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Ordinance No. 12,238OR,DINANCIE. NO. 12,238 A54 ORDINANCE wo "ruIE erry COUNCIL, CAFT THF7 CATY CM: BAYI-0'%VN� '11TICAS, ALTI-1-101TIZING YAND, IDIRF�CTING NIA►(:,')Iz 'Y0 1,--XtIC:1JTI-', ANI-) TI-IE C-71"I-Y CTIATEM. 70 /wwrism, wo /w Yaw minwi, m imm cw 'rywwis ,A,CjlkEITPvIFQQT XVI= P411110ANA], TUBY-., SUPPIM CC'YMPANNI; ANI,:) l"' f�C,:)V'f D UNCI Fown no 13,A-ATiTI IFRHOF. IM IN ORDAINED BY 71,1113 c(3 uNcii. cw imiz corm 0317 EUVIATO NAT IC '110CAS- Section I 'rhat the cwy councit or we cin of naytowin "rexas. hereby audumizes luld dire cts"he Mayor and City CIerk Of tile CUY OF l3 wad LC')'%VI-I ten eXCCLIt'C' cAIICI anest to mi Palmient ill LACLI cA'T'axcs Agreemunt N. h4alkinal '110c SLIPJAY COmpany. A c<)t-.)),, cd' s,"dcl agrocincrit is attached herew, as arlsed Exhibit "'A&' and incoil3orated hercin I all hitcrUs mmi purposes, Section 2: 'nos cwdinance shall take effoet immediatchy hvin-a and after its passame by the Cit)' COL►ICH 0-1-thC Cit�,' IDF f3a_'IONVII. U5411113DUCED. READ, alul PASSED by tile at-f-trill"Iti-ve C!it' City ol"llaytown, this the 2:5 day Of* April. 201 3. .......... WEPIAEN 1-1. D()NCARI, S,, Niayor Joe) I V I, C j YN)� , El I,?, V IS Ci, 1-1 AlI'PRC)VI--,r"-') /kS -I'0, Exhibit "A" NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER PAYMENT IN LIEU OF TAXES AGREEMENT STATE OF TEXAS COUNTY OF CHAMBERS This Payment in Lieu of Taxes Agreement ( "Agreement ") is made and entered into between the City of Baytown, Texas, a municipal corporation in Harris and Chambers Counties, Texas, hereinafter also referred to as "Baytown" or "City," and National Tube Supply Company, a Delaware corporation (the "Property Owner "). In consideration of the promises and of the mutual covenants and agreements herein contained, it is agreed by and between the City and Property Owner as follows: WHEREAS, the Property Owner owns that property located within Chambers County Improvement District No. 3 and within the City of Baytown for limited purposes; and WHEREAS, the Property Owner purchased such property subject to the Declaration of Covenants, Conditions and Restrictions for Bay 10 Business Park, hereinafter referred to as the "Declarations "; and WHEREAS, the Declarations require that the Property Owners with a proposed future development value equal to or greater than $1,000,000, as will be determined by the Chambers County Appraisal District, to enter into an agreement with the City for payments in lieu of ad valorem taxes; and WHEREAS, the Declarations provide that such an agreement is a condition to any construction of improvements on the property; and NOW THEREFORE, the City and the Property Owner, in consideration of the mutual covenants, agreements and benefits herein contained, do mutually agree as follows: I. Parties The parties to the Agreement and their addresses are: City of Baytown National Tube Supply Company Attn: City Manager Attn: Gary Chess, President P.O. Box 424 National Tube Supply Company Baytown, TX 77522 925 Central Avenue Fax No. (281) 420 -6586 University Park, Illinois 60484 11. Pro e This Agreement includes provisions concerning certain real estate and tangible personal property owned or leased by the Property Owner and located within the boundaries of Chambers County Improvement District No. 3 as more particularly described in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes, hereinafter sometimes referred to as the "Property" or the "affected area." Ill. Term The term of this Agreement is seven tax years, from 2013 through 2019, unless it is sooner terminated under the provisions hereof. This Agreement shall be effective and binding on the parties hereto upon execution hereof on behalf of the parties to this Agreement and shall remain in effect for seven tax years. This Agreement supersedes any prior existing agreements between the Property Owner and the City relating to the subject matter hereof and governing the Property; to the extent any such prior existing agreement required payment on or after January 1, 2013, such payment obligations are hereby canceled and are superseded by the provisions contained herein. IV. Payment in Lieu of Taxes (PILOT) As part of the consideration for the City's undertakings as set forth above, the Property Owner agrees to pay to the City on or before December 31 K of each year during the term hereof a sum of money equal to the Base Year PILOT Payment plus the Added Value PILOT Payment. The sum of the Base Value PILOT Payment plus the Added Value PILOT Payment shall be referred to as the PILOT Payment. A. Base Value PILOT Payment The Base Value PILOT Payment shall be calculated as follows: (1) the sales price of the Property paid by the Property Owner, which Property Owner has verified under oath to be One Million Eight Hundred Ninety -Nine Thousand Six Hundred Thirty-Eight and No/100 Dollars ($1,899,638.00), hereinafter referred to as the "Base Year Value," multiplied by (2) the property tax rate per $100.00 of assessed valuation adopted by the City Council for the City, multiplied by (3) the applicable Yearly Payment Rate, which is the sum of the PILOT Payment Rate plus the Public Community Improvement Rate and shall be determined using the following chart: 