CP 2002-12-10
NOTICE OF CITY COUNCIL MEETING AND AGENDA
DECEMBER 10, 2002
CANDY SHEEHAN, DOUG STOVER, Place 5
Mayor Mayor Pro Tem
TIM BRANCHEAU, Place 1 MARSHA TUNNELL, Place 4
JAYNE PETERS, Place 2 DAVE HERRING, Place 6
DIANA RAINES, Place 3 BILL YORK, Place 7
JIM WITT, City Manager
MEETING TIME AND PLACE:
Call to Order 5:00 p.m. Council Chambers (Open to the Public)
Work Session Immediately Following 2nd Fl. Conf. Room (Open to the Public)
Executive Session Immediately Following 1st Fl. Conf. Room (Closed to the Public)
Work Session Immediately Following 1st Fl. Conf. Room (Open to the Public)
Regular Session 7:00 p.m. Council Chambers (Open to the Public)
Notice is hereby given that the City Council of the City of Coppell, Texas will meet
in Regular Called Session on Tuesday, December 10, 2002, at 5:00 p.m. for Work
Session, followed by Executive Session; the remainder of Work Session will follow
immediately thereafter, and Regular Session will begin at 7:00 p.m., to be held at
Town Center, 255 Parkway Boulevard, Coppell, Texas.
As authorized by Section 551.071(2) of the Texas Government Code, this meeting
may be convened into closed Executive Session for the purpose of seeking
confidential legal advice from the City Attorney on any agenda item listed herein.
The City of Coppell reser ves the right to reconvene, recess or realign the Work
Session or called Executive Session or order of business at any time prior to
adjournment.
The purpose of the meeting is to consider the following items:
ITEM # ITEM DESCRIPTION
REGULAR SESSION (Open to the Public)
1. Call to order.
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ITEM # ITEM DESCRIPTION
WORK SESSION (Open to the Public)
2. Convene Work Session
A. Joint Work Session with the Planning & Zoning Commission
regarding Old Coppell Land Use.
EXECUTIVE SESSION (Closed to the Public)
3. Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation with City
Attorney.
1. Update regarding Shea v. City of Coppell.
2. American Library Association v. United States; No. 02-361
pending before the U. S. Supreme Cour t concerning filing of an
amicus brief on behalf of local governments.
B. Section 551.072, Texas Government Code - Deliberation regarding
Real Proper ty.
1. Land Acquisition West of Denton Tap and South of Bethel
Road.
WORK SESSION (Open to the Public)
4. Reconvene Work Session
A. Discussion regarding Fee Resolution amending Ambulance Rates.
B. Discussion regarding Council Goals.
C. Discussion of Agenda Items.
REGULAR SESSION (Open to the Public)
5. Invocation.
6. Pledge of Allegiance.
7. Consider approval of a proclamation naming the month of December as
COPPELL ISD EDUCATION FOUNDATION MONTH, and authorizing the
Mayor to sign.
8. Repor t by the Library Board.
9. Citizen's Appearances.
CONSENT AGENDA
10. Consider approval of the following consent agenda items:
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ITEM # ITEM DESCRIPTION
A. Consider approval of minutes: November 12, 2002.
B. Consider approval of Addenda to CISD educational development
grants for: Literacy Suppor t in the amount of $50,391; English as a
Second Language in the amount of $39,429; and Elementar y
Spanish Teachers in the amount of $10,473 and authorizing the City
Manager to sign.
C. Consider approval of a grant agreement from the Coppell Education
Development Corporation and the City of Coppell to the Coppell
Independent School District for digital video equipment in the
amount of $23,500 using funds collected from the 379A sales tax;
and authorizing the City Manager to sign.
D. Consider approval of an ordinance amending the Code of Ordinances
of the City of Coppell Ar ticle 8-3, Sections 6 and 7 Truck Parking to
prohibit parking, stopping or standing at all times by vehicles with a
rated capacity over one and one-half tons on the nor th side of Bethel
Road from its point of intersection with Coppell Road eastward to its
point of intersection with Mitchell Street; and authorizing the Mayor
to sign.
E. Consider approval of a variance to the Coppell Code of Ordinances
Chapter 13, Appendix C Design Criteria and Standards, Section II
Stor m Sewers and Drainage, paragraph B Engineering Design for the
construction of Bethel Road.
F. Consider approval of a Resolution approving a Tax Abatement
Agreement between the City of Coppell and Texas Dugan Limited
Par tnership and The Container Store, Inc., and authorizing the Mayor
to sign.
G. Consider approval of an Economic Development Incentive Agreement
between the City of Coppell and The Container Store, and
authorizing the Mayor to sign.
H. Consider approval of an Economic Development Incentive Agreement
between the City of Coppell and Texas Dugan Limited Par tnership,
and authorizing the Mayor to sign.
I. Consider approval of a Resolution approving a Tax Abatement
Agreement between the City of Coppell and Washington Mutual
Bank, FA, and authorizing the Mayor to sign.
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ITEM # ITEM DESCRIPTION
J. Consider approval of the Interlocal Cooperation Agreement to
promote Library Ser vices to Denton County Residents, for which the
city will be compensated $10,784 for fiscal year 02/03 and
authorizing the Mayor to sign.
K. Consider approval of a Resolution urging the 78th Texas Legislature
to adopt initiatives to preser ve Texas air quality, enhance public
health and promote economic prosperity; and authorizing the Mayor
to sign.
END OF CONSENT
11. PUBLIC HEARING:
Consider approval of Case No. S-1203, CiCi’s Pizza, zoning change request
from C (Commercial) to C-S-1203 (Commercial-Special Use Permit-1203),
to allow a 4,231 square-foot restaurant at 120 S. Denton Tap Road, Suite
170.
12. Consider approval of the MacAr thur Vista Center, Lot 1, Block A, Site Plan,
to allow the development of an approximate 10,048 square-foot
office/retail/medical building on 1.409 acres of proper ty located along the
east side of MacAr thur Blvd., south of Denton Creek.
13. Consider approval of the MacAr thur Vista Center, Lot 1, Block A, Minor
Plat, to allow the development of an approximate 10,048 square-foot
office/retail/medical building on 1.409 acres of proper ty located along the
east side of MacAr thur Blvd., south of Denton Creek.
14. Consider approval of the IAAM, Inc., Addition, Lot 1, Block 1, Site Plan
Amendment, to allow the construction of covered parking over 68 existing
parking spaces on 4.377 acres of proper ty located at the southeast corner
of Fritz Drive and I.H. 635 (636 Fritz Drive).
15. Consider approval of an Ordinance for Case No. S-1174R, Deliman’s Grille,
zoning change from PD-133-HC (Planned Development-133-Highway
Commercial) to PD-133R4-HC-S.U.P-1174R (Planned Development-133R4-
Highway Commercial, Special Use Per mit-1174R), to amend various
development standards of the Planned Development and to allow the
construction of an approximate 3,649 square-foot restaurant with a drive-
through pick-up window and private club, to be located along the west side
of Denton Tap Road, approximately 204 feet nor th of Natches Trace; and
authorizing the Mayor to sign.
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ITEM # ITEM DESCRIPTION
16. Consider approval of an 18-month extension of time as it applies to the
expiration date of the Site Plan Amendment for Lot 1R, Block 2, of
Gateway Business Park (Haver ty’s).
17. Consider approval of bid no. Q-1002-01 for the installation of a creek
crossing at Wagon Wheel Park, to Green Scaping in an amount not to
exceed $245,534.50 and authorizing the President of the CRDC to sign a
contract based on this award.
18. Consider approval of awarding Bid/Contract #Q-0902-01 to Green Scaping
in the amount of $135,737 for the construction of the Riverchase Elevated
Sidewalk as provided for in CRDC funds and by Carrollton-Farmers Branch
ISD; and authorizing the City Manager to sign.
19. Consider approval of an ordinance regarding TXU Gas Distribution’s
settlement offer to change rates within the corporate city limits of the City
of Coppell, and authorizing the Mayor to sign.
20. Consider approval of the Coppell Recreation Development Corporation
Officers for 2002-2003 as follows: President, Victor Burke; Vice President,
Stephen Hafer; Secretary, Mark Tepper.
21. Consider approval of resignation of Sam Clark from the Planning and
Zoning Commission and consider appointment of a replacement.
22. Necessary action resulting from Work Session.
23. Mayor and Council Repor ts.
A. Repor t by Mayor Sheehan regarding Dallas Regional Mobility
Coalition - DART and Legislative committee repor ts.
B. Repor t by Mayor Sheehan regarding holiday activities in Coppell.
C. Repor t by Councilmember Peters regarding the TEX-21 Quar terly
Meeting.
D. Repor t by Councilmember Tunnell regarding National League of
Cities Conference.
24. Necessary Action Resulting from Executive Session.
Adjournment.
____________________________________
Candy Sheehan, Mayor
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CERTIFICATE
I cer tify that the above Notice of Meeting was posted on the bulletin board at the
City Hall of the City of Coppell, Texas on this _________ day of _________________,
2002, at __________________.
____________________________________
Libby Ball, City Secretar y
DETAILED INFORMATION REGARDING THIS AGENDA IS AVAILABLE
ON THE CITY'S WEBSITE (www.ci.coppell.tx.us) UNDER PUBLIC
DOCUMENTS, COUNCIL PACKETS.
PUBLIC NOTICES
STATEMENT FOR ADA COMPLIANCE
The City of Coppell acknowledges its responsibility to comply with the Americans With
Disabilities Act of 1990. Thus, in order to assist individuals with disabilities who require
special services (i.e. sign interpretative services, alternative audio/visual devices, and
amanuenses) for participation in or access to the City of Coppell sponsored public
programs, services and/or meetings, the City requests that individuals make requests for
these services forty-eight (48) hours ahead of the scheduled program, service and/or
meeting. To make arrangements, contact Vivyon V. Bowman, ADA Coordinator or other
designated official at (972) 462-0022, or (TDD 1-800-RELAY, TX 1-800-735-2989).
IN COMPLIANCE WITH CITY OF COPPELL ORDINANCE NO. 95724
Carrying of a concealed handgun on these premises or at any official political meeting in
the City of Coppell is illegal.
Es ilegal llevar consigo un arma de fuego oculta, adentro de este edificio, o en cualquier
junta oficial de politica en la ciudad de Coppell.
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KEY TO COUNCIL GOALS ICONS 2002 - 2003 Economic Development Quality Public Facilities & Infrastructure Hometown Feeling Excellent City Services & High Citizen Satisfaction Quality Development Safe Community Effective Transportation Outstanding Leisure & Recreation Amenities & Programs
DATE: December 10, 2002
ITEM #: WS-2
AGENDA REQUEST FORM
WORK SESSION
A. Joint Work Session with the Planning & Zoning commission regarding Old Coppell Land Use.
CM REVIEW:
Agenda Request Form - Revised 10/02 Document Name: %worksession
DATE: December 20, 2002
ITEM #: ES-3
AGENDA REQUEST FORM
EXECUTIVE SESSION
A. Section 551.071, Texas Government Code - Consultation with City Attorney.
1. Update regarding Shea v. City of Coppell.
2. American Library Association v. United States; No. 02-361 pending before the U. S.
Supreme Court concerning filing of an amicus brief on behalf of local governments.
B. Section 551.072, Texas Government Code - Deliberation regarding Real Property.
1. Land Acquisition west of Denton Tap and south of Bethel Road.
CM REVIEW:
Agenda Request Form - Revised 10/02 Document Name: %executivesession
DATE: December 10, 2002
ITEM #: WS-4
AGENDA REQUEST FORM
WORK SESSION
A. Discussion regarding Fee Resolution amending Ambulance Rates.
B. Discussion regarding Council Goals.
C. Discussion of Agenda Items.
CM REVIEW:
Agenda Request Form - Revised 10/02 Document Name: %worksession
DEPT: City Manager
DATE: December 10, 2002
ITEM #: 7
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of a proclamation naming the month of December as COPPELL ISD
EDUCATION FOUNDATION MONTH, and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: !Education
PROCLAMATION
WHEREAS, the Coppell ISD Education Foundation believes that all parents and
community members can participate with the school district to enrich public education; and
WHEREAS, the Foundation seeks to encourage all students to work to their highest
potential by providing opportunities for unique educational experiences; and
WHEREAS, the Foundation encourages Coppell ISD teachers to implement innovative
instructional strategies by funding original programs and projects; and
WHEREAS, the Foundation believes in recognizing staff members for exemplary
teaching; and
WHEREAS, the Foundation is resolved, through the administration of its gifts, to
support education in Coppell ISD.
NOW, THEREFORE, I, Candy Sheehan, Mayor of the City of Coppell, do commend
the directors of the Coppell Independent School District Education Foundation, and proclaim the
month of December as
"COPPELL ISD EDUCATION FOUNDATION MONTH"
and call upon all citizens to join me in recognizing the valuable work of the Education
Foundation and to work with them to support the staff and students of Coppell public schools.
IN WITNESS THEREOF, I have set my hand and caused the seal of the City of
Coppell to be affixed this ______day of December 2002.
________________________
Candy Sheehan, Mayor
ATTEST:
____________________________
Libby Ball, City Secretary
DEPT: City Secretary
DATE: December 10, 2002
ITEM #: 8
AGENDA REQUEST FORM
ITEM CAPTION:
Report by Library Board.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: %boardreport
DATE: December 10, 2002
ITEM #: 9
AGENDA REQUEST FORM
CITIZENS' APPEARANCES
ORDINANCE NO. 2001-964
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, ESTABLISHING RULES, TIMES AND
PROCEDURES FOR CONDUCTING CITY COUNCIL MEETINGS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, THE
FOLLOWING ARE HEREBY ADOPTED AS THE RULES, TIMES AND PROCEDURES FOR
CONDUCTING COUNCIL MEETINGS OF THE CITY COUNCIL OF THE CITY OF COPPELL,
TEXAS:
The City of Coppell Code of Ordinances, Article 1-10 "Rules, Times and Procedures for Conducting City
Council Meetings," be, and the same is hereby, amended to read as follows:
"ARTICLE 1-10
RULES, TIMES AND PROCEDURES FOR CONDUCTING
CITY COUNCIL MEETINGS
". . .
1-10-6.2.1 CITIZENS APPEARANCE
Persons wishing to speak on any matter other than an item scheduled for a public hearing on the agenda, must sign
a register and list their residence address, provided by the City Secretary on a table outside the Council Chambers,
and such persons may be heard only at the "Citizens Appearance" portion of a regular meeting or special meeting.
Each speaker must state his or her name and address of residence. Presentations by individuals during the
"Citizens Appearance" shall be limited to two (2) minutes each. An individual speaker's time may be extended for
an additional two (2) minutes with the approval of a majority of the Council members present. There shall be a
cumulative limit of twenty (20) minutes allotted of any regular or special Council meeting. Those persons who
signed up to speak at the "Citizens Appearance" shall be called upon in the order that they have signed the
provided register. No personal attacks by any speaker shall be made against any member of the Council, Mayor,
individual, group or corporation (Charter Article 3, Section 3.12).
Agenda Request Form - Revised 09/02 Document Name: %necessaryactionwork
DEPT: City Secretary
DATE: December 10, 2002
ITEM #: 10/A
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of minutes: November 12, 2002.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: %minutes
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MINUTES OF NOVEMBER 12, 2002
The City Council of the City of Coppell met in Regular Called Session on
Tuesday, November 12, 2002, at 5:30 p.m. in the City Council Chambers of
Town Center, 255 Parkway Boulevard, Coppell, Texas. The following members
were present:
Candy Sheehan, Mayor
Doug Stover, Mayor Pro Tem (late arrival)
Tim Brancheau, Councilmember
Jayne Peters, Councilmember
Diana Raines, Councilmember
Marsha Tunnell, Councilmember
Dave Herring, Councilmember
Councilmember York was absent from the meeting. Also present were City
Manager Jim Witt, City Secretary Libby Ball and City Attorney Robert Hager.
REGULAR SESSION (Open to the Public)
1. Call to order.
Mayor Sheehan called the meeting to order, determined that a quorum was
present and convened into Executive Session.
EXECUTIVE SESSION (Closed to the Public)
2. Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation
with City Attorney.
1. Shea v. City of Coppell.
B. Section 551.072, Texas Government Code - Deliberation
regarding Real Property.
1. Discussion regarding Land Acquisition west of
Coppell Road and south of Bethel Road.
Mayor Sheehan convened into Executive Session at 5:45 p.m. as allowed under
the above-stated article. Mayor Sheehan adjourned the Executive Session at
5:59 p.m. and opened the Work Session.
Mayor Pro Tem Stover arrived during Executive Session.
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WORK SESSION (Open to the Public)
3. Convene Work Session
A. Discussion regarding Practice and Game Fields.
B. Review City Council Goals.
C. Review of Fee Resolution.
D. Discussion of Agenda Items.
A. City Manager Jim Witt briefed Council on the issues of the Practice
and Game Fields. Brad Reid, Interim Director of Parks and
Recreation, discussed 1) who could play on fields; 2) reservations;
3) superintendent; 4) game field designation (staff would like Park
Board to make designation instead of Sports Council; 5)
designating closed fields and 6) enforcement of game field status.
Members of the Parks and Recreation Board were present. This
item will be brought back to Council in January for further
discussion.
B. The review of Council Goals was postponed until December.
C. City Manager Jim Witt briefed Council on the proposed fee
changes. Discussion followed regarding water heater inspections,
ambulance runs and recreation fees. The portion regarding
ambulance runs was pulled so Mayor Pro Tem Stover could do
some research. The portion regarding recreation fees is to be
considered separate from the remainder of the resolution.
REGULAR SESSION (Open to the Public)
4. Invocation.
Pastor Rod Collver, First Assembly of God Church, led those present in
the Invocation.
5. Pledge of Allegiance.
Mayor Sheehan led those present in the Pledge of Allegiance.
6. Presentation of a donation or gift by Kathleen Matsumura,
Chair of the Women’s Charity Organization 2003, to the City of
Coppell for the benefit of the Community Garden.
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Kathleen Matsumura, Chair of the Women's Charity Organization,
presented a check to Amanda Vanhoozier for the Community Garden.
7. Report by Parks and Recreation Board.
A. Review CRDC Project Development Plan for 2002-2003.
A. Victor Burke, Chair of the Parks and Recreation Board, made the
Board's semi-annual report focusing on the Coppell Recreation
Development Corporation's Project Development Plan for 2002-03.
8. Citizen's Appearances.
There was no one signed up to speak under this item.
CONSENT AGENDA
9. Consider approval of the following consent agenda items:
A. Consider approval of minutes: October 22, 2002.
B. Consider approval of an ordinance amending Article 8-3
Parking, Section 8-3-1(A) of the Code of Ordinances for
the City of Coppell to prohibit parking, stopping or
standing at all times on the north and south sides of
Wynnpage Drive from its point of intersection with
Denton Tap Road on the north curb line westward for a
distance of 204.80 feet and on the south curb line
westward for a distance of 208.89 feet; and authorizing
the Mayor to sign.
C. Consider approval of awarding Bid/Contract #Q-0902-03
to Tiseo Paving Company in the amount of $802,394.92
for the construction of Ruby Road as provided for in CIP
funds; and authorizing the City Manager to sign.
D. Consider approval of the proposed Project Development
Plan for 2002-2003, for the Coppell Recreation
Development Corporation.
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Land Use and Development
E. Consider approval of an Ordinance for Case No. PD-194R,
AmberPoint Business Park, zoning change from PD-194-LI
(Planned Development-194-Light Industrial) to PD-194R-
LI (Planned Development-194 Revised, Light Industrial) to
attach a Detail Site Plan to allow the construction of a
228,250 square-foot office/warehouse with future
expansion of 161,750-square feet, on approximately 18
acres of property located at the southwest corner of
Sandy Lake Road and Northpoint Drive, and authorizing
the Mayor to sign.
F. Consider approval of an ordinance abandoning a one-foot
wide strip of an alley easement as dedicated by the Pecan
Valley Subdivision, with the retention of the underlying
area as a utility easement; and authorizing the Mayor to
sign.
Resolutions
G. Consider approval of a Resolution amending Resolution
#010996.3, as heretofore amended, with regard to fire
prevention fees, animal services fees, zoning fees,
building fees, emergency ambulance service fees,
recreational fees, special event fees, and engineering fees,
and authorizing the Mayor to sign.
Item G was pulled to be considered separately.
Items A-F:
Action:
Councilmember Tunnell moved to approve Consent Agenda Items A, B
carrying Ordinance No. 2002-1019, C, D, E carrying Ordinance No.
91500-A-341 and F carrying Ordinance No. 2002-1020. Councilmember
Peters seconded the motion; the motion carried 6-0 with Mayor Pro Tem
Stover and Councilmembers Brancheau, Peters, Raines, Tunnell and
Herring voting in favor of the motion.
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Item G:
Presentation:
Mayor Sheehan advised that the portion regarding ambulance fees would
be pulled until December 10, 2002.
Mayor Pro Tem Stover indicated he would not vote in favor of the
recreational fees as he did not wish to impose higher fees on the citizens
and he was comfortable with the city carrying some of the costs.
Action:
Councilmember Tunnell moved to approve Consent Agenda Item G
carrying Resolution No. 2002-1112.1 regarding fire prevention fees,
animal services fees, zoning fees, building fees, special events fees and
engineering fees and to table the ambulance service fees until the
December 10, 2002 meeting. Councilmember Peters seconded the
motion; the motion carried 6-0 with Mayor Pro Tem Stover and
Councilmembers Brancheau, Peters, Raines, Tunnell and Herring voting
in favor of the motion.
Councilmember Tunnell moved to approve Resolution No. 2002-1112.2
regarding recreational fees. Councilmember Raines seconded the
motion; the motion carried 5-1 with Councilmembers Brancheau, Peters,
Raines, Tunnell and Herring voting in favor of the motion and Mayor Pro
Tem Stover voting against the motion.
10. PUBLIC HEARING:
Consider approval of the designation of a reinvestment zone
pursuant to Section 312.201 of the Property Redevelopment
and Tax Abatement Act. The property to be considered for
Reinvestment Zone designation is that property owned by
Texas Dugan Limited Partnership; and Uline, Inc., described as
Duke-Freeport Addition, Block A, Lot 5 (11.835 acres) and
located along the west side of Freeport Parkway and north of
Bethel Road, Coppell, Texas.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to Council regarding Items 10, 11, 12 and 13.
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Public Hearing:
Mayor Sheehan opened the Public Hearing and advised that no one had
signed up to speak on this proposal.
Action:
Councilmember Tunnell moved to close the Public Hearing and approve:
Item 11:
Ordinance No. 2002-1021 designating the Texas Dugan Limited
Partnership and Uline, Inc. Reinvestment Zone No. 39, and authorizing
the Mayor to sign;
Item 12:
Resolution No. 2002-1112.3 approving a Tax Abatement Agreement
between the City of Coppell and Texas Dugan Limited Partnership and
Uline, Inc., and authorizing the Mayor to sign; and
Item 13:
An Economic Development Incentive Agreement between the City of
Coppell and Uline, Inc., and authorizing the Mayor to sign.
Councilmember Peters seconded the motion; the motion carried 6-0 with
Mayor Pro Tem Stover and Councilmembers Brancheau, Peters, Raines,
Tunnell and Herring voting in favor of the motion.
11. Consider approval of an Ordinance designating the Texas
Dugan Limited Partnership and Uline, Inc. Reinvestment Zone
No. 39, and authorizing the Mayor to sign.
This item was considered under Item 10. See Item 10 for minutes.
12. Consider approval of a Resolution approving a Tax Abatement
Agreement between the City of Coppell and Texas Dugan
Limited Partnership and Uline, Inc., and authorizing the Mayor
to sign.
This item was considered under Item 10. See Item 10 for minutes.
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13. Consider approval of an Economic Development Incentive
Agreement between the City of Coppell and Uline, Inc., and
authorizing the Mayor to sign.
This item was considered under Item 10. See Item 10 for minutes.
14. PUBLIC HEARING:
Consider approval of the designation of a reinvestment zone
pursuant to Section 312.201 of the Property Redevelopment
and Tax Abatement Act. The property to be considered for
Reinvestment Zone designation is that property owned by
Texas Dugan Limited Partnership; and The Container Store,
Inc., described as Duke-Freeport Addition, a portion of Block A,
Lot 1 (52.566 acres) and located at the southeast corner of
Freeport Parkway and Ruby Road, Coppell, Texas.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to Council regarding Items 14 and 15.
Public Hearing:
Mayor Sheehan opened the Public Hearing and advised that no one had
signed up to speak on this proposal.
Action:
Councilmember Tunnell moved to close the Public Hearing and approve
Ordinance No. 2002-1022 designating the Texas Dugan Limited
Partnership and The Container Store, Inc. as Reinvestment Zone No. 40,
and authorizing the Mayor to sign. Councilmember Raines seconded the
motion; the motion carried 6-0 with Mayor Pro Tem Stover and
Councilmembers Brancheau, Peters, Raines, Tunnell and Herring voting
in favor of the motion.
15. Consider approval of an Ordinance designating the Texas
Dugan Limited Partnership and The Container Store, Inc. as
Reinvestment Zone No. 40, and authorizing the Mayor to sign.
This item was considered under Item 14. See Item 14 for minutes.
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16. PUBLIC HEARING:
Consider approval of Case No. S-1174R, Deliman’s Grille,
zoning change request from PD-133-HC (Planned Development-
133-Highway Commercial) to PD-133R4-HC-S.U.P-1174R
(Planned Development-133R4-Highway Commercial, Special
Use Permit-1174R), to amend various development standards
of the Planned Development and to allow the construction of
an approximate 3,649 square-foot restaurant with a drive-
through pick-up window and private club, to be located along
the west side of Denton Tap Road, approximately 204 feet
north of Natches Trace.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to the Council.
Robert Hager, City Attorney, advised this case would require a super
majority vote of council because of having more than 20% of the adjacent
property owners opposing this item. Mr. Hager advised that number
would be 5 affirmative votes of council due to the fact that
Councilmember York had filed with the City of Secretary an Affidavit of
Recusal.
Bill Dahlstrom, representing the Applicant, made a presentation to the
Council.
Tony Wagner, Architect, answered questions from Council.
Jay Khorrami, Applicant, addressed the Council.
Ken Griffin, Director of Engineering and Public Works, addressed
questions concerning traffic and traffic patterns.
Public Hearing:
Mayor Sheehan opened the Public Hearing and asked for those persons
wishing to speak in favor of this proposal: 1) Ken Levin, 438
Cooperstown Trail and 2) Paul Margiotta, 315 Timber Ridge spoke in
favor of the Proposal.
Mayor Sheehan then asked for those persons wishing to speak against
this proposal: 1) Brian Francis, 123 Natches Trail; 2) Steven Swander,
505 Main Street, Fort Worth; 3) David Hildebrand, 744 Madison Street;
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4) Kris Howerton, 115 Natches Trace; 5) Jim Hancock, 119 Natches
Trace; 6) Steve Carr, 110 Natches Trace; 7) Irwin Edelman, 706 Madison;
8) Charles Sonsteby, 607 Canemount Lane and 9) Richard Dugan, 601
Waverly Lane spoke against the proposal.
Mayor Sheehan stated there had been a call for an Executive Session.
EXECUTIVE SESSION (Closed to the Public)
Convene Executive Session
A. Section 551.071, Texas Government Code - Consultation
with City Attorney.
Mayor Sheehan convened into Executive Session at 8.29 p.m. as allowed under
the above-stated article. Mayor Sheehan adjourned the Executive Session at
8:59 p.m. and reconvened the Regular Session.
REGULAR SESSION (Open to the Public)
Continuing with Item 16:
Action:
Mayor Pro Tem Stover moved to close the Public Hearing.
Councilmember Herring seconded the motion; the motion carried 6-0
with Mayor Pro Tem Stover and Councilmembers Brancheau, Peters,
Raines, Tunnell and Herring voting in favor of the motion.
Councilmember Tunnell moved to approve Case No. S-1174R, Deliman’s
Grille, zoning change request from PD-133-HC (Planned Development-
133-Highway Commercial) to PD-133R4-HC-S.U.P-1174R (Planned
Development-133R4-Highway Commercial, Special Use Permit-1174R), to
amend various development standards of the Planned Development and
to allow the construction of an approximate 3,649 square-foot restaurant
with a drive-through pick-up window and private club, to be located
along the west side of Denton Tap Road, approximately 204 feet north of
Natches Trace; subject to the following conditions:
1) Hours of operation be from 6 a.m. to 10 p.m. seven days per week;
2) Development of the property shall be in accordance with the site
plan, floor plan, landscape plan, and elevations submitted with
this application; and
CM111202
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3) A notation be made that the drive-through will not include any
speaker or microphone.
Councilmember Brancheau seconded the motion; the motion carried 5-1
with Councilmembers Brancheau, Peters, Raines, Tunnell and Herring
voting in favor of the motion and Mayor Pro Tem Stover voting against
the motion.
17. Consider approval of the Magnolia Restaurant Addition, Lot 1,
Block A, Minor Plat, to allow the construction of an
approximate 3,649 square-foot restaurant with private club, to
be located along the west side of Denton Tap Road,
approximately 204 feet north of Natches Trace.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to the Council.
Action:
Councilmember Tunnell moved to approve the Magnolia Restaurant
Addition, Lot 1, Block A, Minor Plat, to allow the construction of an
approximate 3,649 square-foot restaurant with private club, to be located
along the west side of Denton Tap Road, approximately 204 feet north of
Natches Trace. Councilmember Herring seconded the motion; the
motion carried 5-1 with Councilmembers Brancheau, Peters, Raines,
Tunnell and Herring voting in favor of the motion and Mayor Pro Tem
Stover voting against the motion.
A short recess was taken at this time.
18. Consider approval of the Park West Commerce Center, Lot 4,
Block 7, Site Plan Amendment, to allow an exterior dust
collector within an approximate 3,600 square-foot screening
enclosure on 9.4215 acres of property located at 425 Airline
Drive.
CM111202
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Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to the Council.
Action:
Councilmember Peters moved to approve the Park West Commerce
Center, Lot 4, Block 7, Site Plan Amendment, to allow an exterior dust
collector within an approximate 3,600 square-foot screening enclosure
on 9.4215 acres of property located at 425 Airline Drive; subject to the
following condition:
1) The brick used in the screening wall emulate the wall color surface
of the existing building.
Councilmember Raines seconded the motion; the motion carried 6-0 with
Mayor Pro Tem Stover and Councilmembers Brancheau, Peters, Raines,
Tunnell and Herring voting in favor of the motion.
19. Consider approval of the Denton Tap Office Plaza (ReMax), Site
Plan Amendment, to allow a 2,383 square-foot addition to the
existing 13,289 square-foot office building on 1.383 acres of
property located at 500 S. Denton Tap Road.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to Council.
Don Featherstone, Applicant, addressed questions regarding the sign.
Action:
Councilmember Brancheau moved to approve the Denton Tap Office
Plaza (ReMax), Site Plan Amendment, to allow a 2,383 square-foot
addition to the existing 13,289 square-foot office building on 1.383 acres
of property located at 500 S. Denton Tap Road; subject to the following
conditions:
1) Approval of a plat prior to the issuance of a Building Permit;
2) Tree removal permit being obtained; and
CM111202
Page 12 of 16
3) Consideration should be given to bringing the existing monument
sign into compliance with current sign regulations.
Councilmember Peters seconded the motion; the motion carried 5-1 with
Councilmembers Brancheau, Peters, Raines, Tunnell and Herring voting
in favor of the motion and Mayor Pro Tem Stover voting against the
motion.
