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Agenda Packet TC 01/08/2007 1 Town of Trophy Club Town Council Regular Meeting Agenda 100 Municipal Drive Trophy Club, Texas 76262 Monday, January 8, 2007 7:00 P.M. A.1 Call to order and announce a quorum. A.2 Invocation. A.3 Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible." A.4 Discuss and take appropriate action regarding a Proclamation recognizing Honorable Jim Carter for his service as a Denton County Commissioner. A.5 Citizen presentations: this is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. B.1 Consent Agenda: Discuss and take appropriate action regarding an Ordinance amending Chapter 10 of the Code of Ordinances entitled "Public Safety " by amending Article 12, previously entitled "Registered Sex Offenders" to Article 13, providing for the creation of a Fire Marshal's Office. C.1 EDC 4B call to order and announce a quorum. C.2 Town Council and EDC 4B to discuss and consider the expenditure of EDC 4B funds to contract with the Buxton Group for psychographic profiling for the Town of Trophy Club C.3 EDC 4 B to adjourn. D.1 Discuss and take appropriate action regarding the expenditure of EDC 4B funds to contract with the Buxton Group for psychographic profiling of the Town of Trophy Club D.2 Discuss and take appropriate action regarding a Resolution repealing Resolution No. 2005-20 establishing guidelines and criteria for tax abatements and adopting new guidelines and criteria for tax abatements entitled "Town of Trophy Club, Texas Policy Statement for Tax Abatement (2007)" D.3 Discuss and receive input regarding the potential creation of a reinvestment zone and the boundaries of the zone. D.4 Discuss and take appropriate action to approve the financials and variance report dated November 2006. D.5 Items for Future Agenda. D.6 Reports. There will be no action taken regarding any individual project posted under this item and discussion will be limited. If extensive discussion is required, the item may be placed on a future agenda. (a) Town Manager's Report. 2 E.1 Adjourn. 3 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.A.1 Call to order and announce a quorum. 4 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.A.2 Invocation. 5 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.A.3 Pledge of allegiance to the American Flag. Pledge of allegiance to the Texas Flag. "Honor the Texas flag, I pledge allegiance to thee, Texas one and indivisible." 6 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.A.4 Discuss and take appropriate action regarding a Proclamation recognizing Honorable Jim Carter for his service as a Denton County Commissioner. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: (Mayor Sanders) Attachments: 1. Proclamation 7 TOWN OF TROPHY CLUB, TEXAS PROCLAMATION 2007 - A PROCLAMATION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS, TO RECOGNIZE TROPHY CLUB RESIDENT, HONORABLE JIM CARTER FOR HIS EIGHT YEARS of SERVICE AS A DENTON COUNTY COMMISSIONER OF PRECINCT 4. WHEREAS, Honorable Jim Carter has served tirelessly as a Denton County Commissioner for two consecutive terms, a total of eight years; and WHEREAS, as a County Commissioner, the Honorable Jim Carter was responsible for construction and maintenance of County roads and responsive to the particular needs of people living within Precinct 4 such as, setting the tax rate and adopting the County budget, establishing voting precincts, appointing precinct judges and calling County bond elections, building, maintaining and improving County facilities, including jails and providing for veterans assistance; and WHEREAS, the Honorable Carter’s sphere of influence and activities has reached far beyond the Commissioner’s Court into numerous community service programs, thereby making a major contribution to our community; and WHEREAS, these years have been marked by dedicated service to our community as the Honorable Jim Carter served as a Denton County Commissioner, Trophy Club Mayor for 14 years and Chairman or member of the following: Veterans Advisory Board, Denton County Bail Bond Board, Facilities Master Plan Steering Committee, Medical Examiner Committee, County Judges and Commissioners Association of Texas, North and East County Judges and Commissioners Association and Texas Association of Counties; and WHEREAS, the Town of Trophy Club is fortunate to have dedicated residents who willingly share their time and knowledge to help benefit the needs of Trophy Club residents; NOW THEREFORE, BE IT PROCLAIMED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the Town of Trophy Club desires to recognize and thank the Honorable Jim Carter for his dedication and commitment helping to make Trophy Club a great place to call home and recognize that his accomplishments are a source of high community pride and significant positive recognition for our Town. Section 2. That this Proclamation shall become effective from and after its date of passage in accordance with law. Passed and approved by the Town Council of the Town of Trophy Club, Texas, this 8th day of January, 2007. ______________________________ Mayor, Town of Trophy Club, Texas ATTEST: ______________________________ Town Secretary, Town of Trophy Club, Texas 8 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.A.5 Citizen presentations: this is an opportunity for citizens to address the Council on any matter whether or not it is posted on the agenda. The Council is not permitted to take action on or discuss any presentations made to the Council at this time concerning an item not listed on the agenda. The Council will hear presentations on specific agenda items prior to the Council addressing those items. 