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22-1524
ORDINANCE NO. 22-1524 AN ORDINANCE OF THE CITY OF DENTON APPROVING A GRANT TO STEVE’SWINE BAR, LLC, LOCATED AT 111 INDUSTRIAL ST., FROM THE DOWNTOWN REINVESTMENT GRANT PROGRAM IN AN AMOUNT NOT TO EXCEED $20,000.00;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 December 14, 2021, the City Council approved changes to the Program by Ordinance No. 21-2626; and WHEREAS, Steve’s Wine Bar, LLC located at 111 Industrial St. (the “Property“) applied for a $20,000.00 grant in accordance with the Program; WHEREAS, the Tax Increment Financing Reinvestment Zone Number One Board and the Downtown Economic Development Committee reviewed the application in accordance withthe Program and recommend a grant in an amount not to exceed $20,000.00; 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 $20,000.00 from the Program. SECTION 2. The City Manager, or their 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. S e C O n d e: hEy nr11 0 B;Ft: 1C= r0 YIS!}1:S; •F) rd i n a nee wasH! Uk diE IF: Ep WaS approve / Ithe following vote [1 -a] :Aye LXJa r Abstain Absent Gerard Hudspeth, Mayor: Vicki Byrd, District 1 : Brian Beck. District 2: V/ /Zvr b/ 1/,/ Jesse Davis, District 3 : Alison Maguire, District 4: Brandon Chase McGee, At Large Place 5 : Chris Watts, At Large Place 6: PASSED AND APPROVED this the ILp.t day of .At/dos+2022. GERARD HUDSPETH, MAYOR ATTEST: ROSA RIOS, CITY SECRETARY b\\It IIlIIea APPROVED AS TO LEGAL FORM: MACK REINWAND, CITY ATTORNEY g/sa- Hg=’;TiLT-i;BY: DOWNTOWN REINVESTMENT GRANT AGREEMENT 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 Man- ager, Sara Hensley, and Steve Severance and Steve’s Wine Bar LLC, 111 Industrial, Denton, TX 76201 (collectively, “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 ordi- nance which provides that it elects to be eligible to participate in downtown reinvestment grantincentives and has adopted guidelines and criteria governing downtown reinvestment grant incen- tive 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 incor- porated 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; 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 6th day of June, 2022, Owner submitted an application for a reinvest- ment 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 Downtown Task Force finds that the contemplated use of the Premises, the Improvements (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 prem- ises and the promises contained herein do hereby contract, covenant, and agree as follows: 1 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 $20,000.00 (the “Grant”) attributable to new Improvements, as hereinafter defined, being constructed on the Premises. B. A condition of receiving the Grant is that, by April 19, 2023, Owner construct, renovate, and equip fagade and building renovations, 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. ment.Owner agrees to comply with all the terms and conditions set forth in this Agree- 11 CONDITION OF REIMBURSEMENT 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 and building renovations or any portion of the Improve- ments are made for any reason within one (1) year from construction, Owner is required to nim- burse the City in the full amount of the Grant. D Premises. Prior to the award of the Grant, Owner shall own or have a leasehold interest in the 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 forthherein B. The City has determined that procedures