22-2567ORDINANCE NO. 22-2567
AN ORDINANCE OF THE CITY OF DENTON ADOPTING AN UPDATED DOWNTOWNREINVESTMENT GRANT PROGRAM POLICY FOR THE DOWNTOWN
REINVESTMENT GRANT PROGRAM; PROVIDING A REPEALER; AND PROVIDINGAN EFFECTVE DATE.
WHEREAS, on February 14, 2007, the Downtown Task Force (now Downtown
Economic Development Committee) unanimously recommended creating an incentive program
to promote desired development/redevelopment in the downtown area of the City of Denton; and
WHEREAS, on April 3, 2007, the City Council of the City of Denton adopted the
Downtown Incentive Reimbursement Grant Program; and
WHEREAS, Ordinance No. 2010-316 designated Tax Increment Financing Reinvestment
Zone No. One (“Downtown TIRZ”), as provided by the Tax Increment Financing Act, Chapter
311 of the Texas Tax Code (the “Act”), to provide funding necessary to encourage development
in downtown Denton; and
WHEREAS, on December 7, 2010, the City Council authorized the Project and Finance
Plans for the Downtown TIRZ, which authorizes the creation and expenditure of the Downtown
TIRZ fund for purposes authorized by the Act, and
WHEREAS, on September 10, 2018, the City Council adopted Ordinance No. 18-1321
approving changes to the funding source, policy, and procedures for the Downtown
Reinvestment Grant Program; and
WHEREAS, on August 18, 2020, the City Council adopted Ordinance No. 20-1521
approving changes to the maximum available grant award for the Downtown Reinvestment
Grant Program; and
WHEREAS, on December 14, 2021, the City Council adopted Ordinance No. 21-2626
approving changes to the maximum available grant award and limiting the number and timing of
grants for properties that have already been improved using grants from the Downtown
Reinvestment Grant Program; and
WHEREAS, the Downtown TIRZ Board of Directors and 'the Downtown Economic
Development Committee have recommended changes to the Downtown Reinvestment Grant
Program Policy and the City Council reviewed the recommendations and finds that changes to
the Downtown Reinvestment Grant Program Policy are eligible project costs in accordance with
the Act and the Downtown TIRZ Project and Finance Plans, and benefit the Downtown TIRZ by
stimulating economic development of downtown; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The City Council of the City of Denton hereby approves the changes to the
Downtown Reinvestment Grant Program Policy, which is attached to and made a part of this
ordinance for all purposes.
SECTION 2. All provisions of any Downtown Reinvestment Grant Program Policy
adopted prior to this ordinance, and all ordinances of the City of Denton in conflict with the
provisions of this ordinance as related to Downtown Reinvestment Grant Program Policy, are
hereby repealed, and all other provisions of the ordinances of the City of Denton not in conflict
with the provisions of this ordinance shall remain in full force and effect.
SECTION 3. This Ordinance shall become effective immediately upon its passage and
approval.
d eT:y m o t i o n \II}re :Pr E= = d i n a n c e xv a s m: k Tr d i nance == eL: P prove daEthe following vote U -al :
Aye
\/
Ipr
F
Nay Abstain Absent
Gerard Hudspeth, Mayor:
Vicki Byrd, District 1 :
Brian Beck, District 2:
Jesse L. Davis. District 3 :t/r
Vacant, District 4:
Brandon Chase McGee, At Large Place 5 :yr
//Chris Watts, At Large Place 6:
PASSED AND APPROVED thi, th, Jqhday of Ja 2023
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ATTEST:
ROSA RIOS, CITY SECRETARY L\\\\ t VIII IIp
b_p?z34 >
APPROVED AS TO LEGAL FORM:
MACK REINWAND, CITY ATTORNEY
BY:Ad%Digitally signed by Scott BrayDate: 2023.01.20 1 2:37:22
-06'OO'
DOWNTOWN REINVESTMENT GRANT PROGRAM POLICY
r. GENERAL PURPOSE AND OBJECTIVES
The City of Denton’s Department of Economic Development promotes Denton and its
unique character through the redevelopment and revitalization of Downtown, historicpreservation, community involvement, and by providing educational and technicalassistance to business and property owners. With Downtown as a key focus area of
Denton’s economic development program, the City Council adopted the followingDowntown Reinvestment Grant Program.
Applications shall be submitted on the application form attached hereto as Exhibit “A“ andincorporated herein for all purposes, and are considered as they are received, and may be
funded, if approved, until funds are depleted.
