2013-272s: \legal \our documents \ordinances \13 \tetra pak reinvestment zone ordinance.doe
ORDINANCE NO. 2013 "272
AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AR-
EA WITHIN THE CITY LIMITS OF DENTON AS TETRA PAK MATERIALS, LP REIN-
VESTMENT ZONE NO. XI FOR COMMERCIAL /INDUSTRIAL TAX ABATEMENT; ES-
TABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN
ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAIN-
ING OTHER MATTERS RELATING THERETO; PROVIDING A SEVERABILITY
CLAUSE; PROVIDING FOR REPEAL; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton, Texas ( "City" or "Municipality ")
desires to promote the development or redevelopment of a certain contiguous geographic area
within its corporate city limits and its jurisdiction by the creation of a reinvestment zone for
commercial /industrial tax abatement, as authorized by Tex. Tax Code Ch. 312 (referred to as the
"Property Redevelopment and Tax Abatement Act" or the "Act "); and
WHEREAS, an industry or business known as Tetra Pak Materials, Limited Partnership
has requested tax abatement to relocate their headquarters to Denton and expand their current
facility located at 3300 Airport Road, in Denton, Texas and build improvements within the area
to be designated as Reinvestment Zone XI; and
WHEREAS, the City Council desires to create a proper economic and social environment
to induce investment of private resources and productive business enterprises in this area of the
City, which meets the criteria established under §312.202 of the Act, and to expand primary em-
ployment or to attract major investment; and
WHEREAS, a public hearing before the City Council was held at or after 6:30 p.m. on
October 1, 2013, in the City Council Chambers of the City of Denton at 215 East McKinney
Street in the City of Denton, such date being at least seven days after the date of publication of
notice of such public hearing and the receipt of written notices of such public hearing by the pre-
siding officer of each taxing unit that includes in its boundaries real property that is to be includ-
ed in the proposed reinvestment zone, in accordance with §312.201 of the Act; and
WHEREAS, such public hearing was held before the consideration and adoption of this
ordinance; and
WHEREAS, the City, at that hearing, invited any interested citizen or his representative
to appear and offer testimony or evidence for or against the creation of the reinvestment zone,
the boundaries of the proposed reinvestment zone, whether all or part of the territory described in
the notice calling the public hearing should be included in the proposed reinvestment zone, and
the concept of tax abatement; and
WHEREAS, in accordance with such public notice, all owners of property within the
proposed reinvestment zone and all other taxing units and other interested persons were given the
opportunity at such public hearing to protest the creation of the proposed reinvestment zone or
the inclusion of their property in such reinvestment zone; and
WHEREAS, on the 17th day of April, 2012, on or before the holding of the above -
mentioned public hearing, the City Council passed Resolution No. 2012 -007 establishing guide-
lines and criteria governing tax abatement agreements and stating that the City of Denton elects
to become eligible to participate in tax abatement, in accordance with Tex. Tax Code §312.002
and such Policy is now in effect and was in effect prior to the public hearing; and
WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of-
fered evidence in favor and against all matters relating to the creation of the reinvestment zone,
and, after hearing this testimony and evidence, the City Council deems it in the public interest to
create this reinvestment zone; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The facts and recitations contained in the preamble of this ordinance are
hereby found an —
d declared to be true and correct.
SECTION 2. For the purposes of this ordinance, the following terms and phrases shall
have the following meanings ascribed to them:
A. Improvements — Improvements shall include, for the purpose of establishing eligibility under
the Act, any activity at the location, including, but not limited to, new construction, recon-
struction, renovation and repairs.
B. Taxable Real Property — Taxable real property shall be as defined in the Texas Property Tax
Code and shall not include personal property as defined in the Code.
C. Tangible Personal Property — Tangible Personal Property shall be defined as business per-
sonal property, excluding inventory and supplies.
D. Base Year — The base year for determining increased value shall be the taxable real property
value assessed the year in which the Tax Abatement Agreement is executed.