9 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.B.1 Consent Agenda: Discuss and take appropriate action regarding an Ordinance amending Chapter 10 of the Code of Ordinances entitled "Public Safety " by amending Article 12, previously entitled "Registered Sex Offenders" to Article 13, providing for the creation of a Fire Marshal's Office. EXPLANATION: Ordinance No. 2006-48 was adopted on November 20, 2006 and provided for the creation of a Fire Marshal’s Office. Since the adoption of Ordinance No. 2006-48, a clerical error was discovered whereby the designation of Article XII, “Fire Marshal” was improperly numbered. Having discovered the error it is necessary to adopt this Ordinance with the correctly numbered Article designation as Chapter 10, Article XIII, entitled “Fire Marshal RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. Ordinance 10 TOWN OF TROPHY CLUB, TEXAS ORDINANCE NO. 2007 - AN ORDINANCE OF THE TOWN OF TROPHY CLUB, TEXAS, AMENDING THE CODE OF ORDINANCES OF THE TOWN OF TROPHY CLUB BY AMENDING CHAPTER 10, ENTITLED “PUBLIC SAFETY”, TO CORRECT A CLERICAL ERROR AND RENUMBER ARTICLE XII, ENTITLED “FIRE MARSHAL” TO ARTICLE XIII, “FIRE MARSHAL”; PROVIDING FOR THE INCORPORATION OF PREMISES; PROVIDING FOR THE ADOPTION OF ARTICLE XIII OF CHAPTER 10 BY PROVIDING FOR THE CREATION OF A FIRE MARSHAL’S OFFICE; BY PROVIDING STANDARDS; SETTING FORTH THE AUTHORITY AND DUTIES OF THE FIRE MARSHAL; PROVIDING THE DUTIES OF ARSON INVESTIGATORS; PROVIDING FOR THE CREATION OF AN ARSON INVESTIGATOR RESERVE FORCE; PROVIDING A SAVINGS AND REPEALER CLAUSE; PROVIDING SEVERABILITY; PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Ordinance No. 2006-48 was adopted on November 20, 2006 and provided for the creation of a Fire Marshal’s Office for the Town of Trophy Club (hereinafter referred to as “Town”); and WHEREAS, since the adoption of Ordinance No. 2006-48, a clerical error was discovered whereby the designation of Article XII, “Fire Marshal” was improperly numbered; and WHEREAS, having discovered such error, the Town Council now finds it necessary to adopt this Ordinance with the correctly numbered Article designation as Chapter 10, Article XIII, entitled “Fire Marshal”; and NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: SECTION 1. INCORPORATION OF PREMISES The above and foregoing premises are true and correct and are incorporated herein and made a part hereof for all purposes. SECTION 2. AMENDMENT 2.01. Chapter 10, entitled “Public Safety”, of the Code of Ordinances of the Town of Trophy Club is hereby amended to revise the adoption of Article XII, entitled “Fire Marshal”, to read in its entirety as follows: “Article XIII – Fire Marshal 13.01 Creation of Fire Marshal’s Office There is hereby created a Fire Marshal’s Office for the Town of Trophy Club, Texas, at the head of which shall be the Fire Marshal. The Fire Marshal’s Office shall be composed of the Fire Marshal, Arson Investigators, and other employees as the Town may provide. 13.02 Standards 11 No person shall be certified as a Fire Marshal or Reserve or full-time Arson Investigator until such person has complied with all requirements established by the State of Texas for peace officers and by the Town acting through the Fire Marshal. 13.03 Fire Marshal – Authority and Duties A. The Fire Marshal shall be the chief law enforcement officer for the Fire Marshal’s Office and chief arson investigator and fire code enforcement officer for the Town. He or she shall: (i) organize and administer the Fire Marshal’s Office in conformity with the ordinances of the Town and the Constitution and laws of the State of Texas and the United States; (ii) have immediate direction and control of the Fire Marshal’s Office, subject to the supervision of the Town Manager and such rules, regulations and orders as the Town Manager may prescribed; (iii) consistent with policies and procedures established by the Town Manager, the Fire Marshal shall promulgate all orders, rules and regulations for government of the Fire Marshal’s Office; (iv) appoint and discipline Reserve or full-time Arson Investigators and other employees of the Fire Marshal’s Office, who shall serve at his or her discretion, consistent with the Town’s Personnel Policies and Procedures where applicable; (v) have the same powers in the Town as the Sheriff of Denton County for the prevention and suppression of crime, the arrest of offenders, the taking of bail and the execution of arrest warrants, search warrants and other writs; and (vi) be responsible for all arson investigations and fire code enforcement services and perform such other duties as may be required by the Town Manager. B. The Fire Marshal shall be appointed by the Town Manager and shall serve at the pleasure of the Town Manager who may terminate his or her services at any time consistent with the Town’s Personnel Polices and Procedures, where applicable. 13.04 Duties of Arson Investigators A. The Fire Marshal and all Reserve or full-time Arson Investigators of the Fire Marshal’s Office shall be, and they are hereby vested with all the power and authority given to them as peace officers under the laws of the state, the federal law, and the ordinances and regulations of the Town and it shall be the duty of each such officer: (i) to use his or her best endeavors to prevent the commission within the Town of offenses against the laws of the state, the federal government; and against the ordinances and regulations of the Town; (ii) to observe and enforce all such laws, ordinances and regulations; (iii) to detect and arrest offenders against the same; and (iv) to preserve the public peace, health and safety. B. All peace officers shall execute any criminal warrant, warrants of arrest, any writ, subpoenas or other process that may be placed in their hands by duly constituted authorities. 