or the City
Council be authorized to terminate, reduce, or recapture the Abatement unless the conditions of
the Abatement are not satisfied within the time frames specified herein
C During normal office hours throughout the term of this Agreement, providing rea-
sonable notice is given to Owner, the City shall have access to the Premises by City employees
for the purpose of inspecting the Premises and the Improvements and investments in accordance
with paragraph 4(A) to ensure that the Improvements and investments are being made in accor-
dance with the specifications and conditions of this Agreement and to verify that the conditions
of this Agreement are being complied with, provided that such inspections shall not interfere
with Owner's normal business operations
D The Owner shall annually make a certification in writing to the City Council, the
Commissioners Court of Denton County, and the Board of Trustees of the Denton Independent
School District, on or before June I't of each year this Agreement is in effect, that certifies that
the Owner is in compliance with each applicable term of this Agreement and any other tax
abatement agreement it may have entered into with Denton County and the Denton Independent
School District
E Nothing in this Agreement shall preclude Denton County and the Denton Inde-
pendent School District from entering into tax abatement agreements which contain different
terms and conditions than this Agreement and different portions of abatement than shown in
Page 5 of 12
paragraph 3B and C of this Agreement, in accordance with Section 312 206(c) of the Act, Chap-
ter 312, Subchapter B, of the Act, and all other applicable laws
FAILURE TO MEET CONDITIONS
A In the event that (i) any of the conditions in Section I — "Conditions of Abate-
ment" — are not met, or (ii) Owner allows its ad valorem real property taxes with respect to the
Premises or Improvements, or its ad valorem taxes with respect to any tangible personal prop-
erty, if any, owned by the Owner which is included in the Improvements, owed the City to be-
come delinquent and fails to timely and properly follow the legal procedures for protest and/or
contest of any such ad valorem real property or tangible personal property taxes, or (m) any
other conditions of the Abatement Agreement are not met, then a "Condition Failure" shall be
deemed to have occurred (it being understood that a Condition Failure relating to any condition
set forth in paragraph 1 shall not be deemed to occur merely because at a particular time it cannot
be determined whether such condition will be met, but shall occur only if at a particular time it
can be definitively determined that such condition will not be met ) In the event that a Condition
Failure occurs, the City shall give Owner written notice of such Condition Failure and if the
Condition Failure has not been cured or satisfied within ninety (90) days of said written notice,
the Abatement shall be terminated in accordance with paragraph lA and D and Owner shall re-
mit the amount of the Abatement by which it was reduced plus interest from the time the Owner
received the Abatement for each year the Owner is out of compliance Provided, however, that if
such Condition Failure is not reasonably susceptible of cure or satisfaction within such ninety
(90) day period and Owner has commenced and is pursuing the cure or satisfaction of same, then
after first advising City Council of efforts to cure or satisfy same, Owner may utilize an addi-
tional ninety (90) days Time in addition to the foregoing 180 days may be authorized by the
City Council, and such authorization shall not be unreasonably withheld If a Condition Failure
is not cured or satisfied after the expiration of the applicable notice and cure or satisfaction pen-
ods, the Abatement shall be terminated with respect to the year in which notice of the Condition
Failure is given and for all future years It being understood that the Abatement with respect to
any year prior to the year in which notice of the Condition Failure is given shall not be forfeited
or recaptured except as indicated under Section 513 and other applicable sections hereof Not-
withstanding any provision in this Agreement to the contrary, Owner shall refund to the City all
tax abatements previously received with interest for the year in which the notice of Condition
Failure is given
B If, however, the Owner fails to invest $5,000,000 in improvements by December
31, 2003, the amount of the Abatement will be reduced to zero in accordance with Sections IA
and D, except as delayed by force majeure If the owner fails to maintain its contractual obliga-
tions, including Owners failure to maintain occupancy of the building and failure to maintain the
$5,000,000 investment on the Premises, except as delayed by force majeure, for the full ten years
of the Tax Abatement, then this Agreement may be terminated by the City and the amount of the
Abatement will be reduced to zero in accordance with Section IA and D In this event, Owner
shall refund to the City all tax abatements previously granted and received under this Agreement
with interest on the amount to be refunded at seven percent (7%) per annum Additionally, as set
Page 6 of 12
forth in Section 1 A and D, failure to construct and place Improvements and tangible personal
property on the Premises that have a cost of at least $5,000,000 by December 31, 2003, shall
cause the agreement to be terminated and require Owner to refund all tax abatements previously
granted with interest
C That in the event of a Condition Failure by Owner which is not cured or satisfied as set
forth herein, in addition to a partial or total recapture of the tax abatement, the City may cancel
or modify this Agreement
6
EFFECT OF SALE, ASSIGNMENT, OR LEASE OF PROPERTY
A The Abatement with respect to the Project shall vest in Owner and shall be as-
signable, with City approval, which shall not be unreasonably withheld, to any individual, part-
nership, joint venture, corporation, trust or other entity (irrespective of whether or not such as-
signee is related to or affiliated with Owner) which acquires title to the Project Any assignee of
Owner or any assignee of a direct or indirect assignee of Owner shall be treated as "Owner" un-
der this agreement
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 pre-
paid or by hand delivery
OWNER CITY
General Counsel Michael A Conduff, City Manager
Sally Beauty Company, Inc City of Denton
3900 Morse Street 215 East McKinney
Denton, Texas 76208 Denton, Texas 76201
CITY COUNCIL AUTHORIZATION
This Agreement was authorized by the City Council by passage of an enabling ordinance
at its meeting on the 3l' day of July, 2001, authorizing the Mayor to execute this Agreement on
behalf of the City, a copy of which is attached hereto and incorporated herein as if written word
for word herein
Page 7 of 12
BOARD OF DIRECTORS AUTHORIZATION
This Agreement was entered into by Owner, pursuant to authority granted by the Sally
Beauty Company, Inc Evidence, which must be satisfactory to the City, that the person signing
this Agreement is authorized to bind Owner to all the terms and conditions of the Agreement is
attached hereto and incorporated herein as Exhibit "D" as if written word for word herein
10
SEVERABILITY
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, para-
graph, sentence, phrase, or word In the event that (i) the term of the Abatement with respect to
any property is longer than allowed by law, or (it) the Abatement applies to a broader classifica-
tion of property than is allowed by law, then the Abatement shall be valid with respect to the
classification of property abated hereunder, and the portion of the term, that is allowed by law
11
ESTOPPEL CERTIFICATE
Any party hereto may request an estoppel certificate from another party hereto so long as
the certificate is requested in connection with a bona fide business purpose The certificate,
which if requested will be addressed to the Owner, shall include, but not necessarily be limited
to, statements that this Agreement is in full force and effect without default (or if default exists
the nature of default and curative action, which should be undertaken to cure same), the remain-
ing term of this Agreement, the levels and remaining term of the Abatement in effect, and such
other matters reasonably requested by the party(ies) to receive the certificates
12
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 or-
dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to
intervene in said litigation
13
APPLICABLE LAW
This Agreement shall be construed under the laws of the State of Texas Venue for any
action under this Agreement shall be the State District Court of Denton County, Texas This
Agreement is performable in Denton County, Texas
Page 8 of 12
s IOnrD omenm\Gmo t.eJsallyA cmem5G
15
MUTUAL ASSISTANCE
City and Owner agree to do all things necessary or appropriate to carry out the terms and
provisions of this Agreement and to aid and assist each other in carrying out such terms and pro-
visions Owner and City agree at any time, and from time to time, to execute any and all docu-
ments reasonably requested by the other party to cant' out the intent of this Agreement
16
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
17
BINDING
This Agreement shall be binding on the parties and the respective successors, assigns,
heirs, and legal representatives
18
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
19
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
20
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
21
AMENDMENT
This Agreement may be modified by the parties hereto to include other provisions which
could have originally been included in this Agreement or to delete provisions that were not
Page 9 of 12
21
AMENDMENT
This Agreement may be modified 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 pursuant to the procedures set forth in Title 3, Chapter
312 of the Code
22
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 sus-
pended during such period but for no longer than such period of time when the party is unable to
perform rr,�.
