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Ordinance No. 12,723ORDINANCE NO. 12,723 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL DISTRICT AGREEMENT WITH NRG CEDAR BAYOU DEVELOPMENT COMPANY, LLC, AND OPTIM ENERGY CEDAR BAYOU 4, LLC; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. ********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** 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 Mayor and City Clerk of the City of Baytown to execute and attest to an Industrial District Agreement with NRG Cedar Bayou Development Company, LLC, and Optim Energy Cedar Bayou 4, LLC. A copy of said Industrial District Agreement is attached hereto, marked Exhibit "A" and incorporated herein 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, City of Baytown, this the 17th day of November, 2014. ATTEST: BRYSCH, APPROVED AS TO FORM: o ACIO RAMIREZ, SR., Ci A orney vote of the City Council of the H. DONCARLOS, Mayor . ICOBFSOI',LegallKaren\Files'City Counci l',Ordinances\2014\November 17'. IDAwithNRGCedarBayou &OptimEnergy.doc T ACIO RAMIREZ, SR., Ci A orney vote of the City Council of the H. DONCARLOS, Mayor . ICOBFSOI',LegallKaren\Files'City Counci l',Ordinances\2014\November 17'. IDAwithNRGCedarBayou &OptimEnergy.doc Exhibit "A" Industrial District Agreement This Industrial District Agreement ( "Agreement ") is made and entered into between the City of Baytown, Texas, a municipal corporation in Harris and Chambers Counties, Texas, hereinafter also referred to as 'Baytown" or "City," and NRG Cedar Bayou Development Company, LLC, a Delaware limited liability company, and Optim Energy Cedar Bayou 4, LLC, a Delaware limited liability company, hereinafter referred to as "Property Owners." In consideration of the promises and of the mutual covenants and agreements herein contained, it is agreed by and between the City and Property Owners as follows: I. Parties This Agreement is made under the authority of Texas Local Government Code Annotated §42.044 (Vernon 1993), article XI, §5 of the Texas Constitution and other applicable law. The parties to the Agreement and their addresses are: The "City" City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Copy to: City of Baytown Attn: City Attorney P.O. Box 424 Baytown, TX 77522 2. The "Property Owners" NRG Cedar Bayou Development Company, LLC Attn: Howard Taylor 1000 Main Street, Suite 2300 Houston, TX 77002 Optim Energy Bayou 4, LLC Attn: Nick Rahn 8403 Colesville Road, Suite 915 Silver Spring, MD 20910 Tax Statement Address: NRG Cedar Bayou Development Company, LLC Attn: Howard Taylor 1000 Main Street, Suite 2300 Houston, TX 77002 Optim Energy Cedar Bayou 4, LLC Attn: Nick Rahn 8403 Colesville Road, Suite 915 Silver Spring, MD 20910 H. Identification of Property and Industrial District This Agreement includes provisions concerning certain real estate and tangible personal property owned or leased by the Property Owners. Real estate located outside the corporate limits of the City is sometimes referred to herein as the "affected area," and it is described in Exhibit A, which is attached to this Agreement and made a part hereof. Acting pursuant to the above mentioned authority, the City Council of the City has by ordinance, designated the affected area as an industrial district, the same to be known as Baytown Industrial District No. 3 (the "Industrial District "). III. Term The term of this Agreement is seven tax years, from 2014 through 2020, unless it is sooner terminated under the provisions hereof. This Agreement shall be effective and binding on the parties hereto upon execution hereof on behalf of the parties to this Agreement and shall remain in effect for seven years. This Agreement supersedes any prior existing agreements between the Property Owners and the City relating to the subject matter hereof and governing the affected area; to the extent any such prior existing agreement required payment on or after January 1, 2014 such payment obligations are hereby canceled and are superseded by the provisions contained herein. IV. Limited Immunity from Annexation by the City In consideration of the obligations of the Property Owners herein set forth, the City hereby guarantees for the term of this Agreement the immunity of the affected area from annexation of any type by the City except for such parts of the affected property as may be necessary to annex property owned by third parties within the Industrial District that the City may decide to annex. Additionally, this Agreement shall not affect the continuation of any limited purpose annexation status to which the affected area is now subject. V. Industrial District Payment As part of the consideration for the City's undertakings as set forth above, the Property Owners agree to pay to the City on or before December 31 sc of each year during the term hereof a sum of money equal to: (1) the fair market value as determined by the City, of all of the Property Owners' land and all other tangible