2008-066s:\our documents\ordinances\OS\zldi 2nd amd [ax abatement agr ord.doc
ORDINANCE NO. ,2~D~ O/o~
AN ORDINANCE OF THE CITY OF DENTON AUTHORIZING THE MAYOR TO
EXECUTE A SECOND AMENDMENT TO THAT CERTAIN TAX ABATEMENT
AGREEMENT WITH ALDI (TEXAS) L.L.C., WHICH WAS FIRST AMENDED BY THE
CITY COUNCIL ON JANUARY 8, 2008 BY ORDINANCE 2008-006, TO EXTEND THE
TERM OF THE AGREEMENT FROM FIVE YEARS TO SEVEN YEARS, OR TO
REIMBURSE ALDI FOR THE DESIGN AND CONSTRUCTION COSTS OF WESTCOURT
ROAD, WHICHEVER IS LESS; PROVIDING FOR A SEVERABILITY CLAUSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, by Ordinance No. 2007-176 on August 21, 2007, the City Council approved
a Tax Abatement Agreement ("Agreement") with Aldi (Texas) L.L.C.; and
WHEREAS, by Ordinance No. 2008-006 on January 8, 2008, the City Council amended
the Agreement by providing that the completion of the construction of Westcourt Road would
not be a condition to issuance of the Building Certificate of Occupancy by the City of Denton;
and
WHEREAS, due to conditions beyond the control of Aldi, the costs to design and
construct Westcourt Road have increased and Aldi has requested an extension of the number of
years of tax abatement to help offset the construction costs; and
WHEREAS, the Economic Development Partnership Boazd recommends that the Tax
Abatement Agreement between the City of Denton and Aldi (Texas) L.L.C. be amended,
extending the term of the Agreement from five years to seven yeazs, or to reimburse Aldi for the
design and construction costs of Westcourt Road, whichever is less; 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 extending the term of the Agreement from five
years to seven years, or to reimburse Aldi for the design and construction costs of Westcourt
Road, whichever is less.
SECTION 3. 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 declazes that they would
have enacted such remaining portions despite any such invalidity.
SECTION 4. This Ordinance shall become effective immediately upon its passage and
approval.
^ s:\our documents\ordinances\OS\aldi 2nd amd tax abatement agr ord.doc
PASSED AND APPROVED this the_~ day of n// , 2008.
~~~~
PERRY R. McNEILL, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY: ~
APPR ED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY: ~
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s:bur documrntslcontracts~g8leldi 2nd amd mx abatvncnt agr.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's 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 "Cit}~'), 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 lineaz feet) as atwo-
lane, concrete road to specifications acceptable by the City of Denton; and
WHEREAS, the Existing Agreement was Srst amended on January 8, 2008, requiring the
Aldi to enter into an agreement with the City of Denton for the construction of Westcourt Road
prior to receipt of of Aldi'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 purpose of building Westcourt Road; and
WHEREAS, the First Amendment provided that the completion of the construction of
Westcourt Road would not be a condition to the issuance of the Building Certificate of
Occupancy by the City; and
WHEREAS, due to conditions beyond the control of Aldi, the costs to design and
construct Westcourt Road have increased and Aldi has requested an extension of the number of
years of tax abatement to help offset the construction costs; and
WHEREAS, the Economic Development Partnership Boazd recommends the Tax
Abatement Agreement between the City of Denton and Aldi (Texas) L.L.C. be amended,
extending the term of the Agreement from five years to seven years, or to reimburse Aldi for the
design and construction costs of Westcourt Road, whichever is less;
NOW THEREFORE, the City and Aldi (Texas) L.L.C. covenant and agree as follows:
TERMS AND CONDTI'IONS OF ABATEMENT
A. In consideration of and subject to the Owner meeting all the terms and conditions
of abatement set forth herein, the City hereby grants the following tax abatement ("Abatement"):
An abatement equal to 100% of City ad valorem taxes attributable to new capital investments 5{-~
resulting in an increase of assessed value of real property improvements j!Q and tangible personal
property (including inventory and supplies) located on the Premises but only if such increase is
at least $25,000,000 over the assessed value of the Premises and tangible personal property
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(including inventory and supplies) located on the Premises as of January 1, 2007, for a period of
seven years commencing on January 1 of the year following, the Owner's receipt of a certificate
of occupancy (the "CO") for the Premises, or an amount equal to the actual cost of the design
and construction of Westcourt Road, whichever is less. If such increase in assessed value is less
than $25,000,000 there will be no Abatement.
1. All other terms and conditions of the Existing Agreement shall remain in full force and
effect.
2. 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
~~ .
BY: '® C~~•u''
PERRY McNEII,L, MAYOR
DATE:~~ ~ Z~QO
ATTEST:
JE ER WALTERS, ITY SECRETARY
B
APP VED TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
ALDI (TEXAS) L.L.C.
A Texas limited liability company
BY: ALDI INC. (DELAWARE)
A Delaware corporation,
Sole(jMember
BY:
SCOTT HUSKA, Vice President
DATE: Fz~~~ b~v~ ' po
ATTEST:
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