Ordinance No. 15,312 ORDINANCE NO. 15,312
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS,
AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE AND THE
CITY CLERK TO ATTEST TO A TAX ABATEMENT AGREEMENT FOR CERTAIN
TAXABLE PROPERTY LOCATED WITHIN THE PORT 10 LOGISTICS
REINVESTMENT ZONE WITH PORT 10 1NTERMODAL, LLC; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
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WHEREAS,the City Council of the City of Baytown has established,through Resolution No.2726,
guidelines and criteria governing tax abatement agreements by the City of Baytown in a reinvestment zone;
and
WHEREAS,the City Council of the City of Baytown,through Resolution No.2726,has elected to
participate in tax abatements;and
WHEREAS, Resolution No. 2726 provides for the availability of tax abatements for both new
facilities and structures and for the expansion or modernization of existing facilities and structures; and
WHEREAS,on December 1, 2022,the City provided written notice to the presiding officer of the
governmental body of each other taxing unit in which the property subject to the agreement is located that
the City intends to enter into the tax abatement agreement,which was included with the notice;and
WHEREAS, on November 8, 2022, the City provided notice of the meeting at which the City
Council will consider the approval of the tax abatement agreement,which notice contained the following:
Owner Port 10 Intermodal, LLC
ame of Applicant Alan D. Feinsilver, President of Port 10 Intermodal,
LC
Name of Reinvestment Zone Port 10 Reinvestment Zone
Location of Reinvestment Zone 46.7988-acre tract of land located east of Thompson
Road and South of I-10, Harris County, Texas
Fescription of the General Nature One institutional-grade industrial building of
f the Improvements approximately 451,008 square feet for distribution/
warehouse purposes
stimated Cost of the $24,000,000.00
[Improvements
;and
WHEREAS,the City Council of the City of Baytown finds that the terms of the agreement and the
property subject to the tax abatement agreement with Port 10 Intermodal, LLC, meet the applicable
guidelines and criteria adopted by the City of Baytown; and
WHEREAS, the City Council of the City of Baytown finds that entering into the proposed
agreement will not result in a substantial adverse effect on the provision of the City's services or tax base
and that the planned use of the property will not constitute a hazard to public safety,health or morals; NOW
THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section 1: That the City Council of the City of Baytown,Texas,hereby authorizes and directs
the City Manager and City Clerk of the City of Baytown to execute and attest to a Tax Abatement
Agreement for certain taxable property within the Port 10 Logistics Reinvestment Zone with Port 10
Intermodal,LLC. A copy of said agreement is attached hereto,marked Exhibit"A,"and made a part hereof
for all intents and purposes.
Section 2: This ordinance shall take effect immediately from and after its passage by the City
Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 8'day of December,2022.
RANDON CAPETILLO, ayor
ATTEST:
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APPROVED AS O -ORM: OF Ileo$�
SCOTT L O D,City Attorney
R:Karen Anderson ORDINANCES\2022\2022.12.08 TaxAbatementAgreementPort101ntermodal.docx
2
EXHIBIT "A"
City of Baytown
Tax Abatement Agreement for Certain Taxable Property
located in the
Port 10 Logistics Reinvestment Zone
THE STATE OF TEXAS §
§
COUNTY OF HARRIS §
This Tax Abatement Agreement ("Agreement") is made and entered into by and between
City of Baytown, Texas ("City"), and Port 10 Inter-nodal, LLC, a Delaware limited liability
company ("Owner"), the owner of taxable property in Harris County, Texas, located in Port 10
Logistics Reinvestment Zone ("Reinvestment Zone").
1
Authorization
This Agreement is authorized by (i) the Texas Property Redevelopment and Tax
Abatement Act, (ii) Resolution No. 2726 of the City Council of the City of Baytown, Texas, and
(iii) Ordinance No. 13,709 of the City Council of the City of Baytown, Texas, providing for the
designation of the Reinvestment Zone.
R
Definitions
For the purpose of this Agreement, the definitions set forth in Resolution No. 2726 of the
City Council of the City of Baytown, Texas, which is attached hereto as Exhibit "A" and
incorporated herein for all intents and purposes (the "Guidelines"), shall govern unless it is
apparent from the context that the term as used herein has a different meaning or unless such word
is specifically defined in this article. All other words shall be given their common, ordinary
meanings, as the context may reasonably suggest.
a. Abatement means the full or partial exemption from ad valorem taxes of certain property
in the Reinvestment Zone designated for economic development purposes.
b. Abatement Period means the period of time commencing January 1, 2024 and ending upon
the sooner of (i) the fifth anniversary of the Effective Date of Abatement or (ii) the
termination of this Agreement pursuant to the provisions of Article VII hereof.
C. Application means the Owner's Application for Tax Abatement in Baytown,Texas,which
is attached hereto as Exhibit "B" and incorporated herein for all intents and purposes.
1065742
d. Base Year Value means the appraised value of the property within the Reinvestment Zone
as certified by the Harris County Appraisal District as of January 1, 2023,plus the agreed-
upon value of eligible property improvements made after such January 1 but before the
execution of the Agreement.
e. Construction Phase means a material and substantial improvement of the property which
represents a separate and distinct construction operation undertaken for the purpose of
erecting the Improvements.
f. Effective Date of Abatement means January 1, 2024.
g. Eligible Property means the buildings, structures, fixed machinery, equipment and process
units, site improvements, and that office space and related fixed improvements necessary
to the operation and administration of the New Facility as hereinafter defined.
h. Improvements means the buildings or portions thereof and other improvements, including
fixed machinery, equipment and process units, used for commercial or industrial purposes
that are erected by the Owner on the property after the execution of this Agreement.
i. Ineligible Property means that property described in Section 2(e) of the Guidelines.
j. New Eligible Property means Eligible Property, the construction of which commences
subsequent to the date of execution of this Agreement. A list of the New Eligible Property
is set forth in the Application. During the Construction Phase of the New Eligible Property,
the Owner may make such change orders to the New Eligible Property as are reasonably
necessary to accomplish its intended use.
k. New Facility has the meaning given to that term in Article VI hereof.
1. Subject Property has the meaning given to that term in Article III hereof.
III
Property
The Reinvestment Zone is an area within Harris County, Texas, more fully described in
Exhibit "C," which is attached hereto and made a part hereof for all intents and purposes. The
property subject to this Agreement(the "Subject Property")is comprised of a tract of land totaling
approximately 25 acres of land, which is located within the Reinvestment Zone (with an account
number to be assigned by Harris County Appraisal District Account) and more fully described in
the Application.
The values hereinafter established for tax year 2023 by the Harris County Appraisal
District, plus $0.00 , representing the agreed-upon value of Improvements made after
2
January 1, 2023, but before the execution of this Agreement, shall be the Base Year Values for
purposes of this Agreement.
IV
Value and Term of Agreement
Abatement on the Improvements shall be pennitted only for the value of New Eligible
Property as defined in Article II of this Agreement and as specifically listed in Exhibit "B." This
Abatement shall be granted effective January 1, 2024 (the "Effective Date of Abatement"). The
portion of New Eligible Property value to be abated shall be in accordance with the following
schedule:
Year Abatement
Percentage
2024 100%
2025 80%
2026 70%
2027 60%
2028 50%
The abated value shall be the value of New Eligible Property,as adjusted each year.
V
Taxability
During the Abatement Period, taxes shall be payable as follows:
(1) The value of Ineligible Property shall be fully taxable;
(2) The Base Year Value of Eligible Property existing prior to the execution of this
Agreement, as the same may be adjusted each year, shall be fully taxable; and
(3) The additional value of New Eligible Property shall be taxable in the manner as
described in Section 2(g) of the Guidelines and in accordance with Article IV of
this Agreement. The estimated value of the New Eligible Property to be abated
pursuant to the Agreement is $24,000,000.
