2011-070\\coda&departments\legal\our documents\ordinances1111315 s. locust becky and vince king ord.doc
ORDINANCE NO. 2011-070
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING A GRANT APPLICATION FROM BECKY AND VINCE KING FROM THE
DOWNTOWN INCENTIVE GRANT PROGRAM NOT TO EXCEED $15,000; AND
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive
Reimbursement Program by Ordinance No. 2007-072; and
WHEREAS, Becky and Vince King applied for a $15,000 grant; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council of the City of Denton hereby approves the request from
Becky and Vince King for $15,000 from the Downtown Incentive Reimbursement Grant Program.
SECTION 2. The City Manager, or his designee, is hereby authorized to execute the
Agreement and to carry out the duties and responsibilities of the City, including the expenditure
of funds as provided in the Agreement.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the '3~ day of ~ , 2011.
MARK A. BURR0U`QjgS, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APP OVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
s:leconomic developtnentlincentivesldowntown grantagreements1315 s, locustlordinance and agreement original doc
DOWNTOWN REIMBURSEMENT GRANT INCENTIVE AGREEMENT
This Downtown Reinvestment Grant Incentive Agreement (the "Agreement") is entered
into by and between the City of Denton, Texas (the "City"), duly acting herein by and through its
Mayor, and Becky King, Owner of Meridian of Denton, a Limited Liability Corporation (the
"Owner"), duly authorized to do business and in good standing in the State of Texas, duly acting
herein by and through its authorized officer.
WHEREAS, the City has adopted a resolution which provides that it elects to be eligible
to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria
governing downtown reinvestment grant incentive agreements known as the Denton Downtown
Reinvestment Grant Incentive Program; and
WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City
Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a
copy of which is on file in the City of Denton Economic Development Office and which is in-
corporated herein by reference; and
WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti-
tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive
agreements to be entered into by the City; and
WHEREAS, Owner will be the owner, as of the Effective Date (as hereinafter defined),
which status is a condition precedent, of certain real property, more particularly described in Ex-
hibit "A" attached hereto and incorporated herein by reference and made a part of this Agree-
ment for all purposes (the "Premises") as of the Effective Date; and
WHEREAS, on the 14th day of February, 2011, Owner submitted an application for rein-
vestment with various attachments to the City concerning the contemplated use of the Premises
(the "Application"), which is attached hereto and incorporated herein by reference as Exhibit
"B"; and
WHEREAS, the City Council finds that the contemplated use of the Premises, the Con-
templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement,
and the other terms hereof are consistent with encouraging development in accordance with the
purposes and are in compliance with the Ordinance and Program and similar guidelines and cri-
teria adopted by the City and all applicable law;
NOW, THEREFORE, the City and Owner for and in consideration of the premises and
the promises contained herein do hereby contract, covenant, and agree as follows:
1.
TERMS AND CONDITIONS OF REIMBURSEMENT
sAeconomic development\incentives\downtown grant agreements\315 s. locust\ordinance and agreement originaldoc
A. In consideration of and subject to the Owner meeting all the terms and conditions
of reimbursement set forth herein, the City hereby grants the following reimbursement:
1. A reimbursement in an amount not to exceed $15,000 attributable to new
capital investments, as hereinafter described, being constructed on the Premises.
B. A condition of the Reimbursement is that, by May 3, 2012 (subject to force maje-
ure delays not to exceed 180 days), a capital investment in the form of awnings and impact fees
as described in Exhibit "B" be constructed on the Premises. For the purposes of this paragraph,
the term "force majeure" shall mean any circumstance or any condition beyond the control of
Owner, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the
above-mentioned thresholds.
C. The term "capital investment" is defined as the construction, renovation and
equipping of awnings, utility upgrades, fagade and entryway work, as described in Exhibit "C"
(the "Improvements on the Premises", the "Contemplated Improvements" or "Improvements") to
include costs related to the construction of the Improvements on the Premises.
D. A condition of the Reimbursement is that the Contemplated Improvements be
constructed and the Premises be used substantially in accordance with the description of the
project set forth in Exhibit "B".
E. Owner agrees to comply with all the terms and conditions set forth in this Agree-
ment.
II.
CONDITION OF REIMBURSEMENT
A. At the time of the award of the Reimbursement, all ad valorem real property taxes
with respect to said property owned within the City shall be current.
B. Prior to the award of the Reimbursement, Owner shall have constructed the Capi-
tal Improvements as specified in Exhibit "B".
III.
