May 10, 2011 MinutesCITY OF DENTON CITY COUNCIL MINUTES
May 10, 2011
After determining that a quorum was present, the City Council convened in a 2" Tuesday session
on Tuesday, May 10, 2011 at 4:00 p.m. in the City Council Work Session Room.
PRESENT: Council Member King, Council Member Heggins, Council Member Gregory,
Council Member Engelbrecht, Mayor Burroughs, Council Member Watts, Mayor Pro Tem Kamp
ABSENT: None
1. Receive a report and hold a discussion regarding the potential purchase and renovation of
the Golden Triangle Mall.
Linda Ratliff, Director of Economic Development, stated that the Herring Group and Weitzman
Group, two Dallas area retail developers, were currently in negotiations with Chase Bank
regarding a possible joint purchase of the Golden Triangle Mall. Staff was currently meeting with
Herring and Weitzman regarding a possible public/private partnership.
Gar Herring, Herring Group presented information on the current state of the mall, a renovation
plan, case studies of other malls they had worked with, and the possibility of a public/private
partnership. He reviewed the background of the Herring Group and presented previous projects in
the area they had been involved with such as Allen, McKinney and Cedar Hill.
Herb Weitzman, Weitzman Group, presented information indicating their commercial real estate
brokerage services.
Herring stated that a strong fundamental of the mall was the location and felt that it was the best
real estate in Denton with a site plan that still worked. Past practices for the mall had been very
limited capital improvements to keep the mall competitive in terms of the exterior appearance,
common areas, property signage and tenant storefronts which were are outdated and tired. Chase
Bank hired the Weitzman Group to oversee the leasing and management of the mall since
September 1, 2010. The mall had major retailers with short term leases and without substantial
investment, the mall would continue with fractured ownership of parcels. Their goal was to make
mall shopping, dining and entertainment a destination for all of Denton.
Their plan to make the mall new again involved renovation projects so as to be exciting, different
and modern; bringing in new and stronger shops and restaurants. A renovation plan would consist
of (1) constricting a new exterior facade; (2) redesign and enhance mall entrances; (3) upgrade
the landscaping; (4) renovate the mall common area with new lighting, flooring and furniture; (5)
update tenant storefronts and interiors to match the newest prototypes; (6) install new proper
signage; and (6) secure long-term commitments from the anchor stores. A renovation study
showed that national fashion tenants were needed, more sit down restaurants, entertainment, fast
casual dining, and securing significant renovations of the anchor stores.
Without a major renovation, the sales and property tax base for the mall and adjacent properties
would continue to erode at an accelerated pace. A public/private partnership, in the form of an
economic development agreement, was being considered that would involve a site plan, design,
platting variances, signage, code compliance, etc. A public/private partnership would look at
what was best for the mall. Redevelopment needed to achieve minimum acceptable returns for
investors and those economic returns had to be competitive with similar investments. The current
plans did not achieve that minimum acceptable return void which an economic development
agreement would fill.
City of Denton City Council Minutes
May 10, 2011
Page 2
Herring continued that components of an economic development agreement were different for a
mall than for a ground up development and traditional incentives in other economic development
agreements might not be applicable. Current Chapter 380 agreements were a performance based
package. Their proposal had no upfront cash requested from the City but did ask for City
participation in upfront costs of certain projects with direct public benefits such as parks. The
economic development agreement might contain types of incentives and terms that were unique
and creative to this situation.
Mayor Burroughs asked if the time frame for the incentives would be brought forward soon.
Herring stated correct as they were trying to get a quick time frame to present the proposal.
Council Member Engelbrecht noted that the plan did not include the expansion of any of the
facilities and that it was a common complaint that the stores were undersized.
Herring stated that they had talked to several stores about increasing size.
Council Member Heggins asked about bringing in upscale stores that other areas did not have.
Herring stated that would make the merchandizing level significantly higher. They did not want
to overshoot the market by out-pricing what consumers could buy. They wanted strong national
brands but also local unique brands that would survive.
Council Member Heggins asked about the possibility of adding a second floor to the mall.
Herring stated that there were constrictions in doing that because of the parking ratio. Parking
decks would have to be built which were very expensive and the mall did not receive enough rent
to offset the cost of parking spaces.
Council Member Gregory asked how the mall saw itself in relationship to Rayzor Ranch.
Herring stated that he was focused on Golden Triangle Mall, securing stores there and picking up
new people. There were still lot of retailers who wanted to come to the Denton market. Some of
those could come to the mall.
Council Member Gregory asked if the current anchors at the mall might leave for Rayzor Ranch.
Herring stated competition might result in that. Retailers wanted to be in the Denton market but
the Golden Triangle Mall was not currently where they wanted to be.
Mayor Burroughs noted that the sales at the mall were much less over the past 10 years. He felt
that it was not that there were fewer people or less demographics, it was just that people were not
shopping in Denton. There was a lot of sale potential in Denton.
Following the completion of the Work Session, the City Council convened in a Special Called
Meeting.
