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Ordinance No. 11,534ORDINANCE NO. 11,534 AN ORDINANCT OFTI -IF"'CITY COUNCIL OF, '1111." CITY OF BAYTOWN TF.XAS, Au'ri-ioRiZINGTI-11 MAYOR TO EM.'CUTE" A St B DE V 1 FI'R AGRETNIFNT WITH WANAMAUR BAYTO'WN ONE, 1,J)" THE BA 'TOWN IZI'D1-'\Il�"1.01'N4EN'I'AIJ'I'I IORITY AND, TI IF, RFIINVES'FMI-'NT ZONE NUMBFR O'NF,, CITY OP BAYTOWN, "I'l",XAS, 1"OR RFlMB(JRSEMFI'NTS OF PUBLIC IMPROVI'MEN]"S AT (JARTH ROAD AND HUNT ROAD; AND PROVIDIN(I FOR THE E` FFI "CTI V 17 DATE * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * 4: * * * * * * * * * * * * * * * BL" 11' ORDAINED BY THE CF FY COUNCIL OF 'THE CITY OF RAYTOWN, TEXAS: Section 1: That thC ("ity COMICil cal' tlac City Of f3aytOXV11, "I'exas, hereby authorizes the Mayor to execute and the City Clerk to a(lest to a Subdeveloper Agreenient with Wanamaker Baytown One, I—R, the Baytown Redevelopment Authority and the Reinvestment Zone Number One, City cat Baytown, Texas, I*or reimbursements ofpublic improvenictits at Garth Road and I-ILIIIt Road, A cop), ot'saidagrectnent is attached hereto as Exhibit "A,"and incorporated hercin for all intents and purposes, Section 2: This ordinance shall take effect ininiediately from and aher its passage by tile City COLIIICil ofthe City of Baytown. INTRODUCI'D, Rl"'AD and PASSI;D by theal'tirmative vote,4rfthe Cli"'ty Council ofthe ofBaytown this the 30"' day of December, 2010. // -1111, 0 LYPI'� "d ':P I " ":, 10' .";,"""IR WI � N, Jf wh 11 qNj 4 C'i ICIA Cl 1, City Cle APPROVF'D AS TO FORM: CC RO' !I � A iN,4 I 4,R, F'Z, SIB,, Attorney R,'Kai,. WHes Ca'v Cuunc aW OrdflMK c00 10 [)CCmb-0 W1 � R ZSubdQ a vkqruAgrmuu.�m dac STFTHEN DONCAR-LOS, Mayor. SUBDEVELOPER AGREEMENT 9.41 /11,1,b A '. This SUBDEVELOPER AGREEMENT (this "Agreement"), dated is made by and between REINVESTMENT ZONE NUMBER ONE, CITY OF BAYTOWN, TEXAS ("BaytOUM Zone"), a tax increment reinvestment zone created by the City of Baytown, Texas (the "City") pursuant to Chapter 311 of the Texas Tax Code, as amended, acting by and through its governing body, the Board of Directors (the "Zone Board"), BAYTOWN REDEVELOPMENT AUTHORITY ("Baytowm Autliority"), a local government corporation created and organized under the provisions of the Texas Transportation Corporation Act, Chapter 431,Transportation Code, and authorized and approved by the City under Resolution No. 1516 adopted on October 25, 2001, acting by and through its governing body, the Board of Directors (the "Baytoum Board"), THE CITY OF BAYTOWN,TEXAS (the "City"), a Texas home-rule city, and WANAMAKER BAYTOWN ONE, L.P. (the "Developer"). RECITALS WHEREAS, by Ordinances No. 9197 and 9275 and by Resolution 1516 the City Council of the City created the Baytown Zone in the City pursuant to Chapter 311 of the Texas Tax Code, as amended, and pursuant to a Preliminary Project Plan and Preliminary Reinvestment Zone Financing Plan, and appointed its Board of Directors ("TIRZ Ordinance"); and WHEREAS, by Ordinance No. 9275, the City Council of the City enlarged the Baytown Zone in the City pursuant to Chapter 311 of the Texas Tax Code, as amended, and pursuant to a Preliminary Project Plan and Preliminary Reinvestment Zone Financing Plan, and appointed its Board of Directors("TIRZ Ordinance"); and WHEREAS, the Zone Board adopted a final Project Plan and Reinvestment Zone Financing Plan (the "Project Plan") and submitted the final Project Plan to the City Council of the City for approval; and WHEREAS, the City Council approved the final Project Plan by Ordinance No. 9290; and WHEREAS, the City authorized the creation of the Baytown Authority to aid, assist and act on behalf of the City in the performance of the City's governmental functions with respect to the common good and general welfare of Baytown and neighboring areas as described in the TIRZ Ordinance; and WHEREAS, the City, the Baytown Zone and the Baytown Authority have entered into that certain Agreement dated November 24, 2001, and approved as Ordinance No. 9271 (the "Baytown Agreement"), pursuant to which the City and the Baytown Zone contracted with the Baytown Authority to administer the Baytown Zone including, but not limited to, the power to engage in activities relating to the acquisition and development of land, to construct and improve infrastructure in Baytown, to enter into development agreements with Developer/ builders in Baytown, and to issue, sell or deliver its bonds, notes or other obligations in accordance with the terms of the Baytown Agreement upon the approval of the City Council of the City; and WHEREAS, the Baytown Agreement further provides that the Baytown Authority must obtain the prior approval of the City for any project approved in the Baytown Zone's Project Plan that is constructed or caused to be constructed by the Baytown Authority; and WHEREAS, the Texas Tax Code provides that the Baytown Zone may enter into agreements as the Zone Board considers necessary or convenient to implement the Project Plan and achieve its purposes; and WHEREAS, the Baytown Board and the Zone Board have determined that it is in the best interest of the Baytown Zone and the Baytown Authority to contract with Developer to provide for the efficient and effective implementation of certain aspects of the Project Plan; and WHEREAS, the Baytown Zone, the Baytown Authority and Hunt 90, Ltd., a Texas limited partnership; Garth -82, LTD., a Texas limited partnership; Ten Garth, Ltd., a Texas limited partnership; and The William J. Rapson, Jr., Limited Partnership, a Texas limited partnership (each, a "Landowner "), entered into that certain Reimbursement Agreement, dated as of April 5, 2005 (the "Landowners' Agreement "), relating to the development of the construction of Public Improvements with respect to the Project Site (defined therein) and providing that the Landowners may convey portions of the Project Site to Subdevelopers and that such Subdevelopers may execute a Subdeveloper Agreement relating to the construction of such Public Improvements (as such terms are defined in the Landowners' Agreement), and reimbursement therefor; and WHEREAS, the Developer has had conveyed to it a portion of the Project Site, and the parties intend for this Agreement to constitute a Subdeveloper Agreement under the Landowners' Agreement, and for references to the "Developer" herein to constitute references to the " Subdeveloper" under the Landowners' Agreement, and WHEREAS, the Developer desires to proceed with the development of an urban project consisting of design and construction of public roadways, waterlines, wastewater systems, stormwater systems, and traffic signals and related impreovements on land located within or immediately adjacent and beneficial to the Baytown Zone to improve infrastructure in Baytown (the "Public Improvements ") prior to the time that the Baytown Authority can issue its bonds or incur other obligations to pay the costs of the Public Improvements (as defined herein); and WHEREAS, the City is willing to act as project manager for the Public Improvements; NOW THEREFORE, AGREEMENT For and in consideration of the mutual promises, covenants, obligations, and benefits of this Agreement, the Baytown Zone, the Baytown Authority and the Developer contract and agree as follows: ARTICLE 1 GENERAL TERMS 1.1 Definitions. The terms "Agreement," "City," "Baytown Agreement," "Baytown Board," "Baytown Authority," "Developer," "Baytown Zone," "Developer," "Landowners' Agreement" and "Zone Board" have the above meanings, and the following terms have the following meanings: "Act" shall mean the Tax Increment Financing Act, Chapter 311, Texas Tax Code, as amended. "Atithorihj Bonds" shall mean the Baytown Authority's tax increment revenue bonds issued in one or more series pursuant to Section 6.1(H) of this Agreement. "Available Tax Increment" shall mean funds in the Tax Increment Revenue Fund, less any funds designated by a participating taxing entity for a specific purpose in its participation agreement. "Baytown" shall mean all of the property located within the boundaries of the Baytown Zone. "Completion" shall mean completion of construction of the Public Improvements in accordance with the Plans and Specifications. Completion shall be approved by the City and certified by the