2011-0771\codad\departments\1ega1lour documents\ordinances\l l\peerless manufacturing abatement ord.doc
ORDINANCE NO. 2011-077
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT
AGREEMENT WITH PMFG, INC.; SETTING FORTH ALL THE REQUIRED TERMS OF
THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF
CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDI-
TIONS PRECEDENT TO PMFG, INC., A DELAWARE CORPORATION, RECEIVING THE
TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, on the 3rd day of May, 2011, after a public hearing duly held in accordance
with Tex. Tax Code §312.201 (the "Act"), the City Council passed Ordinance No. 2011- 0'7
(the "Ordinance") establishing Reinvestment Zone No. X, City of Denton, Texas as a commer-
cial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chap-
ter 312, Subchapter B of the Act; and
WHEREAS, on the 14th day of February, 2011, PMFG, Inc., submitted an application for
tax abatement with various attachments to the City concerning the contemplated use of certain
property located within the Zone; and
WHEREAS, the City Council finds that the contemplated use of the premises and the
contemplated improvements to the premises, as indicated by PMFG, Inc., are consistent with
encouraging the development of the Zone in accordance with the purposes for its creation and
are in compliance with the Denton Tax Abatement Policy; and
WHEREAS, the City Council deems it in the public interest to enter into a Tax Abate-
ment Agreement with PMFG, Inc.; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings contained in the preamble to this Ordinance are true and cor-
rect and are adopted as a part of the whole Ordinance.
SECTION 2. The City Council finds and determines the following:
A. The contemplated use of the premises and the contemplated improvements of the
premises, as indicated by PMFG, Inc. are consistent with encouraging the develop-
ment of the Zone in accordance with the purposes of its creation and are in com-
pliance with the Denton Tax Abatement Policy.
B. The City Council finds that the improvements sought by PMFG, Inc. within the Zone
are feasible and practical and would be a benefit to the land to be included in the
Zone and to the City after the expiration of the Tax Abatement Agreement to be en-
tered into with PMFG, Inc.
Page 1 of 3
\\codad\departments\1ega1\our documents\ordinances\11\peerless manufacturing abatement ord.doc
C. The City Council finds that the Tax Abatement Agreement contains all the terms
which are mandatorily required to be included in any tax abatement agreement under
§312.205 of the Act.
D. In accordance with §312.2041 of the Act, the City Council finds that not later than the
date on which the City Council considered this ordinance, and not later than the se-
venth day before the date the City enters into a Tax Abatement Agreement with
PMFG, Inc., that the City Manager, through the Director of Economic Development,
who are hereby designated and authorized by the City Council to give such notice,
delivered to the presiding officer of the Denton Independent School District and Den-
ton County a written notice that the City intends to enter into this Tax Abatement
Agreement with PMFG, Inc., and that this notice included a copy of the proposed Tax
Abatement Agreement in substantially the form of the Tax Abatement Agreement at-
tached to this ordinance.
E. Before the passage of this Ordinance, the City Council held a public hearing in accor-
dance with §312.201 of the Act and created Reinvestment Zone No. X.
F. The City Council finds that the project within Reinvestment Zone No. X is a redeve-
lopment of an existing business as defined in the Tax Abatement Policy and requires
additional incentives to promote economic development that generally satisfies the
requirements of the policy and the City Council hereby authorizes a tax abatement of
a maximum of 40% on the increased valuation of the Taxable Real Property im-
provements and tangible personal property as more particularly described in the Tax
Abatement Agreement attached hereto and made a part hereof by reference as Exhibit
"A" (the "Tax Abatement Agreement").
SECTION 3. The Mayor, or in his absence, the Mayor Pro Tem, is hereby authorized to
execute the Tax Abatement Agreement with PMFG, Inc. in substantially the same form as the
Tax Abatement Agreement attached as Exhibit "A".
SECTION 4. The City Council hereby instructs and authorizes the City Manager to in-
spect, audit, and evaluate the progress of PMFG, Inc. to determine if it has met all of the condi-
tions of the attached Tax Abatement Agreement prior to the tax abatement going into effect.
SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in
this ordinance, or application thereof to any person or circumstance is held invalid by any court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
this Ordinance, the City Council of the City of Denton hereby declares that they would have
enacted such remaining portions despite any such validity.
SECTION 6. This Ordinance shall become effective immediately upon its passage and
approval.
Page 2 of 3
\lcodad\departments\legal\our documents\ordinances\l l\peerless manufacturing abatement ord.doc
PASSED AND APPROVED this the 'i day of , 2011.
MARK°A.13.LRR-OUGIjf, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY.
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:._
Page 3 of 3
Exhibit A
TAX ABATEMENT AGREEMENT
This Tax Abatement 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 PMFG,
Inc., a Delaware 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 tax abatement and has adopted guidelines and criteria governing tax abatement
agreements known as the Denton Tax Abatement Policy;
WHEREAS, on the 20th day of April, 2010, the City Council of Denton, Texas (the "City
Council") adopted the Denton Tax Abatement Policy (the "Policy"), a copy of which is on file in
the City of Denton Economic Development Office and which is incorporated herein by refer-
ence;
WHEREAS, the Policy constitutes appropriate "guidelines and criteria" governing tax
abatement agreements to be entered into by the City as contemplated by Section 312.002 of the
Texas Tax Code, as amended (,the "Code");
WHEREAS, on the ~ -day of 2011, the City Council passed Ordinance No. iqY& (the "Ordinance") establishing Reinvestment Zone No. X, City of Denton, Texas, as a
commercial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title
3, Chapter 312, Subchapter B of the Code (the "Act");
WHEREAS, Owner will be the owner, as of the Effective Date (as hereinafter defined),
which ownership is a condition precedent, of certain real property, more particularly described in
Exhibit "A" attached hereto and incorporated herein by reference and made a part of this Agree-
ment for all purposes (the "Premises") located entirely within the Zone as of the Effective Date;
WHEREAS, on the 11th day of February 2011, Owner submitted an application for tax
abatement with various attachments to the City concerning the contemplated use of the Premises
(the "Application for Tax Abatement"), which is attached hereto and incorporated herein by ref-
erence as Exhibit "B";
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 of the Zone in accor-
dance with the purposes for its creation and are in compliance with the Ordinance and Policy and
similar guidelines and criteria adopted by the City and all applicable law; and
WHEREAS, notice has been published in accordance with Chapter 312 of the Tax Code
and written notice that the City intends to enter into this Agreement, along with a copy of this
Agreement, has been furnished by the City, in the manner and by the time prescribed by the
Code, to the presiding officers of the governing bodies of each of the taxing units in which the
Premises is located;
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:
I.