20. Consider approval of the Wynnpage Plaza, Lot 1, Block B, Site
Plan, to allow the development of an approximate 4,900
square-foot office building on .86 of an acre of property located
at the northwest corner of Wynnpage Drive and Denton Tap
Road.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to the Council.
Mark Wainscott, representing Applicant, answered questions from
Council.
Action:
Councilmember Tunnell moved to approve the Wynnpage Plaza, Lot 1,
Block B, Site Plan, to allow the development of an approximate 4,900
square-foot office building on .86 of an acre of property located at the
northwest corner of Wynnpage Drive and Denton Tap Road; subject to
the following conditions:
1) The applicant revising the design of the elevation facing Denton
Tap Road and enhancing the elevations by providing cast stone
accent trim at the windows and by providing an entry (or false
entry) similar to that on the west elevations, which includes
variation to the roofline (see attached revised sketch of the east
elevation as submitted by the applicant during the Commission
meeting on October 17th);
2) Provision of written approval of TXU, allowing pavement to be
constructed over the existing 50' easement;
3) The coordination of the wording on the monument sign with the
sign located to the south. If the monument serving the properties
to the south remains as "Wynnpage Plaza South," the proposed
sign on Lot 1, Block B will be designed to match, as it was
CM111202
Page 13 of 16
originally presented to staff. If the wording on the sign to the
south takes on an individual company's name, the monument sign
on Lot 1, Block B may also; and
4) Compliance with the Zoning Ordinance that utility boxes will be
screened from public view.
Councilmember Herring seconded the motion; the motion carried 6-0
with Mayor Pro Tem Stover and Councilmembers Brancheau, Peters,
Raines, Tunnell, Herring voting in favor of the motion.
21. Consider approval of the Wynnpage Plaza, Lots 1-3, Block B,
Preliminary Plat, to allow the development of four office
buildings on 3.09 acres of property located at the northwest
corner of Wynnpage Drive and Denton Tap Road.
Presentation:
Gary Sieb, Director of Planning and Economic Development, made a
presentation to the Council regarding Items 21 and 22.
Action:
Councilmember Tunnell moved to approve:
Item 21:
Wynnpage Plaza, Lots 1-3, Block B, Preliminary Plat, to allow the
development of four office buildings on 3.09 acres of property located at
the northwest corner of Wynnpage Drive and Denton Tap Road;
and
Item 22:
Wynnpage Plaza, Lot 1, Block B, Final Plat, to allow the development of
an approximate 4,900 square-foot office building on .86 of an acre of
property located at the northwest corner of Wynnpage Drive and Denton
Tap Road with the following conditions:
1) Provision of a place for the Volume & Page of the Separate
Instrument to be added to the plat in the location of the off-site fire
lane and mutual access easement.
CM111202
Page 14 of 16
2) Coordination of utility easements with the Utility Plan.
Councilmember Brancheau seconded the motion; the motion carried 6-0
with Mayor Pro Tem Stover and Councilmembers Brancheau, Peters,
Raines, Tunnell and Herring voting in favor of the motion.
22. Consider approval of the Wynnpage Plaza, Lot 1, Block B, Final
Plat, to allow the development of an approximate 4,900 square-
foot office building on .86 of an acre of property located at the
northwest corner of Wynnpage Drive and Denton Tap Road.
This item was considered under Item 21. See Item 21 for minutes.
23. Consider award of Bid No. Q-0902-04 to A&A Landscape &
Irrigation, Inc., for the installation of landscape and irrigation
of Sandy Lake Road medians and right of way, in an amount
not to exceed $614,046.36, and authorizing the City Manager
to sign.
Presentation:
Brad Reid, Interim Director of Parks and Recreation, made a
presentation to the Council.
Action:
Councilmember Tunnell moved to award Bid No. Q-0902-04 for the
installation of landscape and irrigation of Sandy Lake Road medians and
right of way, in an amount not to exceed $614,046.36, and authorizing
the City Manager to sign. Councilmember Raines seconded the motion;
the motion carried 6-0 with Mayor Pro Tem Stover and Councilmembers
Brancheau, Peters, Raines, Tunnell and Herring voting in favor of the
motion.
24. Consider Award of Bid No. Q-0902-02 for the purchase of trees
for the landscaping & beautification of the medians and right
of ways of Sandy Lake Road, in the amount not to exceed
$65,166.00, and authorizing the City Manager to sign.
CM111202
Page 15 of 16
Presentation:
Brad Reid, Interim Director of Parks and Recreation, made a
presentation to the Council.
Action:
Councilmember Tunnell moved to approve the Award of Bid No.
Q-0902-02 for the purchase of trees for the landscaping & beautification
of the medians and right of ways of Sandy Lake Road, in the amount not
to exceed $65,166.00, and authorizing the City Manager to sign.
Councilmember Peters seconded the motion; the motion carried 6-0 with
Mayor Pro Tem Stover and Councilmembers Brancheau, Peters, Raines,
Tunnell and Herring voting in favor of the motion.
25. PUBLIC HEARING:
Consider approval of an Ordinance authorizing participation of
City Employees in the Texas Municipal Retirement System,
twenty (20) year service retirement annuity pursuant to
Section 854.202(g) of Title 8, Texas Government Code, as
amended; and authorizing the Mayor to sign.
Presentation:
Jim Witt, City Manager, made a presentation to the Council.
Public Hearing:
Mayor Sheehan opened the Public Hearing and advised that one person
signed up in favor of the item and had left the meeting.
Action:
Councilmember Tunnell moved to approve Ordinance No. 2002-1023
authorizing participation of City Employees in the Texas Municipal
Retirement System, twenty (20) year service retirement annuity pursuant
to Section 854.202(g) of Title 8, Texas Government Code, as amended;
and authorizing the Mayor to sign. Councilmember Brancheau seconded
the motion; the motion carried 6-0 with Mayor Pro Tem Stover and
Councilmembers Brancheau, Peters, Raines, Tunnell and Herring voting
in favor of the motion.
CM111202
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26. Necessary action resulting from Work Session.
There was no action necessary under this item.
27. Mayor and Council Reports.
A. Report by Mayor Sheehan regarding Dallas Regional
Mobility Coalition.
B. Report by Mayor Sheehan regarding 121 Project.
C. Report by Mayor Sheehan regarding meeting with Senator
Shapiro.
D. Report by Mayor Sheehan regarding Coppell Community
Gardens.
A. Mayor Sheehan announced that the city will continue to monitor
all issues relating to the Dallas Regional Mobility Coalition.
B. Mayor Sheehan announced that she and Ken Griffin attended a
meeting last week on the 121 Project and the City of Coppell is
having to request more funding from the Regional Transportation
Council, due to issues in The Colony.
C. Mayor Sheehan announced that she and Jim Witt had met with
Senator Shapiro in Coppell. Senator Shapiro stated that she does
not think there will be any major legislation changes for funding on
transportation or Robin Hood.
D. Mayor Sheehan announced that Coppell Community Gardens was
featured in Texas Gardens.
28. Necessary Action Resulting from Executive Session.
There was no action necessary on this item.
There being no further business to come before the City Council, the meeting
was adjourned.
____________________________________
Candy Sheehan, Mayor
ATTEST:
______________________________________
Libby Ball, City Secretary
DEPT: City Manager
DATE: December 10, 2002
ITEM #: 10/B
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of Addenda to CISD educational development grants for: Literacy
Support in the amount of $50,391; English as a Second Language in the amount of $39,429; and Elementary
Spanish Teachers in the amount of $10,473 and authorizing the City Manager to sign.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS: Funds for these contracts will come from the ½ cent sales tax allocated to the
CEDC.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: !Addendums
Contract Addendum - Page 1 52181
ADDENDUM
TO GRANT AGREEMENT
BETWEEN
THE CITY OF COPPELL,
COPPELL EDUCATION DEVELOPMENT CORPORATION
AND COPPELL INDEPENDENT SCHOOL DISTRICT
This Addendum is intended to and shall be incorporated as an integral part of the Grant
Agreement for between the City of Coppell ("City"), Coppell Education Development
Corporation (“CEDC”) and the Coppell Independent School District (“CISD”). To the extent of
any conflict or inconsistency between the Agreement and this Addendum, the provisions of this
Addendum shall prevail.
WHEREAS, on or about the 25th day of April, 2002, the CITY executed a grant
agreement ("Agreement") providing an education development grant in the amount of Six
Hundred Ninety-three Thousand Dollars and no cents ($693,000.00), subject to the availability
of funds collected from 379A sales tax, to CISD to fund English as a Second Language Teachers
for eligible CISD campuses; and
WHEREAS, said Agreement was agreed to and executed by the CEDC on or about the
8th day of May, 2002 and by CISD on or about the 28th day of May, 2002; and
WHEREAS, after execution of the Grant and implementation of the program, it has been
determined that the personnel costs have escalated and additional monies are required to fund
said positions; and
WHEREAS, the parties hereto agree to provide for such escalated costs and to provide
an increase in the amount of Thirty-nine Thousand, Four Hundred Twenty-nine Dollars and no
cents ($39,429.00) making the grant a total of Seven Hundred Thirty-two Thousand, Four
Hundred Twenty-nine Dollars and no cents ($732,429.00);
NOW THEREFORE, in consideration of the foregoing, the parties agree as follows:
A. That the Coppell Education Development Corporation Grant Agreement providing
funding for English as a Second Language Teachers is hereby amended as follows:
"3.CITY and CEDC agrees to provide the GRANT in the total amount of
Seven Hundred Thirty-two Thousand, Four Hundred Twenty-nine Dollars and no
cents ($732,429.00) . . . . ."
B. That all other terms and conditions of the Agreement by and between the respective
parties, executed May 28, 2002, are otherwise in full force and effect save and except as
amended.
Contract Addendum - Page 2 52181
EXECUTED this _______ day of _____________________, 2002.
CITY OF COPPELL, TEXAS COPPELL EDUCATION
DEVELOPMENT CORPORATION
By: ______________________________ By:
JIM WITT, CITY MANAGER JERRY COKER, PRESIDENT
255 Parkway Boulevard 255 Parkway Boulevard
P.O. Box 9478 P.O. Box 9478
Coppell, Texas 75019 Coppell, Texas 75019
EXECUTED this ______ day of ________________, 2002.
COPPELL INDEPENDENT SCHOOL
DISTRICT
By: ________________________________
JEFF N. TURNER, Ed.D.
SUPERINTENDENT
Coppell Independent School District
200 S. Denton Road
Coppell, Texas 75019
CEDC’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jerry Coker, President of the Coppell Education Development Corporation, a Texas
nonprofit corporation.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
Contract Addendum - Page 3 52181
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jim Witt, City Manager of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
COPPELL INDEPENDENT SCHOOL DISTRICT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jeff N. Turner, Ed.D., Superintendent of Coppell Independent School District, on
behalf of said district.
Notary Public, State of Texas
My Commission expires:
Contract Addendum - Page 1 52112
ADDENDUM
TO GRANT AGREEMENT
BETWEEN
THE CITY OF COPPELL,
COPPELL EDUCATION DEVELOPMENT CORPORATION
AND COPPELL INDEPENDENT SCHOOL DISTRICT
This Addendum is intended to and shall be incorporated as an integral part of the Grant
Agreement for between the City of Coppell ("City"), Coppell Education Development
Corporation (“CEDC”) and the Coppell Independent School District (“CISD”). To the extent of
any conflict or inconsistency between the Agreement and this Addendum, the provisions of this
Addendum shall prevail.
WHEREAS, on or about the 25th day of April, 2002, the CITY executed a grant
agreement ("Agreement") providing an education development grant in the amount of Three
Hundred Ninety-six Thousand Dollars and no cents ($396,000.00), subject to the availability of
funds collected from 379A sales tax, to CISD to fund nine (9) Literacy Support Teachers for nine
(9) CISD elementary campuses; and
WHEREAS, said Agreement was agreed to and executed by the CEDC on or about the
8th day of May, 2002 and by CISD on or about the 28th day of May, 2002; and
WHEREAS, after execution of the Grant and implementation of the program, it has been
determined that the personnel costs have escalated and additional monies are required to fund
said positions for the literacy programs; and
WHEREAS, the parties hereto agree to provide for such escalated costs and to provide
an increase in the amount of Fifty Thousand, Three Hundred Ninety-one and no cents
($50,391.00) making the grant a total of Four Hundred Forty-six Thousand, Three Hundred
Ninety-one Dollars and no cents ($446,391.00);
NOW THEREFORE, in consideration of the foregoing, the parties agree as follows:
A. That the Coppell Education Development Corporation Grant Agreement providing
funding for Literacy Support Teachers is hereby amended as follows:
"3.CITY and CEDC agrees to provide the GRANT in the total amount of
Four Hundred Forty-six Thousand, Three Hundred Ninety-one Dollars and no
cents ($446,391.00) . . . . ."
B. That all other terms and conditions of the Agreement by and between the respective
parties, executed May 28, 2002, are otherwise in full force and effect save and except as
amended.
Contract Addendum - Page 2 52112
EXECUTED this _______ day of _____________________, 2002.
CITY OF COPPELL, TEXAS COPPELL EDUCATION
DEVELOPMENT CORPORATION
By: ______________________________ By:
JIM WITT, CITY MANAGER JERRY COKER, PRESIDENT
255 Parkway Boulevard 255 Parkway Boulevard
P.O. Box 9478 P.O. Box 9478
Coppell, Texas 75019 Coppell, Texas 75019
EXECUTED this ______ day of ________________, 2002.
COPPELL INDEPENDENT SCHOOL
DISTRICT
By: ________________________________
JEFF N. TURNER, Ed.D.
SUPERINTENDENT
Coppell Independent School District
200 S. Denton Road
Coppell, Texas 75019
CEDC’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jerry Coker, President of the Coppell Education Development Corporation, a Texas
nonprofit corporation.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
Contract Addendum - Page 3 52112
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jim Witt, City Manager of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
COPPELL INDEPENDENT SCHOOL DISTRICT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jeff N. Turner, Ed.D. Superintendent of Coppell Independent School District, on behalf
of said district.
Notary Public, State of Texas
My Commission expires:
Contract Addendum - Page 1 52180
ADDENDUM
TO GRANT AGREEMENT
BETWEEN
THE CITY OF COPPELL,
COPPELL EDUCATION DEVELOPMENT CORPORATION
AND COPPELL INDEPENDENT SCHOOL DISTRICT
This Addendum is intended to and shall be incorporated as an integral part of the Grant
Agreement for between the City of Coppell ("City"), Coppell Education Development
Corporation (“CEDC”) and the Coppell Independent School District (“CISD”). To the extent of
any conflict or inconsistency between the Agreement and this Addendum, the provisions of this
Addendum shall prevail.
WHEREAS, on or about the 25th day of April, 2002, the CITY executed a grant
agreement ("Agreement") providing an education development grant in the amount of One
Hundred Eighty-nine Thousand Dollars and no cents ($189,000.00), subject to the availability of
funds collected from 379A sales tax, to CISD to fund Elementary Spanish Teachers; and
WHEREAS, said Agreement was agreed to and executed by the CEDC on or about the
8th day of May, 2002 and by CISD on or about the 28th day of May, 2002; and
WHEREAS, after execution of the Grant and implementation of the program, it has been
determined that the personnel costs have escalated and additional monies are required to fund
said positions; and
WHEREAS, the parties hereto agree to provide for such escalated costs and to provide
an increase in the amount of Ten Thousand, Four Hundred Seventy-three and no cents
($10,473.00) making the grant a total of One Hundred Ninety-nine Thousand, Four Hundred
Seventy-three Dollars and no cents ($199,473.00);
NOW THEREFORE, in consideration of the foregoing, the parties agree as follows:
A. That the Coppell Education Development Corporation Grant Agreement providing
funding for Elementary Spanish Teachers is hereby amended as follows:
"3.CITY and CEDC agrees to provide the GRANT in the total amount of
One Hundred Ninety-nine Thousand, Four Hundred Seventy-three Dollars and no
cents ($199,473.00) . . . . ."
B. That all other terms and conditions of the Agreement by and between the respective
parties, executed May 28, 2002, are otherwise in full force and effect save and except as
amended.
Contract Addendum - Page 2 52180
EXECUTED this _______ day of _____________________, 2002.
CITY OF COPPELL, TEXAS COPPELL EDUCATION
DEVELOPMENT CORPORATION
By: ______________________________ By:
JIM WITT, CITY MANAGER JERRY COKER, PRESIDENT
255 Parkway Boulevard 255 Parkway Boulevard
P.O. Box 9478 P.O. Box 9478
Coppell, Texas 75019 Coppell, Texas 75019
EXECUTED this ______ day of ________________, 2002.
COPPELL INDEPENDENT SCHOOL
DISTRICT
By: ________________________________
JEFF N. TURNER, Ed.D.
SUPERINTENDENT
Coppell Independent School District
200 S. Denton Road
Coppell, Texas 75019
CEDC’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jerry Coker, President of the Coppell Education Development Corporation, a Texas
nonprofit corporation.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
Contract Addendum - Page 3 52180
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jim Witt, City Manager of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
COPPELL INDEPENDENT SCHOOL DISTRICT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jeff N. Turner, Ed.D., Superintendent of Coppell Independent School District, on
behalf of said district.
Notary Public, State of Texas
My Commission expires:
DEPT: City Manager
DATE: December 10, 2002
ITEM #: 10/C
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of a grant agreement from the Coppell Education Development
Corporation and the City of Coppell to the Coppell Independent School District for digital video equipment in the
amount of $23,500 using funds collected from the 379A sales tax, and authorizing the City Manager to sign.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS: Funds for this grant will come from the ½ cent sales tax allocated to the CEDC.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: !Broadcast
_______________________________________________
COPPELL EDUCATION DEVELOPMENT GRANT
Page 1 47246
STATE OF TEXAS § COPPELL EDUCATION DEVELOPMENT CORPORATION
§
COUNTY OF DALLAS § GRANT AGREEMENT
This Educational Development Grant Agreement (“Agreement”) is made by and between
the City of Coppell, Texas (“CITY”), Coppell Education Development Corporation (“CEDC”)
and the Coppell Independent School District (the “CISD”), acting by and through their
respective authorized officers.
W I T N E S S E T H :
WHEREAS, the CITY is authorized by TEX. LOC. GOV’T CODE § 379A to provide
educational development grants to publicly funded institutions through the CEDC for the
promotion of literacy, foreign language and career technology for a skilled workforce; and
WHEREAS, the CITY seeks to support programs for promoting literacy, foreign
language and career technology for a skilled workforce; and
WHEREAS, the CISD has submitted a grant application No. 2003-T01 to provide
funding for digital video equipment (the PROJECT), needed for the Coppell High School
Broadcast Journalism program so students can produce industry-standard video productions; and
WHEREAS, the CISD has developed the PROJECT in order to meet weekly deadlines
for the campus-wide “KCBY” newscast; and
WHEREAS, the PROJECT will facilitate the migration from S-video cameras to mini
DV; and
WHEREAS, CISD is in need of funding the purchase of: Three digital field cameras;
One digital studio camera with tripod; One DV/S-VHS and two DV recorder decks; and one DV
board and software upgrade, and seeks the assistance of the CEDC for such assistance; and
WHEREAS, the CITY has determined that making an education development grant to
the CISD in accordance with this Agreement will further the objectives of the CITY, will benefit
the CITY and the City’s inhabitants and will promote literacy in the City;
NOW THEREFORE, in consideration of the foregoing, and other valuable
consideration the receipt and sufficiency of which are hereby acknowledged on the terms and
conditions hereinafter set forth, the parties agree as follows:
_______________________________________________
COPPELL EDUCATION DEVELOPMENT GRANT
Page 2 47246
GENERAL PROVISIONS
1. Subject to availability of funds collected from the 379A sales tax, the CITY agrees to
provide the CISD an education development grant (the “GRANT”) in an amount not to exceed
Twenty-three Thousand Five Hundred Dollars and no cents ($23,500.00).
2.CISD agrees to utilize the GRANT to fund the purchase of: Three digital field cameras;
One digital studio camera with tripod; One DV/S-VHS and two DV recorder decks; and one DV
board and software upgrade.
3.CITY agrees to provide the GRANT of Twenty-three Thousand Five Hundred Dollars
and no cents ($23,500.00) funds payable on a quarterly basis with the first payment to be made
on or before January 15, 2003. Funds to be expended in accordance with the budget categories
set forth in the GRANT application.
4. On a quarterly basis beginning no later than April 15, 2003 the CISD shall submit the
receipts for all expenditures for this GRANT to the CEDC. The detailed expenditures shall
include copies of all invoices for the PROJECT.
5. In the event the CISD breaches any of the terms of this AGREEMENT or fails to use
the GRANT for the purposes set forth herein, then the CISD, after expiration of the notice and
cure period described herein, shall be in default of this AGREEMENT. As liquidated damages
in the event of such default, the CISD shall, within thirty (30) days after demand, repay to the
CITY, the GRANT with interest at the rate of eight percent (8%) per annum from the date of
receipt of the GRANT until paid. The parties acknowledge that actual damages in the event of
default would be speculative and difficult to determine. Upon breach by CISD of any
obligations under this AGREEMENT, the CITY shall notify the CISD in writing, who shall
have thirty (30) days from receipt of the notice in which to cure such default. If CISD fails to
cure the default within the time provided herein, or, as such time period may be extended, then
the CITY at its sole option, shall have the right to terminate this AGREEMENT without further
notice to the CISD.
6. The terms and conditions of this AGREEMENT are binding upon the successors and
assigns of all parties hereto. This AGREEMENT may not be assigned without the express
written consent of CITY and CEDC.
7. It is understood and agreed between the parties that CISD, in the use of the GRANT and
in satisfying the conditions of this AGREEMENT, is acting independently, and that the CITY
and/or the CEDC assumes no responsibilities or liabilities to third parties in connection with
these actions. CISD agrees to indemnify and hold harmless the CITY and the CEDC from all
such claims, suits, and causes of action, liabilities and expenses, including reasonable attorney’s
fees, of any nature whatsoever arising out of the CISD’S performance of the conditions under
this AGREEMENT.
_______________________________________________
COPPELL EDUCATION DEVELOPMENT GRANT
Page 3 47246
8. Any notice required or permitted to be delivered hereunder shall be deemed received
when sent by United States mail, postage pre-paid, certified mail, return receipt requested,
addressed to the party at the address set forth opposite the signature of the party.
9. This AGREEMENT shall be governed by the laws of the State of Texas; and venue for
any action concerning this AGREEMENT shall be in the State District Court of Dallas County,
Texas.
10. In the event any one or more of the provisions contained in this AGREEMENT shall for
any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity,
illegality, or unenforceability shall not effect the other provisions, and the AGREEMENT shall
be construed as if such invalid, illegal, or unenforceable provision had never been contained in it.
EXECUTED this _______ day of _____________________, 2002.
CITY OF COPPELL, TEXAS
By: ______________________________________
JIM WITT, CITY MANAGER
255 Parkway Boulevard
P.O. Box 9478
Coppell, Texas 75019
ATTEST:
By: ______________________________________
LIBBY BALL, CITY SECRETARY
EXECUTED this _______ day of _____________________, 2002.
COPPELL EDUCATION DEVELOPMENT CORPORATION
By: ______________________________________
JERRY COKER, PRESIDENT
255 Parkway Boulevard
P.O. Box 9478
Coppell, Texas 75019
_______________________________________________
COPPELL EDUCATION DEVELOPMENT GRANT
Page 4 47246
ATTEST:
By: ______________________________________
SIGNED this ______ day of ________________, 2002.
COPPELL INDEPENDENT SCHOOL DISTRICT
By: ______________________________________
Jeff N. Turner, Ed.D.
SUPERINTENDENT
Coppell Independent School District
200 S. Denton Road
Coppell, Texas 75019
ATTEST:
By: ______________________________________
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Jim Witt, City Manager of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
_______________________________________________
COPPELL EDUCATION DEVELOPMENT GRANT
Page 5 47246
COPPELL EDUCATION DEVELOPMENT CORPORATION
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jerry Coker, President of Coppell Education Development Corporation, on behalf of
said corporation.
Notary Public, State of Texas
My Commission expires:
COPPELL INDEPENDENT SCHOOL DISTRICT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jeff N. Turner, Superintendent of Coppell Independent School District, on behalf of
said district.
Notary Public, State of Texas
My Commission expires:
DEPT: Engineering/Public Works
DATE: December 10, 2002
ITEM #: 10/D
GOAL(S):
EXECUTIVE SUMMARY:
Approval of this item will provide for a safer entrance and exit to the existing parking lots in the area.
Staff recommends approval of the “no parking” ordinance to prohibit parking of vehicles over one and one-half
tons on the north side of Bethel Road from Coppell Road eastward to Mitchell Street.
Staff will be available to answer any questions at the Council meeting.
ITEM CAPTION:
Consider approval of an ordinance amending the Code of Ordinances of the City of Coppell Article 8-3, Sections 6
and 7 Truck Parking to prohibit parking, stopping or standing at all times by vehicles with a rated capacity over
one and one-half tons on the north side of Bethel Road from its point of intersection with Coppell Road eastward
to its point of intersection with Mitchell Street; and authorizing the Mayor to sign.
AGENDA REQUEST FORM
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: #eng1-1AR
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To: Mayor and City Council
From: Teresa Turner, E.I.T., Graduate Engineer
Date: December 10, 2002
RE: Consider approval of an ordinance amending the Code of Ordinances of the
City of Coppell Article 8-3, Sections 6 and 7 to prohibit parking, stopping, or
standing by vehicles over 1.5 tons on the north side of Bethel Road between
Coppell Road and Mitchell Street; and authorizing the Mayor to sign.
Within the past year, staff has received at least two requests for restricting parking in the Old Town
section of Coppell along the north side of Bethel Road. The safety concern is that vehicles,
particularly large trucks, regularly park within the parkway area of Bethel Road thus blocking the
view of vehicles exiting adjacent parking lots. In addition, Bethel Road is only 20 feet wide and any
encroachment into the driving lane could cause a hazardous situation. From a maintenance
standpoint, trucks parked along the edge of the pavement create potholes and rutting which allow
water to stand.
Several city ordinances already exist that address the issues of truck parking, designated truck
routes, and parking on the parkway. However, in the interest of clarifying these restrictions and
making them easier to enforce, specific signage is suggested.
Amending Section 8-3-6 of the Code of Ordinances for the City of Coppell would allow signs to be
posted prohibiting the parking of vehicles over 1.5 tons. Smaller vehicles have access to off-street
parking areas and have not been observed by staff to be regularly parking on the parkway.
Due to the open drainage system on the south side of Bethel Road in this area, trucks are not able to
park on the parkway. Therefore, the recommended limit of the parking restriction is only on the
north side of Bethel Road from Mitchell Street to Coppell Road.
During the review for this requested change, it was noted that Section 8-3-7 (previously Section 8-3-
6B) contained an error that referred to “non-residential” parking. In actuality, it should have referred
to “residential” parking. This change has no bearing on the Bethel Road parking, but only corrects a
prior error.
Staff will be available to answer questions at the Council meeting.
Coppell Rd.
Coppell Rd.CoppellDeliMitchell St.NO PARKING/CoppellAuto CenterBethel Rd.
Bethel Road Looking East
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS
ORDINANCE NO.
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS,
AMENDING THE CODE OF ORDINANCES BY AMENDING CHAPTER
8, SECTION 8-3-6 BY ADDING SUBSECTION (B) TO PROVIDE FOR
SPECIFIC STREETS LOCATED WITHIN NON-RESIDENTIAL AREAS
WHEREIN TRUCK PARKING IS PROHIBITED; BY REPEALING
SECTION 8-3-7 AND REPLACING THE SAME WITH RESTRICTIONS
FOR TRUCK PARKING IN RESIDENTIAL AREAS; PROVIDING A
REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND
PROVIDING FOR AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF COPPELL, TEXAS;
SECTION 1. That the City of Coppell Code of Ordinances, be, and the same is, hereby
amended by amending the Section 8-3-6, by repealing Subsection B and replacing the same with
language to provide for specific streets located within the non-residential areas wherein truck
parking is prohibited, and by repealing Section 8-3-7 and replacing the same with parking
restrictions for residential areas, which shall read as follows:
"Sec. 8-3-6. Truck parking – Non-Residential Areas.
(excess of one and one-half tons)
A.. . . . .
B. A person commits an offense if he stops, parks or stands a vehicle with a
rated capacity over one and one-half tons according to the manufacturer's
classification on the following streets:
1. Bethel Road – north side from its point of intersection with
Coppell Road eastward to its point
of intersection with Mitchell Street
2. Burns Road in its entirety
3. Hammonds Road in its entirety
Sec. 8-3-7. Truck Parking – Residential Area
A person commits an offense if he leaves standing or parked, upon any public
street, alley or other public place within any residential area of the city, an
unattended:
a. Truck-tractor;
b. Road tractor;
c. Semi-trailer;
d. Bus;
e. Trailer;
f. Truck with a rated capacity in excess of one and one-half tons
according to the manufacturer's classifications; or
g. Any other private property."
SECTION 2.That all provisions of the Ordinances of the City of Coppell, Texas, in
conflict with the provisions of this ordinance be, and the same are hereby, repealed, and all other
provisions of the Ordinances of the City not in conflict with the provisions of this ordinance shall
remain in full force and effect.
SECTION 3.That should any word, sentence, paragraph, subdivision, clause, phrase or
section of this ordinance, or of the Code of Ordinances, as amended hereby, be adjudged or held to
be void or unconstitutional, the same shall not affect the validity of the remaining portions of said
ordinance or the Code of Ordinances, as amended hereby, which shall remain in full force and
effect.
SECTION 4.That this ordinance shall take effect immediately from and after its passage
and publication as the law and charter in such cases provide.
DULY PASSED by the City Council of the City of Coppell, Texas, this the _______ day of
___________________, 2002.
APPROVED:
______________________________________
CANDY SHEEHAN, MAYOR
ATTEST:
_______________________________________
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
___________________________________
ROBERT E. HAGER, CITY ATTORNEY
(REH/cdb 11/27/02)
DEPT: Engineering/Public Works
DATE: December 10, 2002
ITEM #: 10/E
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of a variance to the Coppell Code of Ordinances Chapter 13, Appendix C Design Criteria and
Standards, Section II Storm Sewers and Drainage, paragraph B Engineering Design for the construction of Bethel
Road.
GOAL(S):
EXECUTIVE SUMMARY:
Approval of this item will allow the design of West Bethel Road, from the west city limits to Freeport Parkway, to
proceed so that we can get back on schedule to bid the project for construction in late 2003.
Staff recommends approval of the variance to Chapter 13 of the Code of Ordinances and will be available to
answer any questions at the Council meeting.
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: #eng2-1AR
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To: Mayor and City Council
From: Kenneth M. Griffin, P.E., Dir. of Engineering/Public Works
Date: December 10, 2002
RE: Consider approval of a variance to the Coppell Code of Ordinances Chapter 13,
Appendix C Design Criteria and Standards, Section II Storm Sewers and
Drainage, paragraph B Engineering Design for the construction of Bethel Road.
The referenced section of the Subdivision Ordinance states “The Engineering design shall
generally conform to the criteria set forth in the City of Coppell City-Wide Storm Water
Management Study and the City of Dallas Drainage Design Manual.” The Drainage Design
Manual for the City of Dallas states “All drainage systems will be designed to accommodate the
flow from the 100-year frequency storm . . .”. Designing for the 100-year fully developed storm
is a criteria that has been utilized in the City of Coppell since approximately 1990. There are
some drainage systems within the City of Coppell which are not designed on the 100-year storm.
