21-149621-1496
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF DENTON AUTHORiZING THE INTERIM CITY
MANAGER TO EXECUTE A PROPERTY TAX SETTLEMENT AGREEMENT WITH
DANIEL C ATKINSON AND KELLEY DEES, OWNERS OF PROPERTY LOCATED AT 4525
SOUTH BONNIE BRAE STREET; AUTHORIZING EXPENDITURES; PROVIDING FOR
SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, in early 2009, the City of Denton commenced exploring annexing a large area
of land, referred to as “DH-4,” located on the south side of the City limits; and
WHEREAS, DH-4 included property legally described in the attached Settlement
Agreement, with a USPS mailing address of 4525 South Bonnie Brae Street, Argyle, Texas, 76226
(the “Property”); and
WHEREAS, the Property was annexed into the City and subject to the City’s property tax
rate; and
WHEREAS, the City entered into a settlement agreement with Timothy and Kelly Frye to
reimburse the City tax portion of their property taxes up to and including the 2016 property tax
bill; and
WHEREAS, the City extended the settlement agreement with the subsequent purchasers
of the Property, Daniel C Atkinson & Kelley Dees, to reimburse the City tax portion of their
property taxes up to and including the 2020 property tax bill to coincide with the term of the non-
annexation agreements of property owners in DH-4; and
WHEREAS, the City recently extended the non-annexation agreements of property owners
in DH-4 until August 1, 2040; and
WHEREAS, the City desires to extend the tax reimbursement arrangement with the
Property owners via the settlement agreement attached to this Ordinance; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings and recitations contained in the preamble of this Ordinance are
incorporated herein by reference and found to be true.
SECTION 2. The City Council authorizes the Interim City Manager or their designee to
execute a settlement agreement in substantially the same form as attached hereto.
SECTION 3. City expenditures provided for in the settlement agreement are hereby
authorized.
SECTION 4. The provisions of this Ordinance are severable, and the invalidity of any
phrase or part of this Ordinance shall not affect the validity or effectiveness of the remainder of
this Ordinance.
SECTION 5. This ordinance shall become effective immediately upon its passage and
approval.
The motion to approve this Ordinance was made by –HsS c l-h-ViS and
seconded by 'F’xo } fY\ c_ ly?_ eC ; the Ordinance was passed and appro
by the following vote n - ILl :
Aye
/
V‘
-L
J-
,/‘
,,“
,/
Nay Abstain Absent
Mayor Gerard Hudspeth:
Vicki Byrd, District 1:
Brian Beck District 2 :
Jesse Davis, District 3 :
Alison Maguire, District 4:
Deb Armintor, At Large Place 5 :
Paul Meltzer, At Large Place 6:
PASSED and APPROVED this the 2PHday of
ATTEST:
ROSA RIOS, CITY SECRETARY BY:
a 20/
APPROVED AS TO LEGAL FORM:
CATHERINE CLIFTON, INTERIM CITY ATTORNEY
SETrLEMENT AGREEMENT
This Settle„„„t Agreement (the “Ag„,m,„P) is made this Wtb d,y ,f –Sol q
2021, by and between Daniel C Atkinson & Kelley Dees (“Atkinson & Dees“), and the City of
Denton, Texas, a Home Rule Municipal Corporation of Denton County. Texas (the “City”).
Recitals
WHEREAS, in early 2009, the City commenced exploring annexing a large area of land,
referred to as “DH-4,” located on the south side of the City limits; and
WHEREAS, DH-4 included property legally described in the attached Exhibit “A“ (the
“Property”), with a physical mailing address of 4525 South Bonnie Brae Street, Argyle, Texas,
76226; and
WHEREAS, the Property was annexed into the City and subject to the City’s property tax
rate; and
WIIEREAS, upon purchasing the Property in 2015, Atkinson & Dees were unaware of the
Settlement Agreement entered into by the City with the prior property owners. Timothy and Kelly
I;rye. ("Fryc“). to reinrbursc the City tax portion of their property taxes up to and including the
2016 property tax bill; and
WHEREAS, Atkinson & Dees do not contest the validity of the City’s annexation of the
Property, but rather are concerned about paying City property taxes, and being reimbursed for
paying said City property taxes; and
WHEREAS, the City extended the Frye Settlement Agreement with Atkinson & Dees to
reimburse the City tax portion of their property taxes up to and including the 2020 property tax
bill to coincide with the term of the non-annexation agreements of property owners in DH-4; and
WHEREAS, the City recently extended the non-annexation agreements of property owners
in DH-4 until August 1. 2040; and
WIll iRI':AS. the City desires to extend the tax minrburscnlent arrangement via this
Settlement Agreement; and
THEREFORE, in consideration of the mutual covenants, conditions and obligations set
forth herein, the parties agree as follows:
Agreement
1. Recitals. The foregoing recitals are understood and agreed upon by the parties and are
fully incorporated into and constitute a part of the terms of this Agreement.
2. Reimbursement. In consideration of the promises and conditions set forth herein, the City
shall reimburse Atkinson & Dees the City tax portion of their yearly property tax bills covering
the Property, commencing with the 2021 property tax bill and continuing to and including the tax
bill payable in 2040. To obtain reimbursement, Atkinson & Dees must present to the City Finance
Department a copy of the applicable yearly property tax bill together with a receipt evidencing
payment of the property tax bill. The City shall process and mail a reimbursement check to
Atkinson & Dees no later than 15 days from the date of Atkinson & Dees’ reimbursement request.
