1999-433AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN
AREA WITHIN THE CITY LIMITS OF DENTON AS RE1NVESTMENT ZONE NO II FOR
COMMERCIAL/INDUSTRIAL TAX ABATEMENT, ESTABLISHING THE BOUNDARIES
OF SUCH ZONE, MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS
311 AND 312 OF THE TEXAS TAX CODE, ORDAINING OTHER MATTERS RELATING
THERETO, PROVIDING A SEVERABILITY CLAUSE, PROVIDING FOR REPEAL, AND
PROVIDING AN EFFECTIVE DATE
WHEREAS, the City Council of the Ctty of Denton, Texas ("Ctty" or "Mumclpallty")
desires to promote the development or redevelopment of a certain conttguous geographic area
within tts corporate city hmlts and Its iunsdmtton by the creation of a remvestment zone for
commermal/mdustnal tax abatement, as authorized by Tex Tax Code Ch 312 (referred to as the
"Property Redevelopment and Tax Abatement Act" or the "Act"), and
WHEREAS, an Industry known as Peterbilt Motors Company has requested tax abate-
ment to braid tmprovements w~thm the area to be designated as Remvestment Zone II, and
WHEREAS, the Ctty Councd demres to create a proper economic and soctal enwronment
to induce tnvestment of private resources and productive bustness enterprises tn this area of the
City, which meets the cnterta estabhshed under §312 202 of the Act, and to expand primary em-
ployment or to attract major ~nvestment, and
WHEREAS, by resolutton dated October 19, 1999, a pubhc heanng before the Ctty
Council was called, set, and held at or after 6 00 p m on November 16, 1999 m the City Council
Chambers of the Ctty of Denton at 215 East McKmney Street m the City of Denton, such date
being at least seven days after the date of pubbcatton of notme of such pubhc hearing and the
receipt of written nottces of such pubhc hearmg by the prestd~ng officer of each taxing umt that
Includes mtts boundaries real property that is to be included m the proposed remvestment zone,
tn accordance wtth §312 201 of the Act, and
WHEREAS, such pubhc heanng was held before the consideration and adoptton of th~s
ordinance, and
WHEREAS, the City, at that hearing, invited aoy interested clttzen or his representattve
to appear and offer testtmony or evidence for or agatnst the creatton of the relnvestment zone,
the boundaries of the proposed remvestment zone, whether all or part of the temtory described ~n
the nottce calhng the pubhc heanng should be included m the proposed retnvestment zone, and
the concept of tax abatement, and
WHEREAS, tn accordance w~th such public nottce, all owners of property wlthtn the
proposed re~nvestment zone and all other taxtng umts and other interested persons were given the
opportumty at such public hearmg to protest the creation of the proposed retnvestment zone or
the mcluston of their property in such remvestment zone, and
WHEREAS, on the 27th day of January, 1998, on or before the holding of the above-
mentioned pubhe heanng, the City Council passed a resolution estabhshlng guldehnes and crite-
ria govermng tax abatement agreements and statmg that the City of Denton elects to become eli-
gible to participate m tax abatement, in accordance with Tex Tax Code §312 002, and such tax
abatement policy is now m effect and was m effect prior to the public heanng, and
WHEREAS, at the pubhc heanng proponents and opponents of the reinvestment zone of-
fered evidence in favor and against all matters relating to the creation of the relnvestment zone,
and, after heanng th~s testimony and evidence, the City Council deems it m the public interest to
create this remvestment zone, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
~ That the facts and recitations contmned in the preamble of this ordinance
are hereby found and declared to be tree and correct
~ That for the purposes of ttus ordinance, the following terms and phrases
shall have the following meamngs ascribed to them
A Improvements - Improvements shall ~nclude, for the purpose of establishing eliglblhty under
the Act, any activity at the location, including, but not limited to, new construction, recon-
struction, renovation and repmrs
B Taxable Real Property - Taxable real property shall be as defined in the Texas Property Tax
Code and shall not include personal property as defined m the Code
C
Base Year - The base year for determimng ~ncreased value shall be the taxable real property
and/or tangible personal property located on the real property value assessed the year m
which the Tax Abatement Agreement Is executed
