2017-091SALega1\0ur Docqments\0rdinances\17\200 E McKinney.docx
ORDINANCE NO._ 2017-091
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS,
APPROVING A GRANT APPLICATION FROM SETH MORGAN, REPRESENTING
DENTON COUNTY BREWING COMPANY, FROM THE DOWNTOWN REINVESTMENT
GRANT PROGRAM NOT TO EXCEED $25,000; AND PROVIDING FOR AN EFFECTIVE
R.
WHEREAS, on April 3, 2007, the City Council approved a Downtown Incentive
Reimbursement Program by Ordinance No. 2007-072; and
WHEREAS, on December 6, 2011, the City Council approved changes to the Downtown
Reinvestment Grant Program by Ordinance No. 2012-001; and
WHEREAS, Seth Morgan applied for a $25,000 grant; NOW, THEREFORE,
SECTION 1. The City Council of the City of Denton hereby approves the Agreement
attached hereto with from Seth Morgan in an amount not to exceed $25,000 from the Downtown
Incentive Reimbursement Grant Program.
SECTION 2. The City Manager, or his designee, is hereby authorized to execute the
Agreement and to carry out the duties and responsibilities of the City, including the expenditure
of funds as provided in the Agreement.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
day of, m JV\VNrCJ--, 2017.
CHRIS WATTS, MAYOR ----
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
014
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FNj' -we) g I a a k' I = I e I I a N I gyj to I VINA-A" 0 to] M-.4 ke AN
BY
SAEconornic DevelopmenUNCENTIVESDowntown Grant Agreements\200 E. McKinney\200 E. McKinney Agreement.doc
This Downtown Reinvestment Grant 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 Seth Morgan, representing Denton County Brewing Company (the "Grantee"), duly
authorized to do business and in good standing in the State of Texas, duly acting herein by and
through its authorized officer.
WHEREAS, the City has adopted a resolution which provides that it elects to be eligible
to participate in downtown reinvestment grant incentives and has adopted guidelines and criteria
governing downtown reinvestment grant incentive agreements known as the Denton Downtown
Reinvestment Grant Incentive Program; and
WHEREAS, on the 3rd day of April, 2007, the City Council of Denton, Texas (the "City
Council") adopted the Denton Downtown Incentive Reimbursement Program (the "Program"), a
copy of which is on file in the City of Denton Economic Development Office and which is in-
corporated herein by reference; and
WHEREAS, the Denton Downtown Incentive Reimbursement Program Policy consti-
tutes appropriate "guidelines and criteria" governing downtown reinvestment grant incentive
agreements to be entered into by the City; and
WHEREAS on October 13, 2011, the Downtown Task Force recommended changes to
the original Downtown Incentive Reimbursement Grant Program; and
WHEREAS on November 1, 2011, the Economic Development Partnership Board rec-
ommended the changes to the City Council of the City of Denton, including changing the name
of the program to "Downtown Reinvestment Grant Progranf'(the "Program"); and
WHEREAS, on December 6, 2011, the City Council approved said changes to the Down-
town Reinvestment Grant Program; and
WHEREAS, the Owner will be the Owner, as of the Effective Date (as hereinafter de-
fined), which status 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
Agreement for all purposes (the "Premises") as of the Effective D. and
WHEREAS, on the 8h day of January, 2016, Owner submitted an application for rein-
vestment with various attachments to the City concerning the contemplated use of the Premises
(the "Applicationwhich is attached hereto and incorporated herein by reference as Exhibit
and
WHEREAS, the City Council finds that the contemplated use of the Premises, the Con-
templated Improvements (as hereinafter defined) to the Premises as set forth in this Agreement,
_F-AmtlmrAewi��tf :are pormiste-0 witg- e.-tcouragi-t develonment in accordance with tb,;k
SAEconornic DevelopinentUN CENT IVESDowntown Grant Agreements\200 E. McKinney\200 E. McKinney Agreement.doc
purposes and are in compliance with the Ordinance and Program and similar guidelines and
teria adopted by the City and all applicable law;
NOW, THEREFORE, the City and Owner for and in consideration of the premises and
the promises contained herein do hereby contract, covenant, and agree as follows:
1.
TERMS AND CONDITIONS OF REIMBURSEMENT
A. In consideration of and subject to the Owner meeting all the terms and conditions
*f reimbursement set forth herein, the City hereby grants the following reimbursement:
A reimbursement in an amount not to exceed $25,000 attributable to new
capital investments, as hereinafter described, being constructed on the
Premises.