TERMS AND CONDITIONS OF ABATEMENT
A. In consideration of and subject to the Owner meeting all the terms and conditions
of abatement set forth herein, the City hereby grants the following tax abatement ("Abatement"):
1. An abatement equal to 40% of City ad valorem taxes attributable to new capital in-
vestments resulting in an increase of assessed value, determined by the Denton Cen-
tral Appraisal District, of real property improvements to and tangible personal proper-
ty (excluding inventory and supplies) located on the Premises but only if such in-
crease is at least $5,000,000 over the assessed value, determined by the Denton Cen-
Page 2
tral Appraisal District, of the Premises and tangible personal property (excluding in-
ventory and supplies) located on the Premises as of January 1, 2011, for a period of
five years commencing on January 1 of the year following the Owner's issuance of a
certificate of occupancy (the "CO") for the Premises. If such increase in assessed
value, determined by the Denton Central Appraisal District, is less than $5,000,000
there will be no Abatement.
B. A condition of the Abatement is that, by December 31, 2013 (subject to force
majeure delays not to exceed 180 days), a capital investment which results in an increase in the
assessed values, determined by the Denton Central Appraisal District, contemplated by Section
I.A.1 be made to 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 Sec-
tion XX "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 the Improvements on the Premises (the "Contemplated Improvements" or "Im-
provements") to include (1) costs related to the development and improvement of the real estate,
including, without limitation, construction costs and design and engineering costs; (2) tangible
personal property located on or at the Contemplated Improvements by Owner, excluding inven-
tory and supplies. The kind and location of the Contemplated Improvements is more particularly
described in the Application for Tax Abatement.
D. A condition of the Abatement is that the Contemplated Improvements be con-
structed and the Premises be used substantially in accordance with the description of the project
set forth in the Application for Tax Abatement.
E. A condition of the Abatement is that throughout the Term of the Abatement, the
Contemplated Improvements shall be operated and maintained for the purposes set forth herein
Page 3
so that the uses of the Premises shall be consistent with the general purpose of encouraging de-
velopment or redevelopment of the Zone, except as otherwise authorized or modified by this
Agreement.
F. A condition of the Abatement is that throughout the Term of the Abatement, the
Owner shall employ a minimum of 85, with an average wage of $50,000.00 at the Improvements
to be constructed at the property described in Exhibit "A". Should the Owner employ less than
the minimum threshold of 85 people or provide an average wage of less than $50,000.00, the
grant payment will be reduced by the percent decrease the actual employment or actual wage
bears to the thresholds set within this agreement. For example, if the number of jobs created
equals 76, which is a 10% less than the 85 jobs threshold, the grant payment will be reduced by
10%. Or, if the average wage equals $45,000.00, which is 10% less than the average wage thre-
shold, the grant payment will be reduced by 10%.
G. The City shall have the right to terminate the Abatement if the Owner does not
occupy the Contemplated Improvements continuously for the term of the Abatement for the pur-
poses set forth in the Tax Abatement Application. In the event of such termination the Owner
shall refund to the City all previous tax abatements and all tax abatements for future years shall
be terminated.
H. Owner agrees to comply with all the terms and conditions set forth in this Agree-
ment.
II.
FAILURE TO MEET CONDITIONS
A. In the event that (i) the conditions in paragraphs I(B) through I(H) are not met; or
(ii) Owner allows its ad valorem real property taxes with respect to the Premises or Improve-
ments, or its ad valorem taxes with respect to any tangible personal property, if any, owned by
the Owner which is located in the Improvements, owed the City to become delinquent and fails
Page 4
to timely and properly follow the legal procedures for protest and/or contest of any such ad valo-
rem real property or tangible personal property taxes; or (iii) any other conditions of this Agree-
ment are not met, then a "Condition Failure" shall be deemed to have occurred (it being unders-
tood that a Condition Failure relating to any condition set forth in paragraphs I(B) through I(H)
shall not be deemed to occur merely because at a particular time it cannot be determined whether
such condition will be met, but shall occur only if at a particular time it can be definitively de-
termined that such condition will not be met). In the event that a Condition Failure occurs, the
City shall give Owner written notice of such Condition Failure and if the Condition Failure has
not been cured or satisfied within ninety (90) days of said written notice, the Abatement shall be
terminated with respect to the year in which notice of the Condition Failure is given and all fu-
ture years; provided, however, that if such Condition Failure is not reasonably susceptible of
cure or satisfaction within such ninety (90) day period and Owner has commenced and is pur-
suing the cure or satisfaction of same, then after first advising City Council of efforts to cure or
satisfy same, Owner may utilize an additional ninety (90) days. Time in addition to the fore-
going 180 days may be authorized by the City Council. It is understood that the Abatement with
respect to any year prior to the year in which notice of the Condition Failure is given shall not be
forfeited or recaptured except as indicated under Section II.B hereof. Notwithstanding any pro-
vision in this Agreement to the contrary, Owner shall refund to the City all tax abatements pre-
viously received with interest for the year in which the notice of Condition Failure is given.
B. If, however, the Owner fails to construct any structures or other improvements, or
fails to install any equipment or other tangible personal property within the Premises by Decem-
ber 31, 2013 or if the assessed value, determined by the Denton Central Appraisal District, of the
Improvements falls below the minimum $5,000,000 threshold during the term of the Abatement,
then this Agreement may be terminated by the City. In such event, Owner shall refund to the
Page 5
City all tax abatements previously granted and received under this Agreement with interest on
the amount to be refunded at six percent (6%) per annum.
C. In the event of a Condition Failure by Owner which is not cured or satisfied as set
forth herein, in addition to a partial or total recapture of the tax abatement, the City may cancel
or modify this Agreement.
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 to insure that the Improve-
ments 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 busi-
ness operations. City shall annually (or such other times deemed appropriate by the City) eva-
luate the Project to ensure compliance with this Agreement. Owner shall provide information to
the City on a form provided by the City for the evaluation. The information shall include inven-
tory listing the kind, number, and location of and the total assessed value, determined by the
Denton Central Appraisal District, of all Improvements to the Premises, including, without limi-
tation, the assessed value, determined by the Denton Central Appraisal District, of all structures
and all tangible personal property installed or located in the Premises.
B. The City Manager shall make a decision and rule on the eligibility of the Project
for tax abatement based on the information furnished each year by the Owner on or before Au-
gust 1 of the taxable year and shall so notify Owner and the City Council.
C. During normal office hours throughout the Term of this Agreement, providing
reasonable notice is given to Owner, the City shall have access to the Premises by City em-
ployees for the purpose of inspecting the Premises and the Improvements to ensure that the Im-
provements are being made in accordance with the specifications and conditions of this Agree-
Page 6
ment and to verify that the conditions of this Agreement are being complied with, provided that
such inspection shall not interfere with Owner's normal business operations.
D. The Owner shall annually make a certification in writing to the City council, on or
before June 1St of each year this Agreement is in effect that certifies that the Owner is in com-
pliance with each applicable term of this Agreement.
