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CP 2006-12-12 NOTICE OF CITY COUNCIL MEETING AND AGENDA DECEMBER 12, 2006 DOUG STOVER, BILLY FAUGHT, Place 5 Mayor Mayor Pro Tem TIM BRANCHEAU, Place 1 MARSHA TUNNELL, Place 4 JAYNE PETERS, Place 2 MARVIN FRANKLIN, Place 6 BRIANNA HINOJOSA-FLORES, Place 3 BILL YORK, Place 7 JIM WITT, City Manager MEETING TIME AND PLACE: Call to Order 5:30 p.m. Council Chambers (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 12, 2006, at 5:30 p.m. for Executive Session, 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 reserves 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 1. Call to order. ag121206 Page 1 of 8 ITEM # ITEM DESCRIPTION EXECUTIVE SESSION (Closed to the Public) 2. Convene Executive Session A. Section 551.071, Texas Government Code - Consultation with City Attorney. 1. The City of Coppell and Coppell Independent School District opposition to a change of zoning request of the Billingsley Corporation in the City of Dallas, Zoning Case Number Z045- 107; and City of Coppell vs. CB Parkway Business Center VI, et al in the County Court at Law No. 3,; and CB Parkway Business Center, et al vs. City of Coppell, et al.; and City of Dallas vs. Douglas Stover, et al in the 191st District Court; and City of Coppell, et al vs. City of Dallas, et al in the 101st District Court. B. Section 551.072, Texas Government Code - Deliberation regarding Real Property. 1. Acquisition of property west of Coppell Road and south of Bethel. C. Section 551.087, Texas Government Code – Economic Development Negotiations. 1. Economic Development Prospects on the west side of Coppell. WORK SESSION (Open to the Public) 3. Convene Work Session A. Review of meeting with local businesses on December 4 regarding alcohol provisions. B. Discussion regarding the Nature Park. C. Review and Discussion of proposed Natural Gas Drilling Ordinance and related items. D. Discussion regarding appropriate zoning and land use for the Ardinger Tract. E. Update on Visionary and Strategic Work Effort. F. Discussion of Agenda Items. Adjourn Work Session. PUBLIC ANNOUNCEMENTS Public Service Announcements concerning local civic events and no Council action is required or permitted. ag121206 Page 2 of 8 ITEM # ITEM DESCRIPTION REGULAR SESSION (Open to the Public) 4. Convene Regular Session. 5. Invocation. 6. Pledge of Allegiance. 7. Citizens' Appearances. CONSENT AGENDA 8. Consider approval of the following consent agenda items: A. Consider approval of minutes: November 28, 2006. B. Consider approval of a 911 Public Safety Answering Point Telephone System Upgrade with Verizon Vesta at an approximate cost of $170,584.00, to be paid from the designated fund balance from the E-911 Fund; and authorizing the City Manager to sign. C. Consider approval of an Ordinance for PD-106R-SF-9, Hidden Valley, Lot 6, Block C, zoning change request from PD-106-SF-9 (Planned Development-106 Single Family-9) to PD-106R-SF-9 (Planned Development-106 Revised-Single Family-9), to allow for a pool and deck to be constructed along the rear property line, providing a variance to the required 5-foot setback, at 479 Hidden Valley Drive, and authorizing the Mayor to sign. D. Consider approval of an Ordinance for Case No. S-1170R2, Mariachi Grill with Private Club, zoning change request from S-1170R (Special Use Permit-1170 Revised) to S-1170R2 (Special Use Permit 1170 Revision 2), to allow an approximate 2,200-square-foot restaurant with private club to be located at 761 S. MacArthur, Suite 101, and authorizing the Mayor to sign. E. Consider approval of an Ordinance for text amendments to Chapter 12 Zoning of the Code of Ordinances, Sec. 12-42-1, revising the definitions of Convenience Store and Retail Stores and Shops, Sec. 12-29-3, Sign Regulations, prohibiting neon signs being ag121206 Page 3 of 8 ITEM # ITEM DESCRIPTION visible from outside of the building, except for “open” signs, and various revisions to Sec. 12-30-16, SUP regulations for Restaurants. F. Consider approval of an Ordinance for a text amendment to Chapter 12, Zoning of the Code of Ordinances, amending Sec. 12- 32A-3(K) deleting reference to requiring the mailing of public notices for telecommunication facility beyond the notification required for similar rezonings, as prescribed by state law, reducing the notification area to 200 feet, and authorizing the Mayor to sign. END OF CONSENT 9. PUBLIC HEARING: Consider approval of granting a variance of seventy (70') feet to Tetco Stores from the 300-foot prohibited requirement under Ordinance No. 2006-1143, Article 6-16, Section 6-16-2 of the Code of Ordinances, to a business selling or offering for sale alcoholic beverages, with a business address being 1301 E. Beltline. 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 the property owned by Cabot II – TX1L01, LP, described as Block A, Lots 2R of Amberpoint Business Park at Coppell (64.29 acres) and located at the southwest corner of Sandy Lake Road and Freeport Parkway. 11. Consider approval of an Ordinance designating Cabot II – TX1L01, LP, Reinvestment Zone No. 53, and authorizing the Mayor to sign. 12. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Cabot II – TX1L01, LP, and authorizing the Mayor to sign. 13. 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 the property owned by Texas Dugan Limited Partnership, described as Lot 4R, Block A, Freeport North Addition (6.405 acres) and located on Royal Lane, approximately 1,200 feet north of Bethel Road. ag121206 Page 4 of 8 ITEM # ITEM DESCRIPTION 14. Consider approval of an Ordinance designating Texas Dugan Limited Partnership, Reinvestment Zone No. 56, and authorizing the Mayor to sign. 15. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Texas Dugan Limited Partnership, and authorizing the Mayor to sign. 16. 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 the property owned by Coppell Commerce Center, Ltd. with personal property owned by DaVita Rx, Inc., described as Block D, Lots 1R & 1R1 of the Northlake 635 Business Park Addition(32.83 acres) and located at the southwest corner of Belt Line Road and Wrangler Drive. 17. Consider approval of an Ordinance designating Coppell Commerce Center, Ltd. (DaVita Rx, Inc.), Reinvestment Zone No. 54, and authorizing the Mayor to sign. 18. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and DaVita Rx, Inc., and authorizing the Mayor to sign. 19. 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 the property owned by International Business Machines Corporation, described as Block 5, Lots 1 & 2 of the Park West Commerce Center(29.2871 acres) and located at the northwest corner of Belt Line Road and Wrangler Drive. 20. Consider approval of an Ordinance designating International Business Machines Corporation, Reinvestment Zone No. 50, and authorizing the Mayor to sign. 21. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and International Business Machines Corporation, and authorizing the Mayor to sign. ag121206 Page 5 of 8 ITEM # ITEM DESCRIPTION 22. 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 the property owned by Industrial Developments International Texas, L.P., described as Lot 1, Block 1 of Belt Line Trade Center (27.072 acres) and located on the north side of Belt Line Road, east of Denton Tap Road. 23. Consider approval of an Ordinance designating Industrial Developments International Texas, L.P., Reinvestment Zone No. 52, and authorizing the Mayor to sign. 24. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Industrial Developments International Texas, L.P., and authorizing the Mayor to sign. 25. Consider approval of an Economic Development Agreement by and between the City of Coppell and Kimberly-Clark Global Sales, Inc. , and authorizing the Mayor to sign. 26. PUBLIC HEARING: Consider approval of Case No. ZC-620 The Duke Lesley Addition, zoning change request from A (Agriculture) to LI (Light Industrial) on Block A, containing 111.6 acres of property and HC (Highway Commercial) on Blocks B and C, containing 72.9 acres of property to allow the development of mixed uses, including retail, office, hotel and light industrial (office/warehouse) on a total of 184.5 acres of property located at the northwest corner of IH-635 and Beltline Road at the request of Duke Realty LP, being represented by Jack Evans, Pacheco Koch Consulting Engineers. 27. Consider approval of the Duke Lesley Addition, Blocks A, B and C, Preliminary Plat, to establish Blocks A, B and C, allowing for the submission of final plats prior to the development on 184.5 acres of property located at the northwest corner of IH-635 and Beltline Road at the request of Duke Realty LP, being represented by Jack Evans, Pacheco Koch Consulting Engineers. 28. Consider approval of the Duke Lesley Addition, Final Plat of Lesley Drive and the Extension of Dividend Drive and two building sites, Lots 1 & 2, Block C, to allow the construction of West Point Blvd. and the extension of Dividend Drive, containing approximately 11.54 acres of property, platting of Lots 1 & 2 containing 17.394 and 5.05 acres respectively, located north ag121206 Page 6 of 8 ITEM # ITEM DESCRIPTION of IH-635 and west of Beltline Road at the request of Duke Realty LP, being represented by Jack Evans, Pacheco Koch Consulting Engineers. 29. Consider approval of an Ordinance for Case No. PD-216-H, Robertson Pools, zoning change request from H and SF-12 (Historic and Single Family- 12) to PD-216-H (Planned Development-216-Historic), to approve a detail Site Plan, to allow a 1,740-square-foot expansion to an existing 3,120- square-foot building, construction of a 4,970-square-foot building, outside storage and additional parking on approximately 2.65 acres of property located at 569 Coppell Road, north of Bethel Road, and authorizing the Mayor to sign. 30. Consider approval of accepting the resignation of Wendy Dunn from the Library Board and appointing a member to fill the unexpired term. 31. Necessary action resulting from Work Session. 32. City Manager's Report. A. Capital Facilities Update. B. Old Town Update. 33. Mayor and Council Reports. A. Report by Mayor Stover regarding the Metroplex Mayors’ Meeting. 34. Necessary Action Resulting from Executive Session. Adjournment. ____________________________________ Douglas N. Stover, Mayor CERTIFICATE I certify 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 _________________, 2006, at __________________. ____________________________________ Libby Ball, City Secretary ag121206 Page 7 of 8 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). ag121206 Page 8 of 8 KEY TO COUNCIL GOALS ICONS 2007          Economic Development • Promote highest and best use of Lesley tract • Continue to explore large tract development options • Continue “hot spot” focus • Refine “Old Coppell” vision • Assess use/sale/acquisition of City property • Develop strategy to attract and retain high value office/retail/development          Quality Public Facilities & Infrastructure • Explore funding sources for IMF • Implement ½-cent sales tax reallocation for parks • Continue focus on local/regional transportation efforts • Provide quality park and recreation facilities       Excellent City Services & High Citizen Satisfaction • Continue strategic planning for future costs of service delivery • Timely response with quality service delivery • Optimize citizen communication efforts • Promote citizen involvement • Actively participate in the legislative process            Sense of Community • Develop and support community special events • Encourage and evaluate teen initiatives • Reassess viability of City cemetery • Evaluate services and programs for senior citizen community • Continue support for social services benefiting Coppell citizens • Continue partnership with public entities serving our community         Fiscal Stability • Continue and refine financial planning and forecasting • Continue systematic management of debt and expenditures • Balance expenditures with ability to maintain over time • Perform cost analysis on all approved projects and programs prior to implementation • Minimize potential impact of external factors and developments     Neighborhood Integrity & Code Enforcement • Maintain communication with neighborhoods and the community • Update Master Plan and Zoning as required • Continue proactive neighborhood integrity programs       Safe Community • Maintain and improve existing excellent level of service • Continue focus on Homeland Security • Provide quality public education programs • Continue traffic/speed control efforts   DATE: December 12, 2006 ITEM #: ES-2   EXECUTIVE SESSION A. Section 551.071, Texas Government Code – Consultation with City Attorney. 1. The City of Coppell and Coppell Independent School District opposition to a change of zoning request of the Billingsley Corporation in the City of Dallas, Zoning Case Number Z045-107; and City of Coppell vs. CB Parkway Business Center VI, et al in the County Court at Law No. 3,; and CB Parkway Business Center, et al vs. City of Coppell, et al.; and City of Dallas vs. Douglas Stover, et al in the 191st District Court; and City of Coppell, et al vs. City of Dallas, et al in the 101st District Court. B. Section 551.072, Texas Government Code – Deliberation regarding Real Property. 1. Acquisition of property west of Coppell Road and south of Bethel. C. Section 551.087, Texas Government Code – Economic Development Negotiations. 1. Economic Development Prospects on the west side of Coppell. Agenda Request Form - Revised 02/04 Document Name: %executivesession AGENDA REQUEST FORM DATE: December 12, 2006 ITEM #: WS-3 WORK SESSION A. Review of meeting with local businesses on December 4 regarding alcohol provisions. B. Discussion regarding Nature Park. C. Review and Discussion of proposed Natural Gas Drilling Ordinance and related items. D. Discussion regarding appropriate zoning and land use for the Ardinger Tract. E. Discussion of Agenda Items. Agenda Request Form - Revised 02/04 Document Name: %worksession AGENDA REQUEST FORM PARKS AND RECREATION BOARD MEMORANDUM Date: December 4, 2006 To: Mayor and City Council From: Parks and Recreation Board Re: Board Support of a Nature Center for Wagon Wheel Park. Background: The Coppell Park Board has been working with a group of citizens in support of a Nature Park located in Wagon Wheel Park. This group is comprised of a number of local students, citizen volunteers, and CISD teachers. The idea of a Nature Park in Coppell has been considered for many years, was formalized into a real project by several students working through the Kiwanis Club and was brought to the Park Board for consideration as the plans came together. A Nature Center has been near the top of the Project Priority List for the Park Board for the past couple of years in anticipation of this exciting prospect coming to the forefront. The idea of a Coppell Nature Park was first formalized with the creation of an Ad Hoc Learning Park Committee in 1996. The Committee generated a report recommending the many community benefits of a proposed Wagon Wheel Nature Preserve. This report preceded the city’s purchase of the Wagon Wheel property. The focus of the property, of course, became the solution to the ball field problem created when CISD cancelled the lease allowing the city to use the area behind the Middle School West campus for baseball. With the push to get ball fields constructed, the idea of a Nature Preserve was quickly placed on the back burner. This idea lay under the radar until the Kiwanis Club began talking to CISD students, community leaders and the Parks and Recreation Department in 2003 about the prospect of reviving this initiative. As a result of these discussions, the Coppell Nature Park Mentoring Committee was formed with a focus on student involvement relating to the Service Learning Initiative at CISD. In excess of 75 adult “mentors” have taken on various roles on the committee, necessitating dividing the committee into 19 separate sub-committees, each specializing in a distinct component of the Nature Park. Sub-committees tackled issues such as trail design and layout, trail amenities, signage, education center design, bridges, specie identification, and many others. The result of these efforts is an intensely focused group of volunteers ready to get things done. And have they gotten things done. A series of nature trails have already been constructed and educational signage, directional signage, seating, and bat houses have been installed. All this has been completed with volunteer labor and donated materials. Two major components still in the planning phases are an observation deck, and an Education Center. The Mentoring Committee is working toward obtaining donations of materials for the observation deck, and has the labor lined up and ready to get started when the materials are secured. This will be a wood deck overlooking the creek, which will serve as an instruction area and a spot to take in the natural environment. The proposed Education Center is also in the planning stages and the Mentoring Committee has requested Park Board endorsement of the idea. In fact, the Park Board discussed this item at their regularly scheduled September 5, 2006 meeting and gave the Committee their endorsement of the idea of a facility at Wagon Wheel Park, without designating a specific location within the Park. The benefits that such a facility will offer the community are many. A building for nature studies and observations allows for the opportunity for the city’s environmental and eco-education programs to be located here, learning opportunities about the local woodland, grassland and stream habitats within the urban environment, and increased outdoor education for the science and other classes within the city education system. The youth of the community can benefit from learning experiences, interactions with our dwindling natural areas, and opportunities for community service projects. As was mentioned earlier, the idea behind the creation of a Coppell Nature Park has been entirely a grass roots project. The Park Board has remained informed of the progress through regular updates from the committee and presentations regarding the dream for a facility. One aspect of the project that particularly appeals to the Park Board is that after the proper approvals are received from the city to proceed, the committee will apply for grant funds to construct a building. Representatives from the committee have indicated that they have no intention that the city fund the project. They are simply looking for the official endorsement of the city so that any grant application can include permission from the property owner to construct the facility. City Council Action requested: The Park Board is making their collective voices heard of the endorsement of this project. City Council action requested is to likewise endorse the idea of an Education Center, which will become the hub of the Coppell Nature Park, to be located in Wagon Wheel Park. The Park Board and the Parks and Recreation Department will work with the Committee to determine the best location, and bring to City Council for approval with a review of the revised master plan for the park. From: Bill York To:JWITT@ci.coppell.tx.us Date: 12/4/2006 8:24:08 AM Subject: Real Property I would like to see the property formerly known as the Ellington come back as a work session item. We need to discuss the possibilities of where it may go or develop. December meeting would be fine with me. Thanks Bill Bill York City Council Place 7 From: Tim Brancheau To:JWITT@ci.coppell.tx.us Date: 12/3/2006 12:52:51 PM Subject: Ellington Place Jim, Please consider this as my request to place on the December 12 work session portion of the council agenda discussion regarding the appropriate land use of the Ardinger Tract, commonly known as Ellington Place. Thank, Tim DATE: December 12, 2006 ITEM #: 7   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: %citapp.doc WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Secretary December 12, 2006 8/A ✔ PROCEDURAL Consider approval of minutes: November 28, 2006. Minutes of the City Council meeting held on November 28, 2006. Staff recommends approval. %minutes MINUTES OF NOVEMBER 28, 2006 The City Council of the City of Coppell met in Regular Called Session on Tuesday, November 28, 2006, at 5:30 p.m. in the City Council Chambers of Town Center, 255 Parkway Boulevard, Coppell, Texas. The following members were present: Doug Stover, Mayor Billy Faught, Mayor Pro Tem Tim Brancheau, Councilmember Jayne Peters, Councilmember (late arrival) Brianna Hinojosa-Flores, Councilmember Marsha Tunnell, Councilmember Marvin Franklin, Councilmember Bill York, Councilmember Also present were City Manager Jim Witt, City Secretary Libby Ball and City Attorney Robert Hager. 1. Call to order. Mayor Stover 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. The City of Coppell and Coppell Independent School District opposition to a change of zoning request of the Billingsley Corporation in the City of Dallas, Zoning Case Number Z045-107; and City of Coppell vs. CB Parkway Business Center VI, et al in the County Court at Law No. 3,; and CB Parkway Business Center, et al vs. City of Coppell, et al.; and City of Dallas vs. Douglas Stover, et al in the 191st District Court; and City of Coppell, et al vs. City of Dallas, et al in the 101st District Court B. Section 551.072, Texas Government Code - Deliberation regarding Real Property. cm112806 Page 1 of 10 1. Acquisition of real property for construction of water line improvements. 2. Acquisition of real property for construction of Bethel Road improvements. C. Section 551.087, Texas Government Code – Economic Development Negotiations. 1. Economic Development Prospects on the west side of Coppell. D. Section 551.074, Texas Government Code - Personnel Matters. 1. City Manager Evaluation. 2. Deputy City Manager Evaluation. Councilmember Peters arrived prior to convening Executive Session. Mayor Stover convened into Executive Session at 5:41 p.m. as allowed under the above-stated article. Mayor Stover recessed the Executive Session at 6:34 p.m. and opened the Work Session. WORK SESSION (Open to the Public) 3. Convene Work Session A. Presentation by architect regarding the Site Layout for the Senior/Community Center. B. Request by Mr. Madden with Coppell Girls’ Softball Association regarding sponsorships. C. 2007 Legislative Agenda. D. DFW Airport Revenue Sharing and Economic Development. E. Update on Visionary and Strategic Work Effort. F. Discussion of Agenda Items. REGULAR SESSION (Open to the Public) 4. Convene Regular Session. 5. Invocation. Councilmember Franklin led those present in the Invocation. ag112806 Page 2 of 10 6. Pledge of Allegiance. Mayor Stover led those present in the Invocation. 7. Citizens' Appearances. There were no citizens signed up to speak under this item. CONSENT AGENDA 8. Consider approval of the following consent agenda items: A. Consider approval of minutes: November 14, 2006 November 15, 2006. B. Consider approval of awarding a contract to Gomez Floor Covering for the Town Center carpet replacement project in an amount of $112,752.70, as budgeted in the Infrastructure Maintenance Fund. C. Consider approval for the purchase of a replacement backhoe for the Utility Operations Division from Equipment Support Services, Inc., in an amount of $78,595.78 as budgeted. D. Consider approval for the purchase of a replacement dump truck for the Utility Operations Division from Rush Truck Centers of Texas, L.P., in an amount of $79,732.00 as budgeted. E. Consider approval of entering into supplemental agreements with TXU Electric Delivery Company for street lighting services on West Sandy Lake Road, from S.H. 121 to Coppell Road, and on Royal Lane, south of Sandy Lake Road, in an amount of $65,800.86 as provided for in CIP funds; and authorizing the City Manager to sign. ag112806 Page 3 of 10 F. Consider approval of awarding Bid #Q-0906-02 for the Exterior Overcoating of Water Tower One to N.G. Painting, L.P., in an amount of $80,000, as budgeted. G. Consider approval of a Resolution amending Resolution No. 010996.3, as heretofore amended, with regard to fire protection fees, food establishment fees, mobile food vending fees and special event fees, and authorizing the Mayor to sign. Action: Councilmember Tunnell moved to approve Consent Agenda Items A, B, C, D, E, F, and G carrying Resolution 2006-1128.1. Councilmember Peters seconded the motion; the motion carried 7-0 with Mayor Pro Tem Faught and Councilmembers Brancheau, Peters, Hinojosa-Flores, Tunnell, Franklin and York voting in favor of the motion. Item 12 was considered at this time. See Item 12 for minutes. 9. 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 the property owned by Texas Dugan Limited Partnership, described as Lots 2R1 and 2R2, Block A, Duke-Freeport Addition (16.510 acres) and located at the NWC of Bethel Road and Freeport Parkway. Presentation: Mindi Hurley, Economic Development Coordinator, made a presentation to the Council. Public Hearing: Mayor Stover opened the Public Hearing and advised that no one had signed up to speak on this proposal. ag112806 Page 4 of 10 Action: Councilmember Faught moved to close the Public Hearing and approve 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 the property owned by Texas Dugan Limited Partnership, described as Lots 2R1 and 2R2, Block A, Duke-Freeport Addition (16.510 acres) and located at the NWC of Bethel Road and Freeport Parkway. Councilmember Peters seconded the motion; the motion carried 7-0 with Mayor Pro Tem Faught and Councilmembers Brancheau, Peters, Hinojosa-Flores, Tunnell, Franklin and York voting in favor of the motion. 10. Consider approval of an Ordinance designating Texas Dugan Limited Partnership, Reinvestment Zone No. 51, and authorizing the Mayor to sign. Presentation: Mindi Hurley, Economic Development Coordinator, made a presentation to the Council. Action: Councilmember Franklin moved to approve: Item 10 Ordinance No. 2006-1144 designating Texas Dugan Limited Partnership, Reinvestment Zone No. 51, and authorizing the Mayor to sign; and Item 11 Resolution No. 2006-1128.2 approving a Tax Abatement Agreement between the City of Coppell and Texas Dugan Limited Partnership, and authorizing the Mayor to sign. Councilmember York seconded the motion; the motion carried 7-0 with Mayor Pro Tem Faught and Councilmembers Brancheau, Peters, Hinojosa-Flores, Tunnell, Franklin and York voting in favor of the motion. ag112806 Page 5 of 10 11. Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Texas Dugan Limited Partnership, and authorizing the Mayor to sign. This item was considered under Item 10. See Item 10 for minutes. 12. Presentation by Lorell Stewart regarding police patrols on Denton Tap Road. Presentation: Lorell Stewart made a presentation regarding traffic and protecting students. Nazem Mrznazi addressed council regarding his concerns over the traffic on Denton Tap. Items 14 and 15 were considered at this time. See Items 14 and 15 for minutes. 13. Necessary action resulting from Work Session. There was no action necessary under this item. 14. Mayor and Council Reports. A. Report by Councilmember Tunnell regarding Lewisville ISD Veteran’s Day Recognition. A. Councilmember Tunnell reported she had attended the Veteran’s Day Ceremony at LISD where they recognized the families of four Lewisville students who have lost their lives in the current war. 15. Council Committee Reports. A. Carrollton/Farmers Branch ISD/Lewisville ISD – Councilmember Tunnell. B. Coppell ISD – Mayor Pro Tem Faught and Councilmember York. ag112806 Page 6 of 10 C. Coppell Seniors – Mayor Pro Tem Faught and Councilmember Brancheau. D. Dallas Regional Mobility Coalition - Councilmember Peters. E. Economic Development Committee - Councilmembers Peters and Franklin. F. Metrocrest Hospital Authority - Councilmember Tunnell. G. Metrocrest Medical Foundation - Councilmember Hinojosa-Flores. H. Metrocrest Medical Services – Councilmember Hinojosa- Flores. I. Metrocrest Social Service Center – Councilmember York. J. North Texas Council of Governments - Councilmember Peters. K. NTCOG/Regional Emergency Management - Councilmember Franklin. L. North Texas Commission - Councilmember Brancheau. M. Senior Adult Services – Mayor Pro Tem Faught. A. Councilmember Tunnell advised that LISD would be holding early education screening the coming week; the first day of school for both LISD and CFBISD would be August 27; Riverchase Elementary of CFBISD is hosting an angel tree at the school; recruiting is being done for the academies; and the education foundation had a fundraising breakfast which raised $100,000. B. Mayor Pro Tem Faught reported that CISD was very supportive of the crosswalk changes; the Board approved staff to explore some concepts for an academy at the high school level. Mayor Stover recognized the Band’s performance at their recent competition and commented on the football team and volleyball team. C. There was no report on this item. D. Councilmember Peters stated that all the transportation groups have been working on their legislative agendas; the Texas Transportation Commission will be returning to the North Texas Region in January. E. Councilmember Franklin reported the committee had met and approved an abatement for a medical office facility at SH 121 and Denton Tap; Hard Eight has steel going up; discussions continue regarding Old Coppell. ag112806 Page 7 of 10 F. There was no report on this item. G. There was no report on this item. H. There was no report on this item. I. Councilmember York advised the Holiday Open House would be Thursday, December 14 from 5:30 to 7:00 at 2540 Old Denton Road. J. There was no report on this item. K. There was no report on this item. L. Councilmember Brancheau reported that the Commission continues to meet the troops at DFW Airport. M. Mayor Pro Tem Faught stated that the Bookworm Bash in November was a great success; citizens are reminded that there will be many opportunities to volunteer during the holiday season. At this time, Council reconvened into Work Session to complete items not completed in the pre-session. WORK SESSION (Open to the Public) 16. Convene Work Session A. Presentation by architect regarding the Site Layout for the Senior/Community Center. B. Request by Mr. Madden with Coppell Girls’ Softball Association regarding sponsorships. C. 2007 Legislative Agenda. D. DFW Airport Revenue Sharing and Economic Development. E. Update on Visionary and Strategic Work Effort. F. Discussion of Agenda Items. At this time, Council reconvened into Executive Session to complete items not completed in the pre-session. ag112806 Page 8 of 10 EXECUTIVE SESSION (Closed to the Public) 17. Convene Executive Session A. Section 551.071, Texas Government Code - Consultation with City Attorney. 1. The City of Coppell and Coppell Independent School District opposition to a change of zoning request of the Billingsley Corporation in the City of Dallas, Zoning Case Number Z045-107; and City of Coppell vs. CB Parkway Business Center VI, et al in the County Court at Law No. 3,; and CB Parkway Business Center, et al vs. City of Coppell, et al.; and City of Dallas vs. Douglas Stover, et al in the 191st District Court; and City of Coppell, et al vs. City of Dallas, et al in the 101st District Court B. Section 551.072, Texas Government Code - Deliberation regarding Real Property. 1. Acquisition of real property for construction of water line improvements. 2. Acquisition of real property for construction of Bethel Road improvements. C. Section 551.087, Texas Government Code – Economic Development Negotiations. 1. Economic Development Prospects on the west side of Coppell. D. Section 551.074, Texas Government Code - Personnel Matters. 1. City Manager Evaluation. 