2010-316sAlegahour documents\ordinances110\tif ordinance. doc
ORDINANCE NO. 2010-316
AN ORDINANCE DESIGNATING AND DESCRIBING THE BOUNDARIES OF A TAX
INCREMENT FINANCING REINVESTMENT ZONE FOR THE DOWNTOWN DISTRICT
OF DENTON, TEXAS; ESTABLISHING THE DURATION OF THE ZONE;
ESTABLISHING A TAX INCREMENT FUND; ESTABLISHING A BOARD OF
DIRECTORS FOR THE TAX INCREMENT FINANCING REINVESTMENT ZONE;
MAKING CERTAIN FINDINGS AND OTHER MATTERS RELATED THERETO; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton, Texas, (the "City"), desires to
promote the development of the Downtown District of the City of Denton by the creation of a
Tax Increment Financing Reinvestment Zone, as authorized by the Tax Increment Financing Act,
Chapter 311 of the Texas Tax Code, Vernon's Texas Codes Annotated (the "Act"); and
WHEREAS, the City has called a public hearing to hear public comments on the creation
of the proposed Tax Increment Financing Reinvestment Zone and its benefits to the City and the
property in the proposed Tax Increment Financing Reinvestment Zone; and
WHEREAS, notice of such public hearing was published in the Denton Record-
Chronicle, a daily paper of general circulation in the City, such publication date being not later
than seven (7) days prior to the date of the public hearing; and
WHEREAS, such hearing was convened at the time and place mentioned in the published
notice, on the 7th day of December, 2010, at 6:30 p.m., in the Council Chambers of the City of
Denton, Texas; and
WHEREAS, the City, at such hearing, invited any interested person, or his/her
representative, to appear and speak for or against the creation of the Tax Increment Financing
Reinvestment Zone, the duration of the Tax Increment Financing Zone, the boundaries of the
proposed Tax Increment Financing Reinvestment Zone, whether all or part of the territory which
is described in Exhibit "A" attached hereto and depicted on the map attached hereto as Exhibit
"B" should be included in such proposed Tax Increment Financing Reinvestment Zone, the
concept of tax increment financing and the appointment of a board of directors of the proposed
Tax Increment Financing Reinvestment Zone; and
WHEREAS, all owners of property located within the proposed Tax Increment Financing
Reinvestment Zone and all other taxing units and other interested persons were given a
reasonable opportunity at such public hearing to protest the creation of the proposed Tax
Increment Financing Reinvestment Zone and\or the inclusion of their property in such Tax
Increment Financing Reinvestment Zone; and
WHEREAS, the proponents of the Tax Increment Financing Reinvestment Zone offered
evidence, both oral and documentary, in favor of all of the foregoing matters relating to the
creation of the Tax Increment Financing Reinvestment Zone, and opponents of the Tax
Increment Financing Reinvestment Zone were given the opportunity to appear to contest creation
of the zone, after which the hearing was closed; NOW, THEREFORE,
sAlegallour documentslordinances1101tif ordinance.doc
THE CITY 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. The City Council, after conducting such hearing and having heard such
evidence and testimony, has made the following findings and determinations based on the
evidence and testimony presented to it:
a) The public hearing on adoption of the Tax Increment Financing Reinvestment Zone
has been properly called, held and conducted and that notice of such hearing has been
published as required by law and delivered to all taxing units overlapping the territory
inside the proposed Tax Increment Financing Reinvestment Zone.
b) Creation of the proposed Tax Increment Financing Reinvestment Zone with
boundaries as described in Exhibits "A" and "B" will result in benefits to the City, its
residents, and property owners, in general, and to the property, residents and property
owners in the Tax Increment Financing Reinvestment Zone.
c) The Tax Increment Financing Reinvestment Zone, as defined in Exhibits "A" and
"B", meets the criteria for the creation of a Tax Increment Financing Reinvestment
Zone set forth in the Act in that:
(i) It is a contiguous geographic area located wholly within the corporate limits
of the City.
(ii) It substantially impairs or arrests the sound growth of the municipality
creating the zone or constitutes an economic or social liability in its present
condition and use because of the presence of:
a. A substantial number of deteriorated, or deteriorating structures;
b. The deterioration of site or other improvements;
c. The area has a predominance of defective or inadequate sidewalks
or street layout; and/or
d. Conditions that endanger life or property by fire or other causes,
such as flooding, and other factors.