IV.
GENERAL PROVISIONS
A. The City has determined that it has adopted guidelines and criteria governing tax
abatement 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. The Premises are not in an improvement project financed by tax increment bonds.
D. 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.
E. 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.
EFFECT OF SALE, ASSIGNMENT, OR LEASE OF PROPERTY
A. The Abatement with respect to the Premises, including any tangible personal
property located on the Premises owned by Owner, shall vest in Owner and shall be assignable,
with City approval, which shall not be unreasonably withheld, to any individual, partnership,
Page 7
joint venture, corporation, trust or other entity (irrespective of whether or not such assignee is
related to or affiliated with Owner) which acquires title to the Premises. Any assignee of Owner
or any assignee of a direct or indirect assignee of Owner shall be treated as "Owner" under this
Agreement. No assignment shall require the consent of City if the assignment is to a wholly-
owned subsidiary of the Owner or if, following such assignment, the Owner continues to occupy
and operate the Contemplated Improvements for the full term of this Agreement. Nor shall the
consent of the City be necessary if the assignee agrees to fully comply with the terms and condi-
tions of this Agreement.
VI.
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 facsmile:
OWNER:
CITY:
Peter Burlage
George A. Campbell
President and CEO
City Manager
14651 North Dallas Parkway
City of Denton
Suite 500
215 E. McKinney
Dallas, TX 75254
Denton, Texas 76201
Fax No. 214.351.0194
Fax No. 940.349.8596
VII.
CITY COUNCIL AUTHORIZATION
This Agreement was authorized by the City Council by passage of an enabling ordinance
at its meeting on the JWday of , 2011, authorizing the Mayor to execute this Agree-
ment on behalf of the City, a copy of which is attached hereto and incorporated herein by refer-
ence as Exhibit "C".
Page 8
VIIl.
BOARD OF DIRECTORS AUTHORIZATION
This Agreement was entered into by Owner, pursuant to authority granted by the Board
of Directors of its ultimate parent, PMFG, Inc., a Delaware corporation, as authorized by corpo-
rate resolution to execute this Agreement on behalf of Owner; a certificate evidencing such reso-
lution and consent is attached hereto and incorporated herein as Exhibit "D" as if written word
for word herein.
IX.
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 Abatement with respect to
any property is longer than allowed by law, or (ii) the Abatement applies to a broader classifica-
tion of property than is allowed by law, then the Abatement shall be valid with respect to the
classification of property abated hereunder, and the portion of the term, that is allowed by law.
X.
ESTOPPEL CERTIFICATE
Any party hereto may request an estoppel certificate from the other party hereto so long
as the certificate is requested in connection with a bona fide business purpose. The certificate,
which if requested will be addressed to the Owner, shall include, but not necessarily be limited
to, statements that this Agreement is in full force and effect without default (or if default exists
the nature of default and curative action, which should be undertaken to cure same), the remain-
ing term of this Agreement, the levels and remaining term of the Abatement in effect, and such
other matters reasonably requested by the party(ies) to receive the certificates.
Page 9
XI.
OWNER STANDING
Owner, as a party to this Agreement, shall be deemed a proper and necessary parry 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.
XII.
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, Texas.
XIII.
MUTUAL ASSISTANCE
City and Owner agree to do all things reasonably necessary or appropriate to carry out the
terms and provisions of this Agreement and to aid and assist each other in carrying out such
terms and provisions. Owner and City agree at any time, and from time to time, to execute any
and all documents reasonably requested by the other party to carry out the intent of this Agree-
meat.
XIV.
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.
XV.
BINDING
This Agreement shall be binding on the parties and the respective successors, assigns,
heirs, and legal representatives.
Page 10
XVI.
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.
XVII.
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.
XVIII.
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.
XIX.
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 pursuant to the procedures set forth in Title 3, Chapter 312 of
the Code.
XX.
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.
Page 11
This Agreement is executed to be effective 30 days after the executed date of the aay of
2011, (the "Effective Date") by duly authorized officials of the City and Owner.
CITY OF DENTON TEXAS
BY:
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APP VED S TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
PMFG, INC.
BY: )4&,OX4_7~
PETER BURLAG
ATTEST:
BY:
Page 12
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 Mark Burroughs, Mayor 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 thIA"day o , 2011.
"011111 A,1114.1. iqk//)/7
`000"F lp6f', JENNIFER K. WALTERS
Notary Public, State of Texas o6y ublic in and for the
my Commission Expires
December 19, 2014 tate Texas
-11 My Commission Expires: o~ 9
Page 13
STATE OF TEXAS §
COUNTY OF DALLAS
Before me, the undersigned, Peter Burlage, on behalf of PMFG, Inc., known to me to be
President of PMFG, Inc., and to be the person who signed and executed the foregoing instru-
ment, and acknowledged to me that this instrument was executed for the purposes and considera-
tion therein expressed.
Given under my hand and seal of office this the 42 $,day of 2011.
" KATHY SEALE
MY COMMISSION EXPIRES
z
~:v~,l DeoWw 21, 2013
Notary Public ' and for the
State of
My Commission Expires: /a 3
EXH I BIT A
FIELD NOTES
BEING A TRACT OF LAND LOCATED IN THE ROBERT CHOWNING SURVEY,
ABSTRACT No. 266 AND THE O.S. BREWSTER SURVEY, ABSTRACT No. 56,
DENTON COUNTY, TEXAS, BEING A PORTION OF LOT 2, BLOCK A, RYAN
COMPANIES ADDITION, AN ADDITION TO THE CITY OF DENTON, TEXAS,
RECORDED IN INSTRUMENT No. 2010-96 OF THE PLAT RECORDS OF
DENTON COUNTY, TEXAS AND BEING A PORTION OF A TRACT OF LAND
DESCRIBED AS SECTION 8, TRACT ONE, AS RECORDED IN VOLUME 1796,
PAGE 601 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY,
TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND
BOUNDS AS FOLLOWS:
BEGINNING AT A 1/2" IRON ROD SET WITH A CAP STAMPED "WIER &
ASSOC INC" FROM WHICH A 1/2" IRF WITH A CAP STAMPED "KAZ 5312" AT
THE NORTHEAST CORNER OF LOT 6, BLOCK A, CORBIN ROAD BUSINESS
PARK, PHASE III, AN ADDITION TO THE CITY OF DENTON, TEXAS,
RECORDED IN CABINET Y, PAGE 639 OF THE PLAT RECORDS OF
DENTON COUNTY, TEXAS AND THE NORTHWEST CORNER OF DAKOTA
LANE (A 73 FOOT WIDE RIGHT-OF-WAY) AS RECORDED IN INSTRUMENT
No. 2004-150435 OF THE REAL PROPERTY RECORDS OF DENTON
COUNTY, TEXAS BEARS S 54 °33'45"W, 86.00 FEET;
THENCE NORTHWESTERLY, AN ARC LENGTH OF 118.24 FEET ALONG A
CURVE TO THE LEFT, HAVING A RADIUS OF 375.00 FEET, A
DELTA ANGLE OF 18°03'57" AND A CHORD BEARING OF N
16°12'01"W, 117.75 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 25°13'59"W, 28.60 FEET TO A 1/2" IRON. ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE
TO THE LEFT;
THENCE NORTHWESTERLY, AN ARC LENGTH OF 59.68 FEET ALONG SAID
CURVE TO THE LEFT, HAVING A RADIUS OF 429.50 FEET, A
DELTA ANGLE OF 07°57'43" AND A CHORD BEARING OF N
29°12'51"W, 59.64 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 33°11'42"W, 132.77 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE
TO THE RIGHT;
THENCE NORTHWESTERLY, AN ARC LENGTH OF 213.11 FEET ALONG
SAID CURVE TO THE RIGHT, HAVING A RADIUS OF 370.50 FEET,
A DELTA ANGLE OF 32°57'24" AND A CHORD BEARING OF N
16°43'00"W, 210.19 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 00°14'18"W, 686.31 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 89°52'18"E, 1,594.50 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE S 00043'24"W, 257.73 FEET TO A 112" IRON ROD SET WITH A CAP
STAMPED "WIER &ASSOC INC
THENCE S 5301510„W, 604.70 FEET TO A 112" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE S 00°43'24"W, 499.99 FEET TO A 112" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE S 89°34'16"W, 198.70 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED °WIER & ASSOC INC";
THENCE S 04°37'27"W, 73.92 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE 89053'17"W, 685.59 FEET TO THE PLACE OF BEGINNING AND
33.591 ACRES (1,,463,226 SQUARE FEET) OF LAND,
MORE OR LESS.