That this Agreement was EXECUTED this 3 � day of
2001, by duly authorized officials of the City and by Sally BeautyitState
pany, c , a Delaware
corporation, being authorized and in good standing to do business in ' exas
CITY OF DENTON, TEXAS
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY 4
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
M.
Page 10 of 12
ATTEST
m
SALLY BEAUTY COMPANY, INC
MICgpEL�REN PRESIDENT
Page 11 of 12
STATE OF TEXAS
COUNTY OF DENTON
Before me, the undersigned authority, a Notary Public in and for said State of Texas, on
this day personally appeared Eulme Brock, Mayor for the City of Denton, known to me to be the
person who signed and executed the foregoing instrument, and acknowledged to me that this in-
strument was executed for the purposes and consideration therein expressed
Given under my hand and seal of office this the 61 day of
44
2001
AN'
I RSYTHE
„ Notary Puollo, state
of Texas
My Canmlxlon Expires
i•�
MAY 9, 2002
STATE OF TEXAS
COUNTY OF DENTON
Notary ublic in d fo he
State of Texas
My Commission Expires 5 D f D/
Before me, the undersigned authority, a Notary Public in and for said State of Texas, on
this day personally appeared Michael Renzulli, on behalf of Sally Beauty Company, Inc , known
to me to be the President of Sally Beauty Company, Inc and to be the person who signed and
executed the foregoing instrument, and acknowledged to me that this instrument was executed
for the purposes and consideration therein expressed
2001
Given under my hand and seal of office this the day of
IiAli9ELL LASLiE
NOTARY PUBLIC
State of Texas
Camn Exp �
Notary Public in and for the
State of Texas
My Commission Expires Y-ff �("_
Page 12 of 12
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EXHIBIT "A"
RESOLUTION NO O -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
AMENDING THE POLICY FOR TAX ABATEMENT FOR THE CITY OF DENTON TO
ESTABLISH GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
AGREEMENTS TO ALLOW WAIVER OF THE FIVE MILLION DOLLAR THRESHOLD
AND THE MAXIMUM TAX ABATEMENT PERCENTAGE, TO DEFINE PROFESSIONAL
POSITIONS, TO MAKE OTHER CHANGES AS SET FORTH IN THE AMENDED POLICY,
AND DECLARING AN EFFECTIVE DATE
WHEREAS, on June 6, 2000, the City Council adopted guidelines and criteria, known as
the Denton Policy for Tax Abatement (sometimes referred to as "Tax Abatement Policy"),
passing by Resolution No R2000-028, and
WHEREAS, the City Council desires to promote economic development within Denton,
and
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 and the creation of jobs, and
WHEREAS, the Property Development and Tax Abatement Act, Chapter 312 of the Tex
Tax Code, allows the city to establish its own criteria for tax abatement and the City has
previously adopted guidelines for tax abatement and resolutions No R90-018, R98-004 and
R2000-028, and
WHEREAS, the Joint Committee on Tax Abatement, composed of representatives of the
City of Denton, the Denton Independent School District, and Denton County have recommended
amendments to Section III "Value of Incentives" of the Tax Abatement Policy to allow waiver of
the five million dollar threshold and the maximum tax abatement percentage and to define
professional positions, which is attached hereto as the amendment to the Tax Abatement Policy,
and
WHEREAS, any amendment to the Tax Abatement Policy requires an affirmative vote of
three -fourths of the members of the City Council (six affirmative votes) in accordance with
Section 312 002(e) of the Tax Code, and
WHEREAS, the City Council deems it in the public interest to continue to be eligible for
participation in tax abatement and to amend the new policies, guidelines and criteria governing
tax abatement agreements to be known as the Tax Abatement Policy, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
s wogAb..-ftllq as
SECTION 1 That the polices, guidelines and criteria found in the Denton Policy for Tax
Abatement are hereby amended by amending Section III "Value of Incentives" to allow a waiver
of the five million dollar threshold and the maximum tax abatement percentage on a case -by -case
basis, to define professional positions, and to make other changes set forth in the amended policy
in accordance with the amendment that is attached to this Resolution as Exhibit A and made a
part of this Resolution for all purposes From and after the effective date of this Resolution, the
amended Tax Abatement Policy shall constitute policy guidelines and criteria governing tax
abatement agreements for the City of Denton in accordance with Chapter 312 of the Tax Code
SECTION 2 That the City Council hereby reasserts its decision to become eligible to
participate in tax abatement The City Council provides certain tax incentives applicable to
business enterprises in various reinvestment zones which are established in the City, in
accordance 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
amended Tax Abatement Policy
SECTION 3 That save and except as amended hereby, all the remaining sections,
sentences, clauses, paragraphs and phrases of the Denton Policy for Tax Abatement shall remain
in full force and effect
SECTION 4 That this resolution shall become effective immediately upon its passage
and approval at the regular meeting of the City Council of the City of Denton, Texas, on the 1"
day of May, 2001, at which meeting a quorum was present and which meeting was held in
accordance with the provisions of Tex Gov 't Code _§551 001, et seq
PASSED AND APPROVED this the day of 12001
ATTEST
JENNIFER WALTERS, CITY SECRETARY
BY
APP OVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
Csti�i.e� �ZD�"
El JI BROCK, MAYOR
Page 2 of 2
EXHIBIT A
SECTION III
DENTON POLICY FOR TAX ABATEMENT
IH VALUE OF INCENTIVES
The criteria outlined in the Application will be used by the Joint Committee on Tax
Abatement in determining whether or not it is in the best interests of the affected taxing
entities 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 of the project New, expanding and modernizing businesses may be
considered for abatement if the minimum threshold, as described in Table 1 below, is met
Once a determination has been made that tax abatement should be offered, the value and
term of the abatement may be determined by referencing the following table
TABLE 1 Establishes a framework for considering the length of abatement according
to assessed real property value of improvements and of tangible personal property located
on the real property
VALUE OF STRUCTURE
AND PERSONAL PROPERTY
IN MILLION DOLLARS
YEARS OF
ABATEMENT
PERCENTAGE OF
ABATEMENT
100
10
15- 25%
80
9
15-25%
65
8
15- 25%
50
7
15- 25%
35
6
15-25%
20
5
15- 25%
15
4
15- 25%
10
3
15- 25%
5
2
15-25%
To qualify, companies must meet the minimum threshold of the policy in the first 24 months
from the execution of the agreement or as specified in the tax abatement agreement
If upon initial application a project qualifies for tax abatement under the guidelines set forth
in this policy, the taxing entities may consider granting an additional 5% abatement for each
one of the following factors provided, however, that the total tax abatement does not exceed
-1-
50% annually or continue for a period of more than ten years No applicant may receive
credit for more than five of the following factors
■ The project will occupy a building that has been vacant for at least two years,
• The project will create high -skilled, high -paying jobs as documented by the
applicant, (A breakdown of number of jobs per job classification and entry level
wage per classification will be used to determine eligibility),
■ The project will involve a significant relationship with one of the two universities in
Denton,
• At least 25% of the new jobs created by the project will be filled by Denton
residents,
• The project will provide knowledge -based jobs (at least 25 percent of jobs require
college bachelors degree at entry level),
■ The project will donate significant public art to the community (To qualify,
donation must be approved by Greater Denton Arts Council and City Council),
■ The project will donate significant materials/equipment to the public schools (To
qualify, donation must be approved by DISD and City Council ),
■ The project will create improvements to the Denton Central Business District,