property, real, personal or mixed, within the affected area ➢ on January 1, 2002, on January 1, 2009, a as specified and/or used in a previous Industrial District Agreement between the Property Owners and the City, or as most recently certified by the chief appraiser of the appraisal district and/or approved by the Industrial Appraisal Review Board established and appointed by the City Council, as of the date of this Agreement, whichever is greater hereinafter referred to as the "Base Year." Such fair market value for the Base Year is agreed to and stipulated by the parties to be ONE HUNDRED FORTY MILLION SIXTY -SIX THOUSAND FOUR HUNDRED AND N01100 DOLLARS ($140,066,400.00) for the term of this Agreement, less the fair market value in the Base Year as determined by the City of that portion of the Property Owners' property, real, personal or mixed, which was located within the industrial district on the effective date of this agreement and subsequently annexed by the City, the difference of which is hereinafter referred to as the "Base Year Value," multiplied by (2) the property tax rate per $100.00 of assessed valuation adopted by the City Council for the City, multiplied by the applicable Yearly Payment Rate as detailed below. The applicable Yearly Payment Rate is the sum of the Industrial District Payment Rate plus the Public Community Improvement Rate and shall be determined using the following chart: Base Value shall be apportioned between the Property Owners based upon the ownership of the Property. VI. Valuations For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owners hereunder, there are hereby adopted and made a part hereof all provisions of the Constitution and statutes of the State of Texas pertaining to ad valorem taxation as amended throughout the term of this Agreement (including, in particular, the Texas Property Tax Code), except, however, that (i) to the extent that any of such provisions would require the INDUSTRIAL PUBLIC YEARLY TAX YEAR DISTRICT CON M[UNITY PAYMENT PAYMENT RATE IMIPROVEMENT RATE RATE 2014 .61 .01 .62 2015 .62 .01 .63 2016 .62 .01 .63 2017 .63 .01 .64 2018 .63 .01 .64 2019 .63 .01 .64 2020 .64 .01 .65 Base Value shall be apportioned between the Property Owners based upon the ownership of the Property. VI. Valuations For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owners hereunder, there are hereby adopted and made a part hereof all provisions of the Constitution and statutes of the State of Texas pertaining to ad valorem taxation as amended throughout the term of this Agreement (including, in particular, the Texas Property Tax Code), except, however, that (i) to the extent that any of such provisions would require the assessment of the Property Owners' property on an equal and uniform basis with property in the general corporate limits of the City, the provisions of this Agreement will control where in conflict with the provisions of such laws and (ii) the income method of appraisal as described in Section 23.012 of the Texas Property Tax Code shall not be limited to only properties for which a rental market exists. Specifically, nothing contained herein shall limit the income method of appraisal specified in Section 23.012 of the Texas Property Tax Code to only properties for which a rental market exists, instead if such method is used, the chief appraiser shall: 1. use income and expense data pertaining to the property, if possible and applicable; 2. make any projections of future income and expenses only from clear and appropriate evidence; 3. use data from generally accepted sources in determining an appropriate capitalization rate; 4. determine a capitalization rate for income - producing property that includes a reasonable return on investment, taking into account the risk associated with the investment. A. Valuation of Property Inside the Corporate Limits but Subsequently Disannexed Land, improvements and tangible property, real or mixed, of the Property Owners, which is disannexed from the corporate limits of the City during the term of this Agreement, shall become part of the affected area immediately upon disannexation. The value for such land, improvements and tangible property, real or mixed, shall be based upon the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District or its legal successor (or through administrative or judicial appeal of the Chambers County Appraisal District's determination) and shall be added to the Base Year Value specified in Article V for purposes of payment hereunder on January 1 of the year the same is disannexed. B. Valuation of Property Outside the Corporate Limits The parties hereto recognize that said Chambers County Appraisal District is not required to appraise the land, improvements, and tangible property, real or mixed, in the affected area, which is not within the corporate limits of the City, for the purpose of computing the payments hereunder. Therefore, the parties agree that to determine the fair market