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96-0103 'ON '1SN1
NO I1 I UW S31 NWd1100 NVAU
IV, =19 ' 1 101
I O~ =u
ids e
' PEERLESSmfg.co.
MAKING ENERGYSAFE, EFFICIENT, AND CLEAN
February 11, 2011
City Manager
City of Denton
215 E. McKinney
Denton Texas 76201
Dear Sir:
EXH I BIT B
CORPORATE HEADQUARTERS
14651 North Dallas Parkway
Suite 500
Dallas, TX 75254
Telephone 214-357-6181
FAX 214-351-0194
Enclosed please find our final Application for Tax Abatement for the property located on or near
Corbin Road and Dakota Lane for a possible new facility being built on that site by Peerless Mfg. Co.
Should you have any questions with regard to the Application, you may contact our office at
214-353-5589.
Sincerely,
Kathy Sea e
Executive Assistant to the CEO
/kas
Enclosures
BURGESS-MANNING 1,> BOS-HATTEN
I'5 ALCO PRODUCTS U . . . ~ PEENLESS-
2010 Tax Abatement Policy
APPLICATION FOR TAX ABATEMENT
CITY OF DENTON, TEXAS
1. Property Owner
Company or Project Name
reeti
S IM 101
~ 7 s~ sz/
Mailing Address
i'~' a tLA's
Telephone a itlf 3 67-7-6 g l Fax No. a Y~ 3S'l - D ~G1 y
Website cv j~ M • ~a
Contact Name f C kt- 17 "&at.1A e
Title ~i-es 'Y- c~
Mailing Address ~>cz IA S P1~cu t~• f e • szs o
Telephone 3 s3 6-57 rr I Fax No. at fe _
Email Address p h u r- f' Qg cLV /JQ e j- Igo S c .H 6 • Gee wt
2. Provide a chronology of plant openings,/closing and relocations over the past 15 years.
A-1-07-
5~ /S -Og d Pe.~ C~~d a 0 F ~t ~ •G
i l --S-o S D p eve rt e,a YIti4KC~~'a.~+N-~.~ ,O l~ n t l r~. ~li ~,u~.
3. 'Pr tl <af Cn T~+ SGI~ ~r~R Sd r•lI 7r'✓
Provide a record of mergers and financial restructuring during the past 15 years.
a-as-/v - s ,t-b ~c o ~ ~~r-► ' os-a y-- d~ ~ r . ~ sto ~k. I-
44 of e. ltoce o os' oG :r-rck a
etc Ju r✓ ''o - D j •-O Q- Xt3 o~ f' It" B o 71 a K r 2 f-
. l -D e' Q c rcr s r¢ I o
4. L
Will the occupants of the project be owner or lessee? If lessee, are occupancy commitments already existing?
w6ber
5. Is the project a relocation of existing facility or a new facility to expand operations? If relocation, give
current location. t'
Page ] 1 of 19
2010 Tax Abatement Policy
6. If an existing Denton business, will project result in abandonment of existing facility? If so, the value of the
existing facility will be subtracted from the value of the new facility to arrive at total project value.
7. Property Description.
- Attach a copy of the legal description detailing property's metes and bounds. 565- E-X k k- /Q
- Attach map of project including all roadways, land use and caning within 500 feet of site. Se c
8. Current Value. Attach copy of latest property tax statement from the Denton County Central Appraisal
District (include both zeal an personal preo`pertyrrL~ '5K ' Q t
C/,e!L- C w r r rK ago ar-~t i r o a
~10.r~- D~ G~ C0.rQPr' AI!°P2 D-~ AroA~ery~' csp is -+ao ~lt;Z7c.~lf aCeu-r-a¢+elY.
9. Increased Value/Estimated Total Cost of Project.
Structures $ $ s PA I Site Development / _ c(
Personal Property $ / . D M Nil I Other improvements ` 700, o o 6
10. Indicate percent of tax abatement and number of years requested.
Percent Requested OG
Years Requested
List any other financial incentives this project will request/receive
Estimated Freeport Exemption ; e T,2o 1 o Fre pe r f 6)Cri4p b7i
Estimated Electric Utility Industrial Development Rider
Estimated Water/Wastewater Infrastructure Assistance
qua S 5/4, D
$ Q
$ D
11. Give a brief description of the activities to be performed at this location, including a description of products to
be produced and/or services to be provided.
The Denton facility will be an environmentally clean manufacturing process, fabricating steel
components to be assembled into products used in applications ranging from defense to nuclear reactor
components. The plant's environmental footprint will be minimal such that Peerless does not anticipate
requiring an air permit. There will be high-tech jobs located at this facility to engineer and design the
manufactured product. All manufacturing processes will be contained within the confines of the building
and therefore not visible from the outside.
Page 12 of 19
2010 Tax Abatement Policy
12. Describe any off-site infrastructure requirements:
• Water 8" ~itJa~LT (t'rt,e "e-. DaCCo1r. Lame 2Ktl- rrtSeevL
• Wastewater O h e
• Streets
• Drainage c/ " C P oo A !C o 4--o. La ti e
• Other
13. Project Operation Phase. Provide employment information for the number of years tax abatement is
requested.