engineering firm engaged by the City to make such certification. "Developer Advance" shall mean any funds advanced for eligible improvements by the Developer pursuant to Section 6.1 of this Agreement and shall include any interest payable thereon as prescribed in this Agreement. "Effective Date" means the effective date of this Agreement, being the earlier of either the date of this Agreement or the effective date of an agreement whereby the Authority and another party agrees to fund the portion of the costs of the Public Improvements not funded by this Agreement. "Parties" or "Partly' shall mean the City, the Baytown Zone, the Baytown Authority, and the Developer. "Plans and Specifications" shall mean the designs, plans and specifications for the Public Improvements prepared or to be prepared by an engineering firm at the direction of the City in accordance with the Project Plan. "Pledged Available Tax Increment" shall mean the Available Tax Increment from the Developer's tract within the Baytown Zone described in Exhibit A. "Project Costs" shall mean the cost of the Public Improvements. "Project Plan" means the Project Plan and Reinvestment Zone Financing Plan for Reinvestment Zone Number One, City of Baytown, as approved by the City Council on December 13, 2001, and as thereafter amended and approved by the City Council. "Public Improvements" shall have the meaning provided in Article 3 of this Agreement. "State" shall mean the State of Texas. "Tax Increment Revenue Fund" shall mean the special fund established by the Baytown Authority and funded with payments made by the City and any other participating Taxing Units, pursuant to the Baytown Agreement. "Taxing Unit" shall mean individually and collectively, the City and any other taxing units participating in the Baytown Zone. 1.2 Singular and Plural. Words used herein in the singular, where the context so permits, also include the plural and vice versa. The definitions of words in the singular herein also apply to such words when used in the plural where the context so permits and vice versa. ARTICLE 2 REPRESENTATIONS 2.1 Representation of Baytown Authority. The Baytown Authority hereby represents to the Parties that. (A) The Baytown Authority is duly authorized, created and existing in good standing under the laws of the State and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B) The Baytown Authority has the power, authority and legal right to enter into and perform this Agreement and the execution, delivery and performance hereof (i) have been duly authorized, (ii) to the best of its knowledge, will not violate any applicable judgment, order, law or regulation, and (iii) do not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of the Baytown Authority under any agreement or instrument to which the Baytown Authority is a party or by which the Baytown Authority or its assets may be bound or affected. (C) The Public Improvements and the Project Costs are components of or are consistent with the Project Plan. (D) This Agreement has been duly authorized, executed and delivered by the Baytown Authority and, constitutes a legal, valid and binding obligation of the Baytown Authority, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (E) The execution, delivery and performance of this Agreement by the Baytown Authority does not require the consent or approval of any person which has not been obtained. (F) The Baytown Authority has an exemption from the payment of sales and use taxes pursuant to the statute under which the Baytown Authority was created. 2.2 Representation of Baytown Zone. The Baytown Zone hereby represents to the Parties that: (A) The Baytown Zone is duly authorized, created and existing in good standing under the laws of the State and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B) The Baytown Zone has the power, authority and legal right to enter into and perform this Agreement and the execution, delivery and performance hereof (i) have been duly authorized, (ii) to the best of its knowledge, will not violate any applicable judgment, order, law or regulation, and (iii) do not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of the Baytown Zone under any agreement or instrument to which the Baytown Zone is a party or by which the Baytown Zone or its assets may be bound or affected. (C) The Public Improvements and the Project Costs are components of or are consistent with the Project Plan. (D) This Agreement has been duly authorized, executed and delivered by the Baytown Zone and constitutes a legal, valid and binding obligation of the Baytown Zone, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (E) The execution, delivery and performance of this Agreement by the Baytown Zone does not require the consent or approval of any person which has not been obtained. 2.3 Representation of the City. The City hereby represents to the Parties that: (A) The City is a Texas home -rule City duly incorporated under the laws of the State and is duly qualified and authorized to carry on the governmental functions and operations as contemplated by this Agreement. (B) The City has the power, authority and legal right to enter into and perform this Agreement and the execution, delivery and performance hereof (i) have been duly authorized, (ii) to the best of its knowledge, will not violate any applicable judgment, order, law or regulation, and (iii) do not constitute a default under, or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of the City under any agreement or instrument to which the City is a party or by which the City or its assets may be bound or affected. (C) This Agreement has been duly authorized, executed and delivered by the City and, constitutes a legal, valid and binding obligation of the City, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable. (D) The execution, delivery and performance of this Agreement by the City does not require the consent or approval of any person which has not been obtained. (E) The City has an exemption from the payment of sales and use taxes pursuant to the statute under which the City was created. 2.4 Representations of Developer. Developer hereby represents to the Parties that (A) Developer is duly authorized, created and existing in good standing under the laws of the State, is qualified to do business in the State. (B) Developer has the power, authority and legal right to enter into and perform its obligations set forth in this Agreement, and the execution, delivery and performance hereof, (i) have been duly authorized, (ii) will not, to the best of its knowledge, violate any judgment, order, law or regulation applicable to Developer or any provisions of Developer's by -laws or limited partnership agreement, and (iii) do not constitute a default under or result in the creation of, any lien, charge, encumbrance or security interest upon any assets of Developer under any agreement or instrument to which Developer is a party or by which Developer or its assets may be bound or affected. (C) Developer will have sufficient capital to perform its obligations under this Agreement at the time it needs to have sufficient capital. (D) This Agreement has been duly authorized, executed and delivered and constitutes a legal, valid and binding obligation of Developer, enforceable in accordance with its terms except to the extent that (i) the enforceability of such instruments may be limited by bankruptcy, reorganization, insolvency, moratorium or other similar laws of general application in effect from time to time relating to or affecting the enforcement of creditors' rights and (ii) certain equitable remedies including specific performance may be unavailable 2.5 Landowners' Agreement. This Agreement constitutes a Subdeveloper Agreement under the terms of the Landowners' Agreement. The terms of this Agreement shall supersede the terms of the Landowners' Agreement with respect to the Public Improvements that are the basis for this Agreement, particularly: (i) This Agreement shall satisfy the requirements of Section 4.2(A) of the Landowners' Agreement with respect to the form of the Subdeveloper Agreement; (ii) Section 4.2(B) of the Landowners' Agreement shall not apply to this Agreement; (iii) The Landowners have not spent any funds for Project Costs that require reimbursement