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20-1425ORD[NANCE NO.20-1425 AN ORDINANCE OF THE CITY OF DENTON APPROVING A GRANT APPLICATION FROM H2 OAK. LLC. FROM THE DOWNTOWN REINVESTMENT GRANT PROGRAM NOT TO EXCEED $7,313; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, on April 3, 2007, the City Council approved a Downtown Reinvestment Grant Program (the “Program”) by Ordinance No. 2007-072; and WHEREAS, on September 18, 2018, the City Council approved changes to the Program by Ordinance No. 18-1321; and WHEREAS, H2 Oak, LLC, applied for a $7,3 13 grant in accordance with the Program; and WHEREAS, the Tax Increment Financing Reinvestment Zone Number One Board and the Downtown Economic Development Committee reviewed the application in accordance with the Program and recommend a grant in an amount not to exceed $7,313; NOW, THEREFORE, THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City Council of the City of Denton hereby approves the Agreement attached hereto authorizing a grant in an amount not to exceed $7,3 13 from the 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. The motion to approve this Ordinance was made by ?aOl Me\ tLcr and seconded by Sob(\ Klan ; the Ordinance was passed and approved by the following vote [L - a : Aye NIa / Abstain Absent Chris Watts, Mayor: Gerard Hudspeth, District 1 : Keely G. Briggs, District 2: Jesse Davis. District 3 : John Ryan, District 4: Deb Armintor, At Large Place 5 : Paul Meltzer, At Large Place 6: V’ / ,Z £a V/ PASSED AND APPROVED thi, th, \ \ th d,y ,f Ro8ost _, 2020. CHRIS WATTS. MAYOR ATTEST: ROSA RIOS, CITY SECRETARY APPROVED AS TO LEGAL FORM: BY: AARON LEAL, CITY ATTORNEY r 4,/C DOWNTOWN REINVESTMENT GRANr AGREEMENr 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 City Manager, Todd Hileman, and H2 Oak, LLC, 215 E. Hickory Street (“Owner”), 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 Council of Denton, Texas (the “City Council”) has adopted an ordinance 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 Downtown Reinvestment Grant Program Policy (the “Program”), a copy of which is on file in the City of Denton Economic Development Office and which is incorporated herein by reference; and WHEREAS, the Program constitutes appropriate “guidelines and criteria” governing downtown reinvestment grant incentive agreements to be entered into by the City; and WHEREAS, the Owner will be the owner or have a leasehold interest, as of the Effective Date (as hereinafter defined), 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”); and WHEREAS, on the 21st day of January 2020, Owner submitted an application for a reinvestment grant with various attachments to the City concerning the contemplated use of the Premises (the “Application”), which is attached hereto and incorporated herein by reference as Exhibit “B”; and WHEREAS, the City Council finds that the contemplated use of the Premises, the Im- provements (as hereinafter defined) to the Premises as set forth in this Agreement, and the other terms hereof are consistent with encouraging development in accordance with the purposes and are in compliance with the Program and similar guidelines and criteria adopted by the City and all applicable law; NOW, THEREFORE, the City Manager and Owner for and in consideration of the premises and the promises contained herein do hereby contract, covenant, and agree as follows: I TERMS AND CONDITIONS OF REIMBURSEMENT GRANT A. In consideration of and subject to the Owner meeting all the terms and conditions of reimbursement set forth herein, the City hereby grants the following reimbursement grant: 1. A reimbursement grant in an amount not to exceed $7,313 (the “Grant”) attributable to new Improvements, as hereinafter defined, being constructed on the Premises. B. A condition of receiving the Grant is that, by January 21, 2021, Owner construct, renovate, and equip fagade work, paint, signage, awnings, utility upgrades, and incur impact fees as described in Exhibit “B” (collectively, the “Improvements”) on the Premises. C. A condition of the Reimbursement is that the Improvements be used substantially in accordance with