SECTION 3, The City, through its City Council, after conducting the above - mentioned
public hearing and having heard such evidence and testimony, makes the following findings and
determinations based on the evidence and testimony presented to it:
A. The public hearing on the adoption of the reinvestment zone has been properly called, held,
and conducted in accordance with §312.201 of the Act and all other applicable laws, and that
notice of such hearing has been published as required by law and delivered to the presiding
officer of the governing body of each taxing unit that includes in its boundaries real property
that is to be included in the proposed reinvestment zone as required by law; and
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B. Prior to holding the public hearing, the City has adopted, by resolution, the guidelines and
criteria governing tax abatement agreements by adopting a City of Denton Tax Abatement
Policy, as amended, and the City has elected to participate in tax abatement; and
C. The City had jurisdiction to hold and conduct the public hearing on the creation of the pro-
posed the reinvestment zone, pursuant to chapter 312 of the Act; and
D. The boundaries of the reinvestment zone shall be the area described in the metes and bounds
description attached hereto as Exhibit "A" and as shown on the diagram as the outlined area
attached hereto as Exhibit "B" and being approximately 52.554 acres on State F.M. Highway
1515, just north of Airport Road and east of Western Boulevard in the corporate limits of the
City of Denton, Texas, such Exhibits "A" and "B" being incorporated and made a part of this
ordinance as if written word for word herein; and
E. The creation of the reinvestment zone for commercial /industrial tax abatement with the im-
provements expected to be developed by Tetra Pak Materials, Limited Partnership would be
of benefit to the City and to the land to be included in the zone, with the boundaries as de-
scribed in Exhibit "A," after the expiration of the tax abatement agreement entered into under
§312.204 of the Act, and the improvements sought are feasible and practical; and
F. The reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria
for the creation of a reinvestment zone, as set forth in §312.202 of the Act, since it is, "rea-
sonably likely, as a result of the designation, to contribute to the retention or expansion of
primary employment or to attract major investment in the zone that would be a benefit to the
property and that would contribute to the economic development of the Municipality;" and
G. The reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria
for the creation of a reinvestment zone as set forth in the Denton Policy for Tax Abatement
and the expected improvements in the boundaries of the zone are expected to enhance signif-
icantly the value of all taxable real property and tangible personal property located within the
reinvestment zone.
SECTION 4. Pursuant to §312.201 of the Act, the City, through its City Council, hereby
creates a reinvestment zone for commercial /industrial tax abatement encompassing only the area
described by the metes and bounds description in Exhibit "A" attached hereto and as shown on
Exhibit "B" attached hereto and such reinvestment zone is hereby designated and shall hereinaf-
ter be designated as Reinvestment Zone No. XI, City of Denton, Texas.
SECTION 5. Reinvestment Zone No. XI shall be effective as of November 1, 2013, and
shall terminate five years from that date, on October 31, 2018, unless extended for an additional
five -year term or unless earlier terminated by action of the City Council in accordance with
§312.203 of the Act.
SECTION 6. To be eligible for tax abatement, a commercial /industrial project shall:
A. Be located wholly within the zone established herein;
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B. Meet the requirements of the Denton Tax Abatement Policy;
C. Not include property that is owned or leased by a member of the City Council of the City of
Denton, or by a member of the Planning & Zoning Commission;
D. Conform to the requirements of the City's zoning ordinance and all other applicable laws and
regulations; and
E. Have and maintain all land located within the designated zone, appraised at market value for
tax purposes.
SECTION 7. Written tax abatement agreements with property owners located within the
zone shall provide the terms regarding duration of exemption and share of taxable real property
and /or tangible personal property located on the real property for taxation as approved hereunder,
as shown below:
A. Duration of exemption from two years to ten years depending on the value of the structures
and real property in accordance with the Denton Tax Abatement Policy, beginning with and
including January 1, 2014; and
B. Share of taxes abated - in the maximum of 65% of taxes on the total value of appraised real
property improvements and tangible personal property, excluding inventory and supplies, as
more particularly described in the Tax Abatement Agreement between the City of Denton
and Tetra Pak Materials, Limited Partnership, which are added, provided, however, nothing
herein shall prevent any other taxing unit that includes in its boundaries real property that is
included in the reinvestment zone from entering into a tax abatement agreement with a dif-
ferent share of taxes abated on the total value of appraised improvements which are added, in
accordance with the requirements of chapter 312 of the Act.