RECORDS AND EVALUATION OF PROJECT
A. The Owner shall provide access and authorize inspection of the Premises by City
employees and allow sufficient inspection of financial information related to construction of the
Improvements to insure that the Improvements are made and the thresholds are met according to
the specifications and conditions of this Agreement. Such inspections shall be done in a way that
will not interfere with Owner's business operations.
Page 2
sAcconomic deve(opmentlincentivesldowntown grantagreements1315 s. locustlordinance and agreement originaLdoc
IV.
GENERAL PROVISIONS
A. The City has determined that it has adopted guidelines and criteria for the Down-
town Reimbursement Grant Incentive Program agreements for the City to allow it to enter into
this Agreement containing the terms set forth herein.
B. The City has determined that procedures followed by the City conform to the re-
quirements of the Code and the Policy, and have been and will be undertaken in coordination
with Owner's corporate, public employee, and business relations requirements.
C. Neither the Premises nor any of the Improvements covered by this Agreement are
owned or leased by any member of the City Council, any member of the City Planning and Zon-
ing Commission of the City, or any member of the governing body of any taxing units joining in
or adopting this Agreement.
D. In the event of any conflict between the City zoning ordinances, or other City or-
dinances or regulations, and this Agreement, such ordinances or regulations shall control.
V.
NOTICE
All notices called for or required by this Agreement shall be addressed to the following,
or such other party or address as either party designated in writing, by certified mail postage pre-
pare, by hand delivery or via facsimile:
OWNER: CITY:
Becky King George C. Campbell, City Manager
Meridian of Denton, LLC City of Denton
315 S. Locust Street 215 East McKinney
Denton, Texas 76201 Denton, Texas 76201
Fax No. 940.349.8596
VI.
CITY COUNCIL AUTHORIZATION
This Agreement was authorized by the City Council by passage of an enabling ordinance
at its meeting on the 3rd day of May, 2011, authorizing the Mayor to execute this Agreement on
behalf of the City, a copy of which is attached hereto and incorporated herein by reference as
Exhibit "D".
Page 3
s:\economic development\incentives\downtown grant agreements\315 s. locust\ordinance and agreement originaldoc
VII.
SEVERABIILTY
In the event any section, subsection, paragraph, sentence, phrase or word is held invalid,
illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and
shall be read as if the parties intended at all times to delete said invalid section, subsection, para-
graph, sentence, phrase, or word. In the event that (i) the term of the Reimbursement with re-
spect to any property is longer than allowed by law, or (ii) the Reimbursement applies to a
broader classification of property than is allowed by law, then the Reimbursement shall be valid
with respect to the classification of property abated hereunder, and the portion of the term, that is
allowed by law.
VIII.
OWNER STANDING
Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any
litigation questioning or challenging the validity of this Agreement or any of the underlying or-
dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to
intervene in said litigation.
IX.
APPLICABLE LAW
This Agreement shall be construed under the laws of the State of Texas and is fully per-
formable in Denton County, Texas. Venue for any action under this Agreement shall be in Den-
ton County,
X.
ENTIRE AGREEMENT
This instrument with the attached exhibits contains the entire agreement between the par-
ties with respect to the transaction contemplated in this Agreement.
XI.
BINDING
This Agreement shall be binding on the parties and the respective successors, assigns,
heirs, and legal representatives.
XII.
COUNTERPARTS
This Agreement may be executed in counterparts, each of which shall be deemed an orig-
inal, but all of which together shall constitute one and the same instrument.
Page 4
sAeconomic developmen6incentivesWowntown grant agreements1315 s. locusAordinance and agreement originaLdoc
XIII.
SECTION AND OTHER HEADINGS
Section or other headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.
XIV.
NO JOINT VENTURE
Nothing contained in this Agreement is intended by the parties to create a partnership or
joint venture between the parties, and any implication to the contrary is hereby disavowed.
XX.
AMENDMENT
This Agreement may be modified by the parties hereto to include other provisions which
could have originally been included in this Agreement or to delete provisions that were not orig-
inally necessary to this Agreement.
XXI.
FORCE MAJEURE
If, because of flood, fire, explosions, civil disturbances, strikes, war, acts of God, or other
causes beyond the control of either Party, either Party is not able to perform any or all of its obli-
gations under this Agreement, then the respective Party's obligations hereunder shall be sus-
pended during such period but for no longer than such period of time when the party is unable to
perform. p~
This Agreement is executed to be effective 30 days after the executed date of the day of , 2011, (the "Effective Date") by duly authorized officials of the City
and Owner. d
PASSED AND APPROVED this the day of '2011.