Most notably, the drainage system along MacArthur Blvd. from Deforest Road south to Sandy
Lake Road is designed on a 5-year frequency storm.
Attached to this agenda item is a memo from myself to Jim Witt and Clay Phillips that goes into
great detail about our attempts to design the drainage system in West Bethel Road on a 100-year
design frequency. However, in designing systems for a 100-year frequency it is important to
note where you are discharging the collected water. In the case of West Bethel Road, if you
were to build a system to efficiently convey the 100-year design storm it would discharge water
into the small creek on the east side of Loch Lane then convey the water through the unimproved
portion of Grapevine Creek north of the Coppell Senior Citizens Center. This creek in turn
meanders adjacent to Old Coppell Estates, Big Cedar, Country Estates, Grand Cove, Creekview
Addition, etc. As Council may be aware, there have been several complaints of erosion in
Grapevine Creek adjacent to those subdivisions. To collect all of the water and discharge it into
Grapevine Creek on a 100-year design is not the appropriate design for this drainage system. At
best, that would be an irresponsible design that could create additional drainage problems
downstream.
There have been two drainage studies performed on this drainage basin, the first in 1999 and the
second in 2002. Both studies point to the need for detention on the DFW Airport property. The
airport property comprises 242-acres of the 464-acres of drainage basin that drains to the
tributary on the east side of Loch Lane. This is approximately 52% of the entire drainage basin.
As can be seen by the detailed memo, there have been numerous meetings and conversations
with representatives of DFW Airport; however, in the final analysis, I have been told that DFW
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
Airport at this time will not support detention on their property nor acknowledge the concept or
need for detention.
At this time, I have three options concerning the drainage associated with West Bethel Road:
1. Indefinitely Postpone the project;
2. Build an efficient system that collects the 100-year runoff and discharge it into the
unimproved section of Grapevine Creek. This means seven 10’x5’ box culverts within
Bethel Road discharging into the small tributary on the north side of Bethel Road east of
Loch Lane; or
3. Design a system that will handle the 100-year storm water runoff before the airport property
develops.
It is my opinion that Option 3 is the correct decision in the design of the drainage system.
Option 3 gives us a 100-year ultimate storm drain system until such time as DFW Airport
develops the 242-acres of their property that drains through the City of Coppell.
If they develop irresponsibly and discharge all their water into our system, then our drainage
system will still have the future capacity to convey a 25-year storm. If they do the correct thing
when they develop and design detention to detain the increase in runoff on their property, then
our system will continue to have a 100-year capacity in the future. There are no guarantees on
what the future holds on the development of the airport property or whether or not the airport
will do a responsible development on the property in terms of drainage.
To keep the Bethel Road project moving ahead, my recommendation is that the variance to the
Subdivision Ordinance be approved to allow the construction of a drainage system that conveys
the 100-year runoff as it exists prior to development of the 242-acres of the airport property.
Staff will be available to answer questions at the Council meeting.
Page 1 of 4
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To: Jim Witt, City Manager
Clay Phillips, Deputy City Manager
From: Kenneth M. Griffin, P.E., Dir. of Engineering/Public Works
Date: November 14, 2002
RE: Bethel Road Project ST 99-05
Since 1998, the City of Coppell has been evaluating drainage associated with West Bethel Road. In
1998 the City of Coppell hosted a meeting between the then property owners of the two large tracts
of land on the north side of Bethel Road to discuss the development of their property in regard to
drainage in Bethel Road. Those tracts of land are now referred to as the “Champion” and “Duke-
Weeks” tracts. The drainage basin for this portion of Bethel Road also includes approximately 240
acres of airport property discharging into Bethel Road at Royal Lane. In addition to that, the bulk
postal facility and the Minyards tract also discharge into Bethel Road. In total, there was
approximately 676 acres of land that discharged into Bethel Road near Coppell Road.
Realizing that drainage was going to be the overriding design consideration for the construction of
Bethel Road, a drainage study was commissioned by the City of Coppell called the “Southwest
Coppell Storm Water Management Master Plan”. It was a joint venture between the City of
Coppell, NCH and Coppell Industrial NV. The study was prepared by Halff and Associates. The
study pointed to the fact that detention would be required on the land north of Bethel Road and on
the airport property. The detention on the airport property was crucial because of the short distance
from Royal Lane to Freeport Parkway and the fact that there was no available land in that section for
detention.
In 2001, the City of Coppell entered into a design contract with TranSystems Corporation for the
design of Bethel Road from the west city limits to Freeport Parkway. The design contract was
structured so that there would be additional drainage studies to complement the previous drainage
study. TranSystems’ drainage study also pointed to the fact that detention would be required. By
this time, the property north of Bethel Road had already been developed by “Champion” and “Duke-
Weeks” and in both cases the City of Coppell required detention that would not allow the discharge
of any additional water from the site than what would normally discharge in an undeveloped
condition. Also, the water from the “Champion” and “Duke-Weeks” property was conveyed in an
easterly direction and discharged into Grapevine Creek north of Loch Lane, not directly into Bethel
Road.
The challenge now is to design a drainage system that will convey a 100-year storm and at the
same time not create any downstream erosion problems in Grapevine Creek. TranSystems has
Page 2 of 4
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
provided two drainage studies for the City of Coppell to accommodate the drainage along Bethel
Road. Both studies show that detention will be required on the airport property. The detention on
the airport property is needed to detain the increase in water runoff when the 242-acres of airport
property develops. The last design by TranSystems shows two detention ponds strategically located
on the airport property generally along the west side of Royal Lane.
The design of a drainage system to accommodate the developed runoff along Bethel Road is not an
overwhelming engineering feat. Simply put, to convey the drainage along Bethel Road, it is only a
matter of installing additional box culverts. Preliminary design estimates are that there would need
to be seven 10’x5’ box culverts along Bethel Road to accommodate the 100-year ultimate developed
runoff. However, the real challenge in this design is to balance the conveyance of water with
the potential for downstream erosion in Grapevine Creek. As you may be aware, we have had
erosion along a portion of Big Cedar and Country Estates and there is evidence of erosion in
Hunterwood Park. To effectively collect all the ultimate developed stormwater in a drainage system
in Bethel Road i.e., the construction of seven 10’x5’ box culverts, and convey that water to Coppell
Road and discharge it into Grapevine Creek just north of the Senior Citizens Center would not be the
wisest approach to accommodate the drainage associated with Bethel Road. That approach would
very effectively and rapidly convey a large amount of water to an earthen channel and in effect
create the potential for additional downstream erosion problems.
The goal in this drainage design is to detain the increased runoff difference between the
undeveloped airport land as it exists today and the future developed airport land Detention on
the airport property is a critical component of this design. To that end, I met with representatives of
DFW Airport in July 2002 and presented them a copy of the revised draft drainage report prepared
by TranSystems. That report detailed the necessity for detention on the airport property. I left a
copy of the report for their review and asked them to respond to me concerning the likelihood of a
detention basin on airport property. I was even willing to accept a letter from the airport stating that
if at some point in the future they chose to develop then they would construct detention at that time.
I have a legal opinion from Pete Smith that states that the City of Coppell cannot require the airport
to abide by our subdivision rules and regulations in regard to the development of their property.
Therefore, unless the airport decides to create detention, the City of Coppell cannot require
detention, even on the section of land that lies within the City of Coppell. However, representatives
of DFW Airport stated that they are bound by EPA and other environmental rules and regulations
the same as any municipality. They also have to obtain all permits and approvals prior to
development of their property.
It was my hope based on the meeting, that I would receive correspondence from DFW Airport
stating that they understood the drainage situation and they would be willing to construct detention
on their property at a future date if they decided to develop the 240-acres that drain into the City of
Coppell. After numerous telephone calls, I was told in October 2002 that there would be no letter
forthcoming obligating DFW Airport for any future action.
The situation we find ourselves in today is:
• 1) The airport will not allow us to construct detention on their property;
• 2) The airport will not commit to construct detention in the future; and
Page 3 of 4
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
• 3) It is my professional opinion that it would not be wise to construct an efficient system to
discharge all the future water into Grapevine Creek knowing that there are downstream erosion
problems that exist today.
I contacted our consultant, TranSystems, and asked them to evaluate the drainage system that was
proposed with Bethel Road to determine what level of capacity we would have in the future if no
detention was constructed on the airport property. In essence, what I was asking is: if we build a
system today in anticipation of detention on the airport property in the future and the airport chose
not to construct detention, but instead chose to discharge all of their water into our “undersized”
drainage system what level of capacity would we have in our drainage system? The reply to that
question is that we would have a drainage system capable of conveying about a 25-year fully
developed storm. If the system only conveys approximately a 25-year storm, then any larger event
that we have i.e., 50 or 100-year storm, creates the potential for street flooding along Bethel Road.
The City of Coppell Subdivision Ordinance requires that drainage systems be designed for a 100-
year fully developed storm event. Without a detention basin, the drainage system cannot be
designed for a 100-year storm without discharging a substantial amount of water into an unimproved
section of Grapevine Creek. At this point, I find myself at a standstill on moving ahead with this
project. One the one side if I build an efficient system to convey all the water in the future, I stand a
very strong risk of creating erosion problems in Grapevine Creek. On the other side, if I authorize
the consultant to only design a system that will convey a 25-year storm I run the risk of having street
flooding along Bethel Road in those rare storm events that exceed a 25-year frequency.
It is my recommendation that we design a drainage system capable of conveying a 25-year
ultimate developed storm and work with the airport at some future date when they chose to
develop the property in Coppell to try to obtain some type of detention onsite. It’s important to
note that our system will convey the 100-year storm as long as the airport property remains
undeveloped. Also, if the airport constructs detention in the future, our system will still convey the
100-year storm. The only situation that reduces the capacity of our system would be if the airport
fully developed their property and released all the water without detention. With an undersized
system downstream, if and when the airport decides to develop, they will be in a predicament of how
to convey their water because our system would not be adequate to allow the release of all of their
water. So there is a possibility that they would be forced to have some type of onsite detention just
by virtue of the downstream system being undersized. To construct a system not in conformance
with the Subdivision Rule and Regulations requires a variance from City Council. Therefore, I will
take an agenda item on December 10, 2002 to request a variance.
If you have any questions, please feel free to contact me.
Page 4 of 4
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
Summary of Key Dates:
• February 4, 1999 “Southwest Coppell Storm Water Management Master Plan” by Halff &
Associates.
Sponsored by: The City of Coppell, NCH, & Coppell Industrial NV
• March 22, 1999 Legal opinion from Pete Smith that we cannot require DFW Airport to
install detention.
• April 13, 1999 Memo to Curtis Inglis, DFW Airport, providing summary of meeting
between Halff & Assoc., and Tracy Thompson, Doug Bryan & Mike Pyles
of DFW Airport and requesting clarification of drainage requirements on
airport property.
• May 11, 1999 Summary of reply from Curtis Inglis of DFW. Mr. Inglis spoke with
Kevin Cox and Gary Keane and Mr. Inglis stated that development of
airport property would be accomplished in responsible manner.
• February 13, 2001 Entered into design contract with TranSystems Corporation for Bethel
Road and associated drainage.
• January 18, 2002 Received “Drainage Report Executive Summary” from TranSystems.
Report outlined necessity for detention on DFW Airport property.
• May 30, 2002 Received “Revised Draft Drainage Report for Regional Detention
Analysis / Bethel Road Improvements”.
• July 18, 2002 Met with representatives of DFW Airport and provided copy of
“Revised Draft Drainage Report for Regional Detention Analysis /
Bethel Road Improvements” for their review.
• October 11, 2002 Was informed that representatives of DFW Airport would not commit to
any detention now or in the future.
• October 14, 2002 Requested evaluation of drainage system in Bethel Road if no detention
was provided by DFW Airport when they developed and our system was
constructed today as if there was no increase in runoff from DFW.
• October 25, 2002 Received letter from TranSystems that system would convey
approximately a 25-year storm with ultimate development without
detention.
DEPT: Planning and Economic Development
DATE: December 10, 2002
ITEM #: 10/F
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of a Resolution approving a Tax Abatement Agreement between the City of
Coppell and Texas Dugan Limited Partnership and The Container Store, Inc., and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY: The Public Hearing was held and the Reinvestment Zone designation was approved
at the November 12, 2002 City Council Meeting.
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: $ Container1-1AR
1 51800
RESOLUTION NO. ________________
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, APPROVING THE
TERMS AND CONDITIONS OF A TAX ABATEMENT AGREEMENT BY AND
BETWEEN THE CITY OF COPPELL, TEXAS, TEXAS DUGAN LIMITED
PARTNERSHIP AND THE CONTAINER STORE, INC.; AUTHORIZING ITS
EXECUTION BY THE MAYOR; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Council has been presented a proposed Tax Abatement Agreement by
and between the City of Coppell, Texas, Texas Dugan Limited Partnership and The Container Store,
Inc., a copy of which is attached hereto and incorporated herein by reference; and
WHEREAS, upon full review and consideration of the Agreement, and all matters related
thereto, the City Council is of the opinion and finds that the terms and conditions thereof should be
approved, and that the Mayor should be authorized to execute the Agreement on behalf of the City
of Coppell, Texas;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS, THAT:
SECTION 1.The Agreement attached hereto having been reviewed by the City Council of
the City of Coppell, Texas, and found to be acceptable and in the best interest of the City and its
citizens, be, and the same is hereby, in all things approved, and the Mayor is hereby authorized to
execute the Agreement on behalf of the City of Coppell, Texas.
SECTION 2.The City Council finds that the improvements proposed to be built upon the
Premises described in the Agreement will enhance the economic vitality of the community through
a combination of new capital investment, increased sales tax revenues, and the creation of additional
job opportunities.
SECTION 3.The tax abatement to be granted by the Agreement will not include
inventory, and supplies.
SECTION 4.The improvements proposed for the Premises will accomplish the tax
abatement guidelines of the City of Coppell, Texas.
2 51800
SECTION 5.The City Manager delivered to the presiding officer of the governing body of
each taxing unit in which the property subject to the Agreement is located, a written notice that the
City of Coppell, Texas, intends to enter into the Agreement. The notice given by the City Manager
included a copy of the Agreement approved by this Resolution.
SECTION 6.This Resolution and the Tax Abatement Agreement are hereby approved by
the affirmative vote of the majority of the members of the City Council of the City of Coppell,
Texas, at a regularly scheduled meeting of the City Council.
SECTION 7.This Resolution shall become effective immediately from and after its
passage.
DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell, Texas,
on this the ______ day of ________________, 2002.
CITY OF COPPELL, TEXAS
___________________________________________
CANDY SHEEHAN, MAYOR
ATTEST:
___________________________________________
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
____________________________________
ROBERT E. HAGER, CITY ATTORNEY
(PGS/ttl 12/02/02)
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 1 49968
STATE OF TEXAS §
§ TAX ABATEMENT AGREEMENT
COUNTY OF DALLAS §
This Tax Abatement Agreement (the “Agreement”) is entered into by and among the City of
Coppell, Texas (the “City”), Texas Dugan Limited Partnership (“Owner”), and The Container Store,
Inc. (“Lessee”), acting by and through their authorized representatives.
W I T N E S S E T H:
WHEREAS, the City Council of the City of Coppell, Texas, (the “City”), passed an
Ordinance (the “Ordinance”) establishing Tax Abatement Reinvestment Zone No. 40 (the “Zone”),
for commercial/industrial tax abatement, as authorized by the Property Redevelopment and Tax
Abatement Act, Chapter 312 of the Texas Tax Code, as amended (the “Tax Code”); and
WHEREAS, the City has adopted guidelines for tax abatement (the “Tax Abatement
Guidelines”); and
WHEREAS, the Tax Abatement Guidelines contain appropriate guidelines and criteria
governing tax abatement agreements to be entered into by the City as contemplated by the Tax
Code; and
WHEREAS, the City has adopted a resolution stating that it elects to be eligible to
participate in tax abatement; and
WHEREAS, in order to maintain and enhance the commercial and industrial economic and
employment base of the Coppell area, it is in the best interests of the taxpayers for the City to enter
into this Agreement in accordance with said Ordinance, the Tax Abatement Guidelines and the Tax
Code; and
WHEREAS, Owner owns the real property described in Exhibit “A” attached hereto
(“Land”) and intends to construct certain Improvements (hereinafter defined) on the Land and to
lease the Improvements to the Lessee; and
WHEREAS, Lessee has or intends to either purchase or lease the Improvements; and
WHEREAS, Owner’s and Lessee’s development efforts described herein will create
permanent new jobs in the City; and
WHEREAS, the City Council finds that the contemplated use of the Premises (hereinafter
defined), the contemplated Improvements thereto in the amount set forth in this Agreement, and the
other terms hereof are consistent with encouraging development of the Zone in accordance with the
purposes for its creation and/or in compliance with the Tax Abatement Guidelines, the Ordinance
adopted by the City, the Tax Code and all other applicable laws; and
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 2 49968
WHEREAS, the City Council finds that the Improvements sought are feasible and
practicable and would be of benefit to the Premises to be included in the Zone and to the City after
expiration of this Agreement; and
WHEREAS, a copy of this Agreement has been furnished, in the manner prescribed by the
Tax Code, to the presiding officers of the governing bodies of each of the taxing units in which the
Premises is located; and
WHEREAS, the City desires to enter into an agreement with Owner and the Lessee for the
abatement of taxes pursuant to Chapter 312 of the Tax Code as amended;
NOW, THEREFORE, in consideration of the mutual benefits and promises contained
herein and for good and other valuable consideration, the adequacy and receipt of which is hereby
acknowledged, including the expansion of primary employment, the attraction of major investment
in the Zone, which contributes to the economic development of Coppell and the enhancement of the
tax base in the City, the parties agree as follows:
GENERAL PROVISIONS
1. Owner, is the owner of the Land, which Land is located within the city limits of the
City and within the Zone. Owner intends to construct the Improvements on the Land and to lease
the same to Lessee. The Lessee has or intends to lease or purchase the Improvements from Owner
and locate Tangible Personal Property (hereinafter defined) on the Premises.
2. The Premises are not in an improvement project financed by tax increment bonds.
3. This Agreement is entered into subject to the rights of the holders of outstanding
bonds of the City.
4. The Premises are not owned or leased by any member of the Coppell City Council
or any member of the Coppell Planning and Zoning Commission, or any member of the governing
body of any taxing units joining in or adopting this Agreement.
TAX ABATEMENT AUTHORIZED
5. This Agreement is authorized by the Tax Code and in accordance with the City Tax
Abatement Guidelines, and approved by resolution of the City Council.
6. Subject to the terms and conditions of this Agreement, and provided the Taxable
Value (hereinafter defined) for the Improvements, excluding the Land, is at least Five Million Five
Hundred Thousand Dollars ($5,500,000) as of January 1 of the First Year of Abatement (hereinafter
defined) and as of January 1 of each year thereafter that this Agreement is in effect, the City hereby
grants Owner an abatement of seventy-five percent (75%) of the Taxable Value of the
Improvements for a period of five (5) consecutive years and grants the Lessee an abatement of
seventy-five percent (75%) of the Taxable Value of the Tangible Personal Property for a period of
five (5) consecutive years. The actual percentage of Taxable Value of the Improvements subject to
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 3 49968
abatement for each year this Agreement is in effect will apply only to the portion of the Taxable
Value of the Improvements that exceeds the Base Year Taxable Value. The actual percentage of
Taxable Value of the Tangible Personal Property subject to abatement will only apply to the
Tangible Personal Property added to the Premises after this Agreement is executed.
7. The period of tax abatement herein authorized shall be for a period of five (5) years.
8. During the period of tax abatement herein authorized, Owner and Lessee shall be
subject to all taxation not abated, including but not limited to, sales tax and ad valorem taxation on
land, inventory and supplies.
DEFINITIONS
9. Wherever used in this Agreement, the following terms shall have the meanings
ascribed to them:
A. “Base Year Taxable Value” shall mean the Taxable Value for the Land for
the year in which the Tax Abatement Agreement is executed (2002).
B. “Event of Bankruptcy or Insolvency” shall mean the dissolution or
termination of a party’s existence as a going business, insolvency, appointment of
receiver for any part of a party’s property and such appointment is not terminated within
ninety (90) days after such appointment is initially made, any general assignment for the
benefit of creditors, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against such party, and such proceeding is not dismissed within
ninety (90) days after the filing thereof.
C. “First Year of Abatement” shall mean January 1, 2005, unless otherwise
agreed by the parties.
D. “Force Majeure” shall mean any contingency or cause beyond the reasonable
control of a party including, without limitation, acts of God or the public enemy, war, riot,
civil commotion, insurrection, adverse weather, government or de facto governmental action
(unless caused by acts or omissions of such party), fires, explosions or floods, strikes,
slowdowns or work stoppages.
E. “Improvements” shall mean the contemplated improvements to be
constructed on the Land and as further described herein, and any additions or expansions
constructed on the Land during the term of this Agreement.
F. “Premises” shall collectively mean the Land and Improvements but
excluding Tangible Personal Property.
G. “Taxable Value” means the appraised value as certified by the Appraisal
District as of January 1 of a given year.
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 4 49968
H. “Land” means the real property described in Exhibit A attached hereto and
incorporated herein for all purposes.
I. “Tangible Personal Property” shall mean tangible personal property,
equipment and fixtures owned by or leased by Lessee other than inventory or supplies
added to the Premises subsequent to the execution of this Agreement.
IMPROVEMENTS
10. Owner owns the Land and intends to construct or caused to be constructed thereon a
“warehouse” office building containing approximately 1.1 million square feet of space (and other
ancillary facilities such as reasonably required parking and landscaping more fully described in the
submittals filed by Owner with the City from time to time in order to obtain a building permit)
(“Improvements”). Lessee intends to lease or purchase, and occupy the Improvements and locate
Tangible Personal Property on the Premises. Nothing in this Agreement shall obligate Owner to
construct the Improvements on the Land, but said action is a condition precedent to Owner’s tax
abatement pursuant to this Agreement. Nothing in this Agreement shall obligate Lessee to occupy
the Improvements and locate Tangible Personal Property on the Premises but said actions are a
condition precedent to Lessee’s tax abatement pursuant to this Agreement.
CONSTRUCTION OF IMPROVEMENTS
11. As a condition precedent to the initiation of Owner’s tax abatement pursuant to this
Agreement, Owner will diligently and faithfully, in good and workmanlike manner, pursue the
completion of the contemplated Improvements on or before December 31, 2004, as good and
valuable consideration for this Agreement, and all construction of the Improvements will be in
accordance with all applicable state and local laws, codes, and regulations, (or valid waiver thereof);
provided, that Owner shall have such additional time to complete and maintain the Improvements as
may be required in the event of “Force Majeure,” if Owner is diligently and faithfully pursuing
completion of the Improvements.
12. Owner and Lessee agree to maintain the Improvements during the term of this
Agreement in accordance with all applicable state and local laws, codes, and regulations, and in
accordance with the lease between Owner and Lessee. Owner and Lessee agree that the
Improvements shall be used only as a “warehouse” and office building and for storage, light
assembly, sales and distribution for a period of five (5) years commencing on the date a certificate
of occupancy is issued for the Lessee’s occupancy of the Improvements.
13. The City, its agents and employees shall have the right of access to the Premises
during construction to inspect the Improvements at reasonable times and with reasonable notice to
Owner and Lessee, and in accordance with Owner’s and Lessee’s, visitor access and security
policies, in order to insure that the construction of the Improvements are in accordance with this
Agreement and all applicable state and local laws and regulations (or valid waiver thereof).
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 5 49968
GENERAL REQUIREMENTS
14. Construction plans for the Improvements constructed on the Land will be filed with
the City, which shall be deemed to be incorporated by reference herein and made a part hereof for
all purposes.
15. After completion of the Improvements, Owner shall certify in writing to the City the
construction cost of the Improvements. Owner and Lessee shall each annually certify to the City
that it is in compliance with each term of the Agreement.
16. The Land and the Improvements constructed thereon at all times shall be used in the
manner (i) that is consistent with the City’s Comprehensive Zoning Ordinance, as amended, and (ii)
that, during the period taxes are abated hereunder, is consistent with the general purposes of
encouraging development or redevelopment within the Zone.
17. Owner agrees to provide to the Lessee and tenants of the Improvements, the benefit
of the abatement for the Improvements granted herein. Owner shall, upon written request, provide
the City with satisfactory evidence that the benefits of the abatement for the Improvements have
been provided to the Lessee and/or the tenants of the Improvements.
18. Owner agrees to initially lease at least 640,000 square feet of space in the
Improvements to Lessee for a period of at least five (5) consecutive years beginning no later than
the First Year of Abatement; and to lease at least an additional 120,000 square feet of space in the
Improvements to Lessee on or before the 31st month of the lease term under Owner’s lease of the
Improvements. Lessee agrees to purchase and/or lease and continuously occupy at least 640,000
square feet of space in the Improvements for a period of at least five (5) consecutive years
beginning no later than the First Year of Abatement; and to lease and continuously occupy at least
an additional 120,000 square feet of space in the Improvements on or before the 31st month of the
lease term under Lessee’s lease of the Improvements.
DEFAULT: RECAPTURE OF TAX REVENUE
19. In the event: (i) Owner fails to complete the Improvements in accordance with this
Agreement or in accordance with applicable State or local laws, codes or regulations; (ii) Owner or
Lessee has delinquent ad valorem or sales taxes owed to the City (provided such party retains its
right to timely and properly protest such taxes or assessment); (iii) Owner or Lessee has an “Event
of Bankruptcy or Insolvency”; or (iv) Owner or Lessee breaches any of the terms and conditions of
this Agreement, then such party (the “Defaulting Party”), after the expiration of the notice and cure
periods described below, shall be in default of this Agreement. As liquidated damages in the event
of such default, the “Defaulting Party” shall, within thirty (30) days after demand, pay to the City all
taxes which otherwise would have been paid by the Defaulting Party to the City without benefit of a
tax abatement for the Defaulting Party’s property the subject of this Agreement, with interest at the
statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code as amended but
without penalty. The parties acknowledge that actual damages in the event of default termination
would be speculative and difficult to determine. The parties further agree that any abated tax,
including interest as a result of this Agreement, shall be recoverable against the Defaulting Party, its
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 6 49968
successors and assigns and shall constitute a tax lien against the Defaulting Party’s property, the
subject of this Agreement, and shall become due, owing and shall be paid to the City within thirty
(30) days after termination.
20. Upon breach by Owner and/or Lessee of any obligations under this Agreement, the
City shall notify the “Defaulting Party” and the non-defaulting party in writing, who shall have
thirty (30) days from receipt of the notice in which to cure any such default. The non-defaulting
party shall have the right, but not the obligation, to cure the default of the “Defaulting Party.” If the
default cannot reasonably be cured within a thirty (30) day period, and the “Defaulting Party”, or the
non-defaulting party, has diligently pursued such remedies as shall be reasonably necessary to cure
such default, then the City may extend the period in which the default must be cured.
21. If the “Defaulting Party” or the non-defaulting party fails to cure the default within
the time provided as specified above or, as such time period may be extended, then the City at its
sole option shall have the right to terminate this Agreement, with respect to the Defaulting Party, by
written notice to the Defaulting Party. For illustration purposes only, in the event that this
Agreement is terminated with respect to Lessee such that Lessee is no longer entitled to tax
abatement for its Tangible Personal Property under this Agreement, this Agreement shall remain in
full force and effect for the Owner and the tax abatement of the Improvements shall not be affected
thereby.
22. Upon termination of this Agreement by City with respect to a Defaulting Party, all
tax abated as a result of this Agreement, with respect to the Defaulting Party and such Defaulting
Party’s property the subject of this Agreement, shall become a debt to the City as liquidated
damages, and shall become due and payable not later than thirty (30) days after a notice of
termination is made. The City shall have all remedies for the collection of the abated tax provided
generally in the Tax Code for the collection of delinquent property tax. The City at its sole
discretion has the option to provide a repayment schedule. The computation of the abated tax for
the purposes of the Agreement shall be based upon the full Taxable Value of the Improvements or
the Tangible Personal Property, as the case may be, without tax abatement for the years in which tax
abatement hereunder was received by the Defaulting Party with respect to the Improvements or the
Tangible Personal Property, as the case may be, as determined by the Appraisal District, multiplied
by the tax rate of the years in question, as calculated by the City Tax Assessor-Collector. The
liquidated damages shall incur penalties as provided for delinquent taxes and shall commence to
accrue after expiration of the thirty (30) day payment period. The City’s sole remedy against a
“Defaulting Party” shall be the recovery of the liquidated damages and the enforcement of the tax
lien against the “Defaulting Party’s” property the subject of this Agreement.
ANNUAL APPLICATION FOR TAX EXEMPTION
23. It shall be the responsibility of the Owner and Lessee, pursuant to the Tax Code, to
file an annual exemption application form with the Chief Appraiser for each Appraisal District in
which the eligible taxable property has situs. A copy of the exemption application shall be
submitted to the City upon request.
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 7 49968
SUCCESSORS AND ASSIGNS
24. This Agreement shall be binding on and inure to the benefit of the parties to it and
their respective heirs, executors, administrators, legal representatives, successors, and permitted
assigns. This Agreement may not be assigned without the consent of the City Manager, except that
this Agreement may be assigned without the consent of the City Manager upon ten (10) days prior
notice to City: (i) by Owner to Duke Realty Limited Partnership in connection with the sale and
transfer of the Land and Improvements to Duke Realty Limited Partnership; (ii) by Lessee to any
related corporation or other legal entity which controls Lessee, is controlled by Lessee or is under
common control with Lessee, or to a successor entity into which or with which Lessee is merged or
consolidated or which acquires substantially all of Lessee’s assets, provided that such successor
entity of Owner or Lessee, as the case may be, assumes the obligations of such party respectively.
For purposes of this section “control” shall mean ownership of not less than fifty percent (50%) of
all voting stock or legal and equitable interest in such corporation or entity.
NOTICE
25. All notices required by this Agreement shall be addressed to the following, or other
such other party or address as either party designates in writing, by certified mail, postage prepaid,
or by hand or overnight delivery:
If intended for Owner, to:
Attn: Jeff Turner
Texas Dugan Limited Partnership
5495 Beltline Road, Suite 360
Dallas, Texas 75240
With copy to:
Corporate Attorney (Texas Market)
Duke Realty Corporation
3950 Shackleford Road
Suite 300
Duluth, GA 30096
If intended for Lessee, to:
Attn: Chief Financial Officer
The Container Store, Inc.
2000 Valwood Parkway
Dallas, Texas 75234-8800
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 8 49968
With copies to:
Attn: Vice President of Real Estate Michael L. Robertson
The Container Store, Inc. Smith, Robertson, Elliott & Glen, L.L.P.
2000 Valwood Parkway 1717 West Sixth Street, Suite 300
Dallas, Texas 75234-8800 Austin, Texas 78703
If intended for City, to:
Attn: City Manager
City of Coppell, Texas
P. O. Box 478
Coppell, Texas 75019
With copy to:
Peter G. Smith
Nichols, Jackson, Dillard, Hager & Smith, L.L.P.
1800 Lincoln Plaza
500 N. Akard
Dallas, Texas 75201
CITY COUNCIL AUTHORIZATION
26. This Agreement was authorized by resolution of the City Council approved by its
Council meeting authorizing the Mayor to execute this Agreement on behalf of the City.
SEVERABILITY
27. In the event any section, subsection, paragraph, sentence, phrase or word herein is
held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be
enforceable and shall be read as if the parties intended at all times to delete said invalid section,
subsection, paragraph, sentence, phrase or word.