to the Landowners for the Public Improvements from Pledged Available Tax Increment, and therefore no allocation of the costs thereof is required under Section 4.3 (D) of the Landowners' Agreement; and (iv) To the extent the Developer intends to carry out any other improvements contemplated by the Landowners' Agreement, a separate Subdeveloper Agreement will be required to authorize such improvements for reimbursement under the Landowners' Agreement. ARTICLE 3 THE PUBLIC IMPROVEMENTS 3.1 Public Improvements. The Public Improvements shall be and include the design, construction and installation of (1) public roadways, waterlines, wastewater systems, stormwater systems, and traffic signals and related improvements at the intersection of Hunt Road and Garth Road and to extend Hunt Road approximately 900' west of the intersection of Garth and Hunt Roads, (2) public roadways, waterlines, wastewater systems, stormwater systems, and related improvements to widen the existing section of Hunt Road 250' east from the intersection with Garth Road to a boulevard section to match the west roadway and to transition to the existing alignment over the next 300' immediately adjacent to the Baytown Zone, such infrastructure being more particularly described in the Plans and Specifications (the "Public Improvements "). 3.2 Project Costs. The estimated Project Costs of the Public Improvements are described in Exhibit B. The Public Improvements will be developed pursuant to the Plans and Specifications as soon as practicable following the effective date of this Agreement. The Project Costs shall include all engineering, design, legal and other consultant fees and expenses (as further set forth in Section 6.1(A) hereof) related to such Public Improvements. The Project Costs may be modified with approval of the Parties. 3.3 Obligation. The Public Improvements shall be designed, acquired, constructed and implemented in accordance with the Plans and Specifications. ARTICLE 4 DESIGN AND CONSTRUCTION 4.1 Construction Manager. Subject to receipt of the Developer Advance in accordance with the Section 6.1 below, the City agrees to design and construct the Public Improvements and to provide and furnish, or cause to be provided and furnished, all materials and services as and when required in connection with the construction of the Public Improvements. The City will obtain all necessary permits and approvals from all other governmental officials and agencies having jurisdiction, provide supervision of all phases of construction of the Public Improvements, provide periodic reports as requested and required by the Baytown Authority of such construction to the Baytown Board, and cause the construction to be performed in accordance with the Plans and Specifications. 4.2 Design of the Public Improvements. The City shall prepare or cause to be prepared the Plans and Specifications for the Public Improvements. Prior to the commencement of construction or implementation of the Public Improvements, the Plans and Specifications must be submitted to and approved by the Developer. Once the Plans and Specifications have been approved by the City, no substantial changes thereto can be made without the express written approval of the Parties. 4.3 Accounting Upon Completion. Within 90 days after the completion of the construction of the Public Improvements, the City shall provide the Parties with a final cost summary of all costs associated with the Public Improvements. 4.4 Conveyance of Easements. If applicable, the Developer shall grant the City all required temporary construction and access easements necessary to maintain the Public Improvements. The easements granted must be satisfactory for the intended purpose as determined by the City. 4.5 Cooperation. The Parties agree that they will cooperate with each other and provide all necessary information to the Baytown Authority and its consultants in order to assist the Baytown Authority in complying with the Baytown Agreement, including, without limitation, the completion of the audit and construction audit required therein. ARTICLE 5 DUTIES AND RESPONSIBILITIES OF THE BAYTOWN AUTHORITY 5.1 Baytown Authority Contributions. The Baytown Authority shall pay or reimburse to the Developer the Project Costs in the amount of the actual costs of the Public Improvements as more particularly described in and as provided by Articles 3 and 4. The total, actual Project Costs of the Public Improvements, for which the Baytown Authority shall be responsible under the terms of this Agreement, is estimated to be $650,000, and the total costs are estimated to be $1,300,000. Project Costs of the Public Improvements in excess of $650,000 shall be paid by or on behalf of other developers or other entities. Attached hereto as Exhibit B is a detailed description of the engineering estimates of the Public Improvements. The Project Costs shall be financed and funded in accordance with Article 6 hereof. In the event a portion of the Public Improvements is determined to be ineligible under the Act, the Project Costs shall be reduced by the amount of such ineligible Public Improvements. If the Baytown Authority has already repaid the Developer for such ineligible Public Improvements in accordance with this Agreement, the Parties agree that the Developer shall reimburse the Baytown Authority for such repayment within 30 days of receipt of an invoice from the Baytown Authority and all such sums shall bear interest at the rate established in section 6.1(F) from the date past due until the date of such reimbursement. Should the Developer fail to timely pay such amount, the Baytown Authority may, in its sole discretion, withhold the amount due, including accrued interest, from future payments. 5.2 Project Costs. The Baytown Authority shall reimburse the entire Project Costs in accordance with this Agreement, up to the amount of the Developer Advance. ARTICLE 6 PUBLIC IMPROVEMENTS FINANCING AND FUNDING 6.1 Developer Advance. (A) Within 30 days of notice to the Developer of the Effective Date, the Developer will deposit $85,000.00 with the Baytown Authority to cover a portion of the estimated Project Costs, including, without limitation, all costs of design, engineering, surveying, bid documents, construction documents, and labor, arising in connection with the design, engineering and solicitation of public bids for the Public Improvements, including all payments arising under any contracts entered into by the City pursuant to this Agreement, all costs incurred in connection with obtaining governmental approvals, certificates or permits (including any building permit fees) required as a part of any contracts entered into in accordance with this Agreement and all related legal fees incurred in connection therewith. Upon written agreement from the Developer to proceed with the Public Improvements and within 30 days of notice to the Developer of the date that public bids will be opened, the Developer will deposit $565,000.00 with the Baytown Authority to cover half the estimated balance of the Project Costs, including, without limitation, all costs of design, engineering, surveying, materials, labor, construction, and inspection, arising in connection with the Public Improvements, including all payments arising under any contracts entered into by the City pursuant to this Agreement, all costs incurred in connection with obtaining governmental approvals, certificates or permits (including any building permit fees) required as a part of any contracts entered into in accordance with this Agreement and all related legal fees incurred in connection therewith. Upon completion of the Public Improvements, as described in Section 4.3 of this Agreement, a full accounting will be taken. If 50% of the actual Project Costs exceed the amount the advanced by the Developer, the Developer shall remit the additional funds to the Baytown Authority within 30 days of notification. If the Project Costs are less than the amount advanced by the Developer, the Baytown Authority shall remit any remaining funds to the Developer within 30 days. (B) After completion of the Public Improvements, the Baytown Authority, at its expense, shall hire a certified public accountant to calculate the amount due the Developer and shall prepare and