March 05, 2018 Minutes
CITY OF DENTON CITY COUNCIL MINUTES
March 5, 2018
After determining that a quorum was present, the City Council of the City of Denton, Texas
convened in a Work Session on Monday, March 5, 2018 at 11:30 a.m. in the Council Work Session
Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following items were
considered:
PRESENT: Council Member Hudspeth, Council Member Briggs, Council Member Duff,
Council Member Ryan, Council Member Gregory, Mayor Pro Tem Bagheri, and
Mayor Watts.
ABSENT: None.
1. Work Session Reports
A. ID 18-350 Receive a report, hold a discussion, and give staff direction regarding an incentive
request from United States Cold Storage.
Caroline Booth, Director of Economic Development, presented an incentive request from United
States Cold Storage. United States Cold Storage provided clients with refrigerated and frozen food
warehousing and transportation with 38 facilities in 13 states and 2500 employees. The project
was a refrigerated warehouse on a 40-acre site on Jim Christal Road in the Westpark TIRZ. The
land sale closed on February 2.
Booth stated that staff had analyzed the project with a 6-year, 25% tax abatement model and a
construction sales and use tax rebate model. DME's Economic Growth Rider incentive was
included in both models. The Economic Growth Rider was offered to new customers on certain
commercial rate schedules whose electric demand exceeded 1,000 kVA and load factor was greater
than DME’s system load factor.
Booth stated that staff did not recommend ad valorem tax incentives for this project because of its
location within the Westpark TIRZ. The Economic Development Partnership Board did not agree
with staff’s recommendation and opted to recommend a 5-year, 25% tax abatement, the
construction sales and use tax rebate, and the DME Economic Growth Rider for a total incentive
of $561,165 (6-1).
Council discussion included the DME Economic Growth Rider and impact on residential
customers, client designating office space for a police substation location, the ad valorem tax
incentive, and purchase of construction materials and how sales tax money collected would go to
Denton.
General consensus of Council was to move forward with the staff recommendation.
B. ID 18-351 Receive a report, hold a discussion, and give staff direction regarding an incentive
request from Fisher59.
City of Denton City Council Minutes
March 5, 2018
Page 2
Caroline Booth, Director of Economic Development, presented an incentive request from
Fisher59. She stated that the family-owned and -operated company was headquartered in Denton
and employed about 140 people locally and did more than $120 million in business annually. She
stated that the company distributed MillerCoors beverage brands to 40 counties in North Texas
and Southern Oklahoma. The company’s current site in Denton was at 2421 and 2419 I-35W
North and consisted of 85,000 square feet of warehouse and office space. The company was
seeking to expand by building a new 205,000-square-foot warehouse/distribution/office facility.
The company had closed on a 50-acre site in Denton at US380/Masch Branch in late February.
The company expected to create 67 new jobs with an average salary of $50,922. Benefits were
offered to full-time employees.
Staff analyzed the project with a 25% tax abatement model on the incremental value and a
construction sales and use tax rebate model. Because the project retained an existing business,
was a headquarters facility, had an average salary for new jobs that was 12% higher than the
Denton County average, would be a LEED certified construction project, and was not located in a
TIRZ, staff recommended the following incentive: construction sales and use tax rebate of
$59,504 and 5-year, 25% abatement on incremental value of $71,577. The Economic
Development Partnership Board concurred with staff's recommendation (7-0).
Council discussion included the number of new jobs, percentage of full-time employees and part-
time employees, retention of an existing business, and the LEED certification.
General consensus of Council was to move forward with the staff recommendation.
2. Concluding Items
A. 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.
Council Member Hudspeth stated that he would like to see something similar to the Economic
Incentive Application used by Economic Development be used for HOT funds.
Council Member Briggs asked when the luncheon meetings started and if they were still necessary.
City of Denton City Council Minutes
March 5, 2018
Page 3
With no further business, the meeting was adjourned at 12:58 p.m.
________________________________
CHRIS WATTS
MAYOR
CITY OF DENTON, TEXAS
________________________________
JANE RICHARDSON
ASSISTANT CITY SECRETARY
CITY OF DENTON, TEXAS