the description of the project set forth in Exhibit “B” and comply with the requirements of the Program. D. Owner agrees to comply with all the terms and conditions set forth in this Agreement . CONDITION OF REIMBURSEMENT IT A. At the time of the award of the Grant, all ad valorem real property taxes with respect to the Premises and all other property in the City owned by the Owner shall be current. B. Prior to the award of the Grant, Owner shall have constructed the Improvements as specified in Exhibit “B .” C. If alterations to the fagade work, paint, signage, or awnings portion of the Improvements are made for any reason within one (1) year from construction, Owner is required to reimburse the City in the full amount of the Grant. D. Prior to the award of the Grant, Owner shall own or have a leasehold interest in the Premises. 111 RECORDS AND 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 Improvements to ensure that the Improvements are made, and the thresholds are met according to the specifications and conditions of this Agreement. Such inspections shall be done in a way that will not interfere with Owner’s business operations. IV GENERAL PROVISIONS A. The City has determined that it has adopted guidelines and criteria for the Program agreements for the City to allow it to enter into this Agreement containing the terms set forth herein. B. The City has determined that procedures followed by the City conform to the requirements of the Code and the Program. C. In the event of any conflict between the City zoning ordinances, or other City ordinances or regulations, and this Agreement, such ordinances or regulations shall control. Page 2 D. Owner represents and warrants that Owner is authorized to make the Improvements to the Premises. V NOTICE All notices called for or required by this Agreement shall be addressed to the following, or such other party or address as either party designated in writing, by certified mail postage prepare, by hand delivery or via facsimile: OWNER:CITY: Earl Herrington H2 Oak, LLC P.O. Box 1567 Denton, Texas 76202 Todd Hileman, City Manager City of Denton 215 East McKinney Denton, Texas 76201 Fax No. 940.349.8596 VI CITY COUNCIL AUTHORIZATION This Agreement was authorized by the City Council by passage of Ordinance authorizing the City Manager to execute this Agreement on behalf of the City . VII SEVERABII LW 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, paragraph, 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. VIII OWNER STANDING 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 ordinances, resolutions, or City Council actions authorizing same and Owner shall be entitled to intervene in said litigation. IX APPLICABLE LAW Page 3 This Agreement shall be construed under the laws of the State of Texas and is fully performable in Denton County, Texas. Venue for any action under this Agreement shall be in Denton County, Texas. X ENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the parties with respect to the transaction contemplated in this Agreement. XI BINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XII COUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. XIII 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. XIV NO JOINT VENTURE 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 . XV AMENDMENT This Agreement may be modified in writing by the parties hereto to include other provisions which could have originally been included in this Agreement or to delete provisions that were not originally necessary to this Agreement. XVI FORCE MAJEURE 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 obligations under this Agreement, then the respective Party’s obligations hereunder shall be Page 4 suspended during such period but for no longer than such period of time when the party is unable to perform. XVI INDEMNIFICATION OWNER SHALL INDEMNIFY, SAVE AND HOLD HARMLESS THE CITY, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, ATTORNEYS AND EMPLOYEES (COLLECTIVELY, THE “INDEMNITEES”) FROM AND AGAINST ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION WHICH DIRECTLY OR INDIRECTLY ARISES FROM CITY’S GRANT AND