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2003-288AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO. VI FOR COMMERCIAL/INDUSTRIAL TAX ABATEMENT; ESTABLISHING THE BOUNDARIES 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 REPEAL; 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 of a certain contiguous geographic area within its corporate city limits and its jurisdiction by the creation of a reinvestment zone for commemial/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 Flowers Baking Co. of Denton, LLC has requested tax abatement to renovate an existing facility and build improvements within the area to be designated as Reinvestment Zone VI; 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, by resolution dated August 19, 2003, a public hearing before the City Coun- cil was called, set, and held at or after 6:00 p.m. on September 2, 2003, 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 of written notices of such public hearing by the presiding officer of each taxing unit that includes in its boundaries real property that is to be included 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 aga'mst the creation of the reinvestment zone, the boundaries of the proposed reinvestment zone, whether all or part of the territory 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 opportunity at such public heating to protest the creation of the proposed reinvestment zone or the inclusion of their property in such reinvestment zone; and WHEREAS, on the 19th day of August, 2003, on or before the holding of the above- mentioned public hearing, the City Council passed Resolution No. 2003-021 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 ORDAINS: SECTION 1. That the facts and recitations contained in the preamble of this ordinance are hereby found and declared to be true and correct. SECTION 2. That 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 eligibility under the Act, any activity at the location, including, but not limited to, new construction, recon- struction, renovation and repairs. B. Taxable Real Property - Taxable real property shall be as defined in the Texas Property 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 per- sonal property, excluding inventory and supplies. D. Base Year - The base year for determining increased value shall be the taxable real property value assessed the year in which the Tax Abatement Agreement is executed. SECTION 3. That the City, through its City Council, after conducting the above- mentioned public heating 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 applicable laws, and that notice of such hearing has been published as required by law and mailed to the pre- siding officer of the governing body of each taxing unit that includes in its boundaries real property that is to be included in the proposed reinvestment zone as required by law; and Page 2 of 6 B. That prior to holding the public hearing, the City has adopted, by resolution, the guidelines and criteria governing tax abatement agreements by adopting a City of Denton Tax Abate- ment Policy, as amended, and the City has elected to participate in tax abatement; 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 reinvcstment 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 area outlined in red attached hereto as Exhibit "B" and being approximately 91.921 acres at or near 4210 Edwards Road in the corporate limits and/or in the extraterrestrial jurisdiction of the City of Denton, Texas, such Exhibits "A" and "B" being incorporated and made a part of this ordinance as if written word for word herein; and E. That the creation of the reinvcstment zone for commercial/industrial tax abatement with thc improvements expected to be developed by Flowers Baking Company of Denton, LLC 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," at~er the expiration of the tax abatement agreement entered into under §312.204 of the Act, and the improvements sought are feasible and practical; and That the reinvcstment zone as defined in Exhibit "A" and shown on Exhibit "B" meets the criteria for the creation ofa 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 retention 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 development of the Municipality;" and G. That the reinvestment zone as defined in Exhibit "A" and shown on Exhibit "B" meets thc 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 en- hance significantly the value of all taxable real property and tangible personal property lo- cated within the reinvestment zone. SECTION 4. That pursuant to §312.201 of thc Act, thc 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 hereinafter be designated as Reinvestment Zone No. VI, City of Denton, Texas. SECTION 5. That Reinvestment Zone No. VI shall be effective as of January 1, 2004, and shall terminate five years from that date, on December 31, 2009, unless extended for an ad- ditional five-year term or unless earlier terminated by action of the City Council in accordance with §312.203 of the Act. SECTION 6. That to be eligible for tax abatement, a commercial/industrial project shall: Page 3 of 6 A. Be located wholly within the zone established herein; B. Meet the requirements of the Denton Tax Abatement Pohcy; 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. That 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: Duration of exemption fi.om 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, 2005; and Share of taxes abated - in the maximum of 35% of taxes on the total value of appraised real property improvements and tangible personal property as more particularly described in the Tax Abatement Agreement between the City of Denton and Flowers Baking Co. of Denton, LLC, which are added, provided, however, nothing herein shall prevent any other taxing unit that includes in its boundaries real property that is included in the reinvestment zone from en- tering into a tax abatement agreement with a different share of taxes abated on the total value of appraised improvements which are added, in accordance with the requirements of chapter 312 of the Act. SECTION 8. That any written agreements authorized under this ordinance must include provisions 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 specifications and condi- tions of the agreements; C. Limiting the uses of the property, consistent with the general purpose of encouraging devel- opment or redevelopment of the zone during the period that property tax exemptions are in effect; Page 4 of 6 D. Recapturing of property tax revenues lost as a result of the agreement if the owner of the property falls 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 agreement; G. Providing that the goveming 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 necessary, 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 negotiating 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. That 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 pertaining to the Zone, including, without limitation, the development of the amendment of the current 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 commtmication with other taxing entities and the Joint Tax Abatement Committee and/or the Economic Development Partnership Board. SECTION 10. That 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. That if any section, paragraph, clause, or provision in this ordinance, or application thereof to any person or circumstance 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 ordi- nance 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- 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 thereof has been discussed, considered, and formally acted upon. The City Council further rati- fies, approves, and confirms such written notice and contents posting thereof. The City Council further finds that a quorum was present at such meeting. Page 5 of 6 SECTION 13. That the contents of the notice of public hearing, which hearing was held before the City Council and before the passage of this ordinance on September 2, 2003, the pub- lication of said notice is hereby ratified, approved, and confirmed. SECTION 14. That this ordinance shall become effective immediately upon its passage and approval. PASSED AND APPROVED this the c~q~-'-g, dayof ~ ,2003. EULINE BROCK, MAYOR ATTEST: JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM: HERBERT L.