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19-159!' ' / #' • • AN ORDINANCE OF OF # AREA OF DENTON AS TYSONDISTRIBUTION TEXASREINVESTMENT ZONE NO. XIV FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUNDARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH CHAPTERS 311 AND 312 OF THE . CODE; ORDAINING OTHER 1 • RELATING 1 • O PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR REPEAL; AND PROVIDING 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, a business known as Tyson Sales and Distribution, Inc., a Delaware Corporation duly authorized to do business in the State of Texas, has requested a tax abatement for a new facility to be located on Southeast corner of Western Boulevard and Jim Christal, in Denton, Texas and build improvements and locate, install or affix property within the area to be designated as Reinvestment Zone 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 employment or to attract major investment; and WHEREAS, a public hearing before the City Council was held at or after 6:30 p.m. on January 15, 2019, 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, such public hearing was continued to February 5, 2019, and held before the consideration a!' adoption of ordinance; WHEREAS,-# any interested citizen or -p,- - 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 abatement; an!' 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 20th day of March, 2018, on or before the holding of the above - mentioned public hearing, the City Council passed Resolution No. 2018-148 establishing guidelines 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 §312.002 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 offered 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, 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, reconstruction, 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 personal property, excluding inventory, vehicles and supplies. 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, deterioration 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 Denton Policy for Tax Abatement and Incentives, 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 proposed 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 description attached hereto as Exhibit "A" and as shown on the depiction attached hereto as Exhibit "B" and being approximately 50 acres located on the Southeast corner of Western Boulevard and Jim Christal 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 improvements expected to be developed by Tyson Sales and Distribution, Inc. 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, "reasonably 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 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 Incentives and the expected improvements in the boundaries of the zone are expected to enhance significantly the value of all taxable real property and tangible personal property located within the reinvestment zone. SI I CTION 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 in Exhibit "A" attached hereto and as shown on Exhibit `B" attached hereto and such reinvestment zone is hereby designated and shall hereinafter be designated as Reinvestment Zone No. XIV, City of Denton, Texas. SECTION 5. Reinvestment Zone No. XIV shall be effective as of February 5, 2019, and shall terminate five years from that date, on February 5, 2024 unless extended for an additional Page 3 of 7 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 Policy for Tax Abatement and Incentives; 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 Policy for Tax Abatement and Incentives, beginning with and including January 1, 2019; and B. Share of taxes abated — from 25% of taxes on the value of appraised tangible personal property, excluding inventory, vehicles and supplies for a period of six years, as more particularly described in the Tax Abatement Agreement between the City of Denton and Tyson Sales and Distribution, Inc., 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 provisions 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 conditions of the agreements; Page 4 of 7 C. Limiting the uses of the property, consistent with the general purpose of encouraging development 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. I"C 1 I)N . The City Council further directs and designates the City Manager and the Economic Development Department as liaisons for communication with regard to all matters pertaining to the Zone, including, without limitation, the development of the amendment of the current Denton Tax Abatement and Incentive Policy if necessary, the negotiation of tax abatement agreements with industries, commercial enterprises, and other businesses eligible for tax abatement under the Policy and for communication with other taxing entities and the Economic Development 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 _;1.1. If any section, paragraph, clause, or provision in this ordinance, or application 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 remaining portions of this ordinance. E'F1O C 1.. It is hereby found, determined, and declared that a sufficient written notice of the date, place, hour, and subject of the meeting of the City Council at which this ordinance 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 required 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 Page 5 of 7 thereof has been discussed, considered, and formally acted upon. The City Council further ratifies, 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 before the City Council and before the passage of this ordinance on January 15, 2019, and continued to February 5, 2019, the publication of said notice is hereby ratified, approved, and confirmed. SECTION 14. This ordinance shall become effective immediately upon its passage and approval. The motioii to zipprove b� '.. r� r ���� t��nrs ��rtiiiiaiicc was ���ade by �l�c��rc�� �c� was passed �����.1`�..