12 13.05 Arson Investigator Reserve Force A. There is hereby created an auxiliary arson investigation force to be known as the Arson Investigator Reserve Force. B. The Fire Marshal shall be the head of the Arson Investigator Reserve Force, and the members of the reserve shall be under the authority, control and command of the Fire Marshal subject to all provisions of the ordinances of the Town and laws of this state. The Fire Marshal may, by order, establish rules and regulations to govern the Arson Investigator Reserve Force, to fix specific duties of its members and to provide for the maintenance of discipline. He or she may change such orders from time to time, and may command members of the Arson Investigator Reserve Force to obey the instructions of regular Arson Investigators in carrying out their orders. C. Members of the Arson Investigator Reserve Force shall comply with the standards as set forth by the Texas Commission on Law Enforcement Officer Standards and Education prior to appointment. Additional standards may be set by the Fire Marshal. D. The duties of the Arson Investigator Reserve Force, subject at all times to the direction, supervision and control of the Fire Marshal, shall be to assist the regular members of the Fire Marshal’s Office in the enforcement of law and maintenance of peace and order during period of emergencies designated by the Fire Marshal. All members of the Arson Investigator Reserve Force shall be subject to all rules, polices and regulations governing the conduct and operations of regular Arson Investigators. The Fire Marshal may prescribe other duties than those mentioned herein to be performed by the Arson Investigator Reserve Force. E. Members of the Arson Investigator Reserve Force shall be appointed by the Fire Marshal, to serve at his or her discretion, and any member may resign from the Arson Investigator Reserve Force at any time, but it shall be his or her duty to notify the Fire Marshal of his or her resignation.” SECTION 3. SAVINGS AND REPEALER That this Ordinance shall be cumulative of all other Ordinances of the Town affecting enforcement of the Fire Code, arson investigation and all matters related to the Office of Fire Marshall for the Town, and shall not repeal any of the provisions of such Ordinances except in those instances where provisions of those Ordinances are in direct conflict with the provisions of this Ordinance; whether such Ordinances are codified or uncodified, and all other provisions of the Ordinances of the Town of Trophy Club, codified or uncodified, not in conflict with the provisions of this Ordinance, shall remain in full force and effect. Notwithstanding the foregoing, any complaint, action, cause of action or claim which prior to the effective date of this Ordinance has been initiated or has arisen under or pursuant to such repealed Ordinance(s) shall continue to be governed by the provisions of that Ordinance and for that purpose the Ordinance shall be deemed to remain and continue in full force and effect. SECTION 4. SEVERABILITY If any section, article, paragraph, sentence, clause, phrase or word in this Ordinance, or application thereof to any person or circumstance, is held invalid or unconstitutional by a Court of competent jurisdiction, such holding shall not affect the validity of the remaining portions of the Ordinance, and the Town Council hereby declares it would have passed such remaining of the Ordinance despite such invalidity, which remaining portions shall remain in full force and effect. SECTION 5. 13 ENGROSSMENT AND ENROLLMENT The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this Ordinance by copying the exact Caption and Effective Date clause in the minutes of the Town Council of the Town of Trophy Club and by filing this Ordinance in the Ordinance records of the Town and by amending the Code of Ordinances to reflect the changes adopted herein by Council. SECTION 6. EFFECTIVE DATE This Ordinance shall take effect from and after its date of passage in accordance with law, and it is so ordained. DULY PASSED AND APPROVED this the 8th day of January, 2007 ___________________________________ Mayor, Town of Trophy Club, Texas ATTEST: _____________________________________ Town Secretary, Town of Trophy Club, Texas APPROVED AS TO FORM: _____________________________________ Town Attorney, Town of Trophy Club, Texas 14 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.C.1 EDC 4B call to order and announce a quorum. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. None 15 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.C.2 Town Council and EDC 4B to discuss and consider the expenditure of EDC 4B funds to contract with the Buxton Group for psychographic profiling for the Town of Trophy Club EXPLANATION: EDC4-B by unanimous vote has recommended the approval and funding of the attached proposal. RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. Proposal 2. References 3. New York Post Article 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.C.3 EDC 4 B to adjourn. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1.None 36 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.D.1 Discuss and take appropriate action regarding the expenditure of EDC 4B funds to contract with the Buxton Group for psychographic profiling of the Town of Trophy Club EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. None 37 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.D.2 Discuss and take appropriate action regarding a Resolution repealing Resolution No. 2005-20 establishing guidelines and criteria for tax abatements and adopting new guidelines and criteria for tax abatements entitled "Town of Trophy Club, Texas Policy Statement for Tax Abatement (2007)" EXPLANATION: The Council passed a Resolution approving tax abatement guidelines in August of 2005. The attached document repeals the August 2005 Resolution and adopts new guidelines which are the same in all respects except that definitions and a tax abatement schedule recommended by EDC 4B have been included. The additions have been highlighted in yellow for your review and consideration. Because Tax Abatement Guidelines are effective for 2 years from the date of their passage, and this amendment is proposed prior to the expiration of the 2 year term, a three fourths vote of Council is required to pass this Resolution repealing and