2007-175~•
s:\our dowmen[s\ordinances\07\aldi reinveslmmri ord.doc
ORDINANCE NO. r~OO / - ~ `JS
AN ORDINANCE OF THE CITY OF DENTON, TEXAS, DESIGNATING A CERTAIN
AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO. VIII
FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUN-
DARIES OF SUCH ZONE; MAKING FINDINGS REQUIRED IN ACCORDANCE WITH
CHAPTERS 311 AND 312 OF THE TEXAS TAX CODE; ORDAINING OTHER MATTERS
RELATING THERETO; PROVIDING A SEVERABILITY CLAUSE; PROVIDING FOR RE-
PEAL; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council of the City of Denton, Texas ("City" or "Municipality")
desires to promote the development or redevelopment oP a certain contiguous geographic area
within its corporate city limits and its jurisdiction by the creation of a reinvestment zone for
commercial/industrial tax abatement, as authorized by Tex. Tax Code Ch. 312 (referred to as the
"Property Redevelopment and Tax Abatement Act" or the "Act"); and
WHEREAS, an industry or business known as Aldi, lnc. has requested tax abatement to
construct a facility and build improvements within the area to be designated as Reinvestment
Zone VIII; and
WHEREAS, the City Council desires to create a proper economic and social environment
to induce investment of private resources and productive business enterprises in this area of the
City, which meets the criteria established under §312.202 of the Act, and to expand primary em-
ployment or to attract major investment; and ~.
WHEREAS, a public hearing before the City Council was held at or after 6:30 p.m. on
August 21, 2007, 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 and the receipt oC written notices of such public hearing by the pre-
siding officer of each taxing unit that includes in its boundaries real property that is to be in-
cluded in the proposed reinvestment zone, in accordance with §312.201 of the Act; and
WHEREAS, such public hearing was held before the consideration and adoption of this
ordinance; and
WHEREAS, the City, at that hearing, invited any interested citizen or his representative
to appear and offer testimony or evidence for or against the creation of the reinvestment zone,
the boundaries of the proposed reinvestment zone, whether all or part of the temtory described in
the notice calling the public hearing should be included in the proposed reinvestment zone, and
the concept of tax abatement; and
WHEREAS, in accordance with such public notice, all owners of property within the
proposed reinvestment zone and all other taxing units and other interested persons were given the
s:\uur documents\ordinances\07\aldi roinvestment orddoc
opportunity at such public hearing to protest the creation of the proposed reinvestment zone or
the inclusion of their property in such reinvestment zone; and
WHEREAS, on the 6th day of December, 2005, on or before the holding of the above-
mentioned public hearing, the City Council passed Resolution No. 2005-051 establishing guide-
lines and criteria governing tax abatement agreements and stating that the City of Denton elects
to become eligible to participate in tax abatement, in accordance with Tex. Tax Code
§312.002and such Policy is now in effect and was in effect prior to the public hearing; and
WHEREAS, at the public hearing proponents and opponents of the reinvestment zone of-
fered evidence in favor and against all matters relating to the creation of the reinvestment zone,
and, after hearing this testimony and evidence, the City Council deems it in the public interest to
create this reinvestment zone; NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAEVS:
SECTION 1. The facts and recitations contained in the preamble of this ordinance are
hereby found and declared to be true and correct.
SECTION 2. For the purposes of this ordinance, the following terms and phrases shall
have the following meanings ascribed to them:
A. Improvements -Improvements shall include, for the purpose of establishing eligibili-
ty under the Act, any activity at the location, including, but not limited to, new con-
struction, reconstruction, renovation and repairs.
B. Taxable Real Property -Taxable real property shall be as defined in the Texas Prop-
erty Tax Code and shall not include personal property as defined in the Code.
C. Tangible Personal Property -Tangible Personal Property shall be defined as business
personal property, including inventory and supplies.
D. Base Year -The base year far determining increased value shall be the taxable real
property value assessed the year in which the Tax Abatement Agreement is executed.