II. GRANT GUIDELINES
1. Facade rehabilitation grant funds are available for exterior work on building facades that
immediately overlook public streets located in the Downtown area as defined by theDowntown Tax Increment Financing Reinvestment Zone Number One – Downtown
(TIRZ #1), see attached map, page 5.
2. Roof and foundation work on commercial buildings in the TIRZ #1 area may also be
eligible for grant funds, providing costs do not exceed 50% of the grant request.
3. Interior and Code Improvement work includes asbestos and mold abatement, fire
suppression systems, and improvements required by or in accordance with the Americans
with Disabilities Act, as amended.
4. No grant applications will be accepted for work that has already been started or completed,
or for work that is covered by insurance.
5. Grants are awarded on a reimbursement basis once completed work has been verified byCity staff as compliant with the plans proposed in the approved application. Anydeviation from the approved project may result in the total or partial withdrawal of the
grant. Grants are awarded as a single payment to the applicant.
6. All submitted work will be reviewed based on the Secretary of the Interior’s Standards
for Rehabilitation, as amended, and the City of Denton’s Municipal Codes and Ordinances.
7.Grant applications and awards can be made in any of the reimbursable activities listed inSection III and may be combined for any single property or project. However, the
maximum award amount available per property is$50,000. Grants or portions of grants
for Fire Suppression Systems do not count toward the maximum award amount available
per property.
8. The maximum available grant award is $50,000 per application but there is no limit to the total
amount of grant funds that can be awarded per property. Grants or portions of grants for Fire
Suppression Systems do not count toward the maximum available grant award per application.
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9.An applicant is defined as an eligible property or business owner within the TIRZ # 1
area. A single owner of multiple properties may apply for grant funds for each property
owned but may not receive more than $50,000 per property per application. Grants or
portions of grants for Fire Suppression Systems do not count toward the maximum available
grant award per property per application.
10. If an applicant is awarded a reinvestment grant for a property, that property is not eligible for
another grant for three (3) years from the date of grant approval, unless the original or new
grant would be solely for a Fire Suppression System or unless the property is sold or
transferred to another owner or is occupied by a new or different business.
11. If an applicant is 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, the
applicant may be required to reimburse the City of Denton immediately for the full amount
of the grant.
12. Projects will be reviewed and ranked with the following considerations in mind:
• Project results in an increase in property valuation and/or generates sales tax revenue
• Project rehabilitation reflects historic accuracy
• Project improves the capacity of water, wastewater or electric utility services
• Projects provides improvements to health and safety
• Water/Wastewater impact fees are assessed• Project results in a significant increase in downtown population (residents and/or day or night
users). Other appropriate impacts may be considered on a case-by-case basis, including, but not
limited to: partners with other businesses (i.e., shared parking), project is a “target“ business (i.e.,
grocery, pharmacy, etc.), and/or promotes development of arts and entertainment downtown.
Ill. PROGRAM DETAILS
Reinvestment grants are available for the following types of projects:
Facade Rehabilitation and Building RenovationDefinition:
Removing slipcovers or non-historic/added facades, repainting brick or replacingmortar joints, replacing or restoring cornices, removing paint from brick, replacing
windows, restoring transom windows, painting, roof and foundation work.
Grant Limits:
Facade rehabilitation and building grants are limited to a 50% match of the eligible
projects costs, with a cap of $50,000 per grant for facade, roof and foundation work.Roof and foundation repair may constitute no more than half of the request and shall
only be considered for funding if included as a portion of a larger project.
Paint-only grants are limited to a 50% match with a cap of $7,500 per grant.
Awnings and SignsDefinition:
Replacing, adding or repairing awnings and signs. Signs may include signboards,projecting signs and pedestrian signage (includes window sign, hanging sign and
awnIng/canopy SIgn).
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Grant Limits:
Awning grants are limited to a 50% match with a cap of $7,500 per grant. Sign grants
are limited to a 50% match with a cap of $2,500 per grant.
Impact Fee ReimbursementDefinition:
Reimbursement for City of Denton water and wastewater impact fees.
Grant Limits:
Impact Fee grants are limited to a 50% match with a cap of $50,000 per grant.
Utility UpgradesDefinition:
Upgrades to water, wastewater and electrical service, includes interior upgrades as
well as exterior service upgrades.
Grant Limits :
Utility Upgrade grants are limited to a 50% match with a cap of $50,000 per grant.
Interior/Code ImprovementsDefinition:
Asbestos and mold abatement and improvements made as required by or in accordance with theAmericans with Disabilities Act, as amended.
Grant Limits: Interior/Code Improvement grants are limited to a 50% match with a cap of
$50,000 per grant.
