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1998-016 ORDINANCE NO AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AND THE EXTRATERRITORIAL RISDICTiON OF THE CITY OF DENTON AS RBINVESTMENT ZONE NO I FOR COM- MERCIAL/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 SBVBRABILITY CLAUSE, PROVIDING FOR REPEAL, AND PROVIDING AN EFFECTIVE DATE WHEREAS, the City Council of the City of Denton, Texas ("City" or "Municipality") desires to promote the development or redevelopment of a certain contiguous geographic area within its corporate city hmits, its junsdmtlon, and its extraterntonal jurisdiction by the creation of a reinvestment zone for commercial/industnal tax abatement, as anthonzed by V T C A TEX TAX CODE chapter 312 (referred to as the "Property Redevelopment and Tax Abatement Act" or the "Act"), and WHEREAS, an industry known as United Copper Industries has requested tax abatement to bmld improvements within the area to be designated as Reinvestment Zone I, and WHEREAS, the City Council desires to create a proper economic and social environment to induce Investment of private resources and productive business enterprises m this area of the City, which meets the criteria established under §312 202 of the Act, and to expand primary em- ployment Ior to attract major lnvestmant, and WHEREAS, by resolution dated January 27, 1998, a public heanng before the City Council was called, set, and held at 7 00 p m on February 3, 1998 In the City Council Chambers of the City of Denton at 215 East MeKanney Street an the City of Denton, such date being at least seven (7) days after the date of publication of notice of such public heanng and the receipt of written notices of such public heanng by the presiding officer of each taxing unit that includes In its boundgnes real property that is to be Included in the proposed reinvestment zone, in accor- dance with §312 201 of the Act, and WHEREAS, such pubhe heanng was held before the consideration and adoption of this ordinance, and WHEREAS, the City, at that heanng, invited any interested citizen or his representative to appear and offer testimony or ewdence for or against the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the temtory described in the notice calling the public heanng should be included in the proposed relnvestment zone, and the concept of tax abatement, and WHEREAS, in accordance wth such public notice, all owners of property within the proposed reinvestment zone and all other taxing units and other interested persons were given the opportunity at such pubhc heanng to protest the creation of the proposed reInvestment zone or the inclusion of their property m such remvestment zone, and WHEREAS, on the 27th day of January, 1998, on or before the holding of the above- mentioned public hearing, the City Council passed a resolution estabhshmg gmdehnes and crite- ria governmg tax abatement agreements and stating that the City of Denton elects to become eh- glble to participate in tax abatement, m accordance with TEX TAX CODE §312 002, and such tax abatement pohcy is now in effect and was In effect prior to the pubhc heanng, and WHEREAS, at the public heanng proponents and opponents of the reinvestment zone of- fered evidence an favor and agmnst all matters relating to the creation of the reinvestment zone, and, after heanng th~s testimony and evidence, the C~ty Council deems it in the public interest to create fins remvestment zone, NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS SI~CTION I That the facts and recitations contmned ~n the preamble of this ordinance are hereby found and declared to be true and correct SI~CTION II. That for the purposes of th~s ordinance, the following terms and phrases shall have the following meamngs ascribed to them A Improvements - Improvements shall mclude, for the purpose of estabhshIng eligibility under the Act, any activity at the locatlun, including, but not limited to, new construction B Taxable Real Property - Taxable real property shall be as defined ~n the Texas Property Tax Code and shall not mclude personal property as defined in the Code C Base Year - The base year for determining mcreased value shall be the taxable real property value assessed the year in which the Tax Abatement Agreement is executed SECTION III. That the City, through its City Council, after conducting the above- mentioned public heanng and having heard such evidence and testimony, makes the following findings and determinations based on the evidence and testimony presented to it A That the pubhc heanng on the adoption of the remvestmant 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 published as required by law and mmled to the pre- siding officer of the govermng body of each taxing unit that includes m Its boundaries real property that IS to be included m the proposed re~nvestment zone as required by law, and B That prior to holdmg the public heanng, the City has adopted, by resolution, the guadehnes and criteria governing tax abatement agreements by adoptmg a City of Denton Tax Abate- ment Policy and the City has elected to participate ~n tax abatement, and Page 2 C That the City had jurisdiction to hold and conduct the public heanng on the creation of the proposed the relnvestment zone, pursuant to chapter 312 of the Act, and D That the