B. A condition of the Reimbursement is that, by March 21, 2018 (subject to f1ro-1;
majeure delays not to exceed 180 days), a capital investment in the form of fagade work, as de-
scribed in Exhibit "B" be constructed on the Premises. For the purposes of this paragraph, th+
term "force majeure" shall mean any circumstance or any condition beyond the control of Own-
er, as set forth in Section XXI "Force Majeure" which makes it impossible to meet the above-
mentioned thresholds.
C. The term "capital investment" is defined as the construction, renovation and
equipping of impact fees, utility upgrades and fa�ade work as described in Exhibit "C" (the
provements on the Premises", the "Contemplated Improvements" or "Improvements") to inclu&v
costs related to the construction of the Improvements on the Premises.
D. A condition of the Reimbursement is that the Contemplated Improvements be
3!.#,-tfsVrvuivi ai-ft dfe Tmu&,vs '�v-woi
ject set forth in Exhibit "B".
R. Owner agrees to comply with all the terms and conditions set forth in this Agree -
2.
amo Vawclmalwuwalleuik"
A. At the time of the award of the Grant, all ad valorem real property taxes with re-
ipect to said property owned within the City shall be current.
B. Prior to the award of the Grant, Grantee shall have constructed the Capital Im-
provements as specified in Exhibit "B".
SAEconomic DevelopmentUNCENTIVESDowntown Grant Agreements\200 E. McKinney\200 E. McKinney Agreement.doc
3.
RECOMI-03 AID EVALUATION OF PROJECT
A. The Owner shall provide access and authorize inspection of the Premises by City
employees and allow sufficient inspection of financial information related to construction of the
.X14MAmuff
the specifications and conditions of this Agreement. Such inspections shall be done in a way that
will not interfere with Owner's business operations.
is
GENERAL PROVISIONS
A. The City has determined that it has adopted guidelines and criteria for the Down-
town Reinvestment Grant Program agreements for the City to allow it to enter into this Agree-
ment containing the terms set forth herein.
B. The City has determined that procedures followed by the City conform to the re-
quirements of the Code and the Policy, and have been and will be undertaken in coordination
with Owner's corporate, public employee, and business relations requirements.
C. Neither the Premises nor any of the Improvements covered by this Agreement are
*wned 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
sir adopting this Agreement.
D. In the event of any conflict between the City zoning ordinances, or other City or-
dinances or regulations, and this Agreement, such ordinances or regulations shall control.
All notices called for or required by this Agreement shall be addressed to the following,
?.,&rw;-., 9wi-atroW.r0g� mail i�to�
pare, by hand delivery or via facsimile:
F41-1.1XIMIM
Seth Morgan
200 E. McKinney Street
Denton, Texas 76201
0M
A1, H ii
Todd Hileman, City Manager
City of Denton
215 East McKinney
Denton, Texas 76201
Fax No. 940.349.8596
SAEconomic Developinent\fNCENTIVES\Downtown Grant Agreements\200 E. McKinney\200 E. McKinney Agreement.doc
6.
CITY 0011CCIT,
This Agreement was authorized by the City Council by passage of an enabling ordinance
at its meeting on the 2nd day of December, 2014, 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
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 Grant with respect to any
property is longer than allowed by law, or (ii) the Grant applies to a broader classification of
property than is allowed by law, then the Grant shall be valid with respect to the classification of
property abated hereunder, and the portion of the term, that is allowed by law.
Owner, as a party to this Agreement, shall be deemed a proper and necessary party in any
litigation questioning or challenging the validity of this Agreement or any of the underlying or-
dinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to
intervene in said litigation.
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,
This instrument with the attached exhibits contains the entire agreement between the par-
ties with respect to the transaction contemplated in this Agreement.
This Agreement shall be binding on the parties and the respective successors, assigns,
heirs, an1 legal representatives.
SAEconornic DevelopmentINCENTIVESDowntown Grant Agreernents\200 E. McKinney\200 E. McKinney Agireement.doc
This Agreement may be executed in counterparts, each of which shall be deemed an orig-
imal, but all of which together shall constitute one and the same instrument.
13.
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.
14.
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.
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.
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 -
u6 geriUd but for -to 101. er tVq-i[ suc�[ neriod of ti-ffe w1f ev t!te pa;t.% is uf a e to
This Agreement is executed to be effective 30 days after the executed date of the _Z,
day •' r..2017, (the "Effective Date") by duly authorized officials of the City
and Owner.
PASSED AND APPROVED this the Z I day of _Kk 1kVZ_ 2017.
CITY OF DENTON,
TODD HILEMAN
�m
S:\Econoniic Development\[NCENTIVES\Downtown Grant Agreements\200 E. McKinney\200 E. McKinney Agreement.doc
ATTEST:
JENNIFER WALTERS, CITY SECRETARI
BY:
SAEconornic Development\INCENTIVESDowntown Grant Agreements\200 E. McKinney\200 E. McKinney Agreement.doc
STATE OF TEXAS
Before me, the undersigned authority, a Notary Public in and for said State of Texas, on
this day personally appeared Todd Hileman, City Manager for the City of Denton, known to me
to be the person who signed and executed the foregoing instrument, and acknowledged to me
that this instrument was executed for the purposes and consideration therein expressed.