(iii)The proposed project plan includes the use of land in the zone in connection
with the operation of a proposed regional commuter or mass transit and rail
system.
d) That 10 percent or less of the property in the proposed Tax Increment Financing
Reinvestment Zone, excluding property that is publicly owned, is used for residential
purposes, which is defined in the Act as any property occupied by a house which has
less than five living units.
e) The total appraised value of all taxable real property in the proposed Tax Increment
Financing Reinvestment Zone according to the most recent appraisal rolls of the City,
together with the total appraised value of taxable real property in all other existing
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Tax Increment Financing Reinvestment Zones within the City, according to the most
recent appraisal rolls of the City, does not exceed 15 percent of the current total
appraised value of taxable real property in the City and in the industrial districts
created by the City, if any.
f) The proposed Tax Increment Financing Reinvestment Zone does not contain more
than 15 percent of the total appraised value of real property taxable by a county.
g) The improvements in the Tax Increment Financing Reinvestment Zone will
significantly enhance the value of all taxable real property in the Tax Increment
Financing Reinvestment Zone.
h) The development or redevelopment of the property in the proposed Tax Increment
Financing Reinvestment Zone will not occur solely through private investment in the
reasonably foreseeable future.
SECTION 3. The City hereby creates a Tax Increment Financing Reinvestment Zone
over the area described in Exhibit "A", attached hereto and depicted in the map attached hereto
as Exhibit "B", and such Tax Increment Financing Reinvestment Zone shall hereafter be
identified as the Tax Increment Financing Reinvestment Zone Number One, City of Denton,
Texas, (and also known as the "Downtown Denton Tax Increment Financing Reinvestment
Zone", the "Zone", or the "Tax Increment Financing Reinvestment Zone").
SECTION 4. There is hereby established a board of directors for the Zone, which shall
consist of seven (7) members. The board of directors of Downtown Denton Tax Increment
Financing Reinvestment Zone shall be appointed as follows:
a) Seven (7) members shall be appointed by the City Council as provided herein within
sixty (60) days of the passage of this ordinance or within a reasonable time thereafter.
All members appointed to the board shall meet the eligibility requirements set forth in
the Act. The governing bodies of the other taxing units that levy taxes on real
property in the Downtown Denton Tax Increment Financing Reinvestment Zone have
chosen not to pay any of their taxes into the Tax Increment Fund and have waived
their right to appoint members.
Board membership shall consist of the following:
1. Two members shall be City Council members.
2. Two members shall be either property owners of property located within the
Tax Increment Reinvestment Zone or residents whose primary residence is
located within the Tax Increment Reinvestment Zone.
3. Two members shall be either business owners of businesses located within the
Tax Increment Reinvestment Zone or a member of the Denton Chamber of
Commerce Board of Directors.
4. One member shall be a qualified voter of the City of Denton.
b) The terms of the board members shall be two-year terms. A board member may serve
no more than three consecutive terms. At the first meeting of the Board of Directors,
the board members will draw lots to establish the staggering of terms with three of the
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sAlegal\our documents\ordinances\10\tif ordinance.doc
board members serving an initial term of one year. The City Council shall designate
a member of the board to serve as chairman of the board of directors, and the board
shall elect from its members a vice chairman and other officers as it sees fit.
c) The board of directors shall make recommendations to the City Council concerning
the administration of the Zone. It shall prepare and adopt a project plan and Tax
Increment Financing Reinvestment Zone financing plan for the Zone and must submit
such plans to the City Council for its approval. The board of directors shall possess
all powers necessary to prepare, implement and monitor such project and financing
plans for the Tax Increment Financing Reinvestment Zone as the City Council
considers advisable including the submission of an annual report on the status of the
Zone. Any powers not herein delegated to the board of directors are specifically
reserved to the City Council.
SECTION 5. The Zone shall take effect immediately upon passage of this ordinance, and
the termination of the Zone shall occur on January 1, 2039, or at an earlier time designated by
subsequent ordinance of the City Council in the event the City determines that the Zone should
be terminated due to insufficient private investment, accelerated private investment or other good
cause, or at such time as all project costs and tax increment bonds, if any, and the interest
thereon, have been paid in full. The base tax value within the Zone is established as of January
1, 2010.
SECTION 6. The Tax Increment Base for the Zone which is the total appraised value of
all taxable real property located in the Zone, is to be determined as of December 31, 2010, the
year in which the Zone was designated a Tax Increment Financing Reinvestment Zone.