APPLICABLE LAW
28. This Agreement shall be construed under the laws of the State of Texas. Venue for
any action under this Agreement shall be the State District Court of Dallas County, Texas. This
Agreement is performable in Dallas County, Texas.
COUNTERPARTS
29. This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original and constitute one and the same instrument.
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 9 49968
ENTIRE AGREEMENT
30. This Agreement embodies the complete agreement of the parties hereto, superseding
all oral or written previous and contemporary agreements between the parties and relating to the
matters in this Agreement, and except as otherwise provided herein cannot be modified without
written agreement of the parties to be attached to and made a part of this Agreement.
CONVENANTS RUNNING WITH THE PREMISES
31. The provisions of this Agreement are hereby declared covenants running with the
Premises and are fully binding on all successors, heirs, and assigns of Owner who acquire any right,
title, or interest in or to the Premises, or any part thereof. Any person who acquires any right, title,
or interest in or to the Premises, or any part hereof, thereby agrees and covenants to abide by and
fully perform the provisions of this Agreement with respect to the right, title or interest in such
Premises.
RECORDATION OF AGREEMENT
32. A certified copy of this Agreement shall be recorded in the Deed Records of Dallas
County, Texas.
INCORPORATION OF RECITALS
33. The determinations recited and declared in the preambles to this Agreement are
hereby incorporated herein as part of this Agreement.
EXHIBITS
34. All exhibits to this Agreement are incorporated herein by reference for all purposes
wherever reference is made to the same.
35. This Agreement and the Tax Abatement provided herein is conditioned on Owner
entering into a lease with Lessee for the Improvements, and Lessee entering into a lease with
Owner for the occupancy of the Improvements for a period of at least five (5) years beginning no
later than the First Year of Abatement.
EXECUTED in duplicate originals this the ____ day of ________, 2002.
CITY OF COPPELL, TEXAS
By: ______________________________________
CANDY SHEEHAN, MAYOR
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 10 49968
ATTEST:
By: _______________________________________
LIBBY BALL, CITY SECRETARY
AGREED AS TO FORM:
By:
PETER G. SMITH, CITY ATTORNEY
EXECUTED in duplicate originals this the ____ day of ________, 2002.
TEXAS DUGAN LIMITED PARTNERSHIP,
a Delaware limited partnership
By: Dugan General Partnership, LLC, a
Delaware limited liability company, its
general partner
By: Dugan Texas, LLC, a Delaware limited
liability company, its sole member
By: Duke Realty Limited Partnership, an Indiana
limited partnership, its Manager
By: Duke Realty Corporation, an Indiana
corporation, its sole general partner
By: _______________________________________
JEFF TURNER
SENIOR VICE PRESIDENT, TEXAS
EXECUTED in duplicate originals this the ____ day of ________, 2002.
THE CONTAINER STORE, INC.
By: _______________________________________
Name:
Title:
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 11 49968
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
OWNER’S ACKNOWLEDGMENT
STATE OF _______________ §
§
COUNTY OF _____________ §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jeff Turner being the Senior Vice President, Texas of Duke Realty Corporation, an
Indiana corporation on behalf of Texas Dugan Limited Partnership.
Notary Public, State of _________
My Commission Expires:
CONTAINER STORE TAX ABATEMENT AGREEMENT – Page 12 49968
LESSEE’S ACKNOWLEDGMENT
STATE OF ______________ §
§
COUNTY OF ____________ §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by _________________________ being the _____________________, of The Container
Store, Inc. on behalf of said corporation.
Notary Public, State of ___________
My Commission Expires:
EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
DEPT: Planning and Economic Development
DATE: December 10, 2002
ITEM #: 10/G
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of an Economic Development Incentive Agreement between the City of
Coppell and The Container Store, and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY: This proposed agreement with The Container Store, Inc. is part of the overall
incentive package related to the Container Store development. This economic development incentive agreement
includes a sales tax rebate grant program, a property tax rebate grant on the company’s inventory and business
personal property, twenty-five complimentary individual recreation center memberships, and assistance with
maintaining the southernmost portion of the Heatley tract to be utilized as temporary passive open-space.
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: $ Container Incent1-1AR
ECONOMIC DEVELOPMENT INCENTIVE - Page 1 50006
STATE OF TEXAS §
§ ECONOMIC DEVELOPMENT INCENTIVE
§ AGREEMENT
COUNTY OF DALLAS §
This Economic Development Incentive Agreement (“Agreement”) is made by and
between the City of Coppell, Texas (the “City”), and The Container Store, Inc. (“Company”), acting
by and through their respective authorized officers.
WITNESSETH:
WHEREAS, Company intends to lease and occupy certain improvements (hereinafter
defined as the “Improvements”) to be constructed on the real property located in Coppell, Texas
and being more particularly described in Exhibit “A” (the “Land”).
WHEREAS, the Company has advised the City that a contributing factor that would
induce the Company to relocate its existing operations to the Improvements would be an
agreement by the City to provide an economic development grant to the Company to defray a
portion of the cost of such relocation; and
WHEREAS, the City has adopted programs for promoting economic development; and
WHEREAS, the City is authorized by TEX. LOC. GOV’T CODE §380.001 to provide
economic development grants to promote local economic development and to stimulate business
and commercial activity in the City; and
WHEREAS, the City has determined that making an economic development grant to the
Company in accordance with this Agreement will further the objectives of the City, will benefit
the City and the City’s inhabitants and will promote local economic development and stimulate
business and commercial activity in the City;
NOW THEREFORE, in consideration of the foregoing, and on the terms and conditions
hereinafter set forth, the parties agree as follows:
ARTICLE I
TERM
1. This Agreement shall be effective on the last date of execution hereof (“Effective
Date”) and shall continue for a period of ten (10) years beginning January 1, 2005 unless sooner
terminated as provided herein.
ARTICLE II
DEFINITIONS
2. Wherever used in this Agreement, the following terms shall have the meanings
ascribed to them:
ECONOMIC DEVELOPMENT INCENTIVE - Page 2 50006
(a) “Annual Sales Grant Payment Date” shall mean April 1 of each calendar
year on which the Annual Sales Tax Grants provided herein shall be paid.
(b) “Annual Sales Tax Grants” shall mean the Annual Sales Tax Grant to be
paid the Company from lawful available funds.
(c) “Appraised Value” shall have the same meaning assigned by Section 1.04
of the TEX. TAX CODE, as amended.
(d) “City” shall mean the City of Coppell, Texas.
(e) “Company” shall mean The Container Store, Inc.
(f) “State of Texas” shall mean the office of the Texas Comptroller, or its
successor.
(g) “Event of Bankruptcy or Insolvency” shall mean the dissolution or
termination of a party’s existence as a going business, insolvency, appointment of
receiver for any part of such party’s property and such appointment is not terminated
within ninety (90) days after such appointment is initially made, any general assignment
for the benefit of creditors, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against such party and such proceeding is not
dismissed within ninety (90) days after the filing thereof.
(h) “Force Majeure” shall mean any contingency or cause beyond the reasonable
control of a party including, without limitation, acts of God or the public enemy, war, riot,
civil commotion, insurrection, government or de facto governmental action (unless caused
by the intentionally wrongful acts or omissions of the party), fires, explosions or floods,
strikes, slowdowns or work stoppages.
(i) “Grants” shall collectively mean the Annual Sales Tax Grants, the Start Up
Grant, the BPP Grants and the Inventory Grants.
(j) “Grant Year” shall mean a full calendar year beginning January 1, 2004.
(k) “Improvements” shall mean an office and warehouse facility to be
constructed on the Land containing approximately 1.1 million square feet of space and other
ancillary facilities such as required parking and landscaping more fully described in the
submittals filed with the City.
(l) “Impositions” shall mean all taxes, assessments, use and occupancy taxes,
charges, excises, license and permit fees, and other charges by public or governmental
authority, general and special, ordinary and extraordinary, foreseen and unforeseen,
which are or may be assessed, charged, levied, or imposed by any public or governmental
ECONOMIC DEVELOPMENT INCENTIVE - Page 3 50006
authority on the Company or any property or any business owned by Company within the
City.
(m) “Sales Tax Receipts” shall mean the City’s receipts from the State of
Texas from the collection of the City’s one percent (1%) sales and use tax imposed by the
City pursuant to Chapter 321 of the Texas Tax Code (it being expressly understood that
the City’s sales and use tax receipts are being used only as a measurement for its
participation through the use of general funds), attributed to the collection of the City’s
one percent (1%) sales and use tax by Company as a result of sale of Taxable Items by
Company consummated at the Improvements. Sales Tax Receipts do not include any
sales and use tax imposed by City for the benefit of the Coppell Recreation Development
Corporation, pursuant to Section 4B of the Development Corporation Act of 1979, article
5190.6, Vernon’s Revised Civil Statutes, or sales and use tax imposed by the City for the
benefit of Coppell Education Development Corporation pursuant to Chapter 379 A of the
TEX. LOC. GOV’T CODE.
(n) “Sales Tax Certificate” shall mean a certificate or other statement in a
form reasonably acceptable to the City setting forth the Company’s collection of the
City’s one percent (1%) sales and use tax imposed by the City and received by the City
from the State of Texas for the sale of Taxable Items by Company consummated at the
Improvements for the previous calendar year which are to be used to determine the
amount and the Company’s eligibility for an Annual Sales Tax Grant, together with such
supporting documentation required herein, and as City may reasonably request.
(o) “Taxable Items” shall have the same meaning assigned by Chapter 151,
TEX. TAX CODE, as amended.
(p) “Tangible Personal Property” shall mean tangible personal property,
equipment and fixtures other than inventory or supplies owned or leased by Company
that is added to the Improvements subsequent to the execution of this Agreement.
(q) “Property” shall collectively mean the Land and the Improvements.
(r) “Required Use” shall mean the Company’s continuous operation of an
office, warehouse, distribution, sales, storage, and light assembly facility at the
Improvements, subject to temporary cessations of such operation as a result of an event of a
casualty or Force Majeure.
ARTICLE III
ECONOMIC DEVELOPMENT GRANT
3.1 Sales Tax Grant. Subject to the Company’s Required Use and continued
satisfaction of all the terms and conditions of this Agreement, the City agrees to provide
Company with ten (10) annual economic development grants (“Annual Sales Tax Grants”) from
lawfully available funds. The Annual Sales Tax Grants for Grant Years 1-5 shall be in an
amount equal to one hundred percent (100%) of the Sales Tax Receipts and for Grant Years 6-10
ECONOMIC DEVELOPMENT INCENTIVE - Page 4 50006
the Annual Sales Tax Grants shall be in an amount equal to fifty percent (50%) of the Sales Tax
Receipts; provided however the maximum Annual Sales Tax Grant for any Grant Year shall not
exceed Fifty Thousand Dollars ($50,000.00).
3.2 Annual Payment Date. The Annual Sales Tax Grants shall be paid on April 1 of
each calendar year this Agreement is in effect beginning on April 1, 2005 (the “Annual Grant
Payment Date”).
3.3 Current Revenue. The Annual Sales Tax Grants made hereunder shall be paid
from current revenue from available funds that have been appropriated by the City. Under no
circumstances shall City’s obligations hereunder be deemed to create any debt within the
meaning of any constitutional or statutory provision. Further, the City shall not be obligated to
pay any commercial bank, lender or similar institution for any loan or credit agreement made by
the Company. None of the City’s obligations under this Agreement shall be pledged or
otherwise encumbered in favor of any commercial lender and/or similar financial institution.
3.4 Sales Tax Grant Limitation. Under no circumstances shall City be obligated to
pay any Annual Sales Tax Grant unless there is available Sales Tax Receipts and not until receipt
of the Sales Tax Certificate for the applicable Grant Year. City shall not be required to provide
any Annual Sales Tax Grant during the term of this Agreement for which City has not received
the Sales Tax Receipts for such Grant Year attributed to sales and use tax paid as a result of the
sale of a Taxable Item by Company consummated at the Improvements.
3.5 Conditions to Annual Sales Tax Grants. Company shall during the term of this
Agreement strictly comply and satisfy each of the following conditions.
(a)Improvements. The Company agrees to lease and occupy the Improvements on
or before December 31, 2004, subject to construction and delivery thereof by Company’s
landlord. The Company shall lease and occupy initially at least 640,000 square feet of space in
the Improvements, and shall lease and occupy at least an additional 120,000 square feet of space
in the Improvements on or before the 31st month of the lease term under Company’s lease of the
Improvements. Thereafter, the Company agrees to continuously lease and occupy at least
720,000 square feet of space in the Improvements.
(b)Sales Tax Certificate. Beginning February 1, 2005 and continuing on February 1
of each Calendar Year thereafter during the term of this Agreement but ending February 1, 2014,
the Company shall provide the City with a Sales Tax Certificate. The City shall have no duty to
calculate the Sales Tax Receipts or determine Company’s entitlement to any Annual Sales Tax
Grant, or pay any Annual Sales Tax Grant during the term of this Agreement until such time as
Company has provided the City a Sales Tax Certificate for the applicable Grant Year. The City
may but is not required to provide Company with a form for the Sales Tax Certificate required
herein. At the request of the City, the Company shall provide such additional documentation as
may be reasonably requested by City to evidence, support and establish the sales and use tax paid
and collected (including sales and use tax paid directly to the State of Texas pursuant to a direct
payment permit) by Company for the sale of Taxable Items by Company consummated at the
ECONOMIC DEVELOPMENT INCENTIVE - Page 5 50006
Improvements and received by City from the State of Texas. The Sales Tax Certificate shall at a
minimum contain, include or be accompanied by the following:
i. A schedule detailing the amount of the City’s one percent (1%) sales and use tax
collected and paid to the State of Texas as a result of the sale of Taxable Items by
Company consummated at the Improvements for the previous calendar year;
ii. A copy of all sales and use tax returns and reports, sales and use tax prepayment
returns, direct payment permits and reports, including amended sales and use tax
returns or reports, filed by Company for the previous calendar year showing the
City’s one percent (1%) sales and use tax collected (including sales and use tax
paid directly to the State of Texas pursuant to a direct payment certificate) by
Company for the sale of Taxable Items consummated at the Improvements;
iii. A copy of all direct payment and self-assessment returns, including amended
returns, filed by Company for the previous calendar year showing the City’s one
percent (1%) sales and use tax collected by Company and paid to the State of
Texas for the sale of Taxable Items by Company consummated at the
Improvements;
iv. Information concerning any refund or credit received by Company of the City’s
one percent (1%) sales or use taxes paid or collected by Company (including any
sales and use tax paid directly to the State of Texas pursuant to a direct payment
permit) which has previously been reported by Company as sales and use tax paid
or collected for a Grant Year;
v. A schedule detailing the total sales of Taxable Items by Company consummated
at the Improvements for the previous calendar year.
City agrees to the extent allowed by law to maintain the confidentiality of the Sales Tax
Certificate.
(c) As a condition precedent to the payment of any Annual Sales Tax Grant
hereunder, City shall have received a Sales Tax Certificate from the Company for the Grant Year
for which payment of an Annual Sales Tax Grant is requested.
(d) During the term of this Agreement following the issuance of a final certificate of
occupancy for Company’s occupancy of the Improvements and continuing thereafter until
expiration of this Agreement or earlier termination of this Agreement to: (i) continuously lease (or
own), and occupy initially at least 640,000 square feet of space in the Improvements, and to
continuously lease (or own); (ii) continuously lease and occupy at least an additional 120,000 square
feet of space in the Improvements on or before the 31st month of the lease term under Company’s
lease of the Improvements; and (iii) thereafter to continuously lease and occupy at least 720,000
square feet of space in the Improvements; and that the Property shall not be used for any purpose
other than the Required Use and that the Company shall not allow the operation of the
ECONOMIC DEVELOPMENT INCENTIVE - Page 6 50006
Improvements in conformance with the Required Use to cease for more than thirty (30) days except
in connection with, and to the extent of an event of a casualty or Force Majeure.
(e) Company shall not have an uncured breach or default of this Agreement.
(f)Adjustments. In the event the Company files an amended sales and use tax
return, or report with the State of Texas, or if additional Sales and Use Tax is due and owing, as
determined or approved by the State of Texas, affecting Sales Tax Receipts for a previous Grant
Year, the Annual Sales Tax Grant payment for the Grant Year immediately following such State
of Texas approved amendment shall be adjusted accordingly provided the City has received
Sales Tax Receipts attributed to such adjustment. As a condition precedent to payment of such
adjustment, the Company shall provide the City with a copy of any such amended sales and use
tax report or return, and the approval thereof by the State of Texas. The provisions of this
Section 3.5(f) shall survive termination of this Agreement.
(g)Refunds. In the event the State of Texas determines that the City erroneously
received Sales Tax Receipts, or that the amount of Sales and Use Tax paid to the City exceeds the
correct amount of Sales and Use Tax for a previous Grant Year, for which the Company has
received an Annual Sales Tax Grant, the Company shall, within thirty (30) days after receipt of
notification thereof from the City specifying the amount by which such Annual Sales Tax Grant
exceeded the amount to which the Company was entitled pursuant to such State of Texas
determination, repay such amount to the City. The City may at its option adjust the Annual Sales
Tax Grant payment for the Grant Year immediately following such State of Texas determination.
As a condition precedent to payment of such refund, the City shall provide Company with a copy of
such determination by the State of Texas. The provisions of this Section 3.5(g) shall survive
termination of this Agreement.
ARTICLE IV
ADDITIONAL INCENTIVES
4.1 Start-Up Grant. Subject to the Company’s Required Use and continued
satisfaction of the terms and conditions of this Agreement, the City shall provide to the Company
one economic development grant (the “Start-Up Grant”) in an amount equal to one hundred
percent (100%) of the City’s receipts from the State of Texas from the collection of the City’s
one percent (1%) sales and use tax imposed by the City pursuant to Chapter 321 of the Texas
Tax Code (it being expressly understood that the City’s sales and use tax receipts are being used
only as a measurement for its participation through the use of general funds), attributed to the
collection of the City’s one percent (1%) sales and use tax from the sale to and purchase by
Company of Taxable Items consisting of equipment, furniture and fixtures for use in the
Improvements consummated in the City for the period beginning six (6) calendar months
immediately preceding the date of issuance of the final certificate of occupancy for Company’s
occupancy for the Improvements and continuing for six (6) calendar months after the date a final
certificate of occupancy is issued for Company’s occupancy for the Improvements (the” Start-Up
Period”). The sale of Taxable items subject to the Start-Up Grant shall be for items directly
related to the Company’s use and occupancy of the Improvements. For purposes of the Start-Up
Grant sales tax receipts do not include any sales and use tax imposed by City for the benefit of
ECONOMIC DEVELOPMENT INCENTIVE - Page 7 50006
the Coppell Recreation Development Corporation, pursuant to Section 4B of the Development
Corporation Act of 1979, article 5190.6 TEX. DEV. CIV. STAT. or sales and use tax imposed by
the City for the benefit of Coppell Education Development Corporation pursuant to Chapter 379
A of the TEX. LOC. GOV’T CODE during the Start-Up Period.
4.2 For purposes of Article IV, “Start-Up Sales Tax Certificate” shall mean a
certificate or other statement in a form reasonably acceptable to the City setting forth the City’s
receipts from the State of Texas from the collection of the City’s one percent (1%) sales and use
tax imposed by the City pursuant to Chapter 321 of the Texas Tax Code for the sale to and
purchase by Company of Taxable Items consisting of equipment, furniture and fixtures for use in
the Improvements that are consummated in the City during the Start-Up Period which are to be
used to determine the amount of the Start-Up Grant and the Company’s eligibility for the Start-
Up Grant, together with such supporting documentation, and as City may reasonably request.
The Start-Up Sales Tax Certificate shall at a minimum contain, include or be accompanied by the
following:
a. A schedule detailing the amount of the City’s one percent (1%) sales and use tax
collected and paid to the State of Texas as a result of the sale to and purchase by
Company of Taxable Items consisting of equipment, furniture and fixtures for the
Improvements consummated in the City during the Start-Up Period;
b. A copy of all sales and use tax returns and reports, sales and use tax prepayment
returns, direct payment permits and reports, including amended sales and use tax
returns or reports, filed by a company, business or other legal entity (the
“Company’s Vendor”) showing the City’s one percent (1%) sales and use tax
collected (including sales and use tax paid directly to the State of Texas pursuant
to a direct payment certificate) by the Company’s Vendor for the sale to and
purchase by Company of Taxable Items consisting of equipment, furniture and
fixtures for the Improvements that are consummated in the City during the Start-
Up Period;
c. A copy of all direct payment and self-assessment returns, including amended
returns, filed by the Company’s Vendor during the Start-Up Period showing the
City’s one percent (1%) sales and use tax collected by the Company’s Vendor for
the sale to and purchase by Company of Taxable Items consisting of equipment,
furniture and fixtures for the Improvements that are consummated in the City
during the Start-Up Period;
d. Information concerning any refund or credit received by Company of the City’s
one percent (1%) sales or use taxes paid by Company (including any sales and use
tax paid directly to the State of Texas pursuant to a direct payment permit) which
has previously been reported by Company as sales and use tax paid or collected
during the Start-Up Period;
ECONOMIC DEVELOPMENT INCENTIVE - Page 8 50006
e. A schedule detailing the total of sales tax paid by Company for the purchase of
Taxable Items consisting of equipment, furniture and fixtures for use in the
Improvements that are consummated in the City during the Start-Up Period.
City agrees to the extent allowed by law to maintain the confidentiality of the Start-Up Sales Tax
Certificate.
4.3 As a condition precedent to the payment of Start-Up Grant hereunder, City shall
have received a Start-Up Sales Tax Certificate for the Start-Up Period.
4.4 During the term of this Agreement following the issuance of a final certificate of
occupancy for Company’s occupancy of the Improvements and continuing thereafter until
expiration of this Agreement or earlier termination of this Agreement to continuously lease (or
own), and occupy initially at least 640,000 square feet of space in the Improvements, and to
continuously lease (or own), and occupy an additional 120,000 square feet of space in the
Improvements on or before the 31st month of the lease term under Company’s lease of the
Improvements, and thereafter to continuously lease and occupy at least 720,000 square feet of space
in the Improvements; and that the Property shall not be used for any purpose other than the
Required Use and that the Company shall not allow the operation of the Improvements in
conformance with the Required Use to cease for more than thirty (30) days except in connection
with, and to the extent of an event of a casualty or Force Majeure.
4.5 Company shall not have an uncured breach or default of this Agreement.
4.6 Company shall provide the City with the Start-Up Sales Tax Certificate within
thirty (30) days after the expiration of the Start-Up Period. The Start-Up Grant shall be paid
within one hundred twenty (120) days following the City receipt of the Start-Up Sales Tax
Certificate from the Company.
4.7 Refunds. In the event the State of Texas determines that the City erroneously
received sales tax receipts, or that the amount of Sales and Use Tax paid to the City exceeds the
correct amount of Sales and Use Tax applicable to the Start-Up Grant, the Company shall, within
thirty (30) days after receipt of notification thereof from the City specifying the amount by which
such Start-Up Grant exceeded the amount to which the Company was entitled pursuant to such State
of Texas determination, pay such amount to the City. As a condition precedent to payment of such
refund, the City shall provide Company with a copy of such determination by the State of Texas.
The provisions of this Section 4.7 shall survive termination of this Agreement.
4.8 Adjustments. In the event the Company’s Vendor files an amended sales and use
tax return, or report with the State of Texas, or if additional Sales and Use Tax is due and owing,
as determined or approved by the State of Texas, affecting Sales Tax Receipts for the Start-Up
Grant, the City shall pay any under payment of the Start-Up Grant, provided the City has
received sales tax receipts attributed to such adjustment. As a condition precedent to payment of
such adjustment, the Company shall provide the City with a copy of any such Company’s
Vendor amended sales and use tax report or return, and the approval thereof by the State of
Texas. The provisions of this Section 4.8 shall survive termination of this Agreement.
ECONOMIC DEVELOPMENT INCENTIVE - Page 9 50006
4.9 Inventory Grant. Subject to the Company’s Required use and continued
satisfaction of the terms and conditions of this Agreement, the City shall provide the Company
annual economic development grants for ten (10) consecutive tax years in an amount equal to the
stated percentage of the property taxes assessed by the City against the Company’s taxable
inventory located at the Improvements (the “Inventory Grant”) set forth below:
Inventory Grant - Tax Years 1-5 50%
Inventory Grant - Tax Years 6-10 100%
4.10 For purpose of calculating the amount of an Inventory Grant the certified Appraised
Value of the Company’s taxable inventory as determined by the central appraisal district shall by
multiplied by the City’s tax rate for the applicable year. The Inventory Grants shall be based on the
applicable property taxes for tax years 2005-2014, and shall be paid on April 1 of the calendar year
following the end of the applicable tax year beginning April 1, 2006, and ending April 1, 2015. In
the event the Company properly protests or contests the Appraised Value and/or the property taxes
for all or any portion of Company’s inventory located at the Improvements the City’s obligation to
provide the Inventory Grant with respect to such tax year shall be abated until a final determination
has been made of such protest or contest. Company shall notify the City in writing in the event of
such Company protest or contest. In the event a Company protest, motion or contest of the
Appraised Value or taxation of Company’s inventory located at the Improvements results in a
final determination that changes the Company’s City property tax liability for Company’s
inventory located at the Improvements after an Inventory Grant has been paid for such tax year,
the Inventory Grant for the succeeding tax year shall be adjusted accordingly, or if there are no
further Inventory Grants to be paid, the City shall, within thirty (30) days, after such final
determination, pay any underpayment of the Inventory Grant to Company, and Company shall
within the same period pay any over payment of the Inventory Grant to the City. In the event the
City determines in its sole discretion that the City incorrectly paid to the Company an Inventory
Grant, the Company shall, within thirty (30) days after receipt of notification thereof from the City
specifying the amount by which such Inventory Grant exceeded the correct amount to which the
Company was entitled, pay such amount to the City. As a condition precedent to the City’s
obligation to pay each Inventory Grant, the Company shall have paid in full, without protest, the
property taxes assessed by the City against the Company’s Tangible Personal Property, including
inventory, located at the Improvements for such tax year. The City shall have no obligation to pay
any Inventory Grant for any tax year for which the Company has not paid in full the property taxes
assessed against the Company’s Tangible Personal Property located at the Improvements, subject to
that certain tax abatement agreement by and among the City, the Company and Texas Dugan
Limited Partnership of even date herewith. The provisions of this Section 4.10 relating to the
obligation of the City and Company to pay any over or under payment of an Inventory Grant shall
survive termination of this Agreement.
4.11 BPP Grant. Subject to the Company’s Required use and continued satisfaction of
the terms and conditions of this Agreement, the City shall provide the Company annual economic
development grants for five (5) consecutive tax years in an amount equal to eighty-five percent
(85%) of the property taxes assessed by the City against the Company’s taxable Tangible Personal
Property, excluding inventory, located at the Improvements (the “BPP Grant”). For purpose of
ECONOMIC DEVELOPMENT INCENTIVE - Page 10 50006
calculating the amount of a BPP Grant the certified Appraised Value of the Company’s taxable
Tangible Personal Property, excluding inventory, located at the Improvements, as determined by the
central appraisal district, shall by multiplied by the City’s tax rate for the applicable year. The BPP
Grants are based on the applicable property taxes for tax years 2010 -2014, and shall be paid on
April 1 of the calendar year following the end of the applicable tax year, beginning April 1, 2011
and ending April 1, 2015. In the event the Company properly protests or contests the Appraised
Value and/or the property taxes for all or any portion of Company’s Tangible Personal Property
located at the Improvements the City’s obligation to provide the BPP Grant with respect to such tax
year shall be abated until a final determination has been made of such protest or contest. Company
shall notify the City in writing in the event of such Company protest or contest. In the event a
Company protest, motion or contest of the Appraised Value or taxation of Company’s Tangible
Personal Property located at the Improvements results in a final determination that changes the
Company’s property tax liability for Company’s Tangible Personal Property after a BPP Grant
has been paid for such tax year, the BPP Grant for the succeeding tax year shall be adjusted
accordingly, or if there are no further BPP Grants to be paid, the City shall, within thirty (30)
days, after such final determination, pay any underpayment of the BPP Grant to Company, and
Company shall within the same period pay any over payment of the BPP Grant to the City. In the
event the City determines in its sole discretion that the City incorrectly paid to the Company an BPP
Grant, the Company shall, within thirty (30) days after receipt of notification thereof from the City
specifying the amount by which such BPP Grant exceeded the correct amount to which the
Company was entitled, pay such amount to the City. As a condition precedent to the City’s
obligation to pay each BPP Grant, the Company shall have paid in full, without protest, the property
taxes assessed by the City against the Company’s Tangible Personal Property, including inventory,
located at the Improvements for such tax year. The City shall have no obligation to pay any BPP
Grant for any tax year for which the Company has not paid in full, without protest, the property
taxes assessed against the Company’s Tangible Personal Property, including inventory located at
the Improvements. The provisions of this Section 4.11 relating to the obligations of the City and
Company to pay any over or under payment of a BPP Grant shall survive termination of this
Agreement.
4.12 Future Expansion Grants. The City agrees by separate agreements to provide
Company with the BPP Grants and Inventory Grants for Company expansion within the
Improvements (including, without limitation, Company’s initial expansion into at least an
additional 120,000 square feet of space in the Improvements on or before the 31st month of the
lease term under Company’s lease of the Improvements) for additional business personal
property and inventory located in such expansion provided such business personal property and
inventory is not transferred and/or relocated from another location in the City; and further
provided the Dallas Central Appraisal District assigns such expansion business personal property
and inventory an account separate and apart from the property the subject of the BPP and
Inventory Grants set forth herein. Each agreement applicable to such expansion shall have a full
10-year term commencing on the day Company first occupies each such expansion space, and
upon the same essential terms and provisions as set forth herein, and in that certain Tax
Abatement Agreement by and among the City, the Company and the Company’s landlord of
even date herewith.
ECONOMIC DEVELOPMENT INCENTIVE - Page 11 50006
4.13 Coppell Aquatics and Recreation Center Memberships. Subject to the
Company’s Required Use and continued satisfaction of the terms and conditions of this
Agreement, the City shall during the term hereof provide the Company with twenty-five (25)
complimentary individual memberships to the Coppell Aquatics and Recreation Center, and offer
corporate membership, if corporate memberships are offered to the public, or individual
memberships at the rate applicable for City residents, for membership to the Coppell Aquatics
and Recreation Center to the Company’s employees during the term of the Agreement.
4.14 Passive Open Space. The City, the Company and Company’s landlord will in
good faith work to develop, implement and maintain a mutually agreed plan to enhance, improve
and clean up the southern seventy-five feet (75’) of the 35 acre tract of land north of the
Improvements known as the Heatley Tract and located at 800 Ruby Road, Coppell, Texas, that is
intended to be used as passive open space. Such passive open space may be used by Company’s
employees until such time as such property is developed or no longer owned by the City.
4.15 Current Revenue. The Start-Up Grant, the BPP Grant and Inventory Grant made
hereunder shall be paid from current revenue from available funds that have been appropriated
by the City. Under no circumstances shall City’s obligations hereunder be deemed to create any
debt within the meaning of any constitutional or statutory provision. Further, the City shall not
be obligated to pay any commercial bank, lender or similar institution for any loan or credit
agreement made by the Company. None of the City’s obligations with respect to the Start-Up
Grant, the BPP Grant and the Inventory Grant under this Agreement shall be pledged or
otherwise encumbered in favor of any commercial lender and/or similar financial institution.