submit a report to the Baytown Board and send a copy to the City Manager. Interest (as defined in Subsection 6.1(F)) on the Developer Advance made pursuant to this Subsection shall accrue from the date the Developer Advance until two years after the completion of the Public Improvements; provided that, in any event, interest shall accrue for no more than three and one -half years. At such time as funds are available to pay all or any portion of the Developer Advance made hereunder, the Baytown Authority, at its expense, shall hire a certified public accountant to calculate the amount due the Developer and shall prepare and submit a report to the Baytown Board and send a copy to the City Manager certifying (1) the amount due the Developer for the Developer Advance being repaid with interest calculated thereon as specified herein and (2) that funds are available to make such payment. Upon receipt of such report, the Baytown Board shall promptly authorize and make payment to the Developer. (D) If, upon Completion of the Public Improvements, the Baytown Authority does not have sufficient funds to reimburse to the Developer the unpaid balance of the Project Costs, the Developer shall be deemed to have advanced to the Baytown Authority an amount equal to the difference between (i) the amount of the Project Costs which has been previously paid by the Baytown Authority to the Developer and (ii) the final cost of the Public Improvements as evidenced by documentation approved by the Baytown Board in accordance with Section 4.3. (E) The Baytown Authority shall begin repaying the Developer Advance, and shall continue such repayment until repaid in full, on the earliest date that funds are available from any of the following sources: (1) proceeds from the sale of applicable Baytown Authority Bonds; or (2) the available Pledged Available Tax Increment Fund. Notwithstanding the above, the City shall have no claim to any of the Pledged Available Tax Increment generated from the Subdeveloper Project Site until the Subdeveloper has been reimbursed in full under this Agreement. (F) Interest on the Developer Advance shall accrue at the prime rate of JPMorgan Chase Bank, National Association. Interest shall be calculated on the basis of a year of 360 days and the actual days elapsed (including the first day but excluding the last day) occurring in the period for which such interest is payable, unless such calculation would result in a usurious rate, in which case interest shall be calculated on the per annum basis of a year of 365 or 366 days, as applicable, and the actual days elapsed (including the first day but excluding the last day). In no case shall the interest rate exceed one percent per month. (G) The Baytown Authority's obligation to pay a Developer Advance is limited to the Developer's Pledged Available Tax Increment. The rights of the Developer in and to its Pledged Available Tax Increment granted herein are subject only to (i) the rights of any holders of bonds, notes or other obligations that have been heretofore or are hereafter issued by the City or any other participating taxing unit that are payable from and secured by a general levy of ad valorem taxes throughout the taxing jurisdiction of the City or any other participating taxing unit, (ii) the rights of any of the holders of bonds and notes that are hereafter issued or incurred by the Baytown Authority and which are secured by a pledge of the Pledged Available Tax Increment Fund the proceeds of which are used to fully pay the Project Costs, including all Developer Advance and accrued interest thereon as set forth in this Agreement, and (iii) the rights of any of the holders of notes that are hereafter issued or incurred by the Baytown Authority, which are secured by a pledge, all or a part, of the Pledged Available Tax Increment Fund, the proceeds of which are used solely to fund the annual operating and administration budget of the Baytown Authority approved by the Baytown Board and the City Council of the City. Except in the event that sufficient tax increment increase does not occur within the term of the Baytown Zone to generate sufficient revenue to repay the Developer Advance, it shall be the obligation of the Baytown Authority to repay the Developer Advance and accrued interest thereon as set forth in this Agreement from the Developer's Pledged Available Tax Increment until such time as the Developer Advance and accrued interest thereof incurred pursuant to this Agreement, have been fully repaid or provision for payment thereon to the Developer shall have been made in accordance with their terms. The Developer Advance constitute a special obligation of the Baytown Authority payable solely from the Pledged Available Tax Increment as and to the extent provided in this Agreement. The Developer Advance do not give rise to a charge against the general credit or taxing powers of the Baytown Authority, the Baytown Zone, the City, Harris County or any other Taxing Unit and is not payable except as provided in this Agreement. The Developer, its successors and assigns, shall not have the right to demand payment thereof out of any funds of the Baytown Authority other than the Pledged Available Tax Increment or sources described in Section 6.1(E). (H) The Baytown Authority will evaluate and consider bond issues to reimburse the Developer upon the following circumstances: 1) Projected incremental revenue generates 1.25 times coverage for the bonds over projected annual debt service; 2) Projected incremental revenue will be calculated by multiplying estimated or certified incremental value from the appraisal district by the participant(s) tax rate(s) divided by 100 times one minus a reasonable historical tax collection factor times one minus the City set aside percentage; 3) A reserve fund equal to maximum annual debt service must be funded from the bond proceeds; 4) Adequate cash or capitalized interest must be set aside to assure payment of the bonds through the date of the next increment payment; 5) The minimum bond size will be that size that after funding the Reserve Fund, any capitalized interest and any costs of issuance will allow for a reimbursement to developers of at least $1.5 million, plus developer interest. (I) The Baytown Authority shall not issue obligations in accordance with this Article unless the resulting debt service requirements on all Zone obligations may be paid in full when due from all money then on deposit in or thereafter required to be deposited to the Tax Increment Revenue Fund during the term of such Zone obligations, assuming that (a) the rates at which property taxes are levied by all taxing units required to make deposits to the Tax Increment Revenue Fund do not change from the rates at which they most recently levied property taxes, (b) the assessed value of taxable property (net of exemptions) within the Baytown Zone does not change from the amount then most recently estimated or certified by the Harris County Appraisal District, (c) all amounts deposited (or required to be deposited) to the Tax Increment Revenue Fund bear interest at the City's investment rate until expended, (d) proceeds of such obligations are deposited to and set aside as capitalized interest in the amount approved by the City Manager, and (e) the Tax Increment Revenue Fund is expended in each year to pay administrative expenses of the Zone in an amount equal to the product of (i) the total amount of such expenses budgeted in the Zone's most recent operating budget and (ii) a fraction, the numerator of which is the current Pledged Available Tax Increment and the denominator of which is the total current Tax Increment. a) The Baytown Authority shall provide to the Developer, upon the written request of the Developer, all information in its possession relevant to the computation of the funds for payment of the Project Costs under this Section. (K) The Baytown Zone and the Baytown Authority shall endeavor to cause each Taxing Unit to collect all ad valorem taxes due on property located within the Baytown Zone and shall endeavor to cause such Taxing Units to deposit all tax increments due with the City for transfer to the Tax Increment Revenue Fund pursuant to the Baytown Agreement. ARTICLE 7 [RESERVED] ARTICLE 8 DEFAULT If a Party does not perform its obligations hereunder in compliance with this Agreement in all material respects, in addition to the other rights given the City under this Agreement, the other Parties may enforce specific performance of this Agreement for any such default if such default is not cured or is not commenced and diligently pursued within 90 days after receipt by the non - performing Party of a written notice detailing the event of default. Failure of a project to generate sufficient tax increment increase to repay Developer Advance is not a default on the part of the Baytown Authority or the Baytown Zone. ARTICLE 9 GENERAL 9.1 Inspections, Audits. The City shall allow the other Parties access to documents and records in the City's possession, custody or control that the other Parties deem necessary to assist them in determining the City' compliance with this Agreement. 