2010-256UodaMepartmentAlegaRour documentslordinances110\target reinvestment ord.doc
ORDINANCE NO. 2010-256
AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN
AREA WITHIN THE CITY LIMITS OF DENTON AS TARGET CORPORATION REIN-
VESTMENT ZONE NO. IX FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ES-
TABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN
ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAIN-
ING OTHER MATTERS RELATING THERETO; PROVIDING A SEVERABILITY
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 limits and its jurisdiction by the creation of a reinvestment zone for commer-
cial/industrial tax abatement, as authorized by Tex. Tax Code Ch. 312 (referred to as the` Proper-
ty Redevelopment and Tax Abatement Acf' or the`Acf); and
WHEREAS, an industry or business known as Target Corporation has requested tax ab-
atement to construct a facility and build improvements within the area to be designated as Rein-
vestment Zone IX; and
WHEREAS, the City Council desires to create a proper economic and social environment
to induce investment of private resources and productive business enterprises in this area of the
City, which meets the criteria established under §312.202 of the Act, and to expand primary em-
ployment or to attract major investment; and
WHEREAS, a public hearing before the City Council was held at or after 6:30 p.m. on
October 5, 2010, in the City Council Chambers of the City of Denton at 215 East McKinney
Street in the City of Denton, such date being at least seven days after the date of publication of
notice of such public hearing and the receipt of written notices of such public hearing by the pre-
siding officer of each taxing unit that includes in its boundaries real property that is to be in-
cluded in the proposed reinvestment zone, in accordance with§312.201 of the Act; and
WHEREAS, such public hearing was held before the consideration and adoption of this
ordinance; and
WHEREAS, the City, at that hearing, invited any interested citizen or his representative
to appear and offer testimony or evidence for or against the creation of the reinvestment zone,
the boundaries of the proposed reinvestment zone, whether all or part of the territory described in
the notice calling the public hearing should be included in the proposed reinvestment zone, and
the concept of tax abatement; and
WHEREAS, in accordance with 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 public hearing to protest the creation of the proposed reinvestment zone or
the inclusion of their property in such reinvestment zone; and
WHEREAS, on the 20th day of April, 2010, on or before the holding of the above-
mentioned public hearing, the City Council passed Resolution No. 2010 -009 establishing guide-
lines and criteria governing tax abatement agreements and stating that the City of Denton elects
to become eligible to participate in tax abatement, in accordance with Tex. Tax Code§312.002and
such Policy is now in effect and was in effect prior to the public hearing; and
WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of-
fered evidence in favor and against all matters relating to the creation of the reinvestment zone,
and, after hearing this testimony and evidence, the City Council deems it in the public interest to
create this reinvestment zone; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The facts and recitations contained in the preamble of this ordinance are
hereby found and declared to be true and correct.
SECTION 2. For the purposes of this ordinance, the following terms and phrases shall
have the following meanings ascribed to them:
A. Improvements-Improvements shall include, for the purpose of establishing eligibility under
the Act, any activity at the location, including, but not limited to, new construction, recon-
struction, renovation and repairs.
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 in the Code.
C. Tangible Personal Property-Tangible Personal Property shall be defined as business personal
property, excluding inventory and supplies.
D. Base Year-The base year for determining increased value shall be the taxable real property
value assessed the year in which the Tax Abatement Agreement is executed.
SECTION 3. The City, through its City Council, after conducting the above-mentioned
public hearing and having heard such evidence and testimony, makes the following findings and
determinations based on the evidence and testimony presented to it:
A. The public hearing on the adoption of the reinvestment zone has been properly called, held,
and conducted in accordance with§312.201 of the Act and all other applicable laws, and that
notice of such hearing has been published as required by law and delivered to the presiding
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
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B. Prior to holding the public hearing, the City has adopted, by resolution, the guidelines and
criteria governing tax abatement agreements by adopting a City of Denton Tax Abatement
Policy, as amended, and the City has elected to participate in tax abatement; and
C. The City had jurisdiction to hold and conduct the public hearing on the creation of the pro-
posed the reinvestment zone, pursuant to chapter 312 of the Act; and
D. The boundaries of the reinvestment 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 shaded area at-
tached hereto as Exhibit `B' and being approximately 48 acres at or near the intersection of
Airport Road and Corbin Road in 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 if written word for
word herein; and
E. The creation of the reinvestment zone for commercial/industrial tax abatement with the im-
provements expected to be developed by Target Corporation would be of benefit to the City
and to the land to be included in the zone, with the boundaries as described in Exhibit"N' af-
ter 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. The reinvestment zone as defined in Exhibit"A'and shown on Exhibit`B'meets the criteria for
the creation of a reinvestment zone, as set forth in §312.202 of the Act, since it is, "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 Municipality," and
G. The reinvestment zone as defined in Exhibit"A'and shown on Exhibit`B'meets the criteria for
the creation of a reinvestment zone as set forth in the Denton Policy for Tax Abatement and
the expected improvements in the boundaries of the zone are expected to enhance significant-
ly the value of all taxable real property and tangible personal property located within the
reinvestment zone.
