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Ordinance No. 1,0920 RESOLUTION NO. 1092 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, REVIEWING THE CURRENT GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT IN A REINVESTMENT ZONE CREATED IN HARRIS COUNTY OR CHAMBERS COUNTY; RENEWING 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 civil priority of the City of Baytown; 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 communities within Harris and Chambers Counties must compete with other localities across the nation currently offering tax inducements to attract new plans and modernization projects; and WHEREAS, any tax incentives offered in the City of Baytown and Harris and Chambers Counties 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 adversely affect the competitive position of existing companies operating in the City of Baytown and Harris and Chambers Counties; 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, effective September 1, 1987, Texas law requires any eligible taxing jurisdiction to establish Guidelines and Criteria as to eligibility for tax abatement agreements prior to granting of any future tax abatement, said Guidelines and Criteria to be unchanged for a two year period unless amended by a three - quarters vote; and WHEREAS, City Council has determined that the Guidelines and Criteria as to eligibility for tax abatement agreements should be amended to conform with the criteria adopted by overlapping taxing jurisdictions; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: EXHIBIT B of Section 1: That the City of Baytown hereby amends the Guideline and Criteria for granting tax abatement in a reinvestment zone to read as shown in the attached Exhibit "A." Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown, this the 26th day of July, 1990. EMMETT O. HUTTO, Mayor ATTEST: EILEEN P. HALL, City Clerk DALL B. STRONG, City torney C :1:2:23 PAGE 2 of EXHIBIT B of EXHIBIT A 0 DEFINITIONS Section 1. (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) "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. (c) "Agreement" means a contractual agreement between a property owner and /or lessee and an eligible jurisdiction for the purposes of tax abatement. (d) "Base Year Value" means the assessed value of eligible property January 1 preceding the execution of the agreement plus the agreed upon value of eligible property improvements made after January 1 but before the execution of the agreement. (e) "Economic Life" means the number of years a property improvement is expected to be in service in a facility. (f) "Deferred Maintenance" means improvements necessary for continued operations which do not improve productivity or alter the process technology. (g) "Expansion" means the addition of buildings, structures, fixed machinery or equipment for purposes of increasing production capacity. (h) "Facility" means property improvements completed or in the process of construction which together comprise an integral whole. (i) "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. (j) "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. of of IXH113ET A • (k) "yew Facility" means a property previously undeveloped which is placed into service by means other than or in conjunction with expansion or modernization. {1) "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 a market outside the Houston Consolidated Metropolitan Statistical Area (CMSA) and result in the creation of new permanent jobs and bring new wealth in. (m) "Regional Distribution Center Facility" means buildings and structures, including fixed machinery and equipment, used or to be used primarily to receive, store, service or distribute goods or materials owned by the facility operator where a majority of the goods or services are distributed to other points. (n) "Regional Entertainment Facility" means buildings and structures, including fixed machinery and equipment, used or to be used to provide entertainment tnrough the admission of the general public. (o) "Regional Service Facility" means buildings and structures, including fixed machinery and equipment, used or to be used to service goods where a majority of the goods being serviced originate at least 100 miles away. (p) "Research Facility" means building 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. ABATEMENT AUTHORIZED Section 2. (a) Authorized Facility. A facility may be eligible for abatement if it is a: Manufacturing Facility, Research Facility, Regional Distribution Center Facility, Regional Service