SECTION 7. Pursuant to Section 311.013(1) of the Tax. Code, the City hereby
determines that the following portions of the tax increment produced by the city of Denton shall
be paid into the tax increment fund for the reinvestment zone:
Years 1- 5
100%
Years 6 -10
95%
Years 11 - 20
90%
Years 21 - 30
85%
SECTION 8. There is hereby created and established a Tax Increment Fund for the Zone
which may be divided into such sub-accounts as may be authorized by subsequent resolution or
ordinance, into which all Tax Increments, less any of the amounts not required to be paid into the
Tax Increment Fund pursuant to the Act, are to be deposited. The Tax Increment Fund and any
sub-accounts are to be maintained in an account by the City and shall be secured in the manner
prescribed by law for funds of Texas cities. In addition, all revenues from the sale of any tax
increment bonds and notes hereafter issued by the City, revenues from the sale of any property
acquired as part of the tax increment financing plan and other revenues to be dedicated to and
used in the Zone shall be deposited into such fund or sub-account from which money will be
disbursed to pay project costs for the Zone or to satisfy the claims of holders of tax increment
bonds or notes issued for the Zone.
SECTION 9. If any section, paragraph, clause or provision of this Ordinance shall for
any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such
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sAlegahour documentslordinances1101tif ordinance.doc
section, paragraph, clause or provision shall not affect any of the remaining provisions of this
Ordinance.
SECTION 10. This Ordinance shall become effective immediately upon its passage and
approval. *7 4- PASSED AND APPROVED this the day of , 2010.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
T
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY: L L
Page 5
EXIEIIBIT A
CITY OF DENTON
TAX INCREMENT FINANCING REINVESTMENT ZONE No. 1
BOUNDARY DESCRIPTION
Beginning at the southwest corner of the ROW intersection of Carroll Blvd. and Sycamore, the
POINT OF BEGINNING;
THENCE, north along the west ROW of Carroll Blvd. to the northwest corner of the ROW
intersection of Carroll Blvd. and W. Parkway Street;
THENCE, east along the north ROW of W. Parkway Street to the northeast corner of the ROW
intersection of W. Parkway Street and Locust;
THENCE, south along the east ROW of Locust to the north ROW of McKinney;
THENCE, east along the north ROW of McKinney to a point directly north of the southeast
corner of the ROW intersection of McKinney and N. Bradshaw Street;
THENCE, south across McKinney and continuing south along the east ROW of N. Bradshaw
Street continuing directly south across E. Hickory Street to the south ROW of E. Hickory Street;
THENCE, west along the south ROW of E. Hickory Street to the northeast corner of a tract in
the Fred Hill Addition, Block A, Lot 1;
THENCE, south and east following the property line of a tract in the Fred Hill Addition, Block
A, Lot 1 to the northwest corner of a 1.406 acre tract, A 1184A H. Cisco, Tract 14;
THENCE, south along the west property line of a 1.406 acre tract, At 184A H. Cisco, Tract 14 to
its intersection with the north property line of a 1.694 acre tract At 184A H. Cisco, Tract 15;
THENCE, west and south along the north and west property line of a 1.694 acre tract At 184A H.
Cisco, Tract 15 to the northwest corner of a 0.16 acre tract, AI 184A H. Cisco, Tract 20;
THENCE, south along the west property line of a 0.16 acre tract, At 184A H. Cisco, Tract 20 to
the north ROW of Sycamore;
THENCE, directly south across Sycamore to the south ROW of Sycamore;
THENCE, west along the south ROW of Sycamore to the northwest corner of the Oakwood
Cemetery;
Denton, Boundary Description 051710
6!8120(0
Page I oft
THENCE, south along the west property line of the Oakwood Cemetery to the north ROW of
Prairie;
THENCE, directly south across Prairie to the south ROW of Prairie;
THENCE, west along the south ROW of Prairie to the southwest corner of the ROW intersection
of Prairie and Elm;
THENCE, north along the west ROW of Elm to the south ROW of Sycamore;
THENCE, west along the south ROW of Sycamore to the southwest corner of the ROW
intersection of Sycamore and Carroll Blvd. and the POINT OF BEGINNING, and containing a
total area of approximately 225.73 acres.
Denton, Boundary Description 051710
6/8/2010
Page 2 of 2
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