Fire Suppression SystemsDefinition:
Installation of a new fire suppression system or necessary updates to an existing fire suppression
system in accordance with International Fire Code (IFC) and International Building CodeChapter 9, currently followed by City of Denton.
Grant Limits: Fire Suppression System grants are limited to a 50% match with a cap of $50,000
per grant.
IV. GRANT APPLICATION PROCESS
1.Contact the Economic Development department to discuss the project and determine eligibility.If requested, a staff member with the Economic Development department will set up anappointment with the Texas Main Street Center’s Architectural Assistance Program, which
provides free assistance in selecting paint, color schemes and building and sign materials forbuilding fagade and signs.
2. Complete the grant application form and sign the agreement form. Return the completedapplication form with all original itemized work estimates, color samples, drawings andexample sign material of the proposed work to the Economic Development office at 401 N.
Elm Street. Applications should include:
a. Drawings of all proposed grant work to be done. Drawings may be prepared by the Texas
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Main Street Architect, the project architect, or contractor. Color samples of all final paint
selections and/or final building or sign material selections must be included with the
application.
b. Itemized work estimates on all project work from contractors or project architects must be
included with the application. (Self-contracted work will be reimbursed for eligible
expenses, excluding labor.)
c. Photos of the building’s exterior, interior, roof or foundation (areas where work is to be
performed).
d. Legal description of the property.
3. The approval process will include without limitation the following:
a. All projects must meet current building standards and codes, as well as building permit
requIrements.
b. Applicants are required to attend and present their project to the Downtown
Economic Development Committee (DEDC), the Downtown TIRZ Board, and CityCouncil.
The DEDC meets monthly, as needed. The DEDC will score applications and makea recommendation to the TIRZ #1 Board.
Grants then must be reviewed by the TIRZ # 1 Board. The TIRZ #1 Board will make
a recommendation to the Denton City Council. The TIRZ meets bi-monthly and will
review submitted applications and consider the DEDC’s recommendation.
C.If recommended by the TIRZ #1 Board, grants will be placed on the Denton City
Council agenda. The DEDC and TIRZ #1 Board recommendations are advisory only,and no recommendation shall be binding on the Denton City Council. The Denton
City Council has the final discretion with regard to funding and reserves the right tomodify or reject any project or elements of any project.
d. Applications must be complete and contain all required information. Additional
information requested by the DEDC, TIRZ #1 Board or the Denton City Council
must be provided prior to consideration of the grant.
e.All construction bids submitted by an applicant must be current and must be dated no
earlier than ninety (90) days prior to the application request. Bids shall be submitted
on the contractor’s or project architect’s letterhead and shall contain the contractor’s
name, address, and telephone number and shall itemize the bid in a manner that allows
the DEDC, TIRZ #1 Board and Denton City Council to determine the bid components
and authenticity of the bid.
f. An applicant whose application that has been denied by the Denton City Council shall
not be eligible to re-submit a grant application for six (6) months from the date the
prior application was declined by the Denton City Council.
g. Applicants receiving approval shall commence construction described within the
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application within ninety (90) days from the date the grant is awarded. All applicants
must complete the construction described in the application within one (1 ) year fromthe date the grant is approved. If the applicant is unable to commence construction
within ninety (90) days from the date the grant is approved or complete construction
within one (1) year from the date the grant is approved, the applicant may submit a
written request for an extension for the commencement date or completion date
provided the extension request is made prior to the ninety (90) day or one (1 ) year timelimit. The DEDC, TIRZ #1 Board or Denton City Council shall not be obligated to
allow extensions but may do so for good cause determined solely by the entity which
authorized the grant. The extensions, if granted, shall be for the term and for theconditions determined exclusively by the entity which authorized the grant. An
extension denial cannot be appealed and shall be final.
h.As a condition of the grant, the applicant consents and shall allow Economic
Development staff to request City inspections to determine that the grant, if awarded,
will not be used for construction on any building that is not in compliance with the
City Municipal Codes and Ordinances that are applicable to the construction
contemplated in the application.
i. No applicant has a proprietary right to receive grant funds. Each request will be
considered on a case-by-case basis.
j. The applicant shall be required to furnish photographs of the building’s exterior,roof and foundation after the construction is completed, as a condition of final
grant reimbursement.
k. The applicant is required to obtain all applicable City permits and City approvals
required for the construction if a grant is awarded.
1. An applicant should attend DEDC, TIRZ #1 Board, and Denton City Councilmeetings in which consideration of the application occurs.
