On the agenda: Oak Point meeting — Data Center (Jun 16)

Joint Meeting of the
Oak Point Economic Development Corporation and
Municipal Development District
Oak Point City Hall
100 Naylor Road
Oak Point, Texas 75068
Tuesday, June 16, 2026, 6:00 P.M.

1. Call to order, roll call, and announce a quorum is present. (President)
In the event a quorum is not present, the Corporation may meet as a committee, but no action will be taken.
2. Pledge of Allegiance and Pledge to the Texas Flag (President)
3. Public Input (President)
This agenda item provides an opportunity for citizens to address the Economic Development Corporation
on any matter that is not posted on the agenda, as well as specific agenda items. The EDC will hear
comments on specific agenda items that are listed as public hearings prior to the EDC addressing those
items. The EDC is not permitted to take action or engage in any discussion on presentations or inquiries
concerning an item not listed on the agenda. However, in accordance with Section 551.042 of the
Government Code, a representative of City staff or the EDC may respond with either a statement of specific
factual information relating to the inquiry or a recitation of existing policy in response to the inquiry.
4. Consider and act upon the minutes from the May 12, 2026, Regular EDC meeting. (President)
5. Presentation, discussion, and action on the Oak Point Economic Development Policy (Incentive Policy).
(Petty & Associates)
6. Consider and act upon the financial report of the Oak Point Economic Development Corporation. (City
Manager)
7. Discuss the Oak Point 50th Anniversary Celebration. (Sellinger/Henry)
8. Discuss future agenda items for the next regular meeting of the Economic Development Corporation.
(President)
9. Adjourn. (President)
The Economic Development Corporation of the City of Oak Point, Texas, reserves the right to meet in a Closed
Session on any item listed on this Agenda should the need arise, pursuant to authorization by Texas
Government Code, Sections 551.071 (consultation with attorney), 551.072 (deliberations about real property),
551.073 (deliberations about gifts and donations), 551.074 (personnel matters), 551.076 (deliberations about
security devices), 551.087 (economic development), 418.183 (homeland security).
This facility is wheelchair accessible and accessible parking spaces are available. Requests for accommodations
or interpretive services must be made 48 hours prior to the meeting. Please contact City Hall at (972) 2942312 or FAX (972) 294-1619 for further information.
NOTE: It is possible a quorum of Oak Point Council Members may be present, but the City Council will not
act on any issues.

CERTIFICATION:
I do hereby certify that this Notice of public meeting was posted on the outside bulletin board at the Oak Point City Hall, a
place convenient and readily accessible to the general public at all times, and said Notice was posted by_____________p.m.
9th
June
on the __________________day
of___________________________2026.
_______________________________
Jennifer Henry, Court Administrator

This notice was removed at __________ a.m./p.m. on the _______ day_______________________ 2026.
_____________________________

Jennifer Henry, Court Administrator

Meeting Minutes
Regular Meeting of the
Oak Point Economic Development Corporation
Oak Point City Hall
100 Naylor Road
Oak Point, Texas 75068
Tuesday, May 12, 2026 -- 6:00 P.M
1. Call to order, roll call, and announce a quorum is present.
President Wootton called the meeting to order at 6:04 p.m. with the following roll call:
David Wootton
Chris Risher
Betsy Sellinger
Debbie Peterman
Greg Weiler
James Hankins
Mohsen Alipour

President
Vice President
Director
Director
Director
Director
Director

Present
Present
Absent
Present
Present
Present
Present

City staff present:
Noah Simon
Jennifer Henry
McKinzie McBride
Brian Salvesen

City Manager
Court Administrator
Performance & Operations Strategist
Director of Community Development

Council Members Present:
And with a quorum present the following items were addressed:

2. Pledge of Allegiance and Pledge to the Texas Flag.
Director Weiler led the Pledge of Allegiance and the Pledge to the Texas Flag.
3. Public Input
No one came forward to speak
4. Consider and act upon the minutes from the April 14, 2026, Regular EDC Meeting.
Vice President Risher made a motion to approve the minutes from the April 14, 2026, Regular EDC meeting;
motion seconded by Director Peterman.
Motion Passed 6-0
5. Review, discuss, and accept the financial report of the Oak Point Economic Development Corporation.
Director Weiler made a motion to accept the April 2026 financial report; motion seconded by Vice President
Risher.
Motion Passed 6-0
6. Discuss the Oak Point 50th Anniversary Celebration, VIP invites, EDC role for the evening.
Court Administrator Henry gave an update on the 50th anniversary to include confirmation of Mike
Doocy as MC for the evening. Henry mentioned that the Oak Point EDC will be the host of the VIP area.
Henry had a sample invite for Directors with a small map showing a VIP entrance and VIP parking. Also
mentioned was the VIP invite list that included all Boards & Commissions, Mike Doocy and Family top
tier sponsors, local developers, and local County representatives. LaRustica will provide light
refreshments and drinks for the VIP area. The Committee is in the final stages of designing swag for the
VIP attendees such as a Yeti style tumbler with the 50th anniversary logo as well as a commemorative

coin. Henry asked for feedback and questions. Several Directors will email Henry within the next few
days with added ideas for the event.
7. Review and discuss progress on the EDC Business Plan Goals.
City Manager Simon gave an update on the EDC Business Plan Goal. Directors received a printout of the
Business Plan Fiscal Years 2026-2028. Simon went over the 4 goals listed in the Business Plan: Unified Vision
for Commercial Growth, Proactive Relationship Cultivation, Business Recruitment and Retention Excellence,
and Organizational Excellence. Simon explained that staff is engaged in conversations with developers that
include calls and emails. Additionally, Simon mentioned continuing Broker, Property Owner, and Strategic
Partner conversations are on going. Lastly Simon spoke on the Metrics/KPIs within the goals that had been
completed or are still on-going. Directors ask for a different measurement on goals that have not been started,
are in progress, or completed; Simon agreed and will have staff revise. Simon will work with the EDC on a
Vision and Mission Statement. City Manager Simon will send out a draft incentive policy before the next
meeting for EDC Directors to preview.
8. Discuss future agenda items.
• Update on the 50th Anniversary/EDC Role
• Incentive Policy
President Wootton Adjourned the meeting at 6:49 p.m.

________________________________
David Wootton, President

ATTEST:
________________________________
Jennifer Henry

City of Oak Point, Texas

DATE:

June 16, 2026

TO:

Oak Point Economic Development Corporation

FROM:

Noah A. Simon, City Manager

SUBJECT:

Draft Oak Point Economic Development Policy (incentive policy)

Background:
Consultants and staff have been working on drafting an Economic Development Policy (incentive
policy) for the EDC’ review and consideration. The draft policy is included for your review. At the
meeting, Trent Petty, will provide a presentation and walk through the draft policy.

Recommendation:
Review the policy, listen to the presentation, and engage with the consultant. If the EDC is
comfortable with the policy and presentation, the EDC can recommend adoption of the policy. That
recommendation will be carried forward to the City Council.
Suggested motion: I move to adopt the Economic Development Policy and forward the
recommendation to City Council.

Attachments:
Economic Development Policy

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City of Oak Point, Texas — Economic Development Policy — DRAFT

Petty & Associates, Inc. • Economic Development Advisory

ECONOMIC DEVELOPMENT POLICY
CITY OF OAK POINT, TEXAS
Adopted by the Oak Point City Council

[Resolution / Ordinance No. ____]
Effective Date: ____________, 20__

"Building Tomorrow’s Oak Point, Today"

DRAFT 5/14/26 — for review by City Manager, City Council, and EDC Board

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City of Oak Point, Texas — Economic Development Policy — DRAFT

TABLE OF CONTENTS

SECTION 1: GENERAL PROVISIONS ...................................................................................... 5
1.01 Purpose .......................................................................................................................... 5
1.02 Authority ......................................................................................................................... 5
1.03 Objectives....................................................................................................................... 6
1.04 Excellent Customer Service Commitment ....................................................................... 6
1.05 Discretionary Nature of Incentives .................................................................................. 7
1.06 Definitions....................................................................................................................... 7
SECTION 2: TYPES OF INCENTIVES AVAILABLE .................................................................. 9
2.01 Tax Abatement Programs ............................................................................................... 9
2.02 Tax Increment Reinvestment Zone (TIRZ) Programs...................................................... 9
2.03 Chapter 380 Economic Development Programs ............................................................. 9
2.04 EDC-Supported Programs .............................................................................................. 9
2.05 Other Incentives ............................................................................................................10
SECTION 3: REINVESTMENT ZONE DESIGNATION .............................................................10
3.01 Designation Requirements ............................................................................................10
3.02 Geographic Scope .........................................................................................................10
3.03 Public Hearing and Notice .............................................................................................11
3.04 Approval Process ..........................................................................................................11
3.05 Duration and Renewal ...................................................................................................11
3.06 Multiple Zone Designations............................................................................................12
3.07 Coordination with Enterprise Zones and Other Programs ..............................................12
3.08 Uniform Terms Requirement..........................................................................................12
SECTION 4: TAX ABATEMENT PROGRAM ............................................................................12
4.01 Eligible Properties and Facilities ....................................................................................12
4.02 Eligible Applicants .........................................................................................................13
4.03 Value of Abatement .......................................................................................................13
4.04 General Project Requirements and Guidelines ..............................................................13
4.05 Target Industries and Strategic Targeting ......................................................................14
4.06 Value Decline Adjustments ............................................................................................15
4.07 Existing Business Expansion .........................................................................................15
4.08 Data Center and Other Specialized Provisions ................ Error! Bookmark not defined.
SECTION 5: TAX INCREMENT REINVESTMENT ZONE PROGRAMS ...................................16
5.01 Authority and Use of TIRZ .............................................................................................16
5.02 Required Documentation ...............................................................................................16
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City of Oak Point, Texas — Economic Development Policy — DRAFT

