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Ordinance No. 5,899910613- 17 ORDINANCE NO. 5899 AN ORDINANCE AMENDING ORDINANCE NO. 5848 OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AN ORDINANCE NOMINATING AN AREA AS ENTERPRISE ZONE NO. 1 PURSUANT TO THE TEXAS ENTERPRISE ZONE ACT (TEXAS CIVIL STATUTES, ARTICLE 5190.7); PROVIDING TAX INCENTIVES; DESIGNATING AN AUTHORIZED REPRESENTATIVE TO ACT IN ALL MATTERS PERTAINING TO THE NOMINATION AND DESIGNATION OF THE AREA DESCRIBED HEREIN AS AN ENTERPRISE ZONE AND REINVESTMENT ZONE; AND FURTHER DESIGNATING A LIAISON TO ACT ON ALL MATTERS PERTAINING TO THE ENTERPRISE ZONE ACT ONCE DESIGNATED BY THE TEXAS DEPARTMENT OF COMMERCE. WHEREAS, on April 25, 1991, the City Council of the City of Baytown passed Ordinance No. 5848 nominating an area as Enterprise Zone No. 1; and WHEREAS, there was an error in one of the dimensions provided in said ordinance that requires correction; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1, That Section 1 of Ordinance No. 5848 is herby amended to read as follows; Beginning at the intersection of the south Right of Way (ROW) of West Jack Avenue and the east ROW of North Pruett and running thence east along alignment of the south ROW of East Jack Avenue approximately 4,100 feet to the west ROW of North Seventh Street; Thence, south along the west ROW of North Seventh Street 200 feet to the north ROW of East James Avenue; Thence, east along the north ROW of East James Avenue 600 feet; Thence, north 250 feet; Thence, west 80 feet; Thence, north 270 feet to the north ROW of East Lobit Avenue; Thence, north 120 feet; Thence, west 50 feet; Thence, north 150 feet to the north ROW of East Adoue Avenue; Thence, east 140 feet to the north ROW of East Adoue Avenue (said point also being 150 feet west of the west ROW North Alexander Drive) ; Thence, north 250 feet to the north ROW of East Hunnicutt Avenue; Thence, east 50 feet along the north ROW of East Hunnicutt Avenue (said point being 100 feet west of N. Alexander Drive); Thence, north 100 feet; Thence, west 100 feet; Thence, north 150 feet to the north ROW of East Fayle Avenue; Thence, east 100 feet along the north ROW of East Fayle Avenue to a point 1.00 feet west of the west ROW of North Alexander Drive; Thence, 500 feet north to the north ROW of Alford Avenue (said point being 100 feet west of North Alexander Drive); Thence, west 100 feet along the north ROW of Alford Drive; Thence, north 100 feet;. Thence, east 100 feet; Thence, north 500 feet to a point 100 feet north of the north ROW of Pearl Avenue (said point also being 100 feet west of the west ROW of North Alexander Drive); Thence, west 50 feet; Thence, north 150 feet to the north ROW of Peggy Avenue; Thence, west to the east ROW of North Eighth Street; Thence, north to the intersection of the east ROW of North Eighth Street and the south ROW of Ward Road; Thence, east 200 feet (said point also being 150 feet west of the west ROW of North Alexander Drive); Thence, north 500 feet to a point along the east ROW of Beaumont Road; Thence, southeast 400 feet along the south boundary of the Hill Terrace subdivision to a point 100 feet west of the west ROW of North Alexander Drive; Thence, north 150 feet to the north ROW of Pleasant Drive; Thence, south 50 feet along the north ROW of Pleasant Drive; Thence, northeast 135 feet, Thence, east 100 feet to the west ROW of North Alexander Drive; - 2 Thence, north to the intersection of the north ROW of Fortune Drive and west ROW of North Alexander Drive; Thence, northwest 50 feet along the north ROW of Fortune Drive; Thence, northeast 400 feet to a point 100 feet parallel to the west ROW of North Alexander Drive; Thence, southeast 50 feet to the west ROW of North Alexander Drive; Thence, north along the west ROW of North Alexander Drive to the intersection of the north ROW of Largo Street and west ROW of North Alexander Drive; Thence, northwest 50 feet along the north ROW of Largo Street; Thence, northeast 100 feet; Thence, northwest 240 feet; Thence, east 210 feet; Thence, north 130 feet to the south ROW of Knowlton Street; Thence, east along the south ROW of Knowlton