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2008-029s:\our documents\ordinances\08\020508 aldi ord.doc ORDINANCE NO.6?60 -039 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DENTON; TEXAS, ORDAINING THE CITY'S PARTICIPATION IN THE TEXAS ENTERPRISE ZONE PROGRAM PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT, CHAPTER 2303, TEXAS GOVERNMENT CODE (ACT), PROVIDING TAX INCENTIVES, DESIGNATING A LIAISON FOR COMMUNICATION WITH INTERESTED PARTIES, AND NOMINATING ALDI (TEXAS) L.L.C. TO THE OFFICE OF THE GOVERNOR ECONOMIC DEVELOPMENT & TOURISM (EDT) THROUGH THE ECONOMIC DEVELOPMENT BANK (BANK) AS AN ENTERPRISE PROJECT (PROJECT); ESTABLISHING THE BOUNDARIES OF SAID ZONE, AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Denton, Texas desires to create the proper economic and social environment to induce the investment of private resources in productive business enterprises located in severely distressed areas of the city and to provide employment to residents of such area; and WHEREAS, the project or activity is located within the proposed enterprise zone; and WHEREAS, pursuant to Chapter 2303, Subchapter F of the Act, Aldi (Texas) L.L.C. has applied to the City for designation as an enterprise project; and WHEREAS, the City finds that Aldi (Texas) L.L.C. meets the criteria for tax relief and other incentives adopted by the City on the grounds that it will be located at the qualified business site, will create a higher level of employment, economic activity and stability; and WHEREAS, a public hearing to consider this ordinance was held by the City Council at or after 6:30 p.m. on February 5, 2008 in the City Council Chambers of the City of Denton at 215 East McKinney Street in the City of Denton, such date being at least seven days after the date of publication of notice of such public hearing; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS: SECTION 1. The City nominates Aldi (Texas) L.L.C. for enterprise project. SECTION 2. The following local incentives, at the election of the governing body, are or will be made available to the nominated project or activity of the qualified business: a) The City may abate taxes on the increase in value of real property improvements and eligible personal property that locate in a designated enterprise zone. A minimum of $5 million capital investment is required to apply. The extent to which 'the business receives the abatement depends upon the history and philosophy of the firm, project specifications, and the potential impact on the sAour documents\ordinances\08\020508 aldi ord.doc community. The City may offer the following incentives for businesses meeting the applicable requirements: reduced electrical utility rates, reduced infrastructure costs, grants based on new sales tax or ad valorem tax revenues generated by a company or development, triple freeport tax exemption, and industrial revenue bonds. b) The City may provide regulatory relief to businesses, including: 1) zoning changes or variances; 2) streamlined permitting. C) The City may provide enhanced municipal services to businesses, including: 1) improved police and fire protection; 2) institution of community crime prevention programs; or 3) special public transportation routes or reduced fares. d) The City may provide improvements in community facilities, including: 1) capital improvements in water and sewer facilities; C) The City may provide improvements to housing, including: 1) low-interest loans for housing rehabilitation, improvement, or new construction; or 2) transfer