At Project
Existing
Start Date
At Term of
Employment Information
Operation
(ifapplicable)
(mo/yr)
Abatement
A. Total number of permanent, full-time jobs
sf51,
/A jp
/pd -too .
B. Employees transferred from outside Denton
O
O ' $D
C. Net permanent full-timejobs (A, minus B.)
0
_ .
: /ffQ-f j~ Q
E. Total annual payroll for all permanent, full-time
~Q M M
jobs (A.)
F. Types of jobs created. List the job titles and number of positions in each category that will be employed
at the facility. Provide average wage for each category.
See ,-c.Kt, A t C" -
G Indicate the number of shifts the project will operate
6r,e '4o( /-acv a Sk(le: u'~rl
3 yet ~-S .
Page 13 of 19
20 10 Tax Abatement Policy
H. Estimate annual utility usage for project: ( o, w w uL4 I( K )
Electric J Cy 0,,:;, w u Wh
Water 1 3 3 11 3 C~ K VL L4.-4, 111
gpd
Wastewater r!o wR t w4, 1~ p-- gpd
Gas q /3 V /N d 1:1-'
mcf
~-o u K
ct h O F'
14. Describe any other direct benefits to the City of Denton as a result of this project (e.g., sales tax revenue or
batement Policy, Section 11I).
A
project elements identified in Tax
r
A
a -f '-ex aF N iT S Dig- 42 16 N4,. 12a w ~ ~o Y -k e a P n-L .
/ ►tig f'4, a C~ V 4 (u w a 0 CJ 0 0 oalGc~
for uhl~~ f-r4, ~•Fr~ .
-
-6n P-l t e -
AS e-W
-
15. Is property zoned appropriately? Yes No
Current zoning. / C _ G.
Zoning required for proposed project. C
Anticipated variances. /(f p A e-
16. Is property platted? Yes CoI~V ¢ anC a Ca f. No Cif
en«g
Will replatting be necessary Yes No
17. Discuss any environmental impacts created by the project.
A. List any permits for which applicant must apply. Applicant will be required to provide City with copies
of all applications for environmental permits upon completion of application(s).
~e e ~ l e s s M>x b e 1-e 5!& I` e ~ 5~ Q Q~T r c~ S iFo r ru wooer- Pkn 0 vetr
_peioa4 P ei- (-ess ^t*.K be re cju~re a< ¢o 0-421V 74 r a So!
W4~~e 'a-
pe -w~.i~ GS~" eKClli~~ovtaGl~ q'KG O't,&t--eKrraiS
B. Provide record of compliance to all environmental regulations for the past five years. uQp1
Cur-r,ewF Pet- wtctf JYLZ is re-PA.ir-r-d yj-ere~'' -e r.o
l~Bcvtc -e reca 18. Provide specific detail of any businesses/residents that will be displaced ana assurance inai wui vu uvtt,tau-
from the requesting company.
A10 hu.si^eS.SeS &r- rt-~s'rd~ene -2 wiGC be C~rSOQIeL0•e~•
jS ~rt er`-,~ t',- ee( pt, -
Page 14 of 19
2010 Tax Abatement Policy
19. Provide description of any historically significant area included within the project's area as determined by the
Historic preservation officer. If any, give detail of how the historically significant area will be preserved.
~Er~ Q1-~ i(D ~ltS•(ori~G/A SL4Att~lCen~' Q ~e.eS
,,y 1 y-G.e ~Jr~ i s a F ea s
20. Justification for Tax Abatement Request: Substantiate and more fully describe the justification for this
request. Include the amount of the abatement requested and show how it will contribute to the financial
viability of the project. Submit attachments if necessary.
legi e red e r -to nat.t b ,•f b
21. List additional abatement factors to be considered for this project as outlined on pages 3 and 4 of the Tax
Abatement Policy.
4,e r t~>C rill c dJ G f
22. Financial Information: Attach a copy of the latest audited financial statement or, in the case of a new project,
a business plan.
~Geel s vlo al ~~vtFl~ ~/u4e re~'~ r y[o ~CX~ t•h tj~
23. Does the protect have an eligible environmentally sustainable or renewable energy component (if so, please
identify type and provide a brief description)?
24. Applicants seeking LEED certification must complete the Green Building Application ror i ax AD
(Exhibit B of the policy). /u //g"
Page 15 of 19
2010 Tax Abatement Policy
This tax abatement application is submitted with the acknowledgement that additional certified financial information
may be required.
Authorized Signature
Date:
j/ L1~
Page 16 of 19
Denton Central Appraisal Distri, t - PropertyDetails Page 1 of 3
Prover De ails or account
Tax Information
The Denton Central Appraisal District is not responsible for the
assessment or collection of taxes for this or any other property.
if you have a question regarding your tax bill, or would like to
pay your tax bill online, please contact the Denton County Tax
Assessor / Collector.
General Information
37170
Pro ert ID
SDO088A-OOOOOA-0000-0004-0000
Geograhic ID
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. .
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Le...gal Description Expressway
Industrial Park Blk A Lot 4 (n Pt
4/278-a
. . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Situs Address
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1115 Duncan St Tx 76205-7215
.
.
.
Real
l
rty T
Prope
ype
8A
DO
08
S
Abstract/Subdivision
•
.
p
in SD0088A
rti
e
s
rope
All
View Plat
15 2
Agent ID
t Name
A
.
.
.at. es.ti
..nd... Associ... .
Quintin... A
gen
292672
2
wner ID
O
..............................................................°....~4
Co
Peerless
C
O nwer Name
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . .
.
.
.
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100
Onership
w
Percent
Mailing Address
. can S.t.
11 . 15 Dun.
Denton, TX 76205-7215
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Taxing Jurisdictions
.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C05 (City ..........Of......Denton)
G01 (Denton County)
.
.
S05 (Denton Isd)
'
-
........................................................................................................................N /A
emptions
x
E
.
View... Map
Denton CAD GIS
2010 Certified Values
Improvement Homesite Value
$0..
Improvement Non-Homesite Value
$522,292
......................2
Land Homesite Value
$0
.
. . Value
-Homesite..
. d Non.
Lan.
$•291,54,0
Agricultural Market Value
$0.
.
.
:
Market Value
Timber
.
. .
$
0
8 3 2
( _ ) $ 8 .1 3
Market Value
Total
,
Agricultural Use Reduction
Timber Use Reduction
$o
.
Appraised Value
$813,832
What's this?
Homestead Cap
$0
....................................._......$..13 , 8 $
8
Ase.s...ed,,...•ya~ 12e
2010 Improvements
Improvement 1287423
. . . . . . . . . . . . . . . . . . . . . . . .
