2008-006s:\our documents\ordinances\0Ma1di tax abatement agr ord.doc
ORDINANCE NO. of Aa -.eOU/
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE MAYOR TO
EXECUTE AN AMENDMENT TO THAT CERTAIN TAX ABATEMENT AGREEMENT
WITH ALDI (TEXAS) L.L.C. APPROVED BY THE CITY COUNCIL ON AUGUST 21, 2007,
BY PROVIDING THAT, AS A CONDITION OF THE ABATEMENT, ALDI SHALL
CONSTRUCT A CERTAIN PORTION OF WESTCOURT ROAD TO SPECIFICATIONS
ACCEPTABLE TO THE CITY OF DENTON AND FURTHER PROVIDING THAT THE
CONSTRUCTION OF WESTCOURT ROAD SHALL BE COMPLETED AND ACCEPTED
BY THE CITY OF DENTON PRIOR TO THE ISSUANCE OF TAX ABATEMENT BY THE
CITY OF DENTON; PROVIDING FOR A SEVERABILITY CLAUSE; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, on August 21, 2007 the City Council approved a Tax Abatement Agreement
(existing agreement) with Aldi (Texas) L.L.C.; and
WHEREAS, the Agreement required.Aldi to construct Westcourt Road, from Airport
Road south to Springside Road (a distance of approximately 4,200 linear feet) as a two-lane,
concrete road to specifications acceptable by the City of Denton; and
WHEREAS, the construction of Westcourt Road was required to be completed and
accepted prior to the issuance of a Certificate of Occupancy by the City of Denton; and
WHEREAS, due to conditions beyond the control of Aldi, the design and construction of
Westcourt Road may extend beyond the completion of the Aldi distribution facility; and
WHEREAS, the Economic Development Partnership Board recommends Aldi be
permitted to obtain its certificate of occupancy upon completion of all other required
construction, except the construction of Westcourt Road; and
WHEREAS, the Economic Development Partnership Board recommends the granting of
tax abatement be withheld until completion of construction of Westcourt Road in lieu of the
certificate of occupancy; NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION 1. The findings set forth in the preamble of this ordinance are incorporated by
reference into the body of this ordinance as if fully set forth herein.
SECTION 2. The City Council approves the withholding of the tax abatement until
completion of construction of Westcourt Road in lieu of the certificate of occupancy.
SECTION 3. Notwithstanding any Code provisions to the contrary, the Building
Official is empowered to issue building permits and certificates of occupancy for the proposed
Distribution Center, prior to the completion of Westcourt Road, provided that Aldi (Texas) LLC
has deposited with City sufficient funds to secure such road construction.
Oour documents\ordinances\08\a1di tax abatement agr ord.doe
SECTION 4. That if any section, subsection, paragraph, sentence, clause, phrase, or
word in this Ordinance, or application thereof to any person or circumstance is held invalid by
any court of competent jurisdiction, such holding shall not affect the validity of the remaining
portions of this Ordinance, the City Council of the City of Denton, Texas, hereby declares that
they would have enacted such remaining portions despite any such invalidity.
SECTION 5. This Ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the day of , 2008.
eP-J'61N(-h.JV
PERK R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY.
BY:
BY:
Page 2
EDWIN M. SNYDER, CITY ATTORNEY
sAour doeuments\contracts\08ta1di amended tax abatement-westeourt rd.doc
AMENDMENT TO A TAX ABATEMENT AGREEMENT
BETWEEN THE CITY OF DENTON, TEXAS
AND ALDI (TEXAS) L.L.C.
This Amendment to the Tax Abatement Agreement (the "Amendment") is made and entered
into as of the effective date provided for below, by and between Aldi (Texas) L.L.C., a Texas limited
liability company ("Aldi"), and the CITY OF DENTON, a Texas municipal corporation (the "City"),
for the purposes and considerations stated below:
WHEREAS, on August 21, 2007, the City Council approved a Tax Abatement Agreement
with Aldi (Texas) L.L.C. (the "Existing Agreement"); and
WHEREAS, the Existing Agreement required Aldi to construct Westcourt Road, from Airport
Road south to Springside Road (a distance of approximately 4,200 linear feet) as a two-lane, concrete
road to specifications acceptable by the City of Denton; and
WHEREAS, the Existing Agreement requires that the construction of Westcourt Road is to be
completed and accepted prior to the issuance of a Certificate of Occupancy by the City of Denton;
and i
WHEREAS, due to conditions beyond the control of Aldi, the design and construction, of
Westcourt Road may extend beyond the date of completion of Westcourt Road; and
WHEREAS, the Economic Development Partnership Board recommends Aldi be permitted to
obtain its certificate of occupancy upon completion of all other required construction, with the
exception of the construction of Westcourt Road; and .7.
WHEREAS, the Economic Development Partnership Board recommends the granting of tax
abatement be withheld until completion of construction of Westcourt Road, and that the certificate of
occupancy not be conditioned on the completion of construction of Westcourt Road;
NOW THEREFORE, the City and Aldi (Texas) L.L.C. covenant and agree as follows:
I. Paragraph LF of the Existing Agreement is hereby amended as follows: "A condition of the
Abatement is that the Owner shall construct Westcourt Road, from Airport Road south to
Springside Road (a distance of approximately 4,200 linear feet), as one-half of a secondary
arterial concrete road and to specifications acceptable by the City of Denton. Such
construction of Westcourt Road must be completed and accepted prior to the issuance of.tax
abatement by the City of Denton. In addition, Owner agrees to enter into an agreement with
the City of Denton for the construction of Westcourt Road prior to receipt of Owner.'s
building permit and to deposit funds, to be held by the City, in an interest bearing account, for
said construction from which Owner may draw to pay its contractor or from which the City
may draw for the purposes of building Westcourt Road in the event that Owner fails to
construct Westcourt Road within orie (1) year after receipt of Owner's certificate i of
i
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s:\our documents\eontracts\08Wdi amended tax abatement-westeourt rd.doc
occupancy. Construction of Westcourt Road shall not be a condition to the issuance of a
Building Permit or Certificate of Occupancy by the City of Denton."
2. All other terms and conditions of the Existing Agreement shall remain in full force and effect.
3. This Amendment shall be effective as of the last date of signature of a party as indicated
below ("The Effective Date").
CITY OF DENTON, TEXAS
ATTEST:
JENNIFER WALTE S, CITY SECRETARY
B .
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
BY: ckaw"'
PERRY cNEILL, MAYOR
DATE: 1 1 gl4g o aY b
ALDI (TEXAS) L.L.C.
A Texas limited liability company
BY: ALDI INC. (DELAWARE)
A Delaware corporation,
Sole Member /f ,
BY: ol~ OOC.04 Ih/.:wa~YZ:ZrJ
SCOTT HUSKA, Vice President
DATE: O ihw W
ATTEST:
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