2 B. Added Value PILOT Payment The Added Value PILOT Payment shall be calculated as follows: (1) the fair market value as determined by the City, of all of the Property Owner's land and all other tangible property, real, personal or mixed, within the affected area on January 1 of each year in which a PILOT Payment is due hereunder minus the Base Year Value, the difference of which is hereinafter referred to as the "Added Value," multiplied by (2) the property tax rate per $100.00 of assessed valuation adopted by the City Council for the City for each year of the term of this Agreement, multiplied by (3) the applicable total added value PILOT payment rate detailed below, which shall be determined using the following chart: PUBLIC YEARLY TAX YEAR PILOT PAYMENT COMMUrIITY PAYMENT TAX YEAR RATE IMPROVEMENT PILOT PILOT PAYMENT RATE RATE 2013 .61 .01 .62 2014 .62 .01 .63 2015 .62 .01 .63 2016 .63 .01 .64 2017 .63 .01 .64 2018 .63 .01 .64 2019 .64 .01 .65 B. Added Value PILOT Payment The Added Value PILOT Payment shall be calculated as follows: (1) the fair market value as determined by the City, of all of the Property Owner's land and all other tangible property, real, personal or mixed, within the affected area on January 1 of each year in which a PILOT Payment is due hereunder minus the Base Year Value, the difference of which is hereinafter referred to as the "Added Value," multiplied by (2) the property tax rate per $100.00 of assessed valuation adopted by the City Council for the City for each year of the term of this Agreement, multiplied by (3) the applicable total added value PILOT payment rate detailed below, which shall be determined using the following chart: If the formula used in calculating the Added Value PILOT Payment produces a negative number, then the Added Value PILOT Payment shall be $0.00. PUBLIC ADDED VALUE COMMUNITY TOTAL ADDED VALUE TAX YEAR PILOT PAYMENT PILOT PILOT PAYMENT RATE IM IMPROVEMENT -RATE 2013 0 .01 .01 2014 0 .01 .01 2015 0 .01 .01 2016 0 .01 .01 2017 .21 .01 .22 2018 .42 .01 .43 2019 .64 .01 .65 If the formula used in calculating the Added Value PILOT Payment produces a negative number, then the Added Value PILOT Payment shall be $0.00. V. Lien and Damages To secure the payment of any PILOT and any other sums due hereunder (including, without limitation, interest, late fees or delinquency charges), a lien by virtue of the Declarations and /or this Agreement is hereby reserved and created in favor of the City against the affected area. This lien is subject only to and inferior to any and all first lien purchase money deeds of trust and liens in favor of third party financial institutions or representing bona fide seller financing. The lien for the payment of the PILOT Payment shall be binding with a power of sale to enforce such lien by non judicial foreclosure pursuant to the provisions of Section 51.002 of the Texas Property Code (the "Code "), or any successor statute governing enforcement of consensual liens on real estate. Alternatively, the City may institute a suit or proceeding at law or in equity or take any lawful action to enforce collection of any defaulted PILOT Payment, including, but not limited to, an action to foreclose such lien. Any foreclosure may be brought by the City in the same manner as an action to foreclose the lien of a mortgage of deed of trust on real property. Additionally, the obligations contained in Article IV shall be enforceable by the City pursuant to all applicable laws and by all applicable means, including but not limited to, by an action for damages or an action for an injunction, or both. Should the City prevail in a suit to enforce the terms and provisions of this Article IV, the City shall also be entitled to recover a reasonable sum as attorney's fees. It is further agreed that if a suit for injunctive relief is brought for enforcement of Article IV, the Property Owner shall have no right to and shall be conclusively deemed to have covenanted and agreed not to (and to have waived any right to), urge or assert as a defense that an adequate remedy at law exists. VI. Valuations A. Procedure For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owner hereunder, there are hereby adopted and made a part hereof all provisions of the Constitution and statutes of the State of Texas pertaining to ad valorem taxation as amended throughout the term of this Agreement (including, in particular, the Texas Property Tax Code), except, however, that (i) to the extent that any of such provisions would require the assessment of the Property Owner's property on an equal and uniform basis with property in the general corporate limits of the City, the provisions of this Agreement will control where in conflict with the provisions of such laws and (ii) the income method of appraisal as described in Section 23.012 of the Texas Property Tax Code shall not be limited to only properties for which a rental market exists. Specifically, nothing contained herein shall limit the income method of appraisal specified in Section 23.012 of the Texas Property Tax Code to only properties for which a rental market exists, instead if such method is used, the chief appraiser shall: 1. use income and expense data pertaining to the property, if possible and