SECTION 4. Pursuant to §312.201 of the Act, the City, through its City Council, hereby
creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area
described by the metes and bounds description in Exhibit"A'attached hereto and as shown on Ex-
hibit`B'attached hereto and such reinvestment zone is hereby designated and shall hereinafter be
designated as Reinvestment Zone No. IX, City of Denton, Texas.
SECTION 5. Reinvestment Zone No. IX shall be effective as of January 1, 2011, and
shall terminate five years from that date, on December 31, 2016, unless extended for an addition-
al five-year term or unless earlier terminated by action of the City Council in accordance with
§312.203 of the Act.
SECTION 6. To be eligible for tax abatement, a commercial/industrial project shall:
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A. Be located wholly within the zone established herein;
B. Meet the requirements 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;
D. Conform to the requirements of the Citys zoning ordinance and all other applicable laws and
regulations; and
E. Have and maintain all land located within the designated zone, appraised at market value for
tax purposes.
SECTION 7. 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. Duration of exemption from two years to ten years depending on the value of the structures
and real property in accordance with the Denton Tax Abatement Policy, beginning with and
including January 1, 2011; and
B. Share of taxes abated - in the maximum of 65% of taxes on the total value of appraised real
property improvements and tangible personal property, excluding inventory and supplies, as
more particularly described in the Tax Abatement Agreement between the City of Denton
and Target Corporation, which are added, provided, however, nothing herein shall prevent
any other taxing unit that includes in its boundaries real property that is included in the rein-
vestment zone from entering into a tax abatement agreement with a different share of taxes
abated on the total value of appraised improvements which are added, in accordance with the
requirements of chapter 312 of the Act.
SECTION 8. Any written agreements authorized under this ordinance must include pro-
visions for:
A. Listing the kind, number, and location of all proposed improvements of the property;
B. Access to and authorizing the inspection of the property by municipal employees to ensure
that the improvements or repairs are made in accordance with the specifications 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 during the period that property tax exemptions are in
effect;
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D. Recapturing of property tax revenues lost as a result of the agreement if the owner of the
property fails to make the improvements or repairs as provided by the agreement;
E. Containing each term agreed to by the owner of the property;
F. Requiring the owner of the property to certify annually to the governing body of each taxing
unit that the owner is in compliance with each applicable term of the agreement;
G. Providing that the governing body of the municipality may cancel or modify the agreement if
the property owner fails to comply with the agreement;
H. Contain any additional terms and conditions 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 herein shall prevent other taxing units, who include in their
boundaries real property within the reinvestment zone, from negotiating terms and conditions
that are different from any municipal tax abatement agreement, so long as the mandatory
terms and conditions required by§312.205 of the Act are included.
SECTION 9. The City Council further directs and designates the City Manager and the
Director of Economic Development as liaisons for communication with regard to all matters per-
taining to the Zone, including, without limitation, the development of the amendment of the cur-
rent Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agreements
with industries, commercial enterprises, and other businesses eligible for tax abatement under the
Tax Abatement Policy and for communication with other taxing entities and the Economic De-
velopment Partnership Board.
SECTION 10. All ordinances or parts of ordinances in force when the provisions of this
ordinance became effective which are inconsistent or in conflict with the terms or provisions
contained in this ordinance are hereby repealed to the extent of any such conflict.
SECTION 11. If any section, paragraph, clause, or provision in this ordinance, or appli-
cation thereof to any person or circumstance is held invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause, or provision shall not affect any of the re-
maining portions of this ordinance.
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 which this ordin-
ance was adopted was posted and placed and conveniently accessible at all times to the general
public at the City Hall of the City for the time required by law, preceding this meeting, as re-
quired by the Open Meetings Act, Tex. Govt Code Ch. 551, and that this meeting was open to
the public as required by law at all times during which this ordinance and the subject matter the-
reof has been discussed, considered, and formally acted upon. The City Council further ratifies,
approves, and confirms such written notice and contents posting thereof. The City Council fur-
ther finds that a quorum was present at such meeting.