� and seconded _I.A ..�.. �m.�----.......�,..........m � p approved by the 1b11oaving vote Aye Nay Abstain Absent Mayor Chris Watts: Gerard Hudspeth, District 1: Keely G. Briggs, District 2: Don Duff, District 3: John Ryan, District 4: Deb Armintor, At Large Place 5:,W Paul Meltzer, At Large Place 6: PASSED AND APPROVED this the day of . �, -v 12019. CHRIS WATTS,MAYOR Page 6 of 7 ATTEST: :II 4N-N4++,4+-WA4,-4;H4+'Yr,C'I'I'Y SECRETARY '644t' wal), �N76 /Apt BY: APPROVED AS TO LEGAL FORM: AARON LEAL, CITY ATTORNEY . ...... .... BY: ....................... - Page 7 of 7 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY 50 Acres, parts of Lots 13R, 3, 4A, 4B, and 5 DESCRIPTION OF PROPERTY SITUATED in the City of Denton, Denton County, Texas, and being portions of LOTS 3, 4A, 4B, and 5, BLOCK A, WESTPARK ADDITION, PHASE 2, as shown on plat thereof recorded as County Clerk's File No. 2013-318, and a portion of LOT 13R, BLOCK A, WESTPARK ADDITION, as shown on plat thereof recorded as Clerk's File No. 2018-54, and said portions being described as one parcel as follows: BEGINNING at an "RPLS 1640" capped 5/8" iron rod set for the most westerly northwest corner of said Lot 13R, said point being an angle point in the easterly line of Western Boulevard (variable width right-of- way-200 feet wide at this point), from which point a steel corner fence post bears South 63 degrees East, 0.82 foot; THENCE North 45 degrees, 19 minutes, 50 seconds East with the northwesterly line of said Lot 13R and a southeasterly line of said Western Boulevard, 32.75 to an 'RPLS 1640" capped 5/8" iron rod set for the point of intersection of said northwesterly and southeasterly lines with the south line of Jim Christal Road as described in instrument recorded as Clerk's file No. 2018-91388; THENCE easterly with said south line of Jim Christal Road, across a portion of said Lot 13R, North 89 degrees, 58 minutes, 15 seconds East, 205.04 feet to an "RPLS 1640" capped 5/8" iron rod set for an angle point in said south line of Jim Christal Road, and continuing with said south line North 89 degrees, 23 minutes, 35 seconds East, 856.11 feet to an "RPLS 1640" capped 5/8" iron rod set for the point of intersection of said south line with the west line of a 34 foot wide rail easement described in instrument recorded as Clerk's File No. 2013-137158; THENCE South 1 degree, 09 minutes, 35 seconds West with said west line of rail easement and across said Lots 13R and 3, in all 1485.87 feet to an "RPLS 1640" capped 5/8" iron rod set for an "L" corner in said rail easement; THENCE continuing with said west line of rail easement across a part of said Lot 3, North 88 degrees, 51 minutes West 15.0 feet to an "RPLS 1640" capped 5/8" iron rod found in place for a second "L" corner in said easement; THENCE continuing with said west line of rail easement across said parts of Lots 3, 4A, 4B, and 5, South 1 degree, 09 minutes, 35 seconds West, at 1000.0 feet passing an "L" corner in said easement, departing from said west line and continuing 15.0 feet west of said west line of rail easement, in all 1053.17 feet to an "RPLS 1640" capped 5/8" iron rod set for corner; THENCE North 89 degrees, 37 minutes West across said Lot 5 and parallel with the common lot line between said Lot 4B and 5, 518.29 feet to an "RPLS 1640" capped 5/8" iron rod set for corner in said east line of Western Boulevard and the west line of said Lot 5; THENCE northerly with said east line of Western Boulevard and the west lines of said Lots 5, 4B, 4A, 3, and 13R, the following courses and distances: North 1 degree, 09 minutes 10 seconds East, passing the common west corner of said Lots 5 and 4B, and continuing in all 189.15 feet to the beginning of a curve whose center bears North 88 degrees, 50 minutes, 48 seconds West, 1267.5 feet, from which point an 'RPLS 1640" capped 5/8" iron rod found in place bears South 50 degrees West, 0.24 foot; northerly with said curve, passing the common west corner of said Lots 46 and 4A, and continuing in all a distance of 642.73 feet to the end of said curve, from which point an 'RPLS 1640" capped 5/8" iron rod found in place bears South 50 degrees West, 0.24 feet; North 27 degrees, 54 minutes, 05 seconds West, passing the common west corner of said Lots 4A and 3, passing the common west corner of said Lots 3 and 13R, and continuing in all 551.84 feet to the beginning of a curve whose center bears North 62 degrees, 05 minutes, 58 seconds East, 1132.5 feet, from which point a capped iron rod found in place bears South 61 degrees East, 0.47 foot; northerly with said curve, a distance of 574.27 feet to the end of said curve, from which point a bent 1/2" iron rod found in place bears North 86 degrees East, 0.91 foot; North 1 degree, 09 minutes, 10 seconds East, 125.15 feet to an angle point in said east and west lines, from which point a bent 5/8" iron rod found in place bears South 70 degrees East, 1.01 foot; North 6 degrees, 51 minutes, 50 seconds East, 201.0 feet to an angle point in said east and west lines, from which point a bent'/2" iron rod found in place bears South 40 degrees East, 0.59 foot; North 1 degree, 09 minutes, 10 seconds East, 329.62 feet to the PLACE OF BEGINNING, and containing 50.00 acres (2,178,000 square feet). 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