~ That the City, through its City Council, after conducting the above-
mentioned public heanng and hawng heard such evidence and testimony, makes the following
findings and determinations based on the evidence and testimony presented to it
A
That the public heanng on the adoption of the rexnvestment zone has been properly called,
held, and conducted m accordance with §312 201 of the Act and all other applicable laws,
and that notice of such heanng has been pubhshed as required by law and mmled to the pre-
siding officer of the governing body of each taxing unit that includes in its boundaries real
property that is to be included in the proposed reinvestment zone as required by law, and
B That prior to holding the public heanng, the City has adopted, by resolution, the guidelines
and criteria govermng tax abatement agreements by adoptmg a City of Denton Tax Abate-
ment Policy and the City has elected to participate m tax abatement, and
C That the City had junsdacUon to hold and conduct the public heanng on the creation of the
proposed the remvestment zone, pursuant to chapter 312 of the Act, and
Page 2
D
That the boundaries of the relnvestment zone shall be the area described in the metes and
bounds description attached hereto as Exhibit "A" and as shown on the diagram as the area
outlmed in red attached hereto as Exhibit "B" and being approximately 100 acres near Air-
port Road and Interstate 35W m the corporate limits of the City of Denton, Texas, such Ex-
hibits "A" and "B" being incorporated and made a part of this ordinance as ff written word
for word herein, and
E
That the creation of the re~nvestment zone for commercial/industrial tax abatement with the
improvements expected to be developed by Peterbilt Motors Company would be of benefit to
the City and to the land to be mcluded in the zone, with the boundaries as desenbed in Ex-
habit "A," after the expiration of the tax abatement agreement entered into under §312 204 of
the Act, and the improvements sought are feasible and practical, and
F
That the remvestment zone as defmed in Exlub~t "A" and shown on Exhibit "B" meets the
criteria for the creation of a remvestmant zone, as set forth m §312 202 of the Act, since it m,
"reasonably likely, as a result of the designation, to contribute to the retention or expansion
of primary employment or to attract major investment in the zone that would be a benefit to
the property and that would contribute to the economic development of the Municlpahty,"
and
G That the relnvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the
entena for the creation of a remvestment zone as set forth in the Denton Pohcy for Tax
Abatement and the expected improvements in the boundaries of the zone are expected to en-
hance slgmfieantly the value of all taxable real property located within the remvestment
zone
~ That pursuant to §312 201 of the Act, the City, through ~ts City Council,
hereby creates a remvestment zone for commemlal/lndustnal tax abatement encompassmg only
the area described by the metes and bounds descnptmn in Exhibit "A" attached hereto and as
shown on Exhibit "B" attached hereto and such relnvestment zone ~s hereby designated and shall
heremafter be designated as Reinvestment Zone No II, City of Denton, Texas
i~ That Relnvestment Zone No II shall be effective as of January 1, 2000,
and shall terminate five years from that date, on December 31, 2005, unless earlier terminated by
action of the C~ty Council or extended m accordance with §312 203 of the Act
That to be ehgible for tax abatement, a commercialhndustnal project shall
A Be located wholly w~thln the zone established herein,
B Meet the reqmrements of the Denton Tax Abatement Policy,
C Not include property that is owned or leased by a member of the City Council of the City of
Denton, or by a member of the Planning & Zoning Commission,
Page 3
D Conform to the reqmrements of the City's zonmg ordinance and all other apphcable laws and
regulations, and
E Have and maintain all land located watlun the designated zone, apprmsed at market value for
tax purposes
iS._F~.Q.TI.Q_~_J~ That written tax abatement agreements with property owners located
within the zone shall provide the terms regarding duration of exemption and share of taxable real
property and/or tangible personal property located on the real property for taxation as approved
hereunder~ as shown below
A Duratmn of exemption from two years to ten years depending on the value of the structure