The City shall enter into only one tax abatement agreement for the New Facility described
in this Agreement during the existence of the Reinvestment Zone as designated by Ordinance No.
13,709.
3
VI
Contemplated Improvements
As set forth in the Application,the Owner represents that it will construct a 451,008 square-
foot,rail served distribution/warehouse facility,that it reasonably expects will cost approximately
$24,000,000 which shall be used for commercial or industrial purposes("New Facility").
The New Facility, as well as any other Improvements within the Subject Property,shall
be completed in accordance with all applicable laws, ordinances, rules or regulations, including
the City's zoning ordinance. The Owner herein agrees to construct or cause the New Facility to
be constructed so that the New Facility will comply with the masonry and the articulation and
relief standards specified in Section 3.10 of the Code of Ordinances, Baytown, Texas. The New
Facility is expected to initiate or further the active conduct of a trade or business within the
Reinvestment Zone.
The Owner further agrees that construction of the Improvements will begin on or after
December 1, 2022,with completion on or before December 31, 2023.
Vil
Employment
It is contemplated that this construction project will result in the creation of five (5)jobs
and approximately fifty(50) construction jobs during the Construction Phase of the New Facility.
The project is not expected solely to transfer, or primarily have the effect of transferring,
employment from one part of the City of Baytown to another.
The Owner, on or before March 1 st of each year of this Agreement, shall submit to the
Harris County Appraisal District and the City a January employee count for the New Facility which
corresponds to the employment count reported in the Owner's Employer's Quarterly Report to the
Texas Workforce Commission. The Owner shall also on or before March 1 st of each year submit
a separate notarized letter certifying the number of jobs created or retained as a direct result of the
abated improvernents and the number of employees in other facilities located within the City.
These submissions shall be used to determine abatement eligibility for that year and shall be
subject to audit if requested by the City. The Owner's failure to submit the counts and notarized
letter shall result in the ineligibility to receive an abatement for that year and the termination of
the tax abatement agreement and any abated taxes subject to recapture pursuant to Article VilI.
Vlll
Event of Default
A. In the event the New Facility is completed and begins operations as a service and
distribution facility, but subsequently discontinues such operations for any reason
excepting fire,explosion or other casualty,accident or natural disaster,for a period of one-
4
year during the Abatement Period, then this Agreement shall be automatically terminated.
In the event of termination pursuant to the provisions of this paragraph, the Abatement of
taxes and payments for the calendar year during which the New Facility discontinues
operations shall terminate,but there shall be no recapture of prior years'taxes and payments
abated by virtue of this Agreement. The taxes and payments otherwise abated for the
calendar year during which the New Facility no longer produces shall be paid to the City
prior to the delinquency date for such year or within sixty (60) days from the date of
termination, whichever occurs first. The Owner shall notify the City at the address in
Article XI within ten (10) days of any discontinuation, stating the reasons for the
discontinuation and the projected length of the discontinuation. Should Owner fail to
comply with this subsection,this Agreement shall be terminated immediately and all taxes
previously abated by virtue of this Agreement shall be recaptured and paid within sixty
(60)days of the termination. Any and all recaptured taxes not paid within the 60-day period
prescribed hereinabove shall accrue interest and penalties as set forth in Section B of this
Article.
B. If the Owner is in default of any term or condition of this Agreement or of the Guidelines
during the Abatement Period covered by this Agreement, the Owner must notify the City
in writing at the address stated in Article XI hereof within ten (10) days from the default
and cure such default within sixty(60)days from the date of such default("Cure Period").
If the City determines that Owner has failed to comply with this subsection,the Agreement
shall be terminated immediately and all taxes previously abated by virtue of the Agreement
may be recaptured together with interest at 6% per annum calculated from the effective
date of the Agreement and paid within sixty(60)days of the termination. if the City does
not receive full payment within said sixty(60) days, a penalty of 15% of the total amount
abated shall be added.
C. In the event that Owner(i)allows its ad valorem taxes owed the City to become delinquent
and fails to timely and properly to follow the legal procedures for their protest and/or
contest or(ii) violates any of the terms and conditions of this Agreement and fails to cure
during the Cure Period,this Agreement will terminate automatically with no further notice
to the Owner or opportunity to cure the default being necessary. If this Agreement is
terminated, all taxes previously abated by virtue of this Agreement will be recaptured and
paid within sixty(60)days of the termination, and penalties and interest shall be assessed
as set forth in Section B of this Article.
IX
Administration
This Agreement shall be administered on behalf of the City by the City Manager or his
designee pursuant to the direction of the City Council. The Owner shall allow employees and/or
representatives of the City who have been designated by the City Manager to have access to the
New Facility during the tern of this Agreement to inspect the New Facility to determine
compliance with the terms and conditions of this Agreement. All inspections required herein will
be made only after giving of twenty-four (24) hours' prior notice and will only be conducted in
5
such manner as will not unreasonably interfere with the constriction and/or operation of the New
Facility. All inspections required herein will be made with one or more representatives of the
Owner and in accordance with the Owner's safety standards.
Upon completion of the contemplated construction,the City Manager or his designee shall
annually evaluate the New Facility to ensure compliance with the terms and provisions of this
Agreement and shall report possible defaults to the City Council and the City Attorney.
The Chief Appraiser of the Harris County Appraisal District shall annually determine (i)
the taxable value after giving effect to the terms of this Agreement of the real and personal property
located on the Subject Property and (ii) the full taxable value without Abatement of the real and
personal property located on the Subject Property. The Chief Appraiser shall record both the
abated taxable value and the full taxable value in the appraisal records. The full taxable value
figure listed in the appraisal records shall be used to compute the amount of abated taxes that are
required to be recaptured and paid in the event this Agreement is terminated in a manner that
results in recapture. Each year the Owner shall furnish the Chief Appraiser with such information
outlined in Chapter 22 of the Texas Tax Code, as may be necessary for the administration of the
Abatement specified herein.
The Owner must certify annually to the governing body of each taxing unit with taxing
jurisdiction over the Property that the Owner is in compliance with each applicable term of this
Agrccmcnt.
X
Assignment
The Owner may assign its rights and obligations under this Agreement to a new owner of
the New Facility with the prior written consent of the City Council, which consent shall not be
unreasonably withheld. Any assignment shall provide that the assignee shall irrevocably and
unconditionally assume all the duties and obligations of the assignor upon the same terms and
conditions as set out in this Agreement. Any assignment of this Agreement shall be to an entity
that contemplates the same Improvements to the property,except to the extent such Improvements
have been completed. No assignment shall be approved if the assignor or the assignee is indebted
to the City for delinquent ad valorem taxes or other obligations.
XI
Notice
Any notice required to be given under the provisions of this Agreement shall be in writing
and shall be duly served when (i) it is personally delivered or (ii) it is deposited, enclosed in a
wrapper with the proper postage prepaid thereon, and duly registered or certified, return receipt
requested, in a United States post office, addressed to the City or the Owner,as appropriate, at the
following addresses. If mailed, any notice or communication shall be deerned to be received three
6
days after the date of deposit in the United States mail. Unless otherwise provided in this
Agreement, all notices shall be delivered to the following addresses:
Owner: Port 10 Intenmodal, LLC
1885 S. James Place, Suite 1 100
Houston, Texas 77056
Attention: Alan D. Feinsilver
City: City of Baytown
P. O. Box 424
Baytown, Texas 77522-0424
Attention: City Manager
Either party may designate a different address by giving the other party ten (10) days'
written notice.
