1994-110E:\WPD0CS\0RD\ENTERPR1.20N
ORDINANCE NO
V11
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS
AMENDING THE BOUNDARIES OF ENTERPRISE ZONE II WITHIN THE LIMITS OF
THE CITY OF DENTON AND THE EXTRATERRITORIAL JURISDICTION OF THE
CITY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton, Texas desires
to expand the area of an existing enterprise zone in order to in-
crease the proper economic and social environment to induce the
investment of private resources in productive business enterprises
located in a severely distressed area of the City and its extrater-
ritorial jurisdiction, and to provide employment to residents of
such area; and
WHEREAS, certain conditions exist in such area which represent
a threat to the health, safety, and welfare of the people in the
area; and
WHEREAS, the City hereby finds that the area of the City and
County described in Exhibit "A" attached hereto (the "Zone") meets
the criteria for designation as an enterprise zone under Section 4
of the Texas Enterprise Zone Act, Tex. Rev. Civ. Stat. Ann. art.
5109.1 (the "Act"), on the grounds that the Zone has a continuous
boundary and is 8.89 square miles in total area and, among other
conditions, the following conditions exist in the Zone which rep-
resent a threat to the health, safety, and welfare of the Zone:
A. The average unemployment in the proposed area
during the most recent 12-month period for which
data is available is at least one and one-half (1-
1/2) times the local, state or national average
for that period; and,
B. The proposed area meets the following criteria:
(i) the area was a low-income poverty
area according to the most recent
federal census; and
(ii) at least seventy percent (70%) of
the residents of the area have an
income below eighty percent (80%)
of the median income of the resi-
dents of the locality or state,
whichever is lower; and
WHEREAS, the City finds that it is in the best interest of the
City to nominate the zone, as amended as an enterprise zone pur-
suant to the Act; and
WHEREAS, the City hereby desires to designate all of the area
within the Zone as a reinvestment zone for tax abatement purposes,
as provided by Section 11 of the Act and Section 312.201 and Sec-
tion 312.401 of the Texas Tax Code, as amended; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY RESOLVES:
SECTION I. That the amended Zone meets the criteria for desig-
nation of an enterprise zone as set forth in Section 4 of the Act.
SECTION II. That the City hereby nominates the area, as
amended and described in Exhibit "A" attached hereto, as an enter-
prise zone, in accordance with the Act.
SECTION III. That the City hereby designates the Zone an en-
terprise zone and a reinvestment zone subject to the approval of
the Texas Department of Commerce.
SECTION IV. That upon approval by the Department, the Zone
will continue to be named "Denton Enterprise Zone II."
SECTION V. That the Zone, as amended, shall take effect on the
date of the negotiated agreement to be entered into by the City and
the Department. The Zone shall terminate September 1, 1997, or at
an earlier time designated by subsequent resolution.
SECTION VI. That the City directs and designates the Mayor of
the City of Denton as the City's authorized representative to act
in all matters pertaining to the nomination and designation of the
Zone as an enterprise zone and a reinvestment zone.
SECTION VII. That the City further directs and designates the
Executive Director of Economic Development as liaison for communi-
cation with the Department to oversee zone activities and communi-
cations with qualified businesses.
SECTION VIII. That the City Council will provide certain tax
incentives applicable to business enterprises in the zone which are
not applicable throughout the City as follows:
(1) The City shall abate taxes on the increase in value of real
and personal property improvements for new, expanding and
modernizing industries, corporate office headquarters and
distribution centers in a designated enterprise zone. The
level of abatement shall be based upon the value of the
improvements and personal property in accordance with the
attached Exhibit "B".
(2) Should a qualified business locate within an Enterprise
Zone apply for and receive tax abatement, the city will
rebate an additional five percent (5%) on the increase in
PAGE 2
value of real and personal property improvements for new
and expanding industries, corporate office headquarters and
distribution centers. Only businesses located within the
Enterprise Zone will be eligible for the additional five
percent (5%) tax incentive.
SECTION IX. That a public hearing to consider this ordinance
was held by the City Council on June 21, 1994.
SECTION X. That this ordinance shall become effective immed-
iately upon its passage and approval.