value of all of the Property Owners' land, improvements, and tangible property located outside the corporate limits of the City in accordance with the market value computation contemplated in the Texas Property Tax Code for the purpose of calculating the Property Owners' payment in the manner described above, the City may choose to use the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District (or through administrative or judicial appeal of the Chambers County Appraisal District's determination), or by appraisal conducted by the City and/or by an independent appraiser of the City's selection, and at the City's expense. Nothing contained herein shall ever be construed as in derogation of the authority of the Chambers County Appraisal District to establish the appraised value of land, improvements, and tangible personal property in the annexed portion for ad valorem tax purposes. C. Binding Effect Determination of Industrial District fair market values in the above - stated manner outside the corporate limits shall be made by the City and approved by the Industrial Appraisal Review Board. Such final fair market value as approved by the Industrial Appraisal Review Board shall be final and binding unless either party within thirty (30) days after receipt of the Board's determination petitions for a Declaratory Judgment to the Civil District Court of Harris County, Texas, as provided for by Section XIV hereof. In determining the fair market value of property and improvements as used herein, the Industrial District Appraisal Board shall base its determination on the fair market value as defined in Section VI herein, giving due consideration to comparable present day facilities considering and giving effect to sound engineering valuation practices relative to service life, life expectancy, process and functional obsolescence. D. Statements The City shall mail one statement to the Property Owners on or about December 1 of each year showing the total amount due on December 31 of such year pursuant to this Agreement. Such statement shall be mailed to the "Tax Statement Address" noted in this Agreement. Any amounts due on December 31 that are not paid when due shall become delinquent on January 1 of the following year. Provided, however, if the tax statement is mailed after December 10, the delinquency date is postponed to the first day of the next month that will provide a period of at least 21 days after the date of mailing for payment of the amount due. Delinquent amounts shall be immediately subject to the same penalties, interest, attorneys' fees and costs of collection as recoverable by the City in the case of delinquent ad valorem taxes. The City shall have a lien upon the Property Owners' land within the affected area upon any delinquency in the Industrial District Payment. E. Valuation Contests If any differences concerning the appraised values shall not have been finally determined by the due date of the Property Owners' payment hereunder and the Property Owners desire to pursue any additional available remedies, the Property Owners shall, without prejudice to such remedies, pay to the City by December 31 of each year (subject to the exception in the preceding paragraph for statements mailed after December 10), such amount as is provided in the Texas Property Tax Code, as amended throughout the term of this Agreement, for payments made under such conditions by owners of property within the general corporate limits of the City subject to ad valorem taxation. Any refund payable by the City to the Property Owners hereunder shall be paid within 60 days after receipt by the City of both Chambers County Appraisal District's form notification that the appraised value of the property has been reduced and a written refund request by the Property Owners; if not paid timely, the refund amount shall bear interest at eight percent per annum beginning 60 days after the City received both the Property Owners' written refund request and the Chambers County Appraisal District's formal notification that the appraised value of the property has been reduced. VII. Compliance with Law The City and the Property Owners mutually recognize that the health and welfare of Baytown residents require adherence to high standards of quality in the air emissions, water effluents and noise, vibration and toxic levels of those industries located in the Industrial District, and that development within the District may have an impact on the drainage of surrounding areas. To this end, the Property Owners and the City agree that the same standards and criteria relative to noise, vibration and toxic levels and drainage and flood control which are adopted by the City and made applicable to portions of the City adjacent to the Industrial District shall also be applicable to the affected area. The Property Owners agree that any industrial or other activity carried on within the affected area will be constructed in strict compliance with all applicable