XII
Non-Waiver
Failure of the City to insist on the strict performance of any of the agreements herein or to
exercise any rights or remedies accruing thereunder upon default or failure of performance shall
not be considered a waiver of the right to insist on,and to enforce by an appropriate remedy, strict
compliance with any other obligation hereunder to exercise any right or remedy occurring as a
result of any future default or failure of performance.
XIII
Venue
This Agreement shall in all respects be interpreted and construed in accordance with and
governed by the laws of the State of Texas,regardless of the place of its execution or performance.
The place of making and the place of performance for all purposes shall be Baytown, Hams
County, Texas.
XIV
Severability
All parties agree that should any provision of this Agreement be determined to be invalid
or unenforceable,such determination shall not affect any other term of this Agreement,which shall
continue in full force and effect.
7
XV
Date of Agreement; Condition to Effectiveness
The City executes this Agreement by and through the City Manager, acting pursuant to
Ordinance No. of the City of Baytown, and this Agreement shall become effective on the
date this Agreement is signed by the City Manager.
This Agreement has been executed by the parties in multiple originals, each having full
force and effect.
CITY OF BAYTOWN
RICHARD L. DAVIS,City Manager
ATTEST:
ANGELA JACKSON, City Clerk
APPROVED AS TO FORM:
SCOTT LEMOND, City Attorney
8
PORT 10 INTERMODAL,LLC,a
Delaware limited liability company
c6aw
(Signature)
1-AsJ t> I �7 Lv�r•>n-
(Printed Name)
(Title)
ATTEST:
(Signature)
(Printed Name)
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(Title)
R:\Karen Anderson\CONTRACTS\2022Tort 10 Intermodal Tax Abatement Agreement(Bldg 3)docx
9
EXHIBIT "A"
RESOLUTION NO. 2,726
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
ELECTING TO BECOME ELIGIBLE TO PARTICIPATE IN TAX ABATEMENT
PURSUANT TO THE PROPERTY REDEVELOPMENT AND TAX ABATEMENT
ACT; ADOPTING GUIDELINES AND CRITERIA FOR GRANTING TAX
ABATEMENTS IN A REINVESTMENT ZONE CREATED IN HARRIS COUNTY OR
CHAMBERS COUNTY; ADOPTING SUCH GUIDELINES AND CRITERIA; AND
PROVIDING FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, the creation and retention of job opportunities that bring new wealth is the highest
civic priority; and
WHEREAS, new jobs and investment will benefit the area economy, provide needed
opportunities,strengthen the real estate market and generate tax revenue to support local services, and
WHEREAS, the City of Baytown must compete with other localities across the nation currently
offering tax inducements to attract jobs and investments; and
WHEREAS, any tax incentives offered in the City of Baytown would reduce needed tax revenue
unless strictly limited in application to those new and existing industries that bring new wealth to the
community;and
WHEREAS, any tax incentives should not have a substantial adverse effect on the competitive
position of existing companies operating in the City of Baytown; and
WHEREAS, tax incentives should not be used to attract those industries that have demonstrated a
lack of commitment to protecting our environment, but should be used to encourage projects designed to
protect our environment; and
WHEREAS, the abatement of property taxes, when offered to attract primary jobs in industries
which bring in money from outside a community instead of merely recirculating dollars within a
community, has been shown to be an effective method of enhancing and diversifying an area's economy;
and
WHEREAS, Texas law requires any eligible taxing jurisdiction to establish Guidelines and
Criteria as to eligibility for tax abatement agreements prior to granting any tax abatement, said Guidelines
and Criteria to be unchanged for a two-year period unless amended by a three-quarters vote; and
WHEREAS, to assure a common, coordinated effort to promote our communities' economic
development, any such guidelines and criteria should be adopted only through the cooperation of affected
school districts,counties,and the City of Baytown;and
WHEREAS, the attached guidelines have been reviewed by the City Council and it has
determined that progress towards the goals therein stated has been made; NOW THEREFORE,
BE 1T RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section 1: That the findings of the City Council of the City of Baytown contained in the
recitals of this resolution are hereby approved and adopted.
Section 2: That the City Council of the City of Baytown elects to become eligible to
participate in tax abatement pursuant to the Property Redevelopment and Tax Abatement Act.
Section 3: That the City of Baytown hereby adopts the Guidelines and Criteria for granting
tax abatements in a reinvestment zone, which are attached hereto as Exhibit "A" and incorporated herein
for all intents and purposes.
Section 4: That the City Council hereby declares that adoption of the Guidelines
and Criteria adopted in Section 3 hereof does not:
a. limit its discretion to decide whether to enter into a specific tax abatement agreement;
b. limit its discretion to delegate to its employees the authority to determine whether or not
the governing body should consider a particular application or request for tax abatement;
or
C. create any property, contract, or other legal right in any person to have it consider or
grant a specific application or request for tax abatement.
Section 5: This resolution shall take effect immediately from and after its passage by the
City Council of the City of Baytown.
INTRODUCED, READ and PASSED by the e of the City Council of the City of
Baytown this the 27"'clay of May, 2021.
BXA06M CAP ILLO, Ma or
ATTEST:
LANGELSIN LJACKSON, Interim City Cie '
APPROVED AS TO D011M: ;�"9j►
1� a
KAREN L. I IORN ER, City Attorney
R Karen Homo Documents Ftics City CounciMesolutim0202I Nay 27,TaxAbatemcntGuidelines202I dot:
2
Exhibit "A"
TAX ABATEMENT GUIDELINES SUMMARY
OBJECTIVES Primary job creation --target industries.
Encourage LEEDO development.
Amount of abatement--minimum to be competitive.
Fair to taxing jurisdictions-- It is a local option.
Fair to existing business-- modernization, expansion.
Regional cooperation --similar abatements.
Flexibility-- toughly enforced variance procedure.
TERMS Year 1 100%
Year 2 80%
Year 3 70%
Year 4 60%
Year 5 50%
Year 6 0%
FACILITIES Manufacturing.
THAT QUALIFY Service & Distribution.
LEEDO Certified Office Building.
Regional Entertainment.
Research and Development.
Other Basic Industry.
Class "A" Office.
AUTHORIZED New facilities.
INVESTMENTS Expansion.
Modernization.
ABATED Buildings and structure.
Fixed machinery and equipment.
Site improvements.
Office space to administer plant.
NOT ABATED Land.
Existing improvements.
Construction-in-progress.
Personal property.
Hotels.
Housing.
Pipelines.
Gas and fluid storage.
Electrical generating facilities.
Deferred maintenance.
Property with useful life less than fifteen(15)years.
ECONOMIC Minimum $5,000,000 investment.
CRITERIA Maximum $100,000,000 investment.
Retain or create at least five(5)jobs.
No serious adverse effect on jurisdictions.
Tax Abatement Guidelines Summary,Page Solo
GUIDELINES AND CRITERIA
FOR REINVESTMENT ZONES
SECTION 1
DEFINITIONS
(a) "Abatement" means the full or partial exemption from ad valorem taxes of certain real
property in a reinvestment zone designated for economic development purposes.
(b) "Agreement" means a contractual agreement between a property owner and/or lessee and
an eligible jurisdiction for the purposes of tax abatement.
(c) 'Base Year Value" means the assessed value of eligible property January 1 preceding the
execution of the Agreement plus the agreed upon value of eligible property improvements
made after January 1 but before the execution of the Agreement, or the sales price, if the
property was conveyed subsequent to January I, plus the agreed upon value of eligible
property improvements made after January 1, whichever is greater.
(d) "Class A Office" is characterized as buildings that have excellent location and access,
attract high-quality tenants, and arc managed professionally. Building materials are high
quality and rents are competitive with other new buildings. Examples are the office
buildings that are found in the heart of the business or financial district with lots of brass
and glass fixtures and huge, expensive lobbies; and they are usually steel-framed and
tall. They are often occupied by banks, law firms, investment banking companies, and
other high-profile companies.