boundaries of the relnvestment zone shall be the area described m the metes and bounds description attached hereto as Exbnblt "A" and as shown on the dmgram as the area outlined m red attached hereto as Exhibit "B" and being approximately 163 acres near High- way U S 380 and Geeslmg Road m the corporate limits and extraterritorial jurisdiction of the City of Denton, Texas, such Exl~blts "A" and "B" being incorporated and made a part of this ordinance as ffwntten word for word herein, and E That the creation of the relnvastment zone for commereml/mdustnal tax abatement w~th the improvements expected to be developed by Umted Copper Industries and other similar in- dustrial and eommermal bumness enterprises would be of benefit to the C~ty and to the land to be included in the zone, with the boundaries as described in Exhibit "A," after the expira- tion of the tax abatement agreement entered into under §312 204 of the Act, and the provements sought are feasible and practical, and F That the rmnvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation ofa remvestment zone, as set forth in §312 202 of the Act, ~n that m, "reasonably likely, as a result of the designation, to contribute to the retention or expan- sion o~'pnmary employment or to attract major investment in the zone that would be a bene- fit to the property and that would contribute to the economic development of the Municipal- lty," and G That the rmnvastment zone as defined m ExMbn "A" and shown on Exhibit "B' meets the criteria for the creation of a remvestment zone as set forth m the Denton Policy for Tax Abatement and the expected ~mprovements in the boundaries of the zone are expected to en- hance slgmficantly the value of all taxable real properly located within the relnvestment zone SECTION IV. That pursuant to §312 201 of the Act, the City, through its City Council, hereby creates a remvastment zone for commercml/mdustnal tax abatement encompassing only the area dascnbed by the metes and bounds description in Exhibit "A" attached hereto and as shown on Exhibit "B" attached hereto and such rmnvestment zone is hereby designated and shall heremafter be designated as Remvestment Zone No I, City of Denton, Texas $]~CTION V. That Remvestment Zone No I shall be effective as of January 1, 1999, and shall ~ermlnate five years from that date, on December 31, 2004, unless earher terminated by action of the City Council or extended in accordance with §312 203 of the Act SECTION VI. That to be eligible for tax abatement, a commercial/industrial project shall A Be located wholly w~th~n the zone estabhshed herein, B MeettherequlrementsoftheDentonTaxAbatementPohcy, Page 3 C Not ~nclude property that ~s owned or leased by a member of the C~ty Councd of the C~ty of Denton, or by a member of the Planmng & Zoning Commission, D Conform to the reqmrements of the C~ty's zomng ordinance and all other applicable laws and regulations, and E Have and ma~ntmn all land located w~th~n the designated zone, appraised at market value for tax purposes SECTION VII. That written tax abatement agreements with property owners located w~thm the zone shall promde the terms regarding duration of exemption and share of taxable real property for taxation as approved hereunder, as shown below A Duration of exemption from two years to ten years depending on the value of the structure and personal property m accordance with the Denton Tax Abatement Policy, beginning with and including January 1, 1999, and B Share of taxes abated - 25% of taxes on the total value of apprmsed improvements wlunh are added~ provided, however, nothing herein shall prevent any other taxing umt that includes m its botmdanes real property that is mcluded m the remvestment zone from entenng into a tax abatement agreement w~th a different share of taxes abated on the total value of apprmsed ~mprovements wl~eh are added, m accordance with the reqmrements of chapter 312 of the Act SECTION VIII. That any written agreements authorized under this ordmance must ~n- elude prows~ons for A L~stmg the kind, number, and location of all proposed ~mprovements of the property, B Access to and authorized the inspection of the property by mumclpal employees to ensure that the ~mprovements or repairs are made m accordance with the specfficat~ons and condi- tions of the agreements, C Limiting the uses of the property, consistent with the general purpose of encouraging devel- opment or redevelopment of the zone dunng the period that property tax exemptions are ~n effect, D Recaptunng of property tax revenues lost as a result of the agreement if the owner of the property fails to make the ~mprovements or rep~urs as provided by the agreement, E Contatmng each term agreed to by the owner of the property, F Requinng the owner of the property to certify annually to the governing body of each taxing unit that the owner ~s m compliance with each applicable term of the agreement, Page 4 G Providing that the governing body of the municipality may cancel or mo&fy the agreement if the property owner fails to comply with the agreement, H Provide that the owner of the property enter into a long-term agreement of not less than five years in duration to receive its electrical utility service from the City of Denton Municipal Utlhtles, and I Contain any additional terms