5.03 City Representation and Oversight ................................................................................16

5.04 Notification Requirements ..............................................................................................17
5.05 Financial Protections .....................................................................................................17
SECTION 6: CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAMS................................17
6.01 Eligibility Criteria ............................................................................................................17
6.02 Types of Assistance Available .......................................................................................18
6.03 Funding Source and Appropriation ................................................................................18
6.04 Sales Tax Revenue Sharing ..........................................................................................18
6.05 Restrictions on Voter-Approved Dedicated Sales Taxes ................................................19
6.06 Performance Requirements ...........................................................................................20
6.07 Economic Development Agreement Requirements ........................................................20
SECTION 7: APPLICATION REQUIREMENTS ........................................................................21
7.01 General Application Process..........................................................................................21
7.02 Application Fee ..............................................................................................................21
7.03 Professional Services Reimbursement Agreement ........................................................22
7.04 Coordination with Other Taxing Units ............................................................................22
7.05 Confidentiality Provisions ...............................................................................................22
SECTION 8: REVIEW AND APPROVAL PROCESS ................................................................23
8.01 Application Review Procedures .....................................................................................23
8.02 EDC Coordination and Recommendation ......................................................................23
8.03 Public Hearing Requirements ........................................................................................24
8.04 City Council Consideration.............................................................................................24
8.05 Economic Development Agreement Requirements ........................................................24
8.06 Assignment Restrictions ................................................................................................25
SECTION 9: COMPLIANCE AND MONITORING .....................................................................25
9.01 Annual Certification Requirements.................................................................................25
9.02 Compliance Reviews and Audits ...................................................................................26
9.03 Non-Compliance Remedies ...........................................................................................26
SECTION 10: COORDINATION WITH OTHER TAXING UNITS ..............................................26
10.01 Coordinated Incentive Packages .................................................................................27
10.02 County Reinvestment Zones........................................................................................27
10.03 Retained City Rights ....................................................................................................27
SECTION 11: REPORTING AND NOTIFICATIONS .................................................................27
11.01 State Reporting Requirements .....................................................................................27
11.02 Inter-Governmental Notifications..................................................................................27

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11.03 Public Notice and Transparency ..................................................................................27

SECTION 12: GENERAL PROVISIONS ...................................................................................28
12.01 Conflicts of Interest ......................................................................................................28
12.02 Superseding Effect ......................................................................................................28
12.03 Amendment .................................................................................................................28
12.04 Severability ..................................................................................................................28
12.05 No Third-Party Beneficiaries ........................................................................................28
12.06 Adoption ......................................................................................................................29

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City of Oak Point, Texas — Economic Development Policy — DRAFT

SECTION 1: GENERAL PROVISIONS
1.01 Purpose

The City of Oak Point, Texas (the “City”) hereby establishes this Economic Development Policy
(the “Policy”) to guide the consideration, negotiation, and approval of economic development
incentives offered by the City. This Policy is designed to stimulate quality commercial
development, diversify the City’s tax base, attract sales tax-generating businesses, and support
the expansion and retention of existing businesses through the granting of property tax
abatements, sales tax revenue sharing, performance-based grants, and other economic
development tools authorized by Texas law.
Consistent with the Mission of the Oak Point Economic Development Corporation — “To diversify
and grow Oak Point’s tax base by attracting sales-tax generating businesses” — this Policy
emphasizes performance-based incentives that protect public investment, align with the City’s
adopted vision for commercial development, and provide measurable, long-term benefit to Oak
Point residents and taxpayers.
The purpose of this Policy is to establish uniform procedures and guidelines for the granting of
economic development incentives while ensuring that all projects receiving City assistance
provide substantial benefit to the City and its residents.

1.02 Authority
The City of Oak Point is authorized to offer economic development incentives under the following
Texas statutes:
A. Chapter 312, Texas Tax Code (Subchapter B). Property Redevelopment and Tax Abatement
Act. This Subchapter authorizes municipalities to designate reinvestment zones and to enter
into tax abatement agreements with owners of taxable real property and tangible personal
property located within such zones.
B. Chapter 311, Texas Tax Code. Tax Increment Financing Act. This Chapter authorizes
municipalities to designate tax increment reinvestment zones (“TIRZs”) and to capture a
portion of incremental ad valorem tax revenue to fund public improvements and economic
development projects within the zone, subject to participation by other taxing units.
C. Chapter 380, Texas Local Government Code. Miscellaneous Provisions Relating to
Municipal Planning and Development. Section 380.001 authorizes the City to establish and
provide for the administration of programs to promote state or local economic development
and to stimulate business and commercial activity within the City, including the making of
loans and grants of public money and the provision of personnel and services.
D. Chapters 501–505, Texas Local Government Code. Development Corporation Act. The Oak
Point Economic Development Corporation (the “EDC”) is authorized to undertake projects and
provide assistance for projects that meet the statutory definition of a “project” under the Act,
in coordination with the City Council.

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City of Oak Point, Texas — Economic Development Policy — DRAFT

E. Chapter 377, Texas Local Government Code. Municipal Development Districts. The Oak
Point Municipal Development District (the “MDD”), created by election on May 14, 2011, is
authorized to undertake projects and to impose a 0.25% sales and use tax within the City
limits and the City’s extraterritorial jurisdiction to finance development projects beneficial to
the District, in coordination with the City Council.
F. Article III, Section 52-a, Texas Constitution. Authorizing the use of public funds and the
lending of public credit for the public purpose of economic development.
G. Other Applicable Law. All other state and federal statutes, rules, and regulations applicable
to the incentives, projects, and programs authorized hereunder, including, where applicable,
Chapter 327 of the Texas Tax Code (Municipal Sales and Use Tax for Street Maintenance)
and Comptroller Rules 3.288 and 3.334 (situs of sales tax and direct pay permits).

1.03 Objectives
The objectives of this Policy are to:
A. Diversify and Grow the Sales Tax Base by attracting and retaining sales tax-generating
businesses, including retail, restaurants, services, and other commercial uses that reduce the
export of sales tax revenue to neighboring communities.
B. Enhance the Ad Valorem Tax Base through increased real and personal property values
resulting from new investment and qualifying facility improvements.
C. Attract New Businesses and Industry to Oak Point that will provide employment
opportunities for residents and contribute to economic diversification consistent with the City’s
adopted vision for commercial development.
D. Encourage Expansion of Existing Businesses to retain and grow the City’s economic base
while preventing business relocations to other jurisdictions.
E. Encourage Quality Development in areas designated as reinvestment zones or otherwise
targeted in the City’s adopted plans, including the FM 720 corridor, and any adopted overlay
districts.
F. Promote Sustainable Economic Growth that provides long-term benefits to Oak Point
residents while maintaining fiscal responsibility and avoiding incentives that displace tax
revenue without offsetting public benefit.
G. Provide Predictability and Transparency to developers, brokers, property owners, and
businesses through clearly articulated criteria, procedures, and performance expectations.
H. Encourage Corporate Citizenship by establishing expectations that incentive recipients will
support local businesses, charitable organizations, and community events that improve quality
of life for Oak Point residents.

1.04 Excellent Customer Service Commitment

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City of Oak Point, Texas — Economic Development Policy — DRAFT

Consistent with the EDC’s adopted Business Plan, the City of Oak Point commits to providing
excellent customer service to applicants under this Policy. The City will assign a single staff point
of contact (typically the City Manager or designee) to each application, will respond to applicant
inquiries promptly, and will work in good faith to coordinate review by the City Council, Planning
& Zoning Commission, EDC Board, and applicable City departments. This service commitment
does not modify any substantive requirement of this Policy or any deadline imposed by state law.

1.05 Discretionary Nature of Incentives
Nothing in this Policy creates an entitlement to any economic development incentive. The City
Council retains full and unfettered discretion to approve, deny, or modify any application for
incentives based on its determination of the public interest. Incentives are made available on a
case-by-case basis and may be limited or expanded based on the merits of each project, fiscal
conditions, and other factors deemed relevant by the City Council.