SECTION 8. Any written agreements authorized under this ordinance must include pro-
visions for:
A. Listing the kind, number, and location of all proposed improvements of the property;
B. Access to and authorizing the inspection of the property by municipal employees to ensure
that the improvements or repairs are made in accordance with the specifications and condi-
tions of the agreements;
C. Limiting the uses of the property, consistent with the general purpose of encouraging devel-
opment or redevelopment of the zone during the period that property tax exemptions are in
effect;
D. Recapturing of property tax revenues lost as a result of the agreement if the owner of the
property fails to make the improvements or repairs as provided by the agreement;
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E. Containing each term agreed to by the owner of the property;
F. Requiring the owner of the property to certify annually to the governing body of each taxing
unit that the owner is in compliance with each applicable term of the agreement;
G. Providing that the governing body of the municipality may cancel or modify the agreement if
the property owner fails to comply with the agreement;
H. Contain any additional terms and conditions which the City Council deems are necessary, in
accordance with §312.205 of the Act, and that are negotiated with the owner of the property.
Provided, however, nothing herein shall prevent other taxing units, who include in their
boundaries real property within the reinvestment zone, from negotiating terms and conditions
that are different from any municipal tax abatement agreement, so long as the mandatory
terms and conditions required by §312.205 of the Act are included.
SECTION 9. The City Council further directs and designates the City Manager and the
Director of Economic Development as liaisons for communication with regard to all matters per-
taining to the Zone, including, without limitation, the development of the amendment of the cur-
rent Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agreements
with industries, commercial enterprises, and other businesses eligible for tax abatement under the
Tax Abatement Policy and for communication with other taxing entities and the Economic De-
velopment Partnership Board.
SECTION 10. All ordinances or parts of ordinances in force when the provisions of this
ordinance became effective which are inconsistent or in conflict with the terms or provisions
contained in this ordinance are hereby repealed to the extent of any such conflict.
SECTION 11. If any section, paragraph, clause, or provision in this ordinance, or appli-
cation thereof to any person or circumstance is held invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause, or provision shall not affect any of the re-
maining portions of this ordinance.
SECTION 12. It is hereby found, determined, and declared that a sufficient written no-
tice of the date, place, hour, and subject of the meeting of the City Council at which this ordi-
nance was adopted was posted and placed and conveniently accessible at all times to the general
public at the City Hall of the City for the time required by law, preceding this meeting, as re-
quired by the Open Meetings Act, Tex. Gov't Code Ch. 551, and that this meeting was open to
the public as required by law at all times during which this ordinance and the subject matter
thereof has been discussed, considered, and formally acted upon. The City Council further rati-
fies, approves, and confirms such written notice and contents posting thereof. The City Council
further finds that a quorum was present at such meeting.
dal'C'1 "1ON 13. The contents of the notice of public hearing, which hearing was held be-
fore the City Council and before the passage of this ordinance on October 1, 2013, the publica-
tion of said notice is hereby ratified, approved, and confirmed.
Page 5 of 8
SECTION 14. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of'��,�
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:'
I Ak
APPROVED AS TO LEGAL FORM:
ANITA BURGESS, CITY ATTORNEY
BY
.......... . ...