and personal property in accordance with the Denton Tax Abatement Policy, beginning wath
and including January 1, 2000, and
B
Share of taxes abated - 25% of taxes on the total value of apprmsed improvements which are
added, provided, however, nothing herem shall prevent any other taxing umt that includes m
its boundaries real property that is included m the relnvestment zone from entenng into a tax
abatement agreement with a different share of taxes abated on the total value of apprmsed
improvements wtuch are added, m accordance with the requirements of chapter 312 of the
Act
~ That any written agreements authorized under this ordinance must include
provisions for
A Listing the k~nd, numbar, and location of all proposed Improvements of the property,
B Access to and authonzang the Inspection of the property by municipal employees to ensure
that the improvements or repairs are made m accordance with the specffieatlons and condi-
tions of the agreements,
C
Limiting the uses of the property, consistent w~th the general purpose of encouraging devel-
opment or redevelopment of the zone during the period that property tax exemptions are an
effect,
D Recaptunng of property tax revenues lost as a result of the agreement if the owner of the
property fmls to make the improvements or repmrs as provided by the agreement,
E Contatmng each term agreed to by the owner of the property,
F Requmng the owner of the property to cemfy annually to the govermng body of each taxing
unit that the owner is in compliance with each appltcable term of the agreement,
G Providing that the govermng body of the mummpahty may cancel or modify the agreement if
the property owner fails to comply with the agreement,
Page 4
H Provide that the owner of the property enters into a long-term agreement of not less than five
years m duration to receive its electrical utility service from Denton Mumclpal Electric, and
Contain any additional terms and condatlons which the City Council deems are necessary, in
accordance with §312 205 of the Act, and that are negotiated with the owner of the property
Provided, however, nothing herem shall prevent other taxing units, who include m their
boundaries real property within the remvestmant zone, from negotiating terms and conditions
that are different from any municipal tax abatement agreement, so long as the mandatory
terms and condataons required by §312 205 of the Act are included
SECTION 9 That the City Council further directs and designates the City Manager and
the Director of Economic Development as hmsons for communication with regard to all matters
pertmnmg to the Zone, mcluchng, without limitation, the development of the amendment of the
current Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agreements
with mdustnes, commercial enterprises, and other businesses eligible for tax abatement under the
Tax Abatement Policy and for communication with other taxing entities and the Joint Tax
Abatement Committee
SECTION 10 That all ordinances or parts of ordinances in force when the provisions of
tlus ordinance became effective which are inconsistent or in conflict with the terms or prowslons
contmned m this ordinance are hereby repealed to the extent of any such conflict
SECTION 11 That if any section, paragraph, clause, or provision in this ordinance, or
application thereof to any person or circumstance is held lnvahd or unenforceable, the invalidity
or unenforceabfllty of such section, paragraph, clause, or provision shall not affect any of the re-
malmng pomons of this orchnance
SECTION 12 It is hereby found, determined, and declared that a sufficient written no-
tice of the date, place, hour, and subject of the meeting of the City Council at wbach this ordi-
nance was adopted was posted and placed and conveniently accessible at all times to the general
public at the Cxty Hall of the City for the time required by law, preceding this meeting, as re-
qmred by the Open Meetings Act, Tex Gov't Code Ch 551, and that tbas meeting was open to
the pubhe as reqmred by law at all times dunng which this ordinance and the subject matter
thereof has been chscussed, considered, and formally acted upon The City Council fiu'ther rati-
fies, approves, and confirms such written notice and contents posting thereof The City Council
further finds that a quorum was present at such meeting
SECTION 13 That the contents of the notice ofpubhc heanng, which heanng was held
before the Cxty Council and before the passage of this ordinance on November 2, 1999, the pub-