2. Deputy City Manager Evaluation. Mayor Stover reconvened into Executive Session at 8:21 p.m. as allowed under the above-stated article. Mayor Stover adjourned the Executive Session at 10:31 p.m. and reopened the Regular Session. REGULAR SESSION (Open to the Public) Item 13 was considered at this time. See Item 13 for minutes. ag112806 Page 9 of 10 18. Necessary Action Resulting from Executive Session. Action: Councilmember Peters moved to authorize the City Manager to make an earnest money deposit for option amount of $15,000 for the purchase of real property located at the intersection of Coppell and Bethel known as the Kirkland House and to authorize the City Manager to bring back a sales contract for the purchase of said property. Councilmember Franklin seconded the motion; the motion carried 7-0 with Mayor Pro Tem Faught and Councilmembers Brancheau, Peters, Hinojosa-Flores, Tunnell, Franklin and York voting in favor of the motion. Action: Councilmember Peters moved to approve a three (3%) percent merit increase for the City Manager calculated on his base salary prior to 10-1-06 and retroactive back to 10-1-06. Councilmember York seconded the motion; the motion carried 7-0 with Mayor Pro Tem Faught and Councilmembers Brancheau, Peters, Hinojosa- Flores, Tunnell, Franklin and York voting in favor of the motion. There being no further business to come before the City Council, the meeting was adjourned. ____________________________________ Douglas N. Stover, Mayor ATTEST: ____________________________________ Libby Ball, City Secretary ag112806 Page 10 of 10 WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Police December 12, 2006 8/B ✔ CONTRACT/BID or PROPOSAL Consider approval of a 911 Public Safety Answering Point Telephone System Upgrade with Verizon Vesta at an approximate cost of $170,584.00, to be paid from the designated fund balance from the E-911 Fund; and authorizing the City Manager to sign. Currently the Public Safety Answering Point (PSAP) is utilizing a phone system designed and implemented by Tel Control, Inc. In February 2006 the City received notification from TCI that they would not provide service for the system past the date of 07/31/06. In August 2006 the City issued an RFP for a 911 PSAP system upgrade. Verizon Vesta was recommended by the committee reviewing the proposals. Please see the attached documentation. Funds are available in Designated Fund Balance - E911 for this purchase. Staff recommends approval. )911 PSAP MEMORANDUM TO:Roy Osborne, Chief of Police; Gary Nix, Deputy Chief FROM:Derrick Watson, Lieutenant. DATE:11-03-2006. REF:911 Public Safety Answering Point Telephone System Upgrade. The Coppell Police Department Public Safety Answering Point (PSAP) is currently utilizing a phone system designed and implemented by Tel Control, Inc. (TCI). TCI is also the vendor that provided the Department with its current Computer Aided Dispatch (CAD) and Records Management Systems (RMS). The current telephone system is sufficient to receive National Emergency Number Association (NENA) Phase I compliance, with most wireless signal providers. Phase I compliant PSAP phones are able to receive E911 cell phone calls and provide the dispatcher with a carrier name, cell tower location and call back number. Rest assured that if you are utilizing a cellular service inside of Coppell and dial 911 for assistance your call will be routed to a PSAP. NENA phase II compliance, which the current system is unable to provide, is capable of providing the carrier name, call back number and geographic location based upon the Global Positioning System chip embedded in most cellular phones. A conservative estimate is that approximately 60% of calls received by our PSAP are generated by cell phones. This is not a surprise due to the proliferation of cell phones and the number of vehicles passing through Coppell on a daily basis. In February 2006 the Department received notification from TCI that they would not provide service past the date of 07/31/2006 for their telephone system. We made the decision in June 2006 to publish a Request for Proposal. On Tuesday, August 8, 2006 the City issued an RFP for a 911 PSAP system upgrade. Attached to this memorandum is the scoring table for the 911 Public Safety Answering Point Telephone System Upgrade. Rick Moore, Director of Information Services; Derrick Watson, Police Lieutenant; and Randal Burkett, Public Safety Dispatch Supervisor reviewed and scored the bid proposals on Thursday September 28, 2006. From that meeting a rank ordered list was developed and follow up contact was made with the top four vendors. Additional information was obtained by site visits and / or demonstrations of the proposed equipment. The following is a synopsis of the four systems considered: 1. Verizon Vesta – Verizon currently routes all inbound E911 traffic to the Coppell Public Safety Answering Point. Randal Burkett and Derrick Watson visited the Sherman, Texas PSAP. Communications Manager Cindy Carr was pleased with the Graphical User Interface, installation and performance of the Vesta telephone system. It interacted easily with their current Computer Aided Dispatch system, is NENA phase II compliant, and works in conjunction with their Verizon phone lines. Sherman is a city of approximately 41,000 people and the call load on their PSAP is similar to the one experienced by Coppell. Their vendor provides 24/7 technical support and posted their trouble line phone number on the PSAP terminals. Verizon has 24/7 technical support, via telephone, available and local system technicians available for on-site visits should an emergency arise. The proposed system is NENA phase II compliant and should be able to integrate with the current Computer Aided Dispatch system. Proposed system cost 1st year: $102,909.97. Maintenance Year 2: $15,701.07. Maintenance Year 3: $16,486.12. Maintenance Year 4: $17,310.43. Maintenance Year 5: $18,175.95. Estimated total system cost installation + maintenance for five years: $170,583.54. 2. 911 Quick Link – 911 Quick Link is a Colorado based company that provided digital phone service for over 250 different organizations. Their system has the ability to interface with Verizon, is NENA phase II compliant and should be able to interface with our Computer Aided Dispatch system. Telephone references regarding their system were very positive in nature. It should be noted that Coppell Public Safety Dispatchers preferred the 911 Quick Link Graphical Users Interface. 911 had a local technician based in Dallas and available for service calls as well as 24/7 technical support. On October 27, 2006 Randal Burkett, Derrick Watson and James Loggins (Information Services) met with representatives from 911 Quick Link for an on-site demonstration of their system capabilities. The proposed system had extensive report writing capability, was simple to operate, and maintained data in a SQL server (familiar to Coppell Information Services). Proposed system cost 1st year: $94,115.20. Maintenance Year 2: $7906.00. Maintenance Year 3: $7906.00. Maintenance Year 4: $7906.00. Maintenance year 5: $7906.00. It should also be noted that additional desired featured such as the Management Information System $5000, Quickprint Wireless Data Management $5000, Reverse ALI $500, Make Busy Switch $500, Forced Conference/Observe $2,500 would raise the initial starting cost to $107,615.20. Estimated total system cost installation + maintenance for five years $139,239.20. 3. Positron Viper – Randal Burkett and Derrick Watson met with Treva Jackson at DFW / DPS. She has been satisfied with the ability of the system to interface with Verizon. It is of note that they contract their maintenance through Tarrant County who utilizes ATT for repairs. The proposed system is NENA phase II compliant and should be able to integrate with the current Computer Aided Dispatch system. Proposed system cost 1st year: $112,768.40. Maintenance – 5 years: $94,033.01. Estimated total system cost installation + maintenance for five years $206,801.41. 4. IPC GEN911 – IPC is the company that purchased our Computer Aided Dispatch vendor “GEO911”. IPC Command Systems Inc. has a long history of providing digital telephone service within the financial services industry. Their phone system is designed to integrate with our current Computer Aided Dispatch system, it is NENA phase II compliant, they have 24/7 telephone support and technicians available in the Dallas area for problems that can’t be resolved remotely. They are proposing the retention of the current TCI designed Graphical User Interface (an interface that has proven awkward to use and training intensive) and a change to the ANI/ALI system that will make the phone system phase II compliant. On October 23, 2006 Derrick Watson and Randal Burkett met with Bedford County, Tennessee Communications Director Cathey Mathis and observed the phone system in use. Ms. Mathis confirmed that they were a former TCI customer and that they were extremely satisfied with the improved level of service from IPC. Proposed system cost 1st year: $89,108.00. Maintenance Year 2: $9,120.00. Maintenance Year 3: $9576.00. Maintenance Year 4: $10,054.80. Maintenance Year 5: $10,557.54. Estimated total system cost installation + maintenance for five years: $128,416.34. It is the recommendation of the committee that serious consideration be given to the selection of the Verizon Vesta proposal. Prior to adopting the current TCI phone Coppell’s PSAP utilized Verizon’s “MAARS” system and was satisfied with their performance and maintenance. It is believed that selection of a proven technology (Plant’s Vesta phone system), a vendor with local technicians, 24/7 remote maintenance, and an established company will provide the City of Coppell with the best value for the money. 911 Public Safety Answering Point Telephone System Upgrade Scoring Table R. Moore R. Burkett D. Watson Avg. Score Positron Viper 80 85 85 83.3 IPC GEN911 80 75 90 81.7 TCI Synapse 55 40 65 53.3 Verizon Vesta 85 87 90 87.3 Nine One One Quick Link 75 95 80 83.3 Embarq Viper 60 75 70 68.3 Embarq Vesta Pallas 60 75 75 70 Rank Order 1. Verizon Vesta – 87.3. 2. 911 Quick Link – 83.3. 3. Positron Viper – 83.3. 4. IPC Gen 911 – 81.7. 5. Embarq Vesta – 70.0. 6. Embarq Viper – 68.3. 7. TCI Synapse – 53.3. Telephone Upgrade Cost Comparison Chart$102,910$107,615.20$112,768.40$89,108.00$67,674$31,624.00$94,033.01$39,308.34$170,583.54$139,239.20$206,801.41$128,416.34$0$50,000$100,000$150,000$200,000$250,000Verizon Vesta 911 Quick Link Positron Viper IPC GEN911Initial CostMaintenance thru Year 5Total Cost System Agreement Rev. 10.04.06 Page 1 of 11 ESC # 0148 This System Agreement (“Agreement”), effective as of the day of , 20 , is made by and between A. Verizon Entity Name (“Verizon”): Verizon Business Financial Management Corporation on behalf of VERIZON SELECT SERVICE, INC. B. Customer Name (“Customer”) CITY OF COPPELL / COPPELL POLICE DEPT E911 Address: 500 EAST CARPENTER FRWY Address: 255 E. PARKWAY BLVD City: IRVING State: TX Zip Code: 75062 City: COPPELL State: TX Zip Code: 75019 Contact Name and Phone Number: BRIAN BERESFORD 972.837.5548 Customer Billing Address (if different): PO BOX 9478 ATTN: ACCTS PAYABLE Quote Number (if applicable) 8-2AH5QL City: COPPELL State: TX Zip Code: 75019-0478 Contact Name and Phone Number: Jim Witt, City Manager (972) 304-3672 C. Select all applicable options: New System/Service Sale Adds/Upgrade to Existing System Installation Services VERIZON MAINTENANCE SERVICES Data Maintenance Next Business Day Remote Data Maintenance 4-Hour Remote Data Maintenance 4-Hour On-Site Data Maintenance 8-Hour On-Site Video Central Support Next Business Day On-Site Video Central Support Next Business Day Remote Connectivity Assurance IP Phones Next Business Day IP Telephony Application Server Platform 4-Hour Remote IP Telephony Application Server Platform 4-Hour On-Site IP Telephony Application Server Platform 8-Hour On-Site IP Telephony Software Support IP Telephony Software Support with Upgrades Integrated Maintenance Software Support Integrated Maintenance Software Support with Upgrades Integrated Maintenance 8x5x4 Advance Replacement Integrated Maintenance 8x5x4 On-Site Support Integrated Maintenance 8x5 Next Business Day Advance Replacement Integrated Maintenance 8x5 Next Business Day On-Site Support Verizon Maintenance Services Cont’d. Integrated Maintenance 24x7x2 Advance Replacement Integrated Maintenance 24x7x4 Advance Replacement Integrated Maintenance 24x7x2 On-Site Support Integrated Maintenance 24x7x4 On-Site Support 8x5 Switch & Phones 8x5 Switch & Proprietary Phones 8x5 Switch Only 8x5 Ancillary/Auxiliary Equipment 8x5 Nortel Norstar 8x5 NEC Electra Elite 8x5 Business Communication Manager 8x5 Centrex CPE 24x7 Switch & Proprietary Phones 24x7 Switch Only 24x7 Ancillary/Auxiliary Equipment 24x7 Nortel Norstar 24x7 NEC Electra Elite 24x7 Business Communication Manager 24x7 Voice Service Plus 24x7 Centrex CPE Software Release Subscription (SRS) On-Site Technician Supplemental Warranty Coverage (extends the standard warranty to 24 hour coverage for major failures during the warranty period) Other System Agreement Rev. 10.04.06 Page 2 of 11 ESC # 0148 Verizon Maintenance Services Cont’d. Third Party Maintenance Services - Maintenance will be provided in accordance with the vendor’s terms and conditions and except for payment, warranty, and limitation of liability, the terms and conditions of the Agreement shall not apply to such maintenance services. Nortel Extended Service Cisco SmartNet Other: D. Payment Options: Cash Purchase Lease/Financing Verizon Credit Inc. Third Party Lease/Financing (must have prior written approval of Verizon) E-Rate/USF Funding Application No. Tax Exempt No. 75-1183207 E. The total price of the System and/or services being purchased by the Customer is: System Price $ 102,909.97 Professional Services Price $ Security Solutions Services Price $ Maintenance Service Voice Maintenance Service for Year(s)$ Managed Network Solutions Service for Year(s)$ Third Party Maintenance Service for Year(s)$ Supplemental Warranty Coverage $ Applicable taxes (estimated)$ TOTAL PRICE $ Down Payment $ -0- Balance Due $ 102,909.97 ________________ Customer Initials System Agreement Rev. 10.04.06 Page 3 of 11 ESC # 0148 F. Maintenance Service Billing Option: Pre-paid Billing: years $ (Annual Rate) Deferred Billing (deferred until warranty expiration): years $ $ $ $ $ (Year 1) (Year2) (Year 3) (Year 4) (Year 5) Bill deferred payment (check one): annually semi-annually quarterly monthly G. Attachments Addendum for Equipment/Services Subject to E-Rate Funding Call Center Software, Support and Professional Services Exhibit Equipment Sales and Installation Exhibit Managed Network Solutions Exhibit Professional Services Exhibit Quote Service Plan Description(s) Statement of Work Voice Maintenance Exhibit THE TERMS AND CONDITIONS OF THIS AGREEMENT CONTINUE ON THE FOLLOWING PAGES ______________ Customer Initials System Agreement Rev. 10.04.06 Page 4 of 11 ESC # 0148 1. Scope of Agreement. Subject to the terms and conditions of this Agreement, Verizon will provide Customer, either directly or in conjunction with such subcontractors as it may select, the equipment, software, installation services, maintenance and/or professional services (hereinafter collectively the “System”) as described in this Agreement and as further described in a Statement of Work and any Exhibit attached hereto. 1.1 For Equipment Sale and Installation Services: Verizon will provide and, if applicable, install the equipment as set forth in the applicable quote and the Equipment and Installation Services Exhibit. 1.2 For Maintenance Services: Verizon will provide the maintenance services as set forth in the applicable quote and the Call Center Software, Support and Professional Services Exhibit, the Maintenance Services Exhibit and/or the Managed Network Solutions Exhibit. 1.3 For Professional Services: Verizon will provide the professional services as set forth in the applicable quote and the Professional Services Exhibit. All applicable Statements of Work and Exhibits attached hereto are incorporated herein and made a part of this Agreement. 2. Fees and Payment. 2.1 Customer will pay all fees for the System as set forth on Pages 2 and 3 of this Agreement and the applicable quote or Statement of Work, subject to additions and deductions made by written Change Order(s). Customer is responsible for applicable taxes, shipping, handling, telecommunication surcharges and other charges applicable to the equipment and/or services provided under this Agreement. Customer agrees either to pay to Verizon the amount of all applicable taxes (as determined by tax authorities) or to provide upon execution of this Agreement evidence of exemption acceptable to Verizon. 2.2 Payments are due within thirty (30) days of receipt of the invoice (“Due Date”) and any payment not received by the Due Date shall be subject to a late payment charge of the lesser of one and one-half percent (1.5%) per month and the maximum amount allowed by law. Late payment charges will be assessed monthly against the amount due. Should Customer dispute an amount invoiced, Customer shall pay the undisputed portion of that invoice and promptly notify Verizon in writing of the amount and nature of the dispute and the parties shall cooperate to resolve the dispute pursuant to Section 15 of this Agreement. Verizon reserves the right to suspend or terminate any or all Services or terminate the provision, installation or repair of any or all equipment subject to this Agreement immediately if Customer is more than sixty (60) days overdue for payments that have not been disputed in good faith. 2.3 The down payment listed on Page 2 of this Agreement shall be paid at execution of this Agreement. The balance due shall be paid in accordance with the terms of this Section unless otherwise specified in a Statement of Work. 3. Term and Termination. This Agreement shall be effective as of the date first set forth above and shall continue in full force and effect until terminated in accordance with this Agreement. 3.1. Either party may, upon written notice, immediately suspend its performance of and/or terminate the affected service or equipment order to which the deficiency pertains in the event the other party (i) fails to perform material terms of this Agreement and (a) such failure is not cured within thirty (30) calendar days following receipt of a default notice in writing from the other party, or (b) if such failure cannot reasonably be cured during that time and the defaulting party fails to use commercially reasonable efforts to cure such breach as soon as practicable, but in any event within ninety (90) calendar days following written notice; (ii) engages in fraud, criminal conduct or willful misconduct in connection with the business relationship of the parties; or (iii) becomes insolvent, ceases doing business in the ordinary course, enters bankruptcy proceedings or effects an assignment for the benefit of creditors. In the event Verizon terminates this Agreement pursuant to this Section 3.1, Customer shall promptly pay Verizon for the System and any services provided up to the date of termination. In the event Customer defaults under this Agreement, Customer’s down payment shall be non-refundable. System Agreement Rev. 10.04.06 Page 5 of 11 ESC # 0148 3.2. Either party may terminate this Agreement or a Statement of Work for convenience, in whole or in part, upon thirty (30) days prior written notice to the other party. If this Agreement or a Statement of Work is terminated by Customer pursuant to this Section, or if an order under this Agreement is cancelled by Customer, Verizon shall have no further responsibility under this Agreement, Statement of Work or such order, as applicable, and Customer shall promptly pay Verizon: 3.2.1. for all equipment and services provided up to the date of termination or cancellation, as applicable; 3.2.2. for all expenses incurred up to the date of termination or cancellation, as applicable, including but not limited to the costs of terminating purchase orders, return of equipment and/or software, removal of equipment and/or software and other contractual obligations made by Verizon to meet its obligations under this Agreement or Statement of Work, plus a restocking fee of twenty-five percent (25%) of the cost of any equipment cancelled or returned. 3.3. Where multiple Statements of Work are associated with this Agreement, the termination of one or fewer than all of the Statements of Work shall only affect the terminated Statement(s) of Work. The remaining Statement(s) of Work shall remain in effect. 3.4. Verizon reserves the right to suspend performance under this Agreement or a Statement of Work if required, in Verizon’s sole discretion, by regulation, statute, judicial action or other applicable legal requirement. 3.5 Verizon reserves the right to amend the rates, terms and conditions of Service under this Agreement to be effective upon the commencement of any renewal term and without formal amendment of this Agreement by providing Customer written notice thereof prior to the expiration of the then-current term. If Customer is unwilling to accept such amended rates, terms and conditions, Customer shall provide Verizon written notice thereof prior to the expiration of the then-current term, in which event the Service shall terminate upon expiration of the then- current term. 3.6 Termination of this Agreement shall not relieve either party of its respective obligations to comply with all terms of this Agreement that expressly call for performance prior or subsequent to the termination date, including without limitation the parties’ respective obligations to protect proprietary and confidential information. 4. Purchase Order. The parties acknowledge that a Customer purchase order or similar document is intended solely to evidence Customer's intention to purchase equipment, software and/or services set forth therein. Except with respect to a provision in a Customer purchase order or similar document evidencing an intent to be bound by the terms and conditions of an Agreement between Customer and Verizon, the terms and conditions of such Customer purchase order or similar document shall be disregarded and of no force or effect, it being agreed that the terms and conditions of the Agreement between Customer and Verizon shall govern. 5. Leasing Option. With Verizon’s prior written consent Customer may finance the System or any portion thereof in a separate transaction through a third party leasing company (“Lessor”) approved by Verizon, assign its rights and obligations with respect to payment under this Agreement to the Lessor, and/or cause the Lessor to issue a purchase order in a form acceptable to Verizon. Notwithstanding such transaction and/or assignment, Customer shall remain responsible for performance of all of its obligations under this Agreement, including payment in full. 6. Risk of Loss. If Verizon installs the System, risk of loss or damage to the System passes to Customer on delivery of the System (including portions thereof) to Customer’s site. If Verizon does not install the System, risk of loss or damage to the System (or portions thereof) passes to Customer upon delivery to the carrier. 7. Title and Security Interest. Until full payment has been rendered, Customer grants Verizon a purchase money security interest in the System, and agrees to execute all documents necessary to perfect that interest and, to the extent permitted by law, grants Verizon a special power-of-attorney for the purpose of executing the necessary documents. Upon final payment, title shall pass to Customer and Verizon will release its security interest. Customer will not grant or convey to any other person or entity a security interest in, or permit placement of a lien on, the System unless and until Customer has paid Verizon in full for such System. 8. Software. Software provided in conjunction with the System is licensed to Customer under the license provided by the software publisher or by the equipment manufacturer with which the software is provided. System Agreement Rev. 10.04.06 Page 6 of 11 ESC # 0148 Customer shall, if required, execute a separate software license agreement in a form satisfactory to the software publisher or equipment manufacturer. 9. Customer Responsibilities. Customer will: 9.1. Allow Verizon access for installation, inspection, testing, maintenance and repair of the System and performance of any required activity. 9.2. Provide suitable building facilities for the System in accordance with local codes, including but not limited to ducting, conduit, structural borings, etc. for cable and conductors in floors, ceilings and walls; electrical service with suitable terminals and power surge protection devices; and metallic grounds with sufficient slack in the equipment room, installed in conformity with the National Electrical Code and local codes. 9.3. Provide necessary heating, cooling, humidity and dust control as required by manufacturer specifications. 9.4. Remove existing equipment or cable that interferes with System installation. 9.5. Identify and disclose to Verizon concealed equipment, wiring or conditions that might be affected by or might affect the installation of the System. Customer shall defend and hold Verizon harmless from any claim, damage or liability resulting from a failure to disclose this information. 9.6. Authorize Verizon, at Customer’s expense, to make service requests upon third parties for System interconnection requirements, including obtaining telephone service for testing where necessary. 9.7. Designate trash deposit points on each floor on which the System is to be installed where Verizon will place waste for removal by Customer. 9.8. Cooperate with Verizon’s requests for assistance in testing or installation. 9.9. Be responsible for providing adequate back-up of data and for restoring data to repaired equipment. 9.10. If the System is to be connected to the public network, be solely responsible for selection, implementation and maintenance of security features for defense against unauthorized long distance calling, and for payment of long distance, toll and other telecommunications charges incurred through use of the System. 9.11. Immediately notify Verizon of any anticipated delay in building availability or inability to meet any of the above listed requirements. 10. Changes In/Additions to System. 10.1 Customer may order additional equipment, software, and/or services pursuant to a written Amendment, Customer purchase order or similar document, and such order shall be governed by this Agreement, including without limitation Section 4, and shall specifically reference this Agreement. 10.2 Customer shall also have the right, by written notice, to propose changes in the System under this Agreement and any Statement of Work (“Change Orders”) and Verizon shall comply to the extent it deems feasible and reasonable. If Verizon determines that such changes cause an increase or decrease in the cost of or time required for performance, Verizon shall advise Customer and such adjustments shall be reflected in a written Change Order. Should Verizon encounter, in installing the System, any concealed or unknown condition not expressly set forth in the applicable Statement of Work, which condition affects the price or schedule for installation of the System, the price and/or the schedule shall be equitably adjusted by Change Order to cover all costs, including but not limited to labor, equipment, materials and tools necessary to carry out the change. 10.3 No Change Order shall become effective as a part of this Agreement and the applicable Statement of Work, and no changes in the System shall be initiated, until the Change Order is mutually agreed upon in writing. Verizon shall not be obligated to consider or accept any Change Order that results in a decrease of more than twenty percent (20%) in the total price of the System. Verizon may also propose changes in or additions to the System, and may proceed with such changes upon execution by Customer and Verizon of a written Change Order. 11. Warranty. Verizon warrants that it will perform the services provided under this Agreement in a good and workmanlike manner. Unless otherwise set forth in an Exhibit, all manufacturers'/publishers’ warranties for equipment and/or software provided hereunder are passed through to Customer and warranty claims shall be presented by Customer directly to the manufacturer/publisher. THE WARRANTIES SET FORTH IN THIS AGREEMENT ARE IN LIEU OF ALL OTHER WARRANTIES FROM VERIZON, UNLESS OTHERWISE STATED IN AN EXHIBIT. OTHERWISE VERIZON DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED System Agreement Rev. 10.04.06 Page 7 of 11 ESC # 0148 WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ANY WARRANTY OF NON-INFRINGEMENT AND ANY WARRANTIES ARISING FROM A COURSE OF DEALING, USAGE OR TRADE PRACTICE. VERIZON SHALL NOT BE LIABLE FOR UNAUTHORIZED ACCESS TO VERIZON’S OR CUSTOMER’S TRANSMISSION FACILITIES OR PREMISES EQUIPMENT OR FOR UNAUTHORIZED ACCESS TO OR ALTERATION, THEFT OR DESTRUCTION OF CUSTOMER’S DATA FILES, PROGRAMS, PROCEDURES OR INFORMATION THROUGH ACCIDENT, FRAUDULENT MEANS OR DEVICES, OR ANY OTHER METHOD. VERIZON MAKES NO WARRANTY FOR USE OF THE SYSTEM AS A COMPONENT IN LIFE SUPPORT SYSTEMS OR DEVICES, PUBLIC SAFETY SYSTEMS, OR WITH RESPECT TO THE PERFORMANCE OF ANY SOFTWARE OR FIRMWARE. 12. Limitation of Liability. EXCEPT FOR PAYMENTS OWED UNDER THIS AGREEMENT, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR SPECIAL, INDIRECT, INCIDENTAL, EXEMPLARY, OR CONSEQUENTIAL DAMAGES, WHETHER ARISING IN CONTRACT, TORT (INCLUDING A PARTY’S NEGLIGENCE) OR OTHERWISE, INCLUDING WITHOUT LIMITATION DAMAGES ARISING FROM DELAY, LOSS OF GOODWILL, LOSS OF OR DAMAGE TO DATA, LOST PROFITS (ACTUAL OR ANTICIPATED), UNAVAILABILITY OF ALL OR PART OF THE SYSTEM, OR OTHER COMMERCIAL OR ECONOMIC LOSS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT WITH RESPECT TO THE INDEMNIFICATION OBLIGATIONS SET OUT IN SECTION 13, VERIZON’S ENTIRE LIABILITY FOR ANY OTHER DAMAGE WHICH MAY ARISE HEREUNDER, FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT OR IN TORT, INCLUDING VERIZON’S NEGLIGENCE, OR OTHERWISE, SHALL BE LIMITED TO THE PURCHASE PRICE OF THE SPECIFIC EQUIPMENT, SOFTWARE OR SERVICES GIVING RISE TO THE CLAIM. VERIZON SHALL BEAR NO LIABILITY FOR USE OF EQUIPMENT, SOFTWARE OR SERVICES PROVIDED UNDER THIS AGREEMENT IN CONNECTION WITH LIFE SUPPORT SYSTEMS OR DEVICES OR PUBLIC SAFETY SYSTEMS. EXCEPT AS EXPRESSLY STATED OTHERWISE HEREIN, VERIZON SHALL HAVE NO LIABILITY OR RESPONSIBILITY FOR INTEROPERABILITY OR COMPATIBILITY OF THE SYSTEM WITH THIRD-PARTY PRODUCTS OR SYSTEMS THAT CUSTOMER MAY UTILIZE IN CONJUNCTION WITH THE SYSTEM OR TO WHICH CUSTOMER MAY CONNECT THE SYSTEM. 13. Indemnification and Defense. 13.1 Except as provided below, Verizon will defend Customer against any claim, suit, action or proceeding alleging that equipment supplied by Verizon to Customer under this Agreement (“Verizon supplied equipment”) infringes a valid U.S. patent or copyright (“Claim”), and Verizon will indemnify and hold harmless Customer against any and all finally awarded costs and expenses, including attorneys’ fees, in connection with any such Claim. 13.2 If the use of any Verizon supplied equipment is enjoined or subject to a Claim as described above, Verizon may, at its option and expense, either procure for Customer the right to continue to use the equipment, replace the equipment, or relevant component, with substantially equivalent, non-infringing equipment, or relevant component, or modify the equipment, or relevant component, so that it becomes non-infringing. In the event that none of the foregoing options is commercially reasonable to Verizon, Verizon will remove the infringing Verizon supplied equipment and refund to Customer the purchase price for the equipment less depreciation for its use. Depreciation shall be calculated on a straight-line basis, assuming a useful life of five (5) years. 13.3 Verizon shall have no obligation for (a) any costs, fees or expenses incurred by Customer without Verizon’s prior written consent; (b) any allegation, assertion, or claims of intellectual property infringement, including contributory infringement or inducement to infringe, arising out of or related to any Claim: (i) automated call processing, automated voice service, automated customer service or combined live operator/automated systems processing used in processing or completing calls, (ii) automated bridging of more than two callers utilizing some form of "listen only" (unilateral) communication combined with some form of interactive communication, (iii) prepaid calling products or services, (iv) wireless telecommunications services or support therefor, or (v) “music on hold,” service; or (c) any indirect, special, consequential or incidental damages arising out of any Claim. System Agreement Rev. 10.04.06 Page 8 of 11 ESC # 0148 13.4 Any obligation on the part of Verizon to defend and indemnify shall not apply to any Claim or portion thereof that arises from (i) any negligent or willful act or omission by or attributable to Customer; (ii) use or operation of the Verizon supplied equipment in combination with equipment or services provided by Customer or any third party; (iii) any addition to or modification of the Verizon supplied equipment by Customer, any third party or Verizon at Customer’s request; (iv) use of other than the then current unaltered release of any software used in the Verizon supplied equipment; or (v) any equipment, system, product, process, method or service of Customer which otherwise infringed the U.S. patent or copyright asserted against Customer prior to the supply of the equipment to Customer by Verizon under the Agreement. 13.5 The foregoing states the entire obligation of Verizon to Customer and is Customer’s sole and exclusive remedy with respect to any Claim of infringement of any intellectual property right of any kind, and Verizon disclaims all other warranties and obligations with respect to any such Claims. 13.6 Customer shall defend, indemnify and hold harmless Verizon, its employees, officers, directors, agents and affiliates for damages, costs and attorneys fees in connection with any claim arising out of (a) Customer’s use of the equipment provided by Verizon other than as expressly indemnified by Verizon pursuant to Section 13.1 of this Agreement, (b) combination of the equipment provided by Verizon with other equipment, software, products or services not provided by Verizon under this Agreement, (c) modification of the equipment provided by Verizon, or (d) arising out of the content of communications transmitted by or on behalf of Customer in the use of the services or equipment provided by Verizon, including but not limited to libel, slander, and invasion of privacy. 