2001-259AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN
AREA WITHIN THE CITY LIMITS OF DENTON AS REINVESTMENT ZONE NO V 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 Cotmcfl of the City of Denton, Texas ("City" or "Munic~pahty")
desires to promote the development or redevelopment of a eertmn contiguous geographic area
within its corporate city hmxts and its juns&etIon 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 Peterbilt Motors Company, a division of
PACCAR Inc, has requested tax abatement to build maprovements within the area to be desig-
nated as Remvestmant Zone V, and
WHEREAS, the City Council desires to create a proper economic and social environment
to reduce 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 July 17, 2001, a public heanng before the City Council
was called, set, and held at or after 6 00 p m on July 31, 2001, an the City Council Chambers of
the City of Denton at 215 East McKlnney Street in the Cay of Denton, such date being at least
seven days after the date of pubheatIon of notice of such pubhc heanng and the receipt of written
notices of such public heanng by the presl&ng officer of each taxing unit that includes in its
boundaries real property that IS to be Included m the proposed reinvestment zone, m accordance
with §312 201 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 remvestment zone,
the boundaries of the proposed remvestment zone, whether all or part of the temtory described in
the notice calling the public heanng should be included in the proposed remvestment zone, and
the concept of tax abatement, and
WHEREAS, in 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
oppormntty at such public hearing to protest the creation of the proposed relnvestment zone or
the inclusion of their property m such remvestment zone, and
WHEREAS, on the 6th day of June, 2000, on or before the holding of the above-
menttoned pubhe heanng, the City Council passed Resolution No 2000-028 establishing guide-
lines and entena governing tax abatement agreements and stating that the City of Denton elects
to become eligible to participate m tax abatement, m accordance with Tex Tax Code §312 002,
which Tax Abatement Policy was amended by Resolution No 2001-020 and such Policy ts now
in effect and was m effect prior to the public heanng, and
WHEREAS, at the public heanng proponents and opponents of the relnvestment zone of-
fered evidence in favor and agmnst all matters relating to the creation of the retnvestment zone,
and, after hcanng this temmony and evidence, the City Councd deems it tn the public Interest to
create this remvestment zone, NOW, THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 That the facts and recitations contmned tn 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 meantngs ascribed to them
A Improvements - Improvements shall include, for the purpose of establishing ehgtbdlty under
the Act, any act~vtty at the location, including, but not limited to, new construction, recon-
struction, renovation and repmrs
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 tn the Code
C Base Year - The base year for determlmng 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 heanng and having heard such evidence and testimony, makes the following
findtngs and determinations based on the evidence and testimony presented to it
A That the public hearmg on the adoption of the remvestment zone has been properly called,
held, and conducted in accordance wtth §312 201 of the Act and all other applicable laws,
and that notice of such hearing has been published as reqmred by law and mmled to the pre-
siding officer of the governing body of each taxing umt that includes in its boundaries real
property that is to be included m the proposed relnvestment zone as required by law, and
Page 2 of 6
B That prior to holding the public heanng, the City has adopted, by resolution, the guidelines
and criteria governing tax abatement agreements by adopting a City of Denton Tax Abate-
ment Pohcy, 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 heanng on the creataon of the
proposed the remvestment zone, pursuant to chapter 312 of the Act, and
D That the boundaries of the relnvestment zone shall be the area described ~n the metes and
bounds description attached hereto as Exhibit "A" and as shown on the daagram as the area
outlined m red attached hereto as Exbablt "B" and being approximately 8 752 acres at or near
1700 Woodbrook an the corporate hmats of the City of Denton, Texas, such Exhibits "A" and
"B" being incorporated and made a part of tbas ordinance as if written word for word hereto,
