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2016-086ORDINANCE NO, ZO1C-�g6 AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AR- EA WITHIN THE CITY LIMITS OF DENTON AS WEST GATE BUSINESS PARK (WGBP INVESTMENTS, LTD.) REINVESTMENT ZONE NO. XIII FOR COMMER- CIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAINING 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 West Gate Business Park (WGBP Invest- ments), a Texas Limited Company has requested tax abatement to expand their current facility located at 1500 North Western Boulevard, in Denton, Texas and build improvements within the area to be designated as Reinvestment Zone XIII; 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 scheduled for 6;30 p.m. on March 1, 2016, 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 presiding officer of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone, in accordance with §312.201 of the Act; and WHEREAS, the City Council opened the public hearing, invited the public to testify and continued the public hearing until the City Council's March 22, 2016 Regular Meeting; and WHEREAS, on March 22, 2016, the City Council continued the public hearing; 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 repre- sentative 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 de- scribed 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 6th day of May, 2014, on or before the holding of the above- mentioned public hearing, the City Council passed Resolution No. 2014-016 establishing guide- lines and criteria governing tax abatement and incentive agreements and stating that the City of Denton elects to become eligible to participate in tax abatement, in accordance with Tex. Tax Code §312.002and 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 and 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 deiined 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. 2 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 B. 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 predominately open or undeveloped and, because of obsolete platting, deteriora- tion of structures or site improvements, or other factors. C. 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 and Incentive Policy, as amended, and the City has elected to participate in tax abatement; and D. 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 E. The boundaries of the reinvestment zone shall be the area described in the plat description attached hereto as Exhibit "A" and as shown on the plat attached hereto as Exhibit "B" and being approximately 22 acres situated on the South of West University Drive along 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 F. The creation of the reinvestment zone for commercial/industrial tax abatement with the im- provements expected to be developed by WGBP Investments would be of benefit to the City and to the land to be included in the zone, with the boundaries as described 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 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 §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 3 H. 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 plat description in Exhibit "A" attached hereto and as shown on Exhibit "B" attached hereto and such reinvestment zone is hereby designated and shall hereinafter be desig- nated as Reinvestment Zone No. XIII, City of Denton, Texas, SECTION 5. Reinvestment Zone No. XIII shall be effective as of April l, 2016, and shall terminate ten years from that date, on March 1, 2026, 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; B. Meet the requirements of the Denton Tax Abatement and Incentive 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 and Incentive Policy, begin- ning with and including January 1, 2016; and B. Share of taxes abated — from 60% to a maximum of 75% of taxes on the total value of ap- praised real property improvements and tangible personal property, excluding inventory and supplies, as more particularly described in the Tax Abatement Agreement between the City 0 of Denton and WGBP Investments, 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 different 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; 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 Development Services 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 and Incentive Policy if necessary, the negotiation of tax abatement agreements with industries, commercial enterprises, and other businesses eligible for tax abate- ment under the Tax Abatement and Incentive Policy and for communication with other taxing entities and the Economic Development Partnership Board. ����"I'!Q)�lwwl_0. 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. SECTION 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 March 1, 2016, the publication of said notice is hereby ratified, approved, and confirmed. SECTION 14. This ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the ��;�L_ day of _�` ���.�:�� .,m..____ ., 2016. ,� �� ,� � ���µµ . .,. � ...._,,� ___ _ _ ..... ....... --- . � CHRI�� �� �ATTS, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY � �, '� , �, � BY: �� �MM� �� _ _ -� � � ��.:.:� � � __ ___ ��'6�1��.� l�y� AS ����"��� LEGAL FORM: ANITA BURGESS, CITY ATTORNEY � �� , °'� �,�m� � ,�" °� �" �� BY: �� " �4 � �, �" �µ � , � �� � �µ�'� � EXHIBIT A REINVESTMENT ZONE XIII WILL BE COMPOSED OF APPROXIMATELY 22.48 ACRES OF LAND OUT OF THE WILLIAM BRYAN SURVEY, ABSTRACT NO. 148, DENTON COUNTY, TEXAS. WESTERN GATE BUSINESS PARK ADDITION IS GENERALLY LOCATED SOUTH OF WEST UNIVERSITY DRIVE ALONG WESTERN BOULEVARD. 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