Street to the west ROW of North Alexander Drive; Thence, northeast 170 feet along the west ROW of North Alexander Drive; Thence, north 350 feet; Thence, southeast 40 feet; Thence, northeast 517 feet; Thence, southeast 40 feet; Thence, northeast 100 feet; Thence, southeast 170 feet to the west ROW of North Alexander Drive; Thence, north 100 feet along the west ROW of North Alexander Drive; Thence, northwest 200 feet; Thence, northeast 225 feet to the north ROW of Windy Lane; Thence, southeast 100 feet along the north ROW of Windy Lane; Thence, northeast 175 feet; - 3 - Thence, northwest 100 feet; Thence, northeast 175 feet to the south ROW of Sandy Lane; Thence, southeast along the south ROW of Sandy Lane to the west ROW of North Alexander Drive; Thence, southwest to the intersection of the east ROW of North Alexander Drive and south ROW of James Bowie Drive; Thence, east 300 feet along the south ROW of James Bowie Drive; Thence, S 87 degrees, 03' W 1200 feet; Thence, west 420 feet; Thence, southeast to the north ROW of Ivie Lee Street; Thence, west 30 feet along the north ROW of Ivie Lee Street to its intersection with Lacy Drive; Thence, northwest along the north ROW of Lacy Drive 100 feet; Thence, southwest 170 feet; Thence, northwest 300 feet; Thence, southwest 95 feet; Thence, northwest 130 feet; Thence, southwest 170 feet; Thence, southeast 530 feet; Thence, southwest 300 feet; Thence, south 300 feet (this point also being 80 feet southwest of the west ROW of Danubina Street and the north ROW of Town Circle); Thence, northwest 350 feet; Thence, southwest 292 feet to the north ROW of Ward Road; Thence, northwest 360 feet along the north ROW of Ward Road; Thence, southwest along the west ROW of North Tenth Street to its intersection with the north ROW of East James Street; Thence, west 60 feet; Thence, south along the west ROW of Deanne Street to the south ROW of East Texas Avenue; 4 - Thence, southeast along the south ROW of East Texas Avenue to the west ROW of Tri-Cities Beach Road; Thence, south along the west ROW of Tri-Cities Beach Road to its intersection with the north ROW of Spur 55; Thence, east 8,400 feet along the north ROW of Spur 55; Thence, southeast crossing State Highway Spur 55 to the northernmost western corner of Lot I of the Cedar Crossing Business Park; Thence, N 86 Deg 18 Min 47 Sec E a distance of 2356.07 ft; Thence, N 2 Deg 23 Min 44 Sec W a distance of 576.37 ft; Thence, N 88 Deg 20 Min 5 Sec E a distance of 971.02 ft; Thence, N 88 Deg 34 Min 40 Sec E a distance of 485.17 ft; Thence, east along the alignment of the south ROW of West Bay Road a distance of 1099.13 feet to a point along the east ROW of FM Highway 1405; Thence, south approximately 8500 feet to a point 50 feet north of the center line of McKinney Road (the entrance road to the U.S. Steel Plant); Thence, N 86 Deg 40 Min 39 Sec E a distance of 324.56 ft (this line is parallel to and 50 feet north of the centerline of McKinney Road which is the entrance road to the U.S. Steel Plant); Thence, N 00 Deg 8 Min 1 Sec W a distance of 1141.35 ft; Thence, N 55 Deg 26 Min 21 Sec a distance of 1667.30 ft; Thence, east 1093.05 feet to the most northerly northeastern corner of the U.S. Steel Plant 507.8 acre tract; Thence, north 5273.06 feet; Thence, N 59 Deg 56 Min 40 Sec W a distance of 1541.10 feet; Thence, north 2462.18 feet to a point on the south ROW of Rice Farm Road; Thence, east 11854.82 feet along the south ROW of Rice Farm Road; Thence, S 1 Deg 36 Min 42 Sec E a distance of 1451.60 ft; Thence, S 65 Deg 00 Min 00 Sec W a distance of 7000 ft; - 5 - Thence, S 25 Deg 00 Min 00 Sec E a distance of 8332.87 feet to a point on the west ROW of FM Highway 2354; Thence, south 3785.78 feet along the west ROW of FM 2354; Thence, west 4825 feet to a point on the Delhi Gas Pipeline ROW; Thence, southwest along the Delhi Gas Pipeline Corporation a distance of 1400 feet; Thence, S 89 Deg 57 Min 14 Sec W a distance of 3536.54 feet; Thence, N 52 Deg 4 Min 14 Sec W a distance of 1116.39 feet; Thence, N 00 Deg 8 Min 1 Sec W a distance of 3549.51 feet to a point 50 feet south of the centerline of McKinney Road (the entrance road to