4 Reimbursement: When the grant project has been satisfactorily completed and
reviewed, the applicant shall present the Economic Development office with copies of
all paid invoices, including copies of cancelled checks and/or credit card receipts, for a
single payment reimbursement of the approved funding. In addition, the applicant must
complete a City of Denton Vendor Form and a Form 1099 to receive payment from the
City. Vendor forms and 1099s will be provided by the Economic Development
Department.
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EXHIBIT A
DENTON
CITY OF DENTONDOWNTOWN REINVESTMENT GRANT PROGRAM APPLICATION
Department of Economic Development401 N. Elm St., Denton, TX 76201
940-349-7776
www.cityofdenton.com
ED@cityofdenton.com
Downtown Reinvestment Grant Program Application
Please return completed the application with necessary attachments and signatures tothe Economic Development Department office at 40 1 N. Elm St., Denton, Texas. If
you have any application questions, please contact the Economic Development
Department at 940-349-7776.
Applicant Name
Business Name
Mailing Address
Contact Phone Email Address
Building Owner (if different from applicant)
Historical/Current Building Name
Project Site/Address
Type of Work: (check all that apply)
D Paint Only [] Awnings
[] Signage [] Impact Fees
[] Utility Upgrades a Interior/Code Improvements
[] Facade & Building Renovation [] Fire Suppression System
Details of planned improvements relating to grant request (attach additional information if
necessary) .
How will this project benefit Downtown?
Legal Description of the property :
Project Categories
Facade/Building Rehab
Awnings
Signs
Impact Fees
Utility Upgrades
Interior/Code Improvements
Fire Suppression System
Totals
Estimated Costs Grant Requested
TOTAL COST OF PROPOSED PROJECT S
TOTAL GRANT REQUEST $(May not exceed 50% of TOTAL COST up to $50,000)
Attach 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 Date
DOWNTOWN REINVESTMENT GRANT AGREEMENT FORM
Please complete and return with the Downtown Reinvestment Grant Application to the
Economic Development office, 401 N. Elm St., Denton, Texas. If you have any questions,
please contact the Economic Development Department at 940- 349-7776.
I have met with a representative from the Economic Development Department, 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 1 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 facade, awning or sign work and the
facade, sign or awning is altered for any reason within one (1) year from construction, 1
may be required to reimburse the City of Denton immediately for the full amount of the
grant.)
Business/Organization Name
Applicant’s Signature Printed Name Date
Building Owner’s Signature (i/cmerent from applicant) Printed Name Date
This section is to be completed by Economic Development staff.
Date considered by DEDC Recommendation Sta# Signature
Date consideredby TIRZ #1 Board Recommendation Staff Signature
Date consideredby City Council Approval Staff Signature
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REVIEW PROCESS
Total project scores can range from 0 to 35 points.
Recommendations will be based on:
0-9 points
10- 14 points
15-19 points
20-24 points25-29 points
30-40 points
No funding
Grant recommendation of up to $7,500
Grant recommendation up to $ 15,000
Grant recommendation up to $25,000
Grant recommendation up to $35,000
Grant recommendation up to $50,000
All grants will be subject to a recommendation by the Downtown Economic Development Committee, TIRZ # 1
Board, and approval by the Denton City Council.
Grant applications will be scored based on:• Economic Impact - 0-5 Points
o Total investment dollars as provided in the grant application
o Investment in structure construction or renovation (excluding purchase price)
o Investment in furniture, fixtures and equipment; estimated taxable sales
• Historic Accuracy/Design - 0-5 Points
o New construction/complements existing buildings
o Restores building to historic accuracyo Renovation of building with historicmarker (Local, state or national historic marker)
•Upgrades to Utilities/Impact Fees - 0-5 Points
Requires upgrades in electrical service
Increases existing water/wastewater capacity
No existing utilities to structure
Extends water/wastewater lines (improves additional properties)
Impact fees may be ranked depending upon percentage of fees to eligible expenses
0
0
0
0
0
•Increases Population - 0-5 Points
o Increases consumer traffic (day or night)
o Increases quality residential units
o Increases walkability or pedestrian activity/accessiblity
Interior/Code Improvements - 0-5 pointso Asbestos and mold abatement
o Fire suppression systems
o ADA improvements
Other - 0-15 Points
Including, but not limited to:
o Partners with other businesses (i.e., shared parking)o Project is a ’'target" business (i.e., grocery, pharmacy, locally owned)
o Promotes development of Denton arts and entertainment
o Longevity of business
• Fire Suppression System – 40 points
o Fire Suppression Systems applications automatically receive the maximum score
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