4.16 Start-Up Grant Limitations. Under no circumstances shall City be obligated to
pay the Start-Up Grant unless there is available sales tax receipts and not until receipt of the
Start-Up Sales Tax Certificate. City shall not be required to provide the Start-Up Grant unless
the City has received sales tax receipts for the Start-Up Period attributed to the sale to and
purchase by Company of Taxable Items consisting of equipment, furniture and fixtures for use in
the Improvements that are consummated in the City during the Start-Up Period.
ARTICLE V
TERMINATION
5.1 This Agreement shall terminate upon any one of the following:
(a) by written agreement of the parties;
(b) expiration of the Term;
(c) by either party in the event the other party breaches any of the terms or
conditions of this Agreement and such breach is not cured within thirty
(30) days after written notice thereof;
(d) by City, if Company suffers an Event of Bankruptcy or Insolvency; and
(e) by City, if any Impositions owed to the City or the State of Texas by
Company shall become delinquent (provided, however the Company retains
the right to timely and properly protest and contest any such Impositions);
ECONOMIC DEVELOPMENT INCENTIVE - Page 12 50006
5.2 Refund of Grants. In the event the Agreement is terminated by the City pursuant to
Section 5.1(c), (d), or (e), the Company shall, as the City’s sole remedy, immediately refund to the
City an amount equal to the sum of all previous Grants paid by the City to the Company under this
Agreement prior to the date of such termination.
ARTICLE VI
MISCELLANEOUS
6.1 Binding Agreement. The terms and conditions of this Agreement are binding
upon the successors and assigns of the parties hereto. This Agreement may not be assigned
without the express written consent of the City Manager, except that this Agreement may be
assigned without the consent of the City Manager upon ten (10) days prior notice to City by
Company to any related corporation or other legal entity which controls Company, is controlled
by Company or is under common control with Company, or to a successor entity into which or
with which Company is merged or consolidated or which acquires substantially all of
Company’s assets, provided that such successor entity of Company assumes the obligations of
such party. For purposes of this section “control” shall mean ownership of not less than fifty
percent (50%) of all voting stock or legal and equitable interest in such corporation or entity.
6.2 Limitation on Liability. It is understood and agreed between the parties that the
Company, in satisfying the conditions of this Agreement, have acted independently, and the City
assumes no responsibilities or liabilities to third parties in connection with these actions. The
Company agrees to indemnify and hold harmless the City from all such claims, suits, and causes
of actions, liabilities and expenses, including reasonable attorney’s fees, of any nature
whatsoever by a third party arising out of the Company’s performance of the conditions under
this Agreement, excluding actions of third parties with whom Company has not contracted with
or whom are not injured on the Land or within the Improvements.
6.3 No Joint Venture. It is acknowledged and agreed by the parties that the terms
hereof are not intended to and shall not be deemed to create a partnership or joint venture among
the parties.
6.4 Authorization. Each party represents that it has full capacity and authority to
grant all rights and assume all obligations that are granted and assumed under this Agreement.
6.5 Notice. Any notice required or permitted to be delivered hereunder shall be
deemed received three (3) days thereafter sent by United States Mail, postage prepaid, certified
mail, return receipt requested, addressed to the party at the address set forth below or on the day
actually received if sent by courier or otherwise hand delivered.
If intended for City, to:
Attn: City Manager
City of Coppell, Texas
255 Parkway Boulevard
P.O. Box 9478
Coppell, Texas 75019
ECONOMIC DEVELOPMENT INCENTIVE - Page 13 50006
With a copy to:
Peter G. Smith
Nichols, Jackson, Dillard,
Hager & Smith, L.L.P.
1800 Lincoln Plaza
500 North Akard
Dallas, Texas 75201
If intended for the Company, to:
Attn: Chief Financial Officer
The Container Store, Inc.
2000 Valwood Parkway
Dallas, Texas 75234-8800
With a copies to:
Attn: Vice President of Real Estate Michael L. Robertson
The Container Store, Inc. Smith, Robertson, Elliott & Glen, L.L.P.
2000 Valwood Parkway 1717 West Sixth Street, Suite 300
Dallas, Texas 75234-8800 Austin, Texas 78703
6.6 Entire Agreement. This Agreement is the entire Agreement between the parties
with respect to the subject matter covered in this Agreement. There is no other collateral oral or
written Agreement between the parties that in any manner relates to the subject matter of this
Agreement, except as provided in any Exhibits attached hereto.
6.7 Governing Law. The Agreement shall be governed by the laws of the State of
Texas; and venue for any action concerning this Agreement shall be in the State District Court of
Dallas County, Texas.
6.8 Amendment. This Agreement may only be amended by the mutual written
agreement of the parties.
6.9 Legal Construction. In the event any one or more of the provisions contained in
this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention
of the parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or
unenforceable, a provision shall be added to this Agreement which is legal, valid and enforceable
and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable.
6.10 Recitals. The recitals to this Agreement are incorporated herein.
ECONOMIC DEVELOPMENT INCENTIVE - Page 14 50006
6.11 Counterparts. This Agreement may be executed in counterparts. Each of the
counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one
and the same instrument.
6.12 Exhibits. All exhibits to this Agreement are incorporated herein by reference for
all purposes wherever reference is made to the same.
6.13 Survival of Covenants. Any of the representations, warranties, covenants, and
obligations of the parties, as well as any rights and benefits of the parties, pertaining to a period
of time following the termination of this Agreement shall survive termination.
EXECUTED on this _______ day of _____________________, 2002.
CITY OF COPPELL, TEXAS
By:
CANDY SHEEHAN, MAYOR
ATTEST:
By:
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
By:
PETER G. SMITH
(Ed. 12/02/02)
EXECUTED this the _________ day of ______________________, 2002.
THE CONTAINER STORE, INC.
By: _______________________________________
Name: _____________________________________
Title: ______________________________________
ECONOMIC DEVELOPMENT INCENTIVE - Page 15 50006
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
ECONOMIC DEVELOPMENT INCENTIVE - Page 16 50006
COMPANY’S ACKNOWLEDGMENT
STATE OF _______________ §
§
COUNTY OF _____________ §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by ________________, ___________________ of The Container Store, Inc. on behalf of
said corporation.
Notary Public, State of ___________
My Commission expires:
EXHIBIT “A”
LEGAL DESCRIPTION OF LAND
DEPT: Planning and Economic Development
DATE: December 10, 2002
ITEM #: 10/H
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of an Economic Development Incentive Agreement between the City of
Coppell and Texas Dugan Limited Partnership, and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY: This proposed agreement with Texas Dugan Limited Partnership is part of the
overall incentive package related to The Container Store project. A separate incentive agreement with The
Container Store is required. This proposed agreement will provide Texas Dugan Limited Partnership with a sales
tax rebate in the amount equal to the sales tax generated as a result of the tenant finish-out for the Container Store
project. This agreement also provides a waiver of 50% of the building permit fees, assistance in maintaining an
agreed upon water level in a detention pond, and an 85% property tax rebate grant for real property for five years.
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: $ TX Dugan Incent1-1AR
ECONOMIC DEVELOPMENT INCENTIVE - Page 1 51226
STATE OF TEXAS §
§ ECONOMIC DEVELOPMENT INCENTIVE
§ AGREEMENT
COUNTY OF DALLAS §
This Economic Development Incentive Agreement (“Agreement”) is made by and
between the City of Coppell, Texas (the “City”), and Texas Dugan Limited Partnership
(“Company”), acting by and through their respective authorized officers.
WITNESSETH:
WHEREAS, Company intends to construct and lease certain improvements to The
Container Store (hereinafter defined as the “Improvements”) on the real property located in
Coppell, Texas and being more particularly described in Exhibit “A” (the “Land”).
WHEREAS, the Company has advised the City that a contributing factor that would
induce the Company to construct and lease the Improvements to The Container Store would be
an agreement by the City to provide an economic development grant to the Company to defray a
portion of the cost of such construction; and
WHEREAS, the City has adopted programs for promoting economic development; and
WHEREAS, the City is authorized by TEX. LOC. GOV’T CODE §380.001 to provide
economic development grants to promote local economic development and to stimulate business
and commercial activity in the City; and
WHEREAS, the City has determined that making an economic development grant to the
Company in accordance with this Agreement will further the objectives of the City, will benefit
the City and the City’s inhabitants and will promote local economic development and stimulate
business and commercial activity in the City;
NOW THEREFORE, in consideration of the foregoing, and on the terms and conditions
hereinafter set forth, the parties agree as follows:
ARTICLE I
TERM
1. This Agreement shall be effective on the date of execution hereof by the City and
the Company (“Effective Date”) and shall continue until the parties have fully satisfied their
respective obligation hereunder, unless sooner terminated as provided herein.
ARTICLE II
DEFINITIONS
2. Wherever used in this Agreement, the following terms shall have the meanings
ascribed to them:
ECONOMIC DEVELOPMENT INCENTIVE - Page 2 51226
(a) “Appraised Value” shall have the same meaning assigned by Section 1.04
of the TAX CODE, as amended.
(b) “City” shall mean the City of Coppell, Texas.
(c) “Company” shall mean Texas Dugan Limited Partnership and permitted
assigns.
(d) “Completion of Construction” shall mean: (i) substantial completion of the
Improvements; and (ii) a final certificate of occupancy has been issued for The Container
Store occupancy of the Improvements.
(e) “Event of Bankruptcy or Insolvency” shall mean the dissolution or
termination of a party’s existence as a going business, insolvency, appointment of
receiver for any part of such party’s property and such appointment is not terminated
within ninety (90) days after such appointment is initially made, any general assignment
for the benefit of creditors, or the commencement of any proceeding under any
bankruptcy or insolvency laws by or against such party and such proceeding is not
dismissed within ninety (90) days after the filing thereof.
(f) “Force Majeure” shall mean any contingency or cause beyond the reasonable
control of a party including, without limitation, acts of God or the public enemy, war, riot,
civil commotion, insurrection, government or de facto governmental action (unless caused
by the intentionally wrongful acts or omissions of the party), fires, explosions or floods,
strikes, slowdowns or work stoppages.
(g) “Grants” shall collectively mean the Start Up Grant and the Improvement
Grant.
(h) “Improvements” shall mean an office and warehouse facility to be
constructed on the Land containing approximately 1.1 million square feet of space and other
ancillary facilities such as required parking and landscaping more fully described in the
submittals filed with the City.
(i) “Impositions” shall mean all taxes, including real estate and ad valorem
taxes, assessments, use and occupancy taxes, charges, excises, license and permit fees,
and other charges by public or governmental authority, general and special, ordinary and
extraordinary, foreseen and unforeseen, which are or may be assessed, charged, levied, or
imposed by any public or governmental authority on the Company or any property or any
business owned by Company within the City.
(j) “Land” means the real property described in Exhibit A attached hereto and
incorporated herein for all purposes.
(k) “Property” shall collectively mean the Land and the Improvements.
ECONOMIC DEVELOPMENT INCENTIVE - Page 3 51226
(l) “Required Use” shall mean the lease and occupancy of initially at least
640,000 square feet of space in the Improvements by The Container Store, Inc., and the
lease and occupancy of at least an additional 120,000 square feet of space in the
Improvements on or before the 31st month of the lease term under The Container Store,
Inc.’s lease for the Improvements, and the operation of an office, warehouse, distribution,
sales, storage and light assembly facility at the Improvements, by The Container Store, Inc.
or other tenant approved by the City. Thereafter Required Use shall mean the continuous
lease and occupancy of at least 720,000 square feet of space in the Improvements by The
Container Store, Inc., or other tenant approved by the City, and the continuous operation of
an office, warehouse, distribution, sales, storage and light assembly facility within such
space in the Improvements by The Container Store, Inc. or other tenant approved by the
City.
(m) “Sales Tax Receipts” shall mean the City’s receipts from the State of
Texas from the collection of the City’s one percent (1%) sales and use tax imposed by the
City pursuant to Chapter 321 of the Texas Tax Code (it being expressly understood that
the City’s sales and use tax receipts are being used only as a measurement for its
participation through the use of general funds), attributed to the collection of the City’s
one percent (1%) sales and use tax as a result of the sale to and purchase by Company of
Taxable Items consisting of interior building tenant finish out materials for the
Improvements that are consummated in the City. Sales Tax Receipts do not include any
sales and use tax imposed by City for the benefit of the Coppell Recreation Development
Corporation, pursuant to Section 4B of the Development Corporation Act of 1979, article
5190.6, Vernon’s Revised Civil Statutes, or sales and use tax imposed by the City for the
benefit of Coppell Education Development Corporation pursuant to Chapter 379 A of the
TEX. LOC. GOV’T CODE.
(n) “State of Texas” shall mean the office of the Texas Comptroller, or its
successor.
ARTICLE III
ECONOMIC DEVELOPMENT GRANT
3.1 Waiver of Building Permit Fees. Subject to the Company’s continued
satisfaction of the terms and conditions of this Agreement, the City shall provide to the Company
a waiver of fifty percent (50%) of the building permit fees associated with the construction of the
Improvements.
3.2 Detention Pond. Company agrees to construct a lined detention pond on the land
to maintain the water level in the detention pond at a level agreed to by the parties for aesthetic
appearances in accordance with engineering plans approved by the City. The City agrees to
supplement the water in the detention pond as necessary, not to exceed four (4) times per
calendar year (excluding the months of July and August) to maintain an agreed upon water level.
3.3 Start-Up Grant. Subject to the Company’s Required Use and continued
satisfaction of the terms and conditions of this Agreement, the City shall provide to Company
ECONOMIC DEVELOPMENT INCENTIVE - Page 4 51226
one economic development grant (the “Start-Up Grant”) in an amount equal to one hundred
percent (100%) of the Sales Tax Receipts for the twelve calendar months immediately following
the date of issuance of the first building permit for construction of the Improvements (the” Start-
Up Period”). The sale of Taxable items subject to the Start-Up Grant shall be for items directly
related to the interior building tenant finish out for the Improvements.
3.3.1 For purposes of Section 3.3, “Start-Up Sales Tax Certificate” shall mean a
certificate or other statement in a form reasonably acceptable to the City setting forth the City’s
receipts from the State of Texas from the collection of the City’s one percent (1%) sales and use
tax imposed by the City pursuant to Chapter 321 of the Texas Tax Code for the sale to and
purchase by Company of Taxable Items consisting of interior building tenant finish out materials
for the Improvements, that are consummated in the City during the Start-Up Period which are to
be used to determine the amount of the Start-Up Grant and to determine Company’s eligibility
for the Start-Up Grant, together with such supporting documentation, as City may reasonably
request. The Start-Up Sales Tax Certificate shall at a minimum contain and include or be
accompanied by the following:
a. A schedule detailing the amount of the City’s one percent (1%) sales and use tax
collected and paid to the State of Texas as a result of the sale to and purchase by
Company of Taxable Items consisting of interior building tenant finish out
materials for the Improvements, that are consummated in the City during the
Start-Up Period;
b. A copy of all sales and use tax returns and reports, sales and use tax prepayment
returns, direct payment permits and reports, including amended sales and use tax
returns or reports, filed by a company, business or other legal entity (the
Company’s Vendor) showing the City’s one percent (1%) sales and use tax
collected (including sales and use tax paid directly to the State of Texas pursuant
to a direct payment certificate) for the sale to and purchase by Company of
Taxable Items consisting of interior building tenant finish out materials for the
Improvements that are consummated in the City during the Start-Up Period;
c. A copy of all direct payment and self-assessment returns, including amended
returns, filed by Company’s Vendor during the Start-Up Period showing the
City’s one percent (1%) sales and use tax paid by Company for the purchase of
Taxable Items consisting of interior building tenant finish out materials for the
Improvements that are consummated in the City during the Start-Up Period;
d. Information concerning any refund or credit received by Company of the City’s
one percent (1%) sales or use taxes paid by Company (including any sales and use
tax paid directly to the State of Texas pursuant to a direct payment permit) which
has previously been reported by Company as sales and use tax paid or collected
during the Start-Up Period;
ECONOMIC DEVELOPMENT INCENTIVE - Page 5 51226
e. A schedule detailing the total of sales tax paid by Company for the purchase of
Taxable Items consisting of interior building tenant finish out materials for the
Improvements that are consummated in the City during the Start-Up Period.
City agrees to the extent allowed by law to maintain the confidentiality of the Start-Up Sales Tax
Certificate.
3.3.2 As a condition precedent to the payment of Start-Up Grant hereunder, City shall
have received a Start-Up Sales Tax Certificate from Company for the Start-Up Period.
3.3.3 Refunds. In the event the State of Texas determines that the City erroneously
received Sales Tax Receipts, or that the amount of Sales and Use Tax paid to the City exceeds the
correct amount of Sales and Use Tax applicable to the Start-Up Grant, the Company shall, within
thirty (30) days after receipt of notification thereof from the City specifying the amount by which
such Start-Up Grant exceeded the amount to which the Company was entitled pursuant to such State
of Texas determination, pay such amount to the City. As a condition precedent to payment of such
refund, the City shall provide Company with a copy of such determination by the State of Texas.
The provisions of this Section 3.3.3 shall survive termination of this Agreement.
3.3.4 Adjustments. In the event the Company’s Vendor files an amended sales and use
tax return, or report with the State of Texas, or if additional Sales and Use Tax is due and owing,
as determined or approved by the State of Texas, affecting Sales Tax Receipts for the Start-Up
Grant, the City shall pay any under payment of the Start-Up Grant, provided the City has
received Sales Tax Receipts attributed to such adjustment. As a condition precedent to payment
of such adjustment, the Company shall provide the City with a copy of any such Company’s
Vendor amended sales and use tax report or return, and the approval thereof by the State of
Texas. The provisions of this Section 3.3.4 shall survive termination of this Agreement.
3.3.5 Company shall provide the City with the Start-Up Sales Tax Certificate within
thirty (30) days after the expiration of the Start-Up Period. The Start-Up Grant shall be paid
within one hundred twenty (120) days following the City receipt of the Start-Up Sales Tax
Certificate required in this Section 3.3.1.
3.3.6 Current Revenue. The Start-Up Grant made hereunder shall be paid from current
revenue from available funds that have been appropriated by the City. Under no circumstances
shall City’s obligations hereunder be deemed to create any debt within the meaning of any
constitutional or statutory provision. Further, the City shall not be obligated to pay any
commercial bank, lender or similar institution for any loan or credit agreement made by the
Company. None of the City’s obligations with respect to the Start-Up Grant under this
Agreement shall be pledged or otherwise encumbered in favor of any commercial lender and/or
similar financial institution.
3.3.7 Start-Up Grant Limitation. Under no circumstances shall City be obligated to
pay the Start-Up Grant unless there is available Sales Tax Receipts and not until receipt of the
Start-Up Sales Tax Certificate for the Start-Up Period. City shall not be required to provide the
Start-Up Grant unless the City has received the Sales Tax Receipts for the Start-Up Period
ECONOMIC DEVELOPMENT INCENTIVE - Page 6 51226
attributed to the sale to and purchase by Company of Taxable Items consisting of interior tenant
finish-out materials for the Improvements that are consummated in the City during the Start-Up
Period.
3.4 Improvement Grant. Subject to the Company’s Required Use and continued
satisfaction of the terms and conditions of this Agreement, the City shall provide Company annual
economic development grants for five (5) consecutive tax years in an amount equal to eighty-five
percent (85%) of the property taxes assessed by the City against the Improvements for the
applicable tax year (the “Improvement Grant”). For purpose of calculating the amount of an
Improvement Grant the certified Appraised Value of the Improvements, as determined by the
central appraisal district, shall by multiplied by the City’s tax rate for the applicable year. The
Improvement Grants are based on the applicable property taxes for tax years 2010-2014, and shall
be paid on April 1 of each calendar year following the end of the applicable tax year beginning
April 1, 2011. In the event the Company properly protests or contests the Appraised Value and/or
the property taxes for the Improvements the City’s obligation to provide the Improvement Grant
with respect to such tax year shall be abated until a final determination has been made of such
protest or contest. Company shall notify the City in writing in the event of such Company protest or
contest. In the event a Company protest, motion or contest of the Appraised Value or taxation of
the Improvements results in a final determination that changes the Company’s tax liability for the
Improvements after an Improvement Grant has been paid for such tax year, the Improvement
Grant for the succeeding tax year shall be adjusted accordingly, or if there are no further
Improvement Grants to be paid, the City shall, within thirty (30) days, after such final
determination, pay any underpayment of the Improvement Grant to Company, and Company
shall within the same period pay any over payment of the Improvement Grant to the City. In the
event the City determines in its sole discretion that the City incorrectly paid to the Company an
Improvement Grant, the Company shall, within thirty (30) days after receipt of notification thereof
from the City specifying the amount by which such Improvement Grant exceeded the correct
amount to which the Company was entitled, pay such amount to the City. As a condition precedent
to the City’s obligation to pay each Improvement Grant, the Company shall have paid in full,
without protest, the property taxes assessed by the City against the Improvements for such tax year.
The City shall have no obligation to pay any Improvement Grant for any tax year for which the
Company has not paid in full the property taxes assessed against the Improvements. The provisions
of this Section 3.4 relating to the obligation of the City and Company to pay any over or under
payment of an Improvement Grant shall survive termination of this Agreement.
ARTICLE IV
CONDITIONS TO GRANTS
Company shall during the term of this Agreement strictly comply and satisfy each of the
following conditions.
4.1 The Company agrees to cause Completion of Construction of the Improvements
and to lease the Improvements to The Container Store, Inc. on or before December 31, 2004.
Company shall initially lease at least 640,000 square feet of space in the Improvements; and shall
lease an additional 120,000 square feet of space in the Improvements on or before the 31st month
of the lease term of The Container Store, Inc.’s lease for the Improvements.
ECONOMIC DEVELOPMENT INCENTIVE - Page 7 51226
4.2 Company shall not have an uncured breach or default of this Agreement.
4.3 During the term of this Agreement following the issuance of a final certificate of
occupancy for The Container Store, Inc.’s occupancy of the Improvements and continuing
thereafter until termination of this Agreement to continuously lease the Improvements to The
Container Store, Inc. or other tenant approved by the City; and that the Property shall not be used
for any purpose other than the Required Use.
ARTICLE V
TERMINATION
5.1 This Agreement shall terminate upon any one of the following:
(a) by written agreement of the parties;
(b) expiration of the Term;
(c) by either party in the event the other party breaches any of the terms or
conditions of this Agreement and such breach is not cured within thirty
(30) days after written notice thereof;
(d) by City, if Company suffers an Event of Bankruptcy or Insolvency; and
(e) by City, if any Impositions owed to the City or the State of Texas by
Company shall become delinquent (provided, however the Company retains
the right to timely and properly protest and contest any such Impositions).
ARTICLE VI
MISCELLANEOUS
6.1 Binding Agreement. The terms and conditions of this Agreement are binding
upon the successors and permitted assigns of the parties hereto. This Agreement may not be
assigned without the express written consent of the City Manager, except that Company may
upon ten (10) days prior written notice to City assign this Agreement without the consent of the
City Manager to Duke-Realty Limited Partnership in connection with the sale and transfer of the
Land and Improvements to Duke-Realty Limited Partnership.
6.2 Limitation on Liability. It is understood and agreed between the parties that the
Company, in satisfying the conditions of this Agreement, have acted independently, and the City
assumes no responsibilities or liabilities to third parties in connection with these actions. The
Company agrees to indemnify and hold harmless the City from all such claims, suits, and causes
of actions, liabilities and expenses, including reasonable attorney’s fees, of any nature
whatsoever by a third party arising out of the Company’s performance of the conditions under
this Agreement, excluding actions of third parties with whom Company has not contracted with
or whom are not injured on the Land or within the Improvements.
6.3 No Joint Venture. It is acknowledged and agreed by the parties that the terms
hereof are not intended to and shall not be deemed to create a partnership or joint venture among
the parties.
ECONOMIC DEVELOPMENT INCENTIVE - Page 8 51226
6.4 Authorization. Each party represents that it has full capacity and authority to
grant all rights and assume all obligations that are granted and assumed under this Agreement.
6.5 Notice. Any notice required or permitted to be delivered hereunder shall be
deemed received three (3) days thereafter sent by United States Mail, postage prepaid, certified
mail, return receipt requested, addressed to the party at the address set forth below or on the day
actually received if sent by courier or otherwise hand delivered.
If intended for City, to:
Attn: City Manager
City of Coppell, Texas
255 Parkway Boulevard
P.O. Box 9478
Coppell, Texas 75019
With a copy to:
Peter G. Smith
Nichols, Jackson, Dillard,
Hager & Smith, L.L.P.
1800 Lincoln Plaza
500 North Akard
Dallas, Texas 75201
If intended for the Company:
Attn: Jeff Turner
Texas Dugan Limited Partnership
5495 Beltline Road
Suite 360
Dallas, Texas 75240
With a copy to:
Corporate Attorney (Texas Market)
Duke Realty Corporation
3950 Shackleford Road
Suite 300
Duluth, GA 30096
6.6 Entire Agreement. This Agreement is the entire Agreement between the parties
with respect to the subject matter covered in this Agreement. There is no other collateral oral or
written Agreement between the parties that in any manner relates to the subject matter of this
Agreement, except as provided in any Exhibits attached hereto.
ECONOMIC DEVELOPMENT INCENTIVE - Page 9 51226
6.7 Governing Law. The Agreement shall be governed by the laws of the State of
Texas; and venue for any action concerning this Agreement shall be in the State District Court of
Dallas County, Texas.
6.8 Amendment. This Agreement may only be amended by the mutual written
agreement of the parties.
6.9 Legal Construction. In the event any one or more of the provisions contained in
this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention
of the parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or
unenforceable, a provision shall be added to this Agreement which is legal, valid and enforceable
and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable.
6.10 Recitals. The recitals to this Agreement are incorporated herein.
6.11 Counterparts. This Agreement may be executed in counterparts. Each of the
counterparts shall be deemed an original instrument, but all of the counterparts shall constitute one
and the same instrument.
6.12 Exhibits. All exhibits to this Agreement are incorporated herein by reference for
all purposes wherever reference is made to the same.
6.13 Survival of Covenants. Any of the representations, warranties, covenants, and
obligations of the parties, as well as any rights and benefits of the parties, pertaining to a period
of time following the termination of this Agreement shall survive termination.
EXECUTED on this _______ day of _____________________, 2002.
CITY OF COPPELL, TEXAS
By:
CANDY SHEEHAN, MAYOR
ATTEST:
By:
LIBBY BALL, CITY SECRETARY
ECONOMIC DEVELOPMENT INCENTIVE - Page 10 51226
APPROVED AS TO FORM:
By:
PETER G. SMITH
(Ed. 12/02/02)
EXECUTED this the _________ day of ______________________, 2002.
TEXAS DUGAN LIMITED PARTNERSHIP,
a Delaware limited partnership
By: Dugan General Partnership, LLC, a
Delaware limited liability company, its
general partner
By: Dugan Texas, LLC, a Delaware limited
liability company, its sole member
By: Duke Realty Limited Partnership, an Indiana
limited partnership, its Manager
By: Duke Realty Corporation, an Indiana
corporation, its sole general partner
By: _______________________________________
JEFF TURNER
SENIOR VICE PRESIDENT, TEXAS
ECONOMIC DEVELOPMENT INCENTIVE - Page 11 51226
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
ECONOMIC DEVELOPMENT INCENTIVE - Page 12 51226
COMPANY’S ACKNOWLEDGMENT
STATE OF _______________ §
§
COUNTY OF _____________ §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by Jeff Turner, Senior Vice President, Texas of Duke Realty Corporation, an Indiana
corporation on behalf of Texas Dugan Limited Partnership.
Notary Public, State of ___________
My Commission expires:
EXHIBIT “A”
LEGAL DESCRIPTION OF LAND
DEPT: Planning and Economic Development
DATE: December 10, 2002
ITEM #: 10/I
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of a Resolution approving a Tax Abatement Agreement between the City of
Coppell and Washington Mutual Bank, FA, and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY: The Economic Development Committee recommended approval of this item by
unanimous vote on August 7, 2002.
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: $ Wash Mutual-1AR
1 52406
RESOLUTION NO. ________________
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, APPROVING THE
TERMS AND CONDITIONS OF A TAX ABATEMENT AGREEMENT BY AND
BETWEEN THE CITY OF COPPELL, TEXAS AND THE WASHINGTON MUTUAL
BANK, FA; AUTHORIZING ITS EXECUTION BY THE MAYOR; AND PROVIDING AN
EFFECTIVE DATE.
WHEREAS, the City Council has been presented a proposed Tax Abatement Agreement by
and between the City of Coppell, Texas and Washington Mutual Bank, FA, a copy of which is
attached hereto and incorporated herein by reference; and
WHEREAS, upon full review and consideration of the Agreement, and all matters related
thereto, the City Council is of the opinion and finds that the terms and conditions thereof should be
approved, and that the Mayor should be authorized to execute the Agreement on behalf of the City
of Coppell, Texas;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS, THAT:
SECTION 1.The Agreement attached hereto having been reviewed by the City Council of
the City of Coppell, Texas, and found to be acceptable and in the best interest of the City and its
citizens, be, and the same is hereby, in all things approved, and the Mayor is hereby authorized to
execute the Agreement on behalf of the City of Coppell, Texas.
SECTION 2.The City Council finds that the improvements proposed to be built upon the
Premises described in the Agreement will enhance the economic vitality of the community through
a combination of new capital investment, increased sales tax revenues, and the creation of additional
job opportunities.
SECTION 3.The tax abatement to be granted by the Agreement will not include
inventory, and supplies.
SECTION 4.The improvements proposed for the Premises will accomplish the tax
abatement guidelines of the City of Coppell, Texas.
2 52406
SECTION 5.The City Manager delivered to the presiding officer of the governing body of
each taxing unit in which the property subject to the Agreement is located, a written notice that the
City of Coppell, Texas, intends to enter into the Agreement. The notice given by the City Manager
included a copy of the Agreement approved by this Resolution.
SECTION 6.This Resolution and the Tax Abatement Agreement are hereby approved by
the affirmative vote of the majority of the members of the City Council of the City of Coppell,
Texas, at a regularly scheduled meeting of the City Council.
SECTION 7.This Resolution shall become effective immediately from and after its
passage.
DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell, Texas,
on this the ______ day of ________________, 2002.
CITY OF COPPELL, TEXAS
___________________________________________
CANDY SHEEHAN, MAYOR
ATTEST:
___________________________________________
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
____________________________________
ROBERT E. HAGER, CITY ATTORNEY
(PGS/tc 12/04/02)
TAX ABATEMENT AGREEMENT - Page 1 52360
STATE OF TEXAS §
§ TAX ABATEMENT AGREEMENT
COUNTY OF DALLAS §
This tax abatement agreement (the “Agreement”) is entered into by and between the City of
Coppell, Texas (the “City”), duly acting herein by and through its Mayor and Washington Mutual
Bank, FA (“Owner”) acting by and through its authorized officer.