CITY OF DENTON
i
GEdRGfE C. CAMPBELL, CITY MANAGER
Page 5
s:\cconomic development\incentives\downtown grant agreements\315 s. locust\ordinance and agreement original.doc
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APP VED STO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
BECKY KING,
MERIDIAN OF
ATTEST:
BY:
STATE OF TEXAS
COUNTY OF DENTON
Before me, the undersigned authority, a Notary Public in and for said State of Texas, on
this day personally appeared George C. Campbell, City Manager for the City of Denton, known
to me to be the person who signed and executed the foregoing instrument, and acknowledged to
me that this instrument was executed for the purposes and consideration therein expressed.
Given under my hand and seal of office this the,, day of , 2011.
;;,•P'"~8~,, JENNIFER K. WALTERS
3 Notary Public, State of Texas
My Commission Expires
December 19, 2014
t
tary Pu is in and for the
ate of Texas
My Commission Expires:
Page 6
s:\economic developmenAincentivesWowntown grant agreements\315 s. locust\ordinance and agreement originaLdoc
STATE OF TEXAS
COUNTY OF DENTON
Before me, the undersigned authority, a Notary Public in and for said State of Texas, on
this day personally appeared Becky King, owner of Meridian of Denton, LLC, known to me to be the
person who signed and executed the foregoing instrument, and acknowledged to me that this in-
strument was executed for the purposes and consideration therein expressed.
Given under my hand and seal of office this the day of A V( 1 , 2011.
0,01 PO CHRISTINA DAVIS
?rc' Notary Public, State of Texas
My commission Expires
- 4M
October 21, 2013
I
Notary Public in and for the
State of 7FW
My Commission Expires: 10 21 Zoe
Page 7
Exhibit A
LEGAL DESCRIPTION
315 S. LOCUST
KING ADDN BLK I LOT I
Exhibit B
t U
+f ~ I V
DOWNTOWN INCENTIVE REIMBURSEMENT GRANT
PROGRAM APPLICATION
Please return completed with necessary attachments and signature to Downtown Development office, 215 E.
McKinney' no later than 5 p.m. on the Monday prior to the 1't Wednesday of each month. If you, have any
application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any
building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at
940-349-7732. Date ,
♦ Applicant Name Be.ce
♦ Business Name M LLC-
♦
Mailing Address -D 1 `1'
Contact Phone Email
Building Owner (lfdifj,:rent,from applicant) - _
s(i l1 e ~~~c 1 n t' ~ It }c Dk- I }t ~l e .~n,n ~ec l"1 C
Historical/CurrentBuildingName 11115
Physical Building Address
Type of Work: (check all that apply)
Fagade Rehabilitation Fagade -Paint-only Awnings
L/ Signage ✓ Impact Fee ✓ Utility
-
Upgrade
t Details o~fr,JPlanned Improvements for Downtown Incentive Reimbursement Grant:
(attach addirlonalpapeA if rJe~.!?5s
ary1l _ 11 n I .1 L\{ A. Af 4,
r- A, f I I
V-
List Contractor/Project architect Proposals and Total Amounts (please attach original proposals):
i LL.wdZ.l- `
1. LC..mC1 •.e _ .
2. k t i c ' A+e.~ Cv,-,-c i flue ! t Ft't~
♦ TOTAL COST OF PROPOSED PROJECT (0I t o
L~
♦ AMOUNT OF GRANT REQUESTED (50% OF TOTAL COST AnOVF,TT?C) C7(;~ ~
♦ Complete budget detail form attached on page 13
Attach with all required color samples of paint, awning/canopy, sign design, etc., as well as
photo raphs of(~buildin Is `~exterior facade, roof and foundation. l! .7 0 /
Applicant's
10 of 12
5:1lncontivo Progr=m Downtowtt Incentive Grant Program Applicatimr.doe
I'll,
of
HOW WILL THIS PROJECT BENEFIT DOWNTOWN DENTOM
We are re-furbishing and expanding our privately-owned 1940's era building,
once the home of Denton Electric Shop. This expansion will feature
architecturally appealing period-based residential and retail space with onsite
parking, increased greenspace and re-configured street parking. By incorporating
several points in the Denton Downtown Master Plan, this project will enhance the
immediate area as well as the approach on Locust toward the Square. It will
increase density by adding modern living space in conjunction with added retail
space. The improvements, including parking and increased greenspace will
benefit the living and working experience of neighborhood occupants and
pedestrians.
BUDGET DETAIL-see attached
PROJECT EXPENDITURES
CITY FUNDS REQUESTED
APPLICANT'S FUNDS
TOTAL
FACADE REHAB
6,125
6,125
12,250
AWNINGS/SIGNS
250
250
500
IMPACT FEES
8,625
8,625
17,250
UTILITY UPGRADES
10,000
10,000
20,000
TOTALS
25,000
25,000
50,000
ATTACH EXACT COLOR SAMPLES, MODEL NUMBERS (WINDOWS, DOORS, ETC.), PHOTOS AND/OR SKETCHES OF WORK
TO BE COMPLETED. PLEASE INCLUDE AS MUCH DETAIL AS POSSIBLE.