Facility, Regional Entertainment Facility or Other Basic Industry. (b) Creation of New Value. Abatement may only be granted for the additional value of eligible property improvements made subsequent to and listed in an abatement agreement between the City of Bavtown and the property owner and lessee (if required), subject to such limitations • as City Council- may require. PG. 2 of EXH. A of EXH. B of EXH. A • (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. (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 15 years; property owned or used by the State of Texas or its political subdivisions or by any organization owned, operated or directed by a political subdivision of the State of Texas. (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 of the value of new eligible properties shall be abated for up to two years during the period of construction, followed by one hundred percent abatement for the first year after construction, seventy -five percent percent abatement for the second year after construction and fifty percent abatement for the third year after construction. If the period of construction exceeds two years the facility shall be considered completed for purposes of abatement and in no case shall the period of abatement inclusive of construction and completion exceed five 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 $1 million after the period of abatement has expired; PG. 3 of EXH. A of EXH. B of EXH. A (2) must be expected to prevent the loss of employment, retain or create employment for at least 15 people on a permanent basis; (3) must not be expected to solely or primarily have the effect of transferring employment from one part of a county to another; 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 at6tement 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; and, (3) the additional value of new eligible property shall be taxable in the manner described in Section 2. (g). APPLICATION Section 3. (a) Any present or potential owner of taxable property in City of Bavtown may request the creation of a reinvestment zone or tax abatement by filing a written request with the City of Baytown 0, The application shall consist of a cempleted 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; a map and property description; a time schedule for undertaking and completing the proposed improvements. in the case of modernization a statement of 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 Citv Council deems appropriate for evaluating the financial capacity and other factors of the applicant. (c) Upon receipt of a completed application, the Mayor or tine City of Baytown 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 prepare a feasibility study setting out the impact of the proposed reinvestment zone and tax abatement. The feasibility study shall include, but not be limited to, an estimate of the economic effect of the creation of the zone and the abatement of taxes and the benefit to the eligible jurisdiction and the property to be included in the zone. PG. 4 of EXH. A of EXH. B of EXH. A • (e) The City Council shall not establish a reinvestment zone or enter into an abatement agreement if it finds that the request for the abatement was filed after the commencement of 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 a designated member of City Council , provided, however, the total duration of an abatement shall in no instance exceed five years. Such request shall include a complete description of the circumstances explaining why the applicant should be granted a variance. Approval of a request for variance requires a three - fourths (3/4) vote of the City Council PUBLIC HEARING AND APPROVAL Section 4. (a) The governing body of a city may not adopt an ordinance, or a county a resolution, 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. Notice of the hearing shall be clearly posted or identified on City Council's agenda at least 30 days prior to the hearing. The presiding officers of eligible jurisdictions shall be notified in writing at least 15 days prior to the hearing. (b) Prior to entering into a tax abatement agreement the City Council may, at its option, hold a public hearing at which interested shall be entitled to speak and present written materials for the approval of the tax abatement agreement. persons or against (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 (3/4) of the City Council No application which deviates from the requirements of these Guidelines and Criteria shall be approved unless accompanied by a