W I T N E S S E T H:
WHEREAS, the City Council of the City of Coppell, Texas, (the “City”), passed an
Ordinance (the “Ordinance”) establishing Tax Abatement Reinvestment Zone No. 28 (the “Zone”),
for commercial/industrial tax abatement, as authorized by the Property Redevelopment and Tax
Abatement Act, Chapter 312 of the Texas Tax Code, as amended (the “Tax Code”); and
WHEREAS, the City has adopted guidelines for tax abatement (the “Tax Abatement
Guidelines”); and
WHEREAS, the Tax Abatement Guidelines contain appropriate guidelines and criteria
governing tax abatement agreements to be entered into by the City as contemplated by the Tax
Code; and
WHEREAS, the City has adopted a resolution stating that it elects to be eligible to
participate in tax abatement; and
WHEREAS, in order to maintain and enhance the commercial and industrial economic and
employment base of the Coppell area, it is in the best interests of the taxpayers for the City to enter
into this Agreement in accordance with said Ordinance, the Tax Abatement Guidelines and the Tax
Code; and
WHEREAS, Owner has or intends to lease approximately 50,000 square feet of certain
improvements located at 555 Dividend Drive, Coppell, Texas in the Gateway Corporate Center
(hereinafter defined as the “Improvements”) and intends to locate Tangible Personal Property
(hereinafter defined) at the Improvements; and
WHEREAS, the City previously entered into that certain tax abatement agreement with
Catellus Development Corporation for the Improvements dated December 14, 2000; and
WHEREAS, the development efforts described herein will create permanent new jobs in
the City; and
WHEREAS, the City Council finds that the contemplated use of the Improvements and the
contemplated Tangible Personal Property to be added to the Improvements, and the other terms
hereof are consistent with encouraging development of the Zone in accordance with the purposes
for its creation and/or in compliance with the Tax Abatement Guidelines, the Ordinance adopted by
the City, the Tax Code and all other applicable laws; and
TAX ABATEMENT AGREEMENT - Page 2 52360
WHEREAS, the City Council finds that the Improvements and the Tangible Personal
Property sought are feasible and practicable and would be of benefit to the Premises (hereinafter
defined) to be included in the Zone and to the City after expiration of this Agreement; and
WHEREAS, a copy of this Agreement has been furnished, in the manner prescribed by the
Tax Code, to the presiding officers of the governing bodies of each of the taxing units in which the
Premises is located; and
WHEREAS, the City desires to enter into an agreement with Owner, the proposed lessee of
the Improvements, and the owner or lessee, of Tangible Personal Property to be added to the
Premises within the Zone for the abatement of taxes pursuant to the Tax Code as amended;
NOW, THEREFORE, in consideration of the mutual benefits and promises contained
herein and for good and other valuable consideration, the adequacy and receipt of which is hereby
acknowledged, including the expansion of primary employment, the attraction of major investment
in the Zone, which contributes to the economic development of Coppell and the enhancement of the
tax base in the City, the parties agree as follows:
GENERAL PROVISIONS
1. Owner is the lessee or intends to lease the Improvements located on the Land
(hereinafter defined), which Land is located within the City and the Zone; and intends to locate and
maintain Tangible Personal Property in the Improvements.
2. The Premises are not in an improvement project financed by tax increment bonds.
3. This Agreement is entered into subject to the rights of the holders of outstanding
bonds of the City.
4. The Premises are not owned or leased by any member of the Coppell City Council
or any member of the Coppell Planning and Zoning Commission, or any member of the governing
body of any taxing units joining in or adopting this Agreement.
TAX ABATEMENT AUTHORIZED
5. This Agreement is authorized by the Tax Code and in accordance with the Tax
Abatement Guidelines, and approved by resolution of the City Council of the City authorizing the
execution of this Agreement.
6. Subject to the terms and conditions of this Agreement, and provided the Taxable
Value (hereinafter defined) of the Tangible Personal Property is at least Five Million Five Hundred
Thousand Dollars ($5,500,000) as of the First Year of Abatement and as of January 1 of each
calendar year thereafter that this Agreement is in effect, the City hereby grants Owner an abatement
of seventy-five percent (75%) of the Taxable Value of the Tangible Personal Property for a period
of five (5) consecutive years. The actual percentage of the Taxable Value of the Tangible Personal
TAX ABATEMENT AGREEMENT - Page 3 52360
Property subject to abatement will apply only to the tangible personal property, (excluding
inventory and supplies) located on the Premises. The actual percentage of the Taxable Value
subject to abatement does not apply to tangible personal property, inventory and supplies that were
located on the Premises at any time before January 1, 2002, the period covered by this Agreement.
7. The period of tax abatement herein authorized shall be for a period of five (5) years.
The term of this Agreement shall begin on the last date of execution hereof (“Effective Date”) and
continue until December 31 of the fifth (5th) year following the First Year of Abatement, unless
sooner terminated as provided herein.
8. During the period of tax abatement herein authorized, Owner shall be subject to all
City taxation not abated, including but not limited to, sales tax and ad valorem taxation on land,
inventory and supplies.
DEFINITIONS
9. Wherever used in this Agreement, the following terms shall have the meanings
ascribed to them:
A. “Base Year” shall mean the year in which this Agreement is executed
(2002).
B. “Event of Bankruptcy or Insolvency” shall mean the dissolution or
termination of a party’s existence as a going business, insolvency, appointment of
receiver for any part of a party’s property and such appointment is not terminated within
ninety (90) days after such appointment is initially made, any general assignment for the
benefit of creditors, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against a party and such proceeding is not dismissed within ninety
(90) days after the filing thereof.
C. “First Year of Abatement” shall mean January 1 of the calendar year
immediately following the issuance of the final certificate of occupancy for Owner’s
occupancy of the Improvements.
D. “Force Majeure” shall mean any contingency or cause beyond the reasonable
control of Owner including, without limitation, acts of God or the public enemy, war, riot,
civil commotion, insurrection, adverse weather, government or de facto governmental action
(unless caused by acts or omissions of Owner), fires, explosions or floods, strikes,
slowdowns or work stoppages.
E. “Improvements” shall mean approximately 50,000 square feet of office
space in the Gateway Corporate Center located at 555 Dividend Drive, Coppell, Texas,
located on the Land and as further described herein.
F. “Land” shall mean the real property described in Exhibit “A” attached hereto
and incorporated herein for all purposes.
TAX ABATEMENT AGREEMENT - Page 4 52360
G. “Premises” shall collectively mean the Land and Improvements but
excluding the Tangible Personal Property.
H. “Taxable Value” means the appraised value as certified by the Appraisal
District as of January 1 of a given year.
I. “Tangible Personal Property” shall mean tangible personal property,
equipment and fixtures, excluding inventory and supplies, owned or leased by Owner
that is located on the Premises. Tangible Personal Property does not include any tangible
personal property that was located on the Premises at any time before January 1, 2002,
the period covered by this Agreement .
IMPROVEMENTS
10. Owner has leased or intends to lease approximately 50,000 square feet of office and
warehouse space in the Gateway Corporate Center located at 555 Dividend Drive, Coppell, Texas
(the “Improvements”) for a period of at least five (5) years beginning the First Year of Abatement.
Owner agrees to locate and maintain Tangible Personal Property at the Improvements with a
Taxable Value of at least Five Million Five Hundred Thousand Dollars ($5,500,000) as of the First
Year of Abatement and as of January 1, of each calendar year thereafter that this Agreement is in
effect. Nothing in this Agreement shall obligate Owner to lease the Improvements on the Land, or
to locate Tangible Personal Property at the Improvements, but said actions are conditions precedent
to tax abatement pursuant to this Agreement.
OCCUPANCY OF IMPROVEMENTS
11. As a condition precedent to the initiation of tax abatement pursuant to this
Agreement, Owner will diligently and faithfully, in good and workmanlike manner, and pursue the
occupancy of the Improvements on or before December 31, 2002, as good and valuable
consideration for this Agreement, provided, that Owner shall have such additional time to occupy
the Improvements as may be required in the event of “Force Majeure,” if Owner is diligently and
faithfully pursuing occupy of the Improvements.
12. Owner agrees to maintain the Improvements during the term of this Agreement in
accordance with all applicable state and local laws, codes, and regulations. Owner agrees that the
Improvements shall be used only as an office/loan servicing facility for a period of five (5) years
commencing on the First Year of Abatement.
13. The City, its agents and employees shall have the right of access to the
Improvements during the term of this Agreement to inspect the Improvements at reasonable times
and with reasonable notice to Owner, and in accordance with Owner’s visitor access and security
policies, in order to insure that the Improvements are being used in accordance with this Agreement
and all applicable state and local laws and regulations (or valid waiver thereof).
TAX ABATEMENT AGREEMENT - Page 5 52360
GENERAL REQUIREMENTS
14 Owner shall, prior to May 31 of each calendar year that this Agreement is in effect,
certify to the City that it is in compliance with each term of the Agreement.
15. Owner agrees that during the term of this Agreement that the Improvements shall be
used in the manner (i) that is consistent with the City’s Comprehensive Zoning Ordinance, as
amended, and (ii) that, during the period taxes are abated hereunder, is consistent with the general
purposes of encouraging development or redevelopment within the Zone.
16. Owner agrees to continuously lease and occupy at least 50,000 square feet of space
in the Improvements for a period of five (5) years commencing the First Year of Abatement. During
the term of this Agreement, Owner agrees, commencing on the date a certificate of occupancy is
issued for Owner’s occupancy of the Improvements and continuing thereafter until termination of
this Agreement, to continuously operate thereon Washington Mutual’s National Operations Center
that will process and collect payments, perform asset management and provide related commercial
loan services in connection with a portfolio of commercial mortgage loans owned by Washington
Mutual and serviced for others. Owner agrees during the term of this Agreement to maintain
continuous membership in the Coppell Chamber of Commerce.
DEFAULT: RECAPTURE OF TAX REVENUE
17. In the event Owner: (i) fails to occupy the Improvements in accordance with this
Agreement or in accordance with applicable State or local laws, codes or regulations; (ii) has
delinquent ad valorem or sales taxes owed to the City (provided such party retains its right to timely
and properly protest such taxes or assessment); (iii) has an “Event of Bankruptcy or Insolvency”;
or (iv) breaches any of the terms and conditions of this Agreement, then such Owner, after the
expiration of the notice and cure periods described below, shall be in default of this Agreement. As
liquidated damages in the event of such default, the Owner shall, within thirty (30) days after
demand, pay to the City all taxes which otherwise would have been paid to the City without benefit
of a tax abatement with interest at the statutory rate for delinquent taxes as determined by Section
33.01 of the Tax Code as amended but without penalty. The parties acknowledge that actual
damages in the event of default termination would be speculative and difficult to determine. The
parties further agree that any abated tax, including interest as a result of this Agreement, shall be
recoverable against the Owner, its successors and assigns and shall constitute a tax lien on the
Tangible Personal Property and shall become due, owing and shall be paid to the City within thirty
(30) days after termination.
18. Upon breach by Owner of any obligations under this Agreement, the City shall
notify Owner in writing, who shall have thirty (30) days from receipt of the notice in which to cure
any such default. If the default cannot reasonably be cured within a thirty (30) day period, and
Owner has diligently pursued such remedies as shall be reasonably necessary to cure such default,
then the City may extend the period in which the violation must be cured.
TAX ABATEMENT AGREEMENT - Page 6 52360
19. If Owner fails to cure the default within the time provided as specified above or, as
such time period may be extended, then the City at its sole option shall have the right to terminate
this Agreement by written notice to Owner.
20. Upon termination of this Agreement by City, all tax abated as a result of this
Agreement shall become a debt to the City as liquidated damages, and shall become due and
payable not later than thirty (30) days after a notice of termination is made. The City shall have all
remedies for the collection of the abated tax provided generally in the Tax Code for the collection of
delinquent property tax. The City at its sole discretion has the option to provide a repayment
schedule. The computation of the abated tax for the purposes of the Agreement shall be based upon
the full Taxable Value of the Tangible Personal Property without tax abatement for the years in
which tax abatement hereunder was received by Owner with respect to the Tangible Personal
Property as determined by the Appraisal District, multiplied by the tax rate of the years in question,
as calculated by the City Tax Assessor-Collector. The liquidated damages shall incur penalties as
provided for delinquent taxes and shall commence to accrue after expiration of the thirty (30) day
payment period.
ANNUAL APPLICATION FOR TAX EXEMPTION
21. It shall be the responsibility of Owner pursuant to the Tax Code to file an annual
exemption application form with the Chief Appraiser for each Appraisal District in which the
eligible taxable property has situs. A copy of the exemption application shall be submitted to the
City upon request.
SUCCESSORS AND ASSIGNS
22. This Agreement shall be binding on and inure to the benefit of the parties to it and
their respective heirs, executors, administrators, legal representatives, successors, and assigns. This
Agreement may not be assigned without the consent of the City Manager, except that this
Agreement may be assigned upon ten (10) days prior notice to City by Owner to any related
corporation or other legal entity which controls Owner, is controlled by Owner, or successor entity
into which or with which Owner is merged or consolidated or which acquires substantially all of
Owner’s assets in property, provided that such successor entity of Owner assumes the obligations of
the Owner. For purposes of this section “control” shall mean ownership of not less than fifty
percent (50%) of all voting stock or legal and equitable interest in such corporation or entity. After
any permitted assignment, all references to Owner herein shall thereafter be a reference to Owner’s
successor with respect to any obligations or liabilities occurring or arising after the date of such
assignment.
NOTICE
23. All notices required by this Agreement shall be addressed to the following, or other
such other party or address as either party designates in writing, by certified mail, postage prepaid,
or by hand or overnight delivery:
TAX ABATEMENT AGREEMENT - Page 7 52360
If intended for Owner, to:
Attn: Corporate Property Services Manager
Washington Mutual Bank, FA
1111 Third Avenue
Suite 2900
Seattle, Washington 98101
If intended for City, to:
Attn: City Manager
City of Coppell, Texas
P. O. Box 478
Coppell, Texas 75019
With copy to:
Peter G. Smith
Nichols, Jackson, Dillard, Hager & Smith, L.L.P.
1800 Lincoln Plaza
500 N. Akard
Dallas, Texas 75201
CITY COUNCIL AUTHORIZATION
24. This Agreement was authorized by resolution of the City Council approved by its
Council meeting authorizing the Mayor to execute this Agreement on behalf of the City.
SEVERABILITY
25. In the event any section, subsection, paragraph, sentence, phrase or word herein is
held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be
enforceable and shall be read as if the parties intended at all times to delete said invalid section,
subsection, paragraph, sentence, phrase or word.
APPLICABLE LAW
26. This Agreement shall be construed under the laws of the State of Texas. Venue for
any action under this Agreement shall be the State District Court of Dallas County, Texas. This
Agreement is performable in Dallas County, Texas.
COUNTERPARTS
27. This Agreement may be executed in any number of counterparts, each of which shall
be deemed an original and constitute one and the same instrument.
TAX ABATEMENT AGREEMENT - Page 8 52360
ENTIRE AGREEMENT
28. This Agreement embodies the complete agreement of the parties hereto, superseding
all oral or written previous and contemporary agreements between the parties and relating to the
matters in this Agreement, and except as otherwise provided herein cannot be modified without
written agreement of the parties to be attached to and made a part of this Agreement.
RECORDATION OF AGREEMENT
29. A certified copy of this Agreement shall be recorded in the Deed Records of Dallas
County, Texas.
INCORPORATION OF RECITALS
30. The determinations recited and declared in the preambles to this Agreement are
hereby incorporated herein as part of this Agreement.
EXHIBITS
31. All exhibits to this Agreement are incorporated herein by reference for all purposes
wherever reference is made to the same.
32. This Agreement and the tax abatement provided herein is expressly subject to
Owner entering into a lease of the Improvements prior to December 31, 2002.
FUTURE EXPANSION
33. The City agrees by separate tax abatement agreement to grant Owner a tax
abatement for a period of five (5) consecutive years of seventy-five percent (75%) of the Taxable
Value of tangible personal property, other than inventory and supplies, to be located in the
Owner’s contemplated future expansion consisting of the lease and occupancy of at least an
additional 25,000 square feet of office space on the Premises or on land adjacent to the Premises
(the “Expansion”) and to grant the then owner of the land and improvements comprising the
Expansion an abatement for a period of five (5) consecutive years of Seventy-Five percent (75%)
of the Taxable Value of the improvements comprising the Expansion, provided: (i) Owner is not
then in default or breach of this Agreement; (ii) a certificate of occupancy for Owner’s
Expansion occurs on before October 1, 2006; and (ii) the combined Taxable Value of the
improvements and the tangible personal property, other than inventory and supplies comprising
the Expansion, is at least $5.5 Million Dollars.
EXECUTED in duplicate originals this the ____ day of ________, 2002.
CITY OF COPPELL, TEXAS
TAX ABATEMENT AGREEMENT - Page 9 52360
By: ______________________________________
CANDY SHEEHAN, MAYOR
ATTEST:
By: _______________________________________
LIBBY BALL, CITY SECRETARY
AGREED AS TO FORM:
By:
ROBERT E. HAGER, CITY ATTORNEY
EXECUTED in duplicate originals this the ____ day of ________, 2002.
WASHINGTON MUTUAL BANK, FA
By: _______________________________________
Name: _____________________________________
Title: ______________________________________
TAX ABATEMENT AGREEMENT - Page 10 52360
CITY’S ACKNOWLEDGMENT
STATE OF TEXAS §
§
COUNTY OF DALLAS §
This instrument was acknowledged before me on the _____ day of _______________,
2002, by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of
said municipality.
___________________________________
Notary Public, State of Texas
My Commission Expires:
_________________________
TAX ABATEMENT AGREEMENT - Page 11 52360
OWNER’S ACKNOWLEDGMENT
STATE OF ________________ §
§
COUNTY OF ______________ §
This instrument was acknowledged before me on the _______ day of ___________,
2002, by _______________________ being the _______________________ of Washington
Mutual Bank, FA, on behalf of said corporation.
Notary Public, State of ___________
My Commission Expires:
EXHIBIT “A”
LEGAL DESCRIPTION OF LAND
DEPT: Library
DATE: December 10, 2002
ITEM #: 10/J
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of the Interlocal Cooperation Agreement to promote Library Services to Denton County
Residents, for which the city will be compensated $10,784 for fiscal year 02/03 and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: +Interlocal1-Agenda Request
Memorandum
To:Mayor and City Council
From:Kathleen P. Metz Edwards, Library Director
Date:December 10, 2002
Subject:Denton County Library Advisory Board Interlocal Agreement
In February, the City of Coppell was invited to join the fourteen other Denton County
Libraries and become a member of the Denton County Library Advisory Board. The
City accepted and completed the "Minimum Criteria and Request for Funding"
application which was signed by the City Manager on February 27, 2002. Applications
were sent to the Denton County Commissioners Court for review. The Court approved a
base grant of $10,000 for each library plus $1.25 per Denton County capita. The Court
used the Council of Government figures plus a division of population not served by a
library to determine the per capita amount. The Library will receive a total of $10,000 in
matching funds and $784.00 in per capita funds. The Court requires the City to sign the
attached Interlocal Cooperation Agreement For Library Services. After receiving the
signed agreement, it will be placed on the agenda for Commissioners Court so that the
court can execute its portion of the agreement.
The Court also requires maintenance of effort from the library and uses the same report
that we submit to the Texas State Library and Archives Commission at the close of the
fiscal year to document that effort for our NETLS membership. The City's maintenance
of effort contribution to the library is its approved FY 02/03 budget. No additional
funding is required. Matching funds will be requested after the City receives the
executed agreement.
As a condition of accepting the funding, the City agrees to provide library service to any
resident of Denton County. We have already agreed to provide service to any resident of
Texas as a condition for receiving the Lone Star Libraries Grant from the Texas State
Library and Archives Commission. There are libraries in Denton County, which are not
full member of Lone Star Libraries. Our citizens would gain access to those libraries as
well as to all the other Denton County Libraries.
By accepting the funding, the library commits to attend 10 meetings per year and to
complete the annual application. We can meet this commitment and with tightening
budgets, the $10,784.00 in revenue will be put to good use.
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
1
STATE OF TEXAS, )
)
COUNTY OF DENTON )
INTERLOCAL COOPERATION AGREEMENT
FOR LIBRARY SERVICES
THIS AGREEMENT is made and entered into by and between
Denton County, a political subdivision of Texas, hereinafter
referred to as "COUNTY," and the City of Coppell, a municipality
of Denton County, Texas, hereinafter referred to as
"MUNICIPALITY."
WHEREAS, COUNTY is a duly organized political subdivision of
the State of Texas engaged in the administration of COUNTY
government and related services for the benefit of the citizens
of Denton County; and
WHEREAS, the City of Coppell is a duly organized
MUNICIPALITY of Denton County, Texas engaged in the provision of
library service and related services for the benefit of the
citizens of MUNICIPALITY; and
WHEREAS, COUNTY has requested and MUNICIPALITY has agreed to
provide library services for all residents of Denton County; and
WHEREAS, COUNTY and MUNICIPALITY mutually desire to be
subject to the provisions of V.T.C.A., Government Code Chapter
791, the Interlocal Cooperation Act; and V.T.C.A., Local
Government Code Chapter 323, COUNTY Libraries.
NOW, THEREFORE, COUNTY and MUNICIPALITY, for the mutual
consideration hereinafter stated, agree and understand as
follows:
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
2
I.
The term of this agreement shall be for the period from
October 1, 2002 through September 30, 2003.
II.
For the purposes and consideration herein stated and
contemplated, MUNICIPALITY shall provide library services for the
residents of COUNTY without regard to race, religion, color, age,
disability and/or national origin. Upon proper proof by
individual(s) of residence in Denton County, Texas, such
individual(s) shall be entitled to be issued, at no cost, a
library card to be used in connection with said library services.
MUNICIPALITY shall develop and maintain through the Library
one or more of the following programs of service:
Educational and reading incentive programs and
materials for youth.
Functional literacy materials and/or tutoring programs
for adults.
Job training/career development programs and/or
materials for all ages.
Outreach services to eliminate barriers to library
services.
Educational programs designed to enhance quality of
life for adults.
III.
COUNTY designates the County Judge to act on behalf of
COUNTY and serve as liaison officer for COUNTY with and between
COUNTY and MUNICIPALITY. The County Judge or his designated
substitute shall insure the performance of all duties and
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
3
obligations of COUNTY herein stated and shall devote sufficient
time and attention to the execution of said duties on behalf of
COUNTY in full compliance with the terms and conditions of this
agreement, and shall provide immediate and direct supervision of
COUNTY's employees, agents, contractors, sub-contractors, and/or
laborers, if any, in the furtherance of the purposes, terms and
conditions of this agreement for the mutual benefit of COUNTY and
MUNICIPALITY.
IV.
MUNICIPALITY shall designate Kathleen P. Metz Edwards to
act on behalf of MUNICIPALITY and to serve as liaison officer of
MUNICIPALITY with and between MUNICIPALITY and COUNTY to insure
the performance of all duties and obligations of MUNICIPALITY as
herein stated and shall devote sufficient time and attention to
the execution of said duties on behalf of MUNICIPALITY in full
compliance with the terms and conditions of this agreement, and,
shall provide management of MUNICIPALITY's employees, agents,
contractors, sub-contractors, and/or laborers, if any, in the
furtherance of the purposes, terms and conditions of this
agreement for the mutual benefit of MUNICIPALITY and COUNTY.
MUNICIPALITY shall provide to COUNTY a copy of the annual
report submitted to the Texas State Library and shall respond to
COUNTY's annual questionnaire as documentation of expenditures
and provision of service.
V.
The MUNICIPALITY shall be solely responsible for all
techniques, sequences, procedures, and means and for the
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
4
coordination of all work performed under the terms and conditions
of this agreement, shall insure, dedicate and devote the full
time and attention of those employees necessary for the proper
execution and completion of the duties and obligations of the
MUNICIPALITY stated in this agreement and give all attention
necessary for such proper supervision and direction.
VI.
The MUNICIPALITY agrees that its library department shall
assume the functions of a COUNTY library and agrees to provide a
librarian who holds or secures a COUNTY librarian's certificate
from the Texas State Library and Archives Commission. Local
Government Code, section 323.011(b).
VII.
COUNTY agrees to and accepts full responsibility for the
acts, negligence and/or omissions of all COUNTY's employees,
agents, sub-contractors, and/or contract laborers and for those
of all other persons doing work under a contract or agreement
with the COUNTY.
VIII.
The MUNICIPALITY agrees and accepts full responsibility for
the acts, negligence, and/or omissions of all the MUNICIPALITY's
employees, agents, sub-contracts, and/or contract laborers, and
for those of all other persons doing work under a contract or
agreement with said MUNICIPALITY.
IX.
This agreement is not intended to extend the liability of
the parties beyond that provided by law. Neither MUNICIPALITY
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
5
nor COUNTY waives any immunity or defense that would otherwise be
available to it against claims by third parties.
X.
MUNICIPALITY understands and agrees that the MUNICIPALITY,
its employees, servants, agents and representatives shall at no
time represent themselves to be employees, servants, agents
and/or representatives of COUNTY.
XI.
COUNTY understands and agrees that COUNTY, its employees,
servants, agents and representatives shall at no time represent
themselves to be employees, servants, agents, and/or
representatives of MUNICIPALITY.
XII.
The address of County is:
County Judge, Denton County
110 West Hickory
Denton, Texas 76201
Telephone: 940-349-2820
The address of Municipality is:
City of Coppell
The William T. Cozby Public Library
177 N. Heartz Rd.
Coppell, Texas 75019
Attention: Kathleen P. Metz Edwards
Telephone: 972-304-7030
XIII.
For the full performance of the services above stated,
COUNTY agrees to pay MUNICIPALITY fees as described herein.
COUNTY shall pay MUNICIPALITY fees in the amount of $1.25 per
capita, for a total of SEVEN HUNDRED EIGHTY-FOUR AND NO/100
($784.00), based upon North Central Texas Council of Governments
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
6
population figures provided to Denton County by the Library
Advisory Board, payable in equal quarterly installments to
MUNICIPALITY commencing October 1, 2002 In addition, the COUNTY
agrees to pay MUNICIPALITY an amount not to exceed TEN THOUSAND
DOLLARS AND NO/100THS ($10,000.00) in matching funds upon the
following conditions. MUNICIPALITY shall attempt to secure
funding from sources other than Denton County. Upon receipt of
additional funding, MUNICIPALITY shall provide proof of the
receipt of such funds to the Denton County Auditor on a quarterly
basis. Denton County shall match MUNICIPALITY's additional
funding in an amount not to exceed $10,000.00. Payment by COUNTY
to MUNICIPALITY shall be made in accordance with the normal and
customary processes and business procedures of COUNTY, and
payment shall be satisfied from current revenues of the COUNTY.
XIV.
This agreement may be terminated at any time, by either
party giving sixty (60) days advance written notice to the other
party. In the event of such termination by either party,
MUNICIPALITY shall be compensated pro rata for all services
performed to termination date, together with reimbursable
expenses then due and as authorized by this agreement. In the
event of such termination, should MUNICIPALITY be overcompensated
on a pro rata basis for all services performed to termination
date or be overcompensated for reimbursable expenses as
authorized by this agreement, then COUNTY shall be reimbursed pro
rata for all such overcompensation. Acceptance of such
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
7
reimbursement shall not constitute a waiver of any claim that may
otherwise arise out of this agreement.
XV.
This agreement represents the entire and integrated
agreement between MUNICIPALITY and COUNTY and supersedes all
prior negotiations, representations and/or agreements, either
written or oral. This agreement may be amended only by written
instrument signed by both MUNICIPALITY and COUNTY.
XVI.
The validity of this agreement and any of its terms or
provisions, as well as the rights and duties of the parties
hereto, shall be governed by the laws of the State of Texas.
Further, this agreement shall be performable and all compensation
payable in Denton County, Texas.
XVII.
In the event that any portion of this agreement shall be
found to be contrary to law, it is the intent of the parties
hereto that the remaining portions shall remain valid and in full
force and effect to the extent possible.
XVIII.
The undersigned officers and/or agents of the parties hereto
are the properly authorized officials and have the necessary
authority to execute this agreement on behalf of the parties
hereto and each party hereby certifies to the other that any
necessary orders or resolutions extending said authority have
been duly passed and are now in full force and effect.
INTERLOCAL COOPERATION AGREEMENT
LIBRARY SERVICES 2002-2003
CITY OF COPPELL
8
Executed in duplicate originals in Denton County, Texas by
the authorized representatives.
COUNTY MUNICIPALITY
By ________________________ By
Mary Horn Name: Candy Sheehan
County Judge Title: Mayor
Acting on behalf of and by the
authority of the Commissioners Resolution #
Court of Denton County, Texas Dated
ATTEST: ATTEST:
By By
Denton County Clerk City Secretary
APPROVED AS TO FORM: APPROVED AS TO FORM:
Assistant District Attorney City Attorney
APPROVED AS TO CONTENT:
Director, Library Services
DEPT: City Manager
DATE: December 10, 2002
ITEM #: 10/K
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of a Resolution urging the 78th Texas Legislature to adopt initiatives to preserve Texas air
quality, enhance public health and promote economic prosperity; and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: !airquality
RESOLUTION NO. ____________________
A RESOLUTION OF THE CITY OF COPPELL, TEXAS, URGING THE 78TH
TEXAS LEGISLATURE TO ADOPT INITIATIVES TO PRESERVE TEXAS AIR
QUALITY, ENHANCE PUBLIC HEALTH AND PROMOTE ECONOMIC
PROSPERITY.
WHEREAS, air quality impacts the public health as well as the economic health of
our entire state; and,
WHEREAS, federally designated nonattainment areas and near-nonattainment areas
of Texas include thirty-eight counties, and all of the largest cities which represent 70% of
the state's population; and,
WHEREAS, attaining compliance with the federal Clean Air Act is essential for
Texas to achieve long-term growth and prosperity and to continue to provide a high quality
of life for its citizens; and,
WHEREAS, air quality compliance continues to be among the most important and
difficult challenges facing Texas; and,
WHEREAS, given the integrated nature of the Texas economy, all parts of the state
will benefit when air quality compliance is achieved or will suffer if it is not; and,
WHEREAS, the Texas Legislature in 2001 enacted the Texas Emissions Reduction
Plan (Senate Bill 5 -- TERP) to provide incentives to induce the voluntar y replacement or
retrofitting of older and high polluting diesel and gasoline engines with newer and cleaner
ones; and,
WHEREAS, the Environmental Protection Agency (EPA) accepted this strategy to
substitute for a constr uction time shift that would have kept heavy-duty constr uction
equipment from operating until 10:00 a.m. from May to October each year and to also
substitute for a requirement that owners of heavy-duty equipment would have to completely
moder nize their fleet by 2007 with new engines being introduced in 2005 and 2007; and,
WHEREAS, for the Dallas/Fort Worth area, the TERP was to be given credit for
reducing 16.3 tons per day of ozone causing emissions; and,
WHEREAS, no alternative strategy(ies) has been identified which could feasibly or
economically achieve this same level of reductions; and,
WHEREAS, the major funding source of the TERP was successfully challenged in
legal proceeding and therefore resulted in this strategy not reaching its full potential and
thereby not creating the emissions reductions intended; and,
1
WHEREAS, without the reductions, EPA has given notice that it will not approve
the Dallas/Fort Worth attainment demonstration SIP, will find that the previously approved
Houston SIP has failed, and will eliminate a future source of reductions in the near
nonattainment areas; and,
WHEREAS, failure of these SIPs and the lack of potential reductions in the near
nonattainment areas will trigger several sanctions in those affected areas that will negatively
impact the entire Texas economy.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF COPPELL, TEXAS, THAT:
SECTION 1. The 78th Texas Legislature is hereby urged to adopt the following
initiatives, in priority order, to preser ve Texas air quality, enhance public health, and
promote economic prosperity:
1. First and foremost, provide full funding for the next biennium for the
Texas Emissions Reduction Plan to make up for the shortfall in the
anticipated funding from last session;
2. Maintain the integrity of the Texas Emissions Reduction Plan (TERP)
by ensuring that clean up legislation improves the effectiveness of the
TERP programs by accepting the Recommendations included in the
Texas Commission on Environmental Quality's TERP Report to the
Legislature and authorize the following provisions:
• Enable gasoline, propane, and natural gas engines to
participate in the Emissions Reduction Incentive Grant
program
• Include a simplified rebate program for low cost
emissions control technologies in the TERP programs
• Enable stationary engines to participate in the Emissions
Reduction Incentive Grant program
• Remove the funding floor in the Light Duty Purchase
and Lease Incentive program
• Establish one primar y and four satellite regional
emission testing centers for heavy-duty vehicles and
machines
2
3. Support state funding for research and air planning activities:
• Approve the Texas Commission on Environmental
Quality's Legislative Appropriations Request for the
2003-2004 biennium, for 1) ozone modeling research in
the state's nonattainment areas; and 2) air quality
planning activities in the state's near nonattainment
areas, including those activities necessar y to support
voluntary SIP submittals, ozone flex programs and early
action compacts.