■ The project will result in the formation of a business park,
■ The project is an international or national headquarters facility
The total tax abatement may not exceed 50% annually for ten years All abatements are
subject to final approval of the City Council and DISD Board of Trustees, or the County
Commissioner's Court Even though a project may meet the criteria asset forth in this
policy, an application may be denied at the discretion of the City Council and/or DISD
Board of Trustees Tax abatement shall not apply to any portion of the land value of the
project The thresholds as described in Table 1 are considered guidelines for establishing
the Tax Abatement Agreement terms However, the City and DISD may determine that a
lower or higher percentage and/or a shorter or longer term of abatement may be more
appropriate for an individual project If abatement is approved, the City and DISD may
consider applying all or a portion of the abatement in the first year or during any shorter
period within the term of the tax abatement agreement For example, an approved
abatement of 25 percent for four years may be applied as 100 percent abatement for one
year
When the City of Denton and Denton Independent School District determine that incentives
are required to retain existing businesses which propose to improve or redevelop property
within the City limits, the Denton City Council and Denton Independent School District
Board may consider these "special projects" on a case -by -case basis and reserve the right to
waive the minimum threshold and/or exceed fifty percent (50%) in tax abatement The City
of Denton and Denton Independent School District may also take into consideration as
"special projects" the expansion/redevelopmentof existing businesses that create new or
additional professional jobs Abatement hereunder will only apply to the increased
valuation of the improvements over the appraised value of the property prior to such
improvements as same is established by the Denton Central Appraisal District the year in
which the tax abatement agreement is executed The City of Denton and Denton
Independent School District may also consider other tax incentives authorized bylaw
-2-
Professionaljobs are defined as "occupations which require specialized and theoretical
knowledge which is usually acquired through college training or through work
experience and other training which provides comparable knowledge, a calling requiring
specialized knowledge and often long and intensive academic preparation, requires some
research, analysis, report writing and presentations Special licensing, certification, or
registration may be required to perform the job task, the work of professional positions is
creative, analytical, evaluative, or interpretive, and is characterized by personal
responsibility to keep abreast of and exercise judgment and broad perspective in the
application of an organized body of knowledge that is constantly studied to make new
discoveries and interpretations or to improve the data, materials and methods, may
involve some supervision and budgeting/planning "
When the City of Denton and Denton Independent School District determine that abandoned
property may require additional incentives to promote economic development that generally
satisfies the requirements of this policy, the taxing entities may waive the mimmum
threshold and/or exceed fifty percent (50%) in tax abatement, or consider other tax
incentives for special projects to redevelop abandoned buildings consistent with existing
law For the purpose of this policy, an abandoned building is defined as a building that has
been identified as being suitable for commercial or industrial development, has been vacant
for a minimum of five years or has substantially declined in appraised value Abatement
would only be considered on the increased valuation of the improvements in each year
covered by the tax abatement agreement over the value of the property for the year in which
the tax abatement agreement is executed The City of Denton and Denton Independent
School District may also consider other tax incentives authorized by law
-3-
P �abveTdtpNAL W o1 UwYmmYNuoloOom`OPTa MYmmi PoLry dee
RESOLUTION NO Od d
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
REPLACING A POLICY FOR TAX ABATEMENT FOR THE CITY OF DENTON TO
ESTABLISH GUIDELINES AND CRITERIA GOVERNING TAX ABATEMENT
AGREEMENTS, AND DECLARING AN EFFECTIVE DATE
WHEREAS, on January 21, 1998, the City Council adopted guidelines and criteria,
known as the Denton Policy for Tax Abatement, passing Resolution No R98-004, and
WHEREAS, that Tax Abatement Policy has now expired, and
WHEREAS, the City Council desires to promote economic development within Denton,
and
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 and the creation of Jobs, and
WHEREAS, the Property Development and Tax Abatement Act, Chapter 312 of the Tex
Tax Code, allows the city to establish its own criteria for tax abatement and the City has
previously adopted guidelines for tax abatement and resolutions No R90-018 and R98-004, and
WHEREAS, the Joint Committee on Tax Abatement, composed of representatives of the
City of Denton, the Denton Independent School District, and Denton County have recommended
a new Tax Abatement Policy to replace the expired policy, which is attached hereto as the
Denton Policy for Tax Abatement, and
WHEREAS, the City Council deems it in the public interest to continue to be eligible for
participation in tax abatement and to adopt the new policies, guidelines and criteria governing
tax abatement agreements to be known as the Denton Policy for Tax Abatement, NOW,
THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES
S_,ECTION 1 That the polices, guidelines and criteria found in the Denton Policy for Tax
Abatement, attached hereto is 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 Denton Policy for Tax Abatement shall constitute policy
guidelines and criteria governing tax abatement agreements for the City of Denton in accordance
with Chapter 312 of the Tex Tax Code
P yya,QdWp LWvMomm Policy dm
SECTION 2 That 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 of % of the members of the Council
SECTION 3 That the City Council hereby reasserts its decision to become eligible to
participate in tax abatement The City Council provides certain tax incentives applicable to
business enterprises in various reinvestment zones which are established in the City, in
accordance with the applicable provisions in Chapter 312 of the Tex Tax Code and in
accordance with the guidelines and criteria established in the attached Exhibit A
5F TC ION 4 That this resolution shall become effective immediately upon its passage
and approval at the regular meeting of the City Council of the City of Denton, Texas, on the 6`h
day of June, 2000, at which meeting a quorum was present and which meeting was held in
accordance with the provisions of Tex Gov 't Code §551 001, et eq
PASSED AND APPROVED this the day of _ 2000
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
A /'
BY
EULINE BROCK, MAYOR
Page 2 of 2
EXHIBIT A
DENTON POLICY FOR
TAX ABATEMENT
I GENERAL PURPOSE AND OBJECTIVES
The City of Denton (City) and the Denton Independent School District (DISD) are committed to the
promotion of high quality development in all parts of the city and to an ongoing improvement in the quality
of life for its citizens Insofar as these objectives are generally served by the enhancement and expansion of
the local economy, the City and DISD will, on a case -by -case basis, give consideration to providing tax
abatement as a stimulus for economic development in Denton It is the policy of the City and DISD 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 or DISD are under any obligation to provide tax
abatement to any applicant
Denton County ad valorem taxes also may be abated, however, applications will be considered
separately under the guidelines of the Denton County tax abatement policy
All applicants shall be considered on a case -by -case basis Abatements will be considered only as
inducements to generate development that otherwise would not occur Abatements will not be considered if
construction of a project already has begun
Tax abatements, as described in this policy, will be available for new and/or existing facilities and