1.06 Definitions
For purposes of this Policy, the following terms shall have the meanings specified:
"Abatement" means the full or partial exemption from ad valorem property taxes on
improvements to real property and/or eligible tangible personal property for a specified period, as
authorized by Chapter 312, Subchapter B of the Texas Tax Code.
"Applicant" means any person, firm, partnership, joint venture, corporation, limited liability
company, association, governmental entity, or other legal entity that applies for incentives under
this Policy.
"Base Year Value" means with respect to a tax abatement, the certified appraised value of
eligible real property on January 1 of the year in which the tax abatement agreement is executed,
plus the agreed-upon value of any improvements made after that date but before agreement
execution, all as determined by the Denton Central Appraisal District.
"Chapter 380 Agreement" means an economic development agreement authorized under
Section 380.001 of the Texas Local Government Code providing for grants, loans, sales tax
revenue sharing, infrastructure reimbursement, or other forms of financial assistance to promote
local economic development and stimulate business and commercial activity.
"City" means the City of Oak Point, Texas, a Texas municipal corporation.
"City Council" means the City Council of the City of Oak Point, Texas.
"City Manager" means the City Manager of the City of Oak Point, or their designee.
"Direct Pay Permit" means a permit issued by the Texas Comptroller of Public Accounts under
Comptroller Rule 3.288 and Section 151.417 of the Texas Tax Code authorizing a holder to remit
sales and use taxes directly to the Comptroller, which has the effect of attributing local sales tax
to the situs of the permit holder’s place of business in accordance with applicable Comptroller
rules.

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City of Oak Point, Texas — Economic Development Policy — DRAFT

"Economic Development Agreement" means a contractual agreement between the City and
an Applicant for the purpose of providing tax abatement, Chapter 380 assistance, or other
economic incentives, executed in accordance with applicable state law and this Policy.
"EDC" means the Oak Point Economic Development Corporation, a non-profit industrial
development corporation organized under the Development Corporation Act, Chapters 501–505
of the Texas Local Government Code.
"Eligible Sales Tax" means for purposes of any sales tax revenue sharing under a Chapter 380
Agreement, the City’s share of municipal sales and use tax revenue actually received by the City
from the Texas Comptroller of Public Accounts that is attributable to the project site under
applicable Comptroller rules and that is not subject to a voter-approved dedicated use restriction
described in Section 6.05 of this Policy.
"Expansion" means the addition of buildings, structures, machinery, equipment, or other
improvements to real property by an Existing Business that meets the minimum investment
thresholds set forth in Section 4.07 of this Policy and that increases the productive capacity,
operational scope, square footage, or sales tax generation of the existing business.
"Existing Business" means a business that has been in continuous operation within the City of
Oak Point for at least twelve (12) months prior to the date of application.
"Facility" means real property improvements, including buildings, structures, machinery,
equipment, and other improvements to real property, that are used or useful in the operation of a
business.
"MDD" means the Oak Point Municipal Development District, created by election on May 14,
2011 under Chapter 377 of the Texas Local Government Code, which may undertake projects
authorized under Chapter 377 within the City and its extraterritorial jurisdiction.
"New Facility" means a Facility not in existence or under construction as of the date of application
for economic development incentives.
"Personal Property" means movable property not affixed to or associated with land, including
machinery, equipment, furniture, fixtures, and inventory, but expressly excluding mobile personal
property such as motor vehicles that is not fixed to property.
"Pro Forma" means any financial projection, modeling output, sources-and-uses statement, debt
service schedule, internal rate of return calculation, or similar forward-looking financial information
submitted by an Applicant in support of an application under this Policy. Pro Forma information is
treated as commercially sensitive and confidential to the maximum extent permitted by law, as
further described in Section 7.05.
"Reinvestment Zone" means an area within the City of Oak Point or its extraterritorial jurisdiction
that has been designated as a reinvestment zone by the City Council pursuant to Chapter 311 or
Chapter 312, Subchapter B, of the Texas Tax Code.

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City of Oak Point, Texas — Economic Development Policy — DRAFT

"Sales Tax Revenue Sharing" means an arrangement under a Chapter 380 Agreement whereby
the City agrees to grant to a recipient a portion of the City’s Eligible Sales Tax actually received
by the City and attributable to the project site, as further described in Section 6.04.
"TIRZ" means a tax increment reinvestment zone designated by the City under Chapter 311 of
the Texas Tax Code.

SECTION 2: TYPES OF INCENTIVES AVAILABLE
2.01 Tax Abatement Programs
The City may grant ad valorem tax abatements on qualifying real property improvements and
eligible tangible personal property within a designated Reinvestment Zone pursuant to Chapter
312, Subchapter B of the Texas Tax Code, subject to the requirements of Section 4 of this Policy.

2.02 Tax Increment Reinvestment Zone (TIRZ) Programs
The City has designated one TIRZ consistent with Chapter 311 of the Texas Tax Code. The City
may consider additional TIRZ projects on a case-by-case basis and will consider qualified
applications that request property tax assistance in a TIRZ. The City may use captured
incremental ad valorem tax revenue to fund public improvements and project costs that further
the development of the zone. Other taxing units, including Denton County, but not including
local school districts, may participate in a City-created TIRZ subject to their own policies and
approvals. TIRZs are described further in Section 5 of this Policy.

2.03 Chapter 380 Economic Development Programs
The City may enter into agreements under Section 380.001 of the Texas Local Government Code
to provide grants, loans, Sales Tax Revenue Sharing, infrastructure reimbursement, fee waivers
(where legally permissible), and other forms of assistance designed to promote economic
development and stimulate business and commercial activity within the City. Chapter 380
programs are described further in Section 6 of this Policy.

2.04 EDC-Supported Programs
The Oak Point Economic Development Corporation may, in its discretion and consistent with its
statutory authority under Chapters 501–505 of the Texas Local Government Code, undertake
projects or provide assistance that supports or supplements an incentive offered under this Policy.
EDC participation is subject to the EDC Board’s independent approval, City Council oversight as
required by law, and any required public hearing and notice requirements. Nothing in this Policy
obligates the EDC to participate in any particular project. EDC funds may not be used to fund
residential, multi-family, or mixed-use residential components of any project, except for affordable
housing projects approved by the qualified voters of the City at an election held under Section
505.153 of the Texas Local Government Code. Where a project includes a residential or multifamily component for which incentives are sought, that component shall be addressed, if at all,
through Chapter 380, TIRZ, or MDD mechanisms rather than through EDC funds.

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2.05 Other Incentives

City of Oak Point, Texas — Economic Development Policy — DRAFT

The City may, in its discretion and to the extent permitted by law, offer other forms of assistance,
including but not limited to expedited permitting, fee waivers (where lawful), infrastructure
participation, land contribution or sale at fair market value, and coordination with utility providers
and adjacent governmental entities. The use of any such tool is subject to City Council approval
and applicable law.

2.06 Municipal Development District Programs
The Oak Point Municipal Development District (the “MDD”) was created by election on May 14,
2011 under Chapter 377 of the Texas Local Government Code, and a 0.25% sales and use tax
was adopted at the same election effective in the City limits and the City’s extraterritorial
jurisdiction. The MDD may undertake projects that are statutorily authorized under Chapter 377,
including but not limited to business development, projects related to creation or retention of
primary jobs, recreational and community facilities, water supply and water conservation, and
affordable housing. The MDD’s ETJ reach is a meaningful structural advantage, allowing the City
to deploy sales-tax-funded development support to projects in territory not reached by the City’s
general municipal sales tax. The MDD Board reviews and recommends MDD-funded projects to
the City Council for final approval, subject to any public hearing or notice requirements applicable
under Chapter 377. Where the same individuals serve on both the EDC Board and the MDD
Board, joint review of a project under both frameworks shall proceed through coordinated
agendas with the role of each entity (EDC, MDD, and City Council) clearly identified for each
action item.

SECTION 3: REINVESTMENT ZONE DESIGNATION
3.01 Designation Requirements
The City Council may designate a Reinvestment Zone for purposes of property tax abatement
under Chapter 312, Subchapter B of the Texas Tax Code, after a public hearing, upon making
the findings required by Section 312.202 of the Texas Tax Code, including a finding that
designation of the zone is reasonably likely to contribute to the retention or expansion of primary
employment, or to attract major investment in the zone, that would be a benefit to the property
and that would contribute to the economic development of the City.

3.02 Geographic Scope
Reinvestment Zones may be designated within the corporate limits of the City of Oak Point and,
where authorized by law and supported by interlocal agreement or annexation agreement, within
the City’s extraterritorial jurisdiction. Multiple non-contiguous areas may be included within a
single Reinvestment Zone provided that each area independently meets the eligibility criteria of
Section 312.202. Zone boundaries shall be clearly defined by metes and bounds, recorded plat,
or other precise legal description.