9.2 City' Operations and Employees. No personnel supplied or used by the City in the performance of this Agreement shall be deemed employees, agents or contractors of the other Parties for any purpose whatsoever. The City shall be solely responsible for the compensation of all such personnel, for withholding of income, social security and other payroll taxes and for the coverage of all worker's compensation benefits. Under no circumstance shall the other Parties be deemed responsible for compensation of the above. 9.3 Personal Liability of Public Officials. To the extent not limited by State law, no director, officer, employee or agent of the City, the Baytown Zone or the Baytown Authority shall be personally responsible for any liability arising under or growing out of this Agreement. 9.4 Notices, Any notice sent under this Agreement (except as otherwise expressly required) shall be written and mailed via certified mail, return receipt requested, or sent by electronic or facsimile transmission confirmed by mailing written confirmation via certified mail, return receipt requested at substantially the same time as such electronic or facsimile transmission, or personally delivered to an officer of the receiving party at the following addresses: CITY City Manager City of Baytown P. O. Box 424 Baytown, Texas 77522 -0424 FAX: 281420 -5891 with a copy to: City Attorney City of Baytown P. O. Box 424 Baytown, Texas 77522 -0424 FAX: 281420 -5891 BAYTOWN ZONE Reinvestment Zone Number One, City of Baytown, c/o Hawes Hill & Associates 10103 Fondren Road, Suite 300 Houston, Texas 77096 Attn: David Hawes FAX: (713) 541 -0996 BAYTOWN AUTHORITY Baytown Redevelopment Authority c/o Hawes Hill & Associates 10103 Fondren Road, Suite 300 Houston, Texas 77096 Attn: David Hawes FAX: (713) 541 -0996 DEVELOPER Wanamaker Baytown One, L.P. c/o Gulf Coast Commercial Management, Inc. 3120 Rogerdale, Suite 150 Houston, Texas 77042 Attn: James L. Walker FAX: 713.532.1969 Each Party may change its address by written notice in accordance with this Section. Any communication addressed and mailed in accordance with this Section shall be deemed to be given when so mailed, any notice so sent by electronic or facsimile transmission shall be deemed to be given when receipt of such transmission is acknowledged, and any communication so delivered in person shall be deemed to be given when receipted for by, or actually received by, the other Parties, as the case may be. 9.5 Amendments and Waivers. Any provision of this Agreement may be amended or waived if such amendment or waiver is in writing and is signed by the Parties. No course of dealing on the part of the Parties, nor any failure or delay by the Parties with respect to exercising any right, power or privilege of the Parties under this Agreement shall operate as a waiver thereof, except as otherwise provided in this Section. 9.6 Successors and Assigns. All covenants and agreements contained by or on behalf of the Baytown Authority and the Baytown Zone in this Agreement shall bind their successors and assigns and shall inure to the benefit of the City and their successors and assigns. The Baytown Authority and the Baytown Zone may assign its rights and obligations under this Agreement or any interest herein, with the prior written consent of both City. Except as provided above, this Agreement may not be assigned without the written permission of the other Parties. 9.7 Exhibits; Titles of Articles, Sections and Subsections. The exhibits attached to this Agreement are incorporated herein and shall be considered a part of this Agreement for the purposes stated herein, except that in the event of any conflict between any of the provisions of such exhibits and the provisions of this Agreement, the provisions of this Agreement shall prevail. All titles or headings are only for the convenience of the parties and shall not be construed to have any effect or meaning as to the agreement between the parties hereto. Any reference herein to a Section or Subsection shall be considered a reference to such Section or Subsection of this Agreement unless otherwise stated. Any reference herein to an exhibit shall be considered a reference to the applicable exhibit attached hereto unless otherwise stated. 9.8 Construction. This Agreement is a contract made under and shall be construed in accordance with and governed by the laws of the United States of America and the State of Texas. 9.9 Venue. All parties hereby irrevocably agree that any legal proceeding arising out of or in connection with this Agreement shall only be brought in the District Courts of Harris County, Texas or in the United States District Court for the Southern District of Texas, in Houston, Texas. 9.10 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. 9.11 No Third Party Beneficiaries. This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Parties hereto only. 9.12 No Partnership. Nothing herein contained shall be construed or held to make the Parties hereto partners in the conduct of any business. 9.13 Entire Agreement This written agreement represents the final agreement between the parties, unless later amended in writing and signed by the parties and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties. There are no unwritten oral agreements between the parties. 9.14 Ambiguities. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 9.15 Non - Waiver. Failure of either party hereto to insist on the strict performance of any of the agreements contained herein or to exercise any rights or remedies accruing hereunder 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 or to exercise any right or remedy occurring as a result of any future default or failure of performance. 9.16 Multiple Originals. It is understood and agreed that this Agreement may be executed in a number of identical counterparts each of which shall be deemed an original for all purposes. 9.17 Term. This Agreement shall be in force and effect from the date of execution hereof for a term expiring on the later of (i) December 31 in the year following Completion of the Public Improvements, or (ii) the date the Developer Advance have been repaid in full. If the Baytown Authority is dissolved, the Baytown Agreement requires that the City shall make satisfactory arrangements to provide for the payment of the obligations to the Developer of the Baytown Authority hereunder. 9.18 Approval by the Parties. Whenever this Agreement requires or permits approval or consent to be hereafter given by any of the parties, the parties agree that such approval or consent shall not be unreasonably withheld or delayed. 