SECTION 3. The City, through its City Council, after conducting the above-mentioned
public hearing and having heard such evidence and testimony, makes the following findings and
determinations based on the evidence and testimony presented to it:
A. that the public hearing on the adoption of the reinvestment zone has been properly
called, held, and conducted in accordance with §312.201 of the Act and all other ap-
plicable laws, and that notice of such hearing has been published as required by law
and delivered to the presiding officer of the governing body of each taxing unit that
includes in its boundaries real property that is to be included in the proposed rein-
vestment zone as required by law; and
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B. that prior to holding the public hearing, the City has adopted, by resolution, the guide-
lines and criteria governing tax abatement agreements by adopting a City of Denton
Tax Abatement Policy, as amended, and the City has elected to participate in tax ab-
atement; and
C. that the City had jurisdiction to hold and conduct the public hearing on the creation of
the proposed the reinvestment zone, pursuant to chapter 312 of the Act; and
D. that the boundaries of the reinvestment zone shall be the area described in the metes
and bounds description attached hereto as Exhibit "A" and as shown on the diagram
as the shaded area attached hereto as Exhibit "B" and being approximately 120 acres
at or near the intersection of Westcourt Road and Spring Side Road in the corporate
limits of the City of Denton, Texas, such Exhibits "A" and "B" being incorporated
and made a pari of this ordinance as if written word for word herein; and
E. that the creation of the reinvestment zone for commercial/industrial tax abatement
with the improvements expected to be developed by Aldi, Inc. would be of benefit to
the City and to the land to be included in the zone, with the boundaries as described in
Exhibit "A," after the expiration of the tax abatement agreement entered into under
§312.204 of the Act, and the improvements sought are feasible and practical; and
F. that the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets
the criteria for the creation of a reinvestment zone, as set forth in §312.202 of the Act,
since it is, "reasonably likely, as a result of the designation, to contribute to the reten-
tion or expansion of primary employment or to attract major investment in the zone
that would be a benefit to the property and that would contribute to the economic de-
velopment ofthe Municipality;" and
G. that the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets
the criteria for the creation of a reinvestment zone as set forth in the Denton Policy
for Tax Abatement and the expected improvements in the boundaries of the zone are
expected to enhance significantly the value of all taxable real property and tangible
personal property located within the reinvestment zone.
SECTION 4. Pursuant to §312.201 oP the Act, the City, through its City Council, hereby
creates a reinvestment zone for commercial/industrial tax abatement encompassing only the area
described by the metes and bounds description in Exhibit "A" attached hereto and as shown on
Exhibit "B" attached hereto and such reinvestment zone is hereby designated and shall hereinaf-
ter be designated as Reinvestment Zone No. V 111, City of Denton, Texas.
SECTION 5. Reinvestment Zone No. VIII shall be effective as of January 1, 2009, and
shall terminate five years from that date, on December 31, 2014, unless extended for an addition-
al five-year term or unless earlier terminated by action of the City Council in accordance with
§312.203 of the Act.
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SECTION 6. To be eligible for tax abatement, acommercial/industrial project shall:
A. be located wholly within the zone established herein;
B. meet the requirements of the Denton Tax Abatement Policy;
C. not include property that is owned'or leased by a member of the City Council of the
City of Denton, or by a member of the Planning & Zoning Commission;
D. conform to the requirements of the City's zoning ordinance and all other applicable
laws and regulations; and
E. have and maintain all land located within the designated zone, appraised at market
value for tax purposes.
SECTION 7. Written tax abatement agreements with property owners located within the
zone shall provide the terms regarding duration of exemption and share of taxable real property
and/or tangible personal property located on the real property for taxation as approved hereunder,
as shown below:
A. duration of exemption from two years to ten years depending on the value of the
structures and real property in accordance with the Denton Tax Abatement Policy,
beginning with and including January 1, 2009; and
B. share of taxes abated - in the maximum of 100% of taxes on the total value of ap-
praised real property improvements and tangible personal property as more particular-
ly described in the Tax Abatement Agreement between the City of Denton and Aldi,
Inc., which are added, provided, however, nothing herein shall prevent any other tax-
ing unit that includes in its boundaries real property that is included in the reinvest-
ment zone from entering into a tax abatement agreement with a different share of tax-
es abated on the total value of appraised improvements which are added, in accor-
dance with the requirements of chapter 312 of the Act.