the U.S. Steel Plant); Thence, West 324.56 feet to a point on east ROW of FM 1405 50 feet south of McKinney Road (the entrance road to the U.S. Steel Plant); Thence, southwest approximately 1500 feet to the east side of the Cedar Bayou; Thence, north along the east side of the Cedar Bayou to the point of intersection with the west line of the Hoesch property; Thence, northeast along the western property line of the Hoesch Tubular Products tract a distance of approximately 670 feet; Thence, north 1110 feet along the general alignment of the western property line of the Hoesch Tubular Products tract to the southwest corner of Lot 33 of the Cedar Crossing Business Park; Thence, N 25 Deg 25 Min 58 Sec W a distance of 525.57 feet to a point on the south ROW of Spur 55 at the westernmost corner of Lot 1 of the Cedar Crossing Business Park; Thence, west along the south ROW of Spur 55 to its intersection with the west ROW of State Highway 146; Thence, north along the west ROW of State Highway 146 to its intersection with the north ROW of East Republic Avenue; Thence, west along the north ROW of East Republic Avenue to its intersection with the east ROW of South Main Street; Thence, north along the east ROW of South Main Street to its intersection with the north ROW of East Texas Avenue; Thence, west along the north ROW of East Texas Avenue to its intersection with the east ROW of North Pruett Street; =s= Thence, north along the east ROW of North Pruett Street to its intersection with the south ROW of West Jack Street and the Point of Beginning. Section 2: That this ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and City Council of the City PASSED by the affirmative vote of the of Baytown, this the 13th June, 1991. XMMEw O. HUTTO, Mayor EILEYEN P. -11AL—L, City Clerk A ACID RAMIREZ, R., City Attorney 0:1:66:18 - 7 - TAX ABATEMENT AGREEMENT FOR REAL PROPERTY LOCATED IN ENTERPRISE ZONE NO. 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 , t/!/ /►�G✓T��iN�- ( "Owner" ) , the owner of taxable property in Harris County, Texas, located in Enterprise Zone No. ( "Enterprise Zone") . I Authorization This Agreement is authorized by the Texas Enterprise Zone Act, V.A.T.S . Government Code, Chapter 2303 ; the Texas Property Redevelopment and Tax Abatement Act, V.A.T. S . Tax Code, Chapter 312, and Ordinance No. 53 q9 of the City Council of the City of Baytown, Texas, providing for the designation of the subject Enterprize Zone . II Definitions As used in this Agreement, the following terms shall have the meanings set forth below: a. Base Year Value means the appraised value of the property within the Enterprise Zone as certified by the Harris County Appraisal District as of January 1 preceding the execution of this Agreement plus the agreed upon value of eligible property improvements made after January 1 but before the execution of the Agreement . b. 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 January 1, 19 /f . c . Abatement means the full or partial exemption from ad valorem taxes of certain property in an Enterprise Zone designated for economic development purposes . d. 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 facility. New Eligible Property means Eligible Property construction which commences subsequent to the date of execution of this Agreement . e . Ineligible Property means 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 subsection (f) herein, 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 that has an economic life of less than fifteen (15) years, or any property owned or used by the State of Texas or its political 2 subdivisions or 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 . III Property The Enterprise Zone is an area within Harris County, Texas, more fully described in Exhibit A, attached hereto and made a part hereof . The property subject to this Agreement is located within such zone and more fully described in Exhibit B, attached hereto and made a part hereof . The Harris County Appraisal District has established the following values for the subject property as of January 1, 19 /r : Account No. 0.5.0 /ajoodo / Value Land 'Sa Improvements 419 () IV