adopting new guidelines. Attachments: 1. Resolution 38 TOWN OF TROPHY CLUB, TEXAS RESOLUTION NO. 2007- A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS REPEALING RESOLUTION NO. 2005-20 APPROVING GUIDELINES AND CRITERIA FOR TAX ABATEMENTS AND ADOPTING A NEW RESOLUTION APPROVING GUIDELINES AND CRITERIA ENTITLED “TOWN OF TROPHY CLUB, TEXAS POLICY STATEMENT FOR TAX ABATEMENT (2007)” AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the Town of Trophy Club is a Home Rule municipality incorporated under the Constitution and the laws of the State of Texas; and WHEREAS, the Town Council desires to stimulate continued economic growth in the Town of Trophy Club, while preserving the values and existing assets that provide the quality of life our residents have come to enjoy; and WHEREAS, the Town acknowledges that both the retention of economic assets and existing jobs and the creation of new jobs and economic endeavors have an important place in striking a positive economic balance in the Town as well as a benefit to all residents of the Town; and WHEREAS, Chapter 312 of the Texas Tax Code authorizes a governmental entity to provide for tax abatements pursuant to properly adopted guidelines and criteria governing tax abatement agreements; and WHEREAS, the Town Council previously adopted Resolution No. 2005-13 expressing its intent to become eligible to participate in tax abatements, and subsequent to its adoption, the Town adopted Resolution No. 2005-20 entitled “Town of Trophy Club, Texas Policy Statement for Tax Abatement"; and WHEREAS, the Town Council has reviewed the proposed amendments to the current Guidelines and Criteria for Tax Abatements entitled “Town of Trophy Club, Texas Policy Statement for Tax Abatement”, which was adopted via Resolution No. 2005-20; and WHEREAS, the Town Council finds that the continued economic growth of the Town would be best served by amending those guidelines to set forth an abatement schedule and to adopt new Guidelines and Criteria for Tax Abatements entitled “Town of Trophy Club, Texas Policy Statement for Tax Abatement 2007”, a copy of which is attached hereto and incorporated herein as Exhibit “A”; and WHEREAS, the proposed Exhibit “A” sets forth new guidelines and criteria for tax abatements that serve the goal of furthering economic development while preserving the existing assets of the Town; NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF TROPHY CLUB, TEXAS: Section 1. That the foregoing recitals stated in the preamble are found to be true and correct and are deemed incorporated into the body of this Resolution as if copied herein in their entirety. Section 2. That by a vote of three-fourths of the members of the Town Council, Resolution No. 2005-20 is hereby repealed and this Resolution setting forth new Guidelines and Criteria for Tax Abatements entitled “Town of Trophy Club, Texas Policy Statement for Tax Abatement (2007)”, Exhibit “A”, is determined to be sound and beneficial to the Town of Trophy Club and is hereby approved and adopted in its entirety. Section 3. That this Resolution shall become effective from and after its date of passage in accordance with law. 39 PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas on this the 8th day of January, 2007. Mayor Town of Trophy Club, Texas ATTEST: [SEAL] Town Secretary Town of Trophy Club, Texas APPROVED TO AS FORM: Town Attorney Town of Trophy Club, Texas 40 EXHIBIT “A” TOWN OF TROPHY CLUB, TEXAS DEFINITIONS Eligible Facility means a structure or building that is designed, constructed or remodeled for use solely as a commercial or industrial business purpose and that is located wholly within a Reinvestment Zone. Expansion means the addition of buildings or structures, or the addition of fixed machinery or equipment which is added for the purpose of increasing production capacity. Facility means property improvements completed or in the process of construction, which together comprise an integral whole. Modernization means the replacement and upgrading of existing facilities which increase the productive input or output, updates the technology or substantially lowers the unit cots of the operation. Modernization may result from the construction, alternation or installation of buildings, structures, fixed machinery or equipment. It shall not be for the purpose of reconditioning, refurbishing or repairing. New Employment means an increase to the current number of full-time jobs. New Facility means a property previously undeveloped which is placed into service by means other than or in conjunction with expansion or modernization. New Value means the net increase in the value of an Eligible Facility, including the real estate, improvements and fixtures, together with the machinery and equipment therein and excluding inventory. Reinvestment Zone means that area of the Town of Trophy Club identified as a Reinvestment Zone in an ordinance adopted by the Town Council of Trophy Club, Texas in accordance with the requirements of Chapter 312 of the Texas Tax Code, as amended, and/or any other applicable law. POLICY STATEMENT FOR TAX ABATEMENT I. General Purpose and Objectives The Town of Trophy Club is committed to the promotion and retention of high quality development in all parts of the Town and to an ongoing improvement in the quality of life for its citizens. To the extent that these objectives are generally served by the enhancement and expansion of the local economy, the Town of Trophy Club will, on a case-by-case basis, give consideration to providing tax abatement as stimulation for economic development in Trophy Club. The Town will consider providing incentives in accordance with the procedures and criteria outlined in this document. The adoption of the guidelines and criteria by the Trophy Club Town Council shall not limit the discretion of the Town Council to decide whether to enter into a specific Tax Abatement Agreement; limit the discretion of the Council to delegate to