~, CITY ATTORNEY BY: Page 6 of 6 Exhibit "A" ALL THAT CERTAIN TRACT OR PARCEL OF LAND LYING AND BEING SITUATED IN THE G. WALKER SURVEY ABSTRACT NUMBER 1330, IN THE M.E.P. & P.R.R. CO. SURVEY ABSTRACT NUMBER 950, AND IN THE D. LAMBERT SURVEY ABSTRACT NUMBER 784, DENTON COUNTY, TEXAS, AND BEING PART OF THE CALLED 27.4367 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 790, DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 8.773 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 797 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 3.000 ACRE TRACT DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 804 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS, PART OF THE CALLED 79.4992 ACRE TRACT, DESCRIBED IN A DEED TO ANDREW CORPORATION, RECORDED IN VOLUME 912, PAGE 821, DEED RECORDS, DENTON COUNTY, TEXAS, ALL OF THE 3.59 ACRES OF LAND DESCRIBED IN THE DEED TO ANDREW CORPORATION, RECORDED UNDER CLERKS FILE NUMBER 96-R0014833 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS, AND PART OF ANDREW ADDITION PHASE ONE AS SHOWN BY THE PLAT THEREOF RECORDED IN CABINET B, PAGE 12 OF THE PLAT RECORDS OF DENTON COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT a FOUND RAILROAD SPIKE AT THE NORTHEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT IN EDWARDS ROAD; THENCE SOUTH 02 DEGREES 40 MINUTES 55 SECONDS WEST WITH THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 698.28 FEET TO A FOUND IRON PIN AT AN ANGLE POINT IN THE EAST LiNE OF THE 27.4367 ACRE ANDREW TRACT; THENCE SOUTH 02 DEGREES 43 MINUTES 42 SECONDS WEST CONTINUING WITH THE EAST LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 1249.03 FEET TO A FOUND IRON PIN AT THE SOUTHEAST CORNER OF THE 27.4367 ACRE ANDREW TRACT ON THE NORTH LINE OF THE 22.967 ACRE TRACT TO JULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 95-R0000602 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 87 DEGREES 33 MINUTES 17 SECONDS WEST WITH THE SOUTH LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 622.20 FEET TO A FOUND IRON PIN AT THE SOUTHWEST CORNER OF THE 27.4367 ACRE ANDREW TRACT, THE NORTHWEST CORNER OF THE 22.967 ACRE CLARK TRACT, THE NORTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT, AND THE EASTERN MOST SOUTHEAST CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 19 MINUTES 02 SECONDS WEST WITH THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE WEST LINE OF THE 22.967 ACRE CLARK TRACT A DISTANCE OF 472.97 FEET TO A FENCE CORNER POST AT AN ANGLE POINT IN THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE NORTHWEST CORNER OF THE CALLED 0.942 ACRE TRACT DESCRIBED IN THE DEED TO JULIE K. CLARK RECORDED UNDER CLERKS FILE NUMBER 99-R0000310 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE SOUTH 03 DEGREES 01 MINUTES 21 SECONDS WEST CONTINUING WITH THE EAST LINE OF THE 3.59 ACRE ANDREW TRACT AND THE WEST LINE OF THE 0.942 ACRE CLARK TRACT A DISTANCE OF 224.75 FEET TO A STEEL PIPE AT THE SOUTHEAST CORNER OF THE 3.59 ACRE ANDREW TRACT ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 56 MINUTES 40 SECONDS WEST WITH THE SOUTH LINE OF THE 3.59 ACRE ANDREW TRACT A DISTANCE OF 218.61 FEET TO A FENCE CORNER POST AT THE SOUTHWEST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE SOUTHEAST CORNER OF THE TRACT OF LAND DESCRIBED IN THE DEED TO BETTY JOHN ROBERTSON RECORDED IN VOLUME 2423, PAGE 932 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE NORTH 01 DEGREES 47 MINUTES 13 SECONDS EAST WITH THE WEST LINE OF THE 3.59 ANDREW TRACT AND THE EAST LINE OF THE ROBERTSON TRACT A DISTANCE OF 683.38 FEET TO AN IRON PIPE AT THE NORTHWEST CORNER OF THE 3.59 ACRE ANDREW TRACT AND THE NORTHEAST CORNER OF THE CALLED 3.980 ACRE TRACT TO KENNETH D. OWEN RECORDED IN VOLUME 763, PAGE 137 OF THE DEED RECORDS OF