PASSED AND APPROVED this the rJ,-,1Jf day of , 1994.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY•
AP OVED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
a
BY:
PAGE 3
EXHIBIT "A"
The general description of the area of the Enterprise Zone II is as
follows:
All that certain lot, tract or parcel of land lying and being
situated in the County of Denton, State of Texas and being more
particularly described as follows:
BEGINNING at a point 450 feet south of the intersection of the
south fine of the I. Coy Survey A-212 with the baseline of IH-35 in
the City of Denton, Denton County, Texas;
THENCE in a westerly direction passing the northeast corner and
with the north line of a tract recorded in Volume 1789, Page 671
R.P.R.D.C.T. to the northwest corner of said tract;
THENCE in a southerly direction with the west line of said tract to
the center of Barthold Road;
THENCE in an easterly direction with the center of Barthold Road to
the baseline of IH-35;
THENCE in a southerly direction with the baseline of Highway IH-35
to its intersection with the extension of the center line of
Highway 77;
THENCE in a southeasterly direction with the center line of
Highway 77 to its intersection with the extension of the easterly
line of a tract described in a deed recorded in Volume 604,
Page 656 Denton Records of Denton County Texas;
THENCE in a southerly direction with the easterly line of said
tract to its southeast corner;
THENCE in a westerly direction with the south line of said tract to
the baseline of IH-35;
THENCE in a southerly direction with the baseline of IH-35 to its
intersection with the westward extension of the center line of
Westgate Drive;
THENCE in a westerly direction approximately 750 feet to the
existing city limits;
THENCE':with the existing city limit line in a southerly, westerly
and southerly directions to the easterly right-of-way line of the
A.T. &'S.F. Railroad;
Exhibit A
Page 2
THENCE in a southeasterly direction with the easterly right-of-way
of the A.T. & S.F. Railroad to the intersection with the easterly
extension of the center line of Hampton Road;
THENCE in an easterly direction to the intersection of the baseline
of I-35;
THENCE in a northerly direction with the baseline of IH-35 to its
intersection with the westerly extension of the south line of a
tract recorded in Volume 2695, Page 465 Real Property Records;
THENCE in an easterly direction with said south line to the
southeast corner of the last mentioned tract;
THENCE in a northerly direction with the east line of the last
mentioned tract to the center of Westgate Road;
THENCE in an easterly direction with the center line extension of
Westgate Drive to the center line of Bonnie Brae Street;
THENCE in a northerly direction with the center line of Bonnie Brae
to a point 25 feet southeasterly and perpendicular to the center
line of Highway 77;
THENCE in a southeasterly and southerly directions 25 feet
southwesterly and westerly and parallel with the center line of
Highway 77 and also the center line of North Elm Street to the
intersection of the centerline of W. Hickory Street;
THENCE in a westerly direction with the center line of West Hickory
Street to the center line of Bernard Street;
THENCE in a southerly direction with the center line of Bernard
Street to the center line of Eagle Drive;
THENCE in a westerly direction with the center line of Eagle Drive
to the centerline of Avenue D;
THENCE in a southerly direction with the center line of Avenue D to
the base line of I.H. 35E;
THENCE in a southeasterly direction with the base line of I.H. 35E
to the center line of Bernard Street;
THENCE in a northerly direction with the center line of Bernard
Street to the center line of Collins Street;
THENCE in an easterly direction with the center line of Collins
Street to the center line of Carroll Boulevard;
THENCE in a southwesterly direction with the center line of Carroll
Exhibit A
Page 3
Boulevard and also with the center line of Ft. Worth Drive to the
baseline of Interstate Highway I-35E;
THENCE in a southeasterly direction with the baseline of IH-35E to
the center line of Dallas Drive;
THENCE in a northwesterly direction with the center line of Dallas
Drive to the center line of Shady Oaks Drive;
THENCE in a northeasterly direction with the center line or Shady
Oaks Drive to the center line of the old M.K. & T. Railroad;
THENCE in a southeasterly direction with the center line of the old
M.K. & T. Railroad to a point 25 feet west of and perpendicular to
the center line of Mayhill Road;
THENCE in a southwesterly and southerly directions 25 feet west of
and perpendicular to the center line of Mayhill Road to a point 25
feet northeasterly and perpendicular to the baseline of IH-35E;
THENCE in a northwesterly direction 25 feet northeasterly and
parallel with the baseline of IH-35E to the intersection with the
northerly northeasterly extension of a tract shown by deed to
Jostens, Inc. recorded in Volume 571, Page 39 Deed Records;
THENCE in a southwesterly, southeasterly, easterly and
northeasterly directions, around the entire tract owned by
Josten's, Inc., to a point 25 feet southwesterly and perpendicular
to the baseline of IH-35E;
THENCE in a southeasterly direction 25 feet southwesterly and
parallel to the baseline of IH-35E to its intersection with 25 feet
east of and perpendicular to the center line of Mayhill Road;
THENCE in a northerly and northeasterly directions with the center
line of Mayhill Road to the center line of the old M. K. & T.
