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2000-368 ORDINANCE NO ~ ~ AN ORDINANCE OF THE CITY OF DENTON, TEXAS DESIGNATING A CERTAIN AREA WITHIN THE CITY LIMITS OF DENTON AS RE1NVESTMENT ZONE NO III 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 C~ty Council of the City of Denton, Texas ("C~ty" or "Mumc~pahty") desires to promote the development or redevelopment of a certmn contiguous geographic area within its corporate city limits and its jurisdiction by the creation of a relnvestment 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 Big D Properties, Inc, a Texas corpora- tion, has requested tax abatement to bmld improvements w~thm the area to be demgnated as Re- investment Zone III, and WHEREAS, the City Council desires to create a proper economic and social enwronment to induce investment of private resources and productive business enterprises in this area of the City, wbaeh 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 September 26, 2000, a public heanng before the C~ty Council was called, set, and held at or after 6 00 p m on October 3, 2000 m the City Council Chambers of the City of Denton at 215 East MeKmney Street ~n the City of Denton, such date being at least seven days after the date of pubhcahon of not,ce of such public heanng and the receipt of written notices of such public heanng by the presiding officer of each taxing unit that mcludes m its boundaries real property that ~s to be included m the proposed remvestment zone, in accordance with §312 201 of the Act, and WHEREAS, such pubhc heanng was held before the consideration and adoption of this ordinance, and WHEREAS, the C~ty, at that hearing, invited any mterested cmzen or his representative to appear and offer testimony or ewdence for or against the creation of the remvestment zone, the boundaries of the proposed remvestment zone, whether all or part of the territory described in the notice calling the public hearing should be included in the proposed relnvestment zone, and the concept of tax abatement, and WHEREAS, m accordance with such pubhc not,ce, all owners of property within the proposed remvestment zone and all other taxing units and other interested persons were given the opportunity at such public hearing to protest the creation of the proposed relnvestment zone or the inclusion of their property in such relnvestment zone, and WHEREAS, on the 6th day of June, 2000, on or before the holding of the above- mentioned pubhe hearing, the City Council passed Resolution No 2000-028 establishing guide- lines and criteria govemlng 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 §312 002, and such tax abatement policy is now m effect and was in 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 against all matters relating to the creation of the remvestment zone, and, after heanng flus testimony and evidence, the City Council deems it in 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 remtatlons 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, tncludlng, 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 in the Code C Base Year - The base year for determining mcreased value shall be the taxable real property value assessed the year m which the Tax Abatement Agreement is executed SECTION 3 That the City, through its C~ty Council, after conducting the above- mentioned pubhc heanng 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 pubhc heanng on the adoptton of the relnvestment 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 mmled 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 relnvestment zone as required by law, and B That prior to holding the public hearing, the Ctty has adopted, by resolution, the guidelines and entena governmg tax abatement agreements by adopting a City of Denton Tax Abate- ment Policy and the City has elected to participate in tax abatement, and Page 2 of 6 C That the C~ty had jurisdiction to hold and conduct the pubhc heanng on the creation of the proposed the re~nvestment zone, pursuant to chapter 312 of the Act, and D That the boundaries of the remvestment zone shall be the area dascnbed ~n the metes and bounds description attached hereto as Exhibit "A" and as shown on the d~agram as the area outlined ~n red attached hereto as Exhibit "B" and being approximately 189 256 acres at 3940 North