9.19 Additional Actions. The parties agree to take such actions, including the execution and delivery of such documents, instruments, petitions and certifications as may be necessary or appropriate, from time to time, to carry out the terms, provisions and intent of this Agreement and to aid and assist each other in carrying out said terms, provisions and intent. IN WIT NE ��,q'��-�-EREO e a 'e§�ereto have caused this instrument to he duly executed s f 1 CITY OF B O ,TEXAS By: ayor tr W r City Secre APPROVED A- By: Title:_iTY 4na—p- 1 REINVE TMENT NUMBER ONE, CITY OF BAYTOWN By: hairman ATTEST: y� By: Secretary BAYTO REDEV MENT AUTHORITY By: hairman ATTEST: y� By: ecretary AQ, WANAMAKER BAYTOWN ONE,L.P., A Texas limited partnership, by its general partner GULF COAST COMM RCI ANAGEMENT, INC. By. Name: tx Title: e, s a For the purposes of this Agreement only, the Landowners by their signatures below consent to the substitution of this form for that incorporated in Section 4.2 is of the Landowner Agreement. HUNT 90, LTD.,a Texas limited partnership BY: Leo B. Womack,General Partner By: George Gilman,General Partner GARTH-82, LTD., a Texas limited partnership By: Leo B.Womack,General Partner By: George Gilman,General Partner TEN GARTH,LTD., a Texas limited partnership By: Leo B. Womack, General Partner WANAMAKER BAYTOWN ONE, L.P., A Texas limited partnership, by its general partner GULF COAST COMMERCIAL MANAGEMENT, INC. By: Name: Title: For the purposes of this Agreement only, the Landowners by their signatures below consent to the substitution of this form for that incorporated in Section 4.2 is of the Landowner Agreement. HUNT 90, LTD., a Texas limited partnership Leo B. Womack,General Partner By: Georg ilman,General Partner GARTH-82, LTD., a Texas limited partnership By: Leo B. Womack,General Partner B y• /Z;-1 ' Geor it an, General Partner TEN GARTH, LTD., a Texas limited partnership By: Leo B. Womack,General Partner By: Georgeffilrr6n,General Partner THE WILLIAM J. RAPSON,JR., LIMITED PARTNERSHIP, a Texas limited partnership By: Rapson,LLC, a Texas limited liability company,General Partner By: Name: G-Oc> Title: I .A1I The Developer's tract I to ,1 1 I ; s rr7i r\t rat ,a� ,t R't r r r 1 7 . 1 1 1,1 t+tt i t r � It(dt jdt � ' ji�� 1 t 'i ;dt (�4 0 0 0 0 0 0 0 0 0 0 0 0 tc ac anZ o� Qe� N b 00 N • vt 00 m 0:4 r (l,i {fllltitilt�i 1,11, N fMfi 1 i D ti 1`n 0 �il r,l tll �tD dR bl �R tdt ti t III t FIj� 4 1s� IIS I�t� t Ise ( ea i(<I !R .1IM111 tl , II ' '��' situ �itIit I{ i 1 a, z � 1 if `o \ Ely1 I to ,1 1 I ; s rr7i r\t rat ,a� ,t R't r r r 1 7 . 1 1 1,1 t+tt i t r � It(dt jdt � ' ji�� 1 t 'i ;dt (�4 0 0 0 0 0 0 0 0 0 0 0 0 tc ac anZ o� Qe� N b 00 N • vt 00 m 0:4 r (l,i {fllltitilt�i 1,11, N fMfi 1 i ti 1`n 0 �il r,l tll �tD dR bl �('t t i�l� tdt � t� t III t FIj� 4 1s� IIS I�t� t I to ,1 1 I ; s rr7i r\t rat ,a� ,t R't r r r 1 7 . 1 1 1,1 t+tt i t r � It(dt jdt � ' ji�� 1 t 'i ;dt (�4 0 0 0 0 0 0 0 0 0 0 0 0 tc ac anZ o� Qe� N b 00 N • vt 00 m 0:4 r (l,i {fllltitilt�i 1,11, N STATE OF TEXAS) COUNTY OF HARRIS) OVERALL TRACT) FIELD NOTES of a 12.6572 acre tract of land situated in the W. C. R. R. Co. Survey No. 1, Abstract 899, Harris County, Texas and being out of and a part of that certain 82.9475 acre tract of land (surveyed to contain 83.0322 acres) conveyed by Gerald L. Smith to George Gilman, Trustee, by Deed dated April 28, 1978 and recorded under County Clerk's File No. F591325 of the Deed Records of Harris County, Texas. This 12.6572 acre tract of land is more particularly described by the following metes and bounds, to- wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.99989949. REFERENCE IS MADE TO THE MAP OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at a 5/8 inch iron rod, with cap (BHA), found in the West right -of -way line of Garth Road (I 10 feet wide right -of -way) for the Northeast comer of that certain residue of 145.840 acres conveyed by United States of America to John Santavy, et ux, by Deed dated January 1, 1944 and recorded in Volume 1327 at Page 1 of the Deed Records of Harris County, Texas and the Southeast comer of said 83.0322 acres. Said BEGINNING POINT has a State Plane Coordinate Value of Y= 13,858,281.23 and X= 3,243,099.37. THENCE: South 77 °09' 15" West along the South line of this tract, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 1089.16 feet to a 'h inch iron rod, with cap, set for the Southwest comer of this tract. THENCE: North 12 °50'45" West along the Southernmost West line of this tract for a distance of 380.36 feet to a %: inch iron rod, with cap, set for the Westernmost Northwest comer of this tract. THENCE: North 56'37'17" East along the Westernmost North line of this tract for a distance of 257.12 feet to a '/z inch iron rod, with cap, set for an interior comer of this tract. THENCE: North 12'01'11" West along the Northernmost West line of this tract for a distance of 52.87 feet to a % inch iron rod, with cap, set in the South right -of -way line of Hunt Road (proposed 120 feet wide right -of -way) for the Northernmost Northwest comer of this tract. PAGE 2 — 12.6572 ACRES. THENCE: North 77 °59' 11" East along the Easternmost North line of this tract for a distance of 887.21 feet to a'' /z inch iron rod, with cap, set in the West right -of -way line of said Garth Road and the East line of said 83.0322 acres. Said point has a State Plane Coordinate Value of Y= 13,858,787.71 and X= 3,243,024.39. THENCE: South 08 °25' 18" East along the East line of this tract, the East line of said 83.0322 acres and the West right -of -way line of said Garth Road for a distance of 512.06 feet to the PLACE OF BEGINNING and containing within these boundaries 12.6572 acres of land. SURVEYOR'S CERTIFICATE I, Juliene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field notes were prepared in conjunction with an ALTA /ASCM Land Title Survey made on the ground, under my supervision, in December of 2010 and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Baytown, Texas, this the 20`h day of December, A. D., 2010. Juliene Ramsey Registered Professional Land Surveyor No. 4379 10- 3805.12.6572acres.fdn.doc STATE OF TEXAS) COUNTY OF HARRIS) TRACT 1) FIELD NOTES of a 7.3750 acre tract of land situated in the W. C. R. R. Co. Survey No. 1, Abstract 899, Harris County, Texas and being out of and a part of that certain 82.9475 acre tract of land (surveyed to contain 83.0322 acres) conveyed by Gerald L. Smith to George Gilman, Trustee, by Deed dated April 28, 1978 and recorded under County Clerk's File No. F591325 of the Deed Records of Harris County, Texas. This 7.3750 acre tract of land is more particularly described by the following metes and bounds, to- wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.99989949. REFERENCE IS MADE TO THE MAP OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. COMMENCING at a 5/8 inch iron rod, with cap (BHA), found in the West right -of -way line of Garth Road (I 10 feet wide right -of -way) for the Northeast corner of that certain residue of 145.840 acres conveyed by United States of America to John Santavy, et ux, by Deed dated January 1, 1944 and recorded in Volume 1327 at Page 1 of the Deed Records of Harris County, Texas and the Southeast corner of said 83.0322 acres. Said point being the Southeast corner of that certain 1.3381 acres (Tract 4) surveyed this date and has a State Plane Coordinate Value of Y= 13,858,281.23 and X= 3,243,099.37. THENCE: South 77'09'15" West along the South line of said 1.338 1, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 230.15 feet to a'' /s inch iron rod, with cap, set for the Southwest corner of said 0.6595 of an acre and the Southernmost Southeast corner and POINT OF BEGINNING of this tract. Said BEGINNING POINT has a State Plane Coordinate Value of Y= 13,858,230.07 and 3,242,875.01. THENCE: Continue South 77'09'15" West along the Easternmost South line of this tract, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 253.67 feet to a' /2 inch iron rod, with cap, set for the Southeast corner of that certain 0.3124 of an acre (Tract 5) surveyed this date. Said point being an exterior corner of this tract. THENCE: North 12 °00'49" West along the East line of said 0.3124 of an acre and an interior line of this tract for a distance of 57.08 feet to a '/2 inch iron rod, with cap, set for an interior corner of this tract and the Northeast corner of said 0.3124 of an acre. PAGE 2 — 7.3750 ACRES. THENCE: South 78 °01'29" West along an interior South line of this tract and the North line of said 0.3124 of an acre for a distance of 231.30 feet to a'' /2 inch iron rod, with cap, set for an interior comer of this tract and the Northwest corner of said 0.3124 of an acre. THENCE: South 12 °00'49" East along an interior line of this tract and the West line of said 0.3124 of an acre for a distance of 60.59 feet to a'' /2 inch iron rod, with cap, set in the South line of said 83.0322 acres and the North line of the residue of said 145.840 acres for the Southwest corner of said 0.3124 of an acre and an exterior corner of this tract. THENCE: South 