Ordinance No. 13,716ORDINANCE NO. 13,716
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 LOGISTICS, 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. 2466
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. 2466 has elected to
participate in tax abatements; and
WHEREAS, Resolution No. 2466 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, 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 Logistics, LLC, meet the applicable guidelines
and criteria adopted by the City of Baytown; and
WHEREAS, the City Council of the City of Baytown fmds 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 Logistics, 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 fro and after its passage by the City
Council of the City of Baytown.
INTRODUCED, READ, and PASSED by the affirmative v e of the City Council of the City of
Baytown, this the 22"d day of March, 2018.
ATTEST:
G4 ,pYT?`c ; 4
LETICIA BRYSCH, City C erk (�
APPROVED AS TO FORM:
JQNACIO RAMIREZ, SR., Ci ttorney
4\cobfs0111egaWwen\FileslCity Council'•.Ordinances\2018Warch 22 TaxAbatementAgreementPortlRogistics.doc
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 Logistics, 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").
Authorization
This Agreement is authorized by (i) the Texas Property Redevelopment and Tax
Abatement Act, (ii) Resolution No. 2466 of the City Council of the City of Baytown, Texas, and
(iii) Ordinance Nol . of the City Council of the City of Baytown, Texas, providing for the
designation of the Reinvestment Zone.
II
Definitions
For the purpose of this Agreement, the definitions set forth in Resolution No. 2466 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, 2019, 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.
Tax Abatement Agreement, Page 1
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.
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, 2018, 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, 2019.
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.
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
Pro e
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 246.7988 acres of land, which is located within the Reinvestment Zone,
assigned Harris County Appraisal District Account Numbers 0591430000422 and
0591510050008 and more fully described in the Application.
Tax Abatement Agreement. Page 2
the values hereinafter established for tax year 2018, by the Hams County Appraisal
District, plus $0.00 , representing the agreed upon value of Improvements made after
January 1, 2018, 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 permitted only for the value of New Eligible
Property as defined in Article H of this Agreement and as specifically listed in Exhibit `B." This
Abatement shall be granted effective January 1, 2019 (the "Effective Date of Abatement"). The
portion of New Eligible Property value to be abated shall be in accordance with the following
schedule:
War
2019
M)ateniciit
100%
2020
100%
2021
80%
2022
60%
2023
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 $10,000,000.
The City shall enter
described in this Agreement
Ordinance No.%
Tax Abatement Agreement, Page 3
into only one tax abatement agreement for the New Facility
during the existence of the Reinvestment Zone as designated by
VI
Contemplated Improvements
As set forth in the Application, the Owner represents that it will construct a 294,323
square foot service and distribution facility, that it reasonably expects will cost approximately
$10,000,000 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 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 before
March 31, 2018, with completion on or before December 31, 2018.
VII
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 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 improvements 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 subject any abated taxes to recapture
pursuant to Article VIII.
VIII
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 actual disaster, for a period of one-
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
Tax Abatement Agreement, Page 4
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, standing 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 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 term 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 such manner as will not unreasonably interfere with the construction 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.
Tax Abatement Agreement, Page 5
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.
X
Assieaunent
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 deemed
to be received three 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:
Tax Abatement Agreement, Page 6
Owner: Port 10 Logistics, LLC
1800 Post Oak Blvd, Suite 360
Houston, TX 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, Harris 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.
Tax Abatement Agreement, Page 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:
LETICIA BRYSCH, City Clerk
APPROVED AS TO FORM:
IGNACIO RAMIREZ, SR., City Attorney
PORT 10 LOGISTICS, LLC, a
Delaware limited liability company
(Signature)
(Printed Name)
(Title)
Tax Abatement Agreement, Page 8
ATTEST:
(Signature)
(Printed Name)
(Title)
cobfs01'legal.Karrm FilmContractsTort 10 Logistics Tax Abatement Agreement•.TaxAbatementAgn:ement.docx
Tax Abatement Agreement, Page 9
Exhibit "A"
RESOLUTION NO, 2466
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, adopted by the City Council in December 1989, and
amended in July 1990, July 1992, September 1995, September 1997, September 1999,
February 12, 2004, February 9, 2006, January 8, 2009, March 10, 2011, March 14, 2013, and
March 12, 2015, have been reviewed by the City Council and it has determined that progress
towards the goals therein stated has been made- NOW THEREFORE
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,
TEXAS:
Section L 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: 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 affirmati vote of the City Council of the
City of Baytown this the 9th day of March, 2017.