structures and for businesses wanting to locate, expand or modernize basic industries, corporate office
headquarters or distribution centers, except as this policy may be limited for property described in Section
312 211(a) of the Texas Property Tax Code (V emons Texas Civil Statutes Annotated, hereinafter referred to
as "Tax Code ")
1
5 \TAX ABATEMENT\TAX ABATEMENT POLICY 2000 FMAL ORAFT &C
II JOINT TAX ABATEMENT COMMITTEE
Requests for tax abatement shall be reviewed by the Joint Committee on Tax Abatement, said
Committee being comprised of two elected officials each from the City, the DISD and Denton County One
additional staff person from each jurisdiction shall be appointed to serve as a nonvoting, ex officio member
of the committee
The Joint Committee on Tax Abatement serves as a recommending body to the taxing entities
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 the Committee or presented to the Committee The
Tax Abatement Application is presented as Exhibit A of this policy All meetings of the Joint Committee
shall be held in compliance with the Texas Open Meetings Act, Chapter 551 of the Texas Government Code
III VALUE OF INCENTIVES
The criteria outlined in the Application will be used by the Joint Committee on Tax Abatement in
determining whether or not it is in the best interests of the affected taxing entities 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 of the project New, expanding and modernizing
businesses may be considered for abatement if the minimum threshold, as described in Table 1 below, is
met
Once a determination has been made that tax abatement should be offered, the value and term of the
abatement may be determined by referencing the following table
2
s %TAX ABAMNffiWMALX ABATEWNT POLICY 2000 FINAL DMFT da
TABLE 1 Establishes a framework for considering the length of abatement according to assessed real
property value of improvements and of tangible personal property located on the real property
VALUE OF STRUCTURE
AND PERSONAL PROPERTY
IN MILLION DOLLARS
YEARS OF
ABATEMENT
PERCENTAGE OF
ABATEMENT
100
10
15- 25%
80
9
15- 25%
65
8
15- 25%
50
7
15- 25%
35
6
15- 25%
20
5
15- 25%
15
4
15- 25%
10
3
15- 25%
5
2
15-25%
To qualify, companies must meet the minimum threshold of the policy in the first 24 months from
the execution of the agreement or as specified in the tax abatement agreement
If upon initial application a project qualifies for tax abatement under the guidelines set forth in this
policy, the taxing entities may consider granting an additional 5% abatement for each one of the following
factors provided, however, that the total tax abatement does not exceed 50% annually or continue for a
period of more than ten years No applicant may receive credit for more than five of the following factors
The project will occupy a building that has been vacant for at least two years,
The project will create high -skilled, high -paying jobs as documented by the applicant, (A
breakdown of number of jobs per job classification and entry level wage per classification will be
used to determine eligibility),
The project will involve a significant relationship with one of the two universities in Denton,
5 \TAX ABATEAENTTAX ABATEWNT POLICY 2000 FINAL DRAFT Coc
■ At least 25% of the newjobs created by the project will be filled by Denton residents,
■ The project will provide knowledge -based jobs (at least 25 percent of jobs require college
bachelors degree at entry level),
■ The project will donate significant public art to the community (To qualify, donation must be
approved by Greater Denton Arts Council and City Council),
■ The project will donate significant materials/equipment to the public schools (To qualify,
donation must be approved by DISD and City Council ),
■ The project will create improvements to the Denton Central Business District,
■ The project will result in the formation of a business park,
■ The project is an international or national headquarters facility
The total tax abatement may not exceed 50% annually for ten years All abatements are subject to
final approval of the City Council and DISD Board of Trustees, or the County Commissioner's Court 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 Council and/or DISD Board of Trustees Tax abatement shall not apply to any
portldn of th4 A V41 O of the project The thresholds as described in Table 1 are considered guidelines for
establishing the Tax Abatement Agreement terms However, the City and DISD may determine that a lower
or higher percentage and/or a shorter or longer term of abatement may be more appropriate for an individual
project If abatement is approved, the City and DISD may consider applying all or a portion of the
abatement in the first year or during any shorter period within the term of the tax abatement agreement For
example, an approved abatement of 25 percent for four years may be applied as 100 percent abatement for
one year
To receive tax abatement from the City, the owner of the project must enter into a contract with
n
5 \TAX ABATEMENTTAX ABATEMENT POLICY IWO FINAL DRAFT dw
Denton Municipal Electric Utilities to provide electric service for a penod of not less than five years and
maintain performance of contractual obligations for the full period of the contract, unless located in an area
in which the Denton Municipal Electric Utilities is not certified to serve Upon recommendation of Denton
Municipal Electric Utilities, this requirement maybe waived
:When t ', ify of Deitt& and Nntpi"u4epend0ut School District determine that abandoned property
mayrequtreag�onalj#oehiv aprd� 00riam*developmenithatgenerallysatisii'sthe requirements
of this pplieyi r to zg �hiii s tna ' waiyo the mitumurn threshold and/or exceed fifty percent (50%) in tax
abatement, ti b tT it r, Jkih6eJjUy"Q 'or specfdl,projectsto rodevelopabandoned buildinggeonsistent
with existing �iik, r Icy, A� abandoned building is defined as 'a building that has
been idetttifie Sei}i d3 151ct, ;rbrtttS t ftiiul of itidtistrlal development, has been vacant for a mmimwn
of five yesm,& h, apprAkd value, Abatement would only be considered on the
increased°val4Wii t 00 iiijrdybrrieitts lnt each yeaftovered by the tax abatement agreement over the value
of the prope4�f6r thb dear, j Which thel-tax abatement agreement is executed The City of Denton and
Denton Indep iit dhbol;L�i�tt trhay also cpnsid& other tax incentives authorized by law
Preliminary Application
IV PROCEDURAL GUIDELINES
Any person, organization or corporation desiring that the City or DISD 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 either the City or DISD is under any obligation to provide tax abatement to any
applicant
A Applicant shall complete the attached "Application for Tax Abatement "
S \TAX ABATEWNnTAX ABATEMENT POLICY 2M FINAL DRAFT doo
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 mformationto the City Manager, City of
Denton, 215 E McKinney, Denton, TX 76201
D All information in the application package detailed above will be reviewed for completeness
and accuracy Additional information maybe requested as needed
E The application will be distributed to the appropriate City and DISD departments for internal
review and comments Additional information maybe requested as needed
F Copies of the complete application package and staff comments will be provided to the Joint
Committee on Tax Abatement
G Fiscal agents of the City, DISD and County will review the application for comments and
recommendation Additional information maybe requested as needed
Consideration of the Application
H The Joint Committee on Tax Abatement will consider the application at a regular or called
meeting(s) Additional information maybe requested as needed
I The recommendation of the Joint Committee on Tax Abatement will be forwarded, with all
0
S \TAX ABATFJ.fENT\TAX ABATEMENT POLICY 2M FINAL OBAFT duc
relevant materials, to the chief administrative officer of each taxing entity
J If the City Council of Denton 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
K The City Council of Denton 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
L The City Council of Denton 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
M 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
5 \TAX ABATEMENT\TAX ABATEMENT POLICY 20OO FINAL DRAFT do.