OWNER’S PERFORMANCE OF ITS OBLIG A- TIONS HEREUNDER AND ANY CONTESTS OR CHALLENGES TO THE LEGAL AUTHORITY OF TIm CITY OR OWNER TO ENTER INTO Tins AGREEMENT AND ANY AND ALL LIABILITIES, LOSSES, COSTS OR EXPENSES (INCLUDING AT- TORNEY’S FEES AND DISBURSEMENTS) THAT ANY INDEMNITEES SUFFER OR INCURS AS A RESULT OF ANY OF THE FOREGOING; PROVIDED, HOWEVER, THAT OWNER SHALL HAVE NO OBLIGATION UNDER THIS PARAGRAPH TO THE CITY WITH RESPECT TO ANY OF THE FOREGOING ARISING OUT OF Tm GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TIm CITY OR THE BREACH BY Tm CITY OF THIS AGREEMENT. executed to be (the “Effective effective on the executed date of the LP day of Date”) by duly authorized officials of the City and ROSA RIOS, CITY SECRETARY 1B!II IIrr : ArrEST AARON LEAL,£'l BY APPROVED AS TO LEGAL FORM: OWNER: H2 Oak, LLC Page 5 By Title /%///rl A dL p f& Jr Page 6 EXHIBIT A LEGAL DESCRIPTION OF THE PREMISES BEING that certain lot, tract, or parcel of land situated in the H. Sisco Survey Abstract Number 1184 in the City of Denton. Denton County, Texas, being all that certain tract of land conveyed by deed from Fort Worth National Bank to Robert C. Storrie, Jr., Trustee recorded in Volume 694, Page 511, Deed Records, Denton County, Texas. and being all that certain tract of land conveyed by deed from Burnell Mitchell et al to Robert C. Storrie, Jr., Trustee recorded in Volume 613, Page 6, Deed Records, Denton County, Texas, and being all that certain tract of land conveyed by deed from R. E. Jackson, Sr. et al to Robert C. StoNe, Jr. recorded in Volume 420, Page 190, Deed Records, Denton County, Texas and being more particularly described as follows BEGINNING at a two inch diameter pipe found for corner in the south line of East Oak Street, a public roadway, said point being the northeast corner of that certain tract of land con- veyed by deed from Joe C. Thomas and wife, Kathleen Thomas to Gerald C. Stockard and wife, Eloise Stockard recorded in Volume 445, Page 664, Deed Records, Denton County, Texas; THENCE N 89' 50’ 57" E. 124.00 feet with said south line of said East Oak Street to an iron rod set for corner, said point being the northwest corner of that certain tract of land con- veyed by deed from George E. HoIladay et al to Denton Elks Lodge No. 2446 recorded in Vol- ume 2137, Page 677, Real Property Records, Denton County, Texas; THENCE S 00'’ 16' 12" E, 163.90 feet with the west line of said Denton Elks Lodge tract to an iron rod set for corner, said point being the southwest corner of said Denton Elks Lodge tract ; THENCE N 89" 39' 27" E, 49.94 feet with the south line of said Denton Elks Lodge tract to an iron rod set for corner, said point being the northwest corner of that certain tract of land conveyed by deed from Rodney HaRe to Ramarson Partners, LLC recorded under Document Number 2009-100378, Real Property Records, Denton County, Texas; THENCE S 00" 00' 10" W, 140.63 feet with the west line of said Ramarson Partners tract to an iron rod set for corner in the north line of East Hickory Street, a public roadway; THENCE S 89Q 5 1’ 32" W, 181.00 feet with said north line of said East Hickory Street to an "X" in concrete for corner, said point being the southeast corner of Lot 2, Block 1 of Alsup Addition, an addition to the City of Denton Denton County, Texas according to the plat thereof recorded in Cabinet L, Page 353, Plat Records, Denton County, Texas;; THENCE N 00'’ 06' 12" E, 140.00 feet with the east line of said Alsup Addition to an iron rod found for corner in the south line of said Stockard tract; THENCE N 89'’ 39' 27" E, 5.50 feet with said south line of said Stockard tract to an iron rod set for corner point being the southeast corner of said Stockard tract; Page 7 THENCE N 00'’ 11' 18" E, 164.32 feet with the east line of said Stockard tract to the PLACE OF BEGINNING and containing 1 .052 acres of land. And having the street address 215 E. Hickory, Denton, TX 76201 Page 8 EXInBIT B APPLICATION AND IMPROVEMENFS \ I”; Downtown Reinvestment Grant Program Application Please return completed the application with necessary attachments and signatures to the Economic Development