2001-258 ORDINANCE NO ~001'" ~-~
AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN
AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO IV
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, PROVID-
ING FOR REPEAL, AND PROVIDING AN EFFECTIVE DATE
WI-~EREAS, 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 junsdmnon by the creation of a remvestment 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 Sally Beauty Company, Inc, a Delaware
corporation authorized to do business in Texas, has requested tax abatement to bmld improve-
ments wathm the area to be designated as Remvestment Zone IV, 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 estabhshed under §312 202 of the Act, and to expand primary em-
ployment or to attract major investment, and
WHEREAS, by resolution dated July 17, 2001, a pubhc heanng before the City Council
was called, set, and held at or after 6 00 p m on July 31, 2001, in the City Council Chambers of
the City of Denton at 215 East McKlrmey Street in the City of Denton, such date being at least
seven days after the date of pubhcatlon of notice of such public hearing and the receipt of wntten
notmes of such public hearing by the presiding officer of each taxing unit that includes m its
boundaries real property that is to be included in the proposed relnvestment zone, in accordance
with §3121201 of the Act, and
WHEREAS, such public heanng 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 relnvestment zone,
the boundaries of the proposed relnvestment zone, whether all or part of the territory described in
the notlc~ calhng the public heanng should be included in the proposed relnvestment zone, and
the concept of tax abatement, and
WHEREAS, m accordance with such public notice, all owners of property within the
proposed relnvestment zone and all other taxing units and other interested persons were given the
opportumty at such pubhc heanng to protest the creation of the proposed rmnvestment zone or
the mclusaon of their property xn such remvestment zone, and
WHEREAS, on the 6th day of June, 2000, on or before the holdang of the above-
mentaoned pubhc heanng, the City Council passed ResoluUun No 2000-028 estabhshmg gmde-
hnes and criteria govermng tax abatement agreements and stating that the Caty of Denton elects
to become ehgable to partacapate m tax abatement, in accordance with Tex Tax Code §312 002,
which Tax Abatement Pobcy was amended by Resolution No 2001-020 and such Pohcy ~s now
m effect and was m effect prior to the pubhc heanng, and
WHEREAS, at the pubhc heanng proponents and opponents of the remvestment zone of-
fered evidence m favor and against all matters relating to the creataon of the reanvestment zone,
and, after heanng tbas testamony and evadence, the Caty Council deems ~t m the pubhc anterest to
create thas remvestment zone, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SET~ That the facts and recatataons contatned m the preamble of thas ordinance
are hereby found and declared to be true and correct
SEt~TION 2 That for the purposes of tlus ordinance, the following terms and phrases
shall have the followang meanings ascribed to them
A Improvements - Improvements shall mclude, for the purpose of estabhshmg ellgthfl~ty under
the Act, any activity at the locataon, mcludmg, but not hmated to, new constructaon, recon-
strucuon, renovaUon and repairs
B Taxable Real Property - Taxable real property shall be as defined ~n the Texas Property Tax
Code and shall not ~r~clude personal property as defined m the Code
C Base Year - The base year for determ~mng increased value shall be the taxable real property
value assessed the year in which the Tax Abatement Agreement ~s executed
SCT~ That the Caty, through ars City Council, after conducUng the above-
menuoned pubhc heanng and havang heard such evadence and testimony, makes the followang
findmgs and determlnataons based on the evidence and testimony presented to at
A That the pubhc heanng on the adoption of the remvestment zone has been properly called,
held, and conducted m accordance with §312 201 of the Act and all other appbcable laws,
and that notate of such hearing has been pubhshed as required by law and marled to the pre-
sadmg officer of the governing body of each taxing umt that includes mats boundaries real
property that as to be included m the proposed remvestment zone as reqmred by law, and
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B That prior to holding the public heanng, the Caty has adopted, by resolution, the gmdehnes
and criteria governing tax abatement agreements by adopting a City of Denton Tax Abate-
ment Pohcy, as amended, and the Caty has elected to participate in tax abatement, and
C That the Caty had junsd~ctaon to hold and conduct the pubhc heanng on the creataon of the
proposed the rmnvestment zone, pursuant to chapter 312 of the Act, and
D That the boundaries of the remvestment zone shall be the area described m the metes and
bounds descnptaon attached hereto as Exhibit "A" and as shown on the daagram as the area
outlined m red attached hereto as Exhabat "B" and being approximately 13 3742 acres at or