of abandoned housing to individuals or community groups. f) The City may provide business and industrial development services, including: 1) provision of publicly owned land for development purposes, including residential, commercial, or industrial development; 2) creation of special one-stop permitting and problem resolution centers or ombudsmen; or 3) promotion and marketing services. SECTION 3. The enterprise zone areas within the City are reinvestment zones in accordance with the Texas Tax Code, Chapter 312. SECTION 4. The City of Denton City Council directs and designates City Economic Development Director Linda Ratliff as the City's liaison to communicate and negotiate with the EDT through the Bank and enterprise project(s) and to oversee zone activities and communications with qualified businesses and other entities in an enterprise zone or affected by an enterprise project. SECTION 5. The City finds that Aldi (Texas) L.L.C. meets the criteria for designation as an enterprise project under Chapter 2303, Subchapter F of the Act on the following grounds: (a.) Aldi (Texas) L.LtC. is a "qualified business" under Section 2303.402 of the Act since it will be engaged in the active conduct of a trade or business at a qualified business site located in an enterprise zone in the governing body's jurisdiction and Page 2 Oour documents\ordinances108\020508 aldi ord.doc at least twenty-five percent (25%) of the business' new employees will be residents of an Enterprise Zone or economically disadvantaged individuals. (b.) The property included within the boundaries of the proposed Aldi (Texas) L.L.C. Enterprise Zone represents the company's 120 acre distribution center site on Westcourt Road and Spring Side Road as defined in Exhibit "A" and shown on Exhibit "B". SECTION 6. The enterprise project shall take effect on the date of designation of the enterprise project by EDT on March 3, 2008 and terminate on March 3, 2013. SECTION 7. This ordinance shall take effect from and after its passage as the law and charter in such case provides. PASSED AND APPROVED this the STIJ day of 2008. PERRY R. McNEILL, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY BY: APPR VED A TO LEGAL FORM: EDWIN M. SNYDER, CITY ATTORNEY BY: Page 3 EXHIBIT "A" PROPERTY DESCRIPTION ALDI (TEXAS) LLC ENTERPRISE ZONE ALDI (TEXAS) L.L.C. ENTERPRISE ZONE WILL BE COMPOSED OF APPROXIMATELY 120 ACRES OF LAND OUT OF WILLIAM NEILL, SURVEY ABSTRACT No. 970, JOHN BACON SURVEY, ABSTRACT NO. 1540, ISAAC N. HAMBREE SURVEY, ABSTRACT NO. 594, AND JEREMIAH DALTON SURVEY, ABSTRACT NO. 353 DENTON COUNTY, TEXAS. THE ALDI (TEXAS) LLC ENTERPRISE ZONE AREA IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEING A 120 ACRE TRACT OF LAND SITUATED IN THE WILLIAM NEILL SURVEY, ABSTRACT NO. 970, THE JOHN BACON SURVEY, ABSTRACT NO. 1540, THE ISAAC N. HAMBREE SURVEY, ABSTRACT NO. 594 AND THE JEREMIAH DALTON SURVEY, ABSTRACT NO. 353, CITY OF DENTON, DENTON COUNTY, TEXAS AND BEING A PORTION OF THAT CALLED 2049.00 ACRE TRACT OF LAND DESIGNATED AS "TRACT 1: NORTH TRACT" IN THE DEEDS TO SLF II COLE PROPERTY, L.P. RECORDED IN COUNTY CLERK'S FILE NUMBERS 2005-12276, 2005-12277 AND 2005-12278 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, (DRDCT), SAID 120 ACRE TRACT OF LAND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT A 112-INCH IRON ROD FOUND FOR THE SOUTHEAST CORNER OF THE SOUTHEAST AIRPORT ADDITION, AN ADDITION TO THE CITY OF DENTON DESCRIBED BY PLAT RECORDED IN VOLUME G, PAGE 295, PLAT RECORDS OF DENTON COUNTY, TEXAS SAME BEING A NORTHEAST