applicable; 2. make any projections of future income and expenses only from clear and appropriate evidence; 3. use data from generally accepted sources in determining an appropriate capitalization rate; 4. determine a capitalization rate for income - producing property that includes a reasonable return on investment, taking into account the risk associated with the investment. B. Valuation of Property Outside the Corporate Limits The parties hereto recognize that said Chambers County Appraisal District is not required to appraise the land, improvements, and tangible property, real or mixed, in the affected area, which is not within the corporate limits of the City, for the purpose of computing the payments hereunder. Therefore, the parties agree that to determine the fair market value of all of the Property Owner's land, improvements, and tangible property located outside the corporate limits of the City in accordance with the market value computation contemplated in the Texas Property Tax Code for the purpose of calculating the Property Owner's payment in the manner described above, the City may choose to use the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District (or through administrative or judicial appeal of the Chambers County Appraisal District's determination), or by appraisal conducted by the City and/or by an independent appraiser of the City's selection, and at the City's expense. Nothing contained herein shall ever be construed as in derogation of the authority of the Chambers County Appraisal District to establish the appraised value of land, improvements, and tangible personal property in the annexed portion for ad valorem tax purposes. C. Binding Determination of fair market values in the above - stated manner outside the corporate limits shall be made by the City, which shall be final and binding unless the Property Owner within thirty (30) days after receipt of the valuation by Chambers County or the City, as applicable, petitions for a Declaratory Judgment to the Civil District Court of Harris County, Texas, as provided for by Section XIV hereof. In determining the fair market value of property and improvements as used herein, the City shall base its determination on the fair market value as defined in Section VI herein, giving due consideration to comparable present day facilities considering and giving effect to sound engineering valuation practices relative to service life, life expectancy, process and functional obsolescence. D. Statements The City shall mail one statement to the Property Owner on or about December 1 of each year showing the total amount due on December 31 of such year pursuant to this Agreement. Such statement shall be mailed to the address noted in Article I of this Agreement. Any amounts due on December 31 that are not paid when due shall become delinquent on January 1 of the following year. Provided, however, if the tax statement is mailed after December 10, the delinquency date is postponed to the first day of the next month that will provide a period of at least 21 days after the date of mailing for payment of the amount due. Delinquent amounts shall be immediately subject to the same penalties, interest, attorneys' fees and costs of collection as recoverable by the City in the case of delinquent ad valorem taxes. E. Valuation Contests If any differences concerning the appraised values shall not have been finally determined by the due date of the Property Owner's payment hereunder and the Property Owner desires to pursue any additional available remedies, the Property Owner shall, without prejudice to such remedies, pay to the City by December 31 of each year (subject to the exception in the preceding paragraph for statements mailed after December 10), such amount as is provided in the Texas Property Tax Code, as amended throughout the term of this Agreement, for payments made under such conditions by owners of property within the general corporate limits of the City subject to ad valorem taxation. Any refund payable by the City to the Property Owner hereunder shall be paid within 60 days after receipt by the City of both Chambers County Appraisal District's form notification that the appraised value of the property has been reduced and a written refund request by the Property Owner; if not paid timely, the refund amount shall bear interest at eight percent per annum beginning 60 days after the City received both the Property Owner's written refund request and the Chambers County Appraisal District's formal notification that the appraised value of the property has been reduced. VII. Compliance with Law The City and the Property Owner mutually recognize that the health and welfare of Baytown residents require adherence to high standards of quality in the air emissions, water effluents and noise, vibration and toxic levels of those industries located in Chambers County Improvement District No. 3, and that development within the District may have an impact on the drainage of surrounding areas. To this end, the Property Owner and the City agree that the same standards and criteria relative to noise, vibration and toxic levels and drainage and flood control which are adopted by the City and made applicable to portions of the City's extraterritorial