(c) "Deferred Maintenance"means an improvement necessary for continued operations which
do not improve productivity or alter the process technology.
(f) "Distribution Center Facility" means buildings and structures, including fixed machinery
and equipment, used or to be used primarily to receive, store, service or distribute goods
or materials owned by the facility operator.
(g) "Economic Life" means the number of years a property improvement is expected to be in
service in a facility.
(h) "Eligible Jurisdiction" means any county, municipality, school district or college district
that levies ad valorem taxes upon and provides services to property located within the
proposed or existing reinvestment zone.
(i) "Expansion" means the addition of buildings,structures, fixed machinery or equipment for
purposes of increasing production capacity.
(j) "Facility" means property improvements completed or in the process of construction which
together comprise an integral whole.
Guidelines and Criteria for Reinvestment Zones,Page l
(k) "LEEDO" means Leadership in Energy and Environmental Design (LEED(g), which
encourages the use of certifiable systems,materials and practices designed to reduce energy
consumption and utilize recycled material.
(1) "Manufacturing Facility" means buildings and structures, including fixed machinery and
equipment, the primary purpose of which is or will be the manufacture of tangible goods
or materials or the processing of such goods or materials by physical or chemical change.
(m) "Modernization" means the replacement and upgrading of existing facilities which
increases the productive input or output, updates the technology or substantially lowers the
unit cost of the operation. Modernization may result from the construction, alteration or
installation of buildings, structures, fixed machinery or equipment. It shall not be for the
purpose of reconditioning, refurbishing or repairing.
(n) "New Facility" means a property previously undeveloped which is placed into service by
means other than or in conjunction with expansion or Modernization.
(o) "Other Basic Industry" means buildings and structures, including fixed machinery and
equipment not elsewhere described, used or to be used for the production of products or
services which primarily serve as a market outside the I-Iouston Consolidated Metropolitan
Statistical Area and result in the creation of new, permanent jobs and bring in new wealth.
(p) "Regional Entertainment Facility" means buildings and structures, including fixed
machinery and equipment, used or to be used to provide entertainment through the
admission of the general public.
(q) "Research Facility" means buildings and structures, including fixed machinery and
equipment, used or to be used primarily for research or experimentation to improve or
develop new tangible goods or materials or to improve or develop the production processes
thereto.
(r) "Service Facility" means buildings and structures, including fixed machinery and
equipment, used or to be used to service goods.
SECTION 2
ABATEMENT AUTHORIZED
(a) Aiilhori_ed Facility. A facility may be eligible for abatement if it is a Manufacturing
Facility, Research Facility, Distribution Center Facility, Class A Office, Service Facility,
Regional Entertainment Facility, Research and Development Facility,or LEEDO certified
office building.
(b) Creation gffew Value. Abatement may only be granted for:
Guidelines and Criteria for Reinvestment Zones,Page 2
I. the additional value of eligible property improvements made subsequent to
and listed in an abatement agreement between the City of Baytown and the
property owner and lessee(if required), or
2. the marginal costs to secure LEED is certification for the building,
subject to such limitations as City Council and the property tax code may require.
(c) New tint/Existing Facilities. Abatement may be granted for new facilities and
improvements to existing facilities for purposes of modernization or expansion.
(d) Eligible Property. Abatement may be extended to the value of buildings, structures, fixed
machinery and equipment, site improvements plus that office space and related fixed
improvements necessary to the operation and administration of the facility or LEED
certified building. The value of all property shall be the appraised value for each year, as
Finally determined by the applicable appraisal district.
(e) Ineligible Properly. The following types of property shall be fully taxable and ineligible
for abatement: land; inventories; supplies; tools; furnishings; and other forms of movable
personal property; vehicles; vessels; aircraft; housing; hotel accommodations; deferred
maintenance investments; property to be rented or leased except as provided in Section 2
(f); improvements for the generation or transmission of electrical energy not wholly
consumed by a new facility or expansion; any improvements, including those to produce,
store or distribute natural gas, fluids or gases, which arc not integral to the operation of the
facility; property which has an economic life of less than fifteen (15) years; and property
owned or used by the State of Texas or its political subdivisions or by any organization
owned,operated or directed by a political subdivision of the State of Texas,or any property
exempted by local, state or federal law. When such exempted property includes
manufacturing machinery and equipment listed in the Investment Schedule (as required in
Section 3(b)),then the value of such property may not be included toward the achievement
of the investment or valuation thresholds set out in the abatement agreement.
(f) Owned/Leased Facilities•. If a leased facility is granted abatement, the agreement shall be
executed with the lessor and the lessee.
(g) Value and Term of Abatemenl. Abatement shall be granted effective with the January I
valuation date immediately preceding the date of execution of the agreement. One hundred
percent (100%) of the value of new eligible properties shall be abated for the first year,
followed by eighty percent(80%)abatement for the second year, seventy percent(70%)in
the third year; sixty percent (60%) abatement for the fourth year and fifty percent (50%)
for the fifth year. In no case shall the period of abatement exceed five(5)years.
If a Modernization project includes facility replacement,the abated value shall be the value
of the new unit(s) less the value of the old unit(s).
Guidelines and Criteria for Reinvestment Zones.Page 3
(h) Economic Qualification. In order to be eligible for designation as a reinvestment zone and
receive tax abatement,the planned improvement:
(1) must be reasonably expected to increase the appraised value of the property in the
amount of five million dollars ($5,000,000) after the period of abatement has
expired;
(2) must be reasonably expected to increase the appraised value of the property by not
more than one hundred million dollars($100,000,000)after the period of abatement
has expired;
(3) must be expected to directly create or prevent the loss of permanent full-time
employment, retain or create employment for at least five (5) people reasonably
required in order to operate the facility in an efficient manner, provided that this
employment qualification shall be satisfied on January I of the fourth year of the
abatement agreement and continue through the tern of the abatement;
(4) must not be expected to solely or primarily have the effect of transferring
employment from one part of the City of Baytown to another. Competitive siting
analysis may satisfy this requirement; and
(5) must be necessary because capacity cannot be provided efficiently utilizing existing
improved property when reasonable allowance is made for necessary
improvements.
(i) Taxability. From the execution of the abatement to the end of the agreement period,
taxes shall be payable as follows:
(1) The value of ineligible property as provided in Section 2(e) shall be fully taxable.
(2) The base year value of existing eligible property as determined each year shall be
fully taxable.
(3) The additional value of new eligible property shall be taxable in the manner
described in Section 2(g).
SECTION 3
APPLICATION
(a) Any present or potential owner of taxable property in the City of Baytown may request the
creation of a reinvestment zone or tax abatement by filing a written request with the City
of Baytown.
(b) The application shall consist of a completed application form accompanied by a general
description of the new improvements to be undertaken; a descriptive list of the
Guidelines and Criteria for Reinvestment Zones. Page 4
improvements for which an abatement is requested; a list of the kind, number and location
of all proposed improvements of the property, including the economic life of each and its
eligibility for a TCEQ exemption (if known); a map and legal description of the property;
and a time schedule for undertaking and completing the proposed improvements. The
applicant shall also include information pertaining to the reasons the abatement is
necessary in order to have the project undertaken in the City of Baytown. The applicant
shall also include a certification of the current number of permanent full-time, part-time
and contract employees of the applicant, by category, employed in the City of Baytown at
the time of the application. In the event the project is to be located in a leased facility,the
applicant shall provide with the application the name and address of the lessor and a copy
of the lease, if executed, or option contract. In the case of Modernization, a statement of
assessed value of the facility,separately stated for real and personal property,shall be given
for the tax year immediately preceding the application. The application form may require
such financial and other information as the City Council deems appropriate for evaluating
the financial capacity and other factors of the applicant.