Value and Term of Agreement This tax abatement shall be effective with the January 1 valuation date immediately following the date of execution of this Agreement . Based upon the extent to which Owner creates jobs for qualified employees or increases the amount of investment expended on the expansion, development, and/or rehabilitation of the Property, the value of New Eligible Properties shall be in accordance with the following scale : 3 Year Abated Percentage of Value Abated 1 12 2 ✓ 3 4 � 5 The tax exemption shall be the lesser of (a) the tax due for a period of five (5) years or (b) fifteen thousand and no/100 dollars ($15, 000) . In any event, the cumulative tax exemption shall not exceed the total amount of the qualifying renovation/development investment . 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) . V Taxability During the period that this tax abatement is effective, taxes shall be payable as follows : (1) The value of Ineligible Property 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 Article IV. VI Contemplated Improvements As set forth in the Application, attached�as Exhibit C, the Owner represents that it will expand a facility that it reasonably expects will cost 0j cOb , which shall be used for commercial or industrial purposes ( "New Facility" ) . 4 This project will initiate or further the active conduct of a trade or business within the Enterprise Zone . Additionally, if new employees are necessary during the term of this Agreement, at least 25 percent of such employees must be residents of any Enterprise Zone located within the City of Baytown or economically disadvantaged individuals . All improvements shall be completed within AP days in accordance with all applicable laws, ordinances, rules, or regulations . The Owner further agrees that construction of the improvements will begin on or before 11-1 19 7r with completion on or before /(i11:3' 19 9y. VII Event of Default During the abatement period covered by this Agreement, the City may declare a default hereunder by the Owner if the Owner fails to commence construction of the New Facility described in Part VI above and the Application attached hereto as Exhibit C within ninety (90) days from the date this Agreement is executed, fails to complete construction on or before //.3 v 19 fails to construct the New Facility described in Part VI above, refuses or neglects to comply with any of the terms of this Agreement, or makes any representation pursuant to this Agreement which is false or misleading in any material respect . Should the City determine the Owner to be in default of this Agreement or in any respect, except for the failure to timely commence construction, the City shall notify the Owner in writing prior to the end of the abatement period, and if such default is 5 not cured within sixty (60) days from the date of such notice ( "Cure Period" ) , then this Agreement may be terminated; provided, however, that in the case of a default that for causes beyond Owner' s reasonable control cannot with due diligence be cured within such sixty (60) day period, the Cure Period shall be deemed extended if Owner (i) shall immediately, upon the receipt of such notice, advise the City of Owner' s intention to institute all steps necessary to cure such default and (ii) shall institute and thereafter prosecute to completion with reasonable dispatch all steps necessary to cure same . On the other hand, if the default is caused by the Owner' s failure to commence with the project described in Exhibit C within the above-referenced time frame, this Agreement will terminate automatically with no further notice to the Owner or opportunity to cure the default being necessary. If this contract is automatically terminated, all taxes previously abated by virtue of this Agreement, if any, will be recaptured and paid within thirty (30) days of the automatic termination. In the event that Owner allows its ad valorem taxes owed the City to become delinquent and fails to timely and properly follow the legal procedures for their protest and/or contest, or if the Owner violates any of the terms and conditions of this Agreement and fails to cure during the Cure Period, this Agreement may then be terminated and all taxes previously abated by virtue of this Agreement will be recaptured and paid within sixty (60) days of the termination. 