request for variance as provided under Section 3. (f). PG. 5 of EXH. A of EXH. B of EXH. A • AGREEMENT Section 5. (a) After approval the City Council shall formally pass a resolution and execute an agreement with the owner of the facility and lessee as required which shall include: (1) estimated value to be abated and the base year value; (2) percent of value to be abated each year as provided in Section 2. (g); (3) the commencement date and the termination date of abatement; (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) contractual obligations in the event of default, violation of terms or conditions, delinquent taxes, recapture, administration and assignment as provided in Sections 2. (a), 2. (f), 2. (g), 6., 7. and 8., or other provisions that may be required for uniformity or state law, and; (6) amount of investment and average number of jobs involved. Such agreement shall normally be executed within 60 days after the applicant has forwarded all necessary information and documentation to the City Council RECAPTURE Section 6. (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 for a period of one year during the abatement period, the 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 Citv of Bavtown within sixty days from the date of termination. (b) Should the Citv Council determine that the company or individual is in default according to the terms and conditions of it's agreement, the City t,ounci1 shall notify the company or individual in writing at the address stated in the agreement, and if such is not cured within sixty (60) days from the date of such notice ( "Cure Period "), then the agreement may be terminated. (c) in the event that 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. PG. 6 of EXH. A of EXH. B of EXH. A 0 ADMINISTRATION Section 7. (a) The Chief Appraiser of the County shall annually determine an assessment of the real and personal property comprising the reinvestment zone. Each year, the company or individual receiving 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 levies 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 its safety standards. (c) Upon completion of construction the jurisdiction which created the zone shall annually evaluate each facility receiving abatement to ensure compliance with the agreement and report possible violations to the contract and agreement to the Cit-v Council and its attorney. ASSIGNMENT Section 8. Tax abatement agreements may be assigned to a new owner or lessee of the facility with the written consent of the Citv 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 contemplates 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 are indebted to the City of Baytown for ad valorem taxes or other obligations. SUNSET PROVISION Section 9. (a) These Guidelines and Criteria are effective upon the date of their adoption and will remain in force for two years, at which time all reinvestment zones and tax abatement contracts created pursuant to its provisions will be reviewed to determine whether the goals have been achieved. Based on that review, the Guidelines and Criteria will be modified, renewed or eliminated. (b) This policy is mutually exclusive of existing Industrial District Contracts and owners of real property in areas deserving of special attention as agreed by the affected jurisdictions. PG. 7 of EXH. A of EXH. B of EXH. A Ij• 19 EXHIBIT Property Description of Reinvestment Zone TRACT Z METES AND BOUNDS DESCRIPTION FOR A 24.921 ACRE (1,085,552 SQUARE FEET) TRACT OUT OF THE HARVEY WHITING SURVEY, ABSTRACT NO. 840 HARRIS COUNTY, 'TEXAS Being a tract or parcel containing 24.921 acres (1,085,552 square feet) of land out of the Harvey Whiting Survey, Abstract No. 840, Harris County, Texas, being also out of hose certain 99.782 acre tract, 31.394 acre tract and 2.52 acre tract in deeds to the Texas Olefins Company of record in Film Code Numbers 105 -03 -0493, 121 -02 -1001 and 137 -16 -1554 of the Deed Records of Harris County, Texas, and being more particularly described by metes and bounds as follows; COMMENCING at the southwest corner of the said 99.782 acre tract, from which a 8" wood post in concrete was found 0.38 feet North of said corner, and being in the northerly right- of-way line of Baker Road (80.00' wide); THENCE with the southerly line of said 99.782 acre tract and the northerly right-of-way line d-f said Baker Road, East for a distance of 1535.89 feet to a 1/2 -inch iron rod set for the POINT OF BEGINNING and being in the easterly right -of -way line of a San Jacinto River Authority