11 of 12
S:Uocentive ProgrmnlDowntown Incentive Grant Program Appllcation,doc
01,
DOWNTOWN INCENTIVE REIMBURSEMENT GRANT
AGREEMENT FORM
Please return completed with necessary attachments and signature to Downtown Development office, 215 E.
McKinney no later than 5 p.m. on the Monday prior to the I" Wednesday of each month. If you have any
application questions, please contact the Downtown Project Coordinator at 940-349-7731. If you have any
building or sign permit/historic preservation questions, please contact the Historic Preservation Officer at
940-349-7732.
I have met with the Downtown Project Coordinator, and I fully understand the Downtown Incentive
Reimbursement Grant Procedures and Details established by the Denton City Council. I intend to use this
grant program for the aforementioned renovation projects to forward the efforts of revitalization and
historic preservation of Denton's historic downtown. I have not received, nor will I receive insurance
monies for this revitalization project.
I have read the Downtown Incentive Reimbursement Grant Application Procedures including the
Downtown Incentive Reimbursement Grant Details.
I understand that if I am awarded a Downtown Incentive Reimbursement Grant by the Denton City
Council, any deviation from the approved project may result in the partial or total withdrawal of the
Downtown Incentive Reimbursement Grant. If I am awarded a reimbursement grant for fagade, awning
or sign work and the fagade, sign or awning is altered for any reason within one (1) year from
construction, I may be required to reimburse the City of Denton immediately for the full amount of the
Downtown Incentive Reimbursement Grant.
kING ~\DIMTIQ~ -
4 stt e-KVMRanization Name
Applicant's Signat*e' Printed Name Date
Building Owner's Signature (if different from applicant) Printed Name Date
DPTFSignature (obtain signature ai DTTFmeeting) Recommendation Date
EDPB Signature (obtain signature at EDPB meeting) Recommendation Date
12 of 12
S:Uncentivo PmgratnXDowntown Incenlive Grwd Pmgrmn Applicarion.doe
Exhibit C
From: GEES Office [office@gees.us]
Sent: Monday, January 03, 2011 11;03 AM
To: Vince King
Subject: Fwd: Vince King Addition Impact Fees - Phase I
Original Message
Sub,jectNince King Addition Impact Fees - Phase I
Date:Sun, 2 Jan 2011 18:28:27 -0600
F'rorn:Jenks, Jim <Jiiii.JenksLiicityof(leiiton,com>
To:'GEES Office' <office(-)J,ees,us>
CC:Loiselle, EmilyA. <Eiiiilv.Loise.Ile(c-i),cityofdontoii.coiii>, Patterson, Rodney D.
<Rodney, Patterson ncityofdenton.com>
Greg:
Based on the assumption that multifamily having two bedrooms would have a larger water service fixture unit count
that would a salon in the same space, the same Water and Sewer Impact Fees would be charged for either option for
Phase 1, and would be $11,492.00 and $5,746,00, respectively. These fees would be due at time of Building Permit.
James S. Jenks, P.E.
City of Denton
ph: (940) 349-7112
From: GEES Office [mailto:officeCd)gees,us]
Sent: Friday, December 03, 2010 5:05 PM
To: Jenks, Jim
Subject., King Addition
Mr. Jenks,
Please verify that the following respnses address your comments.
Thank your for your tune,
Water
Comment #5. Applicant has indicated there are two possible scenarios for new development of
this property. One involves multifamily only, with 28 bedrooms, That would yield Water Impact
Fees calculated as follows: Domestic: (28 bedrooms) x (0.26 SFE's/bedroom) x ($3,400.00/
SFE) = $24,752.00 Irrigation: 0 Total: $24,752,00 The other involves multifamily (26 bedrooms)
and a 1,400-square-foot salon. Water Impact Fees for that option will depend on how Applicant
proposes to meter the salon. City records indicate that only one water meter has been removed at
this property. It was on a -1/4" service line coaling off of Wainwright, and was removed over 10
years ago. Per City's Impact Fee Ordinance, no impact fee credit would be issued for that meter.
Response: Based on this computation it appears that the Water Impact fee for the 13 bedroom option for Phase
I would be $11,492.00. Based on the current plans the Salon and the apartments with 11 bedrooms would be
metered off of the same meter. What would be the Water Impact Fee for this option? At what point is this
Impact fee collected?
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