(c) Upon receipt of a completed application, the City Manager of the City of Baytown or his
designee shall notify in writing the presiding officer of the governing body of each eligible
jurisdiction.
(d) After receipt of an application for creation of a reinvestment zone and application for tax
abatement, the City Council, through its designated officer or employee, shall determine
whether the application qualifies for an abatement under the terms of these guidelines and
criteria. Such determination may be delegated to an employee or City department. If it is
determined that an application qualifies for abatement, it shall be recommended to the City
Council that the applicant be notified in writing that subject to a public hearing, if
applicable, and approval of a contract by the City Council, the project qualifies for
abatement.
(e) The City Council shall not establish a reinvestment zone or enter into an abatement
agreement if it finds that the request of the abatement was filed after the commencement
of earthwork, site preparation, construction, alteration, or installation of improvements
related to a proposed Modernization, expansion or new facility.
(f) Requests for variance from the provisions of Subsections(a), (e)and (g) of Section 2 may
be made in written form to the City Manager, provided, however, the total duration of an
abatement shall in no instance exceed five(5)years. Such request shall include a complete
description of the circumstances explaining why the applicant should be granted a variance.
Approval of a request for variance requires a three-fourths(3/4) vote of the City Council.
SECTION 4
PUBLIC HEARING AND APPROVAL
(a) The City Council may not adopt an ordinance designating a reinvestment zone until it has
held a public hearing and has found that the improvements sought are feasible and practical
Guidelines and Criteria for Reinvestment Zones,Page 5
and would be a benefit to the land to be included within the zone and to the City after
expiration of a tax abatement agreement. At the public hearing, interested persons are
entitled to speak and present evidence for or against the designation. Not later than the
seventh(71h)day before the date of the hearing, notice of the hearing must be published in
a newspaper having general circulation in the City;and delivered in writing to the presiding
officer of the governing body of each taxing unit that includes in its boundaries real
property that is to be included in the proposed reinvestment zone.
(b) The City Council must give notice of a meeting at which it will consider the approval of a
tax abatement agreement in a manner required by the Texas Open Meetings Act, except
that the notice must be provided at least thirty (30) days before the scheduled time of the
meeting. Such notice must contain the following:
(1) the name of the property owner and the name of the applicant for the tax abatement
agreement;
(2) the name and location of the reinvestment zone in which the property subject to the
agreement is located;
(3) a general description of the nature of the improvements or repairs included in the
agreement; and
(4) the estimated cost of the improvements or repairs.
(c) Prior to entering into a tax abatement agreement, the City Council may, at its own option,
hold a public hearing at which interested persons shall be entitled to speak and present
written materials for or against the approval of the tax abatement agreement.
(d) In order to enter into a tax abatement agreement,the City Council must find that the terms
of the proposed agreement meet these Guidelines and Criteria and that:
(1) there will be no substantial adverse effect on the provision of the jurisdiction's
service or tax base;and
(2) the planned use of the property will not constitute a hazard to public safety,health
or morals.
(e) Any applicant requesting a variance under Section 3(f) shall be approved by a vote of at
least three-fourths (3/4) of the City Council. No application which deviates from the
requirements of these Guidelines and Criteria shall be approved unless accompanied by a
request for variance as provided under Section 3(f).
Guidelines and Criteria for Reinvestment Zones,Page 6
SECTION 5
AGREEMENT
After approval,the City Council shall formally pass an ordinance and execute an agreement
with the owner of the facility and lessee as required which shall include:
(1) masonry and architectural articulation and relief standards specified in Section 3.10
of the Code of Ordinances, Baytown,Texas;
(2) the estimated value to be abated and the base year value;
(3) the percent of value to be abated each year as provided in Section 2(g);
(4) the commencement date and the termination date of abatement;
(5) the proposed use of the facility,nature of construction,time schedule,map property
description and improvement list as provided in Application Section 3(b);
(6) the contractual obligations in the event of default, violation of terms or conditions,
delinquent taxes,recapture, administration and assignment as provided in Sections
2,6, 7 and 8,or other provisions that may be required for uniformity or compliance
with state law;
(7) the amount of investment, increase in assessed value and the average number of
jobs involved as provided in Section 2(h)(3); and
(8) a requirement that the applicant annually submit to the appraisal district and the
City, a January employee count for the abated facility which corresponds to
employment counts reported in the facility's Employer's Quarterly Report to the
Texas Workforce Commission, and a separate notarized letter certifying the
number of jobs created or retained as a direct result of the abated improvements
and the number of employees in other facilities located within the City of Baytown.
Submission shall be used to determine abatement eligibility for that year and shall
be subject to audit if requested by the governing body. Failure to submit may result
in the ineligibility to receive an abatement for that year and the termination of the
tax abatement agreement and subject any abated taxes to recapture pursuant to
Section 6 hereof.
Such agreement normally shall be executed within sixty (60) days after the application and all
necessary information and documentation have been forwarded to the City Council.
Guidelines and Criteria for Reinvestment Zones, Page 7
SECTION 6
RECAPTURE
(a) In the event that the facility is completed and begins producing product or service, but
subsequently discontinues producing product or service for any reason excepting fire,
explosion or other casualty or accident or natural disaster of a period of one year during
the abatement period,the agreement shall terminate,and so shall the abatement of the taxes
for the calendar year during which the facility no longer produces. The taxes otherwise
abated for that calendar year shall be paid to the City of Baytown within sixty (60) days
from the date of termination. The company or individual shall notify the City in writing at
the address stated in the agreement within ten (10) days from any discontinuation, stating
the reason for the discontinuation and the projected length of the discontinuation. If the
City determines that this subsection has not been complied with, the agreement may be
terminated immediately,and all taxes previously abated by virtue of the agreement may be
recaptured and paid within sixty(60) days of the termination.
(b) If the company or individual is in default according to the terms and conditions of its
agreement, the company or individual shall notify the City in writing at the address stated
in the agreement within ten (10) days from the default and cure such default within sixty
(60) days from the date of such default ("Cure Period"). If the City determines that this
subsection has not been complied with,the agreement may be terminated immediately and
all taxes previously abated by virtue of the agreement may be recaptured, together with
interest at 6% per annum calculated from the effective date of the agreement and paid
within sixty (60) days of the termination. If the City does not receive full payment within
said sixty (60)days,a penalty may be added equal to 15% of the total amount abated.
(c) If the company or individual (1)allows its ad valorem taxes owed the City of Baytown to
become delinquent and fails to timely and properly follow the legal procedures for their
protest and/or contest; or (2) violates any of the terms and conditions of the abatement
agreement and fails to cure during the Cure Period,the agreement then may be terminated,
and all taxes previously abated by virtue of the agreement will be recaptured and paid
within sixty(60)days of the termination, and penalties and interest may be assessed as set
out in Section 6(b).
SECTION 7
ADMINISTRATION
(a) The Chief Appraiser of the applicable appraisal district shall annually determine an
assessment of the real and personal property comprising the reinvestment zone. Each year,
the company or individual receiving the abatement shall furnish the assessor with such
information as may be necessary for the abatement. Once value has been established, the
Chief Appraiser shall notify the affected jurisdictions which levy taxes on the amount of
the assessment.
Guidelines and Criteria for Reinvestment Zones,Page 8
(b) The agreement shall stipulate that employees and/or designated representatives of the City
of Baytown will have access to the reinvestment zone during the term of the abatement to
inspect the facility to determine if the terms and conditions of the agreement arc being met.