near 3900 Morse Street ~n the corporate hmats of the Caty of Denton, Texas, such Exhab~ts
"A" and "B" being incorporated and made a part of this ordinance as if written word for
word hereto, and
E That the creation of the remvestment zone for eommerelal/mdustnal tax abatement w~th the
amprovements expected to be developed by Sally Beauty Company, Inc would be of benefit
to the Caty and to the land to be mcluded an the zone, wath the boundaries as described m Ex-
h~bat "A," after the expiration of the tax abatement agreement entered into under §312 204 of
the Act, and the amprovements sought are feamble and practaeal, and
F That the remvestment zone as defmed m Exhabat "A" and shown on Exhibit "B" meets the
criteria for the ereataon of a rmnvestment zone, as set forth an §312 202 of the Act, mnce it
"reasonably hkely, as a result of the demgnatlon, to contribute to the retention or expanmon
of primary employment or to attract major ~nvestment in the zone that would be a benefit to
the property and that would contribute to the economac development of the Munlcapahty,"
and
G That the remvestment zone as defined m Exlubat "A" and shown on Exhablt "B" meets the
entena for the creation of a remvestment zone as set forth an the Denton Pohcy for Tax
Abatement and the expected improvements an the boundaries of the zone are expected to
hance mgmficantly the value of all taxable real property located wathan the remvestment
zone
SECTION 4 That pursuant to §312 201 of the Act, the Caty, through ars City Council,
hereby creates a rmnvestment zone for commerclalhndustnal tax abatement encompassmg only
the area deacnbed by the metes and bounds descnptlon in Exlubat "A" attached hereto and as
shown on ,Extub~t "B" attached hereto and such remvestment zone is hereby designated and shall
heremafter be demgnated as Re~nvestment Zone No IV, City of Denton, Texas
~ That Reanvestment Zone No IV shall be effective as of January I, 2002,
and shall terminate five years from that date, on December 31, 2006, unless extended for an
addatlonal five year term or unless earher terminated by action of the C~ty Councal in accordance
wath §312 203 of the Act
~ That to be ehgable for tax abatement, a commercial/industrial project shall
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A Be located wholly wlthm 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 & Zomng Commission,
D Conform to the reqmrements of the City's zomng ordinance and all other applicable laws and
regulations, and
E Have and mmntiun all land located within the designated zone, apprmsed at market value for
tax purposes
~ 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 tangthle 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 m accordance with the Denton Tax Abatement Pohcy, beglnmng with and
including January 1, 2002, and
B Share of taxes abated - 100% of taxes on the total value of appraised real property improve-
ments winch are added, prowded, however, nothing herein shall prevent any other taxing umt
that includes m its boundaries real property that is included xn the relnvestment zone t~om en-
tenng into a tax abatement agreement w~th a different share of taxes abated on the total value
of appraised improvements winch are added, m 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 L~stlng the kmd,number, and l°catl°n °f all pr°p°sed lmpr°vements °f the pr°perty'
B Access to and authorizing the inspection of the property by mumclpal employees to ensure
that the improvements or repairs are made m accordance with the specifications and condi-
tions of the agreements,
C L~m~tmg 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 ~n
effect,
D Recaptunng of property tax revenues lost as a result of the agreement ~f the owner of the
property fmls to make the improvements or repairs as provided by the agreement,
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E Contmnmg each term agreed to by the owner of the property,
F Requmng the owner of the property to certify annually to the governing body of each taxing
unit that the owner is m comphance w~th each apphcable term of the agreement,
G Providing that the governing body of the municipality may cancel or modify the agreement ~f
the property owner fails to comply with the agreement,
H Contmn any additional terms and conchtlons which the C~ty 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 remvestment zone, from negotmt~ng terms and conditions
that are different from any mummpal tax abatement agreement, so long as the mandatory
terms and eondlttons required by §312 205 of the Act are included
~ That the C~ty Council further directs and designates the C~ty Manager and
the Director of Commumty Development as liaisons for commumcatlon with regard to all mat-
ters pertmmng to the Zone, including, without hm~tatlon, the development of the amendment of
the current Denton Tax Abatement Policy If necessary, the negotiation of tax abatement agree-
ments w~th mdustnes, commercml enterprises, and other businesses eligible for tax abatement
under the Tax Abatement Policy and for commumcatlon with other taxing entities and the Joint
Tax Abatement Committee