its employees the authority to determine whether or not the Town Council should consider a particular application or request for tax abatement; or create any property, contract, or other legal right in any person to have the Town Council consider or grant a specific application or request for tax abatement. The adoption of the guidelines and criteria by the Town of Trophy Club shall not imply or suggest that the Town is under any obligation to provide tax abatement to any applicant. All applicants shall be considered on a case-by-case basis. II. Criteria and Review All requests for tax abatement shall be reviewed by the Town Council for Trophy Club. 41 The review process shall be based upon an evaluation of the criteria that each applicant will be requested to address in narrative format and such supplemental information as may be requested by Town. Following an assessment of the narrative response, the Town Council shall determine whether it is in the best interests of the Town to offer an abatement to the applicant. Additional consideration beyond the criteria will include such items as the degree to which the project/applicant furthers the goals and objectives of the Town or meets or compliments a special need identified by the Town. III. Tax Abatement Limitations Tax Abatement shall be offered subject to the following limitations and criteria: A. Real Property. The Town Council of the Town of Trophy Club may agree in writing with the owner of taxable real property that is located in a reinvestment zone, but that is not in an improvement project financed by tax increments bonds, to exempt from taxation a portion of the value of the real property or of tangible personal property located in the real property, or both, for a period not to exceed ten (10) years. A Tax Abatement Agreement under this section is subject to the rights of holders of outstanding bonds of the municipality and shall be subject to the condition that the owner of the property make specific improvements or repairs to the property. B. Leasehold Property. The Town Council of the Town of Trophy Club may agree in writing with the owner of a leasehold interest in real property that is located in a reinvestment zone to exempt a portion of the value of the leasehold interest, if taxable, or of improvements or tangible personal property located on the real property subject to the leasehold interest, for a period not to exceed ten (10) years. A Tax Abatement Agreement under this section is subject to the rights of holders of outstanding bonds of the municipality and shall be subject to the condition that the owner of the leasehold interest make specific improvements or repairs to the property. C. Effective Exemption Period. An agreement may provide for the exemption of the real property in each year covered by the agreement only to the extent the real property value for that year exceeds its value for the year in which the agreement is executed. A Tax Abatement Agreement granted to a Project shall become effective on January 1 of the year following the issuance of a Certificate of Occupancy for the new facilities unless otherwise specified in the Tax Abatement Agreement. D. Tangible Personal Property. An agreement may provide for the exemption of tangible personal property located on real property in each year covered by the agreement, other than tangible personal property that (1) was located on the real property at any time before the period covered by the agreement with the Town, and/or (2) that is not inventory or supplies. E. Comprehensive Zoning Ordinance. Any improvement, repair, development, or redevelopment taking place under an agreement under these guidelines must conform to the Comprehensive Zoning Ordinance of the Town of Trophy Club. F. Value and Term of Abatement. Once a determination has been made that a tax abatement should be offered, the value and term of the abatement will be determined based upon information provided in the narrative response and as determined appropriate in the sole discretion of the Town Council. Provided however, that subsequent Agreements made with owners of property in a reinvestment zone must contain identical terms for the portion of the value of the property that is exempt and the duration of the exemption. G. Creditworthiness. The Town of Trophy Club reserves the right to verify the applicant’s creditworthiness prior to granting a tax abatement and to review the financial condition of the 42 Project during the term of the abatement. The applicant’s creditworthiness shall be considered by the Town prior to entering into a Tax Abatement Agreement. H. Cost of Municipal Services. The Town of Trophy Club shall make a determination of the estimated cost of providing municipal services to the proposed Project. This cost shall be a factor considered by the Town Council when making a determination as to the granting of an abatement and the value and term of such abatement. IV. Procedural Guidelines Any person, organization or corporation desiring that Trophy Club consider providing tax abatement to encourage location, expansion or modernization of operations within the corporate limits of the Town, shall be required to comply with the procedural guidelines listed in this section. Nothing within these guidelines shall imply or suggest that Trophy Club is under any obligation to provide tax abatement in any amount or value to any applicant. Preliminary Application Steps A. Applicant shall complete the attached “Application for Tax Abatement” Exhibit “B”. B. Applicant shall address all criteria questions outlined in the application in narrative format. C. Applicant shall prepare a plat showing the precise location of the property, all roadways within five hundred feet (500’) of the site, and all existing land uses and zoning within five hundred feet (500’) of the site. D. Applicant may, upon request of Town Council, be required to provide substantiation of the economic feasibility of the overall