13.7 Each party (the “indemnitor”) shall defend, indemnify, and hold harmless the other party (the “indemnitee”) against all claims and liabilities for direct damages imposed on the indemnitee for bodily injuries, including death, and for damages to real or tangible personal property to the extent caused by the negligent or otherwise tortious acts or omissions of the indemnitor, its agents or employees in the course of performance of this Agreement. 13.8 The defense and indemnification obligations set forth in this Section 13 are contingent upon (1) the indemnitee providing the indemnitor prompt, written, and reasonable notice of the claims, demands, and/or causes of action subject to indemnification, (2) the indemnitee granting the indemnitor the right to control the defense of the same, and (3) the indemnitee’s full cooperation with the indemnitor in defense of the claim, including providing information and assistance in defending the claim. Nothing herein, however, shall restrict the indemnitee from participating, on a non-interfering basis, in the defense of the claim, demand, and/or cause of action at its own cost and expense with counsel of its own choosing. No settlement may be entered into by the indemnitor on behalf of the indemnitee that includes obligations to be performed by the indemnitee (other than payment of money that will be fully paid by the indemnitor under Sections 13.1- 13.7 above) without indemnitee's prior written approval. 14. Confidentiality. Except as required by law or regulation, each party (the “receiving party”) shall keep confidential and not disclose, directly or indirectly, to any third party any Confidential Information, as defined below, received from the other party (the “disclosing party”) without the prior written consent of a duly authorized officer of the disclosing party. The disclosing party shall conspicuously mark its tangible Confidential Information as Proprietary or Confidential at the time of disclosure to the receiving party. Confidential Information that is disclosed orally will be identified by the disclosing party as Confidential Information at the time of disclosure to the receiving party. Each party shall use, copy and disclose the Confidential Information of the disclosing party solely for purposes of performing this Agreement. All Confidential Information of a party shall be and shall remain the property of such party. A party shall deliver to the disclosing party, upon written request by the disclosing party, all Confidential Information of the disclosing party then in the receiving party’s possession or control, directly or indirectly, in whatever form it may be (including, without limitation, magnetic media) or certify its destruction to the disclosing party. Each party shall take all necessary and reasonable action, by instruction, agreement or otherwise, with its employees, consultants, subcontractors, affiliates, and representatives to satisfy its obligations hereunder. The receiving party’s obligations hereunder with respect to confidentiality, non-disclosure and limitation of use of Confidential Information shall be for the term of the Agreement plus one (1) year. For purposes of this provision, a third party shall not include an entity which has a need to know the Confidential Information and which owns, is owned by, or is under common ownership with a party to this Agreement. System Agreement Rev. 10.04.06 Page 9 of 11 ESC # 0148 14.1 Nothing in this Agreement shall prevent either party from using or disclosing any Confidential Information that: (i) has become generally available to the public, other than through any improper action of such party, (ii) is already in the possession of the receiving party and not subject to an existing agreement of confidence between the parties, (iii) is received from a third party without restriction and without breach of this Agreement, (iv) is independently developed by the receiving party as evidenced by its records, or (v) is disclosed pursuant to a valid law, rule, regulation, subpoena, demand, or order of a court or other governmental body or any political subdivision thereof of competent jurisdiction (collectively “demand”); provided, however, that the receiving party shall first have given notice thereof to the disclosing party (unless prohibited by the terms of such request or requirement, or such notice is otherwise prohibited by law) in order to permit the disclosing party to seek reasonable protective arrangements. 14.2 For purposes of this Agreement, the term “Confidential Information” shall include, without limitation, all trade secrets of a party and all other information and material that relates or refers to the plans, policies, finances, corporate developments, products, pricing, sales, services, procedures, intra-corporate transactions, suppliers, prospects and customers of a party, as well as financial information relating to such suppliers, prospects and customers, and any other similar confidentiality information and material which such party does not make generally available to the public. By way of illustration, but not limitation, Confidential Information includes all computer software (including object code and source code), computer software and data base technologies, systems, structures and architectures, and the processes, formulae, compositions, improvements, inventions, discoveries, concepts, ideas, designs, methods and information developed, acquired, owned, produced, or practiced at any time by a party, and all non-public information relating to the business of such party. 15. Alternate Dispute Resolution (ADR). Any controversy, claim, or dispute (“Disputed Claim”) arising out of or relating to this Agreement, except for claims relating to indemnity, infringement, or confidentiality obligations or matters relating to injunctions or other equitable relief (together “Equitable Claims”), shall be first subject to a thirty (30) day negotiation period between the parties in which each party shall disclose to the other party all such documents, facts, statements and any other information which are reasonably requested by the other party and are relevant to the dispute in question. Should such negotiations fail to resolve the dispute within thirty (30) calendar days, Disputed Claims shall be resolved by binding arbitration of a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The decision of the arbitrator shall be based upon this Agreement and applicable law. The decision of the arbitrator shall be reduced to writing, shall be final and binding except for fraud, misconduct, or errors of law, and judgment upon the decision rendered may be entered in any court having jurisdiction thereof. In all arbitrations, the arbitrator must give effect to applicable statutes of limitation subject to limitation of actions terms set forth in this Agreement, and shall not be afforded any authority to award relief in excess of what this Agreement provides or to order consolidation or class arbitrations. The arbitrator shall have no authority to award punitive damages in any Disputed Claim. The parties agree that any such claims arising under this Agreement must be pursued on an individual basis in accordance with the procedure noted above. Even if applicable law permits class actions or class arbitrations, the ADR procedure agreed to herein applies and the parties waive any rights to pursue any claim arising under this Agreement on a class basis. The arbitration shall be held in a mutually agreed to location, and shall be final and binding on both parties. Each party will bear its own costs of arbitration but shall split equally the fees of the arbitration and the arbitrator. 16. Hazardous Substances. Except as disclosed to and acknowledged in writing by Verizon, Customer certifies that it is not aware of the presence of any asbestos or other hazardous substance (as defined by any applicable state, federal or local hazardous waste or environmental law or regulation) at any location where Verizon is to perform services under this Agreement. If during such performance Verizon employees or agents encounter any such substance, Customer agrees to take all necessary steps, at its own expense, to remove or contain the asbestos or other hazardous substance and to test the premises to ensure that exposure does not exceed the lowest exposure limit for the protection of workers. Verizon may suspend performance under this Agreement until the removal or containment has been completed and approved by the appropriate governmental agency and Verizon. Performance obligations under this Agreement shall be extended for the period of delay caused by said cleanup or removal. Customer’s failure to remove or contain hazardous substances shall entitle Verizon to terminate this Agreement without further liability, in which event Customer shall permit Verizon to remove any equipment that has not been accepted, shall reimburse Verizon for expenses incurred in performing this Agreement until termination (including but not limited to expenses associated with such termination, such as removing equipment, terminating leases, demobilization, etc.), and shall complete payment for any portion of the System that has been accepted. System Agreement Rev. 10.04.06 Page 10 of 11 ESC # 0148 17. Force Majeure. Neither party shall be liable for any delay or failure in performance under this Agreement arising out of acts or events beyond its reasonable control, including but not limited to acts of God, war, terrorist acts, fire, flood, explosion, riot, embargo, acts of the Government in its sovereign capacity, labor disputes, unavailability of equipment, software or parts from vendors, or changes requested by Customer. The affected party shall provide prompt notice to the other party and shall be excused from performance to the extent of such caused delays or failures, provided that the party so affected shall use reasonable efforts to remove such causes of such delays or failures and both parties shall proceed whenever such causes are removed or cease. If performance of either party is prevented or delayed by circumstances as described in this section for more than ninety (90) days, either party may terminate the affected Service or Statement of Work. Notwithstanding the foregoing, Customer shall not be relieved of its obligation to make any payments, including any late payment charges as provided in Section 2.2, above, that are due to Verizon hereunder. 18. Assignment. Neither party may, without the prior written consent of the other party, assign or transfer its rights or obligations under this Agreement; consent shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, Verizon may, without prior notice, assign this Agreement, in whole or in part, to any Verizon affiliate or to any successor entity upon the merger, reorganization, consolidation or sale of all or substantially all of Verizon’s assets associated with the equipment or Services provided pursuant to this Agreement. For purposes of this Section, “affiliate” shall mean a person or entity that directly or indirectly controls, is controlled by, or is under common control with Verizon. Any attempt to assign this Agreement in contravention of this Section shall be void and of no force and effect. 19. Governing Law. This Agreement shall be governed by the substantive laws of the State of Delaware, without regard to its choice of law principles. 20. Non-Waiver/Severability. Either party's failure to enforce any of the provisions of this Agreement or to exercise any right or option is not a waiver of any such provision, right, or option, and shall not affect the validity of this Agreement. Any waiver must be written and signed by the parties. If any provision of this Agreement or the provision of any Service or equipment under the terms hereof is held to be illegal, invalid, or otherwise prohibited under applicable law or regulation in any State or jurisdiction, then this Agreement shall be construed as if not containing such provision or not requiring the provision of such invalid, illegal, or prohibited Service or equipment in such State or jurisdiction. 21. Publicity. Except as required by law, the parties shall keep this Agreement confidential and shall not disclose this Agreement or any of its terms without the other party’s written consent. Neither party shall use any trademark, trade name, trade dress or any name, picture or logo which is commonly identified with the other party or its affiliates, or from which any association with such party or its affiliates may be inferred or implied, in any manner, including but not limited to advertising, sales promotions, press releases or otherwise, without the prior written permission of such party. Notwithstanding any contrary term in this Agreement, the parties may issue or permit issuance of a press release or other public statement concerning this Agreement, provided, however, that no such release or statement shall be published without the prior mutual consent of the parties. 22. Notices. All notices or other communication given or required by either party to the other under this Agreement shall be deemed to have been properly given if hand-delivered, mailed by certified mail return receipt requested, or sent by facsimile with confirmation of receipt or by overnight courier. Such notices and communications shall be deemed effective upon receipt. If to Verizon, notices should be sent to Verizon National Contract Repository, 700 Hidden Ridge, MC:HQW02L25, Irving, TX 75038, and if to Customer to the address specified on the cover sheet. Such address may be changed by either party by notice sent in accordance with this Section. 23. Limitation of Actions. A party may bring no action or demand for arbitration arising out of this Agreement more than two (2) years after the cause of action has accrued. The parties waive the right to invoke any different limitation on the bringing of actions under state law. 24. Compliance with Laws. Each party shall comply with the provisions of all applicable federal, state, and local laws, ordinances, regulations and codes in its performance under this Agreement or any Statement of Work, System Agreement Rev. 10.04.06 Page 11 of 11 ESC # 0148 including without limitation the export laws of the United States or any country in which Customer receives equipment, software or services. 25. Independent Contractor Relationship; No Agency. Each party understands and agrees that it and its personnel are not agents or employees of the other party, and that each party is an independent contractor hereunder for all purposes and at all times. Neither party has the right or authority to, and shall not, assume or create any obligation of any nature whatsoever on behalf of the other party or bind the other party in any respect whatsoever. Each party shall indemnify, hold harmless and defend the other against any liabilities, claims, losses and damages (including costs, expenses and reasonable attorneys' fees) arising out of its failure to comply with this provision and any laws, rules or regulations applicable thereto. 26. Interpretation. The Agreement shall not be construed or interpreted for or against any party hereto because that party drafted or caused that party’s legal representative to draft any of its provisions. 27. Headings. The Section headings used herein are for reference and convenience only and shall not enter into the interpretation of this Agreement. 28. Modifications. This Agreement may only be amended, changed, waived or modified in a written document that is signed by both parties. 29. Entire Agreement. This Agreement, together with any Statement of Work hereunder and any Exhibit hereto, constitutes the entire agreement between the parties pertaining to the subject matter herein and supercedes all prior oral and written proposals, correspondence and memoranda with respect thereto, and no representations, warranties, agreements or covenants, express or implied, of any kind or character whatsoever with respect to such subject matter have been made by either party to the other, except as expressly set forth in this Agreement. In the event of conflicts among the terms of this Agreement, a Statement of Work and/or an Exhibit, the following order of precedence shall apply: the Exhibit, this Agreement, and the Statement of Work. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed. Each party warrants and represents that its respective representative whose signature appears below have been and are on the date of signature duly authorized to execute this Agreement and that each party has the authority to enter into this Agreement. Verizon Business Financial Management Customer: CITY OF COPPELL, PD E911 Corporation on behalf of Verizon Select Services, Inc. By: By: Print Name: Print Name: Jim Witt Title: Title: City Manager Date: Date: WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Planning December 12, 2006 8/C ✔ ORDINANCE Consider approval of an Ordinance for PD-106R-SF-9, Hidden Valley, Lot 6, Block C, zoning change request from PD-106-SF-9 (Planned Development-106 Single Family-9) to PD-106R-SF-9 (Planned Development-106 Revised-Single Family-9), to allow for a pool and deck to be constructed along the rear property line, providing a variance to the required 5-foot setback, at 479 Hidden Valley Drive, and authorizing the Mayor to sign. On October 19, 2006, the Planning Commission recommended approval of this zoning request. On November 14, 2006, Council approved this zoning change (7-0). Staff recommends approval. @PD-106R-SF-9, HV (ORD) 1-AR(con) 11744 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND MAP OF THE CITY OF COPPELL, TEXAS, AS HERETOFORE AMENDED, BY GRANTING A CHANGE IN ZONING FROM PD-106-SF-9 (PLANNED DEVELOPMENT-106 SINGLE FAMILY-9) TO PD-106R-SF-9 (PLANNED DEVELOPMENT-106 REVISED-SINGLE FAMILY-9), TO ALLOW FOR A POOL AND DECK TO BE CONSTRUCTED ALONG THE REAR PROPERTY LINE, PROVIDING A VARIANCE TO THE REQUIRED 5- FOOT SETBACK, AT 479 HIDDEN VALLEY DRIVE AND BEING MORE PARTICULARLY DESCRIBED IN EXHIBIT “A”, ATTACHED HERETO; PROVIDING FOR DEVELOPMENT CONDITIONS; PROVIDING FOR THE APPROVAL OF A SITE PLAN, LANDSCAPE PLAN, POOL PLAN AND DECK PLAN, ATTACHED TO AS EXHIBITS “B”, “C”, “D” AND “E”, RESPECTIVELY; 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 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-106R- SF-9 should be approved, and in the exercise of legislative discretion have concluded that 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 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-106-SF-9 (Planned Development-106 Single Family-9) to PD-106R-SF-9 (Planned Development-106 Revised- Single Family-9), to allow for a pool and deck to be constructed along the rear property line, 11744 2 providing a variance to the required 5-foot setback, at 479 Hidden Valley Drive and being more particularly in Exhibit “A”, attached hereto and made a part hereof for all purposes. SECTION 2.That the property shall be developed and used only in accordance with the following development conditions as set forth herein below: A. The proposed Planned Development shall comply with the use regulations set forth in Zoning Ordinance Number 279-A-65, except as amended herein. B. The property shall be developed in accordance with the site plan, landscape plan, pool and deck plans as herein attached. C. Acknowledgement that proposed fencing across easements is subject to removal at discretion of easement entity. SECTION 3.That the Site Plan, Landscape Plan, Pool Plan and Deck Plan attached to as Exhibits “B”, “C”, “D” and “E”, respectively, and made a part hereof for all purposes, are hereby, approved. SECTION 4. That the above property shall be used and developed only in the manner and for the purpose provided for by the Comprehensive Zoning Ordinance and other applicable ordinances of the City of Coppell, as heretofore amended, and as amended herein. SECTION 5. That all provisions of the Ordinances of the City of Coppell, Texas, in conflict except as amended herein 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 6. 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 validity of this ordinance as a whole, or any part or provision thereof other than the part so 11744 3 decided to be unconstitutional, illegal or invalid, and shall not affect the validity of the Comprehensive Zoning Ordinance as a whole. SECTION 7. 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 8.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 9.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 ___________________, 2006. APPROVED: _____________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: _____________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: _________________________________ ROBERT E. HAGER, CITY ATTORNEY (REH/cdb 11/29/2006) EXHIBIT ‘A’ LEGAL DESCRIPTION 479 Hidden Valley Drive, being more particularly described as Lot 6, Block C of the Hidden Valley Addition, being an addition to the City of Coppell, Dallas, County, Texas. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ Planning December 12, 2006 8/D ✔ ORDINANCE Consider approval of an Ordinance for Case No. S-1170R2, Mariachi Grill with Private Club, zoning change request from S-1170R (Special Use Permit-1170 Revised) to S-1170R2 (Special Use Permit 1170 Revision 2), to allow an approximate 2,200-square-foot restaurant with private club to be located at 761 S. MacArthur, Suite 101, and authorizing the Mayor to sign. On October 19, 2006, the Planning Commission recommended approval of this zoning request. On November 14, 2006, Council approved this zoning change (7-0). Staff recommends approval. @S-1170R2 Mariachi (ORD), 1-AR(con) 1 11747 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND MAP OF THE CITY OF COPPELL, TEXAS, AS HERETOFORE AMENDED, BY GRANTING A CHANGE IN ZONING FROM S-1170R-C (SPECIAL USE PERMIT-1170 REVISED – COMMERCIAL) TO S-1170R2-C (SPECIAL USE PERMIT 1170 REVISION 2 – COMMERCIAL), TO ALLOW AN APPROXIMATE 2,200- SQUARE-FOOT RESTAURANT WITH PRIVATE CLUB TO BE LOCATED AT 761 S. MACARTHUR, SUITE 101, AND BEING MORE PARTICULARLY DESCRIBED IN EXHIBIT “A” ATTACHED HERETO AND INCORPORATED HEREIN; PROVIDING FOR THE APPROVAL OF THE, SITE PLAN, FLOOR PLAN, SIGN PLAN, ATTACHED HERETO AS EXHIBITS “B”, “C”, AND “D”; 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. S-1170R2-C should be approved, and in the exercise of legislative discretion have concluded that 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 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 by granting a change in zoning from S-1170R-C (Special Use Permit- 1170 Revised – Commercial ) to S-1170R2-Commercial (Special Use Permit 1170 Revision 2 – Commercial , to allow an approximate 2,200-square-foot restaurant with private club to be located 2 11747 at 761 S. MacArthur, Suite 101, for the property described in Exhibit “A” attached hereto and made a part hereof for all purposes. SECTION 2.That the Special Use Permit to allow an approximate 2,200-square-foot restaurant with private club, is hereby approved subject to the following special conditions: (A) The property shall be developed in accordance with the floor plan and sign plan. (B) Hours of operation shall not exceed Sunday through Thursday 7:00 a.m. to 9:00 p.m. and Friday and Saturday 7:00 a.m. to 11:00 p.m. (C) The operation of the private club shall be in compliance with all applicable provisions of the Texas Alcoholic Beverage Code and other state regulations. SECTION 3.That the site plan, floor plan and sign plan shall be attached hereto as Exhibits “B”, “C”, and “D”; 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 validity of this ordinance as a whole, or any part or provision thereof other than the part so decided to 3 11747 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 ___________________, 2006. APPROVED: _____________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: _____________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: _________________________________ ROBERT E. HAGER, CITY ATTORNEY WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: Planning December 12, 2006 8/E ✔ ORDINANCE Consider approval of an Ordinance for text amendments to Chapter 12 Zoning of the Code of Ordinances, Sec. 12-42-1, revising the definitions of Convenience Store and Retail Stores and Shops, Sec. 12-29-3, Sign Regulations, prohibiting neon signs being visible from outside of the building, except for “open” signs, and various revisions to Sec. 12-30-16, SUP regulations for Restaurants. On September 21, 2006, the Planning Commission recommended approval of this text amendment. On November 14, 2006, Council approved this text amendment (7-0). Staff recommends approval. @TA-Conv. Store (ORD) 1-AR (con) 1 TM 11881 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. ____________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, AMENDING THE ZONING ORDINANCE NO. 91500, BY AMENDING SECTION 12-29-3, SUBSECTION 3 BY AMENDING SUBSECTION (L) TO PROVIDE AN EXCEPTION FOR OPEN SIGNS; BY REPEALING SECTION 12-30-16 AND REPLACING WITH A NEW SECTION 12-30-16 PROVIDING NEW REGULATIONS FOR RESTAURANTS; AND BY AMENDING SECTION 12-42-1, DEFINITIONS, BY AMENDING THE DEFINITION FOR CONVENIENCE STORE AND FOR OUTSIDE STORAGE AND DISPLAY - RETAIL STORES; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A SAVINGS CLAUSE; PROVIDING FOR A PENALTY CLAUSE OF A FINE NOT TO EXCEED TWO THOUSAND DOLLARS ($2,000) FOR EACH OFFENSE; AND PROVIDING AN EFFECTIVE DATE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. That Ordinance No. 91500 of the City of Coppell, Texas as heretofore amended be and the same is hereby amended by amending Section 12-29-3, Subsection 3 by amending Subsection (L) to provide an exception for open signs, to read as follows: “Sec. 12-29-3. Provisions for all zoning districts. . . . . . 3. Prohibited signs: The following types of signs are specifically prohibited. . . . . . (L) Luminous gaseous tubing, including within an enclosed building, behind glass and visible outside from the public right-of-way through a window, except “open” signs shall be permitted. “Open” signs shall not include any other wording or advertising and shall not flash, blink, or contain any movement. . . . . . . . . . .” 2 TM 11881 SECTION 2. That Ordinance No. 91500 of the City of Coppell, Texas, as heretofore amended, be, and the same is hereby amended by repealing Section 12-30-16 and replacing with a new Section 12-30-16 providing new regulations for restaurants, which shall read as follows: “Sec. 12-30-16. Restaurant. A restaurant, as that term is used in this section, shall mean any establishment or club that provides food service to the general public or to club members and their guests. A restaurant shall be permitted only by special use permit in the "O" office, "R" retail, “H” Historic, "HC" highway commercial, "C" commercial, "TC" town center, or "LI" light industrial districts, or by special use permit within such districts which are a part of a planned development district. Provided, however, this provision notwithstanding, a special use permit for a restaurant may be permitted on property zoned single family residential with a special use permit for a golf course and clubhouse. 1.Special conditions. A special use permit for a restaurant, if granted, shall be subject to such reasonable special conditions as may be incorporated in the ordinance granting the special use permit, to protect the health safety and welfare of the general public and adjacent land uses. 1. In the event that the applicant shall obtain a permit to serve alcoholic beverages, it will be the applicant’s responsibility to comply with all applicable provisions of the Texas Alcoholic Beverage Code, including, but not limited to the submission of Texas Alcoholic Beverage Commission Form L-101CTY “Certificate of City Secretary” and other applicable forms and state regulations. 2.Time limit. In the event an application for a building permit for a restaurant is not made and secured within six months from the granting of the special use permit for the restaurant, the SUP will become null and void unless the owner/operator of the restaurant is granted an extension by the city council. In the event the owner or operator of a property having a zoning classification of special use permit for a restaurant, ceases to operate the restaurant business use for a period in excess of 90 days, the planning and zoning commission or the city council may initiate a zoning change to consider changing the zoning classification to such other classification as may be appropriate for the property. Each applicant for a special use permit for a restaurant shall be advised of this condition which shall be noted in the ordinance granting the zoning classification. 3 TM 11881 3.Signs. Exterior signs, other than established trade names, located on the outside of the building or premises of a restaurant, shall not advertise or refer to the sale or consumption of alcoholic beverages by words or symbols. 4.Submission requirements. The following shall be required at the time of an application for special use permit for a restaurant: A. A proximity map or plat showing the zoning classification of adjacent property and the location and use of any structures on all properties within 300 feet of the restaurants, lots, or tract measured from the nearest property line of such lot or tract. B. Adequate copies of floor plans for the restaurant shall be submitted showing the dimensions of the following floor areas: 1. Eating areas; 2. Kitchen and food preparation area; 3. Waiting area; 4. Area of all other proposed uses within the restaurant; 5. All combined air-conditioned areas. C. Site Plan of the entire shopping center/retail building indicating: 1. Lease space of the proposed restaurant with square footage and dimension of frontage(s). 2. Parking analysis to assure that adequate parking exists to accommodate restaurant. 3. Proposed hours of operation. D. Elevation(s) of the building, indicating the lease space with dimensions and all proposed signage. 5. New restaurant in a lease space/building with an existing SUP for a restaurant. In the event that another restaurant occupies the same building/lease space, a new or revised special use permit is not required unless: A. The building or lease space is expanded or enlarged; B. The effective area of the sign is enlarged from the previous sign; C. Any other alteration that could increase intensity of the use. The director of planning or designee may administratively approve a minor amendment to the existing SUP for the establishment of a new restaurant, subject to the following process: 4 TM 11881 1. Submission of an application accompanied by; the appropriate fee for administrative site plan approval, the revised floor plan, sign plan, hours of operation and/or other pertinent information to the planning department for review. 2. The director will update the special use permit file to reflect the new restaurant. 3. The director will issue a letter of approval, approval with conditions or denial. In the event of a denial, or conditions that are contested by the applicant, a public hearing process will be required with payment of appropriate fee. 4. Once the new restaurant occupies the building, the Building Official or his designee shall provide the Planning Department an official copy of the certificate of occupancy. 6. Each application for a special use permit for a restaurant must be made by the property owner or the tenant with the written permission of the property owner. The planning and zoning commission and the city council may consider any relevant matter pertaining to the applicant or application which might affect the health, safety, and welfare of the community. 7.Existing uses. Any restaurant in operation or which has been granted a special use permit for a restaurant at the time of the adoption of this ordinance shall be considered as a conforming use.” SECTION 3. That Ordinance No. 91500 of the City of Coppell, Texas, as heretofore amended be, and the same is hereby amended by amending Section 12-42-1, Definitions, by amending the definition for convenience store and for outside storage and display - retail stores, which shall read as follows: “Sec. 12-42-1. Definitions. . . . . . Convenience Store: A small retail store, generally under 3,000 square feet, which typically sells groceries and retail sales of non-food items or prepared foods, hot and cold beverages and packaged beverages or a combination. The outside storage or display and sale in the open, outside the building of groceries, packaged beverages and consumer goods and drive-through or drive-up service is prohibited. 