Mayor
ATTE T:
S
L 'TIC
BRYSCH, City Cl
APPROVED AS TO FORM:
46MACIO RAMIREZ, SR., i)y Attorney
+eob&0111egahKaren+FileslCity CounciPResolutions\201 March %TaxAbatementGuidelines2017.doc
Exhibit "A"
TAX ABATEMENT GUIDELINES SUMMARY
OBJECTIVES
Primary job creation -- target industries.
Encourage LEEDS development.
Amount 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 2 100%
Year 3 80%
Year 4 60%
Year 5 50%
Year 6 0%
FACILITIES
Manufacturing.
THAT QUALIFY
Service & distribution.
LEEDS 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 one million dollar ($1,000,000) investment.
CRITERIA Retain or create at least five (5) jobs.
No serious adverse affect on jurisdictions.
Tax Abatement Guidelines Summary, Page Solo
GUI DELINES AND CRITEP i[A.
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) "Class A office" is characterized as buildings that have excellent location and access, attract
high quality tenants, and are 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 ferns, investment banking companies, and other high-profile companies.
(c) "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.
(d) "Agreement" means a contractual agreement between a property owner and/or lessee and an
eligible jurisdiction for the purposes of tax abatement.
(e) "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 I" but before the execution of the Agreement, or the sales price, if the
property was conveyed subsequent to January l s`, plus the agreed upon value of eligible
property improvements made after January 1", whichever is greater.
(f) "Deferred Maintenance" means improvement necessary for continued operations which do
not improve productivity or alter the process technology.
(g) "Economic Life" means the number of years a property improvement is expected to be in
service in a facility.
(h) "Expansion" means the addition of buildings, structures, fixed machinery or equipment for
purposes of increasing production capacity.
(i) "Facility" means property improvements completed or in the process of construction which
together comprise an integral whole.
Guidelines and Criteria for Reinvestment Zones, Page 1
(j) "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
(k) "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.
(1) "New Facility" means a property previously undeveloped which is placed into service by
means other than or in conjunction with expansion or modernization.
(m) "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 Houston Consolidated Metropolitan
Statistical Area and result in the creation of new permanent jobs and bring new wealth in.
(n) "Distribution Center Facility" means buildings and structures, including fixed machinery and
equipment, used or to be used primarily to receive, store, services or distribute goods or
materials owned by the facility operator.
(o) "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.
(p) "Service Facility" means buildings and structure, including fixed machinery and equipment,
used or to be used to service goods.
(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) "LEEDO" means Leadership in Energy and Environmental Design (LEEDO), which
encourages the use of certifiable systems, materials and practices designed to reduce energy
consumption and utilize recycled material.
SECTION 2
ABATEMENT AUTHORIZED
(a) Authorized Facility. A facility may be eligible for abatement if it is a Manufacturing
Facility, Research Facility, Distribution Center Facility, Class A office, Service Facility,
Guidelines and Criteria for Reinvestment Zones, Page 2
Regional Entertainment Facility, Research and Development Facility, or LEEDS certified
office building.
(b) Creation of New Value. Abatement may only be granted for
1. 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 LEEDS® certification for the building,
subject to such limitations as City Council and the property tax code may require.
(c) New and 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 LEEDS
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 Property. 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 are 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 subdivision 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 Abatement. Abatement shall be granted effective with the January 1
valuation date immediately following the date of execution of the agreement. One hundred
percent (100%) of the value of new eligible properties shall be abated for the first two (2)
years, followed by eighty percent (80%) abatement for the third year, sixty percent (60°'a)
Guidelines and Criteria for Reinvestment Zones, Page 3
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).
(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 one million dollars ($1,000,000) after the period of abatement has expired;
(2) 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 1 of the fourth year of the
abatement agreement and continue through the term of the abatement;
(3) 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
(4) 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,
Guidelines and Criteria for Reinvestment Zones, Page 4
(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 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 ofpennanent 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
proceeding 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) Variance. 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 ('/) vote of
the City Council.
Guidelines and Cntena for Reinvestment Zones, Page 5
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 at which interested persons are entitled to speak and present evidence
for or against the designation. Not later than the seventh (7th) day before the date of the
hearing notice of the hearing must be published in a newspaper having general circulation in
the municipality; 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) 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.
(c) 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 affect 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.