6 VIII 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 this facility during the term of this Agreement to inspect the facility to determine compliance with the terms and conditions of this Agreement . All inspections required herein 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 required herein will be made with one (1) or more representatives of the Owner and in accordance with Owner' s safety standards . Upon completion of the contemplated construction, the City Manager or his designee shall annually evaluate the 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 pursuant to the terms of this abatement of the real and personal property comprising this Enterprise Zone and (ii) the full taxable value without abatement of the real and personal property comprising this Enterprise Zone. The Chief Appraiser shall record both the abated taxable value and the full taxable value in the appraisal records . 7 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, V.A.T.S . Tax Code, as may be necessary for the administration of the abatement specified herein. In addition, the Owner shall annually submit at a time requested by the Harris County Appraisal District a January employee count for the abated facility which shall correspond to employment counts reported in their Employer' s Quarterly Report to the Texas Employment Commission, which submission shall be used to determine abatement eligibility and value for that year and shall be subject to audit if requested by the governing body of the City. If the City terminates this Agreement, it shall, when required, provide Owner written notice of such termination. If Owner believes that such termination was improper, Owner may file suit in the Harris County District Courts appealing such termination within sixty (60) days after receipt from the City of written notice of the termination. If an appeal suit is filed, Owner shall remit to the City, within sixty (60) days after receipt of the notice of termination, any additional and/or recaptured taxes as may be payable during the pendency of the litigation pursuant to the payment provisions of Section 42 . 08 , V.A.T.S . Tax Code . If the final determination of the appeal increases Owner' s tax liability above the amount of tax paid, Owner shall remit the additional tax to the City pursuant to Section 42 .42 , V.A.T.S . Tax 8 Code . If the final determination of the appeal decreases Owner' s tax liability, the City shall refund to Owner the difference between the amount of tax paid and the amount of tax for which Owner is liable pursuant to Section 42 .43 , V.A.T.S . Tax Code . IX Assignment The Owner may assign this Agreement to a new owner or lessee of the 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 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 . X Notice Any notice required to be given under the provisions of this Agreement shall be in writing and shall be duly served when 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 Owner 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 9 provided in this Agreement, all notices shall be delivered to the following addresses : Owner: 1/4/. //. Li✓v137i»+t.�' ��,NG. 60X /if 64Y-raw/t1/1)e 77c 6 Attention: D/ , ) Aral City: City of Baytown P. O. Box 424 Baytown, Texas 77522-0424 Attention: Bobby Rountree, City Manager Either party may designate a different address by giving the other party ten (10) days' written notice . XI 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 . XII 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 . 10 4 XIII 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 . XIV Date The City executes this Agreement by and through the City Manager, acting pursuant to Ordinance No. 5-979 of the City of Baytown, and the effective date of this Agreement is the date of the countersignature of the City. This Agreement has been executed by the parties in multiple originals, each having full force and effect . ATTEST: CITY OF BAYTOWN ,L17- EILEEN P . HALL, City Clerk BOBBY ROUNTREE, City Manager ATTEST: OWNER BY: i vrt: legal/contracts/ENTERPRISEzone 11 BA e-/..Pc CITY OF BAYTOWN j�%.A°•&"' • 4S 307 S. Main St. P.O. Box 424 Baytown,TX 77522-0424 (713)420-5394 (713)420-5390 *.. .