followed by the City conform to the re- quirements of the Code and the Program. Page 2 C. In the event of any conflict between the City zoning ordinances, or other City ordi- nances or regulations, and this Agreement, such ordinances or regulations shall control. D. Owner represents and warrants that Owner is authorized to make the Improvementsto the Premises. VNOTICE 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: Steve Severance Steve’s Wine Bar, LLC 111 Industrial Denton, TX 76201 Sara Hensley, City Manager City of Denton 215 East McKinneyDenton, Texas 76201 Fax No. 940.349.8596 VICITY 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. VIISEVERABIILTY 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. VIIIOWNER 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 ordi- nances, resolutions, or City Council actions authorizing same and Owner shall be entitled to inter- vene in said litigation. Page 3 IX.APPLICABLE LAW 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 Denton County, Texas. XENTIRE AGREEMENT This instrument with the attached exhibits contains the entire agreement between the par- ties with respect to the transaction contemplated in this Agreement. XIBINDING This Agreement shall be binding on the parties and the respective successors, assigns, heirs, and legal representatives. XIICOUNTERPARTS This Agreement may be executed in counterparts, each of which shall be deemed an orig- inal, 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. XIVNO 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. XVAMENDMENT This Agreement may be modified in writing by the parties hereto to include other provi- sions which could have originally been included in this Agreement or to delete provisions that were not originally necessary to this Agreement. Page 4 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 obli- gations under this Agreement, then the respective Party’s obligations hereunder shall be suspended during such period but for no longer than such period of time when the party is unable to perform. XVIIINDEMNIFICATION OWNER SHALL INDEMNIFY, SAVE AND HOLD HARMLESS THE CITY, ITS ELECTED OFFICIALS, OFFICERS, AGENTS, ATTORNEYS AND EMPLOYEES (COL-LECTIVELY, Tm “INDEMNITEES”) FROM AND AGAINST ANY CLAIM, DEMAND,ACTION OR CAUSE OF ACTION WHICH DIRECTLY OR INDIRECTLY ARISESFROM CITY’S GRANT AND OWNER’S PERFORMANCE OF ITS OBLIGATIONSHEREUNDER AND ANY CONTESTS OR CIIALLENGES TO THE LEGAL AUTHOR- ITY OF THE CITY OR OWNER TO ENTER INTO THIS AGREEMENT AND ANY AND ALL LIABILITIES, LOSSES, COSTS OR EXPENSES (INCLUDING ATTORNEY’SFEES AND DISBURSEMENTS) THAT ANY INDEMNITEES SUFFER OR INCURS ASA RESULT OF ANY OF THE FOREGOING; PROVIDED, HOWEVER, THAT OWNERSIIALL HAVE NO OBLIGATION UNDER THIS PARAGRAPH TO THE CITY WITHRESPECT TO ANY OF THE FOREGOING ARISING OUT OF THE GROSS NEGLI- GENCE OR WILLFUL MISCONDUCT OF THE CITY OR THE BREACH BY THE CITYOF THIS AGREEMENT. [Signature Page Follows] Page 5 This Agreement is executed to be effective on the executed date of the day of , 20 , (the “Effective Date”) by duly authorized officials of the City andOwner. CITY OF DENT(I mERSLEYnc LANAGER ATTEST:ECRETARY 1\111111111 EMae APPROVED AS TO LEGAL FORM:MACK RErNWAND, CITY ATTORNEY BY: g+ K: 4-y OWNER: Steve Severance STEVE SEVERANCE STEVE’S WINE BAR, LLC B„, Steve Severance Steve Severance, Manager Page 6 EXHIBIT ALEGAL DESCRIPTION OF THE PREMISES I B 'OLL}062 Pc180 1 EXHIBIT " A'1 All that certaIn lot, -t.r4c.t or parcel of land, lying