2012-3661lcodad\departments\legallour documentslordinances1121ecodevo westpark tirz.doc
o�rNANCE rro. 2012-366
AN ORDINANCE DESIGNATING AND DESCRIBING THE BOUNDARIES OF A TAX
1NCREMENT REINVESTMENT ZONE TWO FOR AN 1NDUSTRIAL DISTRICT OF
DENTON, TEXAS; ESTABLISHING THE DURATION OF THE ZONE; ESTABLISHING A
TAX 1NCREMENT FUND; ESTABLISHING A BOARD OF DIRECTORS FOR THE TAX
INCREMENT 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 an industrial area within 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 the public comments on the
creation of the proposed TaY Increment Reinvestment Zone and its benefits to the City and the
property in the proposed Tax Increment 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 18h day of December 2012, at 6:30 p.m., in 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 Reinvestment
Zone ,the duration of the Tax Increment Reinvestment Zone, the boundaries of the proposed Tax
Increment 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 Reinvestment Zone, the concept of tax increment financing and
the appointment of a board of directors of the proposed Tax Increment Reinvestment Zone; and
WHEREAS, all owners of property located within the proposed T� Increment
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 Reinvestment Zone andlor the inclusion of their property in such; Tax Increment
Reinvestment Zone; and
WHEREAS, the proponents of the Tax Increment Reinvestment Zone offered evidence,
in favor of all of the foregoing matters relating to the creation of the Tax Increment
Reinvestment Zone, and opponents of the Tax Increment Reinvestment Zone were given the
opportunity to appear to contest creation of the zone, after which the hearing was closed; NOW,
THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION l. 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
b) Creation of the proposed Tax Increment Reinvestment Zone with
boundaries as described in E�ibits "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 T� Increment Reinvestment Zone.
c) The Tax Increment 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. The area has a predominance of defective or inadequate
sidewalks or street layout; and/or
b. Predominately open or undeveloped and, because of obsolete
platting, deterioration of structures or site improvements, or
other factors.
(iii) The proposed project plan includes the use of land in the zone with
access to an industrial rail spur that serves the park.
a) That 30 percent or less of the property in the proposed TaY 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.
b) The total appraised value of a11 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 Tax Increment Reinvestment
Zones within the City, according to the most recent appraisal rolls of the
City, does not exceed 25 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.
c) The improvements in the Tax Increment Reinvestment Zone will
significantly enhance the value of all taxable real property in the T�
Increment Financing Reinvestment Zone.
Ordinance Designatine TIRZ
CiTy of Denton, Texas
d) The development or redevelopment of the property in the proposed Tax
Increment Financing Reinvestment Zone will not occur solely through
private investment in the reasonable foreseeable future.
SECTION 3. The City hereby creates a Tax Increment 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 Reinvestment Zone shall hereafter be identified as Tax Increment
Reinvestment Zone Number Two, City of Denton, Texas (the "Zone" or "Reinvestment Zone").
SECTION 4. There is hereby established a board of directors for the Zone that shall
consist of eleven members. The board of directors of Tax Increment Reinvestment Zone Number
Two shall be appointed as follows:
a) Nine of the eleven member board shall be appointed by the City Council
as provided here 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 body of
Denton County, which levies taxes on real property in Tax Increment
Reinvestment Zone Number Two, has the right to appoint a single board
member. Rayzor Investments, LLP the "Developer" has the right to appoint a
single board member.
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 5 of the board members serving an initial tern 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 malce recommendations to the City Council
concerning the administration of the Zone. It shall prepare and adopt a project
plan and Tax Increment 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 proj ect plan and financing plan for the Tax Increment
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 sha11 take effect immediately upon passage of this ordinance, and
the termination of the Zone shall occur on December 31, 2036, 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 value within the Zone is established as of
January 2012.
Ordinance Designating TIl2Z
City of Denton, Texas
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, 2012, the
year in which the Zone was designated a Tax Increment Reinvestment Zone.