valid state and federal air and water pollution control standards. If the Property Owners' property within the affected area is subject to the Occupational Safety and Health Act, 29 U.S.C. 65, et seq., as amended, then the Property Owners shall undertake to ensure that its facilities and improvements in the affected area comply with the applicable fire safety standards of such act and the resolutions from time to time promulgated hereunder (the "OSHA Standards "), but there shall be no obligation to obtain any permits of any kind from the City in connection with the construction, operation or maintenance of improvements and facilities in the affected area not located within the corporate limits of the City. Nonetheless, the Property Owners agree that any structure built within the affected area shall be built in accordance with the building code adopted by the City in effect at the time of construction. The City and the Property Owners recognize that activities in the City's industrial districts are subject to regulation by other governmental entities, including the state and federal governments and their various departments and agencies. The City and the Property Owners also recognize that the City may have an interest in activities in the City's industrial districts that are regulated by other governmental entities. Nothing in this Agreement is intended to limit the City's right and authority to communicate its interest in, or opposition to, those activities to the applicable regulatory agencies or to participate, to the extent allowed by law, in any related administrative or judicial proceeding. VIII. Inspections The Chief Appraiser of the Chambers County Appraisal District and the City or its independent appraiser shall have the same right to enter and inspect the Property Owners' premises and the same right to examine the Property Owners' books and records to determine the value of the Property Owners' properties as are provided in the Texas Property Tax Code as amended. IX. Public Community Improvement The Property Owners may apply to the City for reimbursement for a Public Community Improvement Project designed to further the public community improvement goals of the City of Baytown. Such project, the duration of the project, and the location thereof must be approved in writing by the City Manager of the City based upon the public community improvement goals of the City in effect at the time of the application. The Public Community Improvement Project must be completed prior to the expiration of the Agreement year during which it is approved to be eligible for reimbursement, except if it is approved as a multi -year project. The Public Community Improvement Project may be for multiple years; however, in order to be eligible for reimbursement in accordance with this article, it must be completed prior to the expiration or termination of this Agreement. Further, the project may be constructed on the Property Owners' property; provided that the project is visible from and enhances a public way or other public property. Any reimbursement under this article shall be subject to the City Manager's determination that the completed Public Community Improvement Project meets or exceeds those improvement efforts proposed and approved prior to the start of the project. Reimbursement may not exceed the amount the Property Owners will pay to the City based solely upon the Public Community Improvement Rate established in Article V hereof during the term of this Agreement. It is expressly understood and agreed that in any year during the term of this Agreement, the Property Owners shall not submit a request for reimbursement which exceeds the amount the Property Owners have paid to the City based solely upon the Public Community Improvement Rate established in Article V hereof. If the Property Owners fail to receive the City Manager's approval of a Public Community Improvement Project prior to the expiration of an Agreement year, the Property Owners will have no claim to the monies paid to the City based upon the Public Community Improvement Rate and the City shall use such funds for a project consistent with the City's public community improvement goals. X. Default A. Default byProperty Owners In the event of default by the Property Owners in the performance of any of the terms of this Agreement, including the obligation to make the payments above provided for, the City shall have the option, if such default is not fully corrected within sixty (60) days from the giving of written notice of such default to the Property Owners to either (i) declare this Agreement terminated or (ii) continue the term of this Agreement and collect the payments required hereunder. Notwithstanding any to the contrary contained herein, should the City determine the Property Owners are in default according to the terms and conditions of Section VII hereof, the City shall notify the Property Owners in writing by U.S. Mail, certified return