andbeing sItuated in Ehd'CIty of Denton , Denton County , Texas,out of the Hiram CIsco Survey , Abstract No. 1184 , ind beinga part of a tract of land conveyed by John Alexander, et uxto t:, Lee Johnson, et ux , by Warranty Deed dated December21, 1944, and recorded in Volume 312 , Page 107, Deed Recordsof Denton County, Texas, and being more fully described asf ol Iows : BEGINNING at a point which is in the East boundary line ofIndustrial Street, 55,0 feet South of the intersect lorI of- the South boundary IIne of Hickory SLreet and the EasE IIneof Industrial Street, same beIng the Southwest corner of atract of land conveyed by Etta Juanita Johnson to CecilHawk, dated April 18 , 1985, and shown to be recorded inVolume 16181 Page 111, Real Property Records of DentonCounty , Texas : THENCE Southl along the East boundary line of IndustrialStreet a dIstlance of 138 , 79 feet, mora or less, to a poIntfor corner which is 106.21 feet, more or less, Nortlr of theintersection of the East boundary line of Industrial Streetwith the North boundary lille of Mulberry Street; THENCE East, and parallel with the North boundary line ofMulberry Street a distance of 115.2 feet to a point forcorner i THENCE North, and parallel with the East boundary line ofIndustrial Street1 a distance of 138 , 79 feet, more or less,to a point fOI corner, which is 55, 0 feet South of the Southboundary 11-he of HIckory Street and being the Southeastcorner of said Johnson to Hawk tract;I I i THENCE t7estl and parallel with the South boundary line ofHickory Street1 along the South boundarY line of said ,Johnsonto Hawk tract, 115 , 2 feet to the place of beginning; samealso beIng known and described by the street numbering8ystan of the City of Denton , Texas ,is 103 , 109 and IIIIndustrIal , iI I III HaIn•nlIHllnllIHIRlllln=•l•HIHHHlllnnin EXHIBIT BAPPLICATION AND IMPROVEMENTS Do\v mIo\tn Reinvestment Grant Program Application Please return completed the application with necessary attachments and signatures to the Economic Development 1)cpartnrcnt office at 401 N. Elm St.. Denton. Texas . If you have any application questions, plcasc contact the Economic Development I)epanI trent at 940-349-7776. Applicant Nalne dCmt amc Mailing Addrc=B=// / ZA/Z>a:S Th/aiD ? G£Lo 1/ Con lac I Phone Email Address-tr/ q - I gtTL mOwner (if different f'rolfe applicant) HisloricaJ/£uricnibuildily,NameggJ Project Sitc/Addrcss/// ZAJDuS7 (,aoJa,PH=++-in>Ai a (baA F)’pe of Work: (check all that apply) C] Paint Only D Signage t:I Awnings [] IUIpact Fees tI Utility Upgrades O Interior/Code tnlprovcments FL Facade & Building Renovation Details of'planned improvancnts relating to grant request (attach additional information it galaDe J,_ ;Z=11:raP- / /IAJ nr _aWLCJhay.M__ZaJCek£aaF/OLd&k= 3paRry dvB,An 4,Jr> nap,a Pc) .-3al CamScannera Ha\\ n’ill this project benefit Downtown? iP) £( LZ_--=pOP ==z:acx,a A©–J4na@LLLa# pajl;l=tcgorics Facade/Building Rehab Awnings Signs STpit FeesLa©Made£enCode Improvements Totals EM:i-Costs Grant Requested '"–d /:a TOTAI, COST OF PROPOSED PROJECT IOTAL GRANT REQUEST(May noI exceed 50% of 1’OI'AL C'OS'f up to $50,000)ava Attach all required color samples CIf paint, awnin},/canopy, sign design, etc.. as \veII CISphotographs of building’s exterior facade, roof and foundation. Applicant's Signature Date CamScanner I)( )\\ N it )\\IN 1{1..IN\' tS I'hIll'.N'l' (;l{AN'l' A(;l{l'=J';NIEN’J' I''( )it M \ItcH.