and
E That the creation of the relnvestment zone for commerclal/mdustnal tax abatement with the
improvements expected to be developed by Peterbilt Motors Company, a division of PAC-
CAR Inc would be of benefit to the Caty and to the land to be included in the zone, with the
boundaries as described an Exlubat "A," after the expiration of the tax abatement agreement
entered mto under §312 204 of the Act, and the ~mprovements sought are feasible and praeU-
cal, and
F That the remvestment zone as defined m Exhablt "A" and shown on Exhibit "B' meets the
criteria for the ereataon ora relnvestment zone, as set forth m §312 202 of the Act, since It ~s,
"reasonably likely, as a result of the designation, to contribute to the retention or expansion
of primary employment or to attract major mvestment m 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 relnvestment zone as defined an Extubat "A" and shown on Exhlbat "B" meets the
entena for the creation of a relnvestment zone as set forth m the Denton Pohcy for Tax
Abatement and the expected improvements m the boundaries of the zone are expected to en-
hance slgmficantly the value of all taxable real property located within the relnvestment
zone
~ That pursuant to §312 201 of the Act, the City, through ats City Council,
hereby creates a remvestment zone for commerclal/mdustnal tax abatement encompassing only
the area described by the metes and hounds description m Exhibit "A" attached hereto and as
shown on Exhibit "B' attached hereto and such remvestment zone is hereby designated and shall
hereinafter be designated as Relnvestment Zone No V, City of Denton, Texas
~ That Relnvestment Zone No V shall be effective as of January 1, 2002,
and shall terminate five years from that date, on December 31, 2006, unless extended for an
addit~onal five-year term or unless earlier terminated by action of the City Council m accordance
with §312 203 of the Act
Page 3 of 6
SECTION 6 That to be eligible for tax abatement, a commercml/mdustnal project shall
A Be located wholly w~thm the zone established here~n,
B Meet the reqmremants of the Danton Tax Abatement Pohcy,
C Not ~nclude property that as owned or leased by a member of the C~ty Councd of the C~ty of
Denton, or by a member of the Planning & Zomng Commission,
D Conform to the reqmrements of the C~ty's zoning ordinance and all other apphcable laws and
regulations, and
E Have and mamt~un all land located w~th~n the designated zone, appraised at market value for
tax purposes
SECTION 7 That written tax abatement agreements with property owners located
w~thm the zone shall prowde the terms regarding duration of exemptaon 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 Durat~un of exemption from two years to ten years depending on the value of the structures
and mai property m accordance w~th the Denton Tax Abatement Pohcy, begmmng w~th and
including January 1, 2002, and
B Share of taxes abated - 100% of taxes on the total value of apprmsed real property ~mprove-
ments whmh are added, provided, however, nothing here~n shall prevent any other taxing umt
that mcludes ~n ats boundaries real property that ~s included m the re~nvestment zone from en-
tenng mtoa tax abatement agreement w~th a different share of taxes abated on the total value
of apprmsed ~mprovements which are added, m accordance w~th the reqmrements of chapter
312 of the Act
SECTION 8 That any wnttan agreements authorized under th~s ordinance must mclude
prows~ons for
A Ltst~ng the kind, nmnber, and location of all proposed ~mprovements °f the pr°pertY,
B Access to and authorizing the ~nspectton of the property by mumc~pal employees to ensure
that the ~mprovements or repmrs are made ~n accordance wtth the specfficat~ons and condi-
tions of the agreements,
C L~m~tmg the uses of the property, consmtent wah the general purpose of encouraging devel-
opment or redevelopment of the zone dunng the period that property tax exemptions are ~n
effect,
Page 4 of 6
D Recapttmng of property tax revenues lost as a result of the agreement if the owner of the
property fmls to make the improvements or repmrs as provided by the agreement,
E Contmmng each term agreed to by the owner of the property,
F Reqmnng the owner of the property to certify annually to the governing body of each taxing
unit that the owner is in comphance with each applicable term of the agreement,
G Provichng that the g°vermng b°dy °f the municlpahty may cancel °r m°dlfy the agreement if
the property owner fails to comply with the agreement,