Department office at 215 E. McKinney. If you have any application questions, please contact the Economic Development Program Administrator at 940-349-7732. Applicant Name Uk\ t>D =1 \Cae, ’n DAIC al–fELtI:ElDeal\N Ill lbc%'I U 2CAKBusiness Name Mailing Address Contact Phone qqo .SeB, Il bI Email AddrHS N\ Building Owner (if different from applicant)%b Historical/Current Building Name 'F£Av€L5Te AD Project Site/Address 2ts e beA'ON ,IX //&c77Gb / Type of Work: (check all that apply) Only ge a Awnings [] Impact Fees a Utility Upgrades a Interior/Code Improvements a Facade & Building Renovation Details of planned improvements relating to grant request (attach additional information if necessary). (,,J pFIFt( D(Af) How will this project benefit Downtown? MV/t&l iS 4 erIe@TbA - Prt+pgnHJ Finn IU W( ( .'Pl MJC> €§fat4u-1 oF UK ,C nfc $66,yr JrAL4S -\ 1l67 Nm. (TxT .F afl>e*') :>.6A€ t„\P'c 14vTCP £rutT+-la' W BqLp/d:; k-9 (3e Melt+C'\ AO9n\N dG R&C\anI IN THr NZ,d. Project Categories Facade/Building Rehab Awnings Signs Impact Fees Utility Upgrades Interior/Code Improvements Totals Estimated Costs Grant Requested N_ b2£ TOTAL COST OF PROPOSED PROJECT S 1 qaA s- TOTAI. GRANT REQUEST (May not aimed 5(P/6 of TOTAL COST up to $25,000)$ 1 515 Attach aN required color samples ofpaint, awning’canopy, sign design efa . as well as photographs of building’s exterior facade, roof and foundation. I l&\ DateApplicant ’s Signature DOWNTOWN REINVESTMENT GRANT AGREEMENT FORM Please complete and return with the Downtown Reinvestment Grant Application to the Economic Development office, 215 E. McKinney. 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 inswance monies jbr this revitalization project I understand that if I am awarded a Downtown Reinvestment Grant by the City ofDentons 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 facade, awning or sign work and the facade, 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 Want.) A/.b', a ONe r 1+AoA la Business/Organization Name ~’*yesb Printed Name a\C PULI D% Date />,/;e. Building Owner's Signature (if diferent fom applicant) Printed Name Date This section is to be completed by Economic Development staft Date considered by DTFF Recommendation Staff Signature Date consideredby TIRZ tI Board Recommendation Staff Signature 9 DAN BLACK - ARTIST INVOICE Project Title: Day if the Dead Festival Coffin Race Mural 1/17/20 ! Description 281 .507.5587 hopegraffix@gmail,com Exterior Mural facing Hickory St.1:$ 8,400 703 Got>er St. Denton, TX 76201 Estimatul Project Total HIst Half Deposit Design Deposit Credit Amount Due $8,400 $n/a ; $ n/a $ 8,400: Total Thanks for the opportunity to be a part of your project. Sincerely. Dan HI IILLIe 5905 Eckn Dr. Unit B Haltom CRy TX 76117 Offne 682.312-5338 Fax 682-312++95 Www.mello- signS. corn PURCHASE AGREEMENT This Purchase Agreement made and entered into this IOth day of August, 2019 , tntween MeI}a Signs (Seller) & Hickory 2 Oak ' 210 E Hickory Ave. Denton TX 76201- Steve Watkins (Purchaser). Job Name: H20AK Denton FJOB SCOPE: Address: 210 E Hickory St, City/State: Denton TX Contact: Steve Watkins 940-30(F3003 Amount Fabricate (1 ) 68" x 72" Double Sided blade sign with exposed neon H 2 O per drawing R1 $4,250.00 Aj ,750.00 -219116 Installation of above signage.$1.350.00 $150.00 $250.00 Ire I dIE&r SuN8y of rooftop and electriml (Exact pla ament of bIa& and mounting method) bPermit Acquisition Fee Permits to be billed at COST on Final invoice Engineering if needed not included in scope. SUBTOTAL TAX CONTRACT TOTAL $7.750.00 $639.38 622'I# DOWN PAYMENT BALANCE DUE ON DELIVERY §4,194.69 NOTE: Primary EIMcal CirwR to the Sign knatim k TIle Purchasels Rl l$itlll ACCEPTED ACCEPTED Seller Mello Marketing LLC DBA Mello Signs 5905 Eden Dr. Unit B Haltom City. TX 76117 Purchaser BY BY: X TItle: Date: Title: Date: This Purchase Agreement is subject to the Terms and Conditions attached a)qP gg !! nPhi•Bi+•n•n,U (SZbZ3a = cr) U-JL bI g BX qa IEF- g (f)Laon3\- d cr) b 8 ?L.JT: {\ { I fIi r Z Faa a: la (9 a al IN nHI -HIB L' ' I, : igf;i:. §.:-la .q@: LegI iSI Edge Q_,J+R+orhH= >ug}aKicui eSF.E.ntl I M Wgi}W8i:;::;; I {I r +XII i I