1
Given under my hand and seal of office this diday ol 2017.d,/—t
A,
Nezary xV c in Alid for the
te of Texas
JENNIFER K
IW;T'�' / Ct
3 My Commission Expiil
S
N(fARY PUBLIC-48TATF
X
OF 'r 9 All
lv'- v COMM, EXP 12-19.2018
NOTARY W 11176,50
Page 7
91�8
STATE OF TEXAS
Before me, the undersigned authority, a Notary Public in and for said State of Texas, on
this day personally appeared Seth Morgan, Owner, known to me to be the person who signed and
executed the foregoing instrument, and acknowledged to me that this instrument was executed
for the purposes and consideration therein expressed.
Given under my hand and seal of office this the _L&Oay of
-AL-
GLORIA M COUGHLIN
Notary ID # 130698789
My Commission Expires
June 13, 2020
Page 8
Exhibit B
Downtown Reinvestment Grant Program Application
Please return completed with necessary attachments and signature to Economic Development
office, 215 E. McKinney no later than 5 pm by the first Monday of each month. If you have any
application questions, please contact the Economic Development Program Administrator at
940-349-7732.
Applicant Name Date
Business Name l
Mailing Address Ores
Contact Phone Email Address
Zty,Z9g, 55O�i C -1r) -5(0) c�en�oncow,
Building Owner (if different from applicant) ,_,.
Historical/Current Building Name
e .�
r c Y 1 5
Project Site/Address ZOL VYl C l� ! lv � LJ�
i�en'f�t1 X
Type of Work: (check all that apply)
Paint Only Fagade & Building Renovation
Signage L—L7 Awnings
Utility Upgrades ✓ Impact Fees
Details of Planned Improvements relating to Grant Request (attach additional information if
necessary) A
Downtown Reinvestment Grant Program Policy 7
Exhibit B
Project Expenditures
Estimated Costs
Grant Requested
Fagade/Building Rehab
Awnings
Signs
Impact Fees
p 0 . 0 6
Utility Upgrades
Totals
�.
TOTAL COST OF PROPOSED PROJECT $ �Q l C4, a
TOTAL GRANT REQUEST $
(May not exceed 50% of TOTAL COST up to $25,000)
Attach with all required color samples of paint, awning/canopy, sign design, etc., as well as
photographs of building's exterior facade, roof and foundation.
Applicant's Signature
I -I.- v5 -
Date
Downtown Reinvestment Grant Program Policy 8
Exhibit B
DOWNTOWN REINVESTMENT GRANT AGREEMENT FORM
Please complete and return with Downtown Reinvestment Grant Application to Economic
Development office, 215 E. McKinney no later than 5 pm by the first Monday of each month. If
you have any questions, please contact the Economic Development Program Administrator at
940-349-7732.
I have met with the Economic Development Program Administrator, and I have read and fully understand
the Downtown Reinvestment Grant procedures established by the Denton City Council. I intend to use
this grant program for the aforementioned renovation projects to advance the efforts of revitalization and
historic preservation of Denton's historic downtown. I have not received, nor will I receive insurance
monies for this revitalization project.
I understand that if I am awarded a Downtown Reinvestment Grant by the City of Denton, any deviation
from the approved project may result in the partial or total withdrawal of the grant. (If I am awarded a
reinvestment grant for fagade, awning or sign work and the fapade, sign or awning is altered for any
reason within one (1) year from construction, I may be required to reimburse the City of Denton
immediately for the full amount of the grant.)
BusinesslOrganization Name
Applicant's Signature Printed Name Date
Building Owner's Signature (if different from applicant) Printed Name Date
______________m_m,._......__.. ,-_---
.._ ..,_...__...._____ m__�.._. W...__._._ ---
........-.,r_ .a.
This sectiones to bec�atnl)leted by I�cos-toi�iit: Development staff
Date considered by DTTF Recommendation Staff Signature
Date considered by City Manager Recommendation City Manager Signature
Date considered by EDPB Recommendation Staff Signature
Downtown Reinvestment Grant Program Policy 9
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P roi e c t—Expenditures
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TOTAL COST OF PROPOSED PROJECT
TOTAL GRANT REQUEST
(May 110t exceed 509/4 of TOTAL COST up to $25,000)
Grant Requested
Mach With all re(Iiiiieel.�°�r�a�,��les qI)tIjIIj' op, sg d
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