•'* Planning& Community Development CITY OF BAYTOWN ENTERPRISE ZONE APPLICATION NAME OF BUSINESS (.0 . 8. 12N VQS'}'4.4? / G. ►WZ fR,tN-1. y ADDRESS OF BUSINESS L 2.2. Ei c+ '11-2, Setz) a'a..,., ,'T . r d ^7?S 2-� MAILING ADDRESS AD..I, o.A (01-40cAA., (If Different) PRINCIPALS OF BUSINESS $grsab 0-60.9• ‘Paso Biy,9,A CONTACT PERSON (D,2y/ara aht,44 PHONE NO. Liz? gsS NATURE OF BUSINESS N , j' 'i 4.n b1,1t CS XjZfl4 , ,�„, LOCATION OF BUILDING 12 2. C /}c&- 1 4)446 IN ENTRPRISE ZONE Y,�S EZ A (If Different From Above) BRIEF PROJECT DESCRIPTION Re tM4st)j*} . • v/ e c)r . TYPE AND AMOUNT OF ASSISTANCE REQUESTED 7/j-?f- p✓N D FOR G CE USE ONLY Zone Facilitator Review ( ic -- Inspection Department Review /)-€z. 4 , (A,-4 (To include Electrical, Plumbing, and Building Review) EXHIBIT A CITY OF BAYTOWN ZONE 1 Beginning at the intersection of the south Right of Way (ROW) of West Jack Avenue and the east ROW of North Pruett and running thence east along alignment of the south ROW of East Jack Avenue approximately 4 , 100 feet to the west ROW of North Seventh Street; Thence, south along the west ROW of North Seventh Street 200 feet to the north ROW of East James Avenue; Thence, east along the north ROW of East James Avenue 600 feet; Thence, north 250 feet; Thence, west 80 feet; Thence, north 270 feet to the north ROW of East Lobit Avenue; Thence, north 120 feet; Thence, west 50 feet; Thence, north 150 feet to the north ROW of East Adoue Avenue; Thence, east 100 feet to the north ROW of East Adoue Avenue (said point also being 150 feet west of the west ROW North Alexander Drive) ; Thence, north 250 feet to the north ROW of East Hunnicutt Avenue; Thence, east 50 feet along the north ROW of East Hunnicutt Avenue (said point being 100 feet west of N. Alexander Drive) ; Thence, north 100 feet; Thence, west 100 feet; Thence, north 150 feet to the north ROW of East Fayle Avenue; Thence, east 100 feet along the north ROW of East Fayle Avenue to a point 100 feet west of the west ROW of North Alexander Drive; Thence, 500 feet north to the north ROW of Alford Avenue ( said point being 100 feet west of North Alexander Drive) ; Thence, west 100 feet along the north ROW of Alford Drive; Thence, north 100 feet; Thence, east 100 feet; Thence, north 500 feet to a point 100 feet north of the north ROW of Pearl Avenue (said point also being 100 feet west of the west ROW of North Alexander Drive) ; Paw 1of7 EXHIBIT A CITY OF BAYTOWN ZONE 1 Thence, west 50 feet; Thence, north 150 feet to the north ROW of Peggy Avenue; Thence, west to the east ROW of North Eighth Street; Thence, north to the intersection of the east ROW of North Eighth Street and the south ROW of Ward Road; Thence, east 200 feet (said point also being 150 feet west of the west ROW of North Alexander Drive) ; Thence, north 500 feet to a point along the east ROW of Beaumont Road; Thence, southeast 400 feet along the south boundary of the Hill Terrace subdivision to a point 100 feet west of the west ROW of North Alexander Drive; Thence, north 160 feet to the north ROW of Pleasant Drive; Thence, south 60 feet along the north ROW of Pleasant Drive; Thence, northeast 135 feet; Thence, east 100 feet to the west ROW of North Alexander Drive; Thence, north to the intersection of the north ROW of Fortune Drive and west ROW of North Alexander Drive; Thence, northwest 50 feet along the north ROW of Fortune Drive; Thence, northeast 400 feet to a point 100 feet parallel to the west ROW of North Alexander Drive; Thence, southeast 50 feet to the west ROW of North Alexander Drive; Thence, north along the west ROW of North Alexander Drive to the intersection of the north ROW of Largo Street and west ROW of North Alexander Drive; Thence, northwest 50 feet along the north ROW of Largo Street; Thence, northeast 100 feet; Thence, northwest 240 feet; Thence, east 210 feet; Thence, north 130 feet to the south ROW of