State Code F2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
yp . . .
rov.. ement Te Commercial - PEERLESS MFG
Imp. . . .
I.......Metal....Siding
Exterior Wall
Foundation SLAB
http://www.dentoncad.coria/index.plip?option--com- content&task=view&id=100&Year=2... 1/10/2011
Denton Central Appraisal Distrif t - PropertyDetails
Roof Covering Metal
.
Ceiling
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ~ .
Dock
. . . . . . . . . . . . . . ond. i . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Ction Average
Sprinkler System
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
.
. .
. .
. . i.. ..ng.
. /Cooling
Heat. .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class Whafs this? Year Built Sq. Footage Type
840 0 6,058 sq. feet Main Area
Improvement 1287424
State Code
Improvement Type
Heating/Cooling
.
Sprinkler System
F2
Commercial -.COMMERCIAL
CHCA
- -
C22
eiling
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Dock . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Condition Class Whats this? Year Built Sq. Footage Type
840 0 15,542 sq. feet Main Area
Improvement 1287425
F
State Code
Im rovement Type Misc Imp - CONCRETE PAVING
_P
Condition - Average
Class What's this? Year Built Sq. Footage Type
CON 0 14,400 sq. feet Paving
2010 Certified Land Segments
Land Type Acres Sq. Ft. Appraised Value
Commercial 3.3464 145,770 sq. feet $291,540
Property History
Year
Improvement(s)
Land
Appraised
Assessed
2010
$522,292
$291,540
$813,832
$813,832
2009
$533,698
$291,540
$825,238
$825,238
2008
$497,595
$291,540
$789,135
$789,135
2007
$458,021
$291,540
$749,561
$749,561
2006
$425,364
$145,770
$571,154
$571,154
2005
$393,123
$145,770
$538,893
$538,893
2004
$377,920
$145,770
$523,690
$523,690
2003
$363,892
$145,770
$509,662
$509,662
2002
$363,892
$145,770
$509,662
$509,662
2001
$358,385
$145,770
$504,155
$504,155
2000
$331,830
$145,770
$477,600
$477,600
1999
$287,086
$145,770
$432,856
$432,856
1998
$287,086
$145,770
$432,856
$432,856
1997
$241,757
$145,770
$387,527
$387,527
1996
$293,957
$145,770
$439,727
$439,727
1995
$293,957
$145,770
$439,727
$439,727
1994
$293,957
$145,770
$439,727
$439,727
1993
$293,957
$145,770
$439,727
$439,727
1992
$293,957
$145,770
$439,727
$439,727
Page 2 of 3
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Denton Central Appraisal District - PropertyDetails
Agent History
Year
Agent ID
Agent Name
2011
152
Quintin
And
Associates
2010
152
Quintin
And
Associates
2009
152
Quintin
And
Associates
2008
152
Quintin
And
Associates
2007
152
Quintin
And
Associates
2006
152
Quintin
And
Associates
2005
152
Quintin
And
Associates
2004
152
Quintin
And
Associates
2003
152
Quintin
And
Associates
2002
152
Quintin And
Associates
2001
152
Quintin
And
Associates
Senate Bill 541
In 2005, Texas passed Senate Bill 541, which prohibits the Denton
Central Appraisal District and every other Appraisal District
in the State of Texas from making photographs and floorplans
of property available online. Exempted from the restriction will
be aerial photographs of five or more separately owned buildings.
You can read more about S.B. 541 here.
[ Back to Search ]
Page 3 of 3
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FIELD NOTES
BEING A TRACT OF LAND LOCATED IN THE ROBERT CHOWNING SURVEY,
ABSTRACT No. 266 AND THE O.S. BREWSTER SURVEY, ABSTRACT No. 56,
DENTON COUNTY, TEXAS, BEING A PORTION OF LOT 2, BLOCK A, RYAN
COMPANIES ADDITION, AN ADDITION TO THE CITY OF DENTON, TEXAS,
RECORDED IN INSTRUMENT No. 2010-96 OF THE PLAT RECORDS OF
DENTON COUNTY, TEXAS AND BEING A PORTION OF A TRACT OF LAND
DESCRIBED AS SECTION 8, TRACT ONE, AS RECORDED IN VOLUME 1796,
PAGE 601 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY,
TEXAS, AND BEING MORE PARTICULARLY DESCRIBED BY METES AND
BOUNDS AS FOLLOWS:
BEGINNING AT A 1/2" IRON ROD SET WITH A CAP STAMPED "WIER &
ASSOC INC" IN THE SOUTH LINE OF SAID LOT 2, BEING THE NORTHWEST
CORNER OF LOT 1, BLOCK B, CORBIN ROAD BUSINESS PARK, AN
ADDITION TO THE CITY OF DENTON, TEXAS, RECORDED IN CABINET X,
PAGE 90 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND THE
NORTHEAST CORNER OF DAKOTA LANE (A 73 FOOT WIDE RIGHT-OF-
WAY) AS RECORDED IN INSTRUMENT No. 2004-150435 OF THE REAL
PROPERTY RECORDS OF DENTON COUNTY, TEXAS;
THENCE N 00°06'43"W, 2.49 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE
TO THE LEFT;
THENCE NORTHWESTERLY, AN ARC LENGTH OF 165.88 FEET ALONG
SAID CURVE TO THE LEFT, HAVING A RADIUS OF 375.00 FEET, A
DELTA ANGLE OF 25°20'42" AND A CHORD BEARING OF N
12°33'38"W, 164.53 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 25°13'59"W, 28.60 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE
TO THE LEFT;
THENCE NORTHWESTERLY, AN ARC LENGTH OF 59.68 FEET ALONG SAID
CURVE TO THE LEFT, HAVING A RADIUS OF 429.50 FEET, A
DELTA ANGLE OF 07°57'43" AND A CHORD BEARING OF N
29°12'51"W, 59.64 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 33°11'42"W, 132.77 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC" AT THE BEGINNING OF A CURVE
TO THE RIGHT;
THENCE NORTHWESTERLY, AN ARC LENGTH OF 213.11 FEET ALONG
SAID CURVE TO THE RIGHT, HAVING A RADIUS OF 370.50 FEET,
A DELTA ANGLE OF 32°5724" AND A CHORD BEARING OF N
16°43'00"W, 210.19 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE N 00°14'18"W, 686.31 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC",
THENCE N 89°52'18"E, 1,624.50 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE S 00°43'24"W, 235.18 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE S 53°15'10"W, 642.49 FEET TO A 112" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC";
THENCE S 00°43'24"W, 550.00 FEET TO A 1/2" IRON ROD SET WITH A CAP
STAMPED "WIER & ASSOC INC", BEING IN THE SOUTH LINE OF
SAID LOT 2 AND SAID RAYZOR INVESTMENTS TRACT AND BEING
IN THE NORTH LINE OF A TRACT OF LAND DESCRIBED IN DEED
TO TEXAS INDUSTRIES, INC., AS RECORDED IN INSTRUMENT No.