SECTION 8. Any written agreements authorized under this ordinance must include pro-
visions for:
A. listing the kind, number, and location of all proposed improvements of the property;
B. access to and authorizing the inspection of the property by municipal employees to
ensure that the improvements or repairs are made in accordance with the specifica-
tions and conditions of the agreements;
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C. limiting the uses of the property, consistent with the general purpose of encouraging
development or redevelopment of the zone during the period that property tax exemp-
tions are in effect;
D. recapturing of property tax revenues lost as a result of the agreement if the owner of
the property fails to make the improvements or repairs as provided by the agreement;
E. containing each term agreed to by the owner of the property ;
F. requiring the owner of the property to certify annually to the governing body of each
taxing unit that the owner is in compliance with each applicable term of the agree-
ment;
G. providing that the governing body of the municipality may cancel or modify the
agreement if the property owner fails to comply with the agreement;
H. contain any additional terms and conditions which the City Council deems are neces-
sary, in accordance with §312.205 of the Act, and that are negotiated with the owner
of the property. Provided, however, nothing herein shall prevent other taxing units,
who include in their boundaries real property within the reinvestment zone, from ne-
gotiating terms and conditions that are different from any municipal tax abatement
agreement, so long as the mandatory terms and conditions required by §312.205 of
the Act are included.
SECTION 9. The City Council further directs and designates the City Manager and the
Director of Economic Development as liaisons for communication with regard to all matters per-
taining to the Zone, including, without limitation, the development of the amendment of the cur-
rent Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agreements
with industries, commercial enterprises, and other businesses eligible for tax abatement under the
Tax Abatement Policy and for communication with other taxing entities and the Economic De-
velopment Partnership Board.
SECTION 10. All ordinances or parts of ordinances in force when the provisions of this
ordinance became effective which are inconsistent or in conflict with the terms or provisions
contained in this ordinance are hereby repealed to the extent of any such conflict.
SECTION 11. If any section, paragraph, clause, or provision in this ordinance, or appli-
cation thereof to any person or circumstancc'is held invalid or unenforceable, the invalidity or
unenforceability of such section, paragraph, clause, or provision shall not affect any of the re-
maining portions of this ordinance.
SECTION 12. It is hereby found, determined, and declared that a sufficient written no-
tice of the date, place, hour, and subject of the meeting of the City Council at which this ordin-
ance was adopted was posted and placed and conveniently accessible at all times to the general
public at the City Hall of the City for the time required by law, preceding this meeting, as re-
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quired by the Open Meetings Act, Tex. Gov't Code Ch. 551, and that this meeting was open to
the public as required by law at all times during which this ordinance and the subject matter the-
reofhas been discussed, considered, and formally acted upon. The City Council further ratifies,
approves, and confirms such written notice and contents posting thereof. The City Council fur-
ther finds that a quorum was present at such meeting.
SECTION 13. The contents of the notice of public hearing, which hearing was held be-
fore the City Council and before the passage of this ordinance on August 21, 2007, the publica-
tion of said notice is hereby ratified, approved, and confirmed.
SECTION 14. This ordinance shall become effective immediately upon its passage and
approval.
PASSED AND APPROVED this the ~ ~ ~ day of , 2007.
Q V~ • 7 ~I~
PERR . McNEIL,L, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPROVED AS TO LEGAL FORM:
EDWIN M. SNYDER, CITY ATTORNEY
BY:
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_ s.\our documcnls\ordiuances\OTaldi cxhibita prop desciption.doc
EXHIBIT "A"
PROPERTY DESCRIPTION
RE-INVESTMENT ZONE NO. VIII
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 1/2-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;
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
Page 1
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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.
Page 2
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