(d) Any applicant requesting a variance under Section 3(f) shall be approved by a vote of at least
three-fourths ('/) 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).
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) the estimated value to be abated and the base year value;
(2) the percent of value to be abated each year as provided in Section 2(g).
(3) the commencement date and the termination date of abatement;
Guidelines and Cntena for Reinvestment Zones, Page 6
(4) the proposed use of the facility, nature of construction, time schedule, map property
description and improvement list as provided in Application Section 3(b).
(5) the contractual obligations in the event of default, violation of terms or conditions,
delinquent taxes, recapture, administration and assignment as provided in Section
2(a), 2(f), 2(g), 6, 7 and 8, or other provisions that may be required for uniformity or
compliance with state law, and;
(6) the amount of investment, increase in assessed value and the average number of jobs
involved as provided in Section 2(h)(2); and
(7) 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 has been forwarded to the City Council.
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
Guidelines and Criteria for Reinvestment Zones. Page 7
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) I 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.
(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 are 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 annually shall evaluate each facility receiving abatement to ensure compliance with
the agreement and report possible violations of the contract and agreement to the City
Council.
Guidelines and Criteria for Reinvestment Zones, Page 8
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 March 14, 2017, and will remain in force through
March 13, 2019, 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.
\\cobfs0I\legal\K=n\FileMCommunity Development Tax Abatement Guidelines.Guidelines4TaxAbatementNReinvestmentzone2017.doc
Guidelines and Criteria for Reinvestment Zones, Page 9
Exhibit "B"
PONTIKES
DEVELOPMENT
February 1, 2018
Mr. Rick Davis
City Manager
City of Baytown
2401 Market Street
Baytown, TX 77520
RE: Application for Tax Abatement on behalf of Port 10 Logistics, LLC as owner of Port 10 Logistics
Center
Dear Mr. Davis:
Port 10 Logistics, LLC ("Owner") is pleased to submit this formal request to the City of Baytown for
consideration of available tax abatement for the first building in our project at 2700 East Freeway in
Baytown, TX (the "Port 10 Project"). 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 first request, we have prepared and completed the attached Application for Tax
Abatement in Baytown, TX as per the Baytown Reinvestment Zone Guidelines.
Pontikes Development, as the development manager for the Owner, has been performing due diligence
and property development preparation for the previous 11 months 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 multi -family 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. (See site selection below.) In our marketing efforts
and outreach to consultants specializing in our target tenant's real estate decisions, we have concluded
that 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 from the
City as tax abatement is critical to the successful development of the Port Ten 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 3,000,000 square foot industrial
park located near Thompson Road and 1-10 within the city limits of Baytown. The timeline for the entire
development is to be built over the next 4-5 years with construction commencing in the V quarter of
2018. We plan to develop approximately 1,000,000 square feet of distribution/warehouse space and
2,000,000 square feet of rail served distribution/warehouse space adjacent to the Union Pacific Coady
Rail Yard. The first building (which is the subject of this request) shall be a distribution/warehouse
building and consist of 294,323 square feet.
The 8 buildings currently planned for the park (including Building 1) consist entirely of institutional grade
industrial buildings with steel reinforced concrete construction tilt -walls, high grade structural steel
supporting components, 28'-32' 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
investments 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 25 FTE's when fully developed of which 5 FTE's
will be attributable to Building 1. Temporary construction jobs for Building 1 will be up to 50 full time
employees.
Site Selection
While the City is a prime site for industrial development, the Port Ten Project is located within the City
limits and Harris County. Similar developments in the surrounding environs are located within the City's
ET1 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 that 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 1 on the attached site plan. As stated above, the potential availability of tax relief is an
important component to the Owner's marketing efforts. Thus, the Owner is requesting the designation
of a reinvestment zone to include the approximately 246 acres in the Reinvestment Zone as shown on
the attached survey and legal description. 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 that the Abatement Period as defined in the Guidelines Summary begin on the January 11
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 e-mail at
afeinsilver@pontikesdev.com or via telephone at (713)266-1101.