All inspections will be made only after the giving of twenty-four (24) hours' prior notice
and will only be conducted in such manner as to not unreasonably interfere with the
construction and/or operation of the facility. All inspections will be made with one or more
representatives of the company or individual and in accordance with the facility's safety
standard.
(c) The City shall evaluate annually each facility receiving abatement to ensure compliance
with the agreement and report possible violations of the contract and agreement to the City
Council.
SECTION 8
ASSIGNMENT
Tax abatement agreements may be assigned to a new owner or lessee of facility with the
written consent of the City Council, which consent shall not be unreasonably withheld. Any
assignment shall provide that the assignee shall irrevocably and unconditionally assume all the
duties and obligations of the assignor upon the same terms and conditions as set out in the
agreement. Any assignment of a tax abatement agreement shall be to an entity that contemplated
the same improvements or repairs to the property, except to the extent such improvements or
repairs have been completed. No assignment shall be approved if the assignor or the assignee is
indebted to the City of Baytown for ad valorem taxes or other obligations.
SECTION 9
SUNSET PROVISION
These Guidelines and Criteria are effective May 27,2021,and will remain in force through
May 26, 2023, at which time all reinvestment zones and tax abatement contracts created pursuant
to these provisions will be reviewed by the City to determine whether the goals have been
achieved. Based on that review, the Guidelines and Criteria will be modified, renewed or
eliminated.
W.Karen Ilumcr Documents Files Community De%clopmem'rax Abatement Guidelines(iu3deltnes4'1'axAbatementNRcinvesunent%onc202I doe
Guidelines and Criteria for Reinvestment Zones,Page 9
EXHIBIT "B"
PONTIKES
DEVELOPMENT
October 17,2022
Mr. Rick Davis
City Manager
City of Baytown
2401 Market Street
Baytown,TX 77520
RE: Application for Tax Abatement on behalf of Port 10 Intermodal,LLC as owner of Port 10 Logistics
Center
Dear Mr. Davis,
Port 10 Intermodal, LLC("Owner")is pleased to submit this formal request to the City of Baytown for
consideration of available tax abatement for the fifth building on our project at 2300 East Freeway in
Baytown, TX(the"Port 10 Project"). As previously reported,the Port 10 Project will be constructed in
phases,and the Owner will submit subsequent tax abatement requests as additional qualifying buildings
are planned. Consistent with this fifth request,we have prepared and completed the attached Application
for Tax Abatement in Baytown,TX as per the Baytown Reinvestment Zone Guidelines. We have also
attached a site plan of the Port 10 Project,on which the subject building of this request is labeled as
Building 3.
Pontikes Development,as the development manager for the Owner,has been performing due diligence
and property development preparation in coordination with a number of organizations including the City
of Baytown. Pontikes Development is an affiliate of Satterfield and Pontikes Construction,Inc.,one of
the largest general contractors in the State of Texas. Pontikes Development has developed real estate
projects including industrial,office,and multifamily throughout Texas. The Developer has hired a
nationally recognized real estate firm,Jones Lang LaSalle,to market this high quality industrial park to
high quality tenants. The Port 10 Project is anticipated to bring substantial tax base and jobs to the City
of Baytown; however,the high overlapping tax rate has proven to be detrimental in marketing the Port 10
Project. In our marketing efforts and outreach to consultants specializing in our target tenant's real estate
decisions,we have concluded the prevailing tax rates will preclude many tenants from our development.
This is due to the occupancy costs associated with such prevailing tax rates when compared with
developments in other jurisdictions primarily in Harris,Montgomery,and Fort Bend counties. Therefore
our request for tax relief form the City is critical to the successful development of the Port 10 Project.
The Project and Benefits
The City should receive substantial tax revenues as this site is revitalized through the proposed tax
abatements. Port 10 Logistics Center is planned to be a multimodal 2 to 3 million square foot industrial
park located near Thompson Road and I-10 within the city limits of Baytown. The timeline for the
remaining development is projected to be built over the next 2-3 years. We plan to develop
approximately 1,000,000 square feet of distribution/warehouse space of which over 850,000 square feet
has already been constructed. We also plan to develop 1 to 2 million square feet of rail-served
distribution/warehouse space adjacent to the Union Pacific Coady Rail Yard. Completed in January,
2019,the first building,Building 1,is 294,323 square feet and is currently 100% leased. Building 7 is
125,906 square feet and was completed in December,2019 and is 100% leased. Recently completed
Building 2 is 337,000 square feet and 100%leased to Fedex Ground Services. Building 8 is 102,814
square feet and is almost complete and is generating a lot of interest from prospective tenants.
Our fifth building,to be constructed Building 3,will be an approximately 451,008 square foot rail served
distribution/warehouse facility. Construction is anticipated to start in the fourth quarter 2022 or first
quarter of 2023 and is scheduled to be completed in the fourth quarter, 2023.
The seven buildings currently planned for the park consist entirely of institutional grade industrial
buildings with steel-reinforced concrete construction tilt-walls,high grade structural steel supporting
components,and 28'-40' clear heights with TPO roof systems. These types of buildings are built to last
through multiple generations of tenancy and will also attract desirable blue chip tenants to Baytown.
Further,the capital investment of approximately$200 million will provide for a future tax base for the
City of Baytown and the project should provide continued momentum for other capital investment in
Baytown.
In addition to the increased tax base,the City should also benefit from increased jobs attributable to the
Port 10 Project. We anticipate the creation of at least 40 FTE's when fully developed of which 5 FTE's
will be attributable to Building 3. Temporary construction jobs for Building 3 will be up to 50 full time
employees.
Site Selection
While the City is a prime site for industrial development,the Port 10 Project is located within the City
limits and Harris County. Similar developments in the surrounding environs are located within the City's
ETJ and have not been annexed and receive the benefits of an industrial district agreement with
corresponding tax relief. In addition,similar projects are located within Chambers County and are
eligible to receive tax abatement from Chambers County. We do not expect this project would qualify for
tax abatement from Harris County. The Port 10 Project also does not meet the qualifications to be
eligible for a Chapter 313 abatement from Goose Creek ISD. In order to make this site competitive from
a tax rate standpoint to blue chip tenants and attract employers to the area,the Owner is requesting an
abatement per the terms below.
Abatement Request
As the Owner intends to meet the economic criteria of the City's tax abatement guidelines and add
significant value to the City,the Owner is requesting abatement per the City's terms in its guidelines for
Building 3 on the attached site plan. As stated above,the potential availability of tax relief is an
important component to the Owner's marketing efforts. It is the intent of the Owner to request identical
abatements on subsequent eligible and qualifying buildings as the remaining buildings begin construction.
We would also request the Abatement Period as defined in the Guidelines Summary begin January 1,
2024,the first full tax year following the issuance of a Certificate of Occupancy from the City of
Baytown in order to best incentivize the project by providing the full incentive to prospective employers
who will be occupying the facility.
Should you or your team have any questions,please don't hesitate to contact me via email at
A&Lnsiver@pontikesd§Y.com or via telephone at(713)266-1101.
Sincerely,
PORT 10 INTERMODAL, LLC
Alan D. Feinsilver
President
CC: Mr. B.J. Simon
Page 1
APPLICATION FOR TAX ABATEMENT IN BAYTOWN, TEXAS
The filing of this document acknowledges familiarity and conformance with Guidelines
and Criteria for Reinvestment Zones. This application will become part of the agreement
and any knowingly false representations will be grounds to void the agreement. An
original copy of this request should be submitted to City Manager, P.O. Box 424,
Baytown, Texas 77522-0424, if property is located inside the corporate limits of Baytown.