Canal Right -of -way (210' wide) of record in Volume 1163, Page 576 of the Deed Records of Harris County, Texas and being the southwest corner herein; THENCE with said easterly right-of-way line of the San Jacinto River Authority Canal right -of -way and the westerly line herein, North 00 deg. 20 min. 49 sec. west for a distance of 371.32 feet (Deed - North 00 deg. 39 min. West, 370.24 feet) to a 1/2 -inch iron rod found for corner, the beginning of a curve to the left; THENCE with said easterly right -of -way line and the westerly line herein along said curve to the left having a central angle of 36 deg. 21 min., a radius of 395.62 feet a chord bearing of North 18 deg. 31 min. 19 sec. Test, a chord distance of 246.80 feet for an arc distance of 230.99 feet to a 1/2 -inch iron rod set for corner, the end of said curve; alllaiT C; of u• 10 Page 2 TXOL P THENCE, continuing with said easterly right -of -way line the westerly line herein, North and 36 deg. IS min. 29 sec. West (Deed = North 37 deg. 00 min. West) for a distance of feet to a 1/2 -inch iron rod Set for the northwest 1219.30 corner herein; THENCE leaving said easterly right -of -way line, northerly line herein, with the South 89 deg, 47 min. 32 sec. a distance of 928.55 feet pass the east line of said East acre tract and the westerly line of said 2.52 acre tract, at a distance of 1368.59 feet pass the easterly line of said 2.52 acre tract and the westerly line of said 31.394 acre tract, and continuing for a total distance of 1498.29 feet to a 1/2 -inch iron rod set for the northeast corner herein, being also in the easterly line of said 31.394 acre tract and being in the westerly right -of -way line of Decker Drive (State Highway No. 330); THENCE with the easterly line of said 31.394 acre tract, the westerly right -of -way line of said Decker Drive and the easterly line herein, South 39 deg. 29 min. 00 sec. East (Deed = South 40 deg. 02 min. East) for a distance of 180.53 feet to a 1/2 -inch iron rod set for an angle easterly line herein point in the , being also the most easterly point of the subject 24.921 acre tract, and from which a 5/8 -inch iron rod set for the most northerly corner of the Falstaff Distributing Com 2,516 acre pany tract was northeast corner of said 31.394 acre tract bears fsouth t39 deg. 29 min. 00 sec. East for a distance of 78.41 feet; THE -NCE leaving the easterly line Of said 31.394 acre tract, and continuing with the easterly line herein, South 28 deg. 43 min. 18 sec. West for a distance of 468.59 feet. to a 1/2- inch iron rod not for corner; THENCE continuing with said easterly line, North 89 deg. 47 min. 32 sec. Nest for a distance of 246.93 feet to a 1/2 -inch iron rod set for corner; THENCE continuing with said easterly line min. 28 sec. East for a distance of 493.42�feetuto a 00 1/2-inch iron rod set for corner; PG. 2 of EXH. C of EXH. A Page 3 1 TXOL P THENCE continuing with said easterly line, North 89 deg. 47 min. 32 sec. West for a distance of 176.24 feet to a 1/2 -inch iron rod set for corner; , THENCE continuing with said easterly line, South 00 deg. 11 min. 38 sec. West for a distance of 540.94 feet to a 1/2-inch iron rod set for the southeast corner herein, being also in the northerly right -of -way line of said Baker Road; THENCE with said northerly right-of-way line, and the southerly line herein, West at a distance of 39.33 feet pass a 1/2 -inch iron rod set for the southwest corner of said 31.394 acre tract and being the southeast corner of said 99.782 acre tract, and continuing for a total distance of 159.33 feet to the POINT OF BEGINNING and containing 24.921 acres (1,085,552 square feet) of land, more or less_ March 26, 1991 Primary Site Y r i� i� 1572 1 53to . O SUVk r PG. 3 of EXH. C of EXH. A i TRACT 2 METES AND BOUNDS DESCRIPTION FOR 19.066 ACRE (830,499 SQUARE FEET) TRACT OUT OF THE HARVEY WHITING SURVEY ABSTRKCT 840, HARRIS COUNTY, TMCAS Being a tract or parcel containing 19.066 acre (830,499 square feet) of land out of and a part of the Harvey Whiting Survey, Abstract 840, Harris County, Texas and being a part of that certain 32.425 acre tract of land conveyed to Frank Thielen et al by the estate of Webb Greer, by Deed dated July 14, 1967 as recorded in Volume 6837, Page 301, of the Harris County Deed Records, and being more particularly described by metes and bounds as follows: COMMENCING at a 5/8 -inch iron rod found at the Northwest corner of said 32.425 acre tract, said point being on the Southwest right-of-way line of Decker Drive (State Hwy. 330); THENCE South 39 