DENTON COUNTY, TEXAS ON A SOUTH LINE OF ANDREW ADDITION; THENCE NORTH 87 DEGREES 39 MINUTES 54 SECONDS WEST WITH A SOUTH LINE OF ANDREW ADDITION AND THE NORTH LINE OF THE OWEN TRACT A DISTANCE OF 363.71 FEET TO A FOUND IRON PIN AT AN INNER ELL CORNER OF ANDREW ADDITION; THENCE SOUTH 03 DEGREES 03 MINUTES 00 SECONDS WEST WITH AN EAST LINE OF ANDREW ADDITION AND THE WEST LINE OF THE OWEN TRACT A DISTANCE OF 397.16 FEET TO A FOUND IRON PIN; THENCE SOUTH 39 DEGREES 11 MINUTES 57 SECONDS EAST WITH AN EAST LINE OF ANDREW ADDITION AND THE SOUTH LINE OF THE OWEN TRACT A DISTANCE OF 382,68 FEET TO A FOUND IRON PIN AT THE SOUTHERN MOST SOUTHEAST CORNER OF ANDREW ADDITION AND THE SOUTHERN MOST SOUTHWEST CORNER OF THE OWEN TRACT ON THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD; THENCE NORTH 87 DEGREES 46 MINUTES 12 SECONDS WEST WITH A SOUTH LINE OF ANDREW ADDITION AND THE NORTH RIGHT-OF-WAY LINE OF POCKRUS PAGE ROAD A DISTANCE OF 26.57 FEET TO A FOUND IRON PIN AT THE SOUTHERN MOST SOUTHWEST CORNER OF ANDREW ADDITION ON THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD; THENCE NORTH 39 DEGREES 14 MINUTES 16 SECONDS WEST WITH A WEST LINE OF ANDREW ADDITION A DISTANCE OF 412.02 FEET TO A FOUND IRON PIN AT THE BEGINNING OF A CURVE TO THE RIGHT; THENCE WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M.K.T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 26 DEGREES 11 MINUTES 57 SECONDS, A RADIUS OF 2814.79 FEET, AN ARC LENGTH OF 1287.10 FEET (CHORD OF NORTH 26 DEGREES 10 MINUTES 09 SECONDS WEST A DISTANCE OF 1275.92 FEET) TO A FOUND IRON PIN; THENCE NORTH 13 DEGREES 00 MINUTES 38 SECONDS WEST CONTINUING WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M,K.T. RAILROAD AND THE WEST LINE OF ANDREW ADDITION A DISTANCE OF 1221.59 FEET TO A FOUND IRON PIN AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE CONTINUING WITH THE EAST RIGHT-OF-WAY LINE OF THE OLD M,K,T. RAILROAD ALONG SAID CURVE HAVING A DELTA OF 09 DEGREES 53 MINUTES 43 SECONDS, A RADIUS OF 1959.24 FEET, AN ARC LENGTH OF 338.37 FEET (CHORD OF NORTH 17 DEGREES 58 MINUTES 31 SECONDS WEST A DISTANCE OF 337.99 FEET) TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" ON THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD AS DESCRIBED IN THE STREET RIGHT-OF-WAY DEED TO THE CITY OF DENTON RECORDED IN VOLUME 4936, PAGE 1841 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE WITH THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD ALONG SAID CURVE HAVING A DELTA OF 01 DEGREES 17 MINUTES 13 SECONDS, A RADIUS OF 540.00 FEET, AN ARC LENGTH OF 12.13 FEET (CHORD OF NORTH 66 DEGREES 07 MINUTES 51 SECONDS EAST A DISTANCE OF 12.13 FEET) TO A SET "X" IN CONCRETE AT THE INTERSECTION Of THE SOUTH RIGHT-OF-WAY LINE OF MAYHILL ROAD AND THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD AS DESCRIBED IN THE STREET RIGHT-OF-WAY DEED TO THE CITY OF DENTON RECORDED IN VOLUME 4936, PAGE 1841 OF THE REAL PROPERTY RECORDS OF DENTON COUNTY, TEXAS; THENCE SOUTH 27 DEGREES 41 MINUTES 50 SECONDS EAST WITH THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD A DISTANCE OF 147.27 FEET TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849" AT THE BEGINNING OF A CURVE TO THE LEFT; THENCE CONTINUING WITH THE WEST RIGHT-OF-WAY LINE OF EDWARDS ROAD ALONG SAID CURVE HAVING A DELTA OF 59 DEGREES 01 MINUTES 36 SECONDS, A RADIUS OF 330.00 FEET, AN ARC LENGTH OF 339.97 FEET (CHORD OF SOUTH 57 DEGREES 12 MINUTES 38 SECONDS EAST A DISTANCE OF 325.13 FEET) TO A SET IRON PIN WITH A YELLOW PLASTIC CAP STAMPED "METROPLEX 1849"; THENCE SOUTH 86 DEGREES 44 MINUTES 08 SECONDS EAST WITH THE SOUTH RIGHT-OF-WAY LINE OF EDWARDS ROAD A DISTANCE OF 1797.84 FEET TO A FOUND IRON PIN; THENCE NORTH 03 DEGREES 30 MINUTES 26 SECONDS EAST A DISTANCE OF 35.49 FEET TO A FOUND RAILROAD SPIKE IN EDWARDS ROAD ON THE NORTH LINE OF THE 27.4367 ACRE ANDREW TRACT; THENCE SOUTH 88 DEGREES 03 MINUTES 58 SECONDS EAST WITH THE NORTH LINE OF THE 27.4367 ACRE ANDREW TRACT A DISTANCE OF 172.15 FEET TO THE POINT OF BEGINNING AND CONTAINING IN ALL 91.921 ACRES OF LAND.