5 TM 11881 . . . . . Outside Storage and Display – retail stores: Retail stores and shops: Facilities which offer all types of consumer goods for sale, but excluding the display and sale in the open, outside a building, of groceries, packaged beverages, consumer goods, new or used automobiles, heavy machinery, building materials, used appliances, furniture or salvage materials which are prohibited. . . . . . ” SECTION 4.That all ordinances and 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 5. That should any word, phrase, paragraph, section or portion of this ordinance, or of the Ordinances, as amended hereby, be held to be void or unconstitutional, the same shall not affect the validity of the remaining portions of said ordinance or of the Ordinances, as amended hereby, which shall remain in full force and effect. SECTION 6. An offense committed before the effective date of this ordinance is governed by prior law and the provisions of the Ordinances, as amended, in effect when the offense was committed and the former law is continued in effect for this purpose. SECTION 7. That any person, firm or corporation violating any of the provisions of this ordinance or of the ordinances, as amended hereby, shall be deemed guilty of a misdemeanor and, upon conviction in the municipal court of the City of Coppell, Texas, shall be subject to a fine not to exceed the sum of Two Thousand Dollars ($2,000.00) for each offense; and each and every day said violation is continued shall constitute a separate offense. 6 TM 11881 SECTION 8. That this ordinance shall become effective immediately from and after its passage and publication of the 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 __________, 2006. APPROVED: ________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: __________________________________ ROBERT E. HAGER, CITY ATTORNEY WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ Planning December 12, 2006 8/F ✔ ORDINANCE Consider approval of an Ordinance for a text amendment to Chapter 12, Zoning of the Code of Ordinances, amending Sec. 12-32A-3(K) deleting reference to requiring the mailing of public notices for telecommunication facility beyond the notification required for similar rezonings, as prescribed by state law, reducing the notification area to 200 feet, and authorizing the Mayor to sign. On September 21, 2006, the Planning Commission recommended approval of this zoning request. On November 14, 2006, Council approved this zoning change (7-0). Staff recommends approval. @TA-Teleco Notices (ORD) 1-AR(con) 1 11746 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 12, COMPREHENSIVE ZONING ORDINANCE OF THE CITY OF COPPELL, TEXAS, ORDINANCE, SECTION 12-32A-3 TO REDUCE THE NOTIFICATION AREA FOR TELECOMMUNICATION FACILITIES TO 200 FEET; PROVIDING A REPEALING CLAUSE; PROVIDING A SEVERABILITY CLAUSE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, a Special Use Permit is required for telecommunication facilities, and; WHEREAS, the current regulations require notification of property owners up to 5,000 depending on the height of the tower, and; WHEREAS Section 12-44-3 of the Zoning Ordinance requires a notification area of 200 feet for all other Special Use Permits, and WHEREAS, the Planning and Zoning Commission has reviewed the amendment recommended by staff and has sent a recommendation to the City Council to approve the said amendment to the specified sections; and WHEREAS, after review of the Planning and Zoning Commission's recommendation, the City Council is of the opinion that Sections 12-32A-3 of the Zoning Ordinance should be amended; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS; SECTION 1. That the Code of Ordinance, Chapter 12, Article 33-A-3, of the City of Coppell, Texas, be, and the same is, hereby amended to read as follows: “Sec. 12-32A-3. General requirements. … (K) Public notice: For purposes of Article 32A, any special use permit request, variance request, or appeal of an administratively- approved use or special use permit shall require public notice to all abutting property owners within 200 feet as required in Section 12- 44-3.” 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 2 11746 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 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 ___________________, 2006 APPROVED: ______________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: _______________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ___________________________________ ROBERT E. HAGER, CITY ATTORNEY (REH/cdb 11/29/06) WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Secretary December 12, 2006 9 ✔ PUBLIC HEARING Consider approval of granting a variance of seventy (70') feet to Tetco Stores from the 300-foot prohibited requirement under Ordinance No. 2006-1143, Article 6-16, Section 6-16-2 of the Code of Ordinances, to a business selling or offering for sale alcoholic beverages, with a business address being 1301 E. Beltline. This variance is being filed for the Chevron at the southeast corner of Beltline and MacArthur. The property line of this business is within 300 feet of the Discover and Share Day Care which is located behind the strip center located on the northeast corner of Beltline and MacArthur. Staff recommends approval based on location being grandfathered. RESOLUTION NO. ______________ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, GRANTING A DISTANCE VARIANCE OF SEVENTY (70') FEET TO TETCO STORES #623, LOCATED AT 1301 E. BELTLINE, COPPELL, TEXAS, AS PROVIDED IN SECTION 6-16-2(H) OF THE CODE OF ORDINANCES OF THE CITY OF COPPELL; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, Article 6-16 of the Code of Ordinances places certain distance prohibitions from churches, schools, and day cares to businesses that sell or offer to sell alcoholic beverages; and WHEREAS, the City Council may grant a variance to such business upon proof that the best interest of the public are not served by strict compliance with the regulations; and WHEREAS, Tetco Stores #623 (hereinafter, “Applicant”) is located within 300 feet of a church, school or day care; and WHEREAS, the Applicant has provided sufficient proof that such regulation constitutes waste or inefficient use of land, or crease an undue hardship and is otherwise not effective or necessary after consideration of the health, safety and welfare of the public; and, WHEREAS, the City Council has determined that the best interest of the community will be served by a grant of such variance. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS: SECTION 1. That a variance of seventy (70') feet shall be granted to Tetco Stores #623, located at 1301 E. Beltliine, Coppell, Dallas County, Texas, as provided in Section 6-16-2 (H) of the Code of Ordinances of the City of Coppell. SECTION 2. That the variance granted herein is in personam to the above named Applicant and shall expire upon relinquishment of any permit authorized by the TEXAS ALCOHOLIC BEVERAGE COMMISSION or its successor. SECTION 3. That this Resolution shall take effect immediately from and after its passage as the law and charter in such cases provide. 1 DULY PASSED by the City Council of the City of Coppell, Texas, this the _______ day of ___________________, 2007. APPROVED: ___________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: _________________________________ ROBERT E. HAGER, CITY ATTORNEY (REH/cdb 12/5/06) 2 WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 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 the property owned by Cabot II – TX1L01, LP, described as Block A, Lots 2R of Amberpoint Business Park at Coppell (64.29 acres) and located at the southwest corner of Sandy Lake Road and Freeport Parkway. The Public Hearing Notice was published in the Citizens Advocate on Friday, December 1, 2006. Staff recommends that City Council hold the Public Hearing for designation of a reinvestment zone for Cabot II – TX1L01, LP. !Cabot PH - 1 AR NOTICE OF PUBLIC HEARING OF DESIGNATION OF REINVESTMENT ZONE A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, in the Council Chambers, Town Center, 255 Parkway Boulevard, Coppell, Texas on the 12th day of December, 2006, at 7:00 P.M., to consider designation of the property described as Block A, Lots 2R of Amberpoint Business Park at Coppell(64.29 acres), located at the southwest corner of Sandy Lake Road and Freeport Parkway, Coppell, Texas, Cabot II – TX1L01, LP as a Reinvestment Zone under Chapter 312 of the Texas Property Tax Code. The Council will seek to determine whether the improvements sought to be made in the zone are feasible and practical and will be a benefit to the land included in the zone and to the City after the expiration of a tax abatement agreement to be entered into pursuant to Section 312.204 of the Texas Property Tax Code. At the hearing, interested persons are entitled to speak and present evidence for or against the designation. Citizens Advocate December 1, 2006 PUBLIC NOTICE 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). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 11 ✔ ORDINANCE Consider approval of an Ordinance designating Cabot II – TX1L01, LP, Reinvestment Zone No. 53, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding designation of the reinvestment zone on December 12, 2006. Staff recommends City Council approve the Ordinance designating Cabot II – TX1L01, LP Reinvestment Zone No. 53 and authorize the Mayor to sign. !Cabot Ord - 1 AR 1 67073 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 53 (AMBERPOINT BUSINESS PARK BUILDINGS 4, 5 AND 6); PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAL-INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF BENEFIT TO THE LAND AND THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Coppell, Texas, has caused notice to be published in a newspaper having general circulation in the City and has delivered such notice to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property described herein; and WHEREAS, the City Council of the City of Coppell, Texas, has conducted a public hearing on the designation of the area described herein as a reinvestment zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, DALLAS COUNTY, TEXAS THAT: SECTION 1:That the City Council of the City of Coppell, Texas finds that the area described herein will, if designated as a reinvestment zone, be reasonably likely to contribute to the retention or expansion of primary employment, or to attract major investment in the zone that will be of benefit to the property and contribute to the economic development of the City. The City Council further finds that the improvements sought are feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement. SECTION 2.That pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property described in Exhibit “A” attached hereto and made a part hereof for all purposes is hereby designated as a reinvestment zone and for identification is assigned the name “Reinvestment Zone No. 53 (Amberpoint Business Park Buildings 4, 5 and 6).” 2 67073 SECTION 3.That the property within Reinvestment Zone No. 53 is eligible for commercial-industrial tax abatement effective on January 1, 2006. SECTION 4.If any article, paragraph or subdivision, clause or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so decided to be invalid or unconstitutional. SECTION 5.That all provisions of 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 6.This ordinance shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, on the ______ day of ___________________, 2006. APPROVED: DOUGLAS STOVER, MAYOR ATTEST: LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ___________________________________ CITY ATTORNEY (PGS/si 11/30/06)(67073) EXHIBIT “A” LEGAL DESCRIPTION OF LAND LEGAL DESCRIPTION FIELD NOTES TRACT 2 BEING a 64.29 acre tract of land in the Jesse Moore Survey, Abstract No. 968, in the City of Coppell, Dallas County, Texas, and being a part of that tract of land described in deed to Ballantyne Jack, L.L.C., now known as AmberPoint at Coppell, L.L.C., a Delaware limited liability company, as recorded in Volume 2001173, Page 3803, deed Records of Dallas County, Texas (D.R.D.C.T.), and being all of Lot 2 of Block A of Amberpoint Business Park at Coppell, an addition to the City of Coppell as recorded in Volume 2002027, Page 00071, D.R.D.C.T., and being more particularly described by metes and bounds as follows: BEGINNING at a ½-inch iron rod with yellow plastic cap stamped “HALFF ASSOC. INC.” (hereafter referred to as “with cap”) set for the intersection of the east line of Northpoint Drive (variable width right-of-way, 60 feet wide at this point) with the south right-of-way line of Sandy Lake Road (variable width right-of-way) as dedicated by said plat of Amberpoint Business Park; THENCE South 89 degrees 44 minutes 26 seconds East, along said south right-of-way line, a distance of 1145.07 feet to a ½-inch iron rod with cap found for corner; THENCE South 00 degrees 15 minutes 34 seconds West, continuing along said south right-of- way line, a distance of 10.00 feet to a ½-inch iron rod with cap found for corner; THENCE South 89 degrees 44 minutes 26 seconds East, continuing along said right-of-way line, a distance of 265.56 feet to a ½-inch iron rod with cap found for corner at the intersection of said south right-of-way line with the west right-of-way line of State Road (variable width right-of- way) as dedicated by said plat of Amberpoint Business Park 35 foot wide dedication); THENCE South 00 degrees 13 minutes 41 seconds East, along said west right-of-way line, a distance of 1493.77 feet to a ½-inch rod with cap found for corner; THENCE South 00 degrees 31 minutes 15 seconds West, continuing along said west right-of- way line, a distance of 378.85 feet to a ½-inch iron rod with cap found for the intersection of said west right-of-way line of that tract of land described in Special Warranty Deed to the City of Coppell as recorded in Volume 96164, Page 207, D.R.D.C.T.; THENCE North 89 degrees 44 minutes 06 seconds West, departing said west right-of-way line and along said north line, a distance of 2479.88 feet to a ½-inch iron rod with cap found for corner on the southeasterly line of said Northpoint Drive for the point of curvature of a circular curve to the left having a radius of 447.80 feet, whose chord bears North 61 degrees 32 minutes 06 seconds East a distance of 68.46 feet; THENCE Northeasterly, along said southeasterly right-of-way line and said curve to the left, through a central angle of 08 degrees 46minutes 03 seconds for an arc distance of 68.52 feet to an “X” cut in concrete set for the point of reverse curvature of a circular curve to the right having a radius of 322.76 feet, whose chord bears North 63 degrees 10 minutes 07 seconds East a distance of 67.67 feet; THENCE Northeasterly, continuing along said south right-of-way line and along said curve to the right, through a central angel 12 degrees 02 minutes 05 seconds for an arc distance of 67.79 feet to a ½ inch iron rod found for the point of compound curvature of a circular curve to the right having a radius of 420.00 feet, whose chord bears North 79 degrees 35 minutes 53 seconds East a distance of 151.81 feet; THENCE Northeasterly, continuing along said south right-of-way line and along said curve to the right, through a central angle of 20 degrees 49 minutes 27 seconds for an arc distance of 152.65 feet to a ½-inch iron rod found for the point of tangency; THENCE South 89 degrees 59 minutes 23 seconds East, continuing along said south right-of- way line, a distance of 315.43 feet to a ½-inch iron rod with cap found for the point curvature of a circular curve to the left having a radius of 480.00 feet, whose chord bears North 45 degrees 02 minutes 07 seconds East a distance of 678.53 feet; THENCE Northeasterly, continuing along said southeasterly right-of-way line and along said curve to the left, through a central angle of 89 degrees 57 minutes 00 seconds for an arc distance of 753.56 feet to a ½-inch iron rod with cap found for the point of tangency; THENCE North 00 degrees 03 minutes 37 seconds East, along the east right-of-way line of said Northpoint Drive, a distance of 1307.49 feet to the POINT OF BEGINNING AND CONTAINING 2,800,665 square feet or 64.29 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Manager's Office December 12, 2006 12 ✔ RESOLUTION Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Cabot II – TX1L01, LP, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding the designation of the reinvestment zone on December 12, 2006. The Coppell Economic Development Committee unanimously recommended approval of this abatement agreement request on May 17, 2006. Staff recommends City Council approve the Tax Abatement Agreement between the City of Coppell and Cabot II – TX1L01, LP and authorize the Mayor to sign it. !Cabot Res - 1 AR 1 67072 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 CABOT INDUSTRIAL VALUE FUND; 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 Cabot Industrial Value Fund, 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 67072 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 ________________, 2006. CITY OF COPPELL, TEXAS ___________________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ____________________________________ CITY ATTORNEY (PGS/si 11/30/06) Cabot Industrial Value Fund Tax Abatement Agreement –Page 1 67030 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”), and Cabot II – TX1L01, LP (“Owner”), 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. 53 (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” (“Land”) and intends to construct three (3) flex/light industrial buildings containing approximately 714,010 square feet of space in the aggregate (collectively the “Improvements”) on the Land; and WHEREAS, Owner’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 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 Cabot Industrial Value Fund Tax Abatement Agreement –Page 2 67030 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 the Owner 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: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Base Year Taxable Value” shall mean the Taxable Value for the Land for the year in which the Tax Abatement Agreement is executed (2006). “Building 4” shall mean a flex/light industrial building containing approximately 549,848 square feet of space to be constructed on the Land. “Building 5” shall mean a flex/light industrial office building containing approximately 101,581 square feet of space to be constructed on the Land. “Building 6” shall mean a flex/light industrial office building containing approximately 62,581 square feet of space to be constructed on the Land. “Commencement of Construction” shall mean that: (i) the plans have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for construction of the last Building comprising the Improvements; (ii) all necessary permits for the construction of the last Building comprising the Improvements on the Land pursuant to the respective plans therefore having been issued by all applicable governmental authorities; and (iii) grading of the Land or the construction of the vertical elements of the last Building comprising the Improvements has commenced. “Completion of Construction” shall mean: (i) substantial completion of the last Building comprising the Improvements; and (ii) a final certificate of occupancy has been issued for last of the buildings comprising the Improvements. “Effective Date” shall mean the last date of execution of this Agreement. Cabot Industrial Value Fund Tax Abatement Agreement –Page 3 67030 “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. “First Year of Abatement” shall mean January 1 of the calendar year immediately following the date of issuance of the first final certificate of occupancy for the last of the buildings comprising the Improvements. “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. “Improvements” shall collectively mean the Buildings 4, 5 and 6 containing approximately 714,010 square feet of space in the aggregate to be constructed on the Land located at the southeast corner of North Pointe Drive and Sandy Lake Road in Coppell, Texas (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(s). “Land” means the real property described in Exhibit A. “Premises” shall collectively mean the Land and the Improvements following construction thereof. “Taxable Value” means the appraised value as certified by the Appraisal District as of January 1 of a given year. Article II General Provisions 2.1 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. 2.2 The Premises are not in an improvement project financed by tax increment bonds. 2.3 This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 2.4 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. Cabot Industrial Value Fund Tax Abatement Agreement –Page 4 67030 2.5 The Owner agrees to provide to the tenants of the Premises, the benefit of the tax abatement of the Improvements granted herein. Owner shall, upon written request, provide the City, with satisfactory evidence that the benefits of this Tax Abatement Agreement have been provided to any such tenants. 2.6 Owner shall before May 1, of each calendar year that the Agreement is in effect, certify in writing to the City that it is in compliance with each term of the Agreement. 2.7 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. Article III Tax Abatement Authorized 3.1 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. 3.2 Subject to the terms and conditions of this Agreement, and provided the combined Taxable Value for the Improvements, excluding the Land, is at least Twenty Million Dollars ($20,000,000) as of January 1 of the First Year of Abatement 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. The actual percentage of Taxable Value of the Improvements subject to 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. 3.3 The period of tax abatement herein authorized shall be for a period of five (5) consecutive years. 3.4 During the period of tax abatement herein authorized, Owner shall be subject to all taxation not abated, including but not limited to, sales tax and ad valorem taxation on land, inventory and supplies. 3.5 The term of the Agreement shall begin on the Effective Date and continuing until the 6th Anniversary Date of the First Year of Abatement. Article IV Improvements 4.1 Owner owns, the Land and intends to construct or caused to be constructed thereon the Improvements. Nothing in this Agreement shall obligate Owner to construct the Improvements on the Land but said action is a condition precedent to tax abatement pursuant to this Agreement. Cabot Industrial Value Fund Tax Abatement Agreement –Page 5 67030 4.2 As a condition precedent to the initiation of the Owner’s tax abatement pursuant to this Agreement, Owner agrees, subject to events of Force Majeure, to cause Commencement of Construction of the Improvements to occur within two (2) months after the Effective Date, and to cause Completion of Construction of the Improvements to occur within twelve (12) calendar months thereafter, as good and valuable consideration for this Agreement, and that all construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations, (or valid waiver thereof). 4.3 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. 4.4 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 flex/industrial buildings for a period of five (5) years commencing on the date the first final certificate of occupancy is issued for the last of the two buildings comprising the Improvements. 4.5 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 in accordance with Owner’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). Article V Default: Recapture of Tax Revenue 5.1 In the event Owner: (i) fails to cause Completion of Construction of 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 Owner 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 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 by the Owner to the City without benefit of a tax abatement for the Improvements, 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 against the Premises, and shall become due, owing and shall be paid to the City within thirty (30) days after termination. 5.2 Upon breach by Owner of any obligations under this Agreement, the City shall notify the 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 Cabot Industrial Value Fund Tax Abatement Agreement –Page 6 67030 the 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 default must be cured. 5.3 If the 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 the Owner. 5.4 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 sixty (60) 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, without tax abatement for the years in which tax abatement hereunder was received by the Owner, 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 sixty (60) day payment period. Article VI Annual Application for Tax Exemption It shall be the responsibility of the 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. Article VII Annual Rendition The Owner shall annually render the value of the Improvements to the Appraisal District and provide a copy of the same to the City upon written request. Article VIII Miscellaneous 8.1 Notice. 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: Cabot II-TX1L01, LP C/o Cabot Properties, Inc. One Beacon St. #1700 Boston, MA 02108 Cabot Industrial Value Fund Tax Abatement Agreement –Page 7 67030 With copy to: Attn: Henry J. Knapek Transwestern Commercial Services 5001 Spring Valley Drive Suite 600W Dallas, Texas 75244 If intended for City, to: Attn: City Manager City of Coppell, Texas P. O. Box 478 Coppell, Texas 75019 Peter G. Smith Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Lincoln Plaza 500 N. Akard Dallas, Texas 75201 8.2 Authorization. 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. 8.3 Severability. 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. 8.4 Governing Law. 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. 8.5 Counterparts. 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. 8.6 Entire Agreement. 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. 8.7 Recordation. A certified copy of this Agreement shall be recorded by the City, at no cost to Owner, in the Deed Records of Dallas County, Texas. Cabot Industrial Value Fund Tax Abatement Agreement –Page 8 67030 8.8 Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 8.9 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 8.10 Chamber of Commerce. During the term of this Agreement, Owner agrees to maintain continuous corporate membership in the Coppell Chamber of Commerce. 8.11 Assignment. 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 prior written consent of the City Manager. (Signature page to follow) Cabot Industrial Value Fund Tax Abatement Agreement –Page 9 67030 EXECUTED in duplicate originals the ____ day of ________________, 2006. City of Coppell, Texas By: ______________________________________ Douglas N. Stover, Mayor Attest: By: _______________________________________ Libby Ball, City Secretary Agreed as to Form: By: __________________________ City Attorney (12-2-06) EXECUTED in duplicate originals the ____ day of ________________, 2006. Cabot II-TX1L01, LP By:__________________________________ Name:________________________________ Title:_________________________________ Cabot Industrial Value Fund Tax Abatement Agreement –Page 10 67030 City’s Acknowledgment State of Texas § § County of Dallas § This instrument was acknowledged Before Me on the ____ day of _______________, 2006, By Douglas N. Stover, 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 Texas § § County of _______ § This instrument was acknowledged before me on the _______ day of ___________, 2006 by _________________, the ____________ of Cabot II-TXL01,LP, a________________________, on behalf of said _______________________. Notary Public, State of Texas My Commission expires: ___________________________ Cabot Industrial Value Fund Tax Abatement Agreement –Page 11 67030 Exhibit “A” Legal Description of Land LEGAL DESCRIPTION FIELD NOTES TRACT 2 BEING a 64.29 acre tract of land in the Jesse Moore Survey, Abstract No. 968, in the City of Coppell, Dallas County, Texas, and being a part of that tract of land described in deed to Ballantyne Jack, L.L.C., now known as AmberPoint at Coppell, L.L.C., a Delaware limited liability company, as recorded in Volume 2001173, Page 3803, deed Records of Dallas County, Texas (D.R.D.C.T.), and being all of Lot 2 of Block A of Amberpoint Business Park at Coppell, an addition to the City of Coppell as recorded in Volume 2002027, Page 00071, D.R.D.C.T., and being more particularly described by metes and bounds as follows: BEGINNING at a ½-inch iron rod with yellow plastic cap stamped “HALFF ASSOC. INC.” (hereafter referred to as “with cap”) set for the intersection of the east line of Northpoint Drive (variable width right-of-way, 60 feet wide at this point) with the south right-of-way line of Sandy Lake Road (variable width right-of-way) as dedicated by said plat of Amberpoint Business Park; THENCE South 89 degrees 44 minutes 26 seconds East, along said south right-of-way line, a distance of 1145.07 feet to a ½-inch iron rod with cap found for corner; THENCE South 00 degrees 15 minutes 34 seconds West, continuing along said south right-of- way line, a distance of 10.00 feet to a ½-inch iron rod with cap found for corner; THENCE South 89 degrees 44 minutes 26 seconds East, continuing along said right-of-way line, a distance of 265.56 feet to a ½-inch iron rod with cap found for corner at the intersection of said south right-of-way line with the west right-of-way line of State Road (variable width right-of- way) as dedicated by said plat of Amberpoint Business Park 35 foot wide dedication); THENCE South 00 degrees 13 minutes 41 seconds East, along said west right-of-way line, a distance of 1493.77 feet to a ½-inch rod with cap found for corner; THENCE South 00 degrees 31 minutes 15 seconds West, continuing along said west right-of- way line, a distance of 378.85 feet to a ½-inch iron rod with cap found for the intersection of said west right-of-way line of that tract of land described in Special Warranty Deed to the City of Coppell as recorded in Volume 96164, Page 207, D.R.D.C.T.; THENCE North 89 degrees 44 minutes 06 seconds West, departing said west right-of-way line and along said north line, a distance of 2479.88 feet to a ½-inch iron rod with cap found for corner on the southeasterly line of said Northpoint Drive for the point of curvature of a circular Cabot Industrial Value Fund Tax Abatement Agreement –Page 12 67030 curve to the left having a radius of 447.80 feet, whose chord bears North 61 degrees 32 minutes 06 seconds East a distance of 68.46 feet; THENCE Northeasterly, along said southeasterly right-of-way line and said curve to the left, through a central angle of 08 degrees 46minutes 03 seconds for an arc distance of 68.52 feet to an “X” cut in concrete set for the point of reverse curvature of a circular curve to the right having a radius of 322.76 feet, whose chord bears North 63 degrees 10 minutes 07 seconds East a distance of 67.67 feet; THENCE Northeasterly, continuing along said south right-of-way line and along said curve to the right, through a central angel 12 degrees 02 minutes 05 seconds for an arc distance of 67.79 feet to a ½ inch iron rod found for the point of compound curvature of a circular curve to the right having a radius of 420.00 feet, whose chord bears North 79 degrees 35 minutes 53 seconds East a distance of 151.81 feet; THENCE Northeasterly, continuing along said south right-of-way line and along said curve to the right, through a central angle of 20 degrees 49 minutes 27 seconds for an arc distance of 152.65 feet to a ½-inch iron rod found for the point of tangency; THENCE South 89 degrees 59 minutes 23 seconds East, continuing along said south right-of- way line, a distance of 315.43 feet to a ½-inch iron rod with cap found for the point curvature of a circular curve to the left having a radius of 480.00 feet, whose chord bears North 45 degrees 02 minutes 07 seconds East a distance of 678.53 feet; THENCE Northeasterly, continuing along said southeasterly right-of-way line and along said curve to the left, through a central angle of 89 degrees 57 minutes 00 seconds for an arc distance of 753.56 feet to a ½-inch iron rod with cap found for the point of tangency; THENCE North 00 degrees 03 minutes 37 seconds East, along the east right-of-way line of said Northpoint Drive, a distance of 1307.49 feet to the POINT OF BEGINNING AND CONTAINING 2,800,665 square feet or 64.29 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 13 ✔ 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 the property owned by Texas Dugan Limited Partnership, described as Lot 4R, Block A, Freeport North Addition (6.405 acres) and located on Royal Lane, approximately 1,200 feet north of Bethel Road. The Public Hearing Notice was published in the Citizens Advocate on Friday, December 1, 2006. Staff recommends that City Council hold the Public Hearing for designation of a reinvestment zone for Texas Dugan Limited Partnership. !CSC PH - 1 AR NOTICE OF PUBLIC HEARING OF DESIGNATION OF REINVESTMENT ZONE A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, in the Council Chambers, Town Center, 255 Parkway Boulevard, Coppell, Texas on the 12th day of December, 2006, at 7:00 P.M., to consider designation of the property described as Lot 4R, Block A, Freeport North Addition (6.405 acres), located on Royal Lane, approximately 1,200 feet north of Bethel Road, Coppell, Texas, Texas Dugan Limited Partnership and Computer Sciences Corporation as a Reinvestment Zone under Chapter 312 of the Texas Property Tax Code. The Council will seek to determine whether the improvements sought to be made in the zone are feasible and practical and will be a benefit to the land included in the zone and to the City after the expiration of a tax abatement agreement to be entered into pursuant to Section 312.204 of the Texas Property Tax Code. At the hearing, interested persons are entitled to speak and present evidence for or against the designation. Citizens Advocate December 1, 2006 PUBLIC NOTICE 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). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 14 ✔ ORDINANCE Consider approval of an Ordinance designating Texas Dugan Limited Partnership, Reinvestment Zone No. 56, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding designation of the reinvestment zone on December 12, 2006. Staff recommends City Council approve the Ordinance designating Texas Dugan Limited Partnership Reinvestment Zone No. 56 and authorize the Mayor to sign. !CSC Ord - 1 AR 1 71406 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 56 (DUKE REALTY/COMPUTER SCIENCES CORPORATION); PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAL-INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF BENEFIT TO THE LAND AND THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Coppell, Texas, has caused notice to be published in a newspaper having general circulation in the City and has delivered such notice to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property described herein; and WHEREAS, the City Council of the City of Coppell, Texas, has conducted a public hearing on the designation of the area described herein as a reinvestment zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, DALLAS COUNTY, TEXAS THAT: SECTION 1:That the City Council of the City of Coppell, Texas finds that the area described herein will, if designated as a reinvestment zone, be reasonably likely to contribute to the retention or expansion of primary employment, or to attract major investment in the zone that will be of benefit to the property and contribute to the economic development of the City. The City Council further finds that the improvements and the tangible personal property to be located thereat are feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement. SECTION 2.That pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property described in Exhibit “A” attached hereto and made a part hereof for all purposes is hereby designated as a reinvestment zone and for identification is assigned the name “Reinvestment Zone No. 56 (Duke Realty/Computer Sciences Corporation).” 2 71406 SECTION 3.That the property within Reinvestment Zone No. 56 is eligible for commercial-industrial tax abatement effective on January 1, 2007. SECTION 4.If any article, paragraph or subdivision, clause or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so decided to be invalid or unconstitutional. SECTION 5.That all provisions of 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 6.This ordinance shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, on the ______ day of ___________________, 2006. APPROVED: DOUGLAS STOVER, MAYOR ATTEST: LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ___________________________________ CITY ATTORNEY (PGS/si 11/30/06)(71406) EXHIBIT “A” LEGAL DESCRIPTION OF LAND WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 15 ✔ RESOLUTION Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Texas Dugan Limited Partnership, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding the designation of the reinvestment zone on December 12, 2006. The Coppell Economic Development Committee unanimously recommended approval of this abatement agreement request on October 4, 2006. Staff recommends City Council approve the Tax Abatement Agreement between the City of Coppell and Texas Dugan Limited Partnership and authorize the Mayor to sign it. !CSC Res - 1 AR 1 11892 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 DUKE REALTY/COMPUTER SCIENCES CORPORATION; 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 Duke Realty/Computer Sciences Corporation, 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 11892 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 ________________, 2006. CITY OF COPPELL, TEXAS ___________________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ____________________________________ CITY ATTORNEY (PGS/si 12/04/06) Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 1 71346 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 Computer Sciences Corporation, a Nevada Corporation (“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. 56 (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 or is under contract to purchase the real property described in Exhibit “A” (“Land”) and intends to construct an office building, containing at least 51,000 square feet of office space, (hereinafter defined as the “Improvements”) on the Land; and WHEREAS, Lessee has leased or is under contract to lease at least 40,000 square feet of space within the Improvements (the “Leased Improvements”), and intends to locate Tangible Personal Property (hereinafter defined) at the Improvements; WHEREAS, development efforts of Owner and Lessee described herein will create permanent new jobs in the City; and WHEREAS, the City Council finds that the contemplated use of the Premises, 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 Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 2 71346 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 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 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: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Base Year Taxable Value” shall mean the Taxable Value for the year in which the Tax Abatement Agreement is executed (2006). “Commencement of Construction” shall mean that: (i) the construction plans for the Improvements have been prepared and all approvals thereof required by applicable governmental authorities have been obtained; (ii) all necessary permits for construction of the Improvements pursuant to the respective plans therefore having been issued by all applicable governmental authorities; and (iii) preparation of the Land or grading has commenced. “Completion of Construction” shall mean: (i) substantial completion of the Improvements; and (ii) the first final permanent certificate of occupancy has been issued for the Lessee’s occupancy of the Improvements. “Effective Date” shall mean the last date of execution of this Agreement. “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 Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 3 71346 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. “Expiration Date” shall mean February 1 of the calendar year following the 5th anniversary date of the First Year of Abatement. “First Year of Abatement” shall mean January 1 of the calendar year immediately following the date of issuance of the first final permanent certificate of occupancy for the Lessee’s occupancy of the Improvements. “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. “Improvements” shall mean an office building containing at least 51,000 square feet of office 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). “Land” means the real property described in Exhibit A. “Lease” shall mean the lease of at least 40,000 square feet of office space in the Improvements by Lessee with a lease inception date of no later than January 1, 2007. “Lessee” shall mean Computer Sciences Corporation, aNevada Corporation. “Leased Improvements” shall mean Lessee’s lease of at least 40,000 square feet of office space in the Improvements. “Owner” shall mean Texas Dugan Limited Partnership. “Premises” shall collectively mean the Land and Improvements, following construction thereof. “Tangible Personal Property” shall mean tangible personal property, equipment and fixtures, other than inventory or supplies, owned or leased by Lessee that is added to the Improvements subsequent to the execution of this Agreement. “Taxable Value” shall mean the appraised value as determined by the appraisal district for a given year. Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 4 71346 Article II Term The term of this Agreement shall begin on the Effective Date and shall continue until the Expiration Date, unless sooner terminated as provided herein. Article III General Provisions 3.1 Owner is the owner of, or is under contract, to purchase the Land, which Land is located within the city limits of the City and within the Zone, and intends to construct the Improvements on the Land. Lessee intends to lease at least 40,000 square feet of office space in the Improvements and to locate Tangible Personal Property at the Improvements. 3.2 The Premises are not in an improvement project financed by tax increment bonds. 3.3 This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 3.4 The Premises is not owned or leased by any member of the Coppell City Council or any member of the Coppell Planning and Zoning Commission. Article IV Tax Abatement Authorized 4.1 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. 4.2 Subject to the terms and conditions of this Agreement, and provided the Taxable Value of the Improvements, excluding the Land, is at least $5.5 Million Dollars, as of the First Year of Abatement and as of January 1 of each year thereafter for a total period of five (5) consecutive calendar years, the City hereby grants Owner an abatement of eighty percent (80%) of the Taxable Value of the Improvements. Subject to the terms and conditions of this Agreement, and provided the Taxable Value of the Tangible Personal Property, is at least $5.5 Million Dollars, as of the First Year of Abatement and as of January 1 of each year thereafter for a total period of five (5) consecutive calendar years, the City grants Lessee an abatement of eighty percent (80%) of the Taxable Value of the Tangible Personal Property for a period of five (5) consecutive years, beginning with the First Year of Abatement. The actual percentage of Taxable Value of the Improvements, subject to abatement will apply only to the portion of the Taxable Value of the Improvements that exceeds the Base Year Taxable Value of the Improvements. The actual percentage of the Taxable Value of the Tangible Personal Property subject to abatement will apply only to tangible personal property added to the Premises after this Agreement is executed. 4.3 The period of tax abatement for the Improvements shall be for a period of five (5) consecutive years. Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 5 71346 4.4 During the period of tax abatement herein authorized, Owner shall be subject to all taxation not abated, including but not limited to, sales tax and ad valorem taxation. Article V Improvements Owner owns or is under contract to purchase the Land, and agrees to construct Improvements on the Land. Nothing in this Agreement shall obligate Owner to construct the Improvements on the Land and/or for Lessee to locate Tangible Personal Property at the Improvements but said actions are conditions precedent to tax abatement pursuant to this Agreement. Article VI Construction of the Improvements 6.1 As a condition precedent to the initiation tax abatement pursuant to this Agreement, Owner agrees, subject to events of Force Majeure, to cause Commencement of Construction of the Improvements to occur within six (6) calendar months after the Effective Date, and to cause Completion of Construction of the Improvements to occur within eighteen (18) calendar months thereafter, as good and valuable consideration for this Agreement, and that all construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations, (or valid waiver thereof). 6.2 Owner and Lessee each agree to maintain the Improvements during the term of this Agreement in accordance with all applicable state and local laws, codes, and regulations. Owner and Lessee each agree that the Improvements shall be used only as office building for a period of at least five (5) years commencing with the First Year of Abatement. 6.3 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). Article VII General Requirements 7.1 Construction plans for the Improvements to be filed with the City, shall be deemed to be incorporated by reference herein and made a part hereof for all purposes. 7.2 Owner and Lessee shall each before May 1, of each calendar year that the Agreement is in effect, certify in writing to the City that such party is in compliance with each term of the Agreement. 7.3 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) Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 6 71346 that, during the period taxes are abated hereunder, is consistent with the general purposes of encouraging development or redevelopment within the Zone. Article VIII Default: Recapture of Abated Tax 8.1 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 with respect to the Premises (provided such party retains its right to timely and properly protest such taxes or assessments); (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’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. 8.2 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. The Defaulting Party 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 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. 8.3 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. 8.4 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 such 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 delinquent property tax. Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 7 71346 The City at its sole discretion has the option to provide a repayment schedule. The computation of the abated tax for 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 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 respectively. 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. Article IX Miscellaneous 9.1 Annual Application For Tax Exemption. It shall be the responsibility of the Owner and Lessee pursuant to the Tax Code, to each file an annual exemption application form with the Chief Appraiser for the Appraisal District in which the eligible taxable property has situs. A copy of the exemption application shall be submitted to the City upon request. 9.2 Notice. 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: Attn: Jeff Turner Texas Dugan Limited Partnership 5495 Beltline Road Coppell, Texas 75254 With copy to: Attn: Corporate Counsel (Texas Market) Dugan Realty Corporation 6133 North River Road Suite 200 Rosemont, IL 60018 If intended for Lessee, to: Computer Sciences Corporation 2100 E. Grand Avenue El Segundo, CA 90245 Attn: Jim Peterman Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 8 71346 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 9.3 City Council Authorization. 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. 9.4 Severability. 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. 9.5 Governing Law. 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. The parties agree to submit to the personal and subject matter jurisdiction of said court. 9.6 Counterparts. 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. 9.7 Entire Agreement. 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. 9.8 Incorporation of Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 9.9 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 9.10 Chamber of Commerce. During the term of this Agreement, Owner and Lessee each agree to maintain continuous corporate membership in the Coppell Chamber of Commerce. Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 9 71346 9.11 Assignment.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 with the prior written consent of the City Manager. 9.12 Conditions Precedent. This Agreement is subject to and conditioned upon: (i) Owner closing its purchase of the Land on or before December 1, 2006; (ii) Lessee and Owner entering into the Lease on or before January 1, 2007; and (iii) Lessee occupancy of the Leased Improvements on or before January 1, 2007. EXECUTED in duplicate originals this the ____ day of ___________________, 2006. City of Coppell, Texas By: ______________________________________ Douglas N. Stover, Mayor Attest: By: _______________________________________ Libby Ball, City Secretary Agreed as to Form: By: Peter G. Smith, City Attorney Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 10 71346 EXECUTED in duplicate originals this the ____ day of ____________________, 2006. TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership By: DUGAN GENERAL PARTNER 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 general partner By:___________________________ Jeffrey D. Turner Senior Vice President EXECUTED in duplicate originals this the ____ day of ____________________, 2006. Computer Sciences Corporation By: ________________________________________ Name: ______________________________________ Title:________________________________________ Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 11 71346 City’s Acknowledgment State of Texas § § County of Dallas § This instrument was acknowledged before me on the _____ day of _______________, 2006, by Douglas N. Stover, 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 0f Texas § § County of Dallas § Before me, the undersigned, a notary public in and for said county and state, on this day personally appeared Jeffrey d. Turner, senior vice president of duke realty corporation, an Indiana corporation, known to me as the person and officer whose name is subscribed to the foregoing instrument and acknowledged to me that the same was the act of the said Texas Dugan limited partnership, and that he executed the same as the act of such corporation in its capacity as general partner of duke realty limited partnership, acting in its capacity as manager of Dugan Texas LLC, as sole member of Dugan Texas general partner LLC, in its capacity as general partner of Texas Dugan limited partnership, for the purposes and consideration therein expressed, and in the capacity therein stated. Notary Public, State of Texas My Commission Expires: Coppell/Texas Dugan Limited Partnership/Computer Sciences Corp./Tax Abatement Agreement –Page 12 71346 Lessee’s Acknowledgment State of ______ § § County of _______ § This instrument was acknowledged before me on the _______ day of ___________, 2006, by __________________ being the ___________________ of Computer Sciences Corporation, a Nevada corporation, on behalf of said corporation. Notary Public, State of _________ My Commission Expires: Exhibit “A” Legal description FREEPORT VIII Lot 4R, Block A, Freeport North Addition City of Coppell, Dallas County, Texas DESCRIPTION, of a 6.405 acre tract of land situated in the William K. Payne Survey, Abstract No. 1140 and the J.T. Thweatt, Survey Abstract No. 1753, Dallas County, Texas, said tract being a portion of Freeport North, an addition to the City of Coppell, Texas according to the plat recorded in Volume 84203, Page 1835 of the Deed Records of Dallas County, Texas, and being a portion of the same tract of land described in Special Warranty Deed to Texas Dugan Limited Partnership recorded in Volume 2000251, Page 2685 of the Deed Records of Dallas County, Texas; said 6.405 acre tract being more particularly described as follows; BEGINNING, at a point for corner; said point being in the southwest right-of-way line of Royal Lane (a 100 foot wide right-of-way); said point also being the northwest corner of Gulf United Industries Addition, an addition to the City of Coppell, Texas according to the plat recorded in Volume 95054, Page 4906, of the Deed Records of Dallas County, Texas; THENCE, in a southerly direction, departing the said southwest line of Royal Lane and along the west line of said Gulf United Industries Addition, the following three (3) calls; South 20 degrees, 53 minutes, 57 seconds West, a distance of 28.13 feet to a 1/2-inch iron rod found; said point being the beginning of a tangent curve to the left; In a southerly direction along the said curve to the left, having a central angle of 21 degrees, 29 minutes, 59 seconds, an arc distance of 281.43 feet, a radius of 750.00 feet, and a chord bearing and distance of South 10 degrees, 28 minutes, 18 seconds West, 279.78 feet, an arc distance of 281.43 feet to a point for corner at the end of said curve; South 00 degrees, 16 minutes, 41 seconds East, a distance of 225.97 feet to a point for corner; said point being the northeast corner of Lot 1, Block 1, Cici's Addition, an addition to the City of Coppell, Texas according to the plat recorded in Volume 99124, Page 170 of the Deed Records of Dallas County, Texas; THENCE, North 89 degrees, 32 minutes, 04 seconds West, departing the said west line of the Gulf United Industries Addition and along the north line of the said Lot 1 of Cici's Addition, a distance of 408.83 feet to a point for corner; said point being the southeast corner of Lot 1, Block A, Freeport North, an addition to the City of Coppell, Texas according to the plat recorded in Volume 2001132, Page 37 of the Deed Records of Dallas County, Texas; THENCE, is a northerly direction, departing the said north line of Cici's Addition and along the east line of said Lot 1, of Freeport North, the following four (4) calls: North 00 degrees, 03 minutes, 45 seconds West, a distance of 368.65 feet to a 1/2-inch iron rod with "Pacheco Koch" cap found for corner at an interior "ell" corner; South 89 degrees, 56 minutes, 15 seconds West, a distance of 20.00 feet to a point for corner at an exterior "ell" corner; North 00 degrees, 03 minutes, 45 seconds West, a distance of 376.75 feet to a "+" cut in concrete found at an angle point; North 45 degrees, 03 minutes, 47 seconds East, a distance of 41.48 feet to a "+" cut in concrete found in the said southwest line of Royal Lane; said point being the beginning of a non-tangent curve to the left; THENCE, in a southeasterly direction and along the said southwest line of Royal Land, and along said curve to the left, having a central angle of 20 degrees, 35 minutes, 39 seconds, a radius of 1050.00 feet, and a chord bearing and distance of South 58 degrees, 28 minutes, 50 seconds East, 375.38 feet, an arc distance of 377.41 feet to a 1/2-inch iron rod with "LJA" cap found at the end of said curve; THENCE, South 68 degrees, 46 minutes, 40 seconds East, continuing along the said southwest line of Royal Lane, a distance of 150.24 feet to the POINT OF BEGINNING. CONTAINING, 278,998 square feet or 6.405 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 16 ✔ 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 the property owned by Coppell Commerce Center, Ltd. with personal property owned by DaVita Rx, Inc., described as Block D, Lots 1R & 1R1 of the Northlake 635 Business Park Addition(32.83 acres) and located at the southwest corner of Belt Line Road and Wrangler Drive. The Public Hearing Notice was published in the Citizens Advocate on Friday, December 1, 2006. Staff recommends that City Council hold the Public Hearing for designation of a reinvestment zone. !DaVita Rx PH - 1 AR NOTICE OF PUBLIC HEARING OF DESIGNATION OF REINVESTMENT ZONE A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, in the Council Chambers, Town Center, 255 Parkway Boulevard, Coppell, Texas on the 12th day of December, 2006, at 7:00 P.M., to consider designation of the property described as Block D, Lots 1R & 1R1 of the Northlake 635 Business Park Addition(32.83 acres), located at the southwest corner of Belt Line Road and Wrangler Drive, Coppell, Texas, DaVita Rx, Inc. as a Reinvestment Zone under Chapter 312 of the Texas Property Tax Code. The Council will seek to determine whether the improvements sought to be made in the zone are feasible and practical and will be a benefit to the land included in the zone and to the City after the expiration of a tax abatement agreement to be entered into pursuant to Section 312.204 of the Texas Property Tax Code. At the hearing, interested persons are entitled to speak and present evidence for or against the designation. Citizens Advocate December 1, 2006 PUBLIC NOTICE 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). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 17 ✔ ORDINANCE Consider approval of an Ordinance designating Coppell Commerce Center, Ltd. (DaVita Rx, Inc.), Reinvestment Zone No. 54, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding designation of the reinvestment zone on December 12, 2006. Staff recommends City Council approve the Ordinance designating Coppell Commerce Center, Ltd. Reinvestment Zone No. 54 and authorize the Mayor to sign. !DaVita Rx Ord - 1 AR 1 67069 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 54 (DAVITA RX); PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAL-INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF BENEFIT TO THE LAND AND THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Coppell, Texas, has caused notice to be published in a newspaper having general circulation in the City and has delivered such notice to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property described herein; and WHEREAS, the City Council of the City of Coppell, Texas, has conducted a public hearing on the designation of the area described herein as a reinvestment zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, DALLAS COUNTY, TEXAS THAT: SECTION 1:That the City Council of the City of Coppell, Texas finds that the area described herein will, if designated as a reinvestment zone, be reasonably likely to contribute to the retention or expansion of primary employment, or to attract major investment in the zone that will be of benefit to the property and contribute to the economic development of the City. The City Council further finds that the improvements and the tangible personal property to be located thereat are feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement. SECTION 2.That pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property described in Exhibit “A” attached hereto and made a part hereof for all purposes is hereby designated as a reinvestment zone and for identification is assigned the name “Reinvestment Zone No. 54 (DaVita Rx).” 2 67069 SECTION 3.That the property within Reinvestment Zone No. 54 is eligible for commercial-industrial tax abatement effective on January 1, 2006. SECTION 4.If any article, paragraph or subdivision, clause or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so decided to be invalid or unconstitutional. SECTION 5.That all provisions of 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 6.This ordinance shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, on the ______ day of ___________________, 2006. APPROVED: DOUGLAS STOVER, MAYOR ATTEST: LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ___________________________________ CITY ATTORNEY (PGS/si 12/6/06)(67069) EXHIBIT “A” LEGAL DESCRIPTION OF LAND Lots 1R & 1R1, Block D Northlake 635 Business Park Addition STATE OF TEXAS COUNTY OF DALLAS WHEREAS, Coppell Commerce Center, Ltd., a Texas Limited Partnership, is the owner of a tract of land situated in the Cordelia Bowen Survey, Abstract No. 56, in the City of Coppell, Dallas County, Texas, said tract being all of that tract of land described in deed to said Coppell Commerce Center, Ltd. as recorded in Volume 99223, Page 631, Deed Records, Dallas County, Texas (D.R.D.C.T.), said tract also being all of Coppell Business Center II, an addition to the City of Coppell as recorded in Volume 99217, Page 1763, D.R.D.C.T., and being more particularly described as follows: BEGINNING at a ½-inch found iron rod for the intersection of the west right-of-way line of Beltline Road (a variable width right-of-way) and the north right-of-way line of Lakeshore Drive (a variable width right-of-way, 90 feet wide at this point), as dedicated by the plat of Northlake 635 Business Park, an addition to the City of Coppell as recorded in Volume 85056, Page 3358, D.R.D.C.T.: THENCE along the north, northeast and east right-of-way lines of said Lakeshore Drive, the following calls: North 89 degrees 30 minutes 00 seconds West, a distance of 185.34 feet to a ½-inch set iron rod with a yellow plastic cap stamped ‘HALFF ASSOC. INC.’ (hereinafter referred to as ‘with cap’) for the point of curvature of a circular curve to the left having a central angle of 12 degrees 50 minutes 19 seconds and a radius of 300.00 feet, whose chord bears South 84 degrees 04 minutes 51 seconds West a distance of 67.08 feet; Westerly, along said curve for an arc distance of 67.22 feet to a ½-inch set iron rod with cap for the point of reverse curvature of a circular curve to the right having a central angel of 12 degrees 50 minutes 19 seconds and a radius of 300.00 feet, whose chord bears South 84 degrees 04 minutes 51 seconds West a distance of 67.08 feet; Westerly, along said curve for an arc distance of 67.22 feet to a ½-inch found iron rod with cap stamped ‘Powell and Powell’ for the point of tangency, said Lakeshore Drive being a 60 foot right-of-way at this point; North 89 degrees 30 minutes 00 seconds West, a distance of 388.27 feet to a ½-inch set iron rod with cap for the point of curvature of a circular curve to the right having a central angle of 52 degrees 53 minutes 07 seconds and a radius of 320.00 feet, whose chord bears South 63 degrees 03 minutes 27 seconds West a distance of 284.99 feet; Northwesterly, along said curve for an arc distance of 295.37 feet to a ½-inch found iron rod for the point of tangency; North 36 degrees 36 minutes 53 seconds West, a distance of 398.49 feet to a ½-inch set iron rod with cap for the point of curvature of a circular curve to the right having a central angle of 37 degrees 06 minutes 53 seconds and a radius of 320.00 feet, whose chord bears North 18 degrees 03 minutes 27 seconds West a distance of 203.68 feet; Northerly, along said curve for an arc distance of 207.29 feet to a ½-inch found iron rod for the point of tangency; North 00 degrees 30 minutes 00 seconds East, a distance of 556.13 feet to a ½-inch found iron rod with cap for the intersection of said east right-of-way line of Lakeshore Drive with a line of 5 feet north of and parallel to the north line of a 50 foot Open Channel Drainage Easement as dedicated by the aforementioned plat of Northlake 635 Business Park; THENCE departing said east line and along said parallel line, the following calls: South 89 degrees 30 minutes 00 seconds East, a distance of 629.41 feet to a ½-inch found iron rod with cap for the point of curvature of circular curve to the left having a central angle of 27 degrees 17 minutes 51 seconds and a radius of 470.00 feet , whose chord bears North 76 degrees 51 minutes 05 seconds East a distance of 221.81 feet; Easterly, along said curve for an arc distance of 223.92 feet to a ½-inch set iron rod with cap for the point of reverse curvature of a circular curve to the right having a central angel of 27 degrees 17 minutes 51 seconds and a radius of 530.00 feet, whose chord bears South 76 degrees 51 minutes 05 seconds East a distance of 250.13 feet; Easterly, along said curve for an arc distance of 252.51 feet to a ½-inch found iron rod for the point of tangency; South 89 degrees 30 minutes 00 seconds East, a distance of 168.37 feet to a point for the intersection of said parallel line and the aforementioned west right-of-way line of Beltline Road, said point bears North 00 degrees 30 minutes 00 seconds East, a distance of 30.00 feet from the intersection of the center line of said 50 foot Easement and said west right-of-way line; THENCE South 00 degrees 30 minutes 00 seconds West, along said west right-of-way line, a distance of 1235.26 feet to a ½-inch set iron rod with cap for corner; THENCE South 10 degrees 48 minutes 36 seconds East, continuing along said west right-of-way line, a distance of 56.09 feet to the POINT OF BEGINNING AND CONTAINING 1,430,216 square feet or 32.83 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 18 ✔ RESOLUTION Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and DaVita Rx, Inc., and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding the designation of the reinvestment zone on December 12, 2006. The Coppell Economic Development Committee unanimously recommended approval of this abatement agreement request on May 17, 2006. Staff recommends City Council approve the Tax Abatement Agreement between the City of Coppell and DaVita Rx, Inc. and authorize the Mayor to sign it. !DaVita Rx Res - 1 AR 1 67070 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 DAVITA RX; 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 DaVita Rx, 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 tangible personal property to be located at 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 tangible personal property to be located at the Premises will accomplish the tax abatement guidelines of the City of Coppell, Texas. 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 2 67070 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 ________________, 2006. CITY OF COPPELL, TEXAS ___________________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ____________________________________ CITY ATTORNEY (PGS/si 11/30/06) DaVita Rx/Tax Abatement Agreement –Page 1 67074 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”), and DaVita Rx, 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. 