receipt requested, at the address stated in this Agreement, and if such default is not cured within sixty (60) days from the date of such notice (the "Cure Period ") then such failure to cure shall constitute a material breach of this Agreement; provided that, in the case of a default under Section VII for causes beyond the Property Owners' control that cannot with due diligence be cured within such sixty (60) day period or in the event that the failure to cure results from ongoing negotiations with federal or state officials, administrative proceedings or litigation regarding the necessary cure steps, then the cure period shall be extended until such negotiations, administrative proceedings or litigation are concluded. B. Default by City In the event of default by the City, the Property Owners may, if such default is not fully corrected within 60 days from giving written notice of such default to the City, terminate this Agreement. Upon such termination, both the Property Owners and the City shall be relieved of all further obligations hereunder, but the Property Owners shall not be relieved of the obligation to pay any amounts that accrued prior to such termination. In the event of termination, the City shall have the right to repeal the ordinance designating the affected area as an industrial district. Provided, however, if the termination occurs as a result of the City's exercising its option to terminate (as provided in the first sentence of this Section X), the City shall not have the right to annex the affected area into the general corporate limits of the City so as to subject the affected area to ad valorem taxes for any part of the period covered by the Property Owners' last payment hereunder. XI. Notice Any notice to the Property Owners or the City concerning the matters to which the Agreement relates may be given in writing by registered or certified mail addressed to the Property Owners or the City at the appropriate respective addresses set forth on the cover page of this Agreement. Any such notice in writing may be given in any other manner. If given by registered or certified mail, the notice shall be effective when mailed. With the exception of annual bills for payments due herein, notice given in any other manner shall be effective when received by the Property Owners or the City, as the case may be. XII. No Further Expansion of Taxing Jurisdiction Nothing herein contained shall be construed to change or enlarge the jurisdiction, power or authority of the City over or with respect to the affected area as prescribed by applicable law, except as specifically provided in this Agreement. The Property Owners shall not be obligated by virtue of this Agreement, or the establishment of the industrial district covering the affected area not within the corporate limits of the City, to make any payments to the City in the nature of a tax or assessment based upon the value of the Property Owners' property in the affected area during the term of this Agreement other than the payments specified herein. Specifically, the Property Owners shall not be liable for any City taxes within the affected area, including, without limitation, City ad valorem taxes on taxable property within the affected area. XIII. Reimbursement for Services If the Property Owners request and receive mutual aid firefighting assistance and is a member of Channel Industries Mutual Aid organization ( "CIMA ") or similar organization, the Property Owners shall reimburse the City for costs incurred by the City in providing fire protection services to the Property Owners as shall be provided in the charter, bylaws and agreements pursuant to which CIMA or such similar organization is organized and operates. If the Property Owners request and receive mutual aid firefighting assistance and is not a member of CIMA or a similar organization, then the Property Owners shall be required to reimburse the City for costs actually expended by the City in providing any firefighting assistance to the Property Owners, including chemical and personnel costs. XIV. Declaratory Judgment Action If any disagreement arises between the parties concerning the interpretation of this Agreement, it is agreed that either of the said parties may petition any Civil District Court of Harris County, Texas, for a Declaratory Judgment determining said controversy and the cause shall be tried as other civil causes. If the controversy affects an Industrial District Payment, the Property Owners shall, pending final determination of said controversy, pay to the City on the due date the same amount which was paid to the City for the last preceding period as to which there was no controversy concerning the amount owed by the Property Owners to the City. The Property Owners agree to tender any additional amount of potential liability to the registry of the Civil District Court, Harris County, Texas, pending final determination of the controversy beyond any further appeal. XV. Assignment