deg. 29 min. 00 sec. East along the Southwest right -of -way line of Decker Drive for a distance of 1069.41 feet to a 1/2 -inch iron rod set for corner, and being the POINT OF BEGINNING and the most Northerly point of the 19.066 acre (830,499 square feet) tract of land herein described; THENCE continuing South 39 deg. 29 min. 00 sec. East along the Southwest right -of -way line of Decker Drive for a distance of 78.41 feet to a 5/8 -inch iron rod found for corner; THENCE South 00 deg. 38 min. 52 sec. West along the West line of Falstaff Distributing Company 2.5165 acre tract for a distance of 665.40 feet to a 1/2 -inch iron rod found for corner; THENCE south 89 deg. 19 min. 19 sec. East for a distance of 200.02 feet to a 1/2 -inch iron rod found for corner on the West line of a Kansas city Southern Railroad right-of-way and being the most Northeasterly corner of the herein described 19.066 acre tract; THENCE South 00 deg. 38 min. 52 sec. West along said West right --of -way line for a distance of 412.31 feet to a 1/2 -inch iron rod set for corner; PG. 4 of EXH. C of EXIT. A, • � 0 Page 2 TXOL B THENCE continuing along said West right -of -way line and along a curve to the right with a central angle of 09 deg. 29 min. 04 sec., a radius of 1843.26 feet, a chord bearing of South 05 deg. 23 min. 25 sec. West, a chord distance of 304.79 feet for an arc distance of 305.97 feet to an "X" set in rail for corner at the intersection of said West right -of -way line with the North right -of -way line of a public road known as Baker Road (80 feet wide); THENCE North 89 deg. 59 min. 10 sec. West along the North right -of -way line of Baker Road (80 feet wide) for a distance of 857.40 feet to a 1/2 -inch iron rod set for corner being the most Southwesterly corner of the herein described 19.066 acre tract; THENCE North 00 deg. 11 min. 38 sec. East for a distance of 540.94 feet to a 1/2 -inch iron rod set for corner; THENCE South 89 deg. 47 min. 32 sec. East for a distance of 176.24 feet to a 1/2 -inch iron rod set for corner; THENCE North 00 deq. 12 min. 28 sec. West for a distance of 493.42 feet to a 1/2 --inch iron rod set for corner; THENCE South 89 deg. 47 min. 32 sec. East for a distance of 246.93 feet to a 1/2 -inch iron rod set for corner; THENCE North 28 deg. 43 min. 18 sec. East for a distance of 468.59 feet to the POINT OF BEGINNING and containing 19.066 acres (830,499 square feet) of land. March 26, 2991 Texas Olefins Boundary ,pry PG. 5 of EXH. C of EXH. A 1, e . o WOW�D ARCS 1F= `jA '. TT4572 ;�y�S51�•'y0 ` 4 SUFk TRACT 3 METES AND BOUNDS DESCRIPTION FOR A 35.258 (1,535,838 SQUARE FEET) ACRE TRACT OUT OF THE HARVEY WHITING SURVEY ABSTRACT NO. 840 HARRIS COUNTY, TEXAS I AS SHOWN ON SURVEY DATED MARCH 19, 1991, AND PREPARED BY RON ARCENEAUX & ASSOCIATES IsBeing a tract or parcel containing 35.258 acres (1,535,838 square feet) of land out of the Harvey Whiting Survey, Abstract No. 840, Harris County, Texas, being also out of those certain 99.782 acre tract, 31.394 acre tract and 2.52 acre tract in deeds to the Texas Olefins Company of record in Film Code Numbers 105 -03 -0493 and 121 -02 -1001 and 137 -16 -1554 Of the Deed Records of Harris County, Texas, and being more particularly described by metes and bounds as follows; '1i BEGINNING at a 8" wood post in concrete found Ear the northwest corner of said 99.782 acre tract, being also in the easterly right -of -way line of a San Jacinto River Authority Canal Right -Of -Way (210, wide) of record in Volume 1163, Page 576 of the Deed Records of Harris County, Texas and being the northwest corner herein: THENCE, with the northerly line of said 99.782 acre tract and the northerly line herein, North 89 deg. 11 min. 20 sec. East for a distance of 1423.75 feet (Deed = North 89 deg. 25 min. 36 sec. East, 1427.12 feet) to a broken 8" wood post in concrete found for the most northerly northeast corner of said 99.782 acre tract, being also the northeast corner herein and being in the westerly right -of -way line of Decker Drive (State Highway No. 330); THENCE, with the easterly line of said 99.782 acre tract, the easterly line herein, and the westerly right -of -way line of said Decker Drive, South 33 deg. 20 min. 03 sec. East for a distance of 456.13 feet (Dead = South 33 deg. 15 min. 57 sec. East, 446.77 feet) to a 5/8 -inch iron rod found for an angle point, being the most easterly northeast corner of said 99.782 acre tract and being the northwest corner of said 31.394 acre tract; PG. 6 of EXH. C of EXH. A Page 2 TX0L 0 THENCE, continuing with the