be incorporated into the agreement
N The governing bodies of Denton County and DISD may consider ratification of and
participation in the tax abatement agreement between the City of Denton and the applicant
O The City and DISD reserve the authority to enter into tax abatement agreements at differing
percentages and/or terms as set forth in the guidelines of this policy, consistent with the
requirements of the Tax Code
Any tax abatement agreement will address various issues, including but not limited to, the following
1 General description of the project,
2 Amount of the tax abatement and percent of value to be abated each year,
3 Method of calculatingthe value of the abatement,
4 Duration of the abatement, including commencement date and termination date,
5 Legal description of the property,
6 Kind, number, location and timetable of planned improvements,
7 Specific terms and conditions to be met by applicant,
8 The proposed use of the facility and nature of construction,
9 Contractual obligations in the event of default, violation of terms or conditions, delinquent
taxes, recapture, administration and assignment
Annual Evaluation
Upon completion of construction, the Joint Committee on Tax Abatement 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
I
S \TAX "ATEMENWAX ABATEMENT POLICY 2mo FINAL DAAFT doc
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
Transfer or Assignment
A contract for tax abatement may be transferred or assigned by the original applicant to a new owner
upon approval by the various taxing jurisdictions after such a recommendation is made by the Joint
Committee on Tax Abatement
Local 11US10055e& and Minority Business Enterprises
In performing this Agreement, OWNERS agree to use diligent efforts to purchase all goods and
services from bento� businesses whenever such goods and services are comparable in availability, quality
and price
As a matter ofpolicywith respect to CITY projects and procurements, CITY also encourages the
use, if applicable, of qualified contractors, subcontractors and suppliers where at least fifty-one percent
(51%) of the Ownership of such contractor, subcontractor or supplier is vested in racial or ethnic
minorities or women, In the selection of subcontractors, suppliers or other persons or organizations
proposed for work on this Agreement, the OWNERS agree to consider this policy and to use their
reasonable and best efforts to select and employ such companies and persons for work on this Agreement
Job Recruiting from Low -Moderate Income Census Tracts
OWNER, lessee or assignee of OWNER agrees it will endeavor to make available, or endeavor to
cause lessees or assignees to make available, full-time or part-time employment with on-the-job training
for Denton citizens In this effort, OWNER, lessee or assignee agrees to recruit from the low -moderate
income Census tracts as further defined in the Concentration of Low/Mod Income by Block Groups
shown below
0
5 \TAx ABATEMENMA% ABATEMENT POLICY 20M FINAL DRAFT doc
EXHIBIT A
The City of Denton
Tax Abatement Applica
About the Application
The Tax Abatement Application provides the City with specific information on the project The information
requested in the Application is designed to address the criteria developed within the City of Denton's Tax
Abatement Policy The information serves as the basis for fiscal analysis and overall project evaluation This
evaluation is provided to Council Members and serves as a source document during City Council deliberations
The Application And The Agreement
Specific information from the Application (like value of new investment and employment commitments) is
incorporated into the Abatement Agreement In fact, the Application is an attachment to the Agreement Since the
agreeimportant that
ach
ion on the
ion
e answered in
realise ally as possible ent is a binding contract, Simply puts the application es partuoffthe process afrom start to finish so you'll ll and as
wantt to
make sure you're comfortable with the contents
When Is The Application Final?
The answer to this question is very simple When you tell us, "It's final " It is not uncommon for a property
owner(s) to submit numerous Applications as drafts for informational and evaluative purposes only As
conversations continue, the property owner will submit a finalized version of the Application that includes all of the
commitments agreed to during the discussions
What About Confidentiality
confidential information provided to the City as a part of this
Section 312 003 of the Texas Tax Code makes
application that describes the specific processes or business activities to be conducted or the equipment or other
property to be located on the property This information is not subject to public disclosure until the tax abatement
agreement is executed Section 522 131 of the Texas Government Code (Texas Public Information Act) makes
confidential information which relates to economic development negotiations between the City and a business
prospect that the City seeks to have locate, stay or expand in or near the territory of the City The information must
relate to a trade secret of the business prospect, commercial or financial information which the business prospect
can demonstrate based on specific factual evidence that disclosure would cause substantial competitive harm to the
person from whom the information was obtained or information about a financial or other incentive being offered to
the business prospect by the City or by another person Information about a financial or other incentive being
offered to the business prospect is required to be disclosed when an agreement is made with a business prospect
The City is subject to disclosing most records and documents upon request under the Public Information Act
Accordingly, please clearly indicate and mark any information you consider propnetary This would include
anything in your ercial or
ch
you can demonstrate by spec specific factual evidence that would caion which you consider a trade use sub tantial competitive harm iinformaf disclion osed,
information which describes the specific processes or business activities to be conducted or the equipment or
other property for which the tax abatement is sought, any financial or other incentive you may be seeking
from the City or any other information you deem to be confidential under the law
Who is Authorized To Sign the Application
Because the Application itself is non -binding, the person signing need not be the property owner or even an
individual duly authorized to sign on behalf of the property owner However, if an Agreement is reached, the
Application will be an attachment to the Agreement and its contents will be binding through the authorized signature
required on the Agreement
11
S \TAX ABATEMENTTAX ABATEMENT POLICY 3000 FINAL OBAFT &o
City of Denton
Tax Abatement Application
City of Denton
City Manager's Office
Denton, Texas 76201
(940)349-8307
(940) 349-8596 FAX
12
5 \TAX ABATEWNTTAX ABATEAgNT POLICY 2000 FINAL DRAFT d.
APPLICATION FOR TAX ABATEMENT
CITY OF DENTON, TEXAS
Property Owner
Company or Project Name
Mailing Address
Telephone Fax No
Contact Name
Title
Mailing Address
Telephone Fax No
Provide a chronology of plant openings, closing and relocations over the past 15 years
Provide a record of mergers and financial restructuring during the past 15 years
Will the occupants of the project be owner or lessee? If lessee, are occupancy commitments already
existing?
Is the project a relocation of existing facility or a new facility to expand operations? If relocation, give
current location
13
S \TAX ABATEMENMAX ABATEMENT POLICY 2000 FINAL DRAFT d.,
6 If an ewsting Denton business, will project result m abandonment of exlstmg facihty� If so, the value of the
existing facility will be subtracted from the value of the new facility to arrive at total project value
7 Property Description
- Attach a copy of the legal description detailing property's metes and bounds
- Attach map of project including all roadways, land use and zoning within 500 feet of site
8 Current Value Attach copy of latest property tax statement from the Denton County Central Appraisal
District (include both real and personal property)
9 Increased Value/Estimated Total Cost of Project
10 Indicate amount of tax abatement and number of years requested for each taxing entity
_I % years
11
Denton Independent School District % I years
years
List any other financial incentives this project will request/receive
Give a brief description of the activities to be performed at this location, including a description of products
to be produced and/or services to be provided
14
5 \TAX ABATEI NMAX ABATEMENT POLICY 2WO FINAL DRAFT d.
12 Project Construction Phase
A Estimate percentage of project development and construction dollars to be spent with Denton based
contractors or sub -contractors
Construction costs $ I Percentage iocat contractors
B Construction Employment Estimates
C Describe any off -site infrastructure requirements
• Water
• Wastewater
• Streets
• Drainage
• Other
W
S ITAX AIIATENIENWAX A13ATENJENT POLICY 20M FINAL DRAFT d.
13 Project Operation Phase Provide employment information for the number of years tax abatement is
14
renuented
At Project
Existing
Start Date
At Term of
Employment Information
FATotal
Operation
(mo/yr)
Abatement
(if applicable)
number of permanent, full-time jobs
B Employees transferred from outside Denton
C Net pennanent full-time jobs (A minus B )
E Total annual payroll for all permanent, full-time
jobs (A )
F Types of jobs created List the job titles and number of positions in each category that will be employed
at the facility Provide average wage for each category
G Estimate annual utility usage for project
Electric $ Water $
Wastewater $ Gas $
Describe any other direct benefits to the City of Denton as a result of this project (e g , sales tax revenue or
project elements identified in Tax Abatement Policy, Section 1I1)
16
S \TAX ABAMt MNTTAX AaATEMENT POLICY 3000 FINAL DRAFT d.
15 Is property zoned appropriately9 Yes No
Current zonmg
Zoning required for proposed project
Anticipated variances
16 Is property platted? Yes No
Will replattmg be necessary Yes No
17 Discuss any environmental impacts created by the project
A List any permits for which applicant must apply Applicant will be required to provide City with copies
of all applications for environmental permits upon completion of application(s)
B Provide record of compliance to all environmental regulations for the past five years
18 Provide specific detail of any businesses/residents that will be displaced and assistance that will be available
from the requesting company
19 Provide description of any historically significant area included within the project's area as determined by the
Historic preservation Officer If any, give detail of how the historically significant area will be preserved
20 Justification for Tax Abatement Request Substantiate and more fully describe the justification for this
request Include the amount of the abatement requested and show how it will contribute to the financial
viability of the project Submit attachments if necessary
17
S \TAX ABATEh NI\TAX ABATEMENT POLICY 2000 FINAL DRAFT d.