APPLICANT INFORMATION Date: October 17, 2022
Company Name: Port 10 Intermodal, LLC
Address: 1885 Saint James Place, Suite 1100
City: Houston State: TX Zip Code: 77056
Corporation: ® Partnership: ❑ Proprietorship: ❑
PROJECT INFORMATION
Type of Facility
See Guidelines ❑ Manufacturing
❑ Class "A" Office Space
❑ LEED®Certified Office Building
❑ Research & Development
® Service & Distribution
❑ Regional Entertainment& Recreation
❑ Other Basic Industry
Proposed Project Location Address and Legal Description:2300 East Freeway
Attach map showing proposed site.
Jurisdictions:
School District Goose Creek ISD
College District Lee College
City or Town Baytown
Describe Product or Service:
Page 2
Project Description:
Attach statement fully explaining project, describe existing site and improvements and
provide list of improvements and fixed machinery and equipment for which abatement is
requested (Refer to Guidelines, Section 3).
® NEW PLANT ❑ EXPANSION [-]MODERNIZATION
See attacheu description of the planned industrial park. Improvements to include 8
institutional grade industrial buildings; this application to include the construction of one
building of approximately 294,323 square feet for distribution/warehouse purposes.
ECONOMIC INFORMATION
Construction Estimates:
Start Month/Year: 1/2023 Construction Man Years: 15
Completion Date: 12/2023 Peak Construction Jobs: 50
If Modernization:
Estimated Economic Life of Existing Plant: Years
Added Economic Life from Modernization: Years
Permanent Emplovment Estimates (PEE'S)
Current Plant Employment: 0
Number of Plant Jobs: ❑ Retained or ® Created
At start/opening: 5 in year: 5
5 years into operation: 5 in year: 5
Estimated Appraised Value on Site
Personal Improvements Land
Value January 1 Preceding 0 0 1,996,000
Abatement Agreement:
Est. Value of Improvements: 24,000,000
Est. Value of Abated Properties 24,000,000
After Abatement Expires:
Page 3
Value upon Completion of
Project Personal Property and
Project Improvements Not Subject
To Abatement: 0 1,996,000
VARIANCE
Is the applicant seeking a variance under Section 3 (f) of the guidelines? ❑ YES
NO
If"YES", attach required supplementary information.
OTHER ABATEMENTS. Has company made application for abatement of this project
by another taxing jurisdiction or nearby counties? ❑YES ®NO. If "YES" please provide
dates of application, hearing dates if held or scheduled, name of jurisdictions and
contacts, and letter of intent.
COMPANY REPRESENTATIVE TO BE CONTACTED:
NAME: Alan Feinsilver
S' ture of Co any Official
TITLE: President
Alan D Feinsilver, President
ADDRESS: 1885 Saint James Place, Suite 1100
CITY: Houston STATE: TX ZIP-CODE: 77056
TELEPHONE: (713)266-1101
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EXHIBIT licit
LEGAL DESCRIPTION OF OWNERS PROPERTY
METES AND BOUNDS DESCRIPTION
246.7988 ACRES
CITY OF BAYTOWN,HARRIS COUNTY,TEXAS
August 16,2017
All that 246.7989 sacs tract of land being a portion of a called 263.9945 acre tract as conveyed by Special
Warranty Deed dated November 30,2007 to Fuller Thompson Ten,LTD.as recorded under Clerk's File
No.20070709051 of the Official Public Records of Real Property,Harris County,Texas,all of a called
4.3574 acre tract as conveyed by Warranty Deed dated holy 3,2012 to Fuuller Thompson Ten,LTD as
recorded under Cleric's File No. 20120293573 of the Official Public Records of Real Property,Harris
County, Texas, all of a called 'west half of Lot 8" as conveyed by Special Warranty Deed dated
November 30,2007 to Fuller Thompson Ten,LTD.as recorded under Clerk's File No.20070709052 of
the Official Public Records of Real Property, [isms County Texas, all of"Director's Lot No. 1" as
conveyed by Special Warranty Deed dated September 16,2W5 to Timothy X Fostrr as recorded under
Clerk's File No.Y791519 of the Official Public Records of Real Property,Harris County,Texas,all of
"Directors Lot No. 2"as conveyed by Special Warranty Deed dated September 16,2005 to Gilbert X
Hernandez as recorded under Clerk's File No.Y791521 of the Official Public Records of Real Property,
Harris County, Texas, all of 'Director's Lot No. 3 as conveyed by Special Warranty Deed dated
September 16,2005 to Teri Schoener as recorded under Clerk's File No.Y791M of the Official Public
Records of Real Property,Harris County, Texas,all of"Director's Lot No. 4"as conveyed by Special
Warranty Deed dated September 16,2005 to Scott A.Owen as recorded under Clerk's File No.Y791527
of the Official Public Records of Real Property,Harris County,Texas,and all of"Director's Lot No.5"
as conveyed by Special Warranty Deed dated September 16,2005 to John Reny Thomason as recorded
under Clerk's File No.Y791529 of the Official Public Records of Real Property,Harris County,Texas
and being situated in the William Hilbus Survey,Abstract No.336,Harris County,Texas and being more
particularly described by metes and bounds as follows: (all bearings herein are based on the corpses
described In said dsact dua*ed In Clerk's Me No.20070709051 of the Official PubUc Records of Real
Property,Harris County, Texas)
BEGINNING at a 5/8-inch iron rod found at the northeast corner of a tract of land as conveyed by
Quitclaim Deed dated April 26,2006 to Cheryl A.Baker as recorded under Clerics File No.201643823 of
the Official Public Records of Real Properly,Harris County,Texas,the interior northwest courser of said
263.9945 acre tract and being situated in the south right-of-way lino of Interstate Highway No. 10(width
varies);
THENCE along the south right-of-way line of said Interstate Highway No. 10 and the exterior north line
of said 263.9945 acre tract the following five(5)courses and distances;
North 84°5128"East,for a distance of 195.04 feet to a 5/8-inch iron rod found for corner;
North 86°42'21" East, for a distance of 104.82 feet to a 5/8-inch iron rod with cap stamped
"BanchmarkBngr"set for corner.
North 86132'20"East;for a distance of 417.11 feet to a concrete TxDOT monument found for comer,
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246.7988 Acres
South 78002'09"East,for a distance of 190.78 feet to a point for coma,and from which a concrete
TxDOT monument was found bearing North 82020'West 1.85 feet;
North 86*42121" East, for a distance of 736.98 fleet to a 5/84uch iron and with cap stamped
"BencbmarkBnge' set for comer at the northeast comer of said 263.9945 acre tract and the
northwest coma of*a called 27.0591 acre tract as conveyed by General Warranty Deed dated
December 29, 2012 to Missouri Pacific Railroad Company as recorded under Clerk's File No.
20120601991 of the Official Public Records of Real Property,Harris County,Texas;
THENCE South 02°30'02"East,along the west line of said 27.0S81 acre tract,for a distance of 3,944.73
fen to a 5/8 inch iron rod with cap stamped"BenchmarkBngr"at for coma in the south line of said
263.994S arse tract and the north line of a called 4.0 awe tract as conveyed by General Warranty Deed
dated June 22, 1999 to Demetrio E. Cadena and Esther R. Cadena as recorded under Clerk's File No.
T093936 of the Official Public Records of Real Property,Harris County,Texas;
THENCE North 81-30'36" West, along the south line of said 263.9945 acre tract, for a distance of
1,711.80 feel to a 5/8--inch iron rod with cap stamped"BanchmarkEogr"set for comer at the northeast
coma of said"west half of lot 8"and the northwert coma of a called"cast half of lot 8"as conveyed by
Warranty Deed dated December 21,2006 to Dewey and Susan Perry Monroe as recorded under Clerk's
File No.2006MB6198 of the Official Public Records of Real Property,Hasis County,Texas;
THENCE South 02°36'44"East,along the division line between said-west half of lot 8"and acid"east
half of lot 8"for a distance of 1,318.29 feet to a 5/8-inch iron rod with cap stamped"BanchmarkEW,get
for comer in the north right-of-way line of West Cedar Lynchburg Road(called 60-foot right-of-way); .