54 (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, Lessee has or intends to lease approximately 53,000 square feet of space in the existing building located at 1234 Lakeshore Drive (hereinafter defined as the “Improvements”) on the real property described in Exhibit “A” (the “Land”) and intends to reconfigure, or cause to be reconfigured, on the Land and intends to locate certain Tangible Personal Property (hereinafter defined) at the Improvements; 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 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 DaVita Rx/Tax Abatement Agreement –Page 2 67074 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 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: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Base Year Taxable Value” shall mean the Taxable Value for the Tangible Personal Property for the year in which the Tax Abatement Agreement is executed (2006). “City” shall mean the City of Coppell, Texas. “Commencement of Construction” shall mean that: (i) the plans have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for reconfiguration of the Improvements; (ii) all necessary permits for the reconfiguration of the Improvements pursuant to the respective plans therefore having been issued by all applicable governmental authorities; and (iii) the construction of the vertical elements of the reconfiguration of the Improvements has commenced. “Completion of Construction” shall mean that: (i) the reconfiguration of the Improvements, on the Land has been substantially completed; (ii) the first final, permanent certificate(s) of occupancy for the occupancy of the Improvements following the reconfiguration thereof, has been issued by the City. “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. “First Year of Abatement” shall mean January 1 of the calendar year immediately following the date of issuance of the first final certificate of occupancy for the Lessee’s occupancy for the Improvements unless otherwise agreed by the parties. DaVita Rx/Tax Abatement Agreement –Page 3 67074 “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. “Improvements” shall mean the existing building located at 1234 Lakeshore Drive, Coppell, Texas on the Land. “Land” means the real property described in Exhibit A. “Lease” shall mean Lessee’s lease of approximately 53,000 square feet of space in the Improvements. “Lessee” shall mean DaVita, Rx, Inc. “Pharmacy” shall mean a pharmacy to be operated by the Lessee at the Improvements. “Premises” shall collectively mean the Land and the Improvements, but excluding Tangible Personal Property. “Tangible Personal Property” shall mean tangible personal property, equipment and fixtures owned by or leased by Lessee, other than inventory or supplies, located at the Improvements, subsequent to the execution of this Agreement. “Taxable Value” means the appraised value as certified by the Appraisal District as of January 1 of a given year. Article II General Provisions 2.1 Lessee has or is under contract to lease the Improvements, which are located within the city limits of the City and within the Zone. Lessee intends to locate Tangible Personal Property at the Improvements. 2.2 The Premises are not in an improvement project financed by tax increment bonds. 2.3 This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 2.4 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. 2.5 Lessee shall before May 1, of each calendar year that the Agreement is in effect, certify in writing to the City that, to its knowledge, it is in compliance with each term of the Agreement. DaVita Rx/Tax Abatement Agreement –Page 4 67074 2.6 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. The City acknowledges that the operation of a pharmacy is consistent with the City’s Comprehensive Zoning Ordinance, as amended, and the City’s general purposes of encouraging development or redevelopment within the Zone. 2.7 Lessee agrees, subject to events of Force Majeure, to continuously lease and occupy the Improvements for a period of at least five (5) consecutive years beginning with the First Year of Abatement. 2.8 The term of this Agreement shall begin on the Effective Date and continue until the 6th anniversary date of the First Year of Abatement, unless sooner terminated as provided herein. Article III Tax Abatement Authorized 3.1 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. 3.2 Subject to the terms and conditions of this Agreement, and provided the Taxable Value of the Tangible Personal Property is at least Six Million Dollars ($6,000,000.00) as of January 1 of the First Year of Abatement and as of January 1 of each year thereafter that this Agreement is in effect, the City hereby grants 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 beginning the First Year of Abatement. The actual percentage of Taxable Value of the Tangible Personal Property subject to abatement will only apply to the Tangible Personal Property located in the Improvements after this Agreement is executed. 3.3 The period of tax abatement herein authorized shall be for a period of five (5) consecutive years beginning with the First Year of Abatement. 3.4 During the period of tax abatement herein authorized, 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. Article IV Improvements 4.1 Lessee agrees to continuously lease and occupy the Improvements and agrees to locate and maintain Tangible Personal Property at the Improvements with a Taxable Value of at least Six Million Dollars ($6,000,000.00) as of the First Year of Abatement as of January 1 of each year thereafter that this Agreement is in effect. Nothing in this Agreement shall obligate Lessee to DaVita Rx/Tax Abatement Agreement –Page 5 67074 lease the Improvements or to locate Tangible Personal Property at the Improvements but said actions are a condition precedent to Lessee’s tax abatement pursuant to this Agreement. 4.2 Subject to the terms of the Lease, Lessee agrees to maintain the portion of the Improvements it has leased under the Lease, as required under the terms of its Lease, during the term of this Agreement in accordance with all applicable state and local laws, codes, and regulations. Lessee agrees that the portion of the Improvements it has leased under the Lease, shall be used only as a pharmacy and related purposes for a period of five (5) years commencing with the First Year of Abatement. 4.3 The City, its agents and employees shall have the right of access to the Premises to inspect the portion of the Improvements Lessee has leased, provided that such inspection and entry shall be in accordance with all applicable state and local laws and regulations (or valid waiver thereof) at reasonable times and with reasonable notice to Lessee, and in accordance with Lessee’s visitor access and security policies, in order to insure that the Lessee is in compliance with this Agreement, and the City, its agents and employees shall be subject to and shall comply with all applicable state and federal drug control laws and patient confidentiality laws, as well as Lessee’s policies and procedures. Article V Default: Recapture of Tax Revenue 5.1 In the event Lessee: (i) fails to lease 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 Lessee 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 Lessee 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 Lessee shall, within thirty (30) days after demand, pay to the City all taxes which otherwise would have been paid by the Lessee to the City without benefit of a tax abatement for the 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 Lessee, its successors and assigns and shall constitute a tax lien against the Tangible Personal Property and shall become due, owing and shall be paid to the City within thirty (30) days after termination. 5.2 Upon breach by Lessee of any obligations under this Agreement the City shall notify the Lessee 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 the Lessee 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. DaVita Rx/Tax Abatement Agreement –Page 6 67074 5.3 If the Lessee 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 the Lessee. 5.4 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 the Lessee, 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. Article VI Miscellaneous 6.1 Annual Application for Tax Exemption. It shall be the responsibility of the 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. 6.2 Notice. 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 Lessee, to: DaVita Rx, Inc. Attn: Bill Hughson 1350 Old Bayshore, Suite 777 Burlingame, CA 94010 If intended for City, to: Attn: City Manager City of Coppell, Texas P. O. Box 9478 Coppell, Texas 75019 DaVita Rx/Tax Abatement Agreement –Page 7 67074 With copy to: Peter G. Smith Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Lincoln Plaza 500 N. Akard Dallas, Texas 75201 6.3 City Council Authorization. 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. 6.4 Severability. 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. 6.5 Applicable Law. 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. The parties agree to submit to the personal and subject matter jurisdiction of said court. 6.6 Counterparts. 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. 6.7 Entire Agreement. 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. 6.8 Recordation of Agreement. A certified copy of this Agreement shall be recorded in the Deed Records of Dallas County, Texas. 6.9 Incorporation of Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 6.10 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 6.11 Chamber of Commerce. During the term of this Agreement, Owner agrees to maintain continuous corporate membership in the Coppell Chamber of Commerce. 6.12 Conditions Precedent. This Agreement and the Tax Abatement provided herein are contingent on and subject to: (i) Lessee entering into the Lease on or before December 31, 2006; and (ii) Lessee occupy the Improvements on or before December 31, 2006. DaVita Rx/Tax Abatement Agreement –Page 8 67074 EXECUTED in duplicate originals the ____ day of ________________, 2006. City of Coppell, Texas By: ______________________________________ Douglas N. Stover, Mayor Attest: By: _______________________________________ Libby Ball, City Secretary Agreed As To Form: By: City Attorney EXECUTED in duplicate originals the ____ day of __________________, 2006. DaVita Rx, Inc. By: __________________________________ Name: _________________________________ Title: __________________________________ DaVita Rx/Tax Abatement Agreement –Page 9 67074 City’s Acknowledgment State of Texas § § County of Dallas § This instrument was acknowledged before me on the _____ day of _______________, 2006, by Douglas N. Stover, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of said municipality. ___________________________________ Notary Public, State of Texas My Commission Expires: _________________________ Lessee’s Acknowledgment State of Texas § § County of ________ § This instrument was acknowledged before me on the _______ day of ___________, 2006, by ____________________, being the _________________ of DaVita Rx, a _________________on behalf of said _________________________. Notary Public, State of Texas My Commission Expires: DaVita Rx/Tax Abatement Agreement –Page 10 67074 Exhibit “A” Legal Description Lots 1R & 1R1, Block D Northlake 635 Business Park Addition STATE OF TEXAS COUNTY OF DALLAS WHEREAS, Coppell Commerce Center, Ltd., a Texas Limited Partnership, is the owner of a tract of land situated in the Cordelia Bowen Survey, Abstract No. 56, in the City of Coppell, Dallas County, Texas, said tract being all of that tract of land described in deed to said Coppell Commerce Center, Ltd. as recorded in Volume 99223, Page 631, Deed Records, Dallas County, Texas (D.R.D.C.T.), said tract also being all of Coppell Business Center II, an addition to the City of Coppell as recorded in Volume 99217, Page 1763, D.R.D.C.T., and being more particularly described as follows: BEGINNING at a ½-inch found iron rod for the intersection of the west right-of-way line of Beltline Road (a variable width right-of-way) and the north right-of-way line of Lakeshore Drive (a variable width right-of-way, 90 feet wide at this point), as dedicated by the plat of Northlake 635 Business Park, an addition to the City of Coppell as recorded in Volume 85056, Page 3358, D.R.D.C.T.: THENCE along the north, northeast and east right-of-way lines of said Lakeshore Drive, the following calls: North 89 degrees 30 minutes 00 seconds West, a distance of 185.34 feet to a ½-inch set iron rod with a yellow plastic cap stamped ‘HALFF ASSOC. INC.’ (hereinafter referred to as ‘with cap’) for the point of curvature of a circular curve to the left having a central angle of 12 degrees 50 minutes 19 seconds and a radius of 300.00 feet, whose chord bears South 84 degrees 04 minutes 51 seconds West a distance of 67.08 feet; Westerly, along said curve for an arc distance of 67.22 feet to a ½-inch set iron rod with cap for the point of reverse curvature of a circular curve to the right having a central angel of 12 degrees 50 minutes 19 seconds and a radius of 300.00 feet, whose chord bears South 84 degrees 04 minutes 51 seconds West a distance of 67.08 feet; Westerly, along said curve for an arc distance of 67.22 feet to a ½-inch found iron rod with cap stamped ‘Powell and Powell’ for the point of tangency, said Lakeshore Drive being a 60 foot right-of-way at this point; North 89 degrees 30 minutes 00 seconds West, a distance of 388.27 feet to a ½-inch set iron rod with cap for the point of curvature of a circular curve to the right having a central angle of 52 degrees 53 minutes 07 seconds and a radius of 320.00 feet, whose chord bears South 63 degrees 03 minutes 27 seconds West a distance of 284.99 feet; DaVita Rx/Tax Abatement Agreement –Page 11 67074 Northwesterly, along said curve for an arc distance of 295.37 feet to a ½-inch found iron rod for the point of tangency; North 36 degrees 36 minutes 53 seconds West, a distance of 398.49 feet to a ½-inch set iron rod with cap for the point of curvature of a circular curve to the right having a central angle of 37 degrees 06 minutes 53 seconds and a radius of 320.00 feet, whose chord bears North 18 degrees 03 minutes 27 seconds West a distance of 203.68 feet; Northerly, along said curve for an arc distance of 207.29 feet to a ½-inch found iron rod for the point of tangency; North 00 degrees 30 minutes 00 seconds East, a distance of 556.13 feet to a ½-inch found iron rod with cap for the intersection of said east right-of-way line of Lakeshore Drive with a line of 5 feet north of and parallel to the north line of a 50 foot Open Channel Drainage Easement as dedicated by the aforementioned plat of Northlake 635 Business Park; THENCE departing said east line and along said parallel line, the following calls: South 89 degrees 30 minutes 00 seconds East, a distance of 629.41 feet to a ½-inch found iron rod with cap for the point of curvature of circular curve to the left having a central angle of 27 degrees 17 minutes 51 seconds and a radius of 470.00 feet , whose chord bears North 76 degrees 51 minutes 05 seconds East a distance of 221.81 feet; Easterly, along said curve for an arc distance of 223.92 feet to a ½-inch set iron rod with cap for the point of reverse curvature of a circular curve to the right having a central angel of 27 degrees 17 minutes 51 seconds and a radius of 530.00 feet, whose chord bears South 76 degrees 51 minutes 05 seconds East a distance of 250.13 feet; Easterly, along said curve for an arc distance of 252.51 feet to a ½-inch found iron rod for the point of tangency; South 89 degrees 30 minutes 00 seconds East, a distance of 168.37 feet to a point for the intersection of said parallel line and the aforementioned west right-of-way line of Beltline Road, said point bears North 00 degrees 30 minutes 00 seconds East, a distance of 30.00 feet from the intersection of the center line of said 50 foot Easement and said west right-of-way line; THENCE South 00 degrees 30 minutes 00 seconds West, along said west right-of-way line, a distance of 1235.26 feet to a ½-inch set iron rod with cap for corner; THENCE South 10 degrees 48 minutes 36 seconds East, continuing along said west right-of-way line, a distance of 56.09 feet to the POINT OF BEGINNING AND CONTAINING 1,430,216 square feet or 32.83 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 19 ✔ 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 the property owned by International Business Machines Corporation, described as Block 5, Lots 1 & 2 of the Park West Commerce Center(29.2871 acres) and located at the northwest corner of Belt Line Road and Wrangler Drive. The Public Hearing Notice was published in the Citizens Advocate on Friday, December 1, 2006. Staff recommends that City Council hold the Public Hearing for designation of a reinvestment zone for International Business Machines Corporation. !IBM PH - 1 AR NOTICE OF PUBLIC HEARING OF DESIGNATION OF REINVESTMENT ZONE A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, in the Council Chambers, Town Center, 255 Parkway Boulevard, Coppell, Texas on the 12th day of December, 2006, at 7:00 P.M., to consider designation of the property described as Block 5, Lots 1 & 2 of the Park West Commerce Center(29.2871 acres), located at the northwest corner of Belt Line Road and Wrangler Drive, Coppell, Texas, International Business Machines Corporation as a Reinvestment Zone under Chapter 312 of the Texas Property Tax Code. The Council will seek to determine whether the improvements sought to be made in the zone are feasible and practical and will be a benefit to the land included in the zone and to the City after the expiration of a tax abatement agreement to be entered into pursuant to Section 312.204 of the Texas Property Tax Code. At the hearing, interested persons are entitled to speak and present evidence for or against the designation. Citizens Advocate December 1, 2006 PUBLIC NOTICE 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). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 20 ✔ ORDINANCE Consider approval of an Ordinance designating International Business Machines Corporation, Reinvestment Zone No. 50, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding designation of the reinvestment zone on December 12, 2006. Staff recommends City Council approve the Ordinance designating International Business Machines Corporation Reinvestment Zone No. 50 and authorize the Mayor to sign. !IBM Ord - 1 AR 1 64587 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 50 (IBM SOLUTIONS CENTER); PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAL- INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF BENEFIT TO THE LAND AND THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Coppell, Texas, has caused notice to be published in a newspaper having general circulation in the City and has delivered such notice to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property described herein; and WHEREAS, the City Council of the City of Coppell, Texas, has conducted a public hearing on the designation of the area described herein as a reinvestment zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, DALLAS COUNTY, TEXAS THAT: SECTION 1:That the City Council of the City of Coppell, Texas finds that the area described herein will, if designated as a reinvestment zone, be reasonably likely to contribute to the retention or expansion of primary employment, or to attract major investment in the zone that will be of benefit to the property and contribute to the economic development of the City. The City Council further finds that the improvements sought are feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement. SECTION 2.That pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property described in Exhibit “A” attached hereto and made a part hereof for all purposes is hereby designated as a reinvestment zone and for identification is assigned the name “Reinvestment Zone No. 50 (IBM Solutions Center).” 2 64587 SECTION 3.That the property within Reinvestment Zone No. 50 is eligible for commercial-industrial tax abatement effective on January 1, 2006. SECTION 4.If any article, paragraph or subdivision, clause or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so decided to be invalid or unconstitutional. SECTION 5.That all provisions of 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 6.This ordinance shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, on the ______ day of ___________________, 2006. APPROVED: DOUGLAS STOVER, MAYOR ATTEST: LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ___________________________________ CITY ATTORNEY (PGS/bm 11/30/06)(65487) EXHIBIT “A” LEGAL DESCRIPTION OF LAND LEGAL DESCRIPTION PARK WEST COMMERCE CENTER LOTS 1 & 2 OF BLOCK 5 Being a tract of land situated in the James A. Simmons Survey Abstract No. 1296, in the City of Coppell, Dallas County, Texas, and being all of Block 5 Park West Commerce Center as recorded in Volume 97248 Page 31 Dallas County Deed Records (D.C.R.D), and being more particularly described as follows: BEGINNING at a ½-inch iron rod found at the northeast corner of Lot 1, Block 6, Park West Commerce Center, the northwest corner of Lot 1, Block 5, said point being located along the south right-of-way line of Airline Drive (60 feet wide); THENCE South 89 degrees 06 minutes 46 seconds East along said south right-of-way line of Airline Drive a distance of 760.47 feet to a ½-inch iron rod with cap set for a corner; THENCE South 74 degrees 11 minutes 05 seconds East continuing along said south right-of-way line a distance of 64.05 feet to a ½-inch iron rod with cap set for a corner; THENCE South 89 degrees 06 minutes 46 seconds East a distance of 124.92 feet to a ½-inch iron rod with cap set for a corner at the northwest point of a radial corner clip located along the west right-of-way line of Beltline Road (120 foot right-of-way); THENCE along said corner clip, departing said south right-of-way an arc distance of 59.94 feet, through a central angle of 90 degrees 22 minutes and 29 seconds, a radius of 38.00 feet to a ½- inch iron rod with cap set for a corner on the west right-of-way line of Beltline Road; THENCE South 01 degree 15 minutes 30 seconds West along said west right-of-way line a distance of 332.09 feet to a ½-inch iron rod with cap set for a corner; THENCE South 08 degrees 06 minutes 14 seconds West a distance of 100.72 feet to a ½-inch iron rod with cap set for a corner; THENCE South 01 degree 15 minutes 30 seconds West a distance of 149.25 feet to a ½-inch iron rod with cap set for a corner; THENCE South 89 degrees 06 minutes 46 seconds East a distance of 12.00 feet to a ½-inch iron rod with cap set for a corner; THENCE South 01 degree 15 minutes 30 seconds West a distance of 452.07 feet to a ½-inch iron rod with cap set for a corner; THENCE South 08 degrees 06 minutes 06 seconds West a distance of 100.71 feet to a ½-inch iron rod with cap set for a corner; THENCE South 01 degree 15 minutes 30 seconds West a distance of 100.00 feet to a ½-inch iron rod with cap set for a corner at the northeast point of a corner clip located along the north right-of-way line of Wrangler Drive; THENCE South 46 degrees 04 minutes 22 seconds West a distance of 28.41 feet to a ½-inch iron rod with cap set for a corner on the north right-of-way line of Wrangler Drive (65 foot right-of- way); THENCE North 89 degrees 06 minutes 46 seconds West continuing along said north right-of- way line a distance of 945.13 feet to a ½-inch iron rod set for a corner at the southwest corner of Lot 2, Block 5; THENCE North 00 degrees 53 minutes 14 seconds East departing said north right-of-way line and along the east line of said Lot 1, Block 6 a distance of 1307.99 feet to the POINT OF BEGINNING AND CONTAINING 1,275,502 square feet or 29.2871 acres of land more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 21 ✔ RESOLUTION Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and International Business Machines Corporation, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding the designation of the reinvestment zone on December 12, 2006. The Coppell Economic Development Committee unanimously recommended approval of this abatement agreement request on February 1, 2006. Staff recommends City Council approve the Tax Abatement Agreement between the City of Coppell and International Business Machines Corporation and authorize the Mayor to sign it. !IBM Res - 1 AR 1 11891 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 IBM SOLUTIONS CENTER; 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 IBM Solutions Center, 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 11891 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 ________________, 2006. CITY OF COPPELL, TEXAS ___________________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ____________________________________ CITY ATTORNEY (PGS/si 12/04/06) IBM Solution Center/Tax Abatement Agreement –Page 1 64188 STATE OF TEXAS § § Tax Abatement Agreement COUNTY OF DALLAS § IBM Solution Center This Tax Abatement Agreement (the “Agreement”) is entered into by and between the City of Coppell, Texas (the “City”), and International Business Machines Corporation (“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. 50 (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, Lessee leases the real property described in Exhibit “A” (“Land”) and intends to reconfigure, or cause to be reconfigured, approximately 50,000 square feet of space in the existing IBM Call Center building located at 1177 Belt Line Road (hereinafter defined as the “Improvements”) on the Land and intends to locate certain Tangible Personal Property (hereinafter defined ) at the Improvements; 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 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 IBM Solution Center/Tax Abatement Agreement –Page 2 64188 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 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: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Base Year Taxable Value” shall mean the Taxable Value for the Tangible Personal Property for the year in which the Tax Abatement Agreement is executed (2006). “Commencement of Construction” shall mean that: (i) the plans have been prepared and all approvals thereof required by applicable governmental authorities have been obtained for reconfiguration of the Improvements; (ii) all necessary permits for the reconfiguration of the Improvements pursuant to the respective plans therefore having been issued by all applicable governmental authorities; and (iii) the construction of the vertical elements of the reconfiguration of the Improvements has commenced. “Completion of Construction” shall mean that: (i) the reconfiguration of the Improvements, on the Land has been substantially completed; (ii) the first final, permanent certificate(s) of occupancy for the occupancy of the Improvements following the reconfiguration thereof, has been issued by the City. “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. “First Year of Abatement” shall mean January 1 of the calendar year immediately following the date of issuance of the first final certificate of occupancy for the Lessee’s occupancy IBM Solution Center/Tax Abatement Agreement –Page 3 64188 for the reconfigured Improvements for the IBM Solution Center, unless otherwise agreed by the parties. “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. “Improvements” shall mean the reconfiguration of approximately 50,000 square feet of space in the existing IBM Call Center building located at 1177 Belt Line Road on the Land to house the IBM Solution Center and the Tangible Personal Property. “Land” means the real property described in Exhibit A. “Premises” shall collectively mean the Land and the Improvements following the reconfiguration thereof, but excluding Tangible Personal Property. “Tangible Personal Property” shall mean tangible personal property, equipment and fixtures owned by or leased by Lessee, other than inventory or supplies, located in the IBM Solution Center within the Improvements following the reconfiguration thereof, subsequent to the execution of this Agreement and which is assigned an account number by the central appraisal district for ad valorem tax appraisal purposes, separate and apart from any other tangible personal property located at the Premises prior to the execution of this Agreement. “Taxable Value” means the appraised value as certified by the Appraisal District as of January 1 of a given year. Article II General Provisions 2.1 Lessee is the lessee of the Premises, which Premises is located within the city limits of the City and within the Zone. Lessee intends to reconfigure, or cause to be reconfigured, the Improvements on the Land and to locate Tangible Personal Property (hereinafter defined) on the Premises. 2.2 The Premises are not in an improvement project financed by tax increment bonds. 2.3 This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 2.4 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. 2.5 Lessee shall before May 1, of each calendar year that the Agreement is in effect, certify in writing to the City that it is in compliance with each term of the Agreement. IBM Solution Center/Tax Abatement Agreement –Page 4 64188 2.6 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. 2.7 Lessee agrees, subject to events of Force Majeure or (“Casualty”), to continuously lease and occupy the Improvements for a period of at least five (5) consecutive years beginning with the First Year of Abatement. Article III Tax Abatement Authorized 3.1 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. 3.2 Subject to the terms and conditions of this Agreement, and provided the Taxable Value of the Tangible Personal Property, is at least Five Million Five Hundred Thousand Dollars ($5,500,000.00) as of January 1 of each year thereafter that this Agreement is in effect, the City hereby grants 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 Tangible Personal Property subject to abatement will only apply to the Tangible Personal Property located in the IBM Solution Center within the reconfigured Improvements after this Agreement is executed and which is assigned an account number by the central appraisal district for ad valorem tax appraisal purposes, separate and apart from any other tangible personal property located at the Premises prior to the execution of this Agreement. 3.3 The period of tax abatement herein authorized shall be for a period of five (5) years. 3.4 During the period of tax abatement herein authorized, 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. Article IV Improvements 4.1 Lessee agrees to reconfigure approximately 50,000 square feet of the existing IBM Call Center building located on the Land at 1177 Belt Line Road to house the IBM Solution Center (the “IBM Solution Center”), and agrees to locate Tangible Personal Property within the IBM Solution Center with a Taxable Value of at least Five Million Five Hundred Thousand Dollars ($5,500,00.00) as of the First Year of Abatement and to locate and maintain Tangible Personal Property within the IBM Solution Center with a Taxable Value of at least Five Million Five Hundred Thousand Dollars ($5,500,000.00) as of January 1 of each year thereafter that this Agreement is in effect. Nothing in this Agreement shall obligate Lessee to reconfigure the IBM Solution Center/Tax Abatement Agreement –Page 5 64188 Improvements on the Land or to locate Tangible Personal Property on the Premises but said actions are a condition precedent to Lessee’s tax abatement pursuant to this Agreement. 4.2 As a condition precedent to the initiation of Lessee’s tax abatement pursuant to this Agreement, Lessee will diligently and faithfully, in good and workmanlike manner, subject to events of Force Majeure to cause Commencement of Construction to occur on or before February 1, 2006 and to cause Completion of Construction to occur on or before June 30, 2006, 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 Lessee shall have such additional time to complete and maintain the Improvements as may be required in the event of “Force Majeure,” if Lessee is diligently and faithfully pursuing completion of the Improvements. 4.3 Lessee agrees to maintain the Improvements during the term of this Agreement in accordance with all applicable state and local laws, codes, and regulations. Lessee agrees that the Improvements shall be used only as an office/warehouse building for a period of five (5) years commencing with the First Year of Abatement. 4.4 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 Lessee, and in accordance with 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). 4.5 Construction plans for the reconfiguration of the Improvements constructed will be filed with the City, which shall be deemed to be incorporated by reference herein and made a part hereof for all purposes. Article V Default: Recapture of Tax Revenue 5.1 In the event Lessee: (i) fails to complete the reconfiguration of 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 Lessee 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 Lessee 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 Lessee shall, within thirty (30) days after demand, pay to the City all taxes which otherwise would have been paid by the Lessee to the City without benefit of a tax abatement for the 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 Lessee, its successors and assigns and shall constitute a tax lien against the Tangible Personal Property and shall become due, owing and shall be paid to the City within thirty (30) days after termination. IBM Solution Center/Tax Abatement Agreement –Page 6 64188 5.2 Upon breach by Lessee of any obligations under this Agreement the City shall notify the Lessee 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 the Lessee 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. 