and conditions which the C~ty 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 hereto shall prevent other taxing units, who include in their boundaries real property Wltban the remvestmant zone, from negotiating terms and condmons that are different than any Municipal tax abatement agreement, so long as the mandatory terms and conditions required by §312 205 of the Act are included SECTION IX. That the City Council further directs and designates the City Manager and the Director of Economic Development as hmsons for commumcat~on with regard to all matters pertalmng to the Zone, including, without hmltatlon, the development of the amendment of the current Denton Tax Abatement Policy, the negotiation of tax abatement agreements with industries, eommermal enterprises, and other businesses ehg~ble for tax abatement under the Tax Abatement Pohcy and for communication with other taxing entitles and the Joint Tax Abatement Committee SECTION X. That all ordmanees or parts of ordinances in force when the provisions of thlS ordlnallce becanle effective which are inconsistent or in confhct with the terms or provisions eontmned' in this ordinance are hereby repealed to the extent of any such conflict T~ That if any section, paragraph, clause, or prowslon in this ordinance, or application thereof to any person or circumstance ~s held ~nvalld or unenforceable, the invaltdlty or unenforeeabfllty of such section, paragraph, clause, or provision shall not affect any of the re- malnmg l~ortlons of this ordinance SECTION XII. It as hereby found, determined, and declared that a sufficient written no- tice of the date, place, hour, and subject of the meeting of the C~ty Council at which this ordi- nance was adopted was posted and placed and conveniently accessible at all times to the general publlc at the City Hall of the City for the time reqmred by law, preceding thts meetmg, as re- qmred by the Open Meetings Act, TEX GOV'T CODE ch 551, and that this meeting was open to the public as required by law at all times dunng which th~s ordinance and the subject matter thereof has been discussed, considered, and formally acted upon The City Council further rari- ties, approves, and confirms such written notice and contents posting thereof The City Council further finds that a quorum was present at such meeting ~ That the contents of the not~ce of public heanng, which heanng was held before the City Council and before the passage of flus ordinance on February 3, 1998, the publication of said notice as hereby ratified, approved, and confirmed Page 5 SI~CTION XIV. That this ordinance shall become effective ~mmed~ately upon ~ts pas- sage and approval e^~s~ ~ ~ov~.~ ~l~t~ ~ d~yo, ATTEST JENNIFER WALTERS, CITY SECRETARY HERBERT L PROUTY, CITY ATTORNEY Page 6 ~EXHIBIT A" LEGAL DESCRIPTION REINVESTMENT ZONE NO I REAL PROPERTY METES AND BOUNDS ALL that certain lot, tract or parcel of land lying and being s~tuated in the City and County of Denton, State of Texas, being part of the T Living Survey, Abstract 729 and the M. Forrest Survey, Abstract Number 417 and being more part=cularly described as follows. BEGINNING at the southwest corner of 90.6566 acre tract described as Tract III by Special Warranty deed conveyed to Albertson's Incorporated recorded in Volume 3205, Page 214 of the Real Property Records of Denton County, Texas, sazd point also lying on the north line of U.S Highway 380, THENCE South a distance of 63 feet to the centerline of said U S Highway 380, THENCE Northeasterly along the centerline of U S Highway 380 a distance of 4,303 feet to a point for corner~ THENCE North passing at 63 feet the north right-of-way line of U.S Highway 380 and continuing alon9 the east line of a 28 acre tract, conveyed to D C Bullard, et ux by deed recorded in Volume 432, Page 149 of the Deed Records of Denton County, Texas, continuing North and passing the northeast corner of sa~d Bullard tract and continuing North to a point in the centerline of Fishtrap Road, THENCE Westerly and northwesterly along the centerline courses of Fishtrap Road a distance of 3,210 feet to a point for corner, said point being the · ntersection of the centerline of Fishtrap Road and the centerline of the Un~on Pacific Railroadl THENCE Southwesterly along the oenterline of the Un~on Pacific Railroad a distance of 1,710 feet to a point for corner, THENCE South passing at 64 feet the most northerly northwest corner of sa~d 90 6566 acre Albertson's tract and continuing a total distance of 240 feet to a point for corner, said point being the northwest corner of a i 457 acre SAVE & EXCEPT tract described as Tract II in said Albertson's deed recorded in Volume 3205, Page 214 R.P.R.D.C.T.~ THENCE Southeasterly along the northeast line of said 1.457 acre tract a distance of 564 feet to a point for corner, sa=d point being the southeast corner of said 1.457 acre tractl THENCE South along the west line of a 2 114 acre tract described as Tract i ~n said Albertson's deed recorded in Volume 3205, Page 214 R P R D C T a distance of 662 feet to the southwest corner of said 2.114 acre tract, THENCE West a distance of 69 feet to the most southerly northwest corner of said 90 6566 acre Albertson's tract~ THENCE South a distance of 185 feet to the POINT OF BEGINNING and containing 163 acres of land I 23-98 EXHIBIT "B"