Elm m the corporate hm~ts of the C~ty of Denton, Texas, such Exhibits "A" and "B" being incorporated and made a part of th~s ordinance as ~f written word for word here~n, and E That the creation of the re~nvestment zone for commemlal/lndustnal tax abatement w~th the ~mprovements expected to be developed by B~g D Properties, Inc would be of benefit to the C~ty and to the land to be ~ncluded ~n the zone, w~th the boundaries as described ~n Exhibit "A," after the expiration of the tax abatement agreement entered into under §312 204 of the Act, and the ~mprovements sought are feasible and practmal, and F That the remvestment zone as defined ~n Exhibit "A" and shown on Exbab~t "B" meets the criteria for the creation ofa relnvestment zone, as set forth ~n §312 202 of the Act, mnce ~t m, "reasonably hkely, as a result of the designation, to contribute to the retention or expansion of primary employment or to attract major investment ~n the zone that would be a benefit to the property and that would contribute to the economic development of the Munlc~pahty," and G That the remvestment zone as defined ~n Exhibit "A" and shown on Exhibit "B" meets the cnterm for the creation of a remvestment zone as set forth ~n the Denton Pohcy for Tax Abatement and the expected ~mprovements ~n the boundaries of the zone are expected to en- hance s~gmficantly the value of all taxable real property located w~thln the relnvestment zone SECTION 4 That pursuant to §312 201 of the Act, the C~ty, through ~ts C~ty Council, hereby creates a re~nvastment zone for commercmlhndustnal tax abatement encompassing only the area described by the metes and bounds description ~n Exh~ba "A" attached hereto and as shown on Exlub~t "B" attached hereto and such re~nvestment zone ~s hereby designated and shall hereinafter be designated as Re~nvestment Zone No III, C~ty of Denton, Texas SECTION 5 That Remvestment Zone No III shall be effecttve as of January 1, 2001, and shall terminate five years t~om that date, on December 31, 2005, unless extended for an add~ttonal five year term or unless earher terminated by action of the C~ty Council m accordance w~th §312 203 of the Act SECTION 6 That to be ehg~ble for tax abatement, a commercmlhndustnal project shall A Be located wholly w~th~n the zone estabhshed hereto, B Meet the reqmrements of the Denton Tax Abatement Pohcy, Page 3 of 6 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 Planmng & Zoning Commission, D Conform to the reqmmments of the City's zomng ordinance and all other applicable laws and regulations, and E Have and mmntmn all land located within the designated zone, apprtused 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 A Dnratlon 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, 2001, and B Share of taxes abated - 100% of taxes on the total value of apprmsed real property improve- ments 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 relnvestment zone from en- tering into a tax abatement agreement with a different share of taxes abated on the total value of apprmsed improvements which are added, in accordance with the reqmrements 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 authonzmg the inspection of the property by municipal employees to ensure that the improvements or repmrs 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, D Recaptunng 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 Requmng the owner of the property to certify annually to the govemmg body of each taxing unit that the owner is in compliance with each apphcable term of the agreement, Page 4 of 6 G Provldang that the governing body of the municipality may cancel or modify the agreement if the property owner fails to comply with the agreement, H Provide that the owner of the property enters into a long-term agreement of not less than five years m duration to receive ~ts electrical utility service from Denton Municipal Electric, and I Provide that the Tax Abatement and Agreement ~s contingent on the property owner - Bag D Properties, Inc - acqumng the property described here~n and m Exhibxt A on or before De- cember 31, 2000, and prowdlng satisfactory evidence to the City, through its City Manager and City Attorney, that the Owner has good fee s~mple t~tle to the property within ten (10) days of the date it acqmres the property J