Knowlton Street; Thence, east along the south ROW of Knowlton Street to the west ROW of North Alexander Drive; Page 2 of 7 • HIBIT A CITY OF BAYTOWN ZONE 1 Thence, northeast 170 feet along the west ROW of North Alexander Drive; Thence, north 350 feet; Thence, southeast 40 feet; Thence, northeast 517 feet; Thence, southeast 40 feet; Thence, northeast 100 feet; Thence, southeast 170 feet to the west ROW of North Alexander Drive; Thence, north 100 feet along the west ROW of North Alexander Drive; Thence, northwest 200 feet; Thence, northeast 225 feet to the north ROW of Windy Lane; Thence, southeast 100 feet along the north ROW of Windy Lane; Thence, northeast 175 feet; Thence, northwest 100 feet; Thence, northeast 175 feet to the south ROW of Sandy Lane; Thence, southeast along the south ROW of Sandy Lane to the west ROW of North Alexander Drive; Thence, southwest to the intersection of the east ROW of North Alexander Drive and south ROW of James Bowie Drive; Thence, east 300 feet along the south ROW of James Bowie Drive; Thence, S 87 degrees, 03 ' W 1200 feet; Thence, west 420 feet; Thence, southeast to the north ROW of Ivie Lee Street; Thence, west 30 feet along the north ROW of Ivie Lee Street to its intersection with Lacy Drive; Thence, northwest along the north ROW of Lacy Drive 100 feet; Thence, southwest 170 feet; Thence, northwest 300 feet; Thence, southwest 95 feet; Page 3 of 7 HIBIT A CITY OF BAYTOWWN ZONE 1 Thence, northwest 130 feet; Thence, southwest 170 feet; Thence, southeast 530 feet; Thence, southwest 300 feet; Thence, south 300 feet (this point also being 80 feet southwest of the west ROW of Danubina Street and the north ROW of Town Circle) ; Thence, northwest 350 feet; Thence, southwest 292 feet to the north ROW of Ward Road; Thence, northwest 360 feet along the north ROW of Ward Road; Thence, southwest along the west ROW of North Tenth Street to its intersection with the north ROW of East James Street; Thence, west 60 feet; Thence, south along the west ROW of Deanne Street to the south ROW of East Texas Avenue; Thence, southeast along the south ROW of East Texas Avenue to the west ROW of Tri-Cities Beach Road; Thence, south along the west ROW of Tri-Cities Beach Road to its intersection with the north ROW of Spur 55; Thence, east 8 , 400 feet along the north ROW of Spur 55; Thence , southeast crossing State Highway Spur 55 to the northernmost western corner of Lot 1 of the Cedar Crossing Business Park; Thence, N 86 Deg 18 Min 47 Sec E a distance of 2356 . 07 ft; Thence, N 2 Deg 23 Min 44 Sec W a distance of 576. 37 ft; Thence, N 88 Deg 20 Min 5 Sec E a distance of 971. 02 ft; Thence, N 88 Deg 34 Min 40 Sec E a distance of 485. 17 ft; Thence, east along the alignment of the south ROW of West Bay Road a distance of 1099. 13 feet to a point along the east ROW of FM Highway 1405; Thence, south approximately 8500 feet to a point 50 feet north of the center line of McKinney Road (the entrance road to the U. S . Steel Plant) ; Page 4 of 7 EXHIBIT A CITY OF BAYTOWN ZONE 1 Thence, N 86 Deg 40 Min 39 Sec E a distance of 324 . 56 ft ( this line is parallel to and 50 feet north of the centerline of McKinney Road which is the entrance road to the U . S . Steel Plant) ; Thence, N 00 Deg 8 Min 1 Sec W a distance of 1141. 35 ft; Thence, N 55 Deg 26 Min 21 Sec a distance of 1667 . 30 ft; Thence, east 1093 . 05 feet to the most northerly northeastern corner of the U.S. Steel Plant 507.8 acre tract; Thence, north 5273 .06 feet; Thence, N 59 Deg 56 Min 40 Sec W a distance of 1541 . 10 feet; Thence, north 2462 . 18 feet to a point on the south ROW of Rice Farm Road; Thence, east 11854 . 82 feet along the south ROW of Rice Farm Road; Thence, S 1 Deg 36 Min 42 Sec E a distance of 1451 . 60 ft; Thence, S 65 Deg 00 Min 00 Sec W a distance of 7000 ft; Thence, S 25 Deg 00 Min 00 Sec E a distance of 8332 . 87 feet to a point on the west ROW of FM Highway 2354 ; Thence, south 7785. 78 feet along the west ROW of FM 2354 ; Thence, west 4825 feet to a point on the Delhi Gas Pipeline ROW; Thence , southwest along the Delhi Gas Pipeline Corporation a distance of 1400 feet; Thence, S 89 Deg 57 Min 14 Sec W a distance of 3536. 