THENCE North 81°15'02"West,along the north right-of-my line of said West Cedar Lynchburg Road,
for a distance of 165.15 feet to a railroad spike found for coma;
THENCE North 0203644"West,along the west line of said`rest half of Lot 8"and the east line of a
called'lot T'as recorded under Warranty Deed dated June 15,2001 to Benito Tello as recorded under
Clerk's File No.U462721 of the Official Public Records of Real Property,Harris County,Texas,for a
distance of 1,31752 feet to a 5/8-inch iron rod with cap stamped"BenchmerkBnge'ad for comer in the
south line of said 263.9945 acre tract;
THENCE North 8103016"West,along the south line of said 263.9%5 acre tract and said"Director's
Lot No.'s 1 thru 5",for a distance of 2,298.64 feet to a SA-inch iron rod with cap stamped"South Texas"
found for coma in the cast right-of--way line of Thompson Road(unknown width)at the northwest comer
of a called'Tract 1"as conveyed by Warranty Deed dated Angust 24,2001 to Mary IL Ellison,et al.as
recorded under Clerk's File No.V279078 of the Official Public Records of Real Property,Harris County,
Texas;
THENCE North 02°35'27"West,along the west lime of said 263.9%S acre tract and the and right-of-
way line of said Thompson Road, for a distance of 937.03 feet to a 1/24nch iron rod found at the
southwest comer of a called 6.00 saes(Caldwell)as conveyed by Warranty Deed dated July 10, 1996 to
Charles W.&Debbie IL Caldwell as recorded under Clerk's File No. SO1S995 of the Official Public
Records of Real Property,Harris County,Texas,
Page 2 of 4 Pages
BEC Job Na 16077
L11so7J-250 AD TRACT BAYTOWN T3l1(SIJRVEYJI(4)OoOM Metes and Bot tMI6077 BNDRY WITH DIR LOTa.doc
246.7988 Acres
THENCE North 86058'5T'Bast,along the south line of said 6.00 sores(Caldwell)and the south line of a
called 6.00 acres(Sterling)as conveyed by General Warranty Deed dated July 10, 1996 to Sterling Trust
Co.as recorded under Clerk's File No. S015998 of the Official Public Records of Real Property,Harris
County,Texas,for a distance of 1,131.37 feet to a 5/8-inch iron rod found at the southeast comer of said
6.00 acres(Sterling)and being situated in the west line of a called 120-foot wide drainage easement to
The United States of America as recorded under Volume 1273,Page 467 of the Map Records of Harris
County,Texas;
THENCE North 04052'49" West,along the east line of said 6.00 acres (Sterling)and the west line of
said 120-1oot wide drainage easement, for a distance of 138.61 feet to a 5/8-inch iron rod with cap
stamped"BenchmarkBsrgr"found for come:;
THENCE North W48'35"West,along the west line of said 120-foot wide drainage easement and along
the east line of said 6.00 acres(Sterling),the east line of a called 6.00 acres(Truckling)as conveyed by
Warranty Deed dated January 5,2006 to Truckling Ltd as recorded under Clerk's File No.Z0098735 of
the Official Public Records of Real Properly,Harris County,Texas and the east line of a called 10.00 acre
tract as conveyed by Warranty Deed dated February 25, 2003 to RBJ Carmel, LLC as recorded under
Clerk's File No.W453855 of the Official Public Records of Real Property,Harris County,Texas,passing
at a distance of 94.47 feet a MX-inch iron rod found at the southeast corner of said 6.00 acre(Tnrckking)
tract,passing at a distance of 332.94 feet a 5/8-inch iron rod with cap souped'Town&Country"found at
the southeast comer of said 10.00 acre had and continuing in all for a total distance of 743.03 feet to a
5/8-inch iron rod found at the northeast comer of said 10.00 acre tract;
THENCE North 86°57'44"Fast,along the interior north line of said 263.9945 acre tract,for a distance
of 476.51 feet to a 1-inch iron pipe found for corner at the southwest corner of said 43574 acre tract and
the southeast corner of a called 9.8099 acre tract as conveyed by General Warranty Deed dated July 25,
2014 to John Lyman as recorded under Clerk's File No.20140325768 of the Official Public Records of
Real Property,Hams County,Texas,and from which a 1/2-inch iron rod with cap stamped"BMA Inc"
was found bearing South 03*02'East,1.52 feet;
THENCE North 02°27'57"West,along the east line of said 9.8099 acre had and the west line of add
4.3574 acre tract,for a distance of 1,156.56 feet to a 1/2-inch iron rod with cap stamped"4988 RPLS"
found for corner at the northeast corner of said 9.8099 acre tract and the northwest comer of said 4.3574
acre tract and being situated in the south right-of--way line of said Interstate Highway No. 10;
THENCE North 67*31'27"East,along the north line of said 4.3574 acre tract and the south right-of-way
line of said Interstate Highway No. 10,for a distance of 50.30 feet to a 5/8-inch iron red with cep stamped
'BenchmarkEW'set for comer,
THENCE North 74°19'01"East,along the north line of said 4.3574 acre tract and the south right-of-way
line of said Interstate Highway No. 10, for a distance of 108.18 feet to a 5/8-inch iron rod with cap
stamped 'Benchmarkfingr" act for comer at the northeast comer of said 43574 acre had and the
northwest comer of a called 4.3505 acre tract as conveyed by Cash Warranty Deed dated December 28,
2016 to Rachael L. Johnson as recorded under Clerk's File No. 2016578981 of the Official Public
Records of Real Property,Harris County,Taw,
THENCE South 03°26'12"Bast, along the east line of said 4.3574 acre tract and the west line of said
4.3505 acre tract,for a distance of 1,199.67 feet to a 3/4-inch iron pipe found for comer;
Page 3 of 4 Pages
BEC Job No.16077
LA16077-250 Ac TRACT BAYTOWN TMISURVEVX4)D=A(8)Metes and Bounda116077 BNORY MH DIR LOTBAoo
246.7988 Acres
THENCE North 86049'05"Bast, along the interior north line of said 263.9945 acre tract,passing at a
distance of 152.97 feet a Much iron pipe found at the southeast comer of said 43505 acre tract and
continuing in all for a total distance of 68S.56 feet to a 5/84nch iron rod with cap stamped
`BmchmarkBngr'set for comer•,
TRENCE North 0203112(r Weak for a distance of 1.08 feet to a 1/2-inch iron rod found for corner•,
THENCE North 87°2738"East,along the south line of said Quitclaim Deed for a distance of 8626
to a 1/2-inch iron pipe found at the southeast comer of said Quitclaim Deed;
THLNCE North 02°37'58"West,along the interior west line of said 263.9945 acre tract,for a distance
of 1,330.79 feet to the POINT OF BEGINNING of herein described tract and containing 246.7999 acres
or 10,750,556 square feet of land.
This description was prepared in connection with a Land Title Survey prepared by Benchmark
Engineering Corporation dated May 5,2017 and revised on Angust 16,2017. Job No.16077.
Ronald d.Harrison,R.P.L.S.
Texas Registration No.5342
TBPLS Firm Registration Number 10009000
Page 4 d 4 Pages
BEG Job Na IM77
L11effn-2so An TRACT BAYTOWN TMISURVEYX4)Do*6)Meles and BoundMiGM BNDRY WITH DIR LOTS.doc
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