llcatlon of smd not,ce is hereby ratified, approved, and confirmed
SECTION 14 That this ordinance shall become effective immediately upon its passage
and approval
ATTEST
JENNIFER WALTERS, CITY SECRETARY
HERBERT L PROUTY, CITY ATTORNEY
BY
EXHIBIT A
REINVESTMENT ZONE II
DESCRIPTION OF PROPERTY
REINVESTMENT ZONE II WILL BE COMPOSED OF APPROXIMATELY 100
ACRES OF LAND OUT OF THE JOHN DAVIS SURVEY, ABSTRACT 326, JAMES
PERRY SURVEY, ABSTRACT 1040, AND EUGENE PUCHALSKI SURVEY,
ABSTRACT 996, DENTON COUNTY, TEXAS, THE REINVESTMENT ZONE IS
MORE PARTICULARLY DESCRIBED AS FOLLOWS
ALL THAT CERTAIN LOT, TRACT OR PARCEL OF LAND LYING AND
BEING SITUATED IN THE JOHN DAVIS SURVEY, ABSTRACT NO. 326, THE
JAMES PERRY SURVEY, ABSTRACT NO 1040, AND THE EUGENE PUCHALSKI
SURVEY, ABSTRACT NO. 996, DENTON COUNTY, TEXAS, AND BEING ALL OF
LOT 1, BLOCK A, PETERBILT ADDITION, AN ADDITION TO THE CITY AND
COUNTY OF DENTON, TEXAS, ACCORDING TO THE PLAT THEREOF
RECORDED IN CABINET H, PAGE 195 OF THE PLAT RECORDS OF DENTON
COUNTY, TEXAS~ AND BEING PART OF A TRACT OF LAND DESCRIBED IN A
DEED TO SUDERMAN AND YOUNG TOWING COMPANY, INC., AS RECORDED IN
VOLUME 1271, PAGE 759 OF THE REAL PROPERTY RECORDS OF DENTON
COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF SAID PETERBILT
ADDITION, ON THE NORTH RIGHT-OF-WAY OF F.M. ROAD 1515 (AIRPORT
ROAD), SAME BEING THE SOUTHEAST CORNER OF LOT 1, BLOCK I OF
WESTPARK, AN ADDITION TO THE CITY AND COUNTY OF DENTON, TEXAS,
ACCORDING TO THE PLAT THEREOF RECORDED IN CABINET C, PAGE 127 OF
THE PLAT RECORDS OF DENTON COUNTY, TEXAS,
THENCE NORTH 01° 29' 40" EAST WITH THE WEST LINE OF SAID
PETERBILT ADDITION AND THE EAST LINE OF SAID WESTPARK, A DISTANCE
OF 2075.19 FEET TO A POINT FOR CORNER AT THE NORTHWEST CORNER OF
SAID PETERBILT ADDITION AND THE NORTHEAST CORNER OF SAID
WESTPARK, SAME BEING ON THE SOUTH LINE OF SAID SUDERMAN AND
YOUNG TOWING COMPANY, INC., TRACT;
THENCE NORTH 01° 30' 25" EAST, A DISTANCE OF 508 10 FEET TO A
POINT FOR CORNER;
THENCE SOUTH 88° 30' 20" EAST, A DISTANCE OF 167831 FEET TO A
POINT FOR CORNER AT THE BEGINNING OF A CURVE TO THE RIGHT;
THENCE WITH SAID CURVE TO THE RIGHT, HAVING A CENTRAL ANGLE
OF 90° 00' 31", A RADIUS OF 40.00 FEET, AN ARC LENGTH OF 62 89 FEET, A
CHORD WHICH BEARS SOUTH 43° 30' 04" EAST, A DISTANCE OF $6 62 FEET TO
A POINT FOR CORNER;
THENCE SOUTH 01° 29' 20" WEST, A DISTANCE OF 468.06 FEET TO A
POINT FOR CORNER AT THE NORTHEAST CORNER OF SAID PETERBILT
ADDITION, ON THE SOUTH LINE OF SAID SUDERMAN AND YOUNG TOWING
COMPANY, INC., TRACT;
THENCE SOUTH 01° 29' 40" WEST WITH THE EAST LINE OF SAID
PETERBILT ADDITION AND THE ~EST RIGHT-OF-WAY OF PRECISION DRIVE,
A DISTANCE OF 952.13 FEET TO A POINT FOR CORNER AT THE BEGINNING OF
A CURVE TO THE LEFT;
THENCE WITH THE WEST RIGHT-OF-WAY OF PRECISION DRIVE AND
THE EAST LINE OF SAID PETERBILT ADDITION WITH SAID CURVE TO THE
LEFT, HAVING A CENTRAL ANGLE OF 41° 40' 00", A RADIUS OF 397 82, AN ARC
LENGTH OF 289.30, A CHORD WHICH BEARS SOUTH 19° 20' 20" EAST A
DISTANCE OF 282.97 FEET TO A POINT FOR CORNER;
THENCE SOUTH 40° 10' 20" EAST WITH THE EAST LINE OF SAID
PETERBILT ADDITION AND THE WEST RIGHT-OF-WAY OF PRECISION DRIVE,
A DISTANCE OF 41.60 FEET TO A POINT FOR CORNER AT THE INTERSECTION
OF THE NORTH RIGHT-OF-WAY OF F.M ROAD 1515 AND THE WEST RIGHT-OF-
WAY OF PRECISION DRIVE, SAME BEING THE SOUTHEAST CORNER OF SAID
PETERBILT ADDITION, AT THE BEGINNING OF A CURVE TO THE LEFT;
THENCE WITH THE NORTH RIGHT-OF-WAY OF F.M. ROAD 1515 AND
SAID CURVE TO THE LEFT, HAVING A CENTRAL ANGLE OF 27° 38' 04", A
RADIUS OF 617.96 FEET, AN ARC LENGTIt OF 298 05 FEET, A CHORD WHICH
BEARS SOUTH 32° 50' 01" WEST A DISTANCE OF 295 17 FEET TO A POINT FOR
CORNER AT THE BEGINNING OF A CURVE TO THE RIGHT,
THENCE SOUTH 19° 01' 00" WEST WITH THE SOUTH LINE OF SAID
PETERBILT ADDITION AND THE NORTH RIGHT-OF-WAY OF F.M. ROAD 1515, A
DISTANCE OF 207.60 FEET TO A POINT FOR CORNER AT THE BEGINNING OF A
CURVE TO THE RIGHT;
THENCE WITH THE NORTH RIGHT-OF-WAY OF F.M ROAD 1515 AND THE
SOUTH LINE OF SAID PETERBILT ADDITION, WITH SAID CURVE TO THE
RIGHT, HAVING A CENTRAL ANGLE OF 72e' 03' 00", A RADIUS OF 527 96 FEET,
AN ARC LENGTH OF 663.92 FEET AND A CHORD WHICH BEARS SOUTH 55° 02'
30" WEST A DISTANCE OF 621.03 FEET TO A POINT FOR CORNER;
THENCE NORTH 88° 56' 00" WEST WITH THE SOUTH LINE OF SAID
PETERBILT ADDITION AND THE NORTH RIGHT-OF-WAY OF F M ROAD 1515, A
DISTANCE OF 1131.28 FEET TO THE POINT OF BEGINNING AND CONTAINING
IN ALL 100 04 ACRES OF LAND