54 feet; Thence, N 52 Deg 4 Min 14 Sec W a distance of 1116. 39 feet; Thence, N 00 Deg 8 Min 1 Sec W a distance of 3549 . 51 feet to a point 50 feet south of the centerline of McKinney Road ( the entrance road to the U.S. Steel Plant) ; Thence, West 324 . 56 feet to a point on east ROW of FM 1405 50 feet south of McKinney Road (the entrance road to the U. S. Steel Plant) ; Thence, southwest approximately 1500 feet to the east side of the Cedar Bayou; Thence, north along the east side of the Cedar Bayou to the point of intersection with the west line of the Hoesch property; Thence, northeast along the western property line of the Hoesch Tubular Products tract a distance of approximately 670 feet; Fare 5 of 7 EXHIBIT A CITY OF BAYTOWN ZONE 1 Thence , north 1110 feet along the general alignment of the western property line of the Hoesch Tubular Products tract to the southwest corner of Lot 33 of the Cedar Crossing Business Park; Thence, N 25 Deg 25 Min 58 Sec W a distance of 525 . 57 feet to a point on the south ROW of Spur 55 at the westernmost corner of Lot 1 of the Cedar Crossing Business Park; Thence, west along the south ROW of Spur 55 to its intersection with the west ROW of State Highway 146; Thence , north along the west ROW of State Highway 146 to its intersection with the north ROW of East Republic Avenue; Thence, west along the north ROW of East Republic Avenue to its intersection with the east ROW of South Main Street; Thence , north along the east ROW of South Main Street to its intersection with the north ROW of East Texas Avenue; Thence , west along the north ROW of East Texas Avenue to its intersection with the east ROW of North Pruett Street; Thence, north along the east ROW of North Pruett Street to its intersection with the south ROW of West Jack Street and the Point of Beginning. Section 2 : That the City Council finds the above described area meets the qualifications for designation as an Enterprise Zone under the provisions of the Act. Section 3 : That the City Council will provide certain tax and other incentives applicable to business enterprises in the zone which are not applicable throughout the City as follows: The City shall abate taxes on the increase in value of real property improvements for qualified businesses that locate or expand in the designated Enterprise Zone. The level of abatement shall be based upon the extent to which the business receiving the abatement creates jobs for qualified employees or increases the amount of investment expended on the expansion, development, and/or rehabilitation of properties located within the zone in accordance with attached Exhibit A. Qualified employee shall be defined by Section 3 (a) (11) of the Texas Enterprise Zone Act, Article 5190.7 . The City will waive or refund any and all building permit fees due or paid for such development , expansion , or rehabilitation project. Page 6 of 7 Exhibit B W B Investments, Inc. 122 East texas Ave. Baytown, Texas Legal Description of propery: Lot 1-2, Blk 59, Thomas Wright Lot 3, Blk 59, Thomas Wright Lot 6, Blk 11, Goose Creek Townsite • Exhibit C W B Investments, Inc. 122 East texas Ave. Baytown, Texas Legal Description of property: Estimated Alteration Cost Lot 1-2, Blk 59, Thomas Wright $5300 Lot 3, Blk 59, Thomas Wright $5800 Lot 6, Blk 11 , Goose Creek Townsite $1900 Description of Alteration: All properties: We spent 8 months cleaning the debris from building. Flood coated roof with tar to preserve the roof integrity. Power blasted the exterior, and painted the cinder block exterior. Replaced exterior doors and reglazed and/or blocked all other openings. Lot 1-2, Blk 59, Thomas Wright New electrical service with main disconnect. Repaired or replaced all electrical components as needed. Repaired all plumbing as needed. Replaced A/C units and repaired grills. Repaired walls, ceilings, doors, & floors: textured, painted, and carpet squares. Built in counters, installed interior decorations, etc. Lot 3, Blk 59, Thomas Wright Removed all interior walls, floors, and ceiling. Painted walls & installed doors. We have spent approximately $10,500 to date of our original projection.