City of Denton City Council Minutes
May 10, 2011
Page 3
1. Consider adoption of an ordinance on first reading to voluntarily annex approximately
1.148 acres of land located within the City's Extraterritorial Jurisdiction (ETJ) in accordance with
Chapter 43 of the Texas Local Government Code. The site is located on the west side of Country
Club Road; just north of the Education Center at Denton; between Ryan Road to the north and
Brush Creek Road to the south. The Planning and Zoning Commission recommends approval (5-
0). (A11-0001)
Mark Cunningham, Director of Planning and Development, stated that there had been two
previous public hearings on the proposal. The property was part of DH-5 which was annexed on
May 4, 2010 and which was subject to a non-annexation agreement. Section 5A of the
agreement, governing the subject property, stated that if the owner filed an application or plan of
development or otherwise commenced development on any portion of the property inconsistent
with the Development Plan provided in Section 2, then Sections 1 and 3 of the agreement would
be void. The development done on property was inconsistent with the non-annexation agreement
but a service use agreement was already in progress when the non-annexation agreement was
done. Staff was not recommending annexation of the entire site, just a small portion of a parking
lot which would be considered the new development. The second reading of the ordinance would
be on June 5, 2011.
Council Member King asked if the road work that was required could be done so as to be
affordable for the property owners.
Cunningham stated that as staff went through the review process, they would consider all options.
Mayor Pro Tem Kamp motioned, Council Member Engelbrecht seconded to adopt the ordinance.
On roll call vote, Council Member King "aye", Council Member Watts "aye", Council Member
Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye", Mayor Pro
Tem Kamp "aye", and Mayor Burroughs "aye". Motion carried unanimously.
2. Consider a request for an exception to the Noise Ordinance for the level of decibels and
the hours of operation for the purpose of a fundraiser with live music on Saturday, May 21, 2011
at a residence located at 1000 Myrtle Street. The fundraiser will benefit the start-up of an
independent publication. The exception is requested for extension of the hours of operation for
amplified sound from 10:00 p.m. to midnight and for the level of decibels to be increased from
70 decibels to 80 decibels. Due to residential property located east of the event location, staff
recommends allowing amplified sound until midnight with sound levels not to exceed 70
decibels.
Emerson Vorel, Director of Parks and Recreation, showed a picture of the property illustrating
where the location was and the surrounding businesses. He stated that there were no homes
located on the block requested for the fundraiser. The music would end by midnight with
approximately 100 guests expected.
Council Member Engelbrecht motioned, Council Member Heggins seconded to approve the staff
recommendation to allow amplified sound until midnight with sound levels not to exceed 70
decibels. On roll call vote, Council Member King "aye", Council Member Watts "aye", Council
Member Heggins "aye", Council Member Gregory "aye", Council Member Engelbrecht "aye",
Mayor Pro Tem Kamp "aye" and Mayor Burroughs "aye". Motion carried unanimously.
City of Denton City Council Minutes
May 10, 2011
Page 4
3. Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from the
City Council or the public with specific factual information or recitation of policy, or accept a
proposal to place the matter on the agenda for an upcoming meeting AND Under Section
551.0415 of the Texas Open Meetings Act, provide reports about items of community interest
regarding which no action will be taken, to include: expressions of thanks, congratulations, or
condolence; information regarding holiday schedules; an honorary or salutary recognition of a
public official, public employee, or other citizen; a reminder about an upcoming event organized
or sponsored by the governing body; information regarding a social, ceremonial, or community
event organized or sponsored by an entity other than the governing body that was attended or is
scheduled to be attended by a member of the governing body or an official or employee of the
municipality; or an announcement involving an imminent threat to the public health and safety of
people in the municipality that has arisen after the posting of the agenda.
There were no items suggested by Council.
Following the completion of the Special Called Meeting, the City Council convened in a Closed
Meeting to consider the following:
1. Closed Meeting:
A. Consultation with Attorneys -Under Texas Government Code, Section 551.071.
1. Consultation, discussion, deliberation, and receipt of information from the
City's attorneys regarding potential litigation with Denton County Electric
Cooperative, Inc. d/b/a CoServ Electric and CoServ Gas, Ltd. relating to
disputes concerning franchise issues, where public discussion of these
legal matters would clearly conflict with the duty of the City's attorneys to
the City of Denton and the Denton City Council under the Texas
Disciplinary Rules of Professional Conduct of the State Bar of Texas.
2. Consultation, discussion, deliberation, and receipt of information from the
City's attorneys regarding Oncor Electric Delivery Company relating to
proposed increase in rates, where public discussion of these legal matters
would clearly conflict with the duty of the City's attorneys to the City of
Denton and the Denton City Council under the Texas Disciplinary Rules of
Professional Conduct of the State Bar of Texas.
With no further business, the Mayor reconvened the Open Meeting and adjourned in Open
Session.
MARK A. BURROUGHS JENNIFER WALTERS
MAYOR CITY SECRETARY
CITY OF DENTON, TEXAS CITY OF DENTON, TEXAS