Contain any additional terms and conditions which the City Council deems are necessary, m accordance with §312 205 of the Act, and that are negotmted with the owner of the property Provided, however, nothmg herein shall prevent other taxing units, who include in their boundaries real property w~thm the remvestment zone, from negotiating terms and conditions that are chfferent from any municipal tax abatement agreement, so long as the mandatory terms and condmons reqmred by §312 205 of the Act are included SECTION 9 That the City Council further directs and designates the C~ty Manager and the Director of Economic Development as hmsons for commumcatlon with regard to all matters pertmmng to the Zone, mcludlng, without hm~tatlon, the development of the amendment of the current Denton Tax Abatement Policy ff necessary, the negotmtlon of tax abatement agreements w~th industries, commercial enterprises, and other businesses ehglble 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 ordmances or parts of ordinances m force when the prows~ons of this ordinance became effective which are inconsistent or in conflict w~th the terms or provisions contained ~n this ordinance are hereby repealed to the extent of any such conflict SECTION 11 That ~f any section, paragraph, clause, or provision in this ordinance, or apphcatlon thereof to any person or circumstance is held ~nval~d or unenfomeable, the invalidity or unenforceablhty of such secUon, paragraph, clause, or prowslon 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 th~s ordi- nance was adopted was posted and placed and convemently accessible at all times to the general public at the City Hall of the City for the time mqmred by law, preceding this meeting, as re- qmred by the Open Meetings Act, Tex Gov't Code Ch 551, and that th~s meeting was open to the publtc 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 Council further rati- Page 5 of 6 ties, approves, and confirms such wntten not~ce and contents posting thereof The C~ty Counml further finds that a quorum was present at such meeting SECTION 13 That the contents of the notice ofpubhc heanng, whmh heanng was held before the City Councd and before the passage of thru ordinance on October 3, 2000, the publica- tion of smd notice as hereby ratffied, approved, and confirmed SECTION 14 That this ordinance shall become effective ~mmedlately upon its passage and approval PAssE~,..,~,~ ~PROVED th~s the ~'edday of-- 32e3'-k.C ,20oo EUL1NE BROCK, MAYOR ATTEST' JENNIFER WALTERS, CITY SECRETARY APPROVED AS TO LEGAL FORM HERBERT L PROUTY, CITY ATTORNEY Page 6 of 6 EXHIBIT "A" NOTICE OF PUBLIC HEARING PUBLIC NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL OF THE CITY OF DENTON, TEXAS, WILL HOLD A PUBLIC HEARING TO ALLOW INTERESTED PERSONS TO SPEAK AND PRESENT EVIDENCE FOR OR AGAINST THE ESTABLISHMENT OF REINVESTMENT ZONE III FOR COMMERCIAL AND INDUSTRIAL TAX ABATEMENT PURPOSES THE PURPOSE OF THE ZONE IS TO ATTRACT THE BIG D PROPERTIES, INC. PROJECT AND SIMILAR INDUSTRIAL AND COMMERCIAL BUSINESS ENTERPRISES TO THE CITY OF DENTON, CREATE JOBS, EXPAND THE LOCAL TAX BASE, AND 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 CITY THE PURPOSE OF THE HEARING WILL BE TO DETERMINE WHETHER THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICAL AND WOULD BE A BENEFIT TO THE LAND INCLUDED IN THE ZONE AND TO THE CITY AFTER EXPIRATION OF THE TAX ABATEMENT AGREEMENT THE PUBLIC HEARING WILL BE HELD IN ACCORDANCE WITH CHAPTER 312 OF THE TAX CODE. ALL INTERESTED PARTIES, INCLUDING RESIDENTS OF THE PROPOSED ZONE, ARE ENCOURAGED TO PRESENT THEIR VIEWS AT THE HEARING THE PUBLIC HEARING WILL BE HELD ON OCTOBER 3, 2000, AT 6 00 P M. IN THE CITY COUNCIL CHAMBERS AT CITY HALL AT 215 EAST MCKINNEY STREET, DENTON, TEXAS. REINVESTMENT ZONE III WILL BE COMPOSED OF APPROXIMATELY 189 256 ACRES OF LAND AT 3940 N. ELM IN THE CITY OF DENTON, TEXAS THE REINVESTMENT ZONE IS MORE PARTICULARLY DESCRIBED AS FOLLOWS: "BEING ALL OF LOT 1, BLOCK 1 OF THE TEXAS INSTRUMENTS ADDITION, AN ADDITION TO THE CITY OF DENTON, TEXAS ACCORDING TO THE MAP THEREOF RECORDED IN CABINET G, PAGE 48 OF THE MAP AND PLAT RECORDS OF DENTON COUNTY, TEXAS SAVE AND EXCEPT THOSE PORTIONS CONVEYED TO THE STATE OF TEXAS BY DEED RECORDED IN VOLUME 4212, PAGE 2081, REAL PROPERTY RECORDS, DENTON COUNTY, TEXAS"