• Approve legislative appropriations to the Houston-
Galveston-Brazoria and Dallas/Fort Worth Air Quality
Research Initiative to carr y out air quality research in
support of the mid-course review with regard to these
regions' SIPs and to support the development of early
attainment plans in these regions for the new ozone and
particulate standards.
4. Affect a change in building codes relative to roofing standards in urban
areas in order to improve the state's "urban heat islands."
5. Support an investigation of and, if merited, development of a pilot
"pay as you save" program to encourage implementation of permanent
energy efficiency improvements.
6. In light of existing emission reduction gaps and the advent of the new
federal 8-hour and fine particulate standards, consider other measures
as they are developed that have emission reduction potential. Some
may include increased energy efficiency programs, fuel cell programs
and clean fleet and engine improvements.
DULY RESOLVED AND ADOPTED by the City Council of the City of
Coppell, Texas on this the _______ day of December, 2002.
CITY OF COPPELL, TEXAS
______________________________________
CANDY SHEEHAN, MAYOR
ATTEST:
_______________________________________
LIBBY BALL, CITY SECRETARY
3
APPROVED AS TO FORM:
___________________________________
ROBERT E. HAGER, CITY ATTORNEY
4
DEPT: Planning & Economic Development
DATE: December 10, 2002
ITEM #: 11
AGENDA REQUEST FORM
ITEM CAPTION:
PUBLIC HEARING:
Consider approval of Case No. S-1203, CiCi’s Pizza, zoning change request from C (Commercial) to C-S-1203
(Commercial-Special Use Permit-1203), to allow a 4,231 square-foot restaurant at 120 S. Denton Tap Road, Suite
170.
GOAL(S):
EXECUTIVE SUMMARY:
Date of P&Z Meeting: November 21, 2002
Decision of P&Z Commission: Approval (5-0) with Commissioners McCaffrey, Kittrell, McGahey, Halsey
and Foreman voting in favor. None opposed.
Approval is recommended, subject to the following conditions:
1) The site shall be developed in accordance with the site plan, floor plan and sign plan.
2) The hours of operation shall not exceed 11 a.m. to 10 p.m. Saturday through Thursday and
11 a.m. to 11 p.m. on Friday.
Staff recommends approval.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: @1S1203 1-AR
Item # 8
Page 1 of 3
CITY OF COPPELL
PLANNING DEPARTMENT
STAFF REPORT
CASE NO.: S-1203, CiCi’s Pizza
P & Z HEARING DATE: November 21, 2002
C.C. HEARING DATE: December 10, 2002
STAFF REP.: Marcie Diamond, Assistant Planning Director
LOCATION: 120 S. Denton Tap Road, Suite 170, Town Oaks Centre.
SIZE OF AREA: Approximately 4,231-square feet.
CURRENT ZONING: C (Commercial)
REQUEST: C-S-1203 (Commercial, Special Use Permit-1203) for restaurant use.
APPLICANT: James Bruton
Jlb Design Associates
303 Walnut Glen
Coppell, Texas 75019
(972) 393-6255
FAX: (972) 393-1423
HISTORY: In 1985, Town Oaks Centre was developed with a Minyard Grocery
Store as the anchor tenant. Minyards closed this location in the
spring of 2001. The remainder of the center contains a mix of retail,
medical office, and restaurant uses. SUP’s for La Chalet and Slider
and Blues/C.J./Kelly’s have been approved in this shopping center.
Item # 8
Page 2 of 3
TRANSPORTATION:Denton Tap Road is a P6D, six-lane divided thoroughfare contained within a
100-120-foot right-of-way.
SURROUNDING LAND USE & ZONING:
North- Town Center Shopping Center (Tom Thumb); TC (Town Center)
South -Braewood Center; C (Commercial)
East - Braewood West Addition; SF-7 (Single Family-7)
West - Mobil Gas Station and McDonalds; R (Retail)
COMPREHENSIVE PLAN: The Comprehensive Plan shows the property as suitable for
neighborhood retail uses.
DISCUSSION: The applicant, CiCi’s Pizza, desires to relocate their restaurant
from its current location at 700 E. Sandy Lake to the Town Oaks
Shopping Centre at the southeast corner of Sandy Lake and Denton
Tap Road. This relocation will allow for an upgrade from the
existing 3,800 square-foot restaurant, which opened in 1994.
The proposed 4,231 square-foot restaurant is slightly larger than
the existing; however, it will have the same seating capacity of
180. To accommodate this size restaurant, a 576 square-foot
expansion to this shopping center is required. With this expansion,
and the conversion of retail to a restaurant use, staff requested that
the applicant provide an accounting of the parking capacity of this
shopping center to assure that it could provide the required 42
parking spaces. The attached analysis indicates that at full
occupancy, with this expansion, there will still be an excess of 8
parking spaces.
This lease space will have approximately 60 feet of frontage on
Denton Tap Road, and, therefore, a 60 square-foot sign would be
permitted. However, the applicant is requesting a sign that will be
approximately 47-square feet. The color of the individually
mounted letters will match the shade of white as the existing
signage in this shopping center.
The hours of operation at their existing restaurant are 11 a.m. to
8:30 p.m. Monday through Thursday and 11:00 a.m. to 10:00 p.m.
Friday, Saturday and Sunday. The new restaurant will have
expanded hours of operation which are proposed to be 11 a.m. to
10 p.m. Saturday through Thursday and 11 a.m. to 11 p.m. on
Friday.
Item # 8
Page 3 of 3
RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION:
Staff is recommending APPROVAL of Case No. S-1203 for CiCi’s
Restaurant, subject to the following conditions:
1) The site shall be developed in accordance with the site plan, floor plan
and sign plan.
2) The hours of operation shall not exceed 11 a.m. to 10 p.m. Saturday
through Thursday and 11 a.m. to 11 p.m. on Friday.
ALTERNATIVES:
1) Recommend approval of the request.
2) Recommend disapproval of the request
3) Recommend modification of the request
4) Take under advisement for reconsideration at a later date.
ATTACHMENTS:
1) Parking Analysis for Town Oaks Centre
2) Site Plan
3) Floor Plan
4) Sign Plan
36"30"15'-8"OVERALL HT." P "47 SQ. FT.
LETTER DISPLAY
FRONT ELEVATION
1/4"=1'-0"
NOT TO SCALE
REVISION / DATE APPROVAL / DATE
Client
Sales
Estimating
Art
Engineering
Landlord
This drawing is the
property of
Chandler Signs, L.P.
and all rights to its
use for reproduction
are reserved by
Chandler Signs. L.P.Designer Date
Sales /C oordinator
3201 Manor Way
Dallas,TX 75235
214-902-2000
Fax 214-902-2044
1216 Valliant Drive
San Antonio, TX 78216
210-349-3804
Fax 210-349-8724
2420 Vista Way - Ste. 200
Oceanside, CA 92054
P.O. Box 43123
Louisville, KY 40253
760-967-7003
Fax 760-967-7033
502-489-3660
Fax 502-254-3843
750 E. Hwy. 24 - Bldg. 2, Ste. 200
Woodland Park, CO 80863
719-687-2507
Fax 719-687-2506
16740 Hedgecroft - Ste. 400
Houston, TX 77060
281-931-9050
Fax 281-931-9011 ROCKY GRAY
Client
Street
City / State
CICI'S PIZZA
COPPELL, TEXASSDM10/18/02
Design #Sheet of02-2119 1 1Chandler
Signs
www.chandlersigns.com
NOTE - SIGN FACES SHALL BE WHITE & MATCH
COLOR ( SHADE ) OF EXISTG. SIGNAGE IN SHOPPING
CENTER
DEPT: Planning & Economic Development
DATE: December 10, 2002
ITEM #: 12
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of the MacArthur Vista Center, Lot 1, Block A, Site Plan, to allow the development of an
approximate 10,048 square-foot office/retail/medical building on 1.409 acres of property located along the east
side of MacArthur Blvd., south of Denton Creek.
GOAL(S):
EXECUTIVE SUMMARY:
Date of P&Z Meeting: November 21, 2002
Decision of P&Z Commission: Approval (5-0) with Commissioners McCaffrey, Kittrell, McGahey, Halsey
and Foreman voting in favor. None opposed.
Approval is recommended, subject to the following conditions:
1) A solid, minimum six-foot high masonry screening wall being constructed along the
east property line of this tract, as required by the Zoning Ordinance. (The Commission indicated support
of Council’s fencing option.)
2) The monument sign should identify the center itself as opposed to individual tenants.
3) The dumpster enclosure abides by all zoning requirements.
Staff recommends approval.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: @2MacAVistaSP 1-AR
Item # 9
Page 1 of 4
CITY OF COPPELL
PLANNING DEPARTMENT
STAFF REPORT
CASE: MacArthur Vista Center, Lot 1, Block A
Site Plan
P & Z HEARING DATE: November 21, 2002
C.C. HEARING DATE: December 10, 2002
STAFF REP.: Gary L. Sieb, Planning Director
LOCATION: Along the east side of MacArthur Blvd, south of Denton Creek.
SIZE OF AREA: Approximately 1.4 acres of property.
CURRENT ZONING: R (Retail)
REQUEST: Site Plan approval for a 10,000 square foot retail, office, medical
facility.
APPLICANT: OWNER/DEVELOPER:
Univest Properties
12201 Merit Drive, Suite 170
Dallas, Texas 75251
(972) 991-4600
Fax (972) 991-7500
ARCHITECT:
Daniels and Associates, Architects
4320 N. Beltline Road, Suite A-106
Irving, Texas 75038
(972) 255-1515
Fax (972) 255-4141
Item # 9
Page 2 of 4
HISTORY: There has been no recent zoning activity on this parcel.
Approximately 2-3 years ago, there was a Called Hearing on this
property to determine proper zoning. At that time, staff
recommended residential zoning (which was supported by our
Comprehensive Plan and the Planning Commission). That
recommendation was denied by City Council, and the property
remains zoned Retail to this day.
TRANSPORTATION:MacArthur Blvd. is a P6D, improved four- and six-lane divided thoroughfare
(six lanes at this location) contained within a 110-foot right-of-way.
SURROUNDING LAND USE & ZONING:
North- single-family residential; PD SF-9
South -developing single-family residential; SF-12
East - developing single-family residential; SF-12
West - single-family residential; PD SF-7
COMPREHENSIVE PLAN: The Comprehensive Plan shows the property as suitable for
residential development (see History Section for more
information regarding this parcel).
DISCUSSION: This property was considered for rezoning to a residential
classification approximately two years ago in a Called Public
Hearing. The owner of the land appeared at the hearing and
objected to any change from the Retail zoning classification on the
property at that time. City Council elected to leave the zoning
Retail. We now have an application for retail, office, medical
users--all of which fit into the Retail classification. That being the
case, we will evaluate this request based on the retail classification
currently existing.
In reviewing this proposal, we find that the applicant has abided by
zoning requirements with the exception of our screening standards
and dumpster location. In addition, his signage proposal
suggesting multi-tenant signage being placed upon the monument
warrants further comment. Our preference is for monument
signage to identify the facility as opposed to individual leases.
Historically, multi-tenant signage in Coppell has proven to be
unsuccessful and several existing buildings have reverted to
building identification only.
Item # 9
Page 3 of 4
Regarding screening, the east property line is required to have a
minimum six-foot tall brick masonry screening fence adjacent to
the residential zoning beyond. The applicant states a desire to
retain the natural screen, that a brick screening wall will destroy
much of the natural landscape. Having heard this argument before
and on physical observation of this site, staff cannot support a
natural rather than a physical barrier (remember the Deliman case).
In addition, in reviewing the applicant’s tree survey (attached as
Exhibit L-1), we are struck by the fact that the required inventory
shows less than a half-dozen trees in a distance of over 500 feet
that would be affected by the masonry screening wall.
With regard to dumpster placement, it is just in the wrong location.
In fact, after staff’s initial site plan review, and our concerns with
its placement, the revised plans show it even closer to MacArthur
Blvd. It is a structure and needs to be placed behind building
lines. There are places on this lot that would conform to the
zoning ordinance, and if that requires a slightly smaller building
footprint, then that needs to occur. This is a vacant piece of
property and a building design--which meets all code
requirements--can be placed on this lot. We see no reason why the
dumpster can not be moved to a more appropriate place on this 1.4
acre lot and are concerned with its indicated location.
If the applicant can not abide by our zoning code, he has options
available. One, rezone the parcel to PD and have the screening
fence altered by a specific condition of the PD. He could also
request that the dumpster location remain as shown. Two, with
regard to the fence, the applicant could ask Council to modify our
screening requirement and place a decorative metal and masonry
fence on his east property line. The provision of the
metal/masonry fencing was placed in the zoning ordinance
primarily when a developer had a view he was attempting to
capitalize on such as a greenbelt or creek bed. This situation is not
what was envisioned by the Zoning Ordinance. The applicant’s
third option is to appeal to the Board of Adjustment to see if they
might offer relief. There is no question that this property is odd
shaped (one of the reasons for granting Board variances), but
whether the Board would put much credence in that fact is
unknown. Staff position is that the wall be constructed. As
depict by the applicant’s landscape plan, considerable plant
material will be added to the east side of the property, much in
over-story trees. In time, that landscaping will serve the same
purpose as existing plants that might be damaged with wall
construction.
Item # 9
Page 4 of 4
RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION:
Because the zoning on this parcel is Retail, and this proposal essentially
meets most of our development guidelines, staff would recommend approval
of the request subject to the following conditions:
-a solid, minimum 6 foot high, masonry screening wall is constructed along
the east property line of this tract, as required by the
Zoning Ordinance
-the monument sign should identify the center itself as opposed to individual
tenants
-the dumpster enclosure abide by all zoning requirements
ALTERNATIVES:
1) Recommend approval of the request.
2) Recommend disapproval of the request
3) Recommend modification of the request
4) Hold under advisement to a specific date.
ATTACHMENTS:
1) Departmental comments (Engineering, Parks)
2) Site plan
3) Elevations,
4) Tree survey
5) Landscape plans
DEPT: Planning & Economic Development
DATE: December 10, 2002
ITEM #: 13
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of the MacArthur Vista Center, Lot 1, Block A, Minor Plat, to allow the development of an
approximate 10,048 square-foot office/retail/medical building on 1.409 acres of property located along the east
side of MacArthur Blvd., south of Denton Creek.
GOAL(S):
EXECUTIVE SUMMARY:
Date of P&Z Meeting: November 21, 2002
Decision of P&Z Commission: Approval (5-0) with Commissioners McCaffrey, Kittrell, McGahey, Halsey
and Foreman voting in favor. None opposed.
Approval is recommended, subject to the following conditions:
1) The Volume and Page numbers of the 15-foot utility easement be indicated on the plat.
2) The easements for Oncor facilities be indicated on the plat.
Staff recommends approval.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: @3MacAVistaMP 1-AR
Item #10
Page 1 of 2
CITY OF COPPELL
PLANNING DEPARTMENT
STAFF REPORT
CASE: MacArthur Vista Center, Lot 1, Block A
Minor Plat
P & Z HEARING DATE: November 21, 2002
C.C. HEARING DATE: December 10, 2002
STAFF REP.: Gary L. Sieb, Planning Director
LOCATION: Along the east side of MacArthur Blvd, south of Denton Creek.
SIZE OF AREA: Approximately 1.4 acres of property.
CURRENT ZONING: R (Retail)
REQUEST: Minor Plat approval for construction of a 10,000 square foot retail,
office, and medical facility.
APPLICANT: OWNER/DEVELOPER:
Univest Properties
12201 Merit Drive, Suite 170
Dallas, Texas 75251
(972) 991-4600
FAX (972) 991-7500
ENGINEER;
Dowdey, Anderson, and Associates
5225 Village Creek Drive, Suite 200
Plano, Texas 75093
(972) 931-0694
FAX (972) 931-9538
Item #10
Page 2 of 2
HISTORY: There has been no recent platting history on the subject tract,
although a city initiated request to rezone this parcel from Retail to
Single-Family was rejected by City Council 2-3 years ago.
TRANSPORTATION: MacArthur Blvd. is a P6D, improved 6-lane divided thoroughfare
contained within a 110 foot right of way .
SURROUNDING LAND USE & ZONING:
North- single family residential; PD SF-9
South -developing single family residential; SF-12
East - developing single-family residential; SF-12
West - single-family residential; PD SF-7
COMPREHENSIVE PLAN: The Comprehensive Plan shows the property as suitable for
residential development (see History Section).
DISCUSSION: As mentioned briefly in the History Section, staff attempted to
have this property rezoned to single family a little over two years
ago. The City Council elected to retain the current zoning and the
plat as submitted meets the requirements of our Subdivision
Regulations.
RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION:
Staff is recommending approval because this plat meets the requirements of the
Subdivision Regulations, subject to comments from Engineering and Oncor
Energy (attached).
ALTERNATIVES:
1) Recommend approval of the request.
2) Recommend disapproval of the request
3) Recommend modification of the request
ATTACHMENTS:
1) Minor plat document
2) Departmental comments (Engineering and Oncor Energy)
DEPT: Planning & Economic Development
DATE: December 10, 2002
ITEM #: 14
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of the IAAM, Inc., Addition, Lot 1, Block 1, Site Plan Amendment, to allow the construction of
covered parking over 68 existing parking spaces on 4.377 acres of property located at the southeast corner of Fritz
Drive and I.H. 635 (636 Fritz Drive).
GOAL(S):
EXECUTIVE SUMMARY:
Date of P&Z Meeting: November 21, 2002
Decision of P&Z Commission: Approval (5-0) with Commissioners McCaffrey, Kittrell, McGahey, Halsey
and Foreman voting in favor. None opposed.
Approval is recommended, subject to the following condition:
1) Adherence to Section 12-34-6 (Maintenance) of the Coppell Comprehensive Zoning Ordinance
which addresses the question of maintaining all landscape materials.
Staff recommends approval.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: @4IAAMspa 1-AR
Item # 11
Page 1 of 3
CITY OF COPPELL
PLANNING DEPARTMENT
STAFF REPORT
CASE: IAAM, Inc., Addition
Lot 1, Block 1, Site Plan Amendment
P & Z HEARING DATE: November 21, 2002
C.C. HEARING DATE: December 10, 2002
STAFF REP.: Gary L. Sieb, Planning Director
LOCATION: SEC of Fritz Drive and I.H. 635 (636 Fritz Drive).
SIZE OF AREA: 4.377 acres of property, containing a 38,500 square foot building
CURRENT ZONING: LI (Light Industrial).
REQUEST: Amendment to the Site Plan to allow the construction of covered
parking over 68 existing parking spaces to be accomplished in two or
more phases. Phase one involves six parking spaces.
APPLICANT: Applicant:
International Association of Assembly Managers, Inc.
Mike Meyers
365 Fritz Drive, Suite 100
Coppell, TX. 75019
(972) 255-8020
Fax (972) 255-9582
Architect:
BOKA Powell, Architects
Paul Chapel
13727 Noel Road, Suite 300
Dallas, TX . 75240
(972) 701-9000
Fax: (972)991-3008
HISTORY: There has been no recent development history, the latest being the original
construction of the IAAM building in 1999.
TRANSPORTATION: Fritz Road is a C2U two lane undivided roadway built to standard in a 65
foot right of way.
Item # 11
Page 2 of 3
SURROUNDING LAND USE & ZONING:
North -Industrial warehousing: LI, Light Industrial
South -vacant and office; HC, Highway Commercial
East - vacant ; HC Highway Commercial
West - Interstate 635; “A”, Agricultural
COMPREHENSIVE PLAN: The Comprehensive Plan shows the property as suitable for
office, showroom and warehouse uses.
DISCUSSION: This is a request to add a total of 68 covered parking spaces to an
existing office development known as the International
Association of Assembly Managers (IAAM) building. The
existing lot contains 163 parking spaces. Phase one development
would involve 6 existing parking spaces, with future covered
parking being constructed as demand warrants it. The reason for
the request is to provide protective parking for some of the
building tenants, and also act as a marketing tool for future leases.
Because the parking shelters will be composed of the same
building materials as the main building, and retain the current trim
colors, staff can support this request. We would add a comment
addressing needed assurance from the applicant that all existing
landscaping in the affected parking lots be maintained in a healthy
and growing condition during and after construction of the parking
shelters. With that assurance, staff can support this request.
RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION:
Staff recommends approval of this request with the understanding
that the applicant is aware of Section 12-34-6 (Maintenance) of the
Coppell Comprehensive Zoning Ordinance which addresses the
question of maintaining all landscape materials.
ALTERNATIVES:
1) Recommend approval of the request.
2) Recommend disapproval of the request
3) Recommend modification of the request
4) Hold under advisement to a specific date.
ATTACHMENTS:
Item # 11
Page 3 of 3
1) Applicant letter dated October 22, 2002 (BOKA Powell)
2) Departmental comment (Building Inspection)
3) Site Plan
4) Perspective View
5) Elevations
DEPT: Planning & Economic Development
DATE: December 10, 2002
ITEM #: 15
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of an Ordinance for Case No. S-1174R, Deliman’s Grille, zoning change from PD-133-HC
(Planned Development-133-Highway Commercial) to PD-133R4-HC-S.U.P-1174R (Planned Development-
133R4-Highway Commercial, Special Use Permit-1174R), to amend various development standards of the
Planned Development and to allow the construction of an approximate 3,649 square-foot restaurant with a drive-
through pick-up window and private club, to be located along the west side of Denton Tap Road, approximately
204 feet north of Natches Trace, and authorize the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY:
Date of P&Z Meeting: N/A
Decision of P&Z Commission: N/A
On October 17, 2002, the Planning Commission approved this zoning change (5-1). Commissioner Kittrell
opposed.
On November 12, 2002, Council approved this zoning change (5-1). Councilmember Stover opposed.
Staff recommends approval.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: @5S1174R Ord. 1-AR
1 52327
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS
ORDINANCE NO. ________
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, AMENDING
ORDINANCE NO. 91500, THE COMPREHENSIVE ZONING ORDINANCE
AND MAP OF THE CITY OF COPPELL, TEXAS, AS HERETOFORE
AMENDED, BY GRANTING A CHANGE IN ZONING FROM “PD-133-HC”
(PLANNED DEVELOPMENT-133-HIGHWAY COMMERCIAL) TO “PD-133-
HC-S-1174R” (PLANNED DEVELOPMENT-133 REVISED 4-HIGHWAY
COMMERCIAL-SPECIAL USE PERMIT-1174 REVISED) TO GRANT A
SPECIAL USE PERMIT TO ALLOW FOR THE OPERATION OF A
RESTAURANT AND PRIVATE CLUB TO BE LOCATED ALONG THE
WEST SIDE OF DENTON TAP ROAD, AND BEING MORE PARTICULARLY
DESCRIBED IN EXHIBIT "A", WHICH IS ATTACHED HERETO AND
INCORPORATED HEREIN BY REFERENCE; PROVIDING FOR THE
APPROVAL OF THE SITE PLAN, FLOOR PLAN, LANDSCAPE PLAN, AND
ELEVATIONS AND ELEVATIONS OF THE MONUMENT SIGN, TRASH
ENCLOSURE AND SCREENING WALL, ATTACHED HERETO AS
EXHIBITS “B”, "C", "D", “E” AND "F", RESPECTIVELY; PROVIDING
FOR SPECIAL CONDITIONS; PROVIDING A REPEALING CLAUSE;
PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS
CLAUSE; PROVIDING A PENALTY OF FINE NOT TO EXCEED THE SUM
OF TWO THOUSAND DOLLARS ($2,000.00) FOR EACH OFFENSE; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Planning and Zoning Commission and the governing body of the City of
Coppell, Texas, in compliance with the laws of the State of Texas and pursuant to the Comprehensive
Zoning Ordinance of the City of Coppell, have given requisite notices by publication and otherwise,
and after holding due hearings and affording a full and fair hearing to all property owners generally,
and to all persons interested and situated in the affected area and in the vicinity thereof, the said
governing body is of the opinion that Zoning Application No. PD-133R4-HC-S-1174R should be
approved, and in the exercise of legislative discretion have concluded that Ordinance No. 91500, the
Comprehensive Zoning Ordinance and Map should be amended.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
SECTION 1.That Ordinance No. 91500, the Comprehensive Zoning Ordinance and Map of
the City of Coppell, Texas, duly passed by the governing body of the City of Coppell, Texas, as
heretofore amended, be and the same is hereby amended to grant a change in zoning from “PD-133-
HC” (Planned Development-133-Highway Commercial) to “PD-133R4-HC-S-1174R” (Planned
Development-133 Revised 4-Highway Commercial-Special Use Permit-1174 Revised) to grant a
2 52327
special use permit to allow for the operation of a restaurant and private club for the property described
in the attached Exhibit "A", subject to special conditions.
SECTION 2.That the Special Use Permit for a restaurant and private club is hereby approved
subject to the following special conditions:
(A) The site shall be developed in accordance with the site plan, floor plan, landscape plan,
elevations, and elevations of the monument sign, trash enclosure and screening wall
which are attached hereto as a further condition.
(B) That the hours of operation shall be from 6:00 a.m. to 10:00 p.m., Sunday through
Saturday.
(C) That the drive-through shall not include any speaker or microphone.
SECTION 3.That the Site Plan, Floor Plan, Elevation and Elevations of the monument sign,
trash enclosure and screening wall, attached hereto as Exhibits “B”, “C”, "D", “E” and “F”,
respectively, and made a part hereof for all purposes, are hereby approved.
SECTION 4.That the above property shall be used only in the manner and for the purpose
provided for by the Comprehensive Zoning Ordinance of the City of Coppell, as heretofore amended,
and as amended herein.
SECTION 5.That the development of the property herein shall be in accordance with
building regulations, zoning ordinances, and any applicable ordinances except as may be specifically
altered or amended herein.
SECTION 6. That all provisions of the Ordinances of the City of Coppell, Texas, in conflict
with the provisions of this ordinance be, and the same are hereby, repealed, and all other provisions not
in conflict with the provisions of this ordinance shall remain in full force and effect.
SECTION 7. That should any sentence, paragraph, subdivision, clause, phrase or section of
this ordinance be adjudged or held to be unconstitutional, illegal or invalid, the same shall not affect the
3 52327
validity of this ordinance as a whole, or any part or provision thereof other than the part so decided to
be unconstitutional, illegal or invalid, and shall not affect the validity of the Comprehensive Zoning
Ordinance as a whole.
SECTION 8. An offense committed before the effective date of this ordinance is governed by
prior law and the provisions of the Comprehensive Zoning Ordinance, as amended, in effect when the
offense was committed and the former law is continued in effect for this purpose.
SECTION 9.That any person, firm or corporation violating any of the provisions or terms of
this ordinance shall be subject to the same penalty as provided for in the Comprehensive Zoning
Ordinance of the City of Coppell, as heretofore amended, and upon conviction shall be punished by a
fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense; and each and every
day such violation shall continue shall be deemed to constitute a separate offense.
SECTION 10.That this ordinance shall take effect immediately from and after its passage and
the publication of its caption, as the law and charter in such cases provide.
DULY PASSED by the City Council of the City of Coppell, Texas, this the _______ day of
___________________, 2002.
APPROVED:
_____________________________________
CANDY SHEEHAN, MAYOR
ATTEST:
_____________________________________
LIBBY BALL, CITY SECRETARY
APPROVED AS TO FORM:
_________________________________
ROBERT E. HAGER, CITY ATTORNEY
DEPT: Planning & Economic Development
DATE: December 10, 2002
ITEM #: 16
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of an 18-month extension of time as it applies to the expiration date of the Site Plan
Amendment for Lot 1R, Block 2, of Gateway Business Park (Haverty’s).
GOAL(S):
EXECUTIVE SUMMARY:
Date of P&Z Meeting: N/A
Decision of P&Z Commission: N/A
Please see attached letter dated November 12, 2002, from Marty S. Paris, P.E. Council approved this Site Plan
Amendment on December 12, 2000. If this request were approved, the Site Plan would expire on June 10, 2004.
Staff recommends approval.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: @618mo.x. re Haverty’s 1-AR
DEPT: Parks and Recreation
DATE: December 10,2002
ITEM #: 17
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of bid no. Q-1002-01 for the installation of a creek crossing at Wagon Wheel Park, to Green
Scaping in an amount not to exceed $245,534.50 and authorizing the President of the CRDC to sign a contract
based on this award.
GOAL(S):
EXECUTIVE SUMMARY:
The CRDC included on the 2001-2002 Priority List a project to continue the trail from the athletic complex on the
eastern side of Wagon Wheel Park, to the parking area on the west side of Cottonwood Creek. This crossing will
improve safety at the park, allowing for much easier access when the need arises. Park Maintenance staff, in order
to improve efficiencies while performing their various tasks, will also utilize the crossing. This access is not to be
utilized for general vehicular traffic. It will be primarily for pedestrian hike and bike access and general park
maintenance access.
Currently, the only access between the two areas of the park is via the public roadway system, eliminating any
possibility of accessing both points with a small truckster or mowing unit used by Parks Maintenance staff. This
creates a situation whereby the Parks and Recreation Department is maintaining two separate parks, close to one
mile apart.
The project will include a twelve-foot wide trail extending from the existing concrete walks at both the east and the
west athletic complexes, across a bridge spanning the Cottonwood Creek.
Bids were received from twelve vendors for this project. Attached is a bid tabulation showing the three low
bidders. Bids ranged from a net high of $346,069.50, to a net low of $245,534.50 (Green Scaping). The lowest
and most responsible bidder is Green Scaping. Staff recommends award of this bid to Green Scaping in an amount
not to exceed $245,534.50.
FINANCIAL COMMENTS: Funds for this contract will come from the ½ cent sales tax allocated to the CRDC.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: ^Creek Crossing at Wagon Wheel
Park
Page 14399BID TABULATION-3 LOWEST BIDDERSCity of CoppellWAGON WHEEL TRAIL & BRIDGEBid No. Q-1002-01GREENSCAPINGSPRINKLE >N SPROUTDEAN ELECTRICItemDescriptionQty.UnitUnit CostTotalUnit CostTotalUnit CostTotalBASE BID1016" Thick concrete trail w/compacted subgrade2,229SY$ 42.00$ 93,618.00$ 32.00$ 71,328.00$ 31.74$ 70,748.4610280 LF Span Continental Bridge w/abutments1LS68,800.0068,800.0083,760.0083,760.0074,885.0074,885.00103Earthwork1LS7,500.007,500.0011,000.0011,000.0032,983.0032,983.00104Tree protection1LS1,500.001,500.002,400.002,400.00600.00 600.00105Tree removal1LS3,000.003,000.003,000.003,000.002,100.002,100.00106Concrete removal595SF3.502,082.503.001,785.001.00595.00107Segmented retaining wall w/geogrid1,330FF16.5021,945.0019.0025,270.0015.2220,242.60108Segmented retaining wall without geogrid760FF14.0010,640.0018.0013,680.0013.009,880.001094'x1' Box culvert and headwall18LF210.003,780.00250.004,500.00235.004,230.00110Guardrail210LF28.005,880.0042.008,820.0075.0015,750.00111Bermudagrass sod7,654SY3.5026,789.003.0022,962.002.6620,359.64TOTAL AMOUNT BID$ 245,534.50$ 248,505.00$ 252,373.70
DEPT: Engineering/Public Works
DATE: December 10, 2002
ITEM #: 18
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of awarding Bid/Contract #Q-0902-01 to Green Scaping in the amount of $135,737 for the
construction of the Riverchase Elevated Sidewalk as provided for in CRDC funds and by Carrollton-Farmers
Branch ISD; and authorizing the City Manager to sign.
