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
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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,
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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,
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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"