Railroad;
THENCE in a southeasterly direction with the center line of the old
M.K. & T. Railroad to its intersection with the center line of
Pockrus Page Road;
THENCE in an easterly direction with the center line of Pockrus
Page Road to its intersection with the extension of the most
southerly southeast line of the Andrew Addition;
THENCE in a northwesterly, northerly, easterly, northerly,
westerly, northwesterly, northerly and westerly directions along
the boundary lines of the Andrew Corp. properties to the center
line of Mayhill Road;
Exhibit A
Page 4
THENCE in a northerly direction with the center line of Mayhill
Road to the center line of F.M. 426;
THENCE in a westerly direction with the center line of F.M. 426 to
a point 25 feet easterly from the center line of Loop 288;
THENCE in a northerly direction 25 feet east of and parallel with
the center line of Loop 288 to the westward extension line of the
southwest corner of the G.D.I. Subdivision;
THENCE in an easterly and northerly directions with the south line
and the east line of said G.D.I. Subdivision to a point in the
south line of a tract recorded in Volume 636, Page 261 Deed
Records;
THENCE in an easterly direction along the south line of said tract
to the center line of Mayhill Road;
THENCE in a northerly direction with the center line of Mayhill
Road to the northeast corner of said tract;
THENCE in a westerly direction to the most northerly northwest
corner of said tract;
THENCE in a southerly direction to the re-entrant corner of said
tract;
THENCE in a westerly direction to a point 25 feet east of and
perpendicular to the center line of Loop 288;
THENCE in a northerly direction 25 feet east of and parallel to the
center line of Loop 288 to a point 25 feet southerly and
perpendicular to the center line of Highway U.S. 380;
THENCE in a easterly direction 25 feet south of and parallel to the
center line of Highway U.S. 380 to a point lying north of the
northwest corner of a tract described in deed recorded in Volume
1783, Page 780 of the Real Property Record of Denton County, Texas;
THENCE in a southerly direction, a distance of 923.60 feet to the
southwest corner of said tract;
THENCE in an easterly direction to the center line of Trinity Road;
THENCE in a northerly direction with the center line of Trinity
Road a distance of 900 feet to a point for a corner;
THENCE in a westerly direction to a point at the re-entrant corner
of said tract;
THENCE in a northerly direction along the westerly east boundary
Exhibit A
Page 5
line of said tract, passing the northeast corner of said tract and
crossing to a point 25 feet northerly from and perpendicular to the
center line of Highway U.S. 380;
THENCE in a southwesterly direction 25 feet north of and parallel
to the center line of Highway U.S. 380 to the center line of
Geesling Road;
THENCE in a northerly direction with the center line of Geesling
Road to the center line of Fishtrap Road;
THENCE in a westerly and northwesterly directions with the center
line of Fishtrap Road to the center line of the Union Pacific
Railroad;
THENCE in a southwesterly direction with the center line of the
Union Pacific Railroad to the northward extension of the west line
of the tract described in Ordinance 69-41 of the City of Denton;
THENCE in a southerly direction with said west line of said
ordinance to the southwest corner of Ordinance 69-41;
THENCE in an easterly direction to the northwest corner of a tract
recorded in Volume 1256, Page 299 Deed Records;
THENCE in a southerly, easterly and southerly directions with the
west line and the south line of the tract recorded in Volume 1256,
Page 299 Deed Records to the northwest corner of a tract recorded
in Volume 521, Page 286 Deed Records;
THENCE in a southerly direction along the east boundary line of the
past mentioned tract to a point 25 feet northerly from and
perpendicular to the center line of Highway U.S. 380;
THENCE in a westerly direction 25 feet northerly and parallel to
the center line of Highway U.S. 380 to a point 25 feet westerly
from and perpendicular to the center line of Loop 288;
THENCE in a southerly direction 25 feet west of and parallel to the
centerline of Loop 288 to the center line of F.M. 426;
THENCE in a westerly direction with the center line of Loop 288 to
the center line of Ruddell Street;
THENCE in a northerly direction with the center line of Ruddell
Street to the center line of Mingo Road;
THENCE in a northeasterly direction with the center line of Mingo
Road to the center line of Highway U.S. 380;
THENCE in a westerly direction with the center line of Highway U.S.