21 List additional abatement factors to be considered for this project as outlined on pages 3 and 4 of the tax
abatement policy
22 Financial Information Attach a copy of the latest audited financial statement or, in the case of a new project,
a business plan
This tax abatement application is submitted with the acknowledgement that additional certified financial information may be
required
Authorized Signature
Date
18
5 \TAX ABAaWN=T ABATEMENT POLICY 2M FINAL DRAFT doc
EXHIBIT 'B"
Legal Description of Sally Beauty Company, Inc property
BEING a tract of land situated in the M E P and P R R Co 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 '/z-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''/z-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-inch 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 centerlme 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'/z-mch iron rod with cap, and continuing on line, a total distance
of 530 03 feet to the POINT OF BEGINNING AND CONTAINING 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 ''/s-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
Maylull 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''/2-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 1/2-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''/s-mch iron rod with cap found for a corner, 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 comer 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
OMITF�� C
0 oaA t�o�O�,
0 c +
� NT
O
}C� 4 '%
40
GQ
O C�
~TON t i OQ�
°oaaoaooa��
City of Denton
Tax Abatement Application
City of Denton
City Manager's Office
Denton, Texas 76201
(940) 349-8307
(940) 349-8596 FAX
Tax Abatement Policy June 2000 - 1 -
APPLICATION FOR TAX ABATEMENT
CITY OF DENTON, TEXAS
Property Owner Sally Beauty Company, Inc
Company or Project Name
Mailing Address 3900 Morse Street
Denton, Texas 76208
Contact Name Gary Robinson
Title Sr Vice President, CFO
Mailing Address 3900 Morse Street
Denton, Texas 76208
Telephone (940)898-7500 Fax No (940)484-6114
Provide a chronology of plant openings, closing and relocations over the past 15 years
In excess of 2,600 stores opened and closed in the last 15 years
Will make available to City's Finanmal Advisor if required
Provide a record of mergers and financial restructuring during the past 15 years
There have been in excess of 30 acquisitions in the last 15 years that have contributed to the
Company's growth These have been throughout the US, Canada, United Kingdom and Germany
Will make available to City's Financial Advisor if required
Will the occupants of the project be owner or lessee9 If lessee, are occupancy commitments already
existing9
Owner
Is the project a relocation of existing facility or a new facility to expand operations'? If relocation, give
current location
Expand operations within existing facility Conversion from warehouse to office space
Tax Abatement Policy June 2000 - 2 -
If an existing Denton busmess, will project result it abandonment of existing faciltty9 If so, the value of the
existing facility will be subtracted from the value of the new facility to arrive at total project value
7 Property Description
Attach a copy of the legal description detailing property's metes and bounds See Exhibit 1 & 2
- Attach map of project including all roadways, land use and zoning within 500 feet of site See Exhibit 3
8 Current Value Attach copy of latest property tax statement from the Denton County Central Appraisal
District (include both real and personal property) See Exhibit 4
9 Increased Value/Estimated Total Cost of Project $5 M Phase I -- Proposed Phase II Additional $5 M
10 Indicate amount of tax abatement and number of years requested for each taxing entity
11
List any other financial incentives this project will request/receive
Give a brief description of the activities to be performed at this location, including a description of products
to be produced and/or services to be provided
This location is the corporate headquarters to support of the Worldwide operations of 2,350 stores Support
provided at this location encompasses Finance, Legal, Marketing, Real Estate, Merchandising, Human
Resources, Information Systems, Advertising, and Logistics Support
Tax Abatement Policy June 2000 ' 3
12 Project Construction Phase
A Estimate percentage of project development and construction dollars to be spent with Denton based
contractors or sub -contractors Will be based on low bid through the architect and contractor when
selected
costs
B Construction Employment Estimates
C Describe any off -site infrastructure requirements
None
• Wastewater
None
• Streets
None
• Drainage
None
• Other
None
Tax Abatement Policy June 2000
13 Project Operation Phase Provide employment information for the number of years tax abatement is
14
requested
Employment Information
Existing
Operation
(if applicable)
At Project
Start Date
(mo/yr)
At Term of
Abatement
A Total number of permanent, full-time Jobs
345
450
B Employees transferred from outside Denton
0
0
C Net permanent full-time Jobs (A minus B)
345
450
E Total annual payroll for all permanent, full-time
Jobs (A )
$16,640,000
$21,704,000
F Types of Jobs created List the Job titles and number of positions in each category that will be employed
at the facility Provide average wage for each category
The proposed office expansion is expected to provide the capability to expand the corporate staff as it grows
to support the increasing international sales and stores Current profile of positions are approximately
57% professional average salary of $60,000
43% clerical average salary of $24,000
Job positions encompass the full range from clerical administration to vice president Positions will be in
accounting, marketing, human resources, MIS, finance, advertising, real estate, and training Salaries will be
from $20,000 to $150,000
G Estimate annual utility usage for project Current Usage
Describe any other direct benefits to the City of Denton as a result of this project (e g ,sales tax revenue or
project elements identified in Tax Abatement Policy, Section III)
The Company increases the sales tax base not only through employee growth in local spending but through
the number of travelers (other business partners and manufacturers) who meet regularly with Company
professionals The Company performs on -site training for retail store management from across the nation,
with individuals generating commerce for Denton's hotels and restaurants
Tax Abatement Policy June 2000
15 Is property zoned appropriately9 Yes
Current zoning Light Industrial
Zoning required for proposed protect Light industrial
Anticipated variances None
16 Is property platted? Yes
Will replattmg be necessary No
17 Discuss any environmental impacts created by the protect
A List any permits for which applicant must apply Applicant will be required to provide City with copies
of all applications for environmental permits upon completion of application(s)
None
B Provide record of compliance to all environmental regulations for the past five years
Sally Beauty Company, Inc has not been notified of any non-compliance with environmental regulations
18 Provide specific detail of any businesses/residents that will be displaced and assistance that will be available
from the requesting company
Not applicable
19 Provide description of any historically significant area included within the project's area as determined by the
Historic preservation Officer If any, give detail of how the historically significant area will be preserved
Not applicable
20 Justification for Tax Abatement Request Substantiate and more fully describe the justification for this
request Include the amount of the abatement requested and show how it will contribute to the financial
viability of the project Submit attachments if necessary
See impact study
Tax Abatement Policy June 2000 - 6 -
21 List additional abatement factors to be considered for this project as outlined on pages 3 and 4 of the tax
abatement policy
Retain Denton's only International headquarters
Recruit high -paying professional jobs
22 Financial Iformation Attach a copy of the latest audited financial statement or, in the case of a new project,
a business plan Will make available to City's Financial Advisor
This tax abatement application is submitted with the acknowledgement that additional certified financial information may be
required
Tax Abatement Policy June 2000 ' % "
EXHIBIT i
EXHIBIT A
ATTACHED TO GENERAL WARRANTY DEED
FROM CROW-4ENTON NO 1, GRANTOR,
TO SALLY BEAUTY COMPANY, INC GRANTEE
DATED DECEMBER Z.CI 1986
Legal Description
BEING a tract of land situated in the M.E.P. & P.R.R. Co. 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 1/2-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 SO 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 $29.70 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 1/2-inch
iron rod with cap set for witness, which lies 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 411 80 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 Og seconds East, along said East line, a
distance of 20 00 feet passing a set 1/2-inch iron rod with cap, and
continuing on line, a total distance of 530 03 feet to the POINT OF BEGINNING
AND CONTAINING 213,153 square Peat or 4.893 acres of land_
EXHIBIT 2
11OL2993 P0318
Exhibit A
BEING an 8 4812 acre tract of land in the M E P & P B. 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 1/2-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 corner of Lot 1
and continuing along the south line of Lot 6, in all a distance of 687 04 feet to a
1/2-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 1/2-inch iron rod with cap found for a corner,
said point lying on the south right-of-way line of Morse Street (60 feet wide),
THENCE South 88 degrees 50 minutes 50 seconds Last, 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 dxsLance of 707 86 feet to the POINT OF BEGINNING AND
CONTAINING 369,438 square feet or 8 4812 acres of land
EXHIBIT 3
EXHIBIT 4
CITY OF DENTON TAX OFFICE
' 601 E HICKORY SUITE F
DENTON TX 76205 000
(940)349-8319
TAX STATEMENT FOR YEAR 2000
Ad valorem taxes are due upon receipt of this statement and become RE RDS
delinquent February 1st Note See information below and on the back KEEP S P RT N F R Y
of this statement for additional important information
PROPERTY PERSONAL PROPERTY - CORP OFFICr
DESCRIPTION E & WAREHOUSE LOCATION 3900 M "
03900 MORSE ST RECEIVED AVA UIEED 13'555,718
PROPERTY Ilr�drllr�rrl�Illrr�rrLlilrr�rirrlLLrlLr,lll C' u 11 200r EXEMPTIONS 0
OWNER SALLY BEAUTY COMPANY HOMESTEAD t-) 0
PO BOX 490 ff�g4) ARTHURANDERSE DISABLED VETERAN (-) 0
SENIOR CITIZEN (-) 0
DENTON TX 76202-0490 DISABLED PERSON t-)
I Total Taxable Value I
Appi?ovrn Tax Rate Per $100
ART(^i(a /t, s I E N LLP TOTAL TAX
80
TAXES ARE DUE UPON RECEIPT
Total
due
If paid
in FEB
67,471
68,73296
Amount shown above is due
Total
due
if paid
in MAR
994
6g,994
11
before January 31st and be-
Total
due
if paid
in APR
71 255
27
comes delinquent on February
Total
due
if paid
in MAY
516
42
1st If paid after January 31st,
Total
due
if paid
in JUN
85 569
38
please see chart on the right
Total
due
if paid
in JUL
._.