jurisdiction shall also be applicable to the affected area. The Property Owner agrees that any industrial or other activity carried on within the affected area will be constructed in strict compliance with all applicable valid state and federal air and water pollution control standards. if the Property Owner's property within the affected area is subject to the Occupational Safety and Health Act, 29 U.S.C. 65, et seq., as amended, then the Property Owner shall undertake to ensure that its facilities and improvements in the affected area comply with the applicable fire safety standards of such act and the resolutions from time to time promulgated hereunder (the "OSHA Standards "). The Property Owner agrees that any structure built within the affected area shall be built in accordance with the building code adopted by the City in effect at the time of construction. The City and the Property Owner recognize that activities in within Chambers County Improvement District No. 3 are subject to regulation by other governmental entities, including the state and federal governments and their various departments and agencies. The City and the Property Owner also recognize that the City may have an interest in activities in Chambers County Improvement District No. 3 that are regulated by other governmental entities. Nothing in this Agreement is intended to limit the City's right and authority to communicate its interest in, or opposition to, those activities to the applicable regulatory agencies or to participate, to the extent allowed by law, in any related administrative or judicial proceeding. VIII. Inspections The Chief Appraiser of the Chambers County Appraisal District and the City or its independent appraiser shall have the same right to enter and inspect the Property Owner's premises and the same right to examine the Property Owner's books and records to determine the value of the Property Owner's properties as are provided in the Texas Property Tax Code as amended. IX. Public Community Improvement The Property Owner may apply to the City for reimbursement for a Public Community Improvement Project designed to further the public community improvement goals of the City of Baytown. Such project, the duration of the project, and the location thereof must be approved in writing by the City Manager of the City based upon the public community improvement goals of the City in effect at the time of the application. The Public Community Improvement Project must be completed prior to the expiration of the Agreement year during which it is approved to be eligible for reimbursement, except if it is approved as a multi -year project. The Public Community Improvement Project may be for multiple years; however, in order to be eligible for reimbursement in accordance with this article, it must be completed prior to the expiration or termination of this Agreement. Further, the project may be constructed on the Property Owner's property; provided that the project is visible from and enhances a public way or other public property. Any reimbursement under this article shall be subject to the City Manager's determination that the completed Public Community Improvement Project meets or exceeds those improvement efforts proposed and approved prior to the start of the project. Reimbursement may not exceed the amount the Property Owner will pay to the City based solely upon the Public Community Improvement Rate established in Article IV hereof during the term of this Agreement. It is expressly understood and agreed that in any year during the term of this Agreement, the Property Owner shall not submit a request for reimbursement which exceeds the amount the Property Owner has paid to the City based solely upon the Public Community Improvement Rate established in Article IV hereof. If the Property Owner fails to receive the City Manager's approval of a Public Community Improvement Project prior to the expiration of an Agreement year, the Property Owner will have no claim to the monies paid to the City based upon the Public Community Improvement Rate and the City shall use such funds for a project consistent with the City's public community improvement goals. X. Default In the event of default by the Property Owner in the performance of any of the terms of this Agreement, including the obligation to make the payments above provided for, the City shall have the option, if such default is not fully corrected within sixty (60) days from the giving of written notice of such default to the Property Owner to either (i) declare this Agreement terminated or (ii) continue the term of this Agreement and collect the payments required hereunder. Notwithstanding any to the contrary contained herein, should the City determine the Property Owner is in default according to the terms and conditions of Section VII hereof, the City shall notify the Property Owner in writing by U.S. Mail, certified return receipt requested, at the address stated in this Agreement, and if such default is not cured within sixty (60) days from the date of such notice (the "Cure Period ") then such failure to cure shall constitute a material breach of this Agreement; provided that, in the case of a default under Section VII for causes beyond the Property Owner's control