This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Property Owners and the City only. If a Property Owner conveys all or any part of the property then covered hereby, the Property Owner shall notify the City within 30 days of the conveyance and shall thereafter cease to be obligated with respect to the property so conveyed and the Base Value shall be apportioned between the Property Owners and the grantee based upon the property conveyed, only if the grantee thereof enters into an Industrial District Agreement with the City with respect to such property so conveyed. Except as provided herein, no right or obligation under this Agreement may be sold, assigned or transferred. XVI. Authorily The Property Owners covenant that it has the authority to enter into this Agreement by virtue of being either the legal or equitable owner of a possessory estate (including a leasehold estate) in the land comprising the affected area, which will not terminate before the expiration date of this Agreement. Additionally, the officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the party he represents. XVII. No Municipal Services It is agreed that during the term of this Agreement, the City is under no obligation to provide any governmental, proprietary or other municipal services to the affected area. Specifically, but without limitation, it is agreed that the City shall not be required to furnish (1) sewer or water service, (2) police protection, (3) fire protection (4) road or street repairs, and (5) garbage pickup service. XVIII. Severability If any provision of this Agreement, or any covenant, obligation or agreement contained herein, including, without limitation, that term hereof, is determined by a court to be invalidated or unenforceable, such provision, covenant, obligation or agreement shall be reformed so as to comply with applicable law. If it is not possible to so reform such provision, covenant, obligation or agreement, such determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. Provided, further that such invalidity or unenforceability shall not affect any valid and enforceable provision thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. Notwithstanding the above, if the application of this Section XVIII requires reformation or revision of any term that removes or materially diminishes the obligation of the Property Owners to make the payments to the City described herein (except in the event of a reformation that shortens the term of this Agreement), the City shall have the option to declare this Agreement terminated. M. Complete Agreement This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. 10 XX. Non - waiver Failure of either party hereto 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. XXI. Ambiguities In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. XXII. Headings The headings appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. XXIII. Choice of Law, This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. )MV. Agreement Read The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. IN WII -NESS WHEREOF, this Agreement is executed in multiple counterparts on behalf of the Property Owners this day of — , 2014, and on behalf of the City this day of , 2014. ST: _ c o �- Secre ATTEST: Secretary: �.. 12 NRG CEDAR BAYOU DEVELOPMENT COMPANY, LLC By Howa A —ra%dor Printed Name Title (;Coll OPT1M ENERGY CEDAR BAYOU 4, LLC By A Printed Name Title CITY OF BAYTOWN STEPHEN H. DONCARLOS, Mayor ATTEST: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney LOUISE RICHMAN, Finance Director R:Ucancnc \My Documents\ Cont ra cts\ IDA\ NRGCcdarBny ouDcvclopmcntCompany& OptimFnergyCedarBayou4lDARenewal2014 .doc 13 EXHIBIT A FIELD NOTES FOR A 13.520 ACRES (588,931 SF) SEVERANCE SURVEY COMPLETED JUNE 14, 2007 Being 13.520 acres (588,931 SF) of land ostensibly lying wholly within the Christian Smith League, Abstract 22, Chambers County, Texas and being out of and a part of that certain 324.435 acres of land described in "Deed of Trust" by NRG TEXAS LP. to Fidelity National Title Insurance Company, Trustee, dated 21 November 2006, and recorded in Volume 917, Page 447 of the official Public Records of Chambers County, Texas, said 324.435 acres being a remainder of that certain 413.081 acres of land described in " Deed" from Reliant Energy, Incorporated to Texas. Genco Holdings, Inc., executed 31 August 2002, and recorded in Volume 575, Page 835 of said Official Public Records of Chambers County and Chambers County Clerks File Number 6952B and being more particularly described by metes and bounds as follows: (The courses, distances, and areas shown herein and on the corresponding plat conform to the Texas State Plane Coordinate System, North American Datum 1983 HARN South Central Zone Grid, and were based on the position of a found concrete monument with brass disk having a Grid values of Northing (Y) = 13842928.39 feet and Easting (X) = 3260502.20 feet, Plant Grid values of