SECTION 7. Pursuant to Section 311.013(1) of the Tax Code, the City herby 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:
Jurisdiction
City of Denton
Denton County
Years
1-10
11-25
1-10
11-25
2012 Tax Rate
$/$100 Value
0.6897500
0.7197500
0.2828670
0.3128670
% of Tax Rate
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SECTION 8. There is hereby created and established a Tax Increment Fund for the Zone
which may be divided into such subaccounts 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
subaccounts are to be maintained in an account at the City Treasurer's affiliated depository bank
of 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
subaccount 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
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.
PASSED AND APPROVED this 18th day of December 2012.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
MARK A. B OL� HS, MAYOR
Ordinance Desi�nating TIRZ
Citv of Denton, Texas
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY:
Ordinance DesignatinR TIRZ
City of Denton, Texas
EXHIBIT A
CITY OF DENTON
TAX INCREMENT REINVESTMENT ZONE No. 2
BOUNDARY DESCRIPTION
TRACT No.l
BEGINNING at the southwest corner of the 9.27 acre T. Toby, Tract 4 and the north right-of-
way line of Airport Road, the POINT OF BEGINNING;
THENCE, north along the west boundary of the 9.27 acre T. Toby, Tract 4 to its northwest
corner and the southwest boundary of the 41.629 acre T. Toby, Tract 3(Denton Municipal
Airport);
THENCE, northwest along the southwest boundary of the 41.629 acre T. Toby, Tract 3(Denton
Municipal Airport) to its southwest corner and the east right-of-way of Sabre Road;
THENCE, northwesterly along the east right-of-way of Sabre Road and the westerly boundary of
the 41.629 acre T. Toby, Tract 3(Denton Municipal Airport) and the 66.946 acre T. Toby, Tract
2 to the northwest corner of the 66.946 acre T. Toby, Tract 2;
THENCE, east along the north boundary of the 66.946 acre T. Toby, Tract 2 to the southwest
corner of the 148.5803 acre J. Scott, Tract l;
THENCE, north along the west boundary of the 148.5803 acre J. Scott, Tract 1 to its northwest
corner and the south right-of-way of Jim Christal Road;
THENCE, east along the north boundary of the 148.5803 acre J. Scott, Tract 1 to its northeast
corner and the west right-of-way of Western Blvd.;
THENCE, due east across Western Blvd. to its east right-of-way and the northwest corner of the
20.7207 acre J. Bacon, Tract 1;
THENCE, east along the south right-of-way of Jim Christal Road and the north boundaries of the
20.7207 acre J. Bacon, Tract 1 and the 173.055 acre West Park Addition, Phase 2, Block A, Lot
2a to the southwest corner of the 24.9953 acre B.b.b, Tract 15-17;
THENCE, north along the west boundaries of the 24.9953 acre B.b.b., Tract 15-17, the 39.999
acre B.b.b., Tract 18 and the 10 acre B.b.b, Tract 21 a to the northwest corner of the 10 acre
B.b.b, Tract 21 a;
THENCE, east and south along the north and east boundary of the 10 acre B.b.b, Tract 21 a to its
southeast corner and the north boundary of the 39.999 acre B.b.b, Tract 18;
THENCE, east along the north boundary of the 39.999 acre B.b.b., Tract 18 to its northeast
corner and the west boundary of the 43,3069 acre B.b.b, Tract 12-14;
THENCE, north along the west boundaries of the 43.3069 acre B.b.b, Tract 12-14 and the
19.5738 acre B.b.b, Tract 11 to the northwest corner of the 19.5738 acre B.b.b, Tract 11 and the
south right-of-way of US Highway 380;
THENCE, east along the north boundary of the 19.5738 acre B.b.b., Tract 11 and the south right-
of-way of US Highway 380 to the northeast corner of the 19.5738 acre B.b.b, Tract 11;
THENCE, southeasterly along the east boundaries of the 19.5738 acre B.b.b, Tract 11 and the
43.3069 acre B.b.b, Tract 12-14, continuing westerly along the south boundary of the 43.3069
acre B.b.b, Tract 12-14 to its southwest corner and the southeast corner of the 39.999 acre B.b.b,