project to assist in determining the long-term benefit to the Town. E. Fourteen (14) days prior to the public hearing, the applicant must provide a complete legal description of the property and a general address of the property. F. Applicant shall complete all forms and information detailed in items A through E above and submit them to the Town Manager, Town of Trophy Club, 100 Municipal Drive, Trophy Club, Texas 76262. Application Review Steps A. All information in the application package detailed above will be reviewed for completeness and accuracy. Additional information may be requested as needed. B. The application will be forwarded to the Town Manager for distribution to the appropriate Town departments for internal review and comments. Additional information may be requested as needed. Consideration of the Application A. The completed application package and staff comments will be returned, with all relevant materials, to the Town Council for consideration. B. The Trophy Club Town Council may consider a Resolution calling a public hearing to consider establishment of a tax reinvestment zone. At least seven (7) 43 days prior to the public hearing, the Town Secretary shall give written notice to the presiding officer to each other taxing unit that has taxing jurisdiction over real property within the proposed reinvestment zone and shall publish notice of the hearing in a newspaper of general circulation in the Town. C. The Trophy Club Town Council may hold the public hearing and determine whether the project is feasible and practical and would be of benefit to the land to be included in the zone and to the municipality after the expiration of the Tax Abatement Agreement. Additionally, the Town Council must find that the zone meets one of the applicable criteria for reinvestment zones. These findings must be approved by the Town Council at an open meeting and noted in the minutes for that meeting. D. The Trophy Club Town Council may consider adoption of an Ordinance designating the area described in the legal description of the proposed project as a reinvestment zone. E. The Trophy Club Town Council may consider adoption of a Resolution approving the terms and conditions of a contract between the Town and the applicant governing the provision of the tax abatement only at a regularly scheduled meeting of the Council. Provided however, that at least seven (7) days before the Town Council grants a tax abatement, the Town Secretary shall deliver written notice of the Town’s intent to enter into a Tax Abatement Agreement to the presiding officer at each of the other taxing units in which the property is located. The notice shall include a copy of the proposed Tax Abatement Agreement. F. The Tax Abatement Agreement shall, at a minimum, contain terms that: 1. List the kind, number and location of all proposed improvements to the property; 2. Provide access to and authorize inspection of the property by the Town to ensure compliance with the agreement; 3. Limit the use of the property consistent with the Town’s development goals; 4. Provide for recapturing property tax revenues that are lost if the owner fails to make the improvements as provided by the agreement or fails to meet the goals established by the agreement; 5. Specify each term that was agreed upon with the property owner and require the owner to annually certify compliance with the terms of the agreement to the Town and all other units, as applicable; 6. Allow the Town to modify or terminate the agreement at any time if the property owner fails to comply with the terms of the agreement, and provide that a retroactive amendment of a Tax Abatement Agreement shall not extinguish an existing tax liability; 7. Provide that a person/entity that does not qualify for an exemption on January 1 of any year may not receive the exemption that year; and 8. Specify that if a project granted a tax abatement ceases to operate or is no longer in conformance with the adopted guidelines of the Town, the 44 Tax Abatement Agreement shall not remain in effect for the period of time during which the Project is not operating or is not in conformance. G. The governing bodies of any other applicable taxing unit may consider ratification of and participation in the abatement agreement between the Town and the applicant. H. Information on tax abatement provided to the Town of Trophy Club in connection with an application or request for tax abatement that describes the specific processes or business activities to be conducted or the equipment or other property to be located on the property for which tax abatement is sought is confidential and not subject to public disclosure until the Tax Abatement Agreement is executed. I. The Town will send copies of the agreement to the Texas Comptroller’s Office or other state agency as required by law in the year following the designation of a zone or the execution of a Tax Abatement Agreement as required by law. J. Any company approved for a tax abatement by the Town of Trophy Club, must achieve measurable progress, as specified in the Tax Abatement Agreement, pertaining to construction milestones, capital investment in real property improvements, business personal property improvements, employment levels, etc., in a timely manner. If measurable progress is not made, the Town will exercise its options as outlined in the Tax Abatement Contract and pursuant to applicable law. Tax abatements may only be applied to incremental increases in valuation and will apply to tangible personal property, excluding inventory and supplies. V. Expiration of Tax Abatement Policy The guidelines and criteria adopted pursuant to this Tax Abatement Policy shall be effective upon adoption and remain in effect for a period of two (2) years. The guidelines and criteria may be amended or repealed prior to the expiration of the two (2) year period only by a favorable vote of three-fourths (¾) of the members of the Trophy Club Town Council. VI. Severability In the event that any term, section, clause, sentence, paragraph or any part of this Tax Abatement Policy is adjusted by a court of competent jurisdiction to be invalid, such invalidity shall not affect, impair or invalidate the remainder of the guidelines and criteria contained in the Tax Abatement Policy. 