77 °09' 15" West along the Westernmost South line of this tract, the North line of said residue of said 145.840 acres and the South line of said 83.0322 acres for a distance of 140.01 feet to a %2 inch iron rod, with cap, set for the Southwest comer of this tract and the Southeast corner of that certain 2.3151 acres (Detention Pond Tract) surveyed this date. THENCE: North 12 °01' 11" West along the West line of this tract and the East line of said 2.1030 acres and at 470.60 feet pass a'h inch iron rod, with cap, set for the Northeast comer of said 2.3151 acres; in all, a total distance of 523.47 feet to a' /2 inch iron rod, with cap, set in the South right -of -way line of Hunt Road (proposed 120 feet wide right - of -way) for the Northwest corner of this tract. THENCE: North 77'59'11" East along the Westernmost North line of this tract and the South right -of -way line of said Hunt Road (proposed 120 feet wide right -of -way) for a distance of 631.50 feet to a'' /2 inch iron rod, with cap, set for the Northernmost Northeast corner of this tract and the Northwest corner of that certain 1.3167 acres (Tract 2) surveyed this date. THENCE: South 12 °00'49" East along the Northernmost East line of this tract and the West line of said 1.3167 acres for a distance of 221.59 feet to a %2 inch iron rod, with cap, set for an interior corner of this tract and the Southwest corner of said 1.3167 acres. THENCE: North 89 °42'25" East along the Easternmost North line of this tract and the Westernmost South line of said 1.3167 acres for a distance of 58.61 feet to a'h inch iron rod, with cap, set for an angle point in said line. THENCE: North 77 °59' 11" East along the Easternmost North line of this tract and the Westernmost South line of said 1.3167 acres for a distance of 153.60 feet to a' /2 inch iron rod, with cap, set for an interior corner of this tract and the Southernmost Southeast comer of said 1.3167 acres. THENCE: North 08 °25' 18" West along an exterior line of this tract and the Southernmost East line of said 1.3167 acres for a distance of 10.02 feet to a' /2 inch iron rod, with cap, set for an interior comer of said 1.3167 acres and an exterior corner of this tract. PAGE 3 — 7.3750 ACRES. THENCE: North 77'59'11 " East along the Easternmost North line of this tract and the Easternmost South line of said 1.3167 acres for a distance of 30.06 feet to a'' /, inch iron rod, with cap, set in the West right -of -way line of said Garth Road and the East line of said 83.0322 acres for the Easternmost Northeast corner of this tract and the Easternmost Southeast corner of said 1.3167 acres. THENCE: South 08'25'18" East along the Easternmost East line of this tract, the East line of said 83.0322 acres and the West right -of -way line of said Garth Road for a distance of 40.08 feet to a % inch iron rod, with cap, set for the Easternmost Southeast corner of this tract and the Northeast corner said 1.3381 acres (Tract 3) surveyed this date. THENCE: South 77 °59' 11" West along the Easternmost South line of this tract and the North line of said 1.3381 acres for a distance of 184.85 feet to a'' /z inch iron rod, with cap, set for an angle point in said line. THENCE: South 89 °42'25" West along the Easternmost South line of this tract and the North line of said 1.3381 acres for a distance of 55.47 feet to a'' /2 inch iron rod, with cap, set for an interior corner of this tract and the Northwest corner of said 1.3381 acres. THENCE: South 12 °00'49" East along the Southernmost East line of this tract, the West line of said 1.3381 acres for a distance of 158.63 feet to a'' /: inch iron, with cap, set for an angle point in said line. THENCE: South 08'25'18" East along the Southernmost East line of this tract and the West line of said 1.3381 acres for a distance of 103.73 feet to the PLACE OF BEGINNING and containing within these boundaries 7.3750 acres of land. SURVEYOR'S CERTIFICATE I, Juliene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field notes were prepared in conjunction with an ALTA/ASCM Land Title Survey made on the ground, under my supervision, in December of 2010 and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Baytown, Texas, this the 201h day of December, A. D., 2010. Juliene Ramsey Registered Professional Land Surveyor No. 4379 l 0- 3805.Tract l .fdn.doc STATE OF TEXAS) COUNTY OF HARRIS) TRACT 2) FIELD NOTES of a 1.3167 acre tract of land situated in the W. C. R. R. Co. Survey No. 1, Abstract 899, Harris County, Texas and being out of and a part of that certain 82.9475 acre tract of land (surveyed to contain 83.0322 acres) conveyed by Gerald L. Smith to George Gilman, Trustee, by Deed dated April 28, 1978 and recorded under County Clerk's File No. F591325 of the Deed Records of Harris County, Texas. This 1.3167 acre tract of land is more particularly described by the following metes and bounds, to- wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.99989949. REFERENCE IS MADE TO THE MAP OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. COMMENCING at a 518 inch iron rod, with cap (BHA), found in the West right -of -way line of Garth Road (I 10 feet wide right -of -way) for the Northeast corner of that certain residue of 145.840 acres conveyed by United States of America to John Santavy, et ux, by Deed dated January 1, 1944 and recorded in Volume 1327 at Page 1 of the Deed Records of Harris County, Texas and the Southeast corner of said 83.0322 acres. Said point being the Southeast corner of that certain 1.3381 acres (Tract 3) surveyed this date. Said COMMENCING POINT has a State Plane Coordinate Value of Y= 13,858,281.23 and X= 3,243,099.37. THENCE: North 08125'l 8" West along the East line of said 1.3381 acres (Tract 3), the Easternmost East line of that certain 7.3750 acres (Tract 1) surveyed this date, the East line of said 83.0322 acres and the West right -of -way line of said Garth Road and at a distance of 248.04 feet pass a'' /Z inch iron rod, with cap, set for the Northeast corner of 1.3381 acres and the Easternmost Southeast corner of said 7.3750 acres; in all, a total distance of 288.12 feet to a %Z inch iron rod, with cap, set for the Easternmost Northeast corner of said 7.3750 acres and the Easternmost Southeast corner and POINT OF BEGINNING of this tract. THENCE: South 77059'l 1 " West along the Easternmost South line of this tract and the Easternmost North line of said 7.3750 acres for a distance of 30.06 feet to a %z inch iron rod, with cap, set for an interior corner of this tract and an exterior corner of said 7.3750 acres. PAGE 2 — 1.3167 ACRES, TRACT 2. THENCE: South 08'25'18" East along the Southernmost East line of this tract and an exterior line of said 7.3750 acres for a distance of 10.02 feet to a''V2 inch iron rod, with cap, set for an interior corner of said 7.3750 acres and the Southernmost Southeast corner of this tract. THENCE: South 77 °59' 11" West along the Westernmost South line of this tract and the Easternmost North line of said 7.3750 acres for a distance of 153.60 feet to a '/: inch iron rod, with cap, set for an angle point in said line. THENCE: South 89 °42'25" West along the Westernmost South line of this tract and the Easternmost North line of said 7.3750 acres for a distance of 58.61 feet to a % inch iron rod, with cap, set for an interior corner of said 7.3750 acres and the Southwest corner of this tract. THENCE: North 12 °00'49" West along the West line of this tract and the Northernmost East line of said 7.3750 acres for a distance of 221.59 feet to a '/z inch iron rod, with cap, set in the South line of Hunt Road (proposed 120 feet wide right -of -way) for the Northernmost Northeast corner of said 7.3750 acres and the Northwest corner of this tract. THENCE: North 77 °59' 11" East along the North line of this tract and the South right -of- way line of said Hunt Road (proposed 120 feet wide right -of -way) for a distance of 255.71 feet to a % inch iron rod, with cap, set in the West right -of -way line of said Garth Road and the East line of said 83.0322 acres for the Northeast corner of this tract and the Southeast corner of said Hunt Road. Said point has a State Plane Coordinate Value of Y= 13,858,787.71 and X= 3,243,024.39. THENCE: South 08'25'18" East along the East line of this tract, the East line of said 83.0322 acres