northeasterly line of said 31.394 acre tract, the easterly line herein and the westerly right - of -way line of said Decker Drive, South 39 deg. 29 min. 00 sec. East (Deed = South 40 deg. 02 min. East) for a distance of 888.88 feet to a 1/2 -inch iron rod set for the southeast corner herein; THENCE, leaving the northeasterly line of said 31.394 acre tract, with the southerly line herein, North 89 deg. 47 min. 32 sec. West, at a distance of 129.70 feet pass the westerly line of said 31.394 acre tract and the easterly line of said 2.52 acre tract, at a distance of 569.74 feet pass the easterly line of said 2.52 acre tract and the westerly line of said 99.782 acre tract, and continuing for a total distance of 1498.29 feet to a 1/2 -inch iron rod set for the southwest corner herein, and being in the easterly right -of- way line of said San Jacinto River Authority Canal; THENCE with said easterly right -of -way line and the westerly line herein, North 36 deg. 15 min. 29 sec. West (Deed = North 37 deg. 00 min. West) at 149.02 feet pass a 1/2 -inch iron rod set for southwesterly corner of a-- 3.100 acre Diamond Shamrock Corporation fee strip, at 430.92 feet pass a 1/2 -inch iron rod set for northwesterly corner of said fee strip and continuing for a total distance of 1253.07 feet to a 1/2 -inch iron rod set for corner, being an angle point herein and being in the westerly line of said 99.782 acre tract; THENCE, continuing with said easterly right -of -way line, the westerly line herein and the westerly line of said 99.782 acre tract North 00 deg. 09 min. 13 sec. West for a distance of 31.12 feet to the POINT OF BEGINNING and containing 35.258 acres of land, more or less. SAVE AND EXCEPT, that certain 3.100 acre tract of land, conveyed to the Diamond shamrock Corporation by instrument filed of record in Film Code Number 017 -90 -2526 of the Deed Records of Harris County, Texas, being a part of that certain 7.6844 acre tract of record in the County Clerk's File No. F175685 and being all of that certain 0.2173 acre tract of record in County Clerk's File No. J752753 both of the Deed Records of Harris County, Texas, said 3.100 acre tract being more particularly described by metes and bounds as follows; 1• PG. 7 of EXH. C of EXH. A 10 ,b Page 3 TXOL O BEGINNING at the broken 8" wood post in concrete found for the most northerly northeast corner of above said 35.258 acre tract; THENCE, with the westerly right -of -way line of said Decker Drive and the easterly line of said 35.258 acre tract, South 33 deg. 20 min. 03 sec. East for a distance of 106.43 feet (Deed = South 33 deg. 33 min. 44 sec. East, 102.93 feet) to a concrete monument found at the southeast corner of said 7.644 acre tract; THENCE, leaving the easterly line of said 35.258 acre tract, with the southerly line of said 7.644 acre tract, South 51 deg. 06 min. 12 sec. West for a distance of 160.19 feet (Deed = South 51 deg. 02 min. 31 sec. West, 158.35 feet) to a concrete monument found for an angle point; THENCE, continuing with said southerly line, North 35 deg. 28 min. 09 sec. West for a distance of 59.78 feet (Deed = North 38 deg. 57 min. 29 Sec. West, 60.00 feet) to a concrete monument found for an angle point; THENCE, continuing with said southerly line, South 51 deg. 01 min. 26 sec. West for a distance of 877.64 feet (Deed = South 51 deg. 02 min. 31 sec. West, 874.39 feet) to a concrete monument found for an angle point; THENCE, continuing with said southerly line, South 36 deg. 53 min. 40 sec. East, (Deed = South 36 deg. 59 min. 00 sec. East, 186.57 feet) for a distance of 186.67 feet to a concrete monument found for an angle point; THENCE, continuing with said southerly line, South 45 deg. 01 min. 23 sec. West at a distance of 131.37 feet pass a concrete monument found, and continuing for a total distance of 140.63 feet (Deed - South 44 deg. 50 min. 29 sec. West, 131.35 feet) to a 1/2 -inch iron rod set for the southwest corner herein, being also in the easterly right -of -way line of said San Jacinto River Authority Canal, and being in the westerly line of said 35.258 acre tract; PG. 8 of EXIT. C of EXH. A Page 4 TXOL 0 THENCE, with the said easterly right -of -way line, the westerly line of said 35.258 acre tract and the westerly line herein, North 36 deg. 15 min. 29 sec. West for a distance of 281.90 feet to a 1/2 -inch iron rod set for the northwest corner herein; THENCE, leaving the westerly line of said 35.258 acre tract, with the northwesterly line herein, North 51 deg. 02 min. 07 sec. East at a distance of 5.77 feet pass a concrete