M A RO (J QSµ, MA
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ALL OF THAT CERTAIN TRACT OR PARCEL OF LAND SITUATED IN THE THOMAS
TOBY SURVEY, ABSTRACT NUMBER 1285, AND THE JOHN DAVIS SURVEY, AB-
STRACT NUMBER 326, BOTH IN THE CITY OF DENTON, DENTON COUNTY, TEXAS,
AND BEING ALL OF LOT 1, BLOCK 1, OF WESTPARK ADDITION, ACCORDING TO
THE PLAT THEREOF RECORDED IN CABINET C, PAGE 127, PLAT RECORDS OF
DENTON COUNTY, TEXAS, AND BEING MORE PARTICULARLY DESCRIBED AS
FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF THE HEREIN DESCRIBED TRACT OF
LAND AT A CAPPED IRON ROD FOUND FOR CORNER AT THE SOUTHWEST COR-
NER OF SAID LOT 1, COMMON TO THE SOUTHEAST CORNER OF LOT 2A, BLOCK A,
OF SAID WESTPARK ADDITION, PHASE 2, ACCORDING TO THE PLAT THEREOF
RECORDED IN COUNTY CLERK'S FILE NUMBER 2012 -116, SAID PLAT RECORDS,
AND IN THE NORTH RIGHT -OF -WAY LINE OF FARM TO MARKET ROAD NUMBER
1515 (AIRPORT ROAD);
THENCE NORTH O1 DEGREES 00 MINUTES 41 SECONDS EAST WITH THE WEST LINE
OF SAID LOT 1 AND AN EAST LINE OF SAID LOT 2A, A DISTANCE OF 2082.39 FEET
TO A '/2 ", IRON ROD FOUND FOR CORNER AT THE NORTHWEST CORNER OF SAID
LOT 1, COMMON TO A RE- ENTRANT CORNER IN THE EAST LINE OF SAID LOT 2A;
THENCE SOUTH 88 DEGREES 53 MINUTES 27 SECONDS EAST WITH THE NORTH
LINE OF SAID LOT 1, AND A SOUTH LINE OF SAID LOT 2A PART OF THE WAY, AND
PASSING EN ROUTE AT A DISTANCE OF 77.28 FEET NEAR A ' /z ", IRON ROD FOUND
FOR WITNESS AT THE SOUTHWEST CORNER OF LOT 1, BLOCK 1, OF R.D. WELCH
INTERCHANGE ADDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN
CABINET Y, PAGE 619, SAID PLAT RECORDS, AND CONTINUING ON SAID COURSE
WITH THE SOUTH LINE OF SAID LOT 1 OF R. D. WELCH INTERCHANGE ADDITION,
AND PASSING EN ROUTE AT A DISTANCE OF 595.61 FEET A PK NAIL FOUND IN
CONCRETE AT THE SOUTHEAST CORNER OF SAID LOT 1 OF R.D. WELCH INTER-
CHANGE ADDITION, COMMON TO THE SOUTHWEST CORNER OF LOT 3 OF SAID
WESTPARK ADDITION, ACCORDING TO THE PLAT THEREOF RECORDED IN COUN-
TY CLERK'S FILE NO. 2012 -116, SAID PLAT RECORDS, AND THAT BEARS NORTH 18
DEGREES 01 MINUTES 31 SECONDS WEST A DISTANCE OF 11.37 FEET FROM A
CAPPED '/2 ", IRON ROD FOUND FOR WITNESS, AND CONTINUING ON SAID COURSE
WITH THE SOUTH LINE OF SAID LOT 3, A TOTAL DISTANCE OF 1102.76 FEET TO A
SQUARE ' /z ", IRON ROD FOUND FOR CORNER AT THE NORTHEAST CORNER OF
SAID LOT 1, COMMON TO THE SOUTHEAST CORNER OF SAID LOT 3, AND IN THE
WEST LINE OF LOT 1 -R, BLOCK A, OF PETERBILT ADDITION, ACCORDING TO THE
PLAT THEREOF RECORDED IN CABINET U, PAGE 369, SAID PLAT RECORDS;
THENCE SOUTH 01 DEGREES 05 MINUTES 16 SECONDS WEST WITH THE EAST LINE
OF SAID LOT 1 AND THE WEST LINE OF SAID LOT 1 -R, A DISTANCE OF 2074.68
FEET TO A '' /z" IRON ROD FOUND FOR CORNER AT THE SOUTHEAST CORNER OF
Page 7 of 8
SAID LOT 1, COMMON TO THE SOUTHWEST CORNER OF SAID LOT 1 -R, AND IN THE
NORTH RIGHT -OF -WAY LINE OF SAID FARM TO MARKET ROAD NUMBER 1515;
THENCE NORTH 89 DEGREES 17 MINUTES 32 SECONDS WEST WITH THE SOUTH
LINE OF SAID LOT 1 AND WITH THE NORTH RIGHT -OF -WAY LINE OF SAID FARM
TO MARKET ROAD NUMBER 1515, A DISTANCE OF 1100.00 FEET TO THE PLACE OF
BEGINNING AND ENCLOSING 52.554 ACRES OF LAND MORE OR LESS.
Page 8 of 8
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