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SECTION 13. The contents of the notice of public hearing, which hearing was held be-
fore the City Council and before the passage of this ordinance on October 5, 2010, the publica-
tion of said notice is hereby ratified, approved, and confirmed.
SECTION 14. This ordinance shall become effective immediately upon its passage and
approval.
r"
PASSED AND APPROVED this the day of '2010.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: /
l"
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De4oh W)a.L dro p
DESCRIPTION OF PROPERTY SURVEYED
DESCRIPTION, of a 48,441 acre tract of land sltuated In the Robert Chown/ng Survey, Abstract No. 266, Denton Count), Texas, sold (root
being part of that certain tract of land described as Section 8, Tact f In Special Warranty Deed to Royror Investments, Ltd, recorded In
Volume f796, Page 601 of the Deed Records of Denton County, Texapt sold 480441 acre tract being more particularly described as follows.
COMMENCING, at a cut In concrete found In the east right-of-way line of Corbin Road (a variable width right-of=way); said point
being the northwest comer of Lot 1, Block A, Corbin Road Business Paris Phase III, an addition to the City of Denton, Texas according to
the plat recorded In Cabinet Y, Page 6J9 of the Plot Records of Denton County, Texas,
7HENC& North 00 degrees, 03 minutes, 03 seconds West along the sold east line of Corbin Road, a distance of 95.00 feet to a 112-inch
iron rod with PACHECO KOCH' cap set for caner at the POINT OF BEGINNING:
THENC& along the said east fine of Corbin Road, the following two (2) calls,
North 00 degrees, 03 minutes, 03 seconds West a distance of 673.41 feet to 0 112-inch Iron rod with PACHECO KOCH' cap,eet
for an angle point;
North 00 degrees, 14 minutes, 22 seconds West a distance of 1,272.71 feet to a 112-Inch Iron rod with PACHECO KOCH' cap net
for corner at the south and of a right-of-way comer dip at the intersection of the sold east line of Corbin Road and the south
right-of-way 11he of F.M. 1515 (Airport Road) (a 95-foot wide right-of-way);
THENCE, North 45 degrees, 13 minutes, 51 seconds East along sold comer dip, a distance of 26.05 feet to a 112-inch iron rod with
PACHECO KOCH' cap set for comer,
THENCE, South 89 degrees, 17 minutes, 56 seconds East along the said south line of F.M. 1515, a distance of 1,16764 feet to a
112-Inch iron rod with PACHECO KOCH' cap set for comer at the west end of aright-of-way comer dip at the Intersection of the. sold
south line of F.M. 1515 and the west right-of-wary line of Dakota Lana,,
7HENCE, South 44 degrees6 17 minutes, 56 seconds East along sold caner dip, a distance of 28.28 feet to a 112-inch Iron rod with
PACHECO KOCH' cap pet for comer,
THENCE, South 00 degreeg 42 minutes, 04 seconds West along the sold west Nne of Dakota Lane, a distance of 17QB4 feet to a
112-Inch iron rod with PACHECO KOCH' cap set for comer,
THENCE, South 89 degrees, 45 minute; J8 seconds West departing the sold welt line of Dakota Lone, a distance of 154J4 feet to a
112-inch Iron rod with PACHECO KOCH' cap set for corner,
THENCE, South 00 degrees, 14 minutes, 22 seconds East a distance of 1,786.91 feet to a 112-Inch Iron rod with PACHECO KOCH' cap
set for comer,
TT ENG& North 89 degrees, 63 minutes, 21 seconds West a distance of 73372 feet to a 112-Inch iron rod with PACHECO KOCH' cap set
for comer at the beginning of a tangent curve to the right
THENCE, In a northwesterly direction, along sold curve to the right having a central angle of 11 degrees, 42 minutes, 57 seoonds6 a radius
of 400.00 feet a chord bearing and distance of North e4 degrees, Of minutes; 53 seconds West 81.65 feet an am distance of 81.79 feet
to a 111-Inch iron rod with PACHECO KOCH' cap set at the end of said curve and the beginning of a reverse curve to the lefti
THENCE, in a northwesterly direction, along said curve to the left, hating a central angle of 11 degrees, 42 minutes, 57 seconds, a radius
of 800.00 feet, a chord bearing and distance of North 84 degrees, Of minutes, 53 seconds West, 163.30 feet an arc distance of 16458
feet to a 112-inch Iron rod with PACHECO KOCH" cap set at the end of said curve,
THENCE, North 89 degrees, 5J minutes, 21 seconds West a distance of 75.00 feet to the POINT OF BEGINNING;
CONTAINING, 2,110,106 square feet or 48.441 acres or land, more or less.
Exhibit A
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