monument found, and continuing for a total distance of 1016.02 feet (Deed = North 51 deg. 02 min. 31 sec. East, 1010.57 feet) to a concrete monument found for an angle point; THENCE, continuing with said northwesterly line, North 38 deg. 57 min. 53 sec. West (Deed = North 38 deg. 57 min. 29 sec. West) for a distance of 60.00 feet to a 1/2 -inch iron rod set for an angle point; THENCE, continuing with said northwesterly line, North 51 deg. 02 min. 07 sec. East for a distance of 42.14 feet (Deed = North 51 deg. 02 min. 31 sec. East, 36.43 feet) to a 1/2- inch iron rod set for the northwest corner herein and being in the northerly line of said 35.258 acre tract; THENCE, with the northerly line of said 35.258 acre tract and the northerly line herein, North 89 deg. 11 min. 20 sec. East for a distance of 152.27 feet (Deed = North 89 deg. 30 min. 45 sec. East, 156.77 feet) to the POINT OF BEGINNING and containing 3.100 acres of land, more or less. March 21, 1991 option Tract PG. 9 of EX.R. C of EXH. A � • e �� � ' � J . .mow ar �r�4—r.�'t l� _ J / r� � O / 14 METES AND BOUNDS DESCRIPTION FOR A 24.921 ACRE (1,085,552 SQUARE FEET) TRACT OOT OF THE HARVEY WHITING SURVEY, ABSTRACT NO. 840 HARRIS COUNTY, Tmg r , Being a tract or parcei containing 24.921 acres square feet) of land out of the Harvey (1,085,552 Abstract rio. 840 Y whiting Survey, Harris County, Texas, being also out of those certain 99.782 acre tract, 31.394 acre tract and 2.52 acre tract in deeds to the Texas Olefins Company of record in Film Code Numbers 105-03-0493, 121 -02 -1002 and 137 -16 -1554 of the Deed Records of Harris County, Texas, and being more particularly described by metes and bounds as follows; COMMENCING at the southwest corner of the said 99.782 acre tract, from which a 8" wood Post in concrete was found 0.38 feet North of said corner, and being in the northerly right - of -way line of Baker Road (80.00, wide); THENCE with the southerly line of said 99.782 acre tract and the northerly right -of -way ,line of said Baker Road, East for a distance of 1535.89 feet to a 1/2 -inch iron rod set for the POINT OF BEGINNING and being in the easterly right -of -way line of a San Jacinto River Authority Canal h (210' wide) of record in volume 1163,Page 576RofthetDead Records of Harris County, Texas and being the southwest corner herein; THENCE with said easterly right -o€ -way line of the San Jacinto River Authority Canal right -of -way and the westerly line herein, North 00 deg. 20 min. 49 sec. West for a distance of 371.32 f set (Deed - North 00 deg. 39 min. West, 370.24 feat) to a 1/2 -inch iron rod found for corner, the beginning of a curve to the left; THENCE with Said easterly right -of -way line and the westerly line herein along said curve to the left having a central angle of 36 dog. 21 min., a radius of 395.62 feet a chard bearing of North 18 deg. 31 min. 19 sac. West, a chord distance of 246.80 teat for an arc distance of 250.99 feet to a 1/2 -inch iron rod set for corner, the end of said curve; E(H113orr j3 of A a ■ Page 2 TXOL P THENCE, continuing with said easterly right-of-way the westerly line herein, Nor (Deed = North 37 North 36 deg, 15 min. line and deg. 00 min. West) for a distance of sec. West feet to a 1/2 -inch iron rod „ set for the northwest 1219.30 herein; corner THENCE leaving said easterly northerly line herein, South89rdeht -of -way line, with the a distance of 328.55 feet deg min• 32 sec. acre tract and the westerly the east line of saida99.782 a distance of 1368.59 y line °f Said 2.52 acre 2.52 acre tract feet pass the easterly ract, at tract, and rcnthe westerly line of Y line of said said 31.394 acre a 1/2 -inch continuing a total distance of 1498.29 feet to iron red set for the being also in the easteri northeast corner being in the Y line of said 31.394 acre tract (State westerly right -of -way line of Decker Drive Y No. 330); THENCE with the easterly line of westerly right -of -way line of said1dDecker4 acre tract easterly line herein, South 39 de the Drive and the (Deed = South 40 deg. 02 min. East q- 29 min. 00 sec. East feet to a 1/Z _inch iron min. Ea for for a distance of 180.53 easterly line herein an angle point in the the subject 24.921 acrebtract also the most easterly rod set for , and from which a 5 /Binchniron Falstaff Distributing Most northerly corner of northeast corner of Pant tract was the 2•c= acre deg. 29 min. 00 sec. said 31.394 round the East for a distance Of 78-41 bears s South 39 THENCE at' leaving the easterly line of and continuing with the easterly line here l'394 acre tract, 43 min. Z8 soa, West for a distance of 468.59 feet. Z8 deg inch iron rod sat for corner; a 1/2- THENCE continuing with Said easterly min. 32 one. West for a distance of 246.93ereatrto a9 d iron rod set for co 29. 