45 EXHIBIT “B” TOWN OF TROPHY CLUB TAX ABATEMENT SCHEDULE The portion of the property for which a business may qualify for tax abatement will be determined on the basis of the level of New Value or New Employment added within the Reinvestment Zone. For example, if New Value is added having an aggregate value of at least the amount specified in the following Tax Abatement Qualifying Schedule, or if New Employment adds at least the minimum number of jobs specified in such schedule, then the Abatement Schedule for which the business qualifies shall be the greater of the two. TAX ABATEMENT QUALIFYING SCHEDULE NEW VALUE AT LEAST NEW EMPLOYMENT AT LEAST USE SCHEDULE NUMBER $500,000 5 1 $1,000,000 10 2 $5,000,000 20 3 $10,000,000 30 4 $30,000,000 Negotiable Negotiable Depending on the schedule for which the business qualifies, a percentage of the tax may be abated on an Eligible Facility as specified on the following: ABATEMENT SCHEDULE: YEAR #1 #2 #3 #4 1 25% 50% 75% 90% 2 25% 50% 75% 90% 3 - 25% 50% 75% 4 - 25% 50% 50% 5 - - 25% 25% 46 EXHIBIT “C” TOWN OF TROPHY CLUB APPLICATION FOR TAX ABATEMENT 1. Applicant Company’s Name ________________________________________________ Company’s Representative_________________________________________________ Mailing Address _________________________________________________________ Telephone Number_______________________________________________________ Fax Number ____________________________________________________________ Email Address___________________________________________________________ 2. Property Owner__________________________________________________________ Mailing Address _________________________________________________________ Telephone Number_______________________________________________________ Fax Number ____________________________________________________________ Email Address___________________________________________________________ 3. Property Owner’s Representative____________________________________________ Mailing Address _________________________________________________________ Telephone Number_______________________________________________________ Fax Number ____________________________________________________________ Email Address___________________________________________________________ 4. Property Address ________________________________________________________ Property Legal Description (Provide attachment if by metes and bounds)_____________ ______________________________________________________________________ 5. Located within Town of Trophy Club?_____________________________________________________ Northwest Independent School District? ______________________________________ Denton County? _________________________________________________________ Tarrant County? _________________________________________________________ 6. Description of Project _____________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ _____________________________________________________________________________ 7. Date projected for occupancy of project/initiation of operations:_____________________ 8. Acreage of site:__________________________________________________________ 9. Square footage of occupied space: __________________________________________ 10. Type of occupancy: Owner/Occupied Landlord/Tenant If leasing, what is the term of the lease?_______________________________________ 47 (Check all that apply) 11. The business is: Existing Expanding New Relocating (From out-of-State) Relocating (From another city/county in Texas) 12. Business Type: Hotel/Group Residence Retail Industrial Manufacturing Medical Wholesale Energy Entertainment Research/Development Commercial/Real Estate Other_________________ 13. Type of property abatement requested: Real Personal Both 48 Employment Impact 1. Please provide a schedule of projected employment milestones including: Initial employment _____________________________________________________ (at occupancy) Projected employment (milestone) ________________________ by_____________ (indicate date) Projected employment (milestone) ________________________ by_____________ (indicate date) Anticipated full employment ______________________________by _____________ (indicate date) 2. What is the number of new jobs that will be created? 3. What is the number of jobs, if any, that will be retained in Trophy Club by this project? 4. What is the number of jobs that will be relocated to Trophy Club from: The DFW Metroplex? Other locations? 5. What types of jobs will be created? 6. What will be the average annual salary? 7. What will the total annual payroll be? Fiscal Impact Initial Year Year ______ (If applicable) Year______ (If applicable) 1. What is the value of the Real Property improvements that will be added to the tax base? 2. What is the value of the Business Personal Property improvements that will be added to the tax base? TOTAL IMPROVEMENTS $ $ $ 3. Estimate of amount of direct property and sales tax generated: ________________________ Please provide detailed description of the basis upon for your estimate: _________________ _________________________________________________________________________ 4. What is the value of sales that will be subject to sales tax collection by the Town of Trophy Club? Community Impact 1. Is this a retention and/or expansion and/or modernization project of an existing Trophy Club business? 2. How will this project affect existing businesses? 3. What effect would the project have on the local housing market? 4. What effect would the project have on existing residential neighborhoods? 