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City of Oak Point, Texas — Economic Development Policy — DRAFT

The percentage area cap of twenty-five percent (25%) set forth in Section 312.402 of the Texas
Tax Code applies only to county-designated reinvestment zones and does not apply to
Reinvestment Zones designated by the City.

3.03 Public Hearing and Notice
A. Hearing Requirement. Before designating a Reinvestment Zone, the City Council shall hold
a public hearing as required by Section 312.201(d) of the Texas Tax Code.
B. Notice. Notice of the public hearing shall be published in a newspaper of general circulation
in the City at least seven (7) days before the date of the hearing, and written notice shall be
delivered to the presiding officer of the governing body of each other taxing unit that includes
territory within the proposed Reinvestment Zone at least seven (7) days before the hearing.
C. Hearing Procedures. Any interested person may speak for or against designation of the zone.
The presiding officer may establish reasonable time limits for speakers.
D. Public Input. The City Council shall consider all public input received during the hearing in
making its determination.

3.04 Approval Process
A. Ordinance Required. Reinvestment Zones shall be designated by ordinance of the City
Council following completion of all required procedures.
B. Required Findings. The ordinance must contain the findings required by Sections 312.201
and 312.202 of the Texas Tax Code.
C. Zone Map. A map clearly delineating the boundaries of the zone, together with a metes and
bounds description, shall be attached to and made part of the designation ordinance.
D. Effective Date. The ordinance shall specify the effective date of designation, which shall be
January 1 of the tax year following adoption unless a different date is specified.

3.05 Duration and Renewal
A. Initial Term. Reinvestment Zones designated under Chapter 312 shall expire five (5) years
from the date of designation unless terminated earlier or renewed by action of the City Council,
consistent with Section 312.203 of the Texas Tax Code.
B. Renewal. Zones may be renewed for additional periods not to exceed five (5) years each,
subject to the same procedures required for initial designation.
C. Agreement Limitations. Tax abatement agreements may extend beyond the termination of a
Reinvestment Zone only as permitted by Section 312.203(b) of the Texas Tax Code, which
provides that termination of the zone does not impair existing tax abatement agreements.
D. Early Termination. The City Council may terminate a Reinvestment Zone before its scheduled
expiration date by ordinance, provided that such termination does not impair any existing
contractual obligation.

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3.06 Multiple Zone Designations

City of Oak Point, Texas — Economic Development Policy — DRAFT

The City may designate multiple Reinvestment Zones throughout its corporate limits and
extraterritorial jurisdiction. Each zone may be designated for different purposes and may have
different characteristics based on local conditions, planning objectives, and the specific findings
supporting designation.

3.07 Coordination with Enterprise Zones and Other Programs
Reinvestment Zones may be designated to coincide with, or to coordinate with, an enterprise
zone designated under Chapter 2303 of the Texas Government Code, a TIRZ, a public
improvement district (PID), a municipal management district, or any other special-purpose district,
where doing so will maximize available benefits and align public investments.

3.08 Uniform Terms Requirement
Tax abatements offered within each Reinvestment Zone shall be on terms that comply with the
uniform-terms requirement of Section 312.206 of the Texas Tax Code, except that different terms
may be established for different categories of projects within a zone provided that any
differentiation is based on objective criteria related to investment level, sales tax generation,
employment, or other factors that further the public purpose of the zone.

SECTION 4: TAX ABATEMENT PROGRAM
4.01 Eligible Properties and Facilities
A. Real Property Requirement. Only real property located within a designated Reinvestment
Zone is eligible for tax abatement under this Policy.
B. Improvements Only. Tax abatement applies only to the increased assessed value resulting
from qualifying improvements made after the Base Year Value is established.
C. New Facilities. Newly constructed buildings, structures, and improvements are eligible if they
meet the requirements of this Section 4.
D. Existing Facility Expansion. Expansions of existing Facilities may be eligible as set forth in
Section 4.07.
E. Eligible Tangible Personal Property. Eligible tangible personal property may be considered
for abatement only if it is located on real property that is itself eligible for abatement and only
to the extent permitted by Section 312.211 of the Texas Tax Code.
F. Excluded Property. The following types of property are not eligible for tax abatement under
this Policy:
•

Property owned by a governmental entity;

•

Inventory and supplies (except as expressly permitted by Section 312.211 of the Texas
Tax Code);

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•

Property that does not meaningfully advance the economic development objectives of
the Reinvestment Zone in which it is located; and

•

Improvements that are required by law, court order, or as a condition of approval of a
development application unrelated to incentive consideration.

4.02 Eligible Applicants
A. Property Ownership. Any person or entity that owns or will own real property within a
designated Reinvestment Zone may apply for tax abatement.
B. Financial Capability. Applicants must demonstrate financial capability to complete the
proposed improvements within the timeframes specified in the Economic Development
Agreement.
C. Lessee Applications. An application submitted by a lessee or tenant must include the written
consent of the real property owner and must demonstrate that the lease term extends
throughout the proposed abatement period or that the leasehold estate is otherwise sufficient
to support the obligations under this Policy.
D. Permits and Licenses. Applicants must obtain all required business licenses, registrations,
and permits for operation within the City of Oak Point prior to commencement of the
abatement period.

4.03 Value of Abatement
A. General Projects. Tax abatement may be granted on up to fifty percent (50%) of the increased
assessed value of eligible real property improvements for a period not to exceed ten (10)
years. Eligible tangible personal property may be considered for abatement up to fifty percent
(50%) for a period not to exceed five (5) years.
B. Target Industry / High-Impact Projects. Enhanced abatement of up to eighty percent (80%)
of the increased assessed value of eligible real property improvements may be considered for
projects that demonstrate exceptional economic benefit, including but not limited to substantial
sales tax generation, primary employment creation, or strategic alignment with the City’s
adopted vision for commercial development.
C. Graduated Schedule. The City Council may establish graduated abatement schedules that
provide different percentages in different years (for example, higher percentages in early
years declining over time, or vice versa) provided that the maximum percentage in any year
does not exceed the limit in Subsection A or B above.
D. Aggregate Cap. In no event shall the total tax abatement granted under any single Economic
Development Agreement exceed limits authorized by Chapter 312 of the Texas Tax Code or
any applicable interlocal agreement with another taxing unit.

4.04 General Project Requirements and Guidelines

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A. Minimum Investment Thresholds. Except as otherwise approved by the City Council based
on extraordinary public benefit, applications for tax abatement must meet the following
minimum thresholds:
•

Retail / Commercial / Restaurant New Construction: qualified investment of at least
Five Million Dollars ($5,000,000) in real property improvements.

•

Office / Mixed-Use / Hospitality New Construction: qualified investment of at least
Ten Million Dollars ($10,000,000) in real property improvements.

•

Industrial / Distribution / Manufacturing: qualified investment of at least Ten Million
Dollars ($10,000,000) in real and personal property improvements combined.

•

Existing Business Expansion: qualified investment of at least Five Hundred Thousand
Dollars ($500,000) in additional real or personal property improvements (see Section
4.07).

These thresholds are guidelines. The City Council may approve incentives for projects that do not
meet these thresholds upon a finding that the project provides extraordinary public benefit, or may
decline to grant incentives to projects that meet these thresholds where the public benefit is
insufficient.
B. Property Standards. All improvements must meet or exceed applicable building codes, zoning
requirements, and the development standards of any applicable overlay district. Properties
must be maintained in good condition throughout the abatement period.
C. Environmental Compliance. Projects must comply with all applicable federal, state, and local
environmental regulations and obtain all necessary environmental permits and approvals
before construction begins.
D. Construction Timeline. Construction must commence within eighteen (18) months of
execution of the Economic Development Agreement, and all improvements must be
completed within four (4) years of execution, unless extended by the City Council for good
cause.
E. Progress Reports. Applicants must provide quarterly progress reports during the construction
period.
F. Maintenance and Insurance. Abated property must be maintained in good condition and
adequately insured throughout the abatement period, with coverage amounts specified in the
Economic Development Agreement.

4.05 Target Industries and Strategic Targeting
The City may, from time to time and in coordination with the EDC, identify target industries and
target development categories for enhanced consideration under this Policy. Target categories
may be informed by market analyses commissioned by the EDC, the EDC’s adopted Business
Plan, the City’s comprehensive plan, and adopted overlay district requirements. Target categories
may include, without limitation:

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•

Sales Tax-Generating Retail and Restaurant Concepts that fill identified gaps in the
local market and reduce the export of sales tax revenue.

•

Destination Commercial and Hospitality Uses that draw consumers from the broader
regional market.

•

Professional and Personal Services that residents currently travel outside Oak Point
to access.

•

Mixed-Use and Pedestrian-Oriented Development consistent with adopted overlay
district standards along the FM 720 and U.S. Highway 380 corridors.