47 mar. 1/2 -inch THENCE continuing with said easterly min. 28 sec. East for a distance of iron rod set for corner; PG. 2 of EXH. D of EXH. A line► South 00 deq. 12 493.42 feat to a 1/2 -inch �r r i Page 3 TXOL P THENCE continuing with said easterly line, North min. 32 sec. West for a distance of 176.24 feet to agld2ginch iron rod set for corner; / THENCE continuing with said easterly line, min. 38 sec. West for a distance of 540.94 feSouth 00 deg. 11 iron rod set for the southeast corner herein 1 /2-inch the northerly right -of -way line of said Baker Road; also in THENCE with said northerly right-of-way southerly line herein, West at a distanceof line, and the a 1/2 --inch iron rod set for the southwest come= feat pass 31.394 acre tract and being the southeast of said 99.782 acre tract, and continuing for a total distance an said 159.33 feet to the POINT OF BEGINNING distance 21 of acres (1,085,552 square feet) of land, more cortless. 24.921 March 26, 1991 Primary site PG. 3 of EXH. D of EXH. A TRACT 92 METES AND BOUNDS DESCRIPTION FOR 19.066 ACRE (830,499 SQUARE FEET) TRACT OUT OF THE HARVEY WHITING SURVEY ABSTRACT 840, HARRIS COUNTY , TEXAS Being a tract or parcel containing 19.066 acre (830,499 square feet) of land out of and a part of the Harvey Whiting Survey, Abstract 840, Harris County, Texas and being a part of that certain 32.425 acre tract of land conveyed to Frank Thielen et al by the estate of Webb Greer, by Deed dated July 14, 1967 as recorded in Volume 6837, Page 301, of the Harris County Deed Records, and being more particularly described by metes and bounds as follows: COMMENCING at a 5/8 -inch iron rod found at the Northwest corner of said 32.425 acre tract, said point being on the Southwest right-of-way line of Decker Drive (State Hwy. 330); THENCE South 39 deg. 29 min. 00 sec. East along the Southwest - right -of -way line of Decker Drive for a distance of 1069.41 feet to a 1/2 -inch iron rod set for corner, and being the POINT OF BEGINNING and the most Northerly point of the 19.066 acre (830,499 square feet) tract of land herein described; THENCE continuing South 39 deg. 29 min. 00 sec. East along the Southwest right -of -way line of Decker Drive for a distance of 78.41 feet to a 5/8 -inch iron rod found for corner, THENCE South 00 deg. 38 min. 52 sec. West along the West line of Falstaff Distributing company 2.5165 acre tract for a distance of 665.40 feet to a 1/2 -inch iron rod found for corner; THENCE South 89 deg. 19 min. 19 sec. East for a distance of 200.02 feet to a 1/2 -inch iron rod found for corner on the West line of a Kansas City Southern Railroad right -of -way and being that most Northeasterly corner of the herein described 19.066 acre tract; THENCE South 00 deg. 38 min. 52 sec. West along said West right -of -way line for a distance of 412.31 feet to a 1/2 -inch iron rod act for corner; PG. 4 of EXH. D of EXH. A � 10 Page 2 TXOL B THENCE continuing along said West right -of -way line and along a curve to the right with a central angle of 09 deg. 29 min. 04 sec., a radius of 1843.26 feet, a chord bearing of South 05 deg. 23 min. 25 sec. West, a chord distance of 304.79 feet for an arc distance of 305.97 feet to an "X" set in rail for corner at the intersection of said West right-of-way line with the North right -of -way line of a public road known as Baker Road (80 feet wide); THENCE North 89 deg. 59 min. 10 sec. West along the North right -of -way line of Baker Road (80 feet wide) for a distance of 857.40 feet to a 1/2 -inch iron rod set for corner being the most Southwesterly corner of the herein described 19.066 acre tract; THENCE North 00 deg. 11 min. 38 sec. East for a distance of 540.94 feet to a 1/2 -inch iron rod set for corner; THENCE South 89 deg. 47 min. 32 sec. East for a distance of 176.24 feet to a 1/2 -inch iron rod set for corner; THENCE North 00 deg. 12 min. 28 sec. -- West for a distance of 493.42 feet to a 1/2 -inch iron rod set for corner; THENCE South 89 deg. 47 min. 32 sec. East for a distance of 246.93 feet to a 1/2 -inch iron rod set for corner; THENCE North 28 deg. 43 min. 18 sec. East for a distance of 468.59 feet to the POINT OF BEGINNING and containing 19.066 acres (830,499 square feet) of land. March 26, 1991 Texas Olefins Boundary PG. 5 of EXH. D of EXH. A �/ A,q S F�;'•. V � 4572 ms a• / .e qti� ~�Y•tr` �