Exhibit A
Page 6
380 to the center line of Bell Avenue;
THENCE in a southerly direction along the center line of Bell
Avenue to the center line of F.M. 426;
THENCE in an easterly direction along the center line of F.M. 426
to the center line of the Union Pacific Railroad;
THENCE in a southerly direction with the center line of the Union
Pacific Railroad to the center line of Sycamore Street;
THENCE in a westerly direction with the center line of Sycamore
Street to a point 25 feet east of the center line of Elm Street;
THENCE in a northerly and westerly direction 25 feet east of and
parallel to the center line of Elm Street and 25 feet northeasterly
from and parallel to the center line of Highway 77 to the center
line of the east and west section of Riney Road;
THENCE in an easterly direction with the center line of the east
and west section of Riney Road to the east boundary line of the
J.S. Collard Survey A-297 Denton County, Texas;
THENCE in a northerly direction with the east boundary line of said
Collard Survey to the north line of a tract described in a deed
recorded in Volume 963, Page 54 Deed Records;
THENCE in a westerly direction with the north line of the last
mentioned tract to the center line of Bonnie Brae Street;
THENCE in a northerly direction with the center line of Bonnie Brae
Street approximately 1,800 feet to the north line of the A. White
Survey A-1406;
THENCE in a westerly direction with the north line of the A. White
Survey to the baseline of IH-35;
THENCE in a northerly direction with the baseline of IH-35 to the
point of beginning.
AA02503
Exhibit "B"
DENTON POLICY FOR
TAX ABATEMENT
1. GENERAL PURPOSE AND OBJECTIVES
The City of Denton (City), the Denton Independent School District (DISD) and
Denton County are committed to the promotion of high quality development in all parts
of the city and to ar. 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 of Denton, DISD, and Denton County, will on a case-by-case basis,
give consideration to providing tax abatement as a stimulation 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, DISD or Denton County are under any
obligation to provide tax abatement to any applicant. All applicants shall be considered
on a case-by-case basis.
Tax inducements, as described in this policy, will be considered for new,
expanding and modernizing basic industries, corporate office headquarters and
distribution centers.
II. CRITERIA
Any request for a tax abatement shall be reviewed by the Joint Committee on Tax
Abatement, said Committee being comprised of two elected officials from each of the
taxing entities involved. 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. Their recommendation shall be based upon an evaluation of the following
criteria which each applicant will be requested to address in narrative format:
1
1. History and Philosophy of the firm:
a) Nature of products and geographic penetration.
b) Financial statements for past five years or life of firm whichever is
shorter.
c) Chronology of plant openings, closings, & relocations over past 15 years.
d) Record of mergers and financial restructuring during last five years.
e) Record of employment and training provided for handicapped and
chronically unemployed.
2. Project Specifications:
a) Provide plat of project including all roadways, land use and zoning within
500 feet of site. Legal description of site is required.
b) Is the project a relocation or new facility to expand operations. If
relocation, give current location.
c) Project investment in real and personal property at the above site for
each of the next ten years.
d) Project permanent employment for next ten years resulting from the new
investment. Indicate number of jobs that will be filled by people from
outside the metroplex. Include estimated average annual salary on new
jobs.
e) What is the total current payroll and the projected payroll when project
is completed.
f) Describe employment training requirements including provisions for
training handicapped and chronically unemployed if applicable.
g) Project utility (gas, electricity, water, etc. ) usage for each of next ten
years.
h) Estimate the infrastructure (streets, sewer, water, etc.) requirements
necessary to operate the new facility.
i) Estimate the annual operating budget for next ten years.
j) Will the occupants of the project be owner or lessees? If lessees, are
occupancy commitments already existing?
k) Give the name, address, and telephone number of contact person.