GOAL(S):
EXECUTIVE SUMMARY:
Approval of this item will allow for the construction of a walkway to connect the Riverchase Subdivision across
the TXU (Oncor) easement to the Riverchase Elementary School.
Staff recommends awarding the bid for the construction of the Riverchase Elevated Sidewalk to Green Scaping in
the amount of $135,737.
Staff will be available to answer any questions at the Council meeting.
FINANCIAL COMMENTS: Funds for this contract will come from the ½ cent sales tax allocated to the CRDC.
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: #eng3-1AR
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
MEMORANDUM
FROM THE
DEPARTMENT OF ENGINEERING
To: Mayor and City Council
From: Kenneth M. Griffin, P.E., Dir. of Engineering/Public Works
Date: December 10, 2002
RE: Consider approval of a variance to the Coppell Code of Ordinances Chapter 13,
Appendix C Design Criteria and Standards, Section II Storm Sewers and
Drainage, paragraph B Engineering Design for the construction of Bethel Road.
The referenced section of the Subdivision Ordinance states “The Engineering design shall
generally conform to the criteria set forth in the City of Coppell City-Wide Storm Water
Management Study and the City of Dallas Drainage Design Manual.” The Drainage Design
Manual for the City of Dallas states “All drainage systems will be designed to accommodate the
flow from the 100-year frequency storm . . .”. Designing for the 100-year fully developed storm
is a criteria that has been utilized in the City of Coppell since approximately 1990. There are
some drainage systems within the City of Coppell which are not designed on the 100-year storm.
Most notably, the drainage system along MacArthur Blvd. from Deforest Road south to Sandy
Lake Road is designed on a 5-year frequency storm.
Attached to this agenda item is a memo from myself to Jim Witt and Clay Phillips that goes into
great detail about our attempts to design the drainage system in West Bethel Road on a 100-year
design frequency. However, in designing systems for a 100-year frequency it is important to
note where you are discharging the collected water. In the case of West Bethel Road, if you
were to build a system to efficiently convey the 100-year design storm it would discharge water
into the small creek on the east side of Loch Lane then convey the water through the unimproved
portion of Grapevine Creek north of the Coppell Senior Citizens Center. This creek in turn
meanders adjacent to Old Coppell Estates, Big Cedar, Country Estates, Grand Cove, Creekview
Addition, etc. As Council may be aware, there have been several complaints of erosion in
Grapevine Creek adjacent to those subdivisions. To collect all of the water and discharge it into
Grapevine Creek on a 100-year design is not the appropriate design for this drainage system. At
best, that would be an irresponsible design that could create additional drainage problems
downstream.
There have been two drainage studies performed on this drainage basin, the first in 1999 and the
second in 2002. Both studies point to the need for detention on the DFW Airport property. The
airport property comprises 242-acres of the 464-acres of drainage basin that drains to the
tributary on the east side of Loch Lane. This is approximately 52% of the entire drainage basin.
As can be seen by the detailed memo, there have been numerous meetings and conversations
with representatives of DFW Airport; however, in the final analysis, I have been told that DFW
"CITY OF COPPELL ENGINEERING - EXCELLENCE BY DESIGN"
Airport at this time will not support detention on their property nor acknowledge the concept or
need for detention.
At this time, I have three options concerning the drainage associated with West Bethel Road:
1. Indefinitely Postpone the project;
2. Build an efficient system that collects the 100-year runoff and discharge it into the
unimproved section of Grapevine Creek. This means seven 10’x5’ box culverts within
Bethel Road discharging into the small tributary on the north side of Bethel Road east of
Loch Lane; or
3. Design a system that will handle the 100-year storm water runoff before the airport property
develops.
It is my opinion that Option 3 is the correct decision in the design of the drainage system.
Option 3 gives us a 100-year ultimate storm drain system until such time as DFW Airport
develops the 242-acres of their property that drains through the City of Coppell.
If they develop irresponsibly and discharge all their water into our system, then our drainage
system will still have the future capacity to convey a 25-year storm. If they do the correct thing
when they develop and design detention to detain the increase in runoff on their property, then
our system will continue to have a 100-year capacity in the future. There are no guarantees on
what the future holds on the development of the airport property or whether or not the airport
will do a responsible development on the property in terms of drainage.
To keep the Bethel Road project moving ahead, my recommendation is that the variance to the
Subdivision Ordinance be approved to allow the construction of a drainage system that conveys
the 100-year runoff as it exists prior to development of the 242-acres of the airport property.
Staff will be available to answer questions at the Council meeting.
DEPT: City Manager
DATE: December 10, 2002
ITEM #: 19
AGENDA REQUEST FORM
ITEM CAPTION: Consider approval of an ordinance regarding TXU Gas Distribution’s settlement offer to
change rates within the corporate city limits of the City of Coppell, and authorizing the Mayor to sign.
GOAL(S):
EXECUTIVE SUMMARY: Based on the original filing by TXU Gas on March 1, 2002, rates in Coppell were
scheduled to increase by 9.75% overall. A public hearing was held on June 25, 2002, to consider the gas rate
increase request, and this request was denied by a unanimous vote of the Coppell City Council. TXU Gas
Distribution’s most recent settlement offer will result in an increase in Coppell gas rates of 3.44%.
Staff, as well as our gas rate legal counsel, believes this latest proposed settlement is fair and reasonable, and
recommends approval of this ordinance.
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: $TXU Gas1-1AR
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
111 CONGRESS AVENUE
SUITE 1800
AUSTIN, TEXAS 78701
Mr. Gay’s Direct Line: (512) 322-5875
Email: ggay@lglawfirm.com
TELEPHONE (512) 322-5800
TELECOPIER (512) 472-0532
www.lglawfirm.com
MEMORANDUM
TO: 51 North Texas Metroplex Cities
FROM: Geoffrey M. Gay
DATE: October 29, 2002
RE: Discussion Of Settlement Terms And Conditions For Resolution Of TXU
Distribution Gas Rate Case (GUD No. 9313)
This memo provides background for your consideration of the Agreement In Principle
reached with TXU to settle GUD 9313, the Company’s appeal of your denial of rate relief.
Was it worth it for Cities to force TXU to appeal?
Yes. First, the actions of the 51 cities will have saved their residents approximately $4.5-
$5 million between July and December in comparison to cities that settled with TXU last
summer. Incremental rate case expenses incurred since June 1 by both the Company and Cities
to be surcharged to the 51 cities will be less than $500,000, resulting in net savings of more than
$4 million.
Second, the Agreement In Principle to settle for a $7.5 million increase spread to the 51
cities is less than any settlement offer extended by the Cities to TXU last summer. TXU rejected
all offers below $12 million.
How will average rates in the 51 cities during 2003 compare to other North Texas
Metroplex Cities if the Agreement In Principle is adopted?
First, the comparison with other cities should begin with an evaluation of relative
percentages of request accepted by other cities. Dallas accepted 35.6% of TXU’s request. The
Metroplex Cities that agreed to settle with TXU last summer for the equivalent of Fort Worth
rates accepted 37% of the request. The Agreement In Principle reflects 30% of the Company’s
request.
1913\00\9313\mmo021029gmg 2
Second, the average residential bill comparison during 2003 between North Texas
Metroplex Cities, assuming around 6 Mcf consumption will be $38.49 for the Fort Worth
Distribution System, $38.59 for the Cities that settled last summer and $37.75 for the 51 cities.
Thus, in addition to completely avoiding any increase in 2003, residential customers in the 51
cities will pay about 80¢ a month less (after adjusting for incremental rate case expenses) than
the residential customers in cities that accepted TXU’s settlement offer last June.
What factors should go into your consideration of whether a $7.5 million increase is
reasonable?
There is a chance that TXU upper management could require the Distribution Company
to withdraw its appeal rather than run the risk of additional adverse publicity, further driving
down the share price of TXU’s stock that has been clobbered by bad news from Europe.
However, if a withdrawal did not occur before the filing of Cities’ testimony, the case would
proceed to hearing in November. Based upon the merits of what the Commission would hear
and an assessment of the current political environment, I believe that $7.5 million is a reasonable
result.
Cities are prepared to file the testimony of Jack Pous and Dan Lawton from DUCI who
will recommend a $16 million rate reduction. I asked Cities’ consultants to provide me with
probabilistic assessments of the success of their case. Mr. Pous and Mr. Lawton indicated that
the likely result would be a rate increase of between $5 million and $8 million.
My own probabilistic assessment is that the Commission might have entertained a rate
reduction five or six weeks ago, but will not do so now because it would likely cause further
reductions in TXU’s stock price. On the other hand, the Commission is not likely to render a
rate order above the level that TXU was willing to let other cities off the hook, or approximately
$12.5 million.
How was the proposed allocation of the $7.5 million between customer classes determined?
It has been Cities’ position over the last few years that industrial customers have been
subsidized by residential and commercial customers throughout the 1980s and 1990s. The
Commission has accepted cost allocation principles that require industrial customers to pay a
higher percentage of a given revenue deficiency in order to move toward elimination of
subsidies. Consistent with recent RRC opinions, the Company originally proposed that
industrials receive an increase of 18.13% in comparison to 10.13% and 5.61% increases for
residential and commercial customers, respectively.
In most prior cases that I have settled with TXU Gas Distribution in the last several years,
Cities have required that industrial customers receive an increase as proposed by the Company
and that the remaining dollars (after subtracting industrial incremental revenues from the
settlement amount) be spread on an equal percentage basis between residential and commercial
customers. Because industrial customers have intervened in the proceedings at the RRC and
have become a political distraction in some cities, I agreed with the Company that only 30% of
the Company’s request for an additional $1,380,152 from industrial customers be allocated to
1913\00\9313\mmo021029gmg 3
said customers (because the overall settlement is 30% of the Company request) resulting in an
increase of 5.53% rather than 18.13%. Industrial customers will be responsible for $420,698 of
the $7.5 million increase. If the residual is split on an equal percentage basis it results in overall
increases of 2.66% for residential ($4,668,581) and commercial ($2,210,465) customers.
What will be the impact on individual cities?
Since the 51 cities have different current rates and different customer mixes with
different consumption patterns, impacts within the cities will vary wildly. No city will have the
exact system average increase for any of the three classes of customers. Because the rates
currently in existence for some cities exceed the rates to be implemented from this case,
residential customers from eight cities (Balch Springs, Blue Ridge, De Soto, Duncanville, Glenn
Heights, Northlake, Princeton, Seagoville) will receive rate reductions.
A schedule providing percentage changes in rates for each class of customers in each of
the 51 cities is attached. Despite differential percentage changes, rates in each of the 51 cities
will be the same once the case is resolved, either by ordinance or Commission Order.
What procedure should be followed after consideration of this memo and the Agreement In
Principle?
The expectation of TXU is that all cities accept the Agreement In Principle and pass
ordinances consistent with the Agreement. TXU has the right to withdraw from the settlement if
any city refuses to compromise. Thus, the first procedural step is to make sure that all cities
concur that settlement is the right course of action. Please contact me or Jay Doegey
(doegeyj@ci.arlington.tx.us) by noon Friday, November 1, 2002 if you are certain your city will
not support settlement at $7.5 million. If you have questions not addressed by this memo please
send me an email and I will try to respond quickly. If you believe there is a need for a face-to-
face meeting, you may present that request to Jay. However, if the concern is simply that your
city council will want to know what other cities are doing, the current understanding that I have
with TXU is that it is “all or nothing”, and thus, there is no risk that a city can potentially hold
out for a better deal.
Assuming no one has rejected the Agreement In Principle by Friday, you will be sent by
Monday, November 4, 2002 a model ordinance to adopt. You can schedule action on the
ordinance during November and December as may be required by city charter. The new rates
will become effective on bills rendered after February 1, 2003.
If there is objection to the proposed settlement, Cities will file testimony next week, and
my office will be prepared to aggressively represent your interests in hearing before the Railroad
Commission.
1913\00\9313\mmo021031gmg
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
111 CONGRESS AVENUE
SUITE 1800
AUSTIN, TEXAS 78701
Mr. Gay’s Direct Line: (512) 322-5875
Email: ggay@lglawfirm.com
TELEPHONE (512) 322-5800
TELECOPIER (512) 472-0532
www.lglawfirm.com
MEMORANDUM
PRIVILEGED ATTORNEY/CLIENT COMMUNICATION
TO: 51 North Texas Metroplex Cities
FROM: Geoffrey M. Gay
DATE: October 31, 2002
RE: Frequently Asked Questions Regarding Settlement of TXU Distribution Gas
Rate Case (GUD No. 9313)
Since my October 29th memorandum, I have received some questions and requests for
additional information regarding the proposed settlement of TXU’s Distribution’s rate case,
Docket No. 9313. So that all cities may have the benefit of the information provided in the most
efficient way possible, I have reproduced (and in some instances, condensed) answers to
questions I have been asked by city representatives. If you have additional questions or require
further information, please email me.
What are the customer charges for residential and commercial customers? Does the
percentage increase/decrease for each city listed on the spreadsheet include the increase to
the fixed customer charge? Why is some of the increase recovered by increasing fixed
customer charges?
The customer charges will increase by $1 for residential customers and $2 for
commercial customers for some customers pursuant to the settlement. The new fixed customer
charges will be $8.00 for residential customers and $14.00 for commercial customers. The
percentage increase or decrease delineated on the spreadsheet that accompanied my October 29,
2002, memorandum includes the impact of changing the fixed customer charge.
The spreadsheet reflects for each of the three customer classes (residential, commercial,
and industrial) the additional dollars that must come from that group of customers within each
city. The assignment of dollars to each city is referred to as “allocation.” Structuring a method
for recovery of allocated dollars is denoted as “rate design.” Rate design functions to further
policy goals, as well as ensure that the specific amount allocated is recovered. The customer
charge is one component of rate design. The other major component of rate design is the
commodity charge (also known as “volumetric charge”).
1913\00\9313\mmo021029gmg 2
The rate design debate between the Cities and the Company regarding fixed customer
charges is always a policy debate, not a debate over additional cost recovery. While it is possible
to recover all of the allocated cost through the volumetric structure, some fixed customer charge
is appropriate. The utility must read a customer’s meter, send a bill, and incur other fixed costs
on a monthly basis regardless of the amount of gas consumed by the customer. The higher one
makes the customer charge, the lower the commodity charge becomes (and vice versa). If I were
an affluent, high usage customer, I would prefer a high customer charge and a low commodity
charge. Conversely, if I were a low income, low usage customer, I would rather the allocated
amount be recovered through a low fixed customer charge and higher commodity rates.
In its case, the Company has alleged that the true residential customer charge is over
$9.00. In addition to proposing a high customer charge, TXU’s witnesses also proposed a
declining block rate for the residential class. TXU’s filed rate design sends inappropriate rate
signals to affluent customers because TXU’s rate for gas becomes cheaper as a customer
increases consumption. Furthermore, TXU’s proposal discriminates against low volume and
poor customers.
We were prepared to put on testimony that calculated customer costs for the residential
class at about $7.40 per customer and that characterized the declining block rate as
discriminatory. The settlement eliminates the declining block rate and reflects a compromise on
the fixed customer charge. TXU refused to settle for customer charges below $8.00 and $14.00
for residential and commercial charges, respectively, because of the even higher customer
charges agreed to by Dallas. According to a TXU Vice President, it is an “optics” issue –
meaning that he would look bad if he agreed to a $7.50 customer charge after persuading Dallas
to accept $8.50.
Why did industrial customers in some cities receive a rate decrease? Are the
residential/commercial customers paying more to reduce the rates of “big users”?
Industrial customers are receiving rate reductions in approximately five cities. The only
explanation for this is that we focus on the system average and consistent rates for all cities
within a given system when preparing testimony and negotiating settlements. Because TXU is
consolidating different systems with different existing rates, there will be changes for some
classes of customers in some cities that look aberrant. I would stress that on a system-wide basis
industrial customers are receiving roughly twice the percentage increase as the residential and
commercial classes. That allocation disparity is justified because industrial customers have not
been paying their fair portion of the costs they impose upon the system.
Item 7 of the Agreement in Principle discusses a refund. What is the amount of the
refund? Will the refund alleviate any potential negative impact of the settlement?
The refund amount has not yet been calculated on a per customer basis. However, in
most cases, the refund ought to cover any potential adverse impact of the settlement and will
prevent most customers from sensing a detrimental effect from this settlement during the first
quarter of 2003.
1913\00\9313\mmo021029gmg 3
Is this an “all or nothing” settlement offer? What if one city rejects the settlement offer?
Has your office received any negative reaction from any city?
TXU has the right to withdraw from the settlement if any city refuses to compromise. If
your city council is concerned that there is a risk that one or more cities can potentially hold out
for a better deal, TXU has mandated that this is an “all or nothing” settlement offer. As I
indicated, I have received some requests for additional information and explanation regarding the
offer. Besides the questions, the only feedback that I have received thus far has been positive.
No city representative has yet informed me that the offer is unacceptable.
Why should we agree to a rate increase if DUCI’s testimony will support a rate decrease?
DUCI’s current analysis (as reflected in draft testimony) is that rates should be reduced
by $16 million, but that recommendation is based upon aggressive advocacy positions taken by
DUCI. Some of the adjustments advocated by DUCI in this case have already been considered
and rejected by the Commission in previous cases concerning other utilities or are inconsistent
with current Commission sentiment and politics. In response to my request, DUCI prepared a
probabilistic assessment of the likelihood of the success of its proposed adjustments if this case
were to go to hearing. Based upon DUCI’s analysis, they project that a Final Order would result
in a rate increase between $5 - $8 million rather than the $16 million reduction they recommend.
This is consistent with my legal assessment also.
As often happens, what ought to come about in a fair regulatory world gets trumped by
political realities. My opinion, shared by DUCI, is that although TXU’s rates should be reduced,
because TXU’s stock has been clobbered recently, the Commission will be unwilling to entertain
any reduction in TXU’s rates. However, TXU also wants to avoid unfavorable publicity that
could otherwise be associated with the filing of DUCI’s testimony recommending a substantial
reduction. That desire also relates to recent troubles with TXU’s stock price. Thus, TXU’s stock
problems simultaneously create an environment that makes a rate reduction extremely unlikely
and a desire on the part of the Company to settle on a value less than what the Cities offered last
summer.
While I can recommend the settlement, my feelings certainly will not be hurt if Cities
were to reject the offer. I understand that politics plays a role in local decision-making just as it
does at the Commission. It may be that signing onto any agreement to increase rates is
unacceptable even if the settlement outcome appears to be better than what the Commission will
likely order. I am indifferent to what the Cities decide to do so long as they remain united. My
office certainly has no objection to litigating the case (settling this case precludes my firm from
approximately $150,000 and $200,000 in revenues over the next four months), but it is my
responsibility as your attorney to present favorable options for resolution of a case when they
occur. In this case, I believe that the settlement reflects a better outcome than would result if this
case were to proceed to litigation.
1913\00\9313\mmo021029gmg 4
What is the cost for attorney fees resulting from this suit? How will attorney fees be
recovered? What is the rate case expense surcharge impact upon a typical residential
customer?
Rate case expenses occurring before June 1, 2002, involve matters pending at the cities
and will be surcharged to all 107 North Metroplex Cities. These expenses will include about
$261,000 in Company expenses, about $80,000 in expenses incurred by DUCI, and about
$40,000 in fees and expenses charged by my firm.
Costs incurred on and after June 1, 2002, will be surcharged to the 51 cities whose
ordinances were appealed. The settlement agreement limits TXU’s recovery to $200,000 in post
June 1, 2002, costs. In addition, DUCI has incurred approximately $180,000 in expenses after
June 1, 2002. A separate consultant, retained by me, has approximately $18,000 in expenses.
Finally, my firm has incurred about $40,000 in rate case expenses after June 1st. Please note that
the rate case expense amounts are the total cost for both Cities and TXU’s rate case expenses.
None of the 51 cities are out-of-pocket any funds in this matter. Arlington has been paying the
Cities’ rate case expenses from Lone Star related funds. The Company will reimburse Arlington
for all of Cities’ rate case expenses.
Spread over a twelve-month period, recovery of these costs will result in a per Mcf
surcharge of 1.5 to 2 cents. Since monthly usage averages about 6 Mcfs over the year, this
amounts to a monthly surcharge of approximately 9 to 12 cents for the typical residential
customer. Less than half of the surcharge is attributable to the appeal. Therefore, by standing
strong against TXU last summer, the 51 cities saved their residents more than $4 million in 2002
and obtained 2003 savings of approximately $.80 per month (in comparison to the cities that
accepted TXU’s settlement offer last summer.)
What further action is necessary?
As I indicated in my earlier memorandum, the first procedural step is to make sure that
all cities concur that settlement is the right course of action. Please contact me or Jay Doegey
(doegeyj@ci.arlington.tx.us) by noon Friday, November 1, 2002 if you are certain your city will
not support settlement at $7.5 million. If no city rejects the Agreement in Principle, my office
will send a model ordinance to you by November 4, 2002. I will also ask the Company to begin
preparing the tariffs that will be adopted by ordinance. You can schedule action on the
ordinance during November and December as may be required by city charter. The new rates
will become effective on bills rendered after February 1, 2003.
1913\00\9313\mmo021104kpd
LLOYD, GOSSELINK, BLEVINS, ROCHELLE,
BALDWIN & TOWNSEND, P.C.
ATTORNEYS AT LAW
111 CONGRESS AVENUE
SUITE 1800
AUSTIN, TEXAS 78701
Ms. Doyle’s Direct Line: (512) 322-5820
Email: kdoyle@lglawfirm.com
TELEPHONE (512) 322-5800
TELECOPIER (512) 472-0532
www.lglawfirm.com
MEMORANDUM
TO: 51 North Texas Metroplex Cities
FROM: Geoffrey M. Gay
Kristen Doyle
DATE: November 4, 2002
RE: Settlement of TXU Distribution Gas Rate Case (GUD No. 9313) – Model
Ordinance and Tariff
The first procedural step toward the final resolution of GUD No. 9313 was completed on
Friday when we did not receive an indication from any city that it is unwilling to support the
Agreement in Principle. The next step is for your city council to adopt an ordinance approving
the settlement agreement. Attached to this memorandum are draft tariffs and a model ordinance
to be adopted. If you receive this memorandum as a facsimile transmission and would like to be
emailed a Word version of the model ordinance and tariff, please contact Gail Johle at
gjohle@lglawfirm.com.
You can schedule action on the ordinance during November and December as may be
required by city charter. Assuming that all 51 cities take action to ratify the settlement, the new
rates will become effective on bills rendered on or after February 1, 2003. Please contact Kristen
Doyle or Jay Doegey if you have questions or require additional information.
ORDINANCE NO. ____________
AN ORDINANCE OF THE CITY OF COPPELL, TEXAS FINDING, AFTER
REASONABLE NOTICE AND HEARING, THAT TXU GAS
DISTRIBUTION’S RATES AND CHARGES WITHIN THE CITY SHOULD
BE CHANGED; DETERMINING JUST AND REASONABLE RATES;
ADOPTING GENERAL SERVICE RATES INCLUDING RATE
ADJUSTMENT PROVISIONS AND MISCELLANEOUS SERVICE
CHARGES TO BE CHARGED FOR SALES AND TRANSPORTATION OF
NATURAL GAS TO RESIDENTIAL, COMMERCIAL AND INDUSTRIAL
CUSTOMERS; PROVIDING FOR RECOVERY OF RATE CASE EXPENSES;
PRESERVING REGULATORY RIGHTS OF THE CITY; PROVIDING FOR
REPEAL OF CONFLICTING ORDINANCES; PROVIDING FOR AN
EFFECTIVE DATE
WHEREAS, the City of Coppell (“City”), acting as a regulatory authority, has previously
suspended the effective date of TXU Gas Distribution’s (“Company”) application to increase
rates in the City in order to study the reasonableness of that application;
WHEREAS, the City or a consultant retained by the City evaluated the merits of the
Company’s application;
WHEREAS, the City in a reasonably noticed public hearing considered the Company’s
application;
WHEREAS, the City has determined that the Company’s rates within the City should be
changed and that the Company’s application should be granted, in part, and denied, in part;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF COPPELL, TEXAS:
SECTION 1. On March 1, 2002, TXU Gas Distribution, a division of TXU Gas
Company (“Company”) filed with the Governing Body of this municipality a Statement of Intent
to Change Residential, Commercial and Industrial Rates charged to consumers within this
municipality. Also filed was the Tariff for Gas Service in the North Texas Metroplex
Distribution System (“Tariff for Gas Service”) and the supporting Cost of Service Schedules
(“Schedules”).
SECTION 2. That the existing rates and charges of TXU Gas Distribution are hereby
found, after reasonable notice and hearing, to be unreasonable and shall be changed as
hereinafter ordered. The changed rates resulting from this Ordinance are hereby determined to
be just and reasonable rates to be observed and in force within the City.
SECTION 3. The Company has agreed to modify the rates proposed in its Statement of
Intent and the modified rates are reflected in the revised Tariff for Gas Service attached hereto as
Exhibit A.
SECTION 4. The maximum general service rates for sales and transportation of natural
gas rendered to residential, commercial and industrial consumers within the city limits of
Coppell, Texas by TXU Gas Distribution, a division of TXU Gas Company, a Texas corporation,
its successors and assigns, are hereby fixed and approved as set forth in the revised Tariff for Gas
Service attached hereto as Exhibit A. The rates reflected in the attached Rate Schedules entitled
Residential Service, Commercial Service, Industrial Sales, Industrial Transportation and
Industrial Sales & Transportation are found to be reasonable. Nothing contained herein shall
limit the right of industrial and transportation customers with competitive options to negotiate
rates with the Company that differ from approved tariffs.
SECTION 5. All electric generation customers are included as Industrial Transportation
customers under the applicable transportation rate schedule.
SECTION 6. The Rate Adjustment and Surcharge Provisions set forth in the revised
Tariff for Gas Service attached hereto as Exhibit A and entitled Gas Cost Adjustment, and Tax
Adjustment, are approved.
SECTION 7. The Company shall have the right to collect such reasonable charges as are
necessary to conduct its business and to carry out its reasonable rules and regulations. Such
miscellaneous service charges are identified in Rate Schedules 9001 through 9008 of the
attached revised Tariff for Gas Service.
SECTION 8. Cities’ rate case expenses are found to be reasonable and shall be
reimbursed by the Company. The Company is authorized to recover the rate case expenses
reimbursed to Cities and the Company’s rate case expenses, up to the amount agreed to, through
a per Mcf surcharge as set forth in the Rider entitled Surcharges in the attached revised Tariff for
Gas Service.
SECTION 9. The aforesaid rate schedules and riders herein approved shall be effective
for bills rendered on or after February 1, 2003.
SECTION 10. The rates set forth in this Ordinance may be changed and amended by
either the City or Company in any other manner provided by law. Service hereunder is subject to
the orders of regulatory bodies having jurisdiction, and to the Company’s Rules and Regulations
currently on file with the City.
SECTION 11. Unless otherwise noted herein, other than TXU Gas Distribution (a named
party), no person or entity has been admitted as a party to this rate proceeding.
SECTION 12. It is hereby found and determined that said meeting at which this
ordinance was passed was open to the public, as required by Texas law, and that advance public
notice of the time, place and purpose of said meeting was given.
SECTION 13. This Ordinance shall be served on TXU Gas Distribution by U.S. Mail to
the Company’s authorized representative, Autry Warren, Rates Manager, TXU Business
Services, 1601 Bryan Street, Dallas, Texas 75201-3411.
SECTION 14. Nothing contained in this Ordinance shall be construed now or hereafter
in limiting or modifying, in any manner, the right and power of the City under law to regulate the
rates and charges of TXU Gas Distribution.
SECTION 15. All ordinances, resolutions, or parts thereof, in conflict with this
Ordinance are repealed to the extent of such conflict. Examples of such ordinances or
resolutions that are deemed repealed are all ordinances or resolutions concerning Military Rates-
N, Cost of Service Adjustments, Plant Investment Cost Adjustments, and Weather Normalization
Adjustments. To the extent Public Authority Rates, Commercial Contract Rates or Military
Rates-N are in effect in the city those rates are specifically repealed as they are now a part of the
Commercial rates and are calculated in accordance with the revenue requirement for Commercial
customers.
SECTION 16. The rate schedules included in the Tariff for Gas Service supercede and
replace all other tariffed services provided by TXU Gas Distribution except as expressly
contained within the Tariff for Gas Service.
PASSED AND APPROVED, this the ______ day of ____________, 2002.
ATTEST: APPROVED:
______________________________ ______________________________
LIBBY BALL, CITY SECRETARY CANDY SHEEHAN, MAYOR
APPROVED AS TO FORM:
___________________________________
ROBERT E. HAGER, CITY ATTORNEY
DEPT: Parks and Recreation Department
DATE: December 10, 2002
ITEM #: 20
AGENDA REQUEST FORM
ITEM CAPTION:
Consider Approval of the Coppell Recreation Development Corporation Officers for 2002-2003 as follows:
President, Victor Burke; Vice President, Stephen Hafer; Secretary, Mark Tepper.
GOAL(S):
EXECUTIVE SUMMARY:
The Coppell Recreation Development Corporation Bylaws stipulate that the City Council should approve the
officers of the Corporation. These officers are elected during the Annual Meeting of the Corporation each year.
The Corporation members voted unanimously for the following officers:
President: Victor Burke
Vice President: Stephen Hafer
Secretary: Mark Tepper
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: ^CRDC Officers
DEPT: City Secretary
DATE: December 10, 2002
ITEM #: 21
AGENDA REQUEST FORM
ITEM CAPTION:
Consider approval of resignation of Sam Clark from the Planning and Zoning Commission and consider
appointment of a replacement.
GOAL(S):
EXECUTIVE SUMMARY:
FINANCIAL COMMENTS:
DIR. REVIEW: FIN. REVIEW: CM REVIEW:
Agenda Request Form - Revised 09/02 Document Name: %resign-1AgendaRequest
DATE: December 10, 2002
ITEM #: 22
AGENDA REQUEST FORM
NECESSARY ACTION RESULTING FROM WORK SESSION
Agenda Request Form - Revised 09/02 Document Name: %necessaryactionwork
DATE: December 10, 2002
ITEM #: 23
AGENDA REQUEST FORM
MAYOR AND COUNCIL REPORTS
A. Repor t by Mayor Sheehan regarding Dallas Regional Mobility Coalition - DART and
Legislative committee repor ts.
B. Repor t by Mayor Sheehan regarding holiday activities in Coppell.
C. Repor t by Councilmember Peters regarding the TEX-21 Quar terly Meeting.
D. Repor t by Councilmember Tunnell regarding National League of Cities Conference.
Agenda Request Form - Revised 09/02 Document Name: %mayorreport
DATE: Decmber 10, 2002
ITEM #: 24
AGENDA REQUEST FORM
NECESSARY ACTION RESULTING FROM EXECUTIVE SESSION
Agenda Request Form - Revised 09/02 Document Name: %necessaryactionexec