5.3 If the Lessee 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 the Lessee. 5.4 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 the Lessee, 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. Article VI Miscellaneous 6.1 Annual Application for Tax Exemption. It shall be the responsibility of the 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. 6.2 Notice. 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 Lessee, to: IBM Corporation Attn: Wayne Spinei 1133 Westchester Avenue White Plains, NY 10604 IBM Solution Center/Tax Abatement Agreement –Page 7 64188 With a copy to: IBM Corporation Attn: Vincent Palmiotto 150 Kettleton Road Southbury, Ct. 06488 If intended for City, to: Attn: City Manager City of Coppell, Texas P. O. Box 9478 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 6.3 City Council Authorization. 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. 6.4 Severability. 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. 6.5 Applicable Law. 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. The parties agree to submit to the personal and subject matter jurisdiction of said court. 6.6 Counterparts. 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. 6.7 Entire Agreement. 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. IBM Solution Center/Tax Abatement Agreement –Page 8 64188 6.8 Recordation of Agreement. A certified copy of this Agreement shall be recorded in the Deed Records of Dallas County, Texas. 6.9 Incorporation of Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 6.10 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. Signature Page to Follow IBM Solution Center/Tax Abatement Agreement –Page 9 64188 EXECUTED in duplicate originals the ____ day of ________________, 2006. City of Coppell, Texas By: ______________________________________ Douglas N. Stover, Mayor Attest: By: _______________________________________ Libby Ball, City Secretary Agreed As To Form: By: City Attorney (PGS/03 1006)(64188) EXECUTED in duplicate originals the ____ day of __________________, 2006. International Business Machines Corporation By: __________________________________ Name: _________________________________ Title: __________________________________ IBM Solution Center/Tax Abatement Agreement –Page 10 64188 City’s Acknowledgment State of Texas § § County of Dallas § This instrument was acknowledged before me on the _____ day of _______________, 2006, by Douglas N. Stover, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of said municipality. ___________________________________ Notary Public, State of Texas My Commission Expires: _________________________ Lessee’s Acknowledgment State of Texas § § County of Dallas § This instrument was acknowledged before me on the _______ day of ___________, 2006, by ____________________, being the _________________ of International Business Machines Corporation, a New York corporation on behalf of said corporation. Notary Public, State of Texas My Commission Expires: IBM Solution Center/Tax Abatement Agreement –Page 11 64188 Exhibit “A” Legal Description of the Land LEGAL DESCRIPTION PARK WEST COMMERCE CENTER LOTS 1 & 2 OF BLOCK 5 Being a tract of land situated in the James A. Simmons Survey Abstract No. 1296, in the City of Coppell, Dallas County, Texas, and being all of Block 5 Park West Commerce Center as recorded in Volume 97248 Page 31 Dallas County Deed Records (D.C.R.D), and being more particularly described as follows: BEGINNING at a ½-inch iron rod found at the northeast corner of Lot 1, Block 6, Park West Commerce Center, the northwest corner of Lot 1, Block 5, said point being located along the south right-of-way line of Airline Drive (60 feet wide); THENCE South 89 degrees 06 minutes 46 seconds East along said south right-of-way line of Airline Drive a distance of 760.47 feet to a ½-inch iron rod with cap set for a corner; THENCE South 74 degrees 11 minutes 05 seconds East continuing along said south right-of-way line a distance of 64.05 feet to a ½-inch iron rod with cap set for a corner; THENCE South 89 degrees 06 minutes 46 seconds East a distance of 124.92 feet to a ½-inch iron rod with cap set for a corner at the northwest point of a radial corner clip located along the west right-of-way line of Beltline Road (120 foot right-of-way); THENCE along said corner clip, departing said south right-of-way an arc distance of 59.94 feet, through a central angle of 90 degrees 22 minutes and 29 seconds, a radius of 38.00 feet to a ½- inch iron rod with cap set for a corner on the west right-of-way line of Beltline Road; THENCE South 01 degree 15 minutes 30 seconds West along said west right-of-way line a distance of 332.09 feet to a ½-inch iron rod with cap set for a corner; THENCE South 08 degrees 06 minutes 14 seconds West a distance of 100.72 feet to a ½-inch iron rod with cap set for a corner; THENCE South 01 degree 15 minutes 30 seconds West a distance of 149.25 feet to a ½-inch iron rod with cap set for a corner; THENCE South 89 degrees 06 minutes 46 seconds East a distance of 12.00 feet to a ½-inch iron rod with cap set for a corner; THENCE South 01 degree 15 minutes 30 seconds West a distance of 452.07 feet to a ½-inch iron rod with cap set for a corner; IBM Solution Center/Tax Abatement Agreement –Page 12 64188 THENCE South 08 degrees 06 minutes 06 seconds West a distance of 100.71 feet to a ½-inch iron rod with cap set for a corner; THENCE South 01 degree 15 minutes 30 seconds West a distance of 100.00 feet to a ½-inch iron rod with cap set for a corner at the northeast point of a corner clip located along the north right-of-way line of Wrangler Drive; THENCE South 46 degrees 04 minutes 22 seconds West a distance of 28.41 feet to a ½-inch iron rod with cap set for a corner on the north right-of-way line of Wrangler Drive (65 foot right-of- way); THENCE North 89 degrees 06 minutes 46 seconds West continuing along said north right-of- way line a distance of 945.13 feet to a ½-inch iron rod set for a corner at the southwest corner of Lot 2, Block 5; THENCE North 00 degrees 53 minutes 14 seconds East departing said north right-of-way line and along the east line of said Lot 1, Block 6 a distance of 1307.99 feet to the POINT OF BEGINNING AND CONTAINING 1,275,502 square feet or 29.2871 acres of land more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 22 ✔ 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 the property owned by Industrial Developments International Texas, L.P., described as Lot 1, Block 1 of Belt Line Trade Center (27.072 acres) and located on the north side of Belt Line Road, east of Denton Tap Road. The Public Hearing Notice was published in the Citizens Advocate on Friday, December 1, 2006. Staff recommends that City Council hold the Public Hearing for designation of a reinvestment zone for Industrial Developments International Texas, L.P. !IDI PH - 1 AR NOTICE OF PUBLIC HEARING OF DESIGNATION OF REINVESTMENT ZONE A PUBLIC HEARING will be conducted by the City Council of the City of Coppell, Texas, in the Council Chambers, Town Center, 255 Parkway Boulevard, Coppell, Texas on the 12th day of December, 2006, at 7:00 P.M., to consider designation of the property described as Lot 1, Block 1 of Belt Line Trade Center (27.072 acres), located on the north side of Belt Line Road, east of Denton Tap Road, Coppell, Texas, Industrial Developments International Texas, L.P., as a Reinvestment Zone under Chapter 312 of the Texas Property Tax Code. The Council will seek to determine whether the improvements sought to be made in the zone are feasible and practical and will be a benefit to the land included in the zone and to the City after the expiration of a tax abatement agreement to be entered into pursuant to Section 312.204 of the Texas Property Tax Code. At the hearing, interested persons are entitled to speak and present evidence for or against the designation. Citizens Advocate December 1, 2006 PUBLIC NOTICE 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). WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 23 ✔ ORDINANCE Consider approval of an Ordinance designating Industrial Developments International Texas, L.P., Reinvestment Zone No. 52, and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding designation of the reinvestment zone on December 12, 2006. Staff recommends City Council approve the Ordinance designating Industrial Developments International Texas, L.P. Reinvestment Zone No. 52 and authorize the Mayor to sign. !IDI Ord - 1 AR 1 66452 ORDINANCE NO. _________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, DESIGNATING REINVESTMENT ZONE NO. 52 (INDUSTRIAL DEVELOPMENTS INTERNATIONAL TEXAS, L.P.); PROVIDING ELIGIBILITY OF THE ZONE FOR COMMERCIAL-INDUSTRIAL TAX ABATEMENT; CONTAINING FINDINGS THAT THE AREA QUALIFIES TO BE DESIGNATED AS A REINVESTMENT ZONE AND THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICABLE AND OF BENEFIT TO THE LAND AND THE CITY; PROVIDING A SEVERABILITY CLAUSE; PROVIDING A REPEALING CLAUSE; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council of the City of Coppell, Texas, has caused notice to be published in a newspaper having general circulation in the City and has delivered such notice to the presiding officer of the governing body of each taxing unit that includes in its boundaries real property described herein; and WHEREAS, the City Council of the City of Coppell, Texas, has conducted a public hearing on the designation of the area described herein as a reinvestment zone; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, DALLAS COUNTY, TEXAS THAT: SECTION 1:That the City Council of the City of Coppell, Texas finds that the area described herein will, if designated as a reinvestment zone, be reasonably likely to contribute to the retention or expansion of primary employment, or to attract major investment in the zone that will be of benefit to the property and contribute to the economic development of the City. The City Council further finds that the improvements sought are feasible and practicable and would be of benefit to the land to be included in the zone and to the City after the expiration of a tax abatement agreement. SECTION 2.That pursuant to the provisions of Section 312.201 of the Texas Tax Code, the property described in Exhibit “A” attached hereto and made a part hereof for all purposes is hereby designated as a reinvestment zone and for identification is assigned the name “Reinvestment Zone No. 52 (Industrial Developments International Texas, L.P.).” 2 66452 SECTION 3.That the property within Reinvestment Zone No. 52 is eligible for commercial-industrial tax abatement effective on January 1, 2006. SECTION 4.If any article, paragraph or subdivision, clause or provision of this ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this ordinance as a whole or any part or provision thereof, other than the part so decided to be invalid or unconstitutional. SECTION 5.That all provisions of 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 6.This ordinance shall take effect immediately from and after its passage, as the law and charter in such cases provide. DULY PASSED by the City Council of the City of Coppell, Texas, on the ______ day of ___________________, 2006. APPROVED: DOUGLAS STOVER, MAYOR ATTEST: LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ___________________________________ CITY ATTORNEY (PGS/si 11/30/06)(66452) EXHIBIT “A” LEGAL DESCRIPTION OF LAND OWNER'S CERTIFICATE WHEREAS INDUSTRIAL DEVELOPMENTS INTERNATIONAL (TEXAS), L.P., a Georgia Limited Partnership is the owner of a 27.072 acre tract of land located in the City of Coppell, Dallas County, Texas, situated in the McKinney & Williams Survey, Abstract No. 1054 and the J.G. Carlock Survey, Abstract No. 312, and being Tract 1 of those tracts conveyed to Industrial Developments International (Texas), L.P. by deed recorded in Volume 2004028, Page 146 of the Deed Records of Dallas County, Texas (DRDCT) and being more particularly described as follows: BEGINNING at a 1/2" iron pin found, said iron pin being the northeast corner of a tract of land conveyed to Shams Real Estate Partners (LTD) by deed recorded in Volume 2000240, Page 2919 DRDCT, said iron pin also being on the southerly line of a Dallas Area Rapid Transit (DART) right-of-way (formerly St. Louis and Southwestern R.R. right-of-way); THENCE N 75ø57'00" E along said southerly right-of-way line of DART, a distance of 559.73 feet to a capped 1/2" iron pin set from which a capped (NDM) 1/2" iron pin found bears N 80ø37'07" W, 1.11 feet, said capped iron pin set also being the northwest corner of a remainder tract conveyed to Dallas Power and Light Company by deed recorded in Volume 4414, Page 83 DRDCT, said capped iron pin set also being the Point of Curvature of a circular curve to the right having a radius of 604.36 feet, a central angle of 40ø46'57" and being subtended by a chord which bears S 83ø39'31" E , 421.15 feet; THENCE along said curve to the right and westerly line of said Dallas Power and Light Company tract, a distance of 430.18 feet to a capped 1/2" iron pin set from which a Capped (NDM) 1/2" iron pin found bears N 66ø30'55" W, 0.52 feet and from which a bent 1/2" iron pin found bears N 83ø25'26" W, 0.22 feet; THENCE S 63ø16'03" E tangent to said curve and along said westerly line of said Dallas Power and Light Company tract, a distance of 297.95 feet to a capped 1/2" iron pin set, said capped iron pin set also being on the northerly right-of-way line of Beltline Road (120' ROW), said capped iron pin set also being the Point of Curvature of a non-tangent circular curve to the left having a radius of 1969.68 feet, a central angle of 13ø19'23" and being subtended by a chord which bears S 37ø56'50" W, 456.98 feet; THENCE southwesterly along said curve to the left and said northerly right-of-way line of Beltline Road, a distance of 458.01 feet to a capped 1/2" iron pin set from which a 5/8" iron pin found bears N 69ø10'20" E, 0.36 feet; THENCE S 31ø17'08" W tangent to said curve and along said northerly right-of-way line of Beltline Road, a distance of 581.65 feet to a capped 1/2" iron pin set, said capped iron pin set also being the Point of Curvature of a circular curve to the right having a radius of 1372.40 feet, a central angle of 37ø32'01" and being subtended by a chord which bears S 50ø03'09" W, 883.05 feet; THENCE along said curve to the right and said northerly right-of-way line of Beltline Road, a distance of 899.04 feet to a capped 1/2" iron pin set, said capped iron pin set also being the southeast corner of said Shams Real Estate Partners (LTD) tract; THENCE N 01ø15'45" E along the east line of said Shams Real Estate Partners (LTD), a distance of 1469.45 feet to the Point of Beginning and containing 1,179,247 square feet or 27.072 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 24 ✔ RESOLUTION Consider approval of a Resolution approving a Tax Abatement Agreement between the City of Coppell and Industrial Developments International Texas, L.P., and authorizing the Mayor to sign. City Council is scheduled to conduct a Public Hearing regarding the designation of the reinvestment zone on December 12, 2006. The Coppell Economic Development Committee unanimously recommended approval of this abatement agreement request on April 5, 2006. Staff recommends City Council approve the Tax Abatement Agreement between the City of Coppell and Industrial Developments International Texas, L.P. and authorize the Mayor to sign it. !IDI Res - 1 AR 1 66454 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 INDUSTRIAL DEVELOPMENTS INTERNATIONAL TEXAS, L.P.; 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 Industrial Developments International Texas, L.P., a Georgia Limited Partnership, 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 66454 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 ________________, 2006. CITY OF COPPELL, TEXAS ___________________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: ___________________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: ____________________________________ CITY ATTORNEY (PGS/si 11/30/06) IDI//Tax Abatement Agreement –Page 1 66448 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”), and Industrial Developments International Texas, L.P., a Georgia Limited Partnership (“Owner”), 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. 52 (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” (“Land”) and intends to construct a Class A distribution center containing approximately 375,000 square feet of space (the “Improvements”) on the Land; and WHEREAS, Owner’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 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 IDI//Tax Abatement Agreement –Page 2 66448 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 the Owner 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: Article I Definitions Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: “Base Year Taxable Value” shall mean the Taxable Value for the Land for the year in which the Tax Abatement Agreement is executed (2006). “Building” shall mean a Class A distribution center building containing 375,000 square feet or more of space to be constructed on the Land. “Commencement of Construction” shall mean that: (i) the plans have been prepared and all approvals thereof and permits with respect thereto required by applicable governmental authorities have been obtained for construction of the Improvements; (ii) all necessary permits for the construction of the Restaurant, on the Land pursuant to the respective plans therefore having been issued by all applicable governmental authorities; and (iii) grading of the Land or the construction of the vertical elements of the Improvements has commenced. “Completion of Construction” shall mean: (i) substantial completion of the Improvements; and (ii) a final certificate of occupancy has been issued for the Buildings. “Effective Date” shall mean the last date of execution of this Agreement. “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. “First Year of Abatement” shall mean January 1 of the calendar year immediately following the date of issuance of the final certificate of occupancy for the Building. IDI//Tax Abatement Agreement –Page 3 66448 “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. “Improvements” shall collectively mean the Building 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(s). “Land” means the real property described in Exhibit A. “Premises” shall collectively mean the Land and the Improvements following construction thereof. “Taxable Value” means the appraised value as certified by the Appraisal District as of January 1 of a given year. Article II General Provisions 2.1 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. 2.2 The Premises are not in an improvement project financed by tax increment bonds. 2.3 This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 2.4 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. 2.5 The Owner agrees to provide to the tenants of the Premises, the benefit of the tax abatement of the Improvements granted herein. Owner shall, upon written request, provide the City, with satisfactory evidence that the benefits of this Tax Abatement Agreement have been provided to any such tenants. 2.6 Owner shall before May 1, of each calendar year that the Agreement is in effect, certify in writing to the City that it is in compliance with each term of the Agreement. 2.7 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. IDI//Tax Abatement Agreement –Page 4 66448 Article III Tax Abatement Authorized 3.1 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. 3.2 Subject to the terms and conditions of this Agreement, and provided the Taxable Value for the Improvements, excluding the Land, is at least Six Million Six Hundred Thousand Dollars ($6,600,000.00) as of January 1 of the First Year of Abatement 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. The actual percentage of Taxable Value of the Improvements subject to 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. 3.3 The period of tax abatement herein authorized shall be for a period of five (5) consecutive years. 3.4 During the period of tax abatement herein authorized, Owner shall be subject to all taxation not abated, including but not limited to, sales tax and ad valorem taxation on land, inventory and supplies. Article IV Improvements 4.1 Owner owns, the Land and intends to construct or caused to be constructed thereon the Improvements. Nothing in this Agreement shall obligate Owner to construct the Improvements on the Land but said action is a condition precedent to tax abatement pursuant to this Agreement. 4.2 As a condition precedent to the initiation of the Owner’s tax abatement pursuant to this Agreement, Owner agrees, subject to events of Force Majeure, to cause Commencement of Construction of the Improvements to occur on or before July 1, 2006, and to cause Completion of Construction of the Improvements to occur within twelve (12) calendar months thereafter, as good and valuable consideration for this Agreement, and that all construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations, (or valid waiver thereof). 4.3 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. 4.4 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 a warehouse distribution center (with ancillary office uses) for a period of five (5) years commencing on the date the final certificate of occupancy is issued for the Building. IDI//Tax Abatement Agreement –Page 5 66448 4.5 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 in accordance with Owner’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). Article V Default: Recapture of Tax Revenue 5.1 In the event Owner: (i) fails to cause Completion of Construction of 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 Owner 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 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 by the Owner to the City without benefit of a tax abatement for the Improvements, 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 against the Premises, and shall become due, owing and shall be paid to the City within thirty (30) days after termination. 5.2 Upon breach by Owner of any obligations under this Agreement, the City shall notify the 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 the 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 default must be cured. 5.3 If the 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 the Owner. 5.4 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 sixty (60) 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, without tax abatement for the years in which tax abatement hereunder was received by the Owner, 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 sixty (60) day payment period. IDI//Tax Abatement Agreement –Page 6 66448 Article VI Annual Application for Tax Exemption It shall be the responsibility of the 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. Article VII Annual Rendition The Owner shall annually render the value of the Improvements to the Appraisal District and provide a copy of the same to the City upon written request. Article VIII Miscellaneous 8.1 Notice. 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: John Leinbaugh Industrial Developments International Texas, L.P. Two Lincoln Centre Suite 1275 5420 LBJ Freeway Dallas, Texas 75240 With a copy to: Industrial Developments International, Inc. 3424 Peachtree Road, N.E. Suite 1500 Atlanta, Georgia 30326 Attn: G. Bryan Blasingame If intended for City, to: Attn: City Manager City of Coppell, Texas P. O. Box 478 Coppell, Texas 75019 IDI//Tax Abatement Agreement –Page 7 66448 With a copy to: Peter G. Smith Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Lincoln Plaza 500 N. Akard Dallas, Texas 75201 8.2 Authorization. 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. 8.3 Severability. 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. 8.4 Governing Law. 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. The parties agree to submit to the personal and subject matter jurisdiction of said court. 8.5 Counterparts. 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. 8.6 Entire Agreement. 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. 8.7 Recordation. A certified copy of this Agreement shall be recorded by the City, at no cost to Owner, in the Deed Records of Dallas County, Texas. 8.8 Recitals. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. 8.9 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 8.10 Assignment. 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 prior written consent of the City Manager. IDI//Tax Abatement Agreement –Page 8 66448 EXECUTED in duplicate originals the ____ day of _______________, 2006. City of Coppell, Texas By: ______________________________________ Douglas N. Stover, Mayor Attest: By: _______________________________________ Libby Ball, City Secretary Agreed as to Form: By:_______________________________ City Attorney EXECUTED in duplicate originals the ____ day of _______________, 2006. Industrial Developments International Texas, L.P. a Georgia Limited Partnership By:_______________________________________ Name: ____________________________________ Title:______________________________________ IDI//Tax Abatement Agreement –Page 9 66448 City’s Acknowledgment State of Texas § § County of Dallas § This instrument was acknowledged Before Me on the ____ day of _______________, 2006, By Douglas N. Stover, 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 Texas § § County of _______ § Before me, the undersigned, a notary public in and for said county and state, on this day personally appeared ______________, __________________ of Industrial Developments International Texas, L.P., a Georgia Limited Partnership, on behalf of said partnership. Notary Public, State of Texas My Commission Expires: IDI//Tax Abatement Agreement –Page 10 66448 Exhibit “A” Legal Description of Land OWNER'S CERTIFICATE WHEREAS INDUSTRIAL DEVELOPMENTS INTERNATIONAL (TEXAS), L.P., a Georgia Limited Partnership is the owner of a 27.072 acre tract of land located in the City of Coppell, Dallas County, Texas, situated in the McKinney & Williams Survey, Abstract No. 1054 and the J.G. Carlock Survey, Abstract No. 312, and being Tract 1 of those tracts conveyed to Industrial Developments International (Texas), L.P. by deed recorded in Volume 2004028, Page 146 of the Deed Records of Dallas County, Texas (DRDCT) and being more particularly described as follows: BEGINNING at a 1/2" iron pin found, said iron pin being the northeast corner of a tract of land conveyed to Shams Real Estate Partners (LTD) by deed recorded in Volume 2000240, Page 2919 DRDCT, said iron pin also being on the southerly line of a Dallas Area Rapid Transit (DART) right-of-way (formerly St. Louis and Southwestern R.R. right-of-way); THENCE N 75ø57'00" E along said southerly right-of-way line of DART, a distance of 559.73 feet to a capped 1/2" iron pin set from which a capped (NDM) 1/2" iron pin found bears N 80ø37'07" W, 1.11 feet, said capped iron pin set also being the northwest corner of a remainder tract conveyed to Dallas Power and Light Company by deed recorded in Volume 4414, Page 83 DRDCT, said capped iron pin set also being the Point of Curvature of a circular curve to the right having a radius of 604.36 feet, a central angle of 40ø46'57" and being subtended by a chord which bears S 83ø39'31" E , 421.15 feet; THENCE along said curve to the right and westerly line of said Dallas Power and Light Company tract, a distance of 430.18 feet to a capped 1/2" iron pin set from which a Capped (NDM) 1/2" iron pin found bears N 66ø30'55" W, 0.52 feet and from which a bent 1/2" iron pin found bears N 83ø25'26" W, 0.22 feet; THENCE S 63ø16'03" E tangent to said curve and along said westerly line of said Dallas Power and Light Company tract, a distance of 297.95 feet to a capped 1/2" iron pin set, said capped iron pin set also being on the northerly right-of-way line of Beltline Road (120' ROW), said capped iron pin set also being the Point of Curvature of a non-tangent circular curve to the left having a radius of 1969.68 feet, a central angle of 13ø19'23" and being subtended by a chord which bears S 37ø56'50" W, 456.98 feet; THENCE southwesterly along said curve to the left and said northerly right-of-way line of Beltline Road, a distance of 458.01 feet to a capped 1/2" iron pin set from which a 5/8" iron pin found bears N 69ø10'20" E, 0.36 feet; THENCE S 31ø17'08" W tangent to said curve and along said northerly right-of-way line of Beltline Road, a distance of 581.65 feet to a capped 1/2" iron pin set, said capped iron pin set also being the Point of Curvature of a circular curve to the right having a radius of 1372.40 feet, a central angle of 37ø32'01" and being subtended by a chord which bears S 50ø03'09" W, 883.05 feet; IDI//Tax Abatement Agreement –Page 11 66448 THENCE along said curve to the right and said northerly right-of-way line of Beltline Road, a distance of 899.04 feet to a capped 1/2" iron pin set, said capped iron pin set also being the southeast corner of said Shams Real Estate Partners (LTD) tract; THENCE N 01ø15'45" E along the east line of said Shams Real Estate Partners (LTD), a distance of 1469.45 feet to the Point of Beginning and containing 1,179,247 square feet or 27.072 acres of land, more or less. WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ City Manager's Office December 12, 2006 25 ✔ CONTRACT/BID or PROPOSAL Consider approval of an Economic Development Agreement by and between the City of Coppell and Kimberly-Clark Global Sales, Inc. , and authorizing the Mayor to sign. The Coppell Economic Development Committee unanimously approved the request for an Economic Development Agreement made by Kimberly-Clark Global Sales, Inc. at their September 6, 2006 meeting. Staff recommends City Council approve the Economic Development Agreement for Kimberly-Clark Global Sales, Inc. and authorize the Mayor to sign. !Kimberly-Clark Eco Dev Agr - 1 AR Coppell//Kimberly-Clark/Economic Development Agreement - 1 71423 STATE OF TEXAS § § Economic Development Incentive Agreement § COUNTY OF DALLAS § This Economic Development Incentive Agreement (“Agreement”) is made by and among the City of Coppell, Texas (“City”), and Kimberly-Clark Global Sales, Inc. (the “Company”), acting by and through their respective authorized officers and representatives. WITNESSETH: WHEREAS, the Company currently leases approximately 414,000 square feet of office space in the building located at 944 W. Sandy Lake Coppell, Texas (the “Improvements”) and may expand and lease the remaining square feet of office space in the building and intends to locate certain Tangible Personal Property (hereinafter defined) at the Improvements; and WHEREAS, the Company has advised the City that a contributing factor that would induce the Company to locate Tangible Personal Property at the Improvements and possibly expand its operations in the City would be an agreement by the City to provide an economic development grant to the Company; and WHEREAS, the City has adopted programs for promoting economic development; and WHEREAS, the City is authorized by Article 52-a Texas Constitution and 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 inhabitants and will promote local economic development and stimulate business and commercial activity in the City. NOW THEREFORE, in consideration of the foregoing, and other valuable consideration the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Article I Definitions For purposes of this Agreement, each of the following terms shall have the meaning set forth herein unless the context clearly indicates otherwise: “Base Year Tax” shall mean the ad valorem taxes assessed against the Property for tax year 2006. “Effective Date” shall mean the last date of execution hereof. Coppell//Kimberly-Clark/Economic Development Agreement - 2 71423 “Event of Bankruptcy or Insolvency” shall mean the dissolution or termination of the Company’s existence as a going business, insolvency, appointment of receiver for any significant part of the Company’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 the Company and such proceeding is not dismissed within ninety (90) days after the filing thereof. “Expiration Date” shall mean February 1 of the calendar year following the 5th anniversary date of the First Year of Abatement.. “Force Majeure” means any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, terrorism, riot, civil commotion, insurrection, criminal acts by unrelated third parties, government or de facto governmental action (unless caused by acts or omissions of the party) adverse weather, fires, explosions or floods, strikes, slowdowns or work stoppages. “Grants” shall mean annual economic development grants to be provided by the City in an amount equal to twenty-five percent (25%) of the difference in the Base Year Tax and the ad valorem tax assessed the Property for each tax year thereafter for a period of five (5) consecutive tax years beginning with tax year 2006, to be paid as set forth herein. “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 authority on the Company or any property or any business owned by Company within the Taxing Units. “Improvements” shall mean at least 414,000 square feet of space in the building located 944 W. Sandy Lake, Coppell, Texas. “Premises” shall mean the building located at 944 W. Sandy Lake, Coppell, Texas. “Property” shall mean inventory owned or leased by the Company but excluding Freeport goods located at the Improvements. “Taxable Value” shall have the same meaning assigned by the Texas Tax Code, Section 1.04. Article II Term The term of this Agreement shall begin on the last date of execution hereof (“Effective Date”) and continue until the Expiration Date, unless sooner terminated as provided herein. Coppell//Kimberly-Clark/Economic Development Agreement - 3 71423 Article III Economic Development Grant 3.1 Grants. Subject to the Company’s continued satisfaction of all the terms and conditions of this Agreement, provided the Taxable Value of the Property is at least $18 Million Dollars as of January 1, 2006 and as of January 1 of each calendar year during the term of this Agreement, and the Company’s obligation to repay the Grants pursuant to Section 5.2 hereof, the City agrees to provide the Company with the Grants to be paid on March 1 of each calendar year beginning March 1, 2007 provided the City has timely received the ad valorem taxes assessed against the Property in full for the respective tax year. For illustration purposes only, assume that the ad valorem taxes assessed against the Property for tax year 2006 is $50,000.00 and the Base Year Tax (2006 ad valorem taxes against the Property) is $100,000.00, then the amount of the annual grant for the Property would be, $50,000.00 ($100,000.00 - $50,000.00), and would be paid on March 1, 2007. 