If the City extends the term of the non-annexation agreements of any one property owner within
DH4 possessing said agreement, this Agreement shall be extended via amendment for the same
term. The City’s reimbursement obligation shall cease if 1 . Atkinson & Dees convey the Property
during the term of the Agreement or any extension(s) thereof, except Atkinson & Dees have the
right to assign this Agreement in whole to an entity that is controiled by or under common control
with Atkinson & Dees, or 2. Atkinson & Dees develop the Property beyond the current single-
family detached dwelling and customary accessory use(s), plus any agriculturally-related use(s),
that exist as of the efFective date of this Agreement. An inventory of the Property’s current uses
and structures and other anticipated customary accessory use(s) and agriculturally-relate use(s)
appears in Exhibit “B.”
3. Annexation Consent. Atkinson and Dces’ predecessor, Frye, agreed in their Settlement
Agreement to let the Property remain within the City limits, despite not receiving a non-annexation
agreement prior to the annexation of the Property. Atkinson & Dees, as the Frye's successor in
interQS,t, acknowledge that the Property continues to remain within the City limits.
4. Waiver. With regard to the procedures followed by the City relative to the annexation of
the Property and to the rest of the area included within DH-4. Atkinson & Dees hereby waive an)
right to assert any claims or lawsuits against the City based upon such procedures being invalid,
improper or unlawful in any manner whatsoever. In consideration of Atkinson & Dees’ waiver,
the City waives any right to assert any claims or lawsuits against Atkinson & Dees relating to the
annexation of the Property or structures existing on the effective date as listed on Exhibit “B.”
5. No Admission. Payment by the City under this Agreement is intended for settlement
purposes only and does not constitute any admission by the City that the CitY failed to compIY
with the statutory procedural annexation process in connection with the PropertY and all of DH-4-
This settlement is intended to resolve and conclude all claims and disputes regarding the CitY’s
annexation of the Property.
6. Notices. Unless otherwise notified in writing. all notices. requests and demands shall be
in writing and shall be personally delivered or mailed by tJnitcd States Ccnillcd nrail. postage
prepaid and return receipt requested, as follows:
For the City:City of Denton, Texas
Atta: City IVlanager
215 East McKinney Street
Denton, Texas 76201
with a copy to:City of Denton, Texas
Page 2 of 5
Ann: City Attorney
215 East McKinney Street
Denton, Texas 76201
For Atkinson & Dees:Daniel C. Atkinson & Kelley Dees
4525 South Bonnie 13rae Street
Argyle, Texas 76226
7. Applicable Law. This Agreement shall be construed and interpreted in accordance with
the laws of the State of Texas. Venue shall lie in Denton County, Texas.
8. Entire Agreement. This Agreement is the entire Settlement Agreement that exists
between the City and Atkinson & Dees with respect to the issues discussed above. This Agreement
supersedes, and the parties hereto shall not rely upon, any prior promises, understandings or
agreements between them relative to the subject matter of this Agreement. No changes of,
modifications of, or additions to this Agreement shall be valid unless the same shall be in writing
and signed by all parties hereto.
9. Binding Agreement. This Agreement and all of its terms, provisions. and covenants run
with the Property and will apply to, be binding on. and inure to the benefit of the parties and their
respective heirs, executors, legal representatives and assigns.
10. No Waiver. Failure of any party to this Agreement to insist upon the strict and prompt
performance of any of the covenants, agreements, terms and conditions herein contained shall not
constitute or be construed as a waiver or relinquishmcnt of any party's right thereafter to enforce
any such term9 covenant, agreement or condition, but the same shall continue in full force and
effect
ll . Severability. If any provision of this Agreement shall be determined to be contrary to law
and unenforceable by any court, the remaining provisions shall be severable and enforceable in
accordance with their terms.
12. Effective Date. This Agreement shall become effective as of the date of the last signature
below.
IN WiTNESS WHEREOF, the Parties hereto have executed this Agreement as of the
date of the last signature below.
Date
dt}–Managei
ATTEST:
Page 3 of 5
IttIll ItjIII/
Rosa Rios, City Secretary
APPROVED AS TO LEGAL FORM:
Digitally signed by Mack
Reinwand
Date: 2021.07.15 14:24:07 -05'OO'
Aaron Leal, City Attorney
Date:g&{'Zoz\
THE STATE OF TEXAS
COUNTY OFIYI\US
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D IIa1rII i e I :E:t I ::=T e n t \II/a s ac 1b(IInow I edged be bre me on the U day of MaN _. 202 i. by
WOO GO 9Bag a
DASIA HAFVIis
Notary PubRc, SUb of Tens
My Ck,mm. Exp.07-r>20£4
ID No. 132566203
a 6 h
HAiM\a„,„-
Notary Public-State of Texas
THE STATE OF TEXAS )
COUNTY or tIl\\as ;
This instrument was acknowledged before me on the a day of
2021, by Kelley Dees.
W',{
NoW} PLa
Page 4 of 5
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EXFlIBI'r -B"
Existing Structures and customary accessory use(s), plus any agriculturally.related use(s)
•
•
•
•
e
•
Single-family detached dwelling that exist as of the effective date of this Agreement.
Accessory barn structure
Outdoor kitchen
Livestock fencing
Pool
Livestock Shelter
Future Customary accessory use(s) and agriculturally-relate use(s) examples (if authorized by
Denton Development Code. as amended)
•
•
•
e
e
e
e
Second accessory barn
Covered carport
Livestock fencing
Deck
Shed
Pond
Jacuzzi