5. Will development of the project create any environmental impact? Air quality, water quality, visual quality, etc. 6. Will any zoning changes be necessary to accommodate the project? 49 7. Is the project compatible with the Town’s Comprehensive Plan? 8. Will the business occupy existing space? 9. Will the business construct a new facility? 10. Will the business occupy space that is currently planned or under construction? 11. What is the projected impact on the Northwest Independent School District? 12. Please summarize the overall impact on the Town of Trophy Club. 13. Please describe the necessity in requesting property tax abatement? Describe the competitive, financial or other issues associated with this application. 50 FOR INTERNAL USE ONLY RECOMMENDED TAX ABATEMENT • Real Property: $______________ Length of Abatement (Years): _______________ Percentage of Abatement: _______________ • Business Personal Property: $______________ Length of Abatement (Years): _______________ Percentage of Abatement: _______________ • Estimated cost to the Town of Trophy Club to provide municipal services to the proposed Project: $_____________ 51 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.D.3 Discuss and receive input regarding the potential creation of a reinvestment zone and the boundaries of the zone. EXPLANATION: Local governments often use tax abatements to attract new commercial enterprises, and to encourage the retention and development of existing businesses. Chapter 312 of the Texas Tax Code defines the three step process required by a city or county to grant tax abatements. These steps are the passage of a resolution to consider tax abatements, the development and approval of a policy and finally the creation of a reinvestment zone, which defines the area for which abatements may be offered. Trophy Club has accomplished the first two steps, but in order to actually offer abatements, a reinvestment zone(s) needs to be defined. Staff is requesting the Council to provide direction for the area(s) to be included in the reinvestment zone. Once staff has that direction, a public hearing notice will be published stating the Town’s intent to consider the reinvestment zone and the legal description of the area(s) under consideration. In addition, seven days’ written notice of the hearing must be given to the presiding officer of each of the other taxing units that has taxing jurisdiction over real property within the zone. This would include, the MUDs, Denton County, Tarrant County and Northwest ISD, although the school district is prohibited from participating. These entities are encouraged to participate, but their participation is not required for the Town to proceed. 52 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.D.4 Discuss and take appropriate action to approve the financials and variance report dated November 2006. EXPLANATION: The November financials and variance report were included on the Town Council CDs. RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. None 53 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.D.5 Items for Future Agenda. EXPLANATION: RECOMMENDATION: ACTION BY COUNCIL: Attachments: 1. List 54 Items for Future Agendas 1. Discuss and take appropriate action relative to an Ordinance amending Chapter 1 of the Code of Ordinances of the Town, entitled "Administration", Article VIII, entitled "Schedule of Fees", amending Section 8.15, entitled "Parks and Recreation."(1/22) 2. Discuss and provide input relative to an Ordinance amending the Chapter 3, Article XII of the Code of Ordinances, Standards for the Repair, Removal or Demolition of Substandard Buildings and establishing a Building Standards Commission for the Town. (1/22) 3. Discuss and take appropriate action relative to an Ordinance amending Chapter 8 of the Code of Ordinances of the Town, entitled "Nuisances", to address standing or stagnant water. (2/5) 4. Ordinance to designate The Town of Trophy Club a "Smoke Free" Town. (2/5) 5. Ordinance to remove uninsured vehicles from the streets of Trophy Club by impounding the vehicle until the vehicle is properly insured and inspected. (2/19) 6. Ordinance to impound any vehicle that is being driven on the streets of Trophy Club when the driver does not have a current or valid Drivers License. (2/19) 7. Discuss and take appropriate action relative to an Ordinance amending Chapter 8 of the Code of Ordinances of the Town, entitled "Nuisances", Article III, entitled "Weeds", amending Section 3.01, entitled "Unlawful to Permit Weeds, Grass or any other Plant to Grow Higher than Twelve Inches." 8. Discuss and consider an Ordinance requiring bicycle helmets and bicycle laws. 9. Review of the Property Maintenance Ordinance. 10. Discuss and take appropriate action regarding an Ordinance amending Chapter 14 entitled "Design Standards", Figures 1-7, 1-8 and 1-9 of Section 1 entitled "Roadway Design" of the Code of Ordinances of the Town. 11. Discussion about storm water discharge from pools. 12. Discuss and appropriate action regarding a policy for accepting gifts. 13. Discussion of drainage ditch that runs between Village Trail and Lakeshore Drive and consideration of improvements for area to create a linear park. 14. Discuss and take appropriate action relative to an Ordinance amending Article IV, "Sign Regulations", Chapter 5 of the Code of Ordinances, entitled "General Land Use", by amending Sections 4.05 (relative to political signs and quantity per commercial lot.) 15. Discuss and take appropriate action to repeal Ordinance 1987-07 and approve an Ordinance establishing the Town's Emergency Management System. 55 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.D.6 Reports. There will be no action taken regarding any individual project posted under this item and discussion will be limited. If extensive discussion is required, the item may be placed on a future agenda. (a) Town Manager's Report. Attachments: 1. None 56 COUNCIL MEMORANDUM From: The Office of the Town Manager Date: 1-8-2007 Subject: Agenda Item No.E.1 Adjourn.