Tract 18;
THENCE; west along the south boundary of the 39.999 acre B.b.b, Tract 18 to the northeast
corner of the 24.9953 acre B.b.b., Tract 15-17;
THENCE, south along the east boundary of the 24.9953 acre B.b.b., Tract 15-17 to its southeast
corner and the north right-of-way of Jim Christal Road;
THENCE, easterly along the north right-of-way of Jim Christal Road to the northwest corner of
the 16.3051 acre J. Perry, Tract la;
THENCE, northeasterly, south, east, north and east along the north boundary of the 16.3051 acre
J. Perry, Tract la to its northeast corner;
Thence, south along the east boundary of the 16.3051 acre J. Perry, Tract la to the northwest
corner of the 18.3427 acre E. Puchalshi, Tract 295;
THENCE, east along the north boundary of the 18.3427 acre E. Puchalski, Tract 295 to its
northeast corner;
THENCE, southeasterly along the east boundaries of the 18.3427 acre E. Puchalski, Tract 295
and the 10.347 acre E. Puchalski, Tract 295a to its southeast corner and the northeast corner of
the 31.0 acre E. Puchalski, Tract 296;
THENCE, southeasterly, west and south along the east boundary of the 31.0 acre E. Puchalski,
Tract 296 to its southeast corner and the north boundary of the north part of the 31.305 acre E.
Puchalski, Tracts 527, 528, and 529;
THENCE, east along the north boundary of the north part of the 31.305 acre E. Puchalski, Tracts
527, 528, and 529 to its northeast corner;
Thence, southwesterly along the east boundary and west along the south boundary of the north
part of the 31.305 acre E. Puchalski, Tracts 527, 528, and 529 to the east right-of-way of
Precision Road;
2
THENCE, west across Precision Road to its west right-of-way and the southeast corner of the
173.055 acre West Park Addition, Phase 2, Block A, Lot 2a;
THENCE, west along the south boundary of the 173.055 acre West Parlc Addition, Phase 2,
Block A, Lot 2a to the northeast corner of the 5.922 acre West Park Addition, Phase 2, Blocic A,
Lot 3;
THENCE, south and west along the east and south boundary of the 5,922 acre West Parlc
Addition, Phase 2, Blocic A, Lot 3, continuing west along the south boundary of the 6.889 acre
R. D. Wells Interchange, Block 1, Lot 1(City of Denton) to the east boundary of the 173.055
acre West Park Addition, Phase 2, Block A, Lot 2a;
THENCE, south along the east boundary of the 173.055 acre West Park Addition, Phase 2,
Block A, Lot 2a to its southeast corner and the north right-of-way of Airport Road;
THENCE, west along the north right-of-way of Airport Road and the south boundary of the
173.055 acre West Park Addition, Phase 2, Block A, Lot 2a to its southwest corner and the east
right-of-way of Western Blvd.;
THENCE, west across Western Blvd. to its west right-of-way and the southeast corner of the
66.946 acre T. Toby, Tract 2;
THENCE, west along the north right-of-way of Airport Road and the south boundaries of the
66.946 acre T. Toby, Tract 2, the 41.629 acre T. Toby, Tract 3(Denton Municipal Airport) and
the 9.27 acre T. Toby, Tract 4 and the POINT OF BEGINNING.
TRACT No. 2
The entire south part of the 31.305 acre E. Puchalslci; Tract 527, 528, and 529.
TRACT No.l and TRACT No. 2 contain a total of approximately 848.8 acres of which
approximately 48.5 acres are municipally owned.
3
Exh i bit B: Westpark TI RZ
This map is a graphic representation prepared by the City of
Denton and is intended for use only as a reference. Data
depicted is not guaranteed for accuracy and may be subject
to re�ision at any time without notification. A Registered
Surveyor for the State of Texas was not consulted. For
Survey level accuracy, supervision and certification of the
produced data by a Registered Professional Land Surveyor
for the State of Texas would need to be perFormed.
0 412.5825 1,650 2,475 3,300
Feet
�� i iK� �sounaary
' Property Description
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Cammercial Vacant Lot � �
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Real Farmhouse