1994-068137 OF THE REAL PROPERTY RECORDS OF DENTON
COUNTY, TEXAS;
THENCE ALONG THE SOUTH LINE OF SAID LOT 2 AND SAID RAYZOR
INVESTMENTS TRACT AS FOLLOWS:
S 89°34'16"W, ALONG THE NORTH LINE OF SAID TEXAS
INDUSTRIES TRACT, 151.92 FEET TO A 6"CEDAR FENCE POST
FOUND FOR ELL CORNER IN SAID SOUTH AND NORTH LINES;
S 04°37'27"W, ALONG THE WEST LINE OF SAID TEXAS
INDUSTRIES TRACT, 74.36 FEET TO A 3/8" IRON PIPE FOUND FOR
ELL CORNER IN SAID SOUTH LINE, BEING THE NORTHEAST
CORNER OF SAID LOT 1, BLOCK B, CORBIN ROAD BUSINESS
PARK;
N 89°53'17"W, ALONG THE NORTH LINE OF SAID LOT 1, CORBIN
ROAD BUSINESS PARK, 728.78 FEET TO THE PLACE OF
BEGINNING AND CONTAINING 34.858 ACRES (1,518,424 SQUARE
FEET) OF LAND, MORE OR LESS.
r~
f a
DISCLAIMER N
Various official and unofficial
Project-Map sources were used to
gather this information. Every
effort was made to ensure the
accuracy of thls data, however,
D !t ~ ~ 1 F F y ~•9~ 1A I no guarantee is given or implied
1~ as to the accuracy of said data.
s'
Exhibit C
Q.F: Types of jobs created. List the job titles and number of positions of each category that will be
employed at the facility. Provide average wage for each category.
Production Management-20; $65K
Professional/Administrative - 5; $50K
Human Resources - 2; $50K
Drafters -10; $60K
Project Management - 8; $80K
Senior/Director Level Management - 3; $125K
Manufacturing - 66; $45K
(Benefits equate to 29% of salary.)
Exhibit D
20. Justification for Tax Abatement Request:
The success of a business and the success of a city in which a business resides are very dependent upon
each other. These mutual benefits have been well documented and debated for decades. Peerless Mfg.
Co. (PMC) is committed to making a significant investment in expanding and consolidating our
manufacturing operations. The location we select for our investment is a critical decision and we are
fortunate that our existing facilities reside in more than one high quality city/region which allows us the
good fortune of having a choice when it comes to our final location.
The investment PMC is planning to make is estimated to be between $12 million and $16 million in
personal property, plant and equipment. The new facility being built in Denton will retain the
employment of 43 current employees at our existing Denton facility and will allow us to add up to xx
additional employees to the overall staff. The new employees will consist of additional skilled
production workers and the addition of drafting, design and Engineer employees.
A larger operating facility in Denton will also bring more visitors to the region each year. Our products
that we build are custom engineered to order. This type of custom fabrication brings many of our
customers to our facility during a project's life cycle. Our customers come from all over the world from
the electric power, natural gas, military and refining industries. These customers often stay for multiple
days, providing the city a sales tax revenue opportunity.
To access our new facility, the project will require that we build a new city street that will provide the
city with an additional north-south connector street between two major east-west streets. The new
street will provide additional access to the industrial development zone that should in turn help attract
more companies to the area. With the utilization of this new street, the city will reduce its response time
of emergency vehicles to other businesses in the area.
21. List additional abatement factors to be considered for this project as outlined on pages 3 and 4 of
the Tax Abatement Policy.
A. The project will create high-skilled, high paying jobs:
• Production Managers salaries range of $50k - $65k per year
• Senior Managers & professionals salaries range of $60k -$110k per year
Engineers $50k to $100k per year
• Drafting/ Designers $42k - $80k per year
• Project Managers $90k - $125k per year
• Welders $38k -$48k per year
Exhibit D
• Assemblers $32k-$40k per year
B. The project will involve significant relationship with one of the two universities in Denton.
Current and Past relationship with UNT:
• Dr. Dani Fadda has served on the LINT industry advisory committee for 2009 and 2010. Dr. Jay
Steil is on this committee now for 2011.
• Sean McMenamin- VP of Manufacturing, is on a the LINT Advisory Board
• We have had four senior design teams from the UNT Mechanical Engineering Technology
program perform their senior design projects with complete funding and advising by Peerless.
Each team worked in our R&D lab for two semesters (picture attached from the final
presentatiQn in 2007 at the UNT campus in Denton).
o E-1991 Pipe Vaporizer, 2007
o C-2233 Perforated Plate Modeling, 2007
o E-2000 Construction of LISP skids, 2008. This project won the ASME North Texas Section
"Best Design and Presentation-Senior Design class of 2008". The award was presented
to this team of UNT students at the ASME North Texas Section Awards Banquet.
o E-2011 Pocketed Cyclone, 2010
• We supported the DCBest (Denton County Boosting Engineering, Science and Technology)
Robotics competition in 2010 (http://www.eng.unt.edu/dcbest20lO/Sponsors.htm)
o Peerless gave Bronze Level donation of $550
o Individuals gave additional Best Friend donation of $140
• We have UNT graduates on our staff because of our relationship with UNT
o Mac Buzanowski, Francisco Cardenas, Joseph Figueroa, Tim Hinz, Vaughn Watson
The relationship with UNT will be enhanced further if the project is built in Denton. If the project goes to
another location the relationship with UNT will significantly deteriorate.
C. At least 25% of the new jobs created by the project will be filled by Denton residents.
• We would expect this to be the case
D. The project will provide knowledge-based jobs (at least 25% of jobs require college bachelor's degree
at entry level).
0 All Engineering, project management, professionals, Senior Managers and the Designers.
\\codad\departments\legal\our documents\ordinances\11\peerless manufacturing abatement ord.doc
EXHIBIT C
ORDINANCE NO. 2011-077
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A TAX ABATEMENT
AGREEMENT WITH PMFG, INC.; SETTING FORTH ALL THE REQUIRED TERMS OF
THE TAX ABATEMENT AGREEMENT IN ACCORDANCE WITH THE TERMS OF
CHAPTER 312 OF THE TEXAS TAX CODE; SETTING FORTH THE VARIOUS CONDI-
TIONS PRECEDENT TO PMFG, INC., A DELAWARE CORPORATION, RECEIVING THE
TAX ABATEMENT; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, on the 3rd day of May, 2011, after a public hearing duly held in accordance
with Tex. Tax Code §312.201 (the "Act"), the City Council passed Ordinance No. 2011- 09(0
(the "Ordinance") establishing Reinvestment Zone No. X, City of Denton, Texas as a commer-
cial/industrial reinvestment zone for tax abatement (the "Zone"), as authorized by Title 3, Chap-
ter 312, Subchapter B of the Act; and
WHEREAS, on the 14th day of February, 2011, PMFG, Inc., submitted an application for
tax abatement with various attachments to the City concerning the contemplated use of certain
property located within the Zone; and
WHEREAS, the City Council finds that the contemplated use of the premises and the
contemplated improvements to the premises, as indicated by PMFG, Inc., are consistent with
encouraging the development of the Zone in accordance with the purposes for its creation and
are in compliance with the Denton Tax Abatement Policy; and
WHEREAS, the City Council deems it in the public interest to enter into a Tax Abate-
ment Agreement with PMFG, Inc.; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings contained in the preamble to this Ordinance are true and cor-
rect and are adopted as a part of the whole Ordinance.