3. The community impact of the project:
a) Project the value of real and personal property that will be added to the
tax rolls.
2
b)
Using current rates estimate the additional taxes that will be directly
generated by the project without considering any proposed abatement for
each of the affected taxing entities for each of the next ten years.
c)
For each taxing entity indicate the amount of tax abatement requested for
each of next ten years.
d)
Estimate the increase in investment in other local businesses resulting
from the project for the next ten years.
e)
Estimate the increased housing needs in the area resulting from the
project for ten years.
f)
Estimate the increase in the tax rolls for each taxing entity for the next
ten years.
g)
Estimate the infrastructure construction that would be required because
of the growth resulting indirectly from the project.
h)
Provide the specific detail of any businesses/ residents that will be
displaced and assistance that will be available from the requesting entity.
i)
Estimate the increase in students by grade level resulting from the
project including the multiplier effect (indirect growth) for the next ten
years. Show the increase for each impacted school district.
j)
Provide description of any historically significant area included within
the project's area. If any, give detail of how the historically significant
area will be preserved.
k)
Provide information of any detrimental effect on existing businesses,
recreational areas, and residential area.
1)
Provide details of any benefit to an area of the community targeted for
revitalization/ redevelopment.
III. VALUE OF INCENTIVES
The criteria outlined in Section II 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 facility. Specific
considerations will include the degree to which the individual project furthers the goals
and objectives of the community, as well as the relative impact of the project. New,
expanding and modernizing businesses will be eligible for abatement if the minimum
threshold, as described below, is met.
3
Once a determination has been made that a tax abatement should be offered, the
value and term of the abatement will be determined by referencing the following table:
TABLE 1: Establishes maximum length of abatement according to assessed real
property value of improvements and personal property.
VALUE OF STRUCTURE
AND PERSONAL PROPERTY
MAXIMUM
YEARS OF
ABATEMENT
MAXIMUM
PERCENTAGE OF
ABATEMENT
100
10
25%
80
9
25%
65
8
25%
50
7
25%
35
6
25%
20
5
25%
15
4
255
10
3
25%
5
2
25%
If an existing business is located within the boundaries of the participating
jurisdictions and decides to expand or relocate within such boundaries, the actual value
of the structure shall be multiplied by 125% prior to utilizing Table 1. If the expanding
or relocating business is abandoning any property or improvements within the
jurisdictions, the value of this abandoned property shall be subtracted from the new
value figure prior to multiplying the value by 125%.
The tax abatement shall not apply to any portion of the land value of the project.
Applicants agreeing to extend infrastructure improvements (streets and utilities)
to improve other industrial sites which can be marketed by the Chamber of Commerce
Economic Development Director may be eligible for a greater tax benefit than those
described above by utilizing tax increment financing procedures. The offering of such
an inducement will be evaluated on a case-by-case basis dependent upon the applicant's
ability to make available improved industrial sites.
4
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."
B. Applicant shall address all criteria outlined in Section II above in narrative
form.
C. Applicant shall prepare a map showing the precise location of the property
and all roadways within 500 feet of the site.
D. If the property is described by metes and bounds, a complete legal
description shall be provided.
E. Applicant shall complete all forms and information detailed in items A through
D above and submit them to the City Manager, City of Denton, 215 E.
McKinney, Denton, TX 76201.
Application Review Steps
F. All information in the application package detailed above will be reviewed for
completeness and accuracy. Additional information may be requested as
needed.
G. The application will be distributed to the appropriate City and DISD
departments for internal review and comments. Additional information may
be requested as needed.
H. Copies of the complete application package and staff comments will be
provided to the Joint Committee on Tax Abatement.
Consideration of the Application
I. The Joint Committee on Tax Abatement will consider the application at a
regular or called meeting(s). Additional information may be requested as
needed.