Enhanced abatement percentages within the limits of Section 4.03 may be considered for projects
in identified target categories that demonstrate exceptional economic benefit through factors such
as substantial recurring sales tax generation, high-wage employment, significant capital
investment, or strategic importance to the corridor in which the project is located.

4.06 Value Decline Adjustments
If the assessed value of abated property declines during the abatement period for reasons other
than ordinary depreciation (including, without limitation, a successful protest of valuation, casualty
loss not promptly remediated, or removal of improvements), the percentage of abatement shall
be applied only to the actual value increase attributable to the qualifying improvements as
determined by the Denton Central Appraisal District. This adjustment ensures that tax abatements
are granted only on actual increases in property value.

4.07 Existing Business Expansion
A. Eligibility. An Existing Business may qualify for tax abatement on a Facility Expansion that
meets the following criteria:
•

Investment Threshold: minimum qualified investment of Five Hundred Thousand
Dollars ($500,000) in additional real or personal property improvements.

•

Zone Location: the expansion must be located within a designated Reinvestment Zone,
either at the existing business location or at a new location within the City.

•

Substantial Expansion: the expansion must represent a substantial increase in
productive capacity, operational scope, square footage, employment, or sales tax
generation, and not merely replacement or maintenance of existing facilities.

•

Business Continuity: the Existing Business must have been in continuous operation
within the City for at least twelve (12) months before application. Existing Businesses in
continuous operation in the City for five (5) years or more shall receive additional
consideration.

B. Application Requirements. Existing Business Expansion applications must include detailed
documentation of current operations, employment, and sales tax history; comprehensive
expansion plans (including drawings, specifications, and operational changes); and an
economic impact analysis describing the impact of the expansion on the City.

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C. Performance. Expansion projects must maintain existing employment levels in addition to any
new employment created by the expansion and must complete the expansion within the
timeframes specified in the Economic Development Agreement.

SECTION 5: TAX INCREMENT REINVESTMENT ZONE PROGRAMS
5.01 Authority and Use of TIRZ
The City may designate one or more TIRZs under Chapter 311 of the Texas Tax Code to fund
public improvements and project costs that further the development of the zone. The City’s use
of TIRZs shall be guided by the following principles:
•

TIRZs should be used to address identifiable barriers to development (such as
inadequate infrastructure or extraordinary site costs) that would not be overcome
through ordinary market action;

•

TIRZ project plans and financing plans must demonstrate fiscal responsibility, including
realistic revenue projections and adequate provisions for debt service if any debt is
contemplated;

•

Participation by other taxing units in a City-created TIRZ shall be sought where
appropriate but is not required for designation; and

•

Use of TIRZ revenue shall be limited to costs eligible under Section 311.002 of the
Texas Tax Code. The City’s TIRZ shall capture only the increment attributable to taxable
real property; tangible personal property, business personal property, inventory, and
sales tax revenue are not part of the captured appraised value under Sections 311.012
and 26.03 of the Texas Tax Code, and any contemplated sharing of such revenue with a
developer must be addressed through a separate Chapter 380 mechanism or, with
respect to sales tax increment, through the procedure under Section 311.0123 of the
Texas Tax Code (which requires its own election).

5.02 Required Documentation
An application for a TIRZ designation, or for City participation in an Applicant’s TIRZ-related
project, shall include a preliminary project and financing plan meeting the requirements of Section
311.011 of the Texas Tax Code, an analysis of incremental tax revenue projections, an
identification of public improvements proposed to be funded, and any proposed participation by
other taxing units.

5.03 City Representation and Oversight
The City Council shall appoint members of any TIRZ board of directors as required by Section
311.009 of the Texas Tax Code, shall approve any project plan and financing plan for the zone,
and shall retain authority to amend, terminate, or modify the zone in accordance with statutory
requirements. It is the recommendation of this Policy that the City Council serve as the board of
directors of any TIRZ created by the City, exercising the powers and duties of the TIRZ board
under Section 311.009 of the Texas Tax Code.

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5.04 Notification Requirements

City of Oak Point, Texas — Economic Development Policy — DRAFT

The City shall provide notice to other affected taxing units (including Denton County and
applicable independent school districts) of any proposed TIRZ designation in accordance with
Section 311.003 of the Texas Tax Code and shall coordinate in good faith with such taxing units
regarding their potential participation.

5.05 Financial Protections
A. Performance Guarantees. Agreements involving TIRZ funds shall include appropriate
performance guarantees, completion bonds, or other financial safeguards to protect the City’s
investment.
B. Recapture Provisions. Agreements shall include recapture provisions allowing recovery of
contributed funds in cases of non-performance, project abandonment, or material breach.
C. Termination Rights. The City may terminate participation for cause with appropriate notice,
and agreements shall specify the procedures and consequences of termination.
D. Audit Rights. The City retains the right to audit project finances and performance to ensure
compliance with agreement terms and proper use of public funds.

SECTION 6: CHAPTER 380 ECONOMIC DEVELOPMENT PROGRAMS
6.01 Eligibility Criteria
A Chapter 380 Agreement may be considered for projects that meet the following criteria:
A. Significant Economic Impact. Projects must demonstrate significant positive economic
impact on the City through substantial sales tax generation, ad valorem tax base
enhancement, employment, or other measurable benefits that justify public investment.
B. Public Purpose. All projects must serve a clearly articulated public purpose under Article III,
Section 52-a of the Texas Constitution and Section 380.001 of the Texas Local Government
Code, with community benefit that extends beyond the direct benefit to the Applicant.
C. But-For Demonstration. Applicants for a Chapter 380 Agreement shall demonstrate, to the
City Council’s reasonable satisfaction, that the project would not occur, would occur at a
materially smaller scale, or would occur at a different location “but for” the requested incentive.
The City Council retains discretion to weigh the strength of this showing.
D. Financial Feasibility. Projects must be financially feasible and demonstrate a reasonable
likelihood of successful completion and ongoing viability. Applicants must provide evidence of
financial capacity and sound business planning, including, where applicable, Pro Forma
submissions consistent with Section 7.05.
E. Plan Consistency. Projects should be consistent with the City’s adopted comprehensive plan,
future land use plan, applicable overlay district standards, and the EDC’s adopted Business
Plan, including the EDC’s articulated commercial development vision.

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F. Legal Compliance. All projects must comply with applicable federal, state, and local laws and
regulations, including environmental requirements, zoning restrictions, and building codes.

6.02 Types of Assistance Available
Subject to applicable legal requirements and availability of funds, the City may provide assistance
under Chapter 380 in any of the following forms:
A. Grants and Loans. Direct financial assistance for project development, with terms and
conditions tailored to project characteristics and public benefit.
B. Sales Tax Revenue Sharing. Performance-based grants funded from a portion of the City’s
Eligible Sales Tax actually received by the City and attributable to the project site, as further
described in Section 6.04.
C. Ad Valorem Tax Rebates. Performance-based grants funded from a portion of the City’s ad
valorem tax revenue actually received from the project site, structured as a rebate of the City’s
share of property taxes paid.
D. Infrastructure Reimbursement. Reimbursement, in whole or in part, for the cost of public
infrastructure (including water, sewer, drainage, roadway, and traffic improvements)
constructed by an Applicant that benefits the broader public.
E. Land Assistance. Assistance with site assembly, land acquisition, demolition, environmental
remediation, or related site preparation costs, where lawful and consistent with applicable
constitutional limits.
F. Fee Waivers. Waiver or reduction of City-imposed fees where lawful and where the waiver is
reflected in a Chapter 380 Agreement.
G. Other Authorized Assistance. Other forms of assistance specifically authorized by Chapter
380 of the Texas Local Government Code and deemed appropriate by the City Council.

6.03 Funding Source and Appropriation
All payments under Chapter 380 Agreements shall be subject to annual appropriation by the City
Council, shall be paid solely from lawfully available funds, and shall not constitute a general
obligation or debt of the City within the meaning of any constitutional or statutory provision. Each
Chapter 380 Agreement shall include language clearly identifying the source of funds and
confirming that the Agreement is not a debt or obligation payable from ad valorem taxes other
than as expressly provided.

6.04 Sales Tax Revenue Sharing
A. Authority and Statutory Context. Section 380.001 of the Texas Local Government Code
does not impose a statutory percentage cap on the portion of municipal sales and use tax that
may be granted to a recipient under a Chapter 380 Agreement. The City retains discretion to
negotiate any percentage and term it deems consistent with the public interest, subject to the
limitations of this Policy and Section 6.05.