SAVE TIME & MONEY ... BY CAREFULLY CHECKING THE FOLLOWING'
If you own several properties, you will receive a separate statement for each property If any statement is missing, notify this office immediately
We cannot accept post-dated checks Enter the correct data on your check
Write your check for the exact amount due on your statement(s) The City of Denton does not offer a split -payment option
1-1 Enclose the lower portion of this statement with your check The upper portion and your cancelled check will be your receipt
If you desire a validated receipt, enclose a stamped, self-addressed envelope with your remittance
112% Sales Tax reduced your city taxes by $ 21 193 57
Visit the City of Denton's Website at www cityofdenton com
DETACH AND RETURN LOWER PORTION WITH YOUR PAYMENT _ - - - - - -
900732000000063057763
TAX YEAR 2000
ACCOUNT NO 90073200000
PROP OWNER SALLY BEAUTY COMPANY
Iltrrlrllrrrrrllrlltrrirllllrrrllmlrrlinllrlrrlrl
CITY OF DENTON TAX OFFICE
PO BOX 961083
FT WORTH, TX 76161-0083
MAKE CHECKS PAYABLE TO
CITY OF DENTONµ�
� IF OVER 65 OR DISABLED, PLEASE
CHECK HERE FOR 1/4 PAYMEN pPLAN
S
-SEE BACK OF TATFUFNT FOR
CITY OF DENTON TAX OFFICE
w 601 E HICKORY, SUITE F
DENTON TX 76205
1940)349-8319 000
i
TAX STATEMENT FOR YEAR 2000
Ad valorem taxes are due upon receipt of this statement and become
delinquent February 1st Note See information below and an the back I KEEP THIS PORTION FOR YOUR REC R
of this statement for additional important information
PROPERTY GOLDEN TRIANGLE INDUSTRIAL PAR
DESCRIPTION K PH 5, BLOCK 3, LOT 6A, ACRES
03900 MORSE ST vYRECEIVED
PROPERTY I'lllllllllllllllllll1111IIIIIIIIIIIIIIIIIIII1111111 1�,� /, ") I)OO
OWNER SALLY BEAUTY CO INC
P 0 BOX 490 ARTHUR ANDERS
DENTON TX 76202-0490
Kra I dUR ANnFPQf tAJ1LLP
APPRAISED
VALUE
3,168,827
EXEMPTIONS
HOMESTEAD
(-) 0
DISABLED VETERAN
1-) 0
SENIOR CITIZEN
1-) 0
DISABLED PERSON
1-) 0
I Total Taxable Value 1 3 _ 1 RR _ R97
TOTAL TAX
TAXES ARE DUE UPON RECEIPT
Total
due
if
paid
in FES
17,907
68
Total
due
if
paid
in MAR
18,242
40
Amount shown above is due
Total
due
if
paid
in APR
18,577
13
before January 31st and be-
comes delinquent on February
Total
due
if
paid
in MAY
18,911
85
let If paid after January 31st,
Total
due
if
paid
In JUN
19,246
57
please see chart on the right
Total
due
if
paid
in JUL
22,710
96
SAVE TIME & MONEY BY CAREFULLY CHECKING THE FOLLOWING
If you own several properties, you will receive a separate statement for each property If any statement is missing notify this office immediate
ElWe cannot accept post-dated checks Enter the correct date on your check
Write your check for the exact amount due on your siatement(s) The City of Denton does not offer a split -payment option
Enclose the lower portion of this statement with your check The upper portion and your cancelled check will be your receipt
If you desire a validated receipt enclose a stamped, self-addressed envelope with your remittance
1/2% Sales Tax reduced your city taxes by S 5,62498
Visit the City of Denton's Website at www cityofdenton com
DETACH -AND- RETURN LOWER PORTION WITH YOUR PAYMENT
139812000000016736151
TAX YEAR 2000
ACCOUNT NO 13981200000
PROP OWNER SALLY BEAUTY CO INC
II1111111111111IIIIIIIIIIIIIItllllllllllllllllll1111
CITY OF DENTON TAX OFFICE
PO BOX 961083
FT WORTH, TX 76161-0083
MAKE CHECKS PAYABLE TO
CITY OF DENTON
TOtA�,ux DUE
n
'fry F4V 'i SSf�r kLl
I
IF OVER 65 OR DISABLED, PLEASE
CHECK HERE FOR 114 PAYMENT PLAN
-SEE BACK OF STATEMENT FOR DETAILS-
CITY OF DENTON TAX OFFICE
601 E HICKORY, SUITE F
DENTON TX 76205
(940)349— 8319 000
TAX STATEMENT FOR YEAR 2000
ad valorem taxes are due upon receipt of this statement and become
felinquent February 1st Note See information below and on the back I KEEP THIS PORTION FOR YOUR RE RD
if this statement for additional important information
PROPERTY GOLDEN TRIANGLE INDUSTRIAL PAR
DESCRIPTION K PH 5, BLOCK 3, LOT 1
99999 MORSE ST
PROPERTY ilutlrllnulrllluur�s�l�uu�n�lrlullulllnrl RECEIVED
OWNER SALLY BEAUTY CO INC
ATTN PRESIDENT�� nl I Znpr
PO BOX 490
DENTON TX 7620'iRTB ANDERSEN
ti"i ht�, r,.-
ARTHUR Ar\ir)Fpg9rN LLP
APPRAISED
VALUE 1 147,268
EXEMPTIONS
HOMESTEAD
(—) 0
DISABLED VETERAN
(—) 0
SENIOR CITIZEN
(—) 0
DISABLED PERSON
(—) 0
Total Taxable Value I 147.215 S
TOTAL TAX �d<
TAXES ARE DUE UPON RECEIPT
Total
due
if paid
In FEB
832
24
Total
due
if paid
in MAR
847
79
Amount shown above is due
Total
due
If paid
In APR
863
35
before January 31st and be-
comes delinquent on February
Total
due
if paid
in MAY
878
90
1st If paid after January 31st,
Total
due
if paid
in JUN
894
46
please see chart on the right
Total
due
if paid
in JUL
1,055
46
SAVE TIME & MONEY BY CAREFULLY CHECKING THE FOLLOWING -
If you own several properties you will receive a separate statement for each property If any statement is missing notify this office immediate
We cannot accept post-dated checks Enter the correct date an your check
Write your check for the exact amount due on your statement(s) The City of Denton does not offer a split -payment option
Enclose the lower portion of this statement with your check The upper portion and your cancelled check will be your receipt
If you desire a validated receipt enclose a stamped self-addressed envelope with your remittance
1/2% Sales Tax reduced your city taxes by $ 26141
Visit the City of Denton's Website at wwwcltyofdentoncom
DETACH AND RETURN LOWER PORTION WITH YOUR PAYMENT
082152000000000777797
TAX YEAR 2000
ACCOUNT NO' 08215200000
PROP OWNER SALLY BEAUTY CO INC
IIuJrlluuJlsllnuJlllrul�udn�uJ�JuIJ
CITY OF DENTON TAX OFFICE
PO BOX 961083