Sincerely,
PORT 10 LOGISTICS, LLC
GaW
Alan D. Feinsilver
President
CC: Mr. Ron Bottoms
Mr. B. J. Simons
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: February 1, 2018
Company Name: Port 10 Logistics, LLC
Address: 1800 Post Oak Blvd, Suite 360
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: 2700 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 attached 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: 3/2018
Completion Date: 12/2018
If Modernization:
Estimated Economic Life of Existing Plant:
Added Economic Life from Modernization:
Permanent Employment Estimates (PEE'S)
Construction Man Years: 15
Peak Construction Jobs: 50
Years
Years
Current Plant Employment: 0
Number of Plant Jobs: ❑ Retained or ® Created
At startlopening: 5 in year: 5
5 years into operation: 5 in year: 5
Estimated Appraised Value on Site
Value upon Completion of
Project Personal Property and
Project Improvements Not Subject
Personal
Improvements
Land
Value January 1 Preceding
0
0
600,000
Abatement Agreement:
Est. Value of Improvements:
2,000,000
10,000,000
600,000
00,000
Est. Value of Abated Properties
2,200,000
11,000,000
660,000
After Abatement Expires:
Value upon Completion of
Project Personal Property and
Project Improvements Not Subject
To Abatement
VARIANCE
2,000,000
g
I'a-e 3
600,000
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? DYES ' 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
TITLE President
ADDRESS: 1800 Post Oak Blvd, Suite 360
Siigr�ature of Company Official
A an D Feinsilve , President
CITY: Houston STATE: TX ZIP -CODE: 77056
TELEPHONE: (713)266-1101
L-----
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EXHIBIT "A"
LEGAL DESCRIPTION OF OWNERS PROPERTY
METES AND BOUNDS DESCRIPTION
246.7988 ACRES
CITY OF BAYTOWN, HARRIS COUNTY, TEXAS
August 16, 2017
All that 246.7988 acre 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 July 3, 2012 to Fuller Thompson Ten, LTD as
recorded under Clerk'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, Hams County Texas, all of "Director's Lot No. 1" as
conveyed by Special Warranty Deed dated September 16, 2005 to Timothy M. Foster 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. Y791523 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 Reily 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, Hams County, Texas and being more
particularly described by metes and bounds as follows: (all bearings herein are based on the courses
described in said tract described in Clerk's File No. 20070709051 of the Oficial Public Records of Real
Property, Harris County, Texas)
BEGINNING at a 5/8 -inch iron rod found at the northeast comer of a tract of land as conveyed by
Quitclaim Deed dated April 26, 2006 to Cheryl A. Baker as recorded under Clerks File No. 201643823 of
the Official Public Records of Real Property, Harris County, Texas, the interior northwest corner of said
263.9945 acre tract and being situated in the south right-of-way line 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°51'28" East, for a distance of 195.04 feet to a 5/8 -inch iron rod found for comer;
North 86°42'21" East, for a distance of 104.82 feet to a 5/8 -inch iron rod with cap stamped
"BenchmarkEngr" set for comer;
North 86°32'20" East, for a distance of 417.11 feet to a concrete TxDOT monument found for comer;
Page 1 of 4 Pages
BEC Job No. 16077
L:\16077 - 250 Ac TRACT BAYTOWN TA[SURVEYD(4) Docs\(5) Metes and Bounds\16077 BNDRY WITH DIR LOTS.doc
246.7988 Acres
South 78102'09" East, for a distance of 190.78 feet to a point for comer, and from which a concrete
TxDOT monument was found bearing North 82°20' West, 1.85 feet;
North 86°42'21" East, for a distance of 736.98 feet to a 5/8 -inch iron rod with cap stamped
'BenchmarkEngr" set for comer at the northeast comer of said 263.9945 acre tract and the
northwest comer of a called 27.0581 acre tract as conveyed by General Warranty Deed dated
December 28, 2012 to Missouri Pacific Railroad Company as recorded under Clerk's File No.