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B. Eligible Sales Tax Only. Sales Tax Revenue Sharing may be paid only from Eligible Sales
Tax. The City’s share of any voter-approved dedicated sales taxes (including without limitation
any tax dedicated under Chapter 327 of the Texas Tax Code or for the EDC under Chapter
504 or 505 of the Texas Local Government Code) is excluded from Eligible Sales Tax and
may not be the source of any rebate or grant under a Chapter 380 Agreement, as further
described in Section 6.05.
C. Tax Situs and Direct Pay Permits. Sales Tax Revenue Sharing is administratively dependent
on local sales tax being attributed (“sitused”) to the project location under Comptroller rules.
For projects where the recipient or its tenants make qualifying purchases for use in their
operations, the use of a Direct Pay Permit issued under Section 151.417 of the Texas Tax
Code and Comptroller Rule 3.288 may be the appropriate mechanism for situs attribution.
Each Chapter 380 Agreement involving Sales Tax Revenue Sharing shall (i) identify the situs
mechanism contemplated, (ii) require the recipient to use commercially reasonable efforts to
maintain proper situs, and (iii) provide that the City has no obligation to make payments on
tax it does not actually receive from the Comptroller.
D. Performance Conditions. Sales Tax Revenue Sharing payments shall be conditioned on
documented performance milestones, which may include certificate of occupancy, opening
for business, minimum sales tax generation thresholds, capital investment certifications, and
ongoing compliance with the Economic Development Agreement.
E. Verification and Confidentiality. Recipients shall provide such reports, certifications, and
supporting documentation as the City reasonably requires to verify Eligible Sales Tax
attributable to the project site. The City shall protect taxpayer-specific sales tax information
from disclosure to the maximum extent permitted by Section 321.3022 of the Texas Tax Code
and Section 552.101 of the Texas Government Code.
F. Caps, Term, and Sunset. Each Sales Tax Revenue Sharing arrangement shall include a
stated term, an aggregate dollar cap (or other clearly stated outer limit), and any applicable
annual cap. The City Council retains discretion to set those terms based on the merits of each
project.

6.05 Restrictions on Voter-Approved Dedicated Sales Taxes
Notwithstanding any other provision of this Policy, no Chapter 380 Agreement shall rebate, share,
or otherwise commit to a third party any portion of a sales and use tax that has been adopted by
the voters of the City for a dedicated purpose, including without limitation:
•

Street Maintenance Sales Tax. Any tax adopted under Chapter 327 of the Texas Tax
Code, which by statute is dedicated to street maintenance and the contract with the
voters who approved the tax;

•

Type A or Type B EDC Sales Tax. Any tax adopted under Chapter 504 or Chapter 505
of the Texas Local Government Code, which is dedicated to the purposes of the
corresponding development corporation;

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•

Municipal Development District Sales Tax. The 0.25% sales and use tax adopted by
Oak Point voters on May 14, 2011 under Chapter 377 of the Texas Local Government
Code, which is dedicated to the purposes of the Oak Point Municipal Development
District; and

•

Other Voter-Dedicated Taxes. Any other municipal sales tax adopted for a specific
purpose by the voters of the City.

This restriction reflects both the statutory dedication of these revenues and the principle,
recognized in Texas Attorney General opinions, that voter-approved dedicated sales taxes
constitute a contract with the voters that may not be unilaterally redirected by the City Council.
Redirection of any such tax requires a new election in accordance with applicable law.

6.06 Performance Requirements
All Chapter 380 Agreements shall include specific performance requirements tailored to the
project, which may include:
•

Job Creation and Retention. Specific commitments regarding the number, type, and
quality of jobs to be created or retained, including wage levels and benefit packages
where applicable.

•

Capital Investment. Minimum capital investment commitments with specific timelines
for completion.

•

Sales Tax Generation. Minimum sales tax generation milestones for projects that
include Sales Tax Revenue Sharing.

•

Operational Requirements. Requirements for ongoing business operations, hours of
operation as appropriate, and continued use of the property for the purposes specified in
the Agreement.

•

Timeline Compliance. Specific deadlines for project milestones, completion of
improvements, and achievement of performance measures.

•

Reporting and Monitoring. Regular reporting requirements including financial
certifications, employment data, and operational statistics necessary to monitor
compliance and performance.

6.07 Economic Development Agreement Requirements
All Chapter 380 Agreements must include the following elements:
A. Legal Authorization. Each Agreement must be authorized by ordinance or resolution of the
City Council following all required procedures.
B. Project Specifications. Detailed description of the project, proposed improvements, intended
use, and expected outcomes with specific performance metrics.
C. Assistance Details. Specific description of the type and amount of assistance, payment
schedules, performance triggers, and conditions for disbursement.

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D. Performance Standards. Clear, measurable performance standards including quantifiable
goals.

E. Monitoring and Enforcement. Procedures for ongoing monitoring, reporting, and
enforcement mechanisms for non-compliance.
F. Recapture and Default. Comprehensive recapture provisions specifying conditions under
which assistance must be repaid, methods for calculating recapture amounts, and procedures
for enforcement.
G. Annual Appropriation Clause. Confirmation that all payments are subject to annual
appropriation and are not a debt of the City.
H. Term and Termination. Agreement duration, renewal procedures, termination provisions, and
post-termination obligations.
I. Access to Facility. City inspection rights to verify compliance with the Agreement.
J. Annual Evaluation. Annual evaluation of recipient compliance and reporting of any possible
violations.

SECTION 7: APPLICATION REQUIREMENTS
7.01 General Application Process
A. Application Form. Applications for incentives must be submitted on the official Application for
Economic Development Incentives prescribed by the City and signed by an authorized
representative of the Applicant.
B. Pre-Application Conference. Applicants are strongly encouraged to meet with the City
Manager before submitting a formal application to discuss project details, applicable
requirements, and available incentives.
C. Application Completeness. Applications will not be processed until all required
documentation is received and deemed complete by City staff. Incomplete applications will be
returned with a specification of missing items.
D. Processing Timeline. Complete applications will be reviewed and processed within ninety
(90) days of receipt unless extended by mutual agreement.
E. Multiple Applications. Separate applications must be submitted for each distinct project or
property, although related projects may be coordinated for simultaneous review.

7.02 Application Fee

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A. Fee Requirement. Each application for incentives shall be accompanied by a non-refundable
application fee of One Thousand Dollars ($1,000.00) 1 which must be received before the
application will be reviewed.
B. Fee Payment. The application fee must be paid by cashier’s check, certified check, or money
order made payable to the City of Oak Point.
C. Fee Waiver. The City Council may waive the application fee upon a finding that the waiver
serves the public interest and supports important City economic development objectives.
D. Waiver Procedure. Requests for fee waivers must be submitted in writing with supporting
documentation and will be considered by the City Council on a case-by-case basis.

7.03 Professional Services Reimbursement Agreement
The City may require the Applicant to enter into a Professional Services Reimbursement
Agreement under which the Applicant agrees to fund the City’s reasonable external costs
(including legal, financial, real estate, environmental, and engineering consulting fees) of
reviewing, analyzing, and negotiating the application and any associated Economic Development
Agreement. The Reimbursement Agreement shall include reasonable budget controls, periodic
invoicing, and the right of the Applicant to terminate the application upon payment of accrued
costs. The Professional Services Reimbursement Agreement is in addition to, and not in lieu of,
the application fee required under Section 7.02.

7.04 Coordination with Other Taxing Units
The City shall coordinate, as appropriate, with Denton County, and other affected taxing units
regarding any application that may affect their interests. The City may, but is not required to,
condition the offer of incentives on participation by other taxing units. Where a project is located
within both the City and an applicable county reinvestment zone or county Chapter 381 program,
the City shall coordinate with the County in the spirit of intergovernmental cooperation.

7.05 Confidentiality Provisions
A. Pro Forma and Commercially Sensitive Information. Pro Forma submissions and other
commercially sensitive information — including, without limitation, capital and operating
budgets, sources-and-uses statements, debt service schedules, internal rates of return,
projected sales, sales tax projections, projected lease rates, sensitivity analyses, and any
modeling outputs — are submitted to the City in confidence and shall be treated as confidential
to the maximum extent permitted by Texas law, including without limitation Sections 552.101,
552.110, and 552.131 of the Texas Government Code (Public Information Act exceptions for
confidential information made confidential by law, trade secrets and certain commercial or
financial information, and certain economic development information).

1 In many cases there will need to be a professional services agreement signed along with the application

fee depending on the project.

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B. Identification by Applicant. Applicants must clearly mark each page or document containing
information claimed to be confidential and must provide, upon request, a written statement
supporting the claim of confidentiality. The City will not disclose such information without first
providing the Applicant a reasonable opportunity to assert confidentiality with the Office of the
Attorney General if a public information request is received.
C. Sales Tax Information. Taxpayer-specific sales tax information received by the City is
confidential under Section 321.3022 of the Texas Tax Code and shall be treated accordingly.
The City will not disclose such information except as authorized by that statute.
D. Public Information Act Compliance. Applicants acknowledge that the City is subject to the
Texas Public Information Act and that final determinations regarding disclosure are made by
the Office of the Attorney General or a court of competent jurisdiction. The City does not
guarantee the confidentiality of any submitted information beyond what state law allows.
E. Protective Measures. The City shall implement reasonable measures to safeguard
confidential materials during the review process, including limiting access to information to
those staff, consultants, EDC Board members, City Council members, and Planning & Zoning
Commission members with a need to know.