H Contam any adchtmnal terms and conchtxons 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, nottung herein shall prevent other taxing units, who include in their
boundaries real property within the remvestment zone, from negotiating terms and conditions
that are chfferent from any municipal tax abatement agreement, so long as the mandatory
terms and eonchtxons required by §312 205 of the Act are ~ncluded
~ That the City Council further directs and designates the City Manager and
the Director of Community Development as liaisons for communication with regard to all mat-
ters pertaining to the Zone, including, without hmltatlon, the development of the amendment of
the current Denton Tax Abatement Policy if necessary, the negotiation of tax abatement agree-
ments 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 Joint
Tax Abatement Committee
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
~ 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 unenforceablhty of such section, paragraph, clause, or provision shall not affect any of the re-
mmmng portions of th~s ordinance
~ It is hereby found, determined, and declared that a suffiment written no-
tree 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-
qmred by the Open Meetings Act, Tex Gov't Code Ch 551, and that this meeting was open to
the pubhc as required by law at all times dunng which this ordinance and the subject matter
thereof has been discussed, considered, and formally acted upon The City Cotmcll further ratl-
ties, 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 noUce ofpubhc heanng, which heanng was held
before the C~ty Counml and before the passage of th~s ordanance on July 31, 2001, the pubhca-
t~on of smd not~ee ~s hereby ratffied, approved, and confirmed
SECTION 14_ That th~s ordmance shall become effective ~mmed~ately upon ~ts passage
and approval
PASSED AND APPROVED this the ~,~/~'~day of_ ~ ff~ ., 2001
EULINE BROCK, MAYOR
ATTEST'
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
BY /
Page 6 of 6
EXHIBIT "A"
Legal Description of Peterbilt Motors Company property
BEING all that certain tract or parcel of land lying and being situated in the R H Hopkins
Survey, Abstract No 1694 and the J McGowan Survey, Abstract No 797, Denton County,
Texas, and being a part of a called 1 447 acre tract, described ~n a deed to the Synod of Texas,
Presbyterian Foundation of the Umted Presbyterian Church, U S A, a Texas Corporation,
recorded in Volume 458, Page 224, Deed Records, Denton County, Texas, and a part of a 31 715
acre tract, described ~n a deed to the Synod of Texas, Presbyterian Foundation of the Umted
Presbyterian Church, U S A, a Texas Corporation, recorded in Volume 485, Page 97, Deed
Records, Denton County, Texas, and being more partmularly described as follows
BEGINNING at a wood right-of-way post at the northwest comer of satd 1 447 acre tract, being
the northeast comer of lot 1, of the replat of block 2, Southrldge Center, recorded ~n volume 6,
page 8 plat records, Denton County, Texas, and being on the south right-of-way line of Interstate
Highway 35 East (a variable width right-of-way),
THENCE south 73 degrees 43 minutes 46 seconds east, w~th the north line of smd 1 447 acre
tract and the smd south right-of-way line, a d~stance of 166 40 feet to a ~/2 inch ~ron pin set w~th a
yellow plastic cap stamped H&N 1849,
THENCE south 78 degrees 35 minutes 00 seconds east, with the north hne of said 1 447 acre
tract and the smd south right-of-way hne, a distance of 342 58 feet to a 1/2 ~nch iron pin set with a
yellow plastic cap stamped H&N 1849 at the ~ntersect~on of the said south right-of-way line and
the west right-of-way line of Southndge Drive (a 60 foot right-of-way),
THENCE south 01 degrees 00 minutes 33 seconds east, with said west right-of-way hne, a
dastance of 307 79 feet to a found ~ron p~n at the northeast comer of lot 6, block 3, Soutlmdge
Center, recorded m Volume 3, Page 51 Plat Records, Denton County, Texas,
THENCE north 89 degrees 43 n~nutes 58 seconds west, w~th the northhne of said block 3, a
d~stance of 497 59 feet to a V2 tach iron pm set w~th a yellow plastic cap stamped H&N 1849 at
the northwest comer of lot 3, block 3, and being on the east line of lot 2, of smd block 2,
Soutlmdge Center,
THENCE north 00 degrees 27 mmutes 40 seconds west, with the east line of smd block 2, a
d~stance of 419 87 feet to the point ofbeglnmng, and contmmng ~n all 4 086 acre of land
4 486 ACRE TRACT
Block 1, of Southndge, an addition to the City Of Denton, as shown by the plat thereof, recorded
in Volume 3, Page 51 Plat Records, Denton County, Texas
BOTH TRACTS TOTALING 8 752 ACRES OF LAND
Y/lll