3.2 Grant Limitations. Under no circumstances shall City obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. The City shall have an obligation to pay the Grant only to the extent the Property Tax Receipts are collected from Company. Further, 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. 3.3 Current Revenue. The Grants made hereunder shall be paid solely from lawfully available funds that have been appropriated by the City. Consequently, notwithstanding any other provision of this Agreement, the City shall have no obligation or liability to pay any Grants except as allowed by law. The City shall not be required to pay any Grants if prohibited under federal or state legislation or a decision of a court of competent jurisdiction. 3.4 Tax Protest. In the event the Company timely and properly protests or contests (including any motion to correct the appraisal roll) the Taxable Value and/or the taxation of the Property, or portion thereof, with the central appraisal district (or its successor) the obligation of the City to provide the annual Grant(s) with respect to the Property for 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 within thirty (30) business days after any such Company protest or contest. In the event the Company files any such protest and/or contest that results in a final determination that changes the Taxable Value of the Property or portion thereof, the Company’s tax liability for the Property after a Grant has been paid for the Property for such tax year, the Grant for the Property for such tax year shall be adjusted (increased or decreased as the case may be) accordingly on the date of payment of the next Grant payment date for the property or on the Expiration Date if there are no further Grants to be paid hereunder. 3.5 Refunds. In the event the City determines in its sole discretion that the City incorrectly paid to a Company an annual Grant, the Company shall, within thirty (30) days after receipt of notification thereof from the City specifying the amount by which such Grant(s) exceeded the correct amount to which the Company was entitled, repay such amount to the City. As a Coppell//Kimberly-Clark/Economic Development Agreement - 4 71423 condition precedent to payment of such refund, the City shall provide the Company with of a copy of such determination. Article IV Conditions to the Economic Development Grant The City’s obligation to pay the Grants shall be conditioned upon the Company’s continued compliance with and satisfaction of each of the conditions set forth below: 4.1 From and after the Effective Date and continuing thereafter until the Expiration Date, or earlier termination, to the Company shall continuously lease and occupy the Improvements. 4.2 The Company shall not have an uncured breach or default of this Agreement. Article V Termination 5.1 This Agreement terminates upon any one or more of the following: (a) by mutual written agreement of the parties; (b) on the Expiration Date; (c) by either party, if the other party defaults or breaches any of the terms or conditions of this Agreement and such default or breach is not cured within thirty (30) days after written notice thereof; (d) by City, if any Impositions owed to the City or the State of Texas by Company shall have become delinquent (provided, however, Company retains the right to timely and properly protest and contest any such taxes or Impositions); (e) by City, if Company suffers an Event of Bankruptcy or Insolvency; or (f) by either party if any subsequent Federal or State legislation or any decision of a court of competent jurisdiction declares or renders this Agreement invalid, illegal or unenforceable; 5.2 In the event the Agreement is terminated pursuant to Section 5.1(c), (d),(e) or (f), by the City the Company shall immediately refund to the City an amount equal to the sum of all annual Grants paid by the City to the Company immediately proceeding the date of such termination, plus, interest at the rate periodically announced by the Wall Street Journal as the prime or base commercial lending rate, or if the Wall Street Journal shall ever cease to exist or cease to announce a prime or base lending rate, then at the annual rate of interest from time to time announced by Citibank, N.A. (or by any other New York money center bank selected by the applicable Taxing Unit) as its prime or base commercial lending rate, from the date of termination until paid. Coppell//Kimberly-Clark/Economic Development Agreement - 5 71423 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. 6.2 Limitation on Liability. It is understood and agreed between the parties that the Company and City, 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. 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 such other address as such party may subsequently designate in writing) or on the day actually received if sent by courier or otherwise hand delivered. If intended for City, to: City of Coppell Attn: City Manager 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 Kimberly-Clark Global Sales, Inc./Economic Development Incentive Agreement – Page 6 71423 If intended for the Company: Kimberly-Clark Global Sales, Inc. 2100 Winchester Road Neenah, WI 54956 Attn: Jason Ferry 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, without giving effect to any conflicts of law rule or principle that might result in the application of the laws of another jurisdiction; and venue for any action concerning this Agreement shall be in the State District Court of Dallas County, Texas. The parties agree to submit to the personal and subject matter jurisdiction of said court. 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 Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 6.11 Successors and Assigns. This Agreement may not be assigned without the prior written consent of the City Manager. 6.12 Recitals. The recitals to this Agreement are incorporated herein. 6.13 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. 6.14 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. Kimberly-Clark Global Sales, Inc./Economic Development Incentive Agreement – Page 7 71423 EXECUTED on this _______ day of _____________________, 2006. CITY OF COPPELL, TEXAS By: Douglas N. Stover, Mayor Attest: By: Libby Ball, City Secretary Approved as to Form: By: Peter G. Smith, City Attorney EXECUTED on this _______ day of ______________________, 2006. KIMBERLY-CLARK GLOBAL SALES, INC. By: ______________________________ Name: ____________________________ Title: _____________________________ WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ Planning December 12, 2006 26 ✔ PUBLIC HEARING Consider approval of Case No. ZC-620 The Duke Lesley Addition, zoning change request from A (Agriculture) to LI (Light Industrial) on Block A, containing 111.6 acres of property and HC (Highway Commercial) on Blocks B and C, containing 72.9 acres of property to allow the development of mixed uses, including retail, office, hotel and light industrial (office/warehouse) on a total of 184.5 acres of property located at the northwest corner of IH-635 and Beltline Road at the request of Duke Realty LP, being represented by Jack Evans, Pacheco Koch Consulting Engineers. The following P&Z conditions remain outstanding: 1. Show zoning classification lines going to middle of street right-of-way; indicate zoning on Lot 1 & 2, Block C. 2. Design all buildings/screening, and provide landscaping in conformance with the Zoning Ordinance. Recommendation of the P&Z Commission at the November 16th meeting: APPROVAL with 6-0 vote, subject to the conditions listed above. Staff recommends approval. @1 ZC-620 Duke Leslie Add., 1-AR ITEM # 4 Page 1 of 4 CITY OF COPPELL PLANNING DEPARTMENT STAFF REPORT Case No.: ZC-620 The Duke Lesley Addition P&Z HEARING DATE: November 16, 2006 C.C. HEARING DATE: December 12, 2006 STAFF REP.: Gary L. Sieb, Director of Planning LOCATION: Northwest corner of IH-635 and Beltline Road. SIZE OF AREA: 184.5 acres CURRENT ZONING: (Agriculture) REQUEST: Zoning change request from A (Agriculture) to LI (Light Industrial) on Block A, containing 111.6 acres of property and HC (Highway Commercial) on Blocks B and C, containing 72.9 acres of property to allow the development of mixed uses, including retail, office, hotel and light industrial (office/warehouse). APPLICANT: Duke Realty Limited Partnership Alex Bennett 5495 Beltline Road Suite 360 Dallas, TX. 75254 (972) 361-6700 Fax: (972) 361-6800 HISTORY: There has been no development history on the subject tract, although a thoroughfare plan amendment was approved by Council on October 10th that is reflected by the street pattern shown on these plans. ITEM # 4 Page 2 of 4 TRANSPORTATION: Beltline Road is a P6D major thoroughfare built to standard in a 120-foot right of way; LBJ Freeway is an interstate highway built to federal highway guidelines. SURROUNDING LAND USE & ZONING: North –middle school and warehousing, “LI,” Light Industrial South –developing commercial; City of Irving East – vacant; “A,” Agriculture West – office, developing commercial; “LI,” Light Industrial, City of Irving COMPREHENSIVE PLAN:The Coppell Comprehensive Plan shows the property as suitable for freeway office and commercial uses. DISCUSSION: This is a request for straight zoning (HC and LI) which might be better served through the application of a Planned Development because of the sheer size of this request (185 acres). The advantage to the community with Planned Development zoning lies in the amount of detail that is provided before any zoning is granted. The PD assures that we know exactly what is being proposed before zoning guidelines are put in place. On the other hand, the advantage to the developer in requesting HC and LI zoning is the fact that no detail is required before these base zoning categories are considered. Although a PD seems appropriate here, especially with regard to the size of the land area, we do require review of development proposal and site plans before any development can occur. Because of that requirement, staff is not uncomfortable with reviewing this application as submitted, although our preference would have been a PD request. The applicant has been known as a developer of quality warehouse buildings in Coppell for a number of years. As early as the year 2000, this landowner began to develop the area along Freeport Parkway and today that project is almost completely built out. It is no surprise then, that this application is calling for 102 acres of potential warehouse development. Because it is at the northern end of this parcel staff has little objection to the proposed use. One point of caution, the site is relatively flat and any development on the proposed LI parcel will have full view from LBJ Freeway and Dividend Drive. We suggest any construction of warehouse space be planned with fronts facing the street, and advise the applicant that truck bays adjacent to streets without substantial screening is a violation of our zoning ordinance. In addition, we urge the applicant to design any portion of a warehouse that can be seen from LBJ Freeway with facades of high quality, similar to the building frontages found in their other Coppell projects. When this property is ready for development, we would urge the designer to carefully address these critical facade concerns when any proposed development is submitted for City review. ITEM # 4 Page 3 of 4 Regarding the request for HC zoning on the remaining 76 acres, staff repeats similar concerns. Although we understand the remainder of the parcel (the HC portion) will be sold to other developers, this property is the entrance to the City. What is developed here sets the tone for the entire community—it is the gateway to Coppell. Although past development in the City has been of very high quality, we have no assurance that pattern will continue until we see detailed plans for the subject property. Because site plan review is required before any development can occur (just as with the warehouse development discussed earlier), staff is cautiously optimistic that a quality product will result when plans are submitted for City approval. One final point with regard to the appearance issue--tilt wall construction is allowed on the LI zoned area and the majority of existing warehouse construction is of that material. Any construction in the HC zone will, however, require 80% masonry construction, so typical tilt wall will not be allowed. That requirement gives us further assurance that a quality product will result on the HC zoned parcels. The zoning exhibit also delineates two street alignments--the extension of Dividend Drive and the location of a new street named Point West Boulevard. Dividend is a divided street shown to be in a 90-foot right-of- way. It conforms to City standards, and extends from the existing Dividend over to Beltline Road on the east. Point West is shown as a two- lane, undivided semi-collector street with 50 feet of right-of-way. As a general rule a 50-foot right-of-way is too narrow for our collector streets, especially in areas of high traffic generation such as retail/office/warehouse districts. However, if the street were paved to a 37-foot width with a 5-foot sidewalk and utility easement on each side beyond the 50-foot right of way (or a total dimension of 60 feet), we could support the street proposal. One other general comment relative to the street alignment of Dividend. As shown on the zoning exhibit, it is immediately adjacent to the LBJ Freeway r.o.w. and leaves an impression of massive concrete roads. We would urge the applicant to provide extensive landscaping to soften the harsh look of two roadways side by side. All in all, staff can support this zoning request with the understanding that more detailed plans will be required before we can endorse any individual site-specific development proposal. Our major points of concern involve the facades of the warehouse buildings, the presence of truck bays adjacent to streets without adequate screening (a violation of our zoning code), the appearance of buildings on the HC zoned tracts, and the treatment and landscaping of Dividend Drive adjacent to LBJ Freeway. RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION: Staff is recommending APPROVAL of this request, subject to the following conditions: ITEM # 4 Page 4 of 4 1. Show zoning classification lines going to middle of street right-of- way. 2. Dimension and show acreage of Lot 2, Block C. 3. Adjust and show acreage/dimensions of Lot 1, Block C. 4. Show acreage of area north of Lots 1 and 2, Block C 5. Note that corner lots have two front yards. 6. Design all buildings/screening, and provide landscaping in conformance with the Zoning Ordinance. 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) Zoning Exhibit (2 sheets) WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ Planning December 12, 2006 27 ✔ PRESENTATION Consider approval of the Duke Lesley Addition, Blocks A, B and C, Preliminary Plat, to establish Blocks A, B and C, allowing for the submission of final plats prior to the development on 184.5 acres of property located at the northwest corner of IH-635 and Beltline Road at the request of Duke Realty LP, being represented by Jack Evans, Pacheco Koch Consulting Engineers. The following P&Z conditions remain outstanding: 1. Meet all requirements of the Subdivision Regulations and all other city codes. 2. Show proposed zoning for each lot and block. 3. Change match line number on Sheet 1 from See Sheet 4 to See Sheet 3. Recommendation of the P&Z Commission at the November 16th meeting: APPROVAL with 6-0 vote, subject to the conditions listed above. Staff recommends approval. @2 Duke Leslie, A, B &C, PP, 1-AR ITEM # 5 Page 1 of 3 CITY OF COPPELL PLANNING DEPARTMENT STAFF REPORT Case: Duke Lesley Addition, Blocks A, B and C, Preliminary Plat P&Z HEARING DATE: November 16, 2006 C.C. HEARING DATE: December 12, 2006 STAFF REP.: Gary L. Sieb, Director of Planning LOCATION: Northwest corner of IH-635 and Beltline Road SIZE OF AREA: 184.5 acres CURRENT ZONING: (Agriculture) REQUEST: To preliminary plat three building sites in Blocks A, B, and C, establish rights-of-way for two streets, and create two building lots for future development. APPLICANT: Owner: Engineer: Duke Realty Limited Partnership Pacheco Koch Alex Bennett Jack Evans, P.E. 5495 Beltline Road 8350 N. Central Expy. Suite 360 Suite 1000 Dallas, TX. 75254 Dallas, TX. 75206 (972) 361-6704 (972) 235-3031 Fax: (972) 361-6800 Fax: (972) 235-9544 HISTORY: There has been no development history on the subject tract although a thoroughfare amendment was approved by Council on ITEM # 5 Page 2 of 3 October 10th that is reflected by the street pattern shown on these plans. TRANSPORTATION: Beltline Road is a P6D major thoroughfare built to standard in a 120-foot right-of-way; LBJ Freeway is an interstate highway built to federal highway guidelines. SURROUNDING LAND USE & ZONING: North –middle school and warehousing; “LI,” Light Industrial South –developing commercial; City of Irving East – vacant; “A,” Agriculture West – office, developing commercial; “LI,” Light Industrial, City of Irving COMPREHENSIVE PLAN:The Coppell Comprehensive Plan shows the property as suitable for freeway office and commercial uses. DISCUSSION: As specified in the Coppell Subdivision Regulations, the purpose of a preliminary plat is to allow the Planning Commission to review the overall platting pattern of the tract, water and sewer service, landscape opportunities and street patterns. The initial purpose of this preliminary plat was to subdivide this property into two streets so construction could begin and open the interior of this parcel for development as well as circulation purposes. Half way through the review process, the applicant requested a modification to the preliminary plat, and proposed two additional lots being carved out of the preliminary plat document. Because the request involved rather simple lot dimensions, staff had no objection to the alteration. As revised, Block A is being rezoned from Agriculture to LI for future warehouse development and contains 102 of the 184-acre property. Block B contains 25 acres and is being rezoned to Highway Commercial. Block C, the parcel being altered, contains 46 acres and is also being rezoned from Agriculture to Highway Commercial. Regarding modification, in essence, the applicant has carved out a 5-acre lot for a proposed hotel site (Lot 2, Block C), with the remainder of Block C containing 17.4 acres (labeled Lot 1, Block C) for future highway commercial uses. Approximately 11.5 acres have been platted for two streets, Dividend Drive and Point West Boulevard. When constructed, each street needs to provide eight inches of concrete paving on a six-inch lime subgrade, as commented by the Engineering Department. This land area generated substantial discussion in the zoning phase, so we will not repeat our concerns with the zoning application here. Suffice it to say that development of the property will need to conform to City standards, both with the development of individual buildings and in subdivision platting. ITEM # 5 Page 3 of 3 RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION: Staff is recommending APPROVAL of this request, subject to the following conditions: 1. Meet all requirements of the Subdivision Regulations and all other city codes. 2. Show proposed zoning for each lot and block. 3. Additional 5 foot sidewalk and utility easements need to be shown on each side of 50 foot right of way (see Engineering comments attached) ALTERNATIVES: 1) Recommend approval of the request 2) Recommend disapproval of the request ATTACHMENTS: 1) Preliminary Plat (3 sheets) 2) Departmental comments (Engineering) WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ Planning December 12, 2006 28 ✔ PRESENTATION Consider approval of the Duke Lesley Addition, Final Plat of Lesley Drive and the Extension of Dividend Drive and two building sites, Lots 1 & 2, Block C, to allow the construction of West Point Blvd. and the extension of Dividend Drive, containing approximately 11.54 acres of property, platting of Lots 1 & 2 containing 17.394 and 5.05 acres respectively, located north of IH-635 and west of Beltline Road at the request of Duke Realty LP, being represented by Jack Evans, Pacheco Koch Consulting Engineers. The following P&Z conditions remain outstanding: 1. Explanation of Dividend Drive encroachment (See Engineering comments). Recommendation of the P&Z Commission at the November 16th meeting: APPROVAL with 6-0 vote, subject to the conditions listed above. Staff recommends approval. @3 Duke Leslie, L1&2, BA, FP, 1-AR ITEM # 6 Page 1 of 3 CITY OF COPPELL PLANNING DEPARTMENT STAFF REPORT Case: Duke Lesley Addition, Final Plat of Point West Boulevard, the Extension of Dividend Drive, and two Building Sites, Lots 1 and 2, Block C P&Z HEARING DATE: November 16, 2006 C.C. HEARING DATE: December 12, 2006 STAFF REP.: Gary L. Sieb, Director of Planning LOCATION: Northwest corner of IH-635 and Beltline Road. SIZE OF AREA: 33.85 acres CURRENT ZONING: (Agriculture) REQUEST: To allow the platting of two roads and two building sites for future construction. APPLICANT: Owner: Engineer: Duke Realty Limited Partnership Pacheco Koch Alex Bennett Jack Evans, P.E. 5495 Beltline Road 8350 N. Central Expy. Suite 360 Suite 1000 Dallas, TX. 75254 Dallas, TX. 75206 (972) 361-6700 (972) 235-3031 Fax: (972) 361-6800 Fax: (972) 235-9544 HISTORY: There has been no development history on the subject tract although a thoroughfare amendment was approved by Council on October 10 that is reflected by the street pattern shown on these plans. ITEM # 6 Page 2 of 3 TRANSPORTATION: Beltline Road is a P6D, major thoroughfare built to standard in a 120-foot right-of-way; LBJ Freeway is an interstate highway built to federal highway guidelines. SURROUNDING LAND USE & ZONING: North –middle school and warehousing; “LI,” Light Industrial South –developing commercial; City of Irving East – vacant; “A,” Agriculture West – office, developing commercial; “LI,” Light Industrial, City of Irving COMPREHENSIVE PLAN: The Coppell Comprehensive Plan shows the property as suitable for freeway office and commercial uses. DISCUSSION: This is a final plat delineating the right-of-way for two streets being subdivided through the former Lesley property, and two building sites, Lots 1 and 2 of Block C. Dividend Drive is being extended from the west, across the former Lesley property and terminates at Beltline Road. This street will be a four-lane divided thoroughfare contained within a 90-foot right-of-way, including an irrigated and landscaped median. The second street being platted is Point West Boulevard and it is shown with a 50-foot right-of- way. Staff strongly feels this street should be an undivided 37-foot paved street. To encourage the developer to construct at this dimension we have agreed to allow 5-foot utility and sidewalk easements on each side of the 50-foot dedication for utility and sidewalk construction. The building sites being platted range in size from Lot 1, Block C, a 17.4 acre lot at the corner of Beltline Road and LBJ Freeway, to 5 acres for Lot 2, Block C the anticipated hotel site located along the proposed Point West Boulevard. Lot 1 has not yet been planned for development, but quality users are envisioned considering the location and its identity as the entryway into Coppell. We do not anticipate gas stations, convenience stores and other similar users at this high profile intersection. RECOMMENDATION TO THE PLANNING AND ZONING COMMISSION: Staff is recommending APPROVAL of this request, subject to the following conditions: 1. Five-foot sidewalk and utility easements are needed along Point West Boulevard. 2. Increase the line weight that depicts Lot 2, Block C. 3. Explanation of Dividend Drive encroachment ( See Engineering comments). ITEM # 6 Page 3 of 3 ALTERNATIVES: 1) Recommend approval of the request 2) Recommend disapproval of the request ATTACHMENTS: 1) Final plat document (2 sheets) 2) Departmental comments (Engineering) WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: ȱ ȱ Planning December 12, 2006 29 ✔ ORDINANCE Consider approval of an Ordinance for Case No. PD-216-H, Robertson Pools, zoning change request from H and SF-12 (Historic and Single Family-12) to PD-216-H (Planned Development-216-Historic), to approve a detail Site Plan, to allow a 1,740-square-foot expansion to an existing 3,120-square-foot building, construction of a 4,970-square-foot building, outside storage and additional parking on approximately 2.65 acres of property located at 569 Coppell Road, north of Bethel Road, and authorizing the Mayor to sign. On October 19, 2006, the Planning Commission recommended approval of this zoning request. On November 14, 2006, Council approved this zoning change (6-0). Councilman Faught abstained. Staff recommends approval. @PD-216-H, Robertson (ORD), 1-AR 1 11743 AN ORDINANCE OF THE CITY OF COPPELL, TEXAS ORDINANCE NO. ________ AN ORDINANCE OF THE CITY OF COPPELL, TEXAS, AMENDING THE COMPREHENSIVE ZONING ORDINANCE AND MAP OF THE CITY OF COPPELL, TEXAS, AS HERETOFORE AMENDED, BY GRANTING A CHANGE IN ZONING FROM H AND SF-12 (HISTORIC AND SINGLE FAMILY-12) TO PD-216-H (PLANNED DEVELOPMENT- 216-HISTORIC), TO APPROVE A DETAIL SITE PLAN, TO ALLOW A 1,740-SQUARE-FOOT EXPANSION TO AN EXISTING 3,120-SQUARE- FOOT BUILDING, CONSTRUCTION OF A 4,970-SQUARE-FOOT BUILDING, OUTSIDE STORAGE AND ADDITIONAL PARKING ON APPROXIMATELY 2.65 ACRES OF PROPERTY LOCATED AT 569 COPPELL ROAD, NORTH OF BETHEL ROAD AND BEING MORE PARTICULARLY DESCRIBED IN EXHIBIT “A”, ATTACHED HERETO; PROVIDING FOR DEVELOPMENT CONDITIONS; PROVIDING FOR THE APPROVAL OF A SITE PLAN, LANDSCAPE PLAN/TREE SURVEY, AND ELEVATIONS, ATTACHED TO AS EXHIBITS “B”, “C”, AND “D”, RESPECTIVELY; 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 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-216-H should be approved, and in the exercise of legislative discretion have concluded that 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 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 H and SF-12 (Historic and Single 2 11743 Family-12) to PD-216-H (Planned Development-216-Historic), to approve a detail Site Plan, to allow a 1,740-square-foot expansion to an existing 3,120-square-foot building, construction of a 4,970-square-foot building, outside storage and additional parking on approximately 2.65 acres of property located at 569 Coppell Road, north of Bethel Road, and being more particularly in Exhibit “A”, attached hereto and made a part hereof for all purposes. SECTION 2.That the property shall be developed and used only in accordance the H (Historic) District regulations except as herein amended: A) Front yard parking shall be permitted. B) Non-vehicular and perimeter landscaping shortages are permitted as follows: a) Non-vehicular – 14,583 square feet required; 7,773 square feet provided. b) East Perimeter - Two planter boxes and existing streetscaping provided in lieu of 15' landscape buffer. c) South Perimeter – Required trees are provided elsewhere on site. C) All existing and proposed uses (Retail, Office, Warehouse, and Outside Storage) shall be permitted by right. D) All existing and proposed lighting facilities shall be in accordance with the H District regulations SECTION 3.That the Site Plan, Landscape Plan/Tree Survey, and Elevations attached to as Exhibits “B”, “C” and “D”, respectively, and made a part hereof for all purposes, are hereby, approved. 3 11743 SECTION 4. That the above property shall be used and developed only in the manner and for the purpose provided for by the Comprehensive Zoning Ordinance and other applicable ordinances of the City of Coppell, as heretofore amended, and as amended herein. SECTION 5. That all provisions of the Ordinances of the City of Coppell, Texas, in conflict except as amended herein 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 6. 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 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 7. 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 8.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 9.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. 4 11743 DULY PASSED by the City Council of the City of Coppell, Texas, this the _______ day of ___________________, 2006. APPROVED: _____________________________________ DOUGLAS N. STOVER, MAYOR ATTEST: _____________________________________ LIBBY BALL, CITY SECRETARY APPROVED AS TO FORM: _________________________________ ROBERT E. HAGER, CITY ATTORNEY (REH/cdb 11/29/2006) WORK SESSION CONSENT REGULAR DEPT: DATE: ITEM #: AGENDA REQUEST FORM ITEM TYPE: ITEM CAPTION: GOAL(S): EXECUTIVE SUMMARY: FINANCIAL COMMENTS: RECOMMENDED ACTION: ACTION TAKEN BY COUNCIL: City Secretary December 12, 2006 30 ✔ PROCEDURAL Consider approval of accepting the resignation of Wendy Dunn from the Library Board and appointing a member to fill the unexpired term. Wendy Dunn has submitted a resignation letter stating job related traveling has necessitated her resigning from the Board. Her term expires October, 2008. Staff recommends approval. Kathy: Unfortunately, I think I really do need to resign. I apologize for the trouble, obviously if I'd known I'd have to be doing so much traveling, I couldn't have re-applied for the board (or taken this job but that's another matter entirely.) I enjoyed my tenure with the board tremendously and apologize profusely for not being able to continue. I appreciate your understanding and patience. ---------------------------------------------------- Wendy E. Dunn DATE: December 12, 2006 ITEM #: 31  AGENDA REQUEST FORM NECESSARY ACTION RESULTING FROM WORK SESSION Agenda Request Form - Revised 02/04 Document Name: %necessaryactionwork DATE: December 26, 2006 ITEM #: 32   AGENDA REQUEST FORM CITY MANAGER'S REPORT A. Capital Facilities Update. B. Old Town Update. Agenda Request Form - Revised 09/02 Document Name: %necessaryactionwork DATE: December 12, 2006 ITEM #: 33   AGENDA REQUEST FORM MAYOR AND COUNCIL REPORTS A. Report by Mayor Stover regarding the Metroplex Mayors’ Meeting. Agenda Request Form - Revised 09/02 Document Name: %mayorreport DATE: December 12, 2006 ITEM #: 34   AGENDA REQUEST FORM NECESSARY ACTION RESULTING FROM EXECUTIVE SESSION Agenda Request Form - Revised 09/02 Document Name: %necessaryactionexec CERTIFICATE OF AGENDA ITEM SUBMISSION Council Meeting Date: December 12, 2006 Department Submissions: Item No. 8/B was placed on the Agenda for the above-referenced City Council meeting by the Police Department. I have reviewed the Agenda Request (and any backup if applicable) and hereby submit this item to the City Council for consideration. ____________________ Police Department Item Nos. 8/C, 8/D, 8/E, 8/F 26, 27, 28 and 29 were placed on the Agenda for the above-referenced City Council meeting by the Planning Department. I have reviewed the Agenda Requests (and any backup if applicable) and hereby submit these items to the City Council for consideration. ____________________ Planning Department Financial Review: I certify that I have reviewed all the items submitted for consideration on the Agenda for the above-referenced City Council Meeting and have inserted any financial comments where appropriate. ____________________ Finance Department City Manager Review: I certify that I have reviewed the complete Agenda and Packet for the above-referenced City Council Meeting and hereby submit the same to the City Council for consideration. ____________________ City Manager (or Deputy City Manager)