SECTION 8: REVIEW AND APPROVAL PROCESS
8.01 Application Review Procedures
A. Initial Review. City staff will conduct an initial completeness review within fifteen (15) days of
submission and will notify the Applicant of any deficiencies.
B. Technical Review. Complete applications will undergo comprehensive technical review,
including legal compliance, financial feasibility, economic and fiscal impact, and site
evaluation.
C. Site Inspection. City representatives may conduct site inspections to verify information
provided in applications and assess development feasibility.
D. Consultant Review. The City may retain independent consultants, attorneys, economists,
financial analysts, or other experts to assist with review and analysis, with reasonable costs
charged to the Applicant pursuant to Section 7.03.
E. Intergovernmental Coordination. Staff shall coordinate with affected taxing units, utility
providers, and other governmental entities during the review process.

8.02 EDC Coordination and Recommendation
Before the City Council considers any application for incentives under this Policy, the application
shall be referred to the EDC Board for review and recommendation. The EDC Board’s review
shall focus on alignment with the EDC’s adopted Business Plan, target industries, and broader
economic development strategy, and shall result in a written recommendation to the City Council.
The EDC Board’s recommendation is advisory; final authority over City incentives rests with the

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City Council. Where an application also requires direct EDC participation (for example, where the
EDC is to fund a portion of an incentive), the EDC Board shall conduct its own approval process
consistent with applicable law, including any required public hearing under Section 505.159 or
Section 504.106 of the Texas Local Government Code, as applicable. For Type B projects, the
EDC shall also comply with the project-notice and 60-day petition procedure under Section
505.160 of the Texas Local Government Code before any expenditure of EDC funds; the publichearing carve-out under Section 505.159(b) for projects defined in Subchapter C of Chapter 501
(primary-jobs projects) is available to Oak Point given its population, but does not relieve the EDC
of the Section 505.160 notice and petition requirement. Where an application requires direct
participation by the Municipal Development District in addition to or in lieu of EDC participation,
the application shall also be referred to the MDD Board, which shall conduct its own approval
process consistent with Chapter 377 of the Texas Local Government Code. Where the EDC
Board and MDD Board consist of overlapping members, joint review may proceed through
coordinated agendas, provided that each entity acts in its separate capacity and that the City
Council receives a written recommendation from each entity acting in that role.

8.03 Public Hearing Requirements
A. Hearing Requirement. The City Council shall hold a public hearing on each application for tax
abatement before final action, in accordance with Section 312.201 of the Texas Tax Code
where applicable. Public hearings on Chapter 380 Agreements are not statutorily required but
may be held in the City Council’s discretion.
B. Notice. Notice of any required public hearing shall be published as required by applicable
statute and shall include the date, time, location, general project description, and project
location.
C. Hearing Procedures. The Applicant or representative may present the project and respond to
questions. Any interested person may speak for or against the application during the
designated public input period. The presiding officer may establish reasonable time limits.
D. Record. A complete record of the public hearing shall be maintained, including all testimony,
exhibits, and written comments.

8.04 City Council Consideration
A. Final Authority. The City Council has final authority to approve, deny, or approve with
modifications all incentive applications, considering compliance with this Policy, magnitude
and quality of economic and fiscal benefit, financial feasibility, community impact, and public
interest.
B. Decision Timeline. The City Council will take final action on applications within sixty (60) days
following completion of the public hearing (where required) unless additional time is needed
for complex applications or additional information is required.

8.05 Economic Development Agreement Requirements

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All approved applications shall result in execution of a comprehensive Economic Development
Agreement containing, at a minimum, the following elements:
A. Project Description. Detailed description of approved improvements, construction
specifications, equipment installation, and operational requirements with specific performance
standards and completion deadlines.
B. Performance Standards. Specific, measurable performance standards including investment,
employment, and operational requirements.
C. Incentive Terms. Complete specification of approved incentives, including percentages,
durations, calculation methods, payment schedules, and any performance triggers.
D. Monitoring and Reporting. Comprehensive monitoring and reporting requirements, including
annual compliance reports and certification requirements.
E. Default and Recapture. Provisions identifying events of default, cure periods, and the City’s
recapture and enforcement rights.
F. General Provisions. Standard contractual provisions including assignment restrictions,
modification procedures, dispute resolution, governing law (Texas), and termination
conditions.

8.06 Assignment Restrictions
A. Assignment Prohibition. Economic Development Agreements may not be assigned or
transferred without prior written approval of the City Council.
B. Approval Criteria. Requests for assignment will be evaluated based on the assignee’s
financial capacity and qualifications, project continuity, and the public interest.
C. Assignment Conditions. Approvals may be conditioned on assumption of all obligations,
additional performance guarantees, or modified terms.
D. Documentation. All approved assignments shall be documented by written assignment
agreement executed by all parties and recorded in City records.

SECTION 9: COMPLIANCE AND MONITORING
9.01 Annual Certification Requirements
A. Annual Report Deadline. Recipients of incentives must submit comprehensive annual
compliance reports by March 31 of each year throughout the incentive period.
B. Report Contents. Annual reports must include employment certification, payroll information
(where applicable), capital investment status, operational certification, property maintenance
certification, sales tax-related certifications (where applicable), and disclosure of ownership
or control changes.
C. Verification. The City may require independent verification of reported information through
third-party audits, site inspections, or review of business records.
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City of Oak Point, Texas — Economic Development Policy — DRAFT

D. Consequences of Non-Reporting. Failure to submit required annual reports may constitute
default and may result in suspension of incentives or initiation of recapture proceedings.
E. Inspection Costs. The City Council may charge a reasonable fee for onsite inspections under
any incentive Agreement, posted in the City schedule of fees and subject to annual review.

9.02 Compliance Reviews and Audits
A. Review Authority. The City reserves the right to conduct periodic compliance reviews and
comprehensive audits of recipients to verify compliance with all Agreement terms.
B. Site Inspection Rights. City representatives may conduct site inspections during reasonable
business hours with appropriate notice to verify property condition, operational compliance,
investment, and employment.
C. Records Access. Recipients must provide reasonable access to relevant employment,
financial, investment, and operational records, subject to applicable confidentiality protections.
D. Independent Audits. The City may retain independent auditors with reasonable costs charged
to the recipient.
E. Cooperation. Recipients must cooperate fully with compliance reviews and audits.

9.03 Non-Compliance Remedies
A. Notice and Cure. Recipients who fail to comply will receive written notice of specific noncompliance issues and a reasonable opportunity to cure within timeframes specified in the
Agreement.
B. Cure Period Extensions. The City may grant reasonable extensions of cure periods upon
demonstration of good faith and circumstances beyond the recipient’s reasonable control.
C. Recapture Authority. Non-compliance not cured within specified timeframes may result in
recapture of abated taxes or other incentives.
D. Recapture Calculation. Recapture amounts may include the amount of property taxes that
would have been owed without the abatement (or the amount of grants paid), interest from
the date the obligation arose, and any contractual penalties.
E. Collection. Recaptured amounts are debts to the City and may be collected through tax liens
(where applicable), civil action for recovery (with attorneys’ fees and costs), and any other
legal or equitable remedy.
F. Termination. Agreements may be terminated by the City for material breach, repeated noncompliance, or other circumstances specified in the Agreement.
G. Enforcement Discretion. The City retains discretion in enforcement actions and may consider
factors such as good faith, economic circumstances, and overall project performance.

SECTION 10: COORDINATION WITH OTHER TAXING UNITS

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City of Oak Point, Texas — Economic Development Policy — DRAFT

10.01 Coordinated Incentive Packages

Where a project would benefit from incentive participation by multiple taxing units (for example,
the City together with Denton County under Chapter 381 of the Texas Local Government Code,
or together with an applicable independent school district), the City may coordinate with such
taxing units to develop coordinated incentive packages. Each taxing unit retains independent
authority over its own incentives.

10.02 County Reinvestment Zones
Where a project is located within a County-designated reinvestment zone under Section 312.401
of the Texas Tax Code, the City may, in its discretion, designate a separate City Reinvestment
Zone covering the same property under Section 312.201, may rely in part on County technical
reviews where appropriate, and may coordinate public hearings to streamline the process while
protecting City interests.

10.03 Retained City Rights
Notwithstanding any reliance on review processes of other taxing units or coordination with such
units, the City retains full authority over: (a) the terms and conditions of City incentives; (b) the
terms of City Economic Development Agreements; (c) compliance monitoring and enforcement
of City Agreements; and (d) determinations regarding default, non-compliance, and recapture of
City incentives.