20120601991 of the Official Public Records of Real Property, Hams County, Texas;
THENCE South 02°30'02" East, along the west line of said 27.0581 acre tract, for a distance of 3,944.73
feet to a 5/8 -inch iron rod with cap stamped "BenchmarkEngr" set for corner in the south line of said
263.9945 acre tract and the north line of a called 4.0 acre tract as conveyed by General Warranty Deed
dated June 22, 1998 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 81030'36" West, along the south line of said 263.9945 acre tract, for a distance of
1,711.80 feet to a 5/8 -inch iron rod with cap stamped `BenchmarkEngr" set for comer at the northeast
comer of said "west half of lot 8" and the northwest comer of a called "east 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. 20060286198 of the Official Public Records of Real Property, Harris County, Texas;
THENCE South 02°36'44" East, along the division line between said "west half of lot 8" and said "east
half of lot 8" for a distance of 1,318.29 feet to a 5/8 -inch iron rod with cap stamped `BenchmarkEngr" set
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-way line of said West Cedar Lynchburg Road,
for a distance of 165.15 feet to a railroad spike found for comer;
THENCE North 02°36'44" West, along the west line of said "west half of Lot 8" and the east line of a
called "lot 7" 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, Hams County, Texas, for a
distance of 1,317.52 feet to a 5/8 -inch iron rod with cap stamped "BenchmarkEngr" set for comer in the
south line of said 263.9945 acre tract;
THENCE North 81030'36" West, along the south line of said 263.9945 acre tract and said "Director's
Lot No.'s 1 thru 5", for a distance of 2,298.64 feet to a 5/8 -inch iron rod with cap stamped "South Texas"
found for comer in the east right-of-way line of Thompson Road (unknown width) at the northwest comer
of a called "Tract 1" as conveyed by Warranty Deed dated August 24, 2001 to Mary K. Ellison, et. al. as
recorded under Clerk's File No. V278078 of the Official Public Records of Real Property, Harris County,
Texas;
THENCE North 02°35'27" West, along the west line of said 263.9945 acre tract and the east right-of-
way line of said Thompson Road, for a distance of 937.03 feet to a 1/2 -inch iron rod found at the
southwest comer of a called 6.00 acres (Caldwell) as conveyed by Warranty Deed dated July 10, 1996 to
Charles W. & Debbie K. Caldwell as recorded under Clerk's File No. S015995 of the Official Public
Records of Real Property, Harris County, Texas;
Page 2 of 4 Pages
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246.7988 Acres
THENCE North 86058'57" East, along the south line of said 6.00 acres (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 corner 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 04°52'49" West, along the east line of said 6.00 acres (Sterling) and the west line of
said 120 -foot wide drainage easement, for a distance of 138.61 feet to a 5/8 -inch iron rod with cap
stamped'BenchmarkEngr" found for comer;
THENCE North 08°48'35" 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 (Truckking) as conveyed by
Warranty Deed dated January 5, 2006 to Truckking Ltd. as recorded under Clerk's File No. Z0098735 of
the Official Public Records of Real Property, 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 1/2 -inch iron rod found at the southeast comer of said 6.00 acre (Truckking)
tract, passing at a distance of 332.94 feet a 5/8 -inch iron rod with cap stamped "Town&Country" found at
the southeast corner of said 10.00 acre tract 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" East, 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 comer at the southwest comer of said 4.3574 acre tract and
the southeast comer 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, Harris 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 tract and the west line of said
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 comer at the northeast comer of said 9.8099 acre tract and the northwest corner 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 rod with cap stamped
"BenchmarkEngr" 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 "BenchmarkEngr" set for comer at the northeast comer of said 4.3574 acre tract 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, Texas;
THENCE South 03°26'12" East, along the east line of said 4.3574 acre tract and the west line of said
4.3505 acre tract, for a distance of 1,198.67 feet to a 3/4 -inch iron pipe found for comer;
Page 3 of 4 Pages
BEC Job No. 16077
U16077 - 250 Ac TRACT BAYTOWN Txi[SURVEYp(4) Docs\(5) Metes and Bounds116077 BNDRY WITH DIR LOTS.doc
246.7988 Acres
THENCE North 86°49'05" East, along the interior north line of said 263.9945 acre tract, passing at a
distance of 152.97 feet a 1 -inch iron pipe found at the southeast corner of said 4.3505 acre tract and
continuing in all for a total distance of 685.56 feet to a 5/8 -inch iron rod with cap stamped
"BenchmarkEngr" set for comer;
THENCE North 02°31'20" West, for a distance of 1.08 feet to a 1/2 -inch iron rod found for corner;
THENCE North 87°27'38" East, along the south line of said Quitclaim Deed for a distance of 86.26 feet
to a 1/2 -inch iron pipe found at the southeast comer of said Quitclaim Deed;
THENCE North 02°37'58" West, along the interior west line of said 263.9945 acre tract, for a distance
of 1,330.78 feet to the POINT OF BEGINNING of herein described tract and containing 246.7988 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 August 16, 2017. Job No. 16077.
Ronald G. Harrison, R.P.L.S.
Texas Registration No. 5342
TBPLS Firm Registration Number 10009000
Page 4 of 4 Pages
BEC Job No. 16077
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