J. The recommendation of the Joint Committee on Tax Abatement will be
forwarded, with all relevant materials, to the chief administrative office of
each taxing entity.
K. The City Council of Denton may consider a resolution calling a public hearing
to consider establishment of a tax reinvestment zone.
L. The City Council of Denton may hold the public hearing and determine
whether the project is "feasible and practical and would be of benefit to the
land to be included in the zone and municipality." Special consideration shall
be given to policies noted in the Denton Development Plan when designating
a tax reinvestment zone.
M. 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.
N. The City Council may consider adoption of a 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.
Should the commitments subsequently not be satisfied, the tax abatement
shall be null and void, 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 be incorporated into the
agreement.
0. The governing bodies of the various taxing entities may consider ratification
of and participation in the tax abatement agreement between the City of
Denton and the applicant.
6
Any tax abatement agreement will address various issues, including, but not
limited to, the following:
I. General description of the project;
2. Amount of the tax abatement and percent of value to be abated each year;
3. Method of calculating the 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
annually evaluate each facility receiving abatement to insure compliance with the
agreement and report possible violations of the agreement to the taxing entities.
Transfer or Assignment
A contract for tax abatement may be transferred or assigned by the original
applicant to a new owner upon the approval of the various taxing jurisdictions after such
a recommendation is made by the Joint Committee on Tax Abatement.
7
APPENDIX A
Definitions
A
B
C.
D.
E
F
G
"Abatement" means the full or partial exemption for ad valorem taxes of eligible
properties in a reinvestment zone designated as such for economic development
purposes.
"Agreement" means a contractual agreement between a property owner and a
taxing jurisdiction for the purpose of tax abatement.
"Basic industries" are defined in the Denton Development Plan as those which
produce goods or services at least 51% of which are directed to serve people
outside of the City of Denton and are listed in the Standard Industrial
Classification (SIC) of the Department of Commerce, except for groups 52-59
under retail trade.
"Expansion" means the addition of buildings, structures, fixed machinery, or
equipment for the purpose of increasing production capacity.
"Facility" means property improvements completed or in the process of
construction which together comprise an integral whole.
"Joint Committee on Tax Abatement" is a group of representatives from Denton
County, the City of Denton, and the Denton Independent School District
formed to study and evaluate any proposal regarding the offering of tax
abatements within the community. The Committee will consist of two elected
representatives from each governmental entity and one staff member from each
entity. The staff members shall serve as nonvoting, ex officio members.
"Modernization" means the replacement and upgrading of existing facilities
which increases the productive input or output, updates the technology, or
substantially lowers the unit cost of operation, and extends the economic life of
the facility. Modernization may result from the construction, alteration, or
1
installation of buildings, structures, fixed machinery, or equipment. It shall
not be for the purpose of reconditioning, refurbishing, repairing, or
completion of deferred maintenance.
H. "New facility" means a property previously undeveloped which is placed into
service by means other than expansion or modernization.
1. "Reinvestment Zone" is an area designated as such for the purpose of tax
abatement as authorized by Subchapter B, Municipal Tax Abatement, Title 3,
Local Taxation, Vernon's Texas Codes Annotated.
J. "Tax increment financing" is the use of some or all of increased property tax
revenue resulting from the redevelopment of an area to finance
development-related costs in that district. Tax increment financing divides
tax revenue from the area into two categories. Taxes on the predevelopment
value of the tax base (the tax increment base) are kept by each taxing body,
while some or all of the taxes from the increased value of property resulting
from redevelopment (the tax increment) are deposited by each jurisdiction in a
tax increment fund. Money in the tax increment fund is used to repay
TIF-backed bonds that are issued to finance public improvements in the
redevelopment area.
2
APPLICATION FOR TAX ABATEMENT
1. Property Owner
Mailing Address
Telephone Number
2. Property Owner's Representative
Mailing Address
Telephone Number
3. Property Address
Property Legal Description
(Provide attachments if by metes and bounds)
4
Located within: City of Denton
D.I.S.D
Denton County
5. Description of Project:
6. Date projected for occupancy of project /initiation of operations:
7. Narrative response to criteria questions in Section II attached.
Yes _ No _
Comments:
TAAPLI