SECTION 2. The City Council finds and determines the following:
A. The contemplated use of the premises and the contemplated improvements of the
premises, as indicated by PMFG, Inc. are consistent with encouraging the develop-
ment of the Zone in accordance with the purposes of its creation and are in com-
pliance with the Denton Tax Abatement Policy.
B. The City Council finds that the improvements sought by PMFG, Inc. within the Zone
are feasible and practical and would be a benefit to the land to be included in the
Zone and to the City after the expiration of the Tax Abatement Agreement to be en-
tered into with PMFG, Inc.
Page 1 of 3
1lcodadldepartmentsl1ega1\our documentslordinances1111peerless manufacturing abatement ord.doc
C. The City Council finds that the Tax Abatement Agreement contains all the terms
which are mandatorily required to be included in any tax abatement agreement under
§312.205 of the Act.
D. In accordance with §312.2041 of the Act, the City Council finds that not later than the
date on which the City Council considered this ordinance, and not later than the se-
venth day before the date the City enters into a Tax Abatement Agreement with
PMFG, Inc., that the City Manager, through the Director of Economic Development,
who are hereby designated and authorized by the City Council to give such notice,
delivered to the presiding officer of the Denton Independent School District and Den-
ton County a written notice that the City intends to enter into this Tax Abatement
Agreement with PMFG, Inc., and that this notice included a copy of the proposed Tax
Abatement Agreement in substantially the form of the Tax Abatement Agreement at-
tached to this ordinance.
E. Before the passage of this Ordinance, the City Council held a public hearing in accor-
dance with §312.201 of the Act and created Reinvestment Zone No. X.
F. The City Council finds that the project within Reinvestment Zone No. X is a redeve-
lopment of an existing business as defined in the Tax Abatement Policy and requires
additional incentives to promote economic development that generally satisfies the
requirements of the policy and the City Council hereby authorizes a tax abatement of
a maximum of 40% on the increased valuation of the Taxable Real Property im-
provements and tangible personal property as more particularly described in the Tax
Abatement Agreement attached hereto and made a part hereof by reference as Exhibit
"A" (the "Tax Abatement Agreement").
SECTION 3. The Mayor, or in his absence, the Mayor Pro Tem, is hereby authorized to
execute the Tax Abatement Agreement with PMFG, Inc. in substantially the same form as the
Tax Abatement Agreement attached as Exhibit "A".
SECTION 4. The City Council hereby instructs and authorizes the City Manager to in-
spect, audit, and evaluate the progress of PMFG, Inc. to determine if it has met all of the condi-
tions of the attached Tax Abatement Agreement prior to the tax abatement going into effect.
SECTION 5. If any section, subsection, paragraph, sentence, clause, phrase, or word in
this ordinance, or application thereof to any person or circumstance is held invalid by any court
of competent jurisdiction, such holding shall not affect the validity of the remaining portions of
this Ordinance, the City Council of the City of Denton hereby declares that they would have
enacted such remaining portions despite any such validity.
SECTION 6. This Ordinance shall become effective immediately upon its passage and
approval.
Page 2 of 3
UodadWepartmentsUegallour documentslordinances1111peerless manufacturing abatement ord.doc
PASSED AND APPROVED this the day of n4L '2011.
MARKuA. 8 TSM-GVGIJ$, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY. QN /Ja vlb V-'.2
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
T -
Page 3 of 3
EXH I BIT D
PMFG, INC.
MINUTES OF A REGULAR MEETING
OF THE BOARD OF DIRECTORS
September 9, 2010
A regular meeting of the Board of Directors (the "Board") of P1b1FG, Inc., a
Delaware corporation (the "Company"), was duly convened and held beginning at 10:00
a.m. CST on September 9, 2010 at the Company's headquarters. Present at the meeting
were Sherrill Stone, Peter J. Burlage, Robert McCashin, Howard G. Westerman Jr.,
Kenneth Hanks and Clay Mulford. In attendance at the invitation of the Board were
Henry G. Schopfer, Chief Financial Officer, Warren Hayslip, Chief Operating Officer
and Melissa G. Beare, Gcn.eral Counsel and Secretary of the Company.
Mr. Stone, Chairman of the Board, served as Chairman of the meeting and Ms.
Beare served as Secretary of the meeting. The Chairman called the meeting to order and
announced that a quorum was duly constituted and present and that the meeting had been
duly called and convened. The Chairman confirmed that each of the Board members had
received the materials provided in advance of the meeting.
Approval of Minutes of the July 1, 2010 Meeting
The Chairman stated that the first order of business was to approve the minutes of
the July 1, 2010 regular meeting of the Board, a copy of which had previously been
provided to each member of the Board. Following a brief discussion, upon a motion duly
made and seconded, the following resolution was unanimously adopted by the members
of the Board:
RESOLVED, that the minutes of the July 1, 2010 meeting be accepted and
approved.
Audit Committee Report
The Chairman of the Audit Committee, Mr. Hanks; gave a brief report about the
discussions held by the Audit Committee the previous day on September 8, 2010, which
included discussions and approval by the Audit Committee of annual report filed on
Form 10-K for the 2010 fiscal year. The Board concluded that as all members of the
Board were present at the Audit Committee meeting the previous day, no further
discussion was required.
Nominatiniz & Corporate Governance Committee Report
RESOLVED, that Company through its authorized officers, Mr. Burlage and Mr
Schopfer, is hereby authorized to (i) modernize and expand the Company's
manufacturing facilities, (ii) seek funding for the expansion plan from a banking facility,
(iii) purchase and acquire real estate in Denton County, Texas for a new facility, (iv) to
engage a contractor to construct a new building and facility and (v) take any such action
as the authorized officers deem to be necessary, appropriate or desirable to complete the
manufacturing facility expansion plan.
Executive Session
Adiournment
There being no further business and upon a motion duly made and seconded, the
meeting was adjourned at approximately 2:30 p.m. CST.
Respectfully submitted;
Melissa G. Beare, Secretary
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