CORNER OF SAID 2049.00 ACRE TRACT OF LAND AND BEING IN THE APPROXIMATE CENTERLINE OF WESTCOURT ROAD; THENCE SOUTH 00°03'56" EAST GENERALLY ALONG THE CENTERLINE OF SAID WESTCOURT ROAD, A DISTANCE OF 1151.07 FEET TO A 5/8-INCH IRON ROD FOUND CORNER IN THE APPROXIMATE CENTERLINE OF SPRING SIDE ROAD; THENCE NORTH 89°05'32" EAST ALONG A LINE IN SAID SPRING SIDE ROAD, A DISTANCE OF 870.18 FEET TO A 1/2-INCH IRON ROD WITH CAP STAMPED "RPLS 4562" FOUND FOR CORNER ON THE EAST SIDE OF UNDERWOOD ROAD; THENCE ALONG THE EAST SIDE OF SAID UNDERWOOD ROAD, THE FOLLOWING SOUTH 00°51'18" EAST, A DISTANCE OF 646.53 FEET TO A 5-INCH STEEL POST FOUND FOR CORNER; SOUTH 01°32'26" EAST, A DISTANCE OF 644.99 FEET TO A 5-INCH STEEL POST FOUND FOR CORNER; SOUTH 01°23'09" EAST, A DISTANCE OF 547.58 FEET TO A 5/8-INCH IRON ROD FOUND FOR CORNER; SOUTH 00°42'07" EAST, A DISTANCE OF 344.00 FEET TO A 1/2-INCH IRON ROD FOUND FOR CORNER; SANCENTIVES\INCENTIVE AGREEMENTMALDI\Aldi Enterprise Zone\Ordinance\EXHIBIT A ENTERPRISE ZONE PROPERTY BOUNDARIES.doc Page 1 of 3 THENCE SOUTH 89°15'29" WEST CROSSING SAID UNDERWOOD ROAD, A DISTANCE OF 125.00 FEET TO A POINT FOR CORNER; THENCE NORTH 54°18'23" WEST, A DISTANCE OF 3017.83 FEET TO A POINT FOR CORNER IN THE EAST LINE OF THAT CALLED 31.107 ACRE TRACT OF LAND DESCRIBED IN THE JUDGMENT DEED TO THE CITY OF DENTON, TEXAS RECORDED IN COUNTY CLERK'S FILE NUMBER 94-71013, DRDCT; THENCE NORTH 07°50'48" WEST ALONG SAID EAST LINE, A DISTANCE OF 200.00 FEET TO A 1/2-INCH IRON ROD FOUND FOR THE NORTHEAST CORNER OF SAID 31.107 ACRE TRACT OF LAND SAME BEING THE SOUTHEAST CORNER OF THAT CALLED 13.89 ACRE TRACT OF LAND DESCRIBED IN THE JUDGMENT DEED TO THE CITY OF DENTON, TEXAS RECORDED IN VOLUME 871, PAGE 137, DRDCT; THENCE NORTH 00°24'11" EAST AT A CALLED DISTANCE OF 500 FEET PASSING THE NORTHEAST CORNER OF SAID 13.89 ACRE TRACT OF LAND SAME BEING THE SOUTHEAST CORNER OF THAT CALLED 24.73 ACRE TRACT OF LAND DESCRIBED IN SAID JUDGMENT DEED TO THE CITY OF DENTON, TEXAS RECORDED IN VOLUME 871, PAGE 137, DRDCT, CONTINUING ALONG EAST LINE OF SAID 24.73 ACRE TRACT OF LAND IN ALL FOR A DISTANCE OF 700.05 FEET TO A 1/2-INCH IRON ROD FOUND FOR CORNER; THENCE SOUTH 89°34'22" EAST CONTINUING ALONG SAID EAST LINE, A DISTANCE OF 144.64 FEET TO A 1/2-INCH IRON ROD FOUND FOR CORNER; THENCE NORTH 00°23'42" EAST CONTINUING ALONG SAID EAST LINE, A DISTANCE OF 629.09 FEET TO A 1/2-INCH IRON ROD FOUND FOR THE NORTHEAST CORNER OF SAID 24.73 ACRE TRACT OF LAND AND BEING IN THE SOUTH LINE OF THE AFOREMENTIONED SOUTHEAST AIRPORT ADDITION; THENCE NORTH 88°42'27" EAST ALONG THE SOUTH LINE OF SAID SOUTHEAST AIRPORT ADDITION, A DISTANCE OF 1533.88 FEET TO THE POINT OF BEGINNING; CONTAINING A COMPUTED AREA OF 120 ACRES, MORE OR LESS. NOTES BEARINGS CALLED FOR HEREIN ARE BASED ON THE TEXAS COORDINATE SYSTEM (NORTH CENTRAL ZONE), AND WERE DERIVED FROM GPS OBSERVATIONS OF CITY OF DENTON MONUMENTS 2011, 2012, 2015 AND 2023. A SKETCH WAS PREPARED ON EVEN DATE TO ACCOMPANY THIS DESCRIPTION. S:\INCENTIVES\INCENT IVE AGREEMENTS\ALDI\Aldi Enterprise Zone\Ordinance\EXHIBIT A ENTERPRISE ZONE PROPERTY BOUNDARIES.doc Page 2 of 3 o EXHIBIT "B" M O M 7 U rn O,r) O x N Z Z a O O h m G w Z0ZU ago ~<o L- QFQ $ a m co o W z :D Q caN aon $ Z w Z mQN C). 7f L=Q02h°o waaO n ~Q N Q o N n~ Ct~.CuZ`„ <~< o N m m Z QQ h e > v ti wgoN Q y}~ Q WY O W LL, = NE F p F um av¢ is~° w~ N MN (n 77 CL o o m € N °o' o LaL D p w z (7) z Z m ~c O 0i6zw w J J W 11 mpj a` lal Q O Q p w8U <e Z zpQm li w mu:m O. 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