SECTION 11: REPORTING AND NOTIFICATIONS
11.01 State Reporting Requirements
The City shall comply with all state reporting requirements regarding economic development
incentives, including any filings with the Texas Comptroller of Public Accounts required under
Section 312.005 of the Texas Tax Code (regarding tax abatement agreements), Section 311.016
(regarding TIRZs), and Section 380.004 of the Texas Local Government Code (Chapter 380
Public Database). The City shall maintain an internal system to track active Agreements,
performance data, fiscal impacts, and program effectiveness sufficient to support these reporting
obligations.

11.02 Inter-Governmental Notifications
The City shall provide timely notice to other affected taxing units of: (a) receipt of applications for
incentives that may affect their interests; (b) decisions on such applications; and (c) significant
performance or compliance issues affecting projects of mutual interest.

11.03 Public Notice and Transparency
The City shall make this Policy available on the City’s website and shall publish summaries of
executed Economic Development Agreements (excluding confidential information) in a manner

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City of Oak Point, Texas — Economic Development Policy — DRAFT

consistent with the Public Information Act and Section 380.004 of the Texas Local Government
Code.

SECTION 12: GENERAL PROVISIONS
12.01 Conflicts of Interest
A. Elected and Appointed Officials. No member of the City Council, the EDC Board, or the
Planning & Zoning Commission may participate in a vote or decision regarding any application
for incentives in which the member has a substantial interest, as defined in Chapter 171 of
the Texas Local Government Code, except as expressly permitted by that Chapter.
B. Employees. City employees involved in incentive decisions may not have financial interests
in projects under consideration and must disclose any potential conflicts.
C. Disclosure. All potential conflicts must be disclosed in writing in accordance with applicable
state law and City policies, including Chapter 176 of the Texas Local Government Code
(conflicts disclosure).
D. Recusal. Officials and employees with conflicts must recuse themselves from participation,
with the recusal documented in official records.

12.02 Superseding Effect
A. Policy Replacement. This Policy supersedes and replaces all previous City of Oak Point
economic development policies and tax abatement guidelines.
B. Existing Agreements. Existing Economic Development Agreements entered into under
previous policies shall remain in effect according to their specific terms until expiration or
termination.
C. Transition. Applications pending under previous policies at the time this Policy becomes
effective may be processed under either the previous or current policy at the discretion of the
City Council.

12.03 Amendment
This Policy may be amended from time to time by action of the City Council. The City Council
shall comply with applicable state law in adopting any amendment, including any required public
notice or hearing requirements. The City Council shall review this Policy at least once every two
(2) years to ensure it remains current and effective.

12.04 Severability
If any provision of this Policy is held invalid, illegal, or unenforceable by a court of competent
jurisdiction, the remaining provisions shall continue in full force and effect, and the invalid
provision shall be deemed severed.

12.05 No Third-Party Beneficiaries
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City of Oak Point, Texas — Economic Development Policy — DRAFT

This Policy is intended for the benefit of the City and is not intended to confer any rights, remedies,
or causes of action upon any person or entity other than the City. No third party (including any
prospective Applicant) shall have any right to enforce or rely upon this Policy.

12.06 Adoption
This Policy was adopted by the City Council of the City of Oak Point, Texas, on ____________,
20__, and shall be effective immediately upon adoption.

_______________________________________
Mayor, City of Oak Point, Texas
ATTEST:
_______________________________________
City Secretary
APPROVED AS TO FORM:
_______________________________________
City Attorney

Page 29 of 29

City of Oak Point, Texas

DATE:

June 18, 2026

TO:

Board of Directors for
Economic Development Corporation (EDC) and
Municipal Development District (MDD)

FROM:

Zina Pew, Finance / HR Director

SUBJECT: FY 2026 May Financial Report
Background:
The Finance Department presents an overview of FY 2026 financial activity year-to-date through May
2026. This report provides current information of the EDC and MDD financial activity and is intended
to deliver timely, transparent, and relevant information regarding the City’s current financial position.
The month of April represents 67% of the fiscal year completed. The preferred position is for
revenues to meet or exceed 67% and expenses to be less than 67%. At the end of the fiscal year, a
surplus balance will increase the reserve fund and a deficit balance will initiate a draw on existing
fund balance.

Attachments:
• Year-to-Date Budget Report comparing revenues and expenditures to budget expectations
with the percent of revenues earned and the percent of expenses incurred.

• 2023 – 2026 Sales Tax Revenue Chart analyzing funds received across a four-year period.

City of Oak Point, TX
Year-To-Date Budget Report
Fiscal Year 2026 Period Ending: 5/31/2026
66.7% of Year Completed

Report Date 6-8-26

Current
Total Budget

May '26
Actual

Balance
to Receive /
to Expend

Year-To-Date
Activity

Percent
Received/
Expended

Fund: 50 - Economic Development Fund

Revenue
Category: 50 - EDC Fund - Revenue
50-56-560100
General Sales Taxes - EDC Fund
50-56-560300
Interest Income - EDC
Category: 56 - EDC Fund - Revenue Total:

300,000.00
80,000.00
380,000.00

25,888.54
5,222.91
31,111.45

209,211.81
42,331.74
251,543.55

90,788.19
37,668.26
128,456.45

69.7%
52.9%
66.2%

Expense
Department: 850 - EDC - Economic Development Corp
50-850-880100
Professional Services
53,000.00
50-850-880200
Trade Shows, Membership & Professional Fees
21,900.00
50-850-880300
Advertising
16,000.00
50-850-880500
Printing & Postage
3,000.00
50-850-880700
Training
3,000.00
50-850-880800
Transfer to GF-Staff Support
46,200.00
50-850-880900
Auditor
4,000.00
Department: 850 - EDC - Economic Development Corp Total:
147,100.00

14,497.68
2,935.92
17,433.60

45,152.68
4,615.76
1,324.64
7,105.22
23,100.00
3,000.00
84,298.30

7,847.32
17,284.24
14,675.36
3,000.00
(4,105.22)
23,100.00
1,000.00
62,801.70

85.2%
21.1%
8.3%
0.0%
236.8%
50.0%
75.0%
57.3%

13,677.85

167,245.25

Fund: 50 - Economic Development Fund Surplus (Deficit):

232,900.00

Fund: 50-390050 Economic Dev Fund Reserve Balance

$

1,684,030.99

Fund: 80 - Municipal Development District
Revenue
Category: 41 - Taxes
80-41-411200
Sales Tax - MDD
80-41-580200
Interest Income - MDD
Category: 41 - Taxes Total:
Expense
Department: 100 - Administration
80-100-613510
Development Projects
80-100-613520
Consultants
80-100-613530
Transfer to GF-Staff Support
80-100-616230
Advertising
80-100-620310
Auditor
Department: 100 - Administration Total:
Fund: 80 - Municipal Development District Surplus (Deficit):
Fund: 80-390055 MDD Fund Reserve Balance

Report Date 6-8-26

240,000.00
60,000.00
300,000.00

23,000.00
46,200.00
16,000.00
2,000.00
87,200.00
212,800.00

27,217.42
4,249.83
31,467.25

31,467.25

187,759.97
34,444.65
222,204.62

52,240.03
25,555.35
77,795.38

78.2%
57.4%
74.1%

4,275.00
23,100.00
3,000.00
30,375.00

18,725.00
23,100.00
16,000.00
(1,000.00)
56,825.00

0.0%
18.6%
50.0%
0.0%
150.0%
34.8%

191,829.62
$

1,394,466.50

Page 1 of 1

EDC Sales Tax Revenue 2023 - 2026

$35

Summary & Trends
Revenues are 9.9% higher compared to the
same period of FY 2025 for October through
May predominately from retail sales.

$30
$25

Thousands

$20
$15
$10
$5
$0

October

November

December

January

February

March

April

May

FY 2023

$20,040

$22,827

$28,263

$18,565

$18,344

$21,877

$20,089

$22,567

FY 2024

$23,763

$22,229

$23,974

$17,741

$17,795

$22,311

$20,960

$22,887

FY 2025

$22,815

$25,068

$32,495

$21,031

$18,846

$20,687

$24,267

$25,197

FY 2026

$22,358

$26,859

$25,979

$26,898

$32,750

$23,796

$24,683

$25,889

MDD Sales Tax Revenue 2023 - 2026

$35.0

Summary & Trends
Revenues are 6.5% higher compared to the
same period of FY 2025 for October through
May predominately from retail sales.

$30.0
$25.0

Thousands

$20.0
$15.0
$10.0
$5.0
$0.0

October

November

December

January

February

March

April

May

FY 2023

$15,078

$17,153

$26,973

$11,890

$14,762

$17,097

$14,822

$16,225

FY 2024

$17,422

$18,421

$20,885

$14,998

$15,761

$17,293

$16,926

$18,193

FY 2025

$20,640

$23,111

$32,938

$18,832

$17,647

$20,224

$21,593

$21,357

FY 2026

$19,948

$22,317

$22,795

$23,683

$30,079

$20,497

$21,223

$27,217