~ That all ordinances or parts of ordinances in force when the proms~ons of
this ordinance became effective which are inconsistent or in conflict with the terms or provisions
contmned m thru orchnance are hereby repealed to the extent of any such conflict
SECTION 11 That if any section, paragraph, clause, or provision in th~s ordinance, or
application thereof to any person or circumstance ts held invalid or unenforceable, the invalidity
or unenforceabihty of such secUon, paragraph, clause, or provision shall not affect any o~' the re-
malmng portions of this ordinance
~ It ~s 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 wtuch th~s 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 tins 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 dunng which th~s ordinance and the subject matter
thereof has been d~scussed, considered, and formally acted upon The City Council further rat,-
ties, approves, and confirms such written not,ce and contents posting thereof The City Council
further finds that a quorum was present at such meeting
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SECTION 13 That the contents of the not~ce of pubhc heanng, which heanng was held
before the City Council and before the passage of this ordinance on July 31, 2001, the pubhca-
Uon of said not,ce ~s hereby ratffied, approved, and confirmed
SECTION 14 That th~s ordinance shall become effecUve ~mmedaately upon ~ts passage
and approval
PASSED AND APPROVED thts the .fl/~4~ dayof (~.d-" ,2001
EULINE BROCK, MAYOR
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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EXHIBIT "A"
Legal Description of Sally Beauty Company, Inc property
BEING a tract of land situated an the M E P and P R R Co Survey, Abstract No 927,
Denton County, Texas, being a part of Lot 6, Block 3 of the Golden Triangle Industrial
Park, Phase V, an addition to the Caty of Denton according to the plat recorded m Cabinet
C, Page 87, Plat Records of Denton County, Texas, and being more particularly described
as follows
BEGINNING at a found ~-anch iron rod with cap stamped "A H HALFF ASSOC'
(hereafter referred to as "with cap") at the antersectlon of the South right-of-way line of
Morse Street (60 feet wade) with the East right-of-way hne of Kamberly Drive (60 feet
wade),
THENCE South 88 degrees 50 rmnutes 50 seconds East, along smd South line, a distance
of 393 00 feet to a found ~/2-mch ~ron rod with cap for a comer,
THENCE South 1 degree 09 minutes I0 seconds West, departing smd South line, a
distance of 529 70 feet to a point for a comer, smd comer lying South 1 degree 09
minutes 10 seconds West, a distance of 20 00 feet f~om a '/2-mch iron rod with cap set for
witness, which hes on the North line of a 40-foot wide Drainage and Utlhty Easement as
shown on smd recorded plat m Cabinet C, Page 87,
THENCE North 88 degrees 50 rmnutes 50 seconds West, along the centerlme of satd
easement, a distance of 411 80 feet to a point for a comer lying on the East line of satd
Ktmberly Drive and being South 88 degrees 50 minutes 50 seconds East, a distance of
0 30 feet f~om an 'x' found for witness m top ora headwall,
THENCE North 3 degrees 11 minutes 09 seconds East, along smd East line, a distance of
20 00 feet passing a set '/2-inch ~ron rod with cap, and contmmng on lme, a total distance
of 530 03 feet to the POINT OF BEGINNING AND CONTAINING 213,153 square feet
or 4 893 acres of land
BEING an 8 4812 acre tract of land m the M E P 8: P R R CO SURVEY, ABSTRACT
NO 927, and being all of Lot 1, Block 3 and part of Lot 6, Block 3, Phase V of the
Golden Triangle Iudustnal Park, an addition to the City of Denton, Denton County,
Texas, accordmg to the plat thereof recorded in Cabinet C, Page 87, Plat Records of
Dentori County, Texas, and being more particularly described as follows
BEGINNING at a ~/2-mch iron rod with a yellow plastic cap stamped "A H HALFF
ASSOC" (hereai~er referred to as "with cap") found at the point of lntersectaon of the
south right-of-way lane of Morse Street (60 feet wide), and the west right-of-way line of
Mayhfll Road (60 feet wide),
THENCE South 03 degrees 24 m~nutes 15 seconds West, along smd west hne, a d~stance
of 530 11 feet to a ½-mch ~ron rod w~th cap found for a comer,
THENCE North 88 degrees 50 minutes 50 seconds West, departing smd west line and
along the south line of Lot 1, at 562 39 feet passing the southwest comer of Lot 1 and
continuing along the south hne of Lot 6, m all a d~stance of 687 04 feet to a V~-mch ~ron
rod wtth cap found on the south hne of Lot 6,
THENCE North 01 degree 09 nunutes 10 seconds East, departing smd south hne of Lot
6, a d~stance of 529 70 feet to a V2qnch ~ron rod w~th cap found for a comer, smd point
lying on the south right-of-way line of Morse Street (60 feet w~de),
THENCE South 88 degrees 50 nunutes 50 seconds East, along smd south right-of-way
hne, at 158 16 feet passing the northeast comer of Lot 6 and continuing along the north
lane of Lot 1, m all a dastance of 707 86 feet to the POINT OF BEGINNING AND
CONTAINING 369,438 square feet or 8 4812 acres of land
BOTH TRACTS TOTALING 13 3742 acres of land