N= 669.00 E =130.00, and the position of a second found concrete monument with brass disk bearing S 12° 10'33" E at a Grid distance of 1248.99 feet and having Grid values of Northing (Y) = 13841707.50 feet and Easting (X) - 3260765.62 feet, Plant Grid values of S =580.00 E= 130.00, and were established by survey grade global positioning equipment) (All distances shown hereon and on the corresponding plat are Grid and can be converted to surface by dividing by the applied scale factor of 0.9998892.) (All corners called for as being set are marked on the ground with 5/8" diameter iron rods with plastic identification caps stamped "SURVCON, INC." attached unless otherwise noted or shown.) BEGINNING at a 518" iron rod with plastic identification cap stamped "SURVCON, INC." set marking the northwest comer of the herein described tract of land and lying inside said 324.435 acres of land and from which said concrete monument with brass disk bears S 56 046'54" W at a distance of 1305.37 feet and from which the northeast corner of said 324.435 acres of land beats N 63 048'56" E at a distance of 4169.31 feet and also from which an iron rod with plastic identification cap stamped "SURVCON, INC." found marking an exterior comer for that certain 28.822 acres tract of land described in "Schedule 1" as "CBY TANK -0O2" in "Special Warranty Deed" from Texas GENCO II, I?, to TG Pipeline, L.P., executed 15 July 2005, and recorded in Volume 801, Page 519 of the said Official Public Records Chambers County, Texas, and a re- entrant corner for the said 324.435 acres of land bears N 67 °51'29" E at a distance of 1084.74 feet; THENCE: N 77 °49'27" E along the north line of this herein described tract and through said 324.435 acres of land for a distance of 650.00 feet to a 518" iron rod with plastic identification cap stamped "SURVCON, INC." set for the northeast comer of the herein described tract of land and from which above said iron rod with plastic identification cap stamped "SURVCON, INC." found bears N 53 °40'24" E at a distance of 458.53 feet; THENCE: S 12 °10'33" E along an east line of this herein described tract and continuing through said 324.435 acres of land for a distance of 655.00 feet to a 518" iron rod with plastic identification cap stamped "SURVCON, INC" set for a comer of the herein described tract of land; THENCE: N 77 °49'2T' E along a north line of this herein described tract and continuing through said 324.435 acres of land for a distance of 310.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC" set for a comer of the herein described tract of land and from which an iron rod with plastic identification cap stamped "SURVCON, INC." found bears N 100 17'31" E at a distance of 284.07 feet; THENCE: S 12 °10'33" E along an east line of this herein described tract and continuing through said 324.435 acres of land for a distance of 320.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC" set for the southeast corner of the herein described tract of land; - Q C k THENCE: S 77 °49'27" W along the south line of this herein described tract and continming through said 324.435 acres of land for a distance of 510.00 feet to a 5/8" iron rod with plastic identification cap sta miped "'SURVCON, INC. set for the southwest corner of the herein described tract of land; THENCE: N 120 10'33" W along a west line of this herein described tract and continuing d cough said 324.435 acres of land for a distance of 320.00 feet to a 5/8" iron rod with plastic identification cap stamped "SMVCOfN, INC.' set for a corner of the herein described tract of land; THENCE: S 77 °49'27" W along a south line of this herein described tract and continuing ti3trottgbt said 324.435 acres of land for a distance of 450.00 feet to a "X" cut in concrete set for a corner of the herein descabsd tract of lanai and from which the said concrete monument with brass disk found bears S 86°31'04" W at a disnanceof 1232_48 feet THENCE: N 12°10'33" W along the west line of this herein described tract and contin s ing though said 324.435 acres of land for a distance of 655.00 feet to the POINT OF BEGINNING and containing 13.5'►O acres (588,931 SF) of land within the herein described boundary as determined by a survey performed ]by SURVC011+1, INC- and completed on June 14, 2007. Prepared by: SURVCON INC. 5757 Woodway Houston, Texas 77057 Ph. 713 -780 -4123 Job No. 60024374.11 June 14,2007 Revised: June 25, 2007 July 03, 2007 THE STATE OF TEXAS: COUNTY OF HARRIS It is hereby certified dint the fotagotng field orate do ription and Attached plat were prepared from an actual on uhe powad swv*7 Made by personnel waridag wrier aw direst iampervisim and dma Same are bete and cooed camnling to soots swid surrey_ Steven M. Colcman-Rcgistered Pwressioaal tamed Smveyesr No. 5063 -Pmbe, a DESCRIPTION OF COOLING TOWER PARCEL FIELD NOTES FOR A 0.712 ACRES (31,000 SF) SEVERANCE SURVEY COMPLETED JUNE 26, 2007 Being 0.712 acres (31,000 SF) of land ostensibly lying wholly within