„. , ,,11\\dtlr ItIhl Ict tIll\ \\'IIII tltc I )I)wnltlw11 l{cillvc$tlncnl firant Application to the1 , ,,11,,1111, 1 )r\ rh,tIll\cIlt 1\lrlrc, .It)I N, lllnt Sl,. I )ctrlt >II, ’l'cxns. ll'ytlu have any questions, plc.1,r , ,,111,\rt ttte I'rluuulric I )rvclll}nrlcl}I IJcjxll-lIIlunl ilt 1;4f)- 349-7776. 1 ll.\\ , III,-1 \\ tIll n rcplc5„'l)\:Uivc fltlltt IIrc l;.cl)tttrnIiC I)cvclt)pnlcnl I)cparllrlcnt. and I have IF,1,t .til,\ llllt} ruulctsltttttl IIrr I)llwtUtl\yn l<cilrvcstlncnt ( ;rant procedures established by the I t,-III,III I II\ I'lulltril I ilrtctwl III llhu tllis IIrant lrrtIBrnln ftir tIle aforementioned renovation In,\IC, t\ III il,Iv;Inrc tIrr cIFluIs ttl lcvililli/nliln I ilnrl Irisitl>ric l>rcscrvatitnl tIf I)cnton's historic,11,\\ t it,t\\ II I //, ivr InN /I 'r'l'r y, r /, IIt)I- \till I rt’t't•ivr irlxllrtlncc lnonit’s /or lllis rcvilalization llr'lrl\•\'I 1 tIll,Irl *t.III,I tIlIII iI- I illll iI\v;llllrtl ir I)tl\vttttr\\ n l<cillvcsllrlcnt (irallt by thc City of I)enton, .III\ ,1l'\ I.III,Ill Itllltt tllc ,ljrlull\’cII Iv\rjccI lrrily rcs.uIl in tIle jxlrtiill c)r total \vilhdrawal of the ,'I.IIII iII I .tI11 :1\\ .111ll-II ;I tclltvr\llllCIII FriIIII Il>r IIlc:lclc. awning or sign work and the I.I, .I,I,-. \It'll ,tr ,t\\ 111111' IS illlt-It'll ItII IIlly Iciist in witllin one (1 ) year [r(Im construction, I III.I\ it, It'ljlllrt'l{ ILI trllllllttt \r IIte ( 'ily trl' I)cnltrlr i11}11rcdiatcly for the full amount of the tel + 1111 t - lil E, i/ F:-->_& /,fl- ' C BAL,6/C f - -ZHz„_-li11\III, \\ t Jrrtjl11 ’11111}tI .\II//ll' 5 /Z,/it g£.M,e aJ C£_&r'G IFP ljlrl II, 11111 '\ .\:IFrllllllrr llrlltlctl Ntlnlc Date L' /j'I‘N4ri I VH Blah+oR ,t7HS tee' /na55cy 1;111i,i1,1v. 1 /11 11t'r ' \\ SIr?ltltjtl r (II 11111,'rctIt Irt jIll tljrl)iicllt it) lirintctl Name 7u6 Date 1 },1.. .c, 11„11 1 b 111 lx' cc1111IJICICtl I)y l"c(lllt}lllic I)cvclojllncnt SInK. I Jlrfl I tItt\tch't rtl by IIP:I X Iturl)llll)lrnclllliull Slcl8' Signature 1 1,llc ,.tlrl\itl,tt’tlttv I't tt /. II I lllrrIFtl l{\'c£rllll tlr lltltllit III St u.IT SiFttIal ure II,ttc ct +ll\tdcrctl hv C' itv ('trttncil Al)I)rovtll StafF Signature CamScannera ==••lnHl• 11 < 1, ii t- }. : + i b L'.’'., ' it. 1 \{1 .Tb-I -=+'h' = = a t / i ' t&\bJ f.I Oh 'D fU a)'lhhe0LaC a)0rDLb-a)D rD rD+(JUIa)IILb-tri L-0 ErDWUD£aQCL UC 0Da)\D a)oE aC(lieWa)CC>a)a0fU elibal 8- eHCa)D Cg .g 0 CL ' ar+J 3 T T-a aJ rD 1: nI OH :::)1iA a)w-IBDq-a 0LnBT >o\+-L)aJ a)C 0+a) LaL-3Ea J,a Pi it + g 0 0UaJraI crDLr)J-)C FI al aLOel al\a)CIBal BFxaa)a)triLnLn',>1 C)a)al >0 al++rIglUOF)B >a) Sr !a)>a)Wtri Agreement_Steves Wine Bar Final Audit Report 2022-08-12 Created:2022-08-12 By: Status: Christina Davis City of Denton (christina.davis@cityofdenton.com) Signed Transaction ID CBJCHBCAABAAEwEKatnPXKDiRvxtVu49gbB-VW63yBNB "Agreement_Steves Wine Bar" History do Document digitally presigned by Scott Bray (Scott.Bray@cityofdenton.com) 2022-08-09 - 7:56:36 PM GMT- IP address: 198.49.140.104 tS Document created by Christina Davis City of Denton (christina.davis@cityofdenton.com) 2022-08-12 - 6:22:30 PM GMT- IP address: 198.49.140.104 F+Document emailed to Steve Severance (steve@steveswinebar.com) for signature 2022-08-12 - 6:23:14 PM GMT D a) O Email viewed by Steve Severance (steve@steveswinebar.com) 2022-08-12 - 7:01 :41 PM GMT- IP address: 47.32.197.131 Document e-signed by Steve Severance (steve@steveswinebar.com) Signature Date: 2022-08-12 - 7:07:54 PM GMT - Time Source: server- IP address: 47.32.197.131 Agreement completed. 2022-08-12 - 7:07:54 PM GMT Adobe Acrobat Sign