FT WORTH, TX 76161-0083
MAKE CHECKS PAYABLE TO
CITY OF DENTON _
i tS'T*,:ktO bU,E
000
IF OVER 65 OR DISABLED, PLEASE
CHECK HERE FOR 1/4 PAYMENT PLAN
-CFF RAPK nF: CTATFMFNT FOR DETAILS-
CITY OF DENTON TAX OFFICE
601 E HICKORY SUITE F
DENTON TX 76205
(940)349— 8319 000
TAX STATEMENT FOR YEAR 2000
valorem taxes are due upon receipt of this statement and become
,/Pmquent February 1st. Note See information below and on the back I KEEP THIS PORTION FOR YOUR REC RDS
of this statement for additional Important information
PROPERTY GOLDEN TRIANGLE INDUSTRIAL PAR
DESCRIPTION K PH 5, BLOCK 3, LOT 6 (PT) , A
039100 MORSE ST APPRAISED
VALUE 56, 186
PROPERTY I�,IIII'I1111'1''11111I1��I1111'll"1'lll'llllflll' REDEEXEMPTIONS
OWNER SALLY BEAUTY CO INC O�ED HOMESTEAD (—) 0
r DISABLED VETERAN (—)
POTBOXP49pIDENT �' a J 200,� SENIOR CITIZEN (-) p
DENTON TX 76202-04Mt`1L1R ANDERSE DISABLED PERSON (-) 0
Hr, ^\L)VL- Total Taxable Value 56,186
APT' "Ira ISNDFR�JEN LLP Tax Rate eer $100 0 5281.
TOTAL TAX ( ^.�,96,74
TAXES ARE DUE UPON RECEIPT
Total
due
if paid
in FEB
317
51
Amount shown above Is due
Total
due
if paid
in MAR
323
45
before January 31st and be-
Total
due
if paid
in APR
329
38
comes delinquent on February
Total
due
if paid
in MAY
335
32
1st if paidi after January 319t,
Total
due
if paid
in JUN
341
25
please see chart on the right
Total
due
If paid
in JUL
402
67
SAVE TIME & MONEY BY CAREFULLY CHECKING THE FOLLOWING
If you own several properties, you will receive a separate statement for each property If any statement is missing notify this office immediate
We cannot accept post-dated checks Enter the correct date on your check
Write your check for the exact amount due on your statements) The City of Denton does not offer a split -payment option
Enclose the lower portion of this statement with your check The upper portion and your cancelled check will be your receipt
ElIf you desire a validated receipt enclose a stamped, self-addressed envelope with your remittance
V2% Sales Tax reduced your city taxes by $ 9972
Visit the City of Denton's Website at www cltyofdenton com
DETACH AND RETURN LOWER PORTION WITH YOUR PAYMENT
082161000000000296740
TAX YEAR 2000
ACCOUNT NO 08216100000
PROP OWNER SALLY BEAUTY CO INC
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CITY OF DENTON TAX OFFICE
PO BOX 961083
FT WORTH, TX 76161-0083
MAKE CHECKS PAYABLE TO
CITY OF DENTON _
FgoFkprp out
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111
IF OVER 85 OR DISABLED, PLEASE
CHECK HERE FOR 114 PAYMENT PLAN
-SEE BACK OF STATEMENT FOR DETAILS-
Application for Tax Abatement
SALLY BEAUTY COMPANY
SUMMARY OF SCOPE OF PROJECT
Sally Beauty Company is the world's largest beauty supply company This $1 billion company has over
2,300 company owned stores in 47 states, Puerto Rico, Japan, Germany, Canada and theUnited
Kingdom The company began in New Orleans in 1964 (with one store) and moved to Denton in 1982
The Denton facility was originally built as the corporate office with warehouse space included Sally
no longer uses the warehouse space and has outgrown the existing office space Sally proposes
a redevelopment of existing warehouse into office space to accommodate their rapid growth The
first phase would convert approximately 30,000 square feet of warehouse into approximately 60,000
square feet of new office space, leaving another 30,000 of warehouse to be converted into office in
phase two Investment for each phase is estimated at $5 million each
Employee and Payroll
Before
After
Project
Project
Increase
Estimates
Total Number of Permanent Employees
345
105
AnnualiPa roll $16,640,000 Jill=
5,064,000
Average Annual Salary for New Jobs $48,231
Before
After
Utilities
Project
Project
Increase
(Calendar 1996)
(Projected)
Total Annual Utilities
$200,000
$400,000
$200,000
ECONOMIC IMPACT
Estimated Wage Impact per Year $1,731,888
(Calculated on 105 New Jobs @ $48,231/year)
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EXHIM
I&AY®BEAUTY
OMPANY,=
July 26, 2001
Honorable Eulme Brock
Mayor
City of Denton, Texas
215 East McKinney
Denton, Texas
Dear Mayor Brock
The City of Denton has asked that I render an opinion as to the authority of Michael Renzulli,
President, to bind Sally Beauty Company, Inc ("Sally") to the terms and conditions of the Tax
Abatement Agreement Between The City Of Denton And Sally Beauty Company, Inc, expected
to be dated in August, 2001 (the "Agreement")
I am familiar with the provisions of the Agreement and have examined copies of the Certificates
of Incorporation and By -Laws of Sally, resolutions adopted by the Board of Directors of Sally
and such other documents and data as I deemed relevant Based on the foregoing, and in reliance
thereon, subject to the limitations set forth below, it is my opinion that Michael Renzulll,
President, is authorized to bind Sally to all the terms of the Agreement
I am admitted to practice in the State of Texas The opinion expressed herein is limited to the
laws of the State of Texas and the United States of America, and I express no opinion as to the
laws of any other jurisdiction
This opinion is rendered solely for the City of Denton's use in connection with the transactions
contemplated by the Agreement, and may not be relied upon by other persons or for any other
purposes This opinion may not be quoted or used, in whole or in part, for any other purpose or
delivered to any other person, except with my prior written consent
4ereRoos
Vice President and General Counsel
PO Box 490 (76202) 3900 Morse St (76208) Denton, Texas (940) 898 7500