the Christian Smith League, Abstract L, Chambers County, Texas and being out of and a part of that certain 324.435 acres of land described in "Deed of Tn r by NRG TEXAS LP. to Fidelity National Title Insurance Company, Trustee, dated 21 November 2006, and recorded in Volume 917, Page 447 of the official Public Records of Chambers County, Texas, said 324.435 acres being a remainder of that certain 413.081 acres of land described in "Deed" from Reliant Energy, Incorporated to Texas Genco Holdings, Inc., executed 31 August 2002, and recorded in Volume 575, Page 835 of said Official Public Records of Chambers County and Chambers County Clerks File Number 6952B and being more particularly described by metes and bounds as follows: (The courses, distances, and areas shown herein and on the corresponding plat conform to the Texas State Plane Coordinate System. North American Datum 1983 HARK South Central Zone Grid, and were based on the position of a found concrete monument with brass disk having a Grid values of Northing (Y) = 13842928.39 feet and Easting (X) = 326050220 feet, Plant Grid values of N- 669.00 E- 130.00, and the position of a second found concrete monument with brass disk bearing S 12° 10'33" E at a Grid distance of 1248.99 feet and having Grid values of Northing (Y) = 13841707.50 feet and Easting (X) = 3260765.62 feet, Plant Grid values of S =580.00 E =130.00, and were established by survey grade global positioning equipment) (All distances shown hereon and on the corresponding plat are Grid and can be converted to surface by dividing by the applied scale factor of 0.9998892.) (All corners called for as being set are marked on the ground with 518" diameter iron rods with plastic identification caps stamped "SURVCON, INC." attached unless otherwise noted or shown.) BEGINNING at a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." found marking the northwest comer of a previously surveyed 13.520 acres tract of land and also being the southwest comer of this herein described tract of land and lying inside said 324.435 acres of land and from which said concrete monument with brass disk bears S 56 °46'54" W at a distance of 130537 feet and from which the northeast corner of said 324.435 acres of land bears N 63 °48'56" E at a distance of 4169.31 feet and also from which an iron rod with plastic identification cap stamped "SURVCON, INC." found marking an exterior comer for that certain 28.822 acres tract of land described in "Schedule 1" as "CBY- TANK -0O2" in "Special Warranty Deed' from Texas GENCO 11, LP, to TG Pipeline, L.P.. executed 15 July 2005, and recorded in Volume 801, Page 519 of the said Official Public Records Chambers County, Texas, and a reentrant corner for the said 324.435 acres of land bears N 67°51'29" E at a distance of 1084.74 feet and also from which an "X" cut in concrete found marling the southwest conger of said 13.520 acres tract of land bears S 120 10'33 "E at a distance of 655.00 feet: THENCE: N 12° 10'33" W along the west line of this herein described tract of land and through said 324.435 acres of land for a distance of 62.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." set for the northwest corner of the herein described tract of land; THENCE: N 77 049'27" E along the north line of this herein described tract of land and continuing through said 324.435 acres of land for a distance of 500.00 feet to a 518" iron rod with plastic identification cap stamped "SURVCON, INC." set for the northeast comer of the herein described tract of land; THENCE: S 12° 10'33" E along the east line of this herein described tract and continuing through said 324.435 acres of land for a distance of 62.00 feet to a 5/8" iron rod with plastic identification cap stamped "SURVCON, INC." set for the southeast comer of the herein described tract of land and being in the north line of said 13.520 acres tract of land and from which a 5 /8" iron rod with plastic identification cap stamped "SURVCON, INC." found marking the northeast comer of said 13.520 aces tract of land bears N 77 °49'27" E at a distance of 150.00 feet: may 3 THENCE: S 77 °49'27" W along the north line of said 13.520 acres tract of land and being the south line of this herein described tract of land and continuing through said 324.435 acres of land for a distance of 500.00 feet to the POINT OF BEGINNING and containing 0.712 acres (31,000 SF) of land within We herein described boundary as determined by a survey performed by SURVCON, INC. and completed on July 26, 2007. Prepared by: SURVCON INC. 5757 Woodway Houston, Texas 77057 Ph. 713 - 780 -4123 Job No. 60024374.11 July 25, 2007 THE STATE OF TEXAS: COUNTY OF HARRIS it is herby certified that the forgoing frdd rote deseripdon and Attached plat were prepared from an actual on the ground survey Made by pasonnd woddng under my direct supervision and that Same are true and correct according to same said survey. Steven M. Coleman- Registered Professional land Surveyor No. 5063 O,!5e 'i