and the West right -of -way line of said Garth Road for a distance of 223.94 feet to the PLACE OF BEGINNING and containing within these boundaries 1.3167 acres of land. SURVEYOR'S CERTIFICATE 1, Juliene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field notes were prepared in conjunction with an ALTA /ASCM Land Title Survey made on the ground, under my supervision, in December of 2010 and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Baytown, Texas, this the 20'h day of December, A. D., 2010. Juliene Ramsey Registered Professional Land Surveyor No. 4379 10- 3805.Tract2. fdn.doc STATE OF TEXAS) COUNTY OF HARRIS) TRACT 3) FIELD NOTES of a 1.3381 acre tract of land situated in the W. C. R. R. Co. Survey No. 1, Abstract 899, Harris County, Texas and being out of and a part of that certain 82.9475 acre tract of land (surveyed to contain 83.0322 acres) conveyed by Gerald L. Smith to George Gilman, Trustee, by Deed dated April 28, 1978 and recorded under County Clerk's File No. F591325 of the Deed Records of Harris County, Texas. This 1.3381 acre tract of land is more particularly described by the following metes and bounds, to- wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.99989949. REFERENCE IS MADE TO THE MAP OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. BEGINNING at a 518 inch iron rod, with cap (BHA), found in the West right -of -way line of Garth Road (I 10 feet wide right -of -way) for the Northeast corner of that certain residue of 145.840 acres conveyed by United States of America to John Santavy, et ux, by Deed dated January 1, 1944 and recorded in Volume 1327 at Page 1 of the Deed Records of Harris County, Texas and the Southeast corner of said 83.0322 acres. Said point being the Southeast corner and POINT OF BEGINNING of this tract. Said BEGINNING POINT has a State Plane Coordinate Value of Y= 13,858,281.23 and X= 3,243,099.37. THENCE: South 77'09'15" West along the South line of this tract, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 230.15 feet to a'' /: inch iron rod, with cap, set for the Southwest corner of this tract and the Southernmost Southeast corner of that certain 7.3750 acres (Tract 1) surveyed this date. THENCE: North 08'25'18" West along the West line of this tract and the Southernmost East line of said 7.3750 acres for a distance of 103.73 feet to a'' /Z inch iron rod, with cap, set for an angle point in said line. THENCE: North 12 °00'49" West along the West line of this tract and the Southernmost East line of said 7.3750 acres for a distance of 158.63 feet to a % inch iron rod, with cap, set for the Northwest corner of this tract and an interior corner of said 7.3750 acres (Tract 1). PAGE 2 — 1.3381 ACRES, TRACT 3. THENCE: North 89 °42'25" East along the North line of this tract and the Easternmost South line of said 7.3750 acres for a distance of 55.47 feet to a'' /2 inch iron rod, with cap, set for an angle point in said line. THENCE: North 77 °59' 11" East along the North line of this tract and the Easternmost South line of said 7.3750 acres for a distance of 184.85 feet to a % inch iron rod, with cap, set in the West right -of -way line of said Garth Road and the East line of said 83.0322 acres for the Northeast corner of this tract and the Easternmost Southeast comer of said 7.3750 acres. THENCE: South 08'25'18" East along the East line of this tract, the East line of said 83.0322 acres and the West right -of -way line of said Garth Road for a distance of 248.04 feet to the PLACE OF BEGINNING and containing within these boundaries 1.3381 acres of land. SURVEYOR'S CERTIFICATE I, Juliene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field notes were prepared in conjunction with an ALTA/ASCM Land Title Survey made on the ground, under my supervision, in December of 2010 and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Baytown, Texas, this the 201h day of December, A. D., 2010. Juliene Ramsey Registered Professional Land Surveyor No. 4379 10- 3805.Tract3.fdn.doc STATE OF TEXAS) COUNTY OF HARRIS) TRACT 4) FIELD NOTES of a 0.3124 of an acre tract of land situated in the W. C. R. R. Co. Survey No. 1, Abstract 899, Harris County, Texas and being out of and a part of that certain 82.9475 acre tract of land (surveyed to contain 83.0322 acres) conveyed by Gerald L. Smith to George Gilman, Trustee, by Deed dated April 28, 1978 and recorded under County Clerk's File No. F591325 of the Deed Records of Harris County, Texas. This 0.0.3124 of an acre tract of land is more particularly described by the following metes and bounds, to -wit: NOTE: ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REFER TO THE TEXAS STATE PLANE COORDINATE SYSTEM, SOUTH CENTRAL ZONE, NAD 83. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR = 0.99989949. REFERENCE IS MADE TO THE MAP OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. COMMENCING at a 5/8 inch iron rod, with cap (BHA), found in the West right -of -way line of Garth Road (I 10 feet wide right -of -way) for the Northeast corner of that certain residue of 145.840 acres conveyed by United States of America to John Santavy, et ux, by Deed dated January 1, 1944 and recorded in Volume 1327 at Page 1 of the Deed Records of Harris County, Texas and the Southeast corner of said 83.0322 acres. Said point being the Southeast corner and POINT OF BEGINNING of this tract. Said COMMENCING POINT has a State Plane Coordinate Value of Y= 13,858,281.23 and X= 3,243,099.37. THENCE: South 77 °09' 15" West along the South line of this tract, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 230.15 feet to a'' /2 inch iron rod, with cap, set for the Southwest corner of said 0.6595 of an acre and the Southernmost Southeast corner of that certain 7.3750 acres (Tract 1) surveyed this date. THENCE: Continue South 77'09'15" West along the Easternmost South line of said 7.3750 acres, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 253.67 feet to a '/2 inch iron rod, with cap, set for an exterior corner of said 7.3750 acres and the Southeast corner and POINT OF BEGINNING of this tract. THENCE: Continue South 77 °09' 15" West along the South line of this tract, the South line of said 83.0322 acres and the North line of said residue of said 145.840 acres for a distance of 231.33 feet to a % inch iron rod, with cap, set for the Southwest corner of this tract and an exterior corner of said 7.3750 acres. PAGE 2 — 0.3124 OF AN ACRE, TRACT 4. THENCE: North 12 °00'49" West along the West line of this tract and an interior line of said 7.3750 acres for a distance of 60.59 feet to a'' /: inch iron rod, with cap, set for the Northwest corner of this tract and an interior corner of said 7.3750 acres. THENCE: North 78 °01'29" East along the North line of this tract and an interior line of said 7.3750 acres for a distance of 231.30 feet to a %: inch iron rod, with cap, set for the Northeast corner of this tract and an interior corner of said 7.3750 acres. THENCE: South 12 °00'49" East along the East line of this tract and an interior line of said 7.3750 acres for a distance of 57.08 feet to the PLACE OF BEGINNING and containing within these boundaries 0.3124 of an acre of land. SURVEYOR'S CERTIFICATE 1, Juliene Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field notes were prepared in conjunction with an ALTA/ASCM Land Title Survey made on the ground, under my supervision, in December of 2010 and that all lines, boundaries and landmarks are accurately described therein. WITNESS my hand and seal at Baytown, Texas, this the 20a' day of December, A. D., 2010. Juliene Ramsey Registered Professional Land Surveyor No. 4379 10 -3 805 .Tract4. fdn.doc EXHIBIT B The Public Improvements Project component Est. Total Cost Developer's Share Design, Engineers, Plans $ 171,000 $ 85,500 Traffic Signal at the intersection of $ 160,000 $ 80,000 Hunt Road and Garth Road Extension Hunt Road approximately 900' $ 335,000 $167,500 west of the intersection of Garth and Hunt Roads Widen the existing section of Hunt Road $ 180,000 $ 90,000 250' east from the intersection with Garth Road to a boulevard section to match the west roadway and to transition to the existing alignment over the next 300' Utilities (including storm water) $ 180,000 $ 90,000 Misc (including contingency) $ 274,000 $137,000 TOTAL $1,300,000 $650,000