that cannot with due diligence be cured within such sixty (60) day period or in the event that the failure to cure results from ongoing negotiations with federal or state officials, administrative proceedings or litigation regarding the necessary cure steps, then the cure period shall be extended until such negotiations, administrative proceedings or litigation are concluded. XI. Notice Any notice to the Property Owner or the City concerning the matters to which the Agreement relates may be given in writing by registered or certified mail addressed to the Property Owner or the City at the appropriate respective addresses set forth in Article 1 this Agreement. Any such notice in writing may be given in any other manner. If given by registered or certified mail, the notice shall be effective when mailed. With the exception of annual bills for payments due herein, notice given in any other manner shall be effective when received by the Property Owner or the City, as the case may be. XII. No Further Expansion of Taxing Jurisdiction Nothing herein contained shall be construed to change or enlarge the jurisdiction, power or authority of the City over or with respect to the affected area as prescribed by applicable law, except as specifically provided in this Agreement. The Property Owner shall not be obligated by virtue of this Agreement to make any ad valorem tax payments to the City during the term of this Agreement. XIII. Reimbursement for Services If the Property Owner requests and receives mutual aid firefighting assistance and is a member of Channel Industries Mutual Aid organization ( "CIMA ") or similar organization, the Property Owner shall reimburse the City for costs incurred by the City in providing fire protection services to the Property Owner as shall be provided in the charter, bylaws and agreements pursuant to which CIMA or such similar organization is organized and operates. If the Property Owner requests and receives mutual aid firefighting assistance and is not a member of CIMA or a similar organization, then the Property Owner shall be required to reimburse the City for costs actually expended by the City in providing any firefighting assistance to the Property Owner, including chemical and personnel costs. XIV. Declaratory Judgment Action If any disagreement arises between the parties concerning the interpretation of this Agreement, it is agreed that either of the said parties may petition any Civil District Court of Harris County, Texas, for a Declaratory Judgment determining said controversy and the cause shall be tried as other civil causes. If the controversy affects a PILOT Payment, the Property Owner shall, pending final determination of said controversy, pay to the City on the due date the same amount which was paid to the City for the last preceding period as to which there was no controversy concerning the amount owed by the Property Owner to the City. The Property Owner agrees to tender any additional amount of potential liability to the registry of the Civil District Court, Harris County, Texas, pending final determination of the controversy beyond any further appeal. XV. Assignment This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Property Owner and the City only. If the Property Owner conveys all or any part of the property then covered hereby, the Property Owner shall notify the City within 30 days of the conveyance and shall thereafter cease to be obligated with respect to the property so conveyed and the Base Value shall be apportioned between the Property Owner and the grantee based upon the property conveyed, only if the grantee thereof enters into a Payment in Lieu of Tax Agreement with the City with respect to such property so conveyed. No right or obligation under this Agreement may be sold, assigned or transferred. XVI. Authority The Property Owner covenants that it has the authority to enter into this Agreement by virtue of being either the legal or equitable owner of a possessory estate (including a leasehold estate) in the land comprising the affected area, which will not terminate before the expiration date of this Agreement. Additionally, the officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the party he represents. XVII. No Municipal Services It is agreed that during the term of this Agreement, the City is under no obligation to provide any governmental, proprietary or other municipal services to the affected area. Specifically, but without limitation, it is agreed that the City shall not be required to furnish (1) sewer or water service, (2) police protection, (3) fire protection (4) road or street repairs, and (5) garbage pickup service. XVIII. Severability If any provision of this Agreement, or any covenant, obligation or agreement contained herein, including, without limitation, that term hereof, is determined by a court to be invalidated or unenforceable, such provision, covenant, obligation or agreement shall be reformed so as to comply with applicable law. If it is not possible to so reform such provision, covenant, obligation or agreement, such determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. Provided, further that such invalidity or unenforceability shall not affect any valid and enforceable provision thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. Notwithstanding the above, if the application of this Section XVIII requires reformation or revision of any term that removes or materially diminishes the obligation of the Property Owner to make the payments to the City described herein (except in the event of a reformation that shortens the term of this Agreement), the City shall have the option to declare this Agreement terminated. M. Complete Agreement This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. XX. Non - waiver Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce by an appropriate remedy, strict compliance with 9 any other obligation hereunder to exercise any right or remedy occurring as a result of any future default or failure of performance. XXI. Ambiguities In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. XXII. Headinas The headings appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. XXIII. Choice of Law: Venue This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. XXIV. Agreement Read The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 10 IN WITNESS WHEREOF, this Agreement is executed in multiple counterparts on b9,1Elf of the Property er this /A day of ,+R.L , 2013, and on behalf of the City this y of ,2013. NATIONAL TUBE SUPPLY COMPANY, a Delaware c. .•ration 4110v r.-479)1r, Printed Ar., e dfr- Ti e STATE OF rLLIMOIS § COUNTY OF The foregoing instrument was acknowledged before me this I g day of {-tprr'I , 2013, by Cogs S , in his capacity as T'res of National Tube Supply Company, a Delaware corporation,on behalf of said corporation. ("L‘---c--- Notary Public for the State of J'L (./A/0ts Ru5401c4.. Print Name My Commission Expires: •"OFFICIAL SEAL" AARON F.RUSWICK Notary Public,State of Illinois My Commission Expires 03/03/14 [Signatures and Acknowledgements Continue on Following Page.] 11 p 71;c5.......�Sb.1°11 CITY OF : OWN t" 2s, „, to :LL i Jo , S PHE -. i ONCARLOS, Mayor Oa it.Q, ......°...Q'_� STATE OF TEXAS 1,,hzvoloo o..—' COUNTY OF HAICKIS § The foregoing instrument was acknowledged before me this I' day of 4 , 2013,by Stephen H. Doncarlos, Mayor of the City of Baytown, a municipal corporation loca d in Harris and Chambers Counties,Texas, on behalf of said munici 1 corporation. CHRISTINE SANDLIN Notary Public, State of Texas My Commission Expires Notary Public for the State of T xas ;';� �`1;'' November 08, 2014 ►ST/nIE (CAA/0t41\1 Print Name My Commission Expires: II-vg -aoiy R:\Karen\Files\Contracts\National Tube PILOT\PILOT Agreement.doc DGM 307623.4/5045.020 12 EXHIBIT A THE PROPERTY Reserve "A" of BAY TEN BUSINESS PARK, an addition in Chambers County, Texas, according to the map or plat thereof recorded in /under Clerk's File No. (2013) 83256 of the Map/Plat Records of Chambers County, Texas, being the same property described below. A METES & BOUNDS description of a certain 24.26 acre tract of land situated in the R.A. West Survey, Abstract No. 314 in Chambers County, Texas, being out of a called 210.72 acre tract of land conveyed to Grand Parkway /Kilgore Parkway LP by Special Warranty Deed recorded in Volume (08) 1074, Page 223 of the Chambers County Official Public Records of Real Property; said 24.26 acre tract being more particularly described as follows with all bearings being based on the Texas Coordinate System, South Central Zone, NAD 83; COMMENCING at a found 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") in the east right -of -way line of Grand Parkway (right of way width varies) in a curve to the left, being common with the northwest corner of a called 254.14 acre tract of land conveyed to Grand Parkway/Kilgore Parkway LP described in Special Warranty Deed recorded in Volume (08) 1067, Page 264 of the Chambers County Official Public Records of Real Property, said iron rod being common with the southwest corner of said called 210.72 acre tract, from said iron rod a found 1 1/2 -inch iron pipe bears North 87 °27' 18" East, 1667.18 feet; THENCE, in a northerly direction along the east right -of -way line of said Grand Parkway and along the arc of said curve to the left having a radius of 3064.79 feet, a central angle of 02° 18'00 ", an are length of 123.03 feet, and a long chord bearing North 24 °03'25" East, 123.02 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") for the POINT OF BEGINNING of herein described tract; THENCE, continuing along the east right -of -way of said Grand Parkway and the arc of said curve to the left having a radius of 3064.79 feet, a central angle of 109643 ", an arc length of 567.64 feet, and a long chord bearing North 17 9607" East, 566.83 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") for corner; THENCE, North 66 °46'55" East, 860.05 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") in the west line of proposed Upland Way (80 -feet wide right of way); THENCE, along the southerly right of way line of proposed Upland Way, the following four (4) courses and distances: South 23° 13'05" East, 10.39 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") at the beginning of a curve to the left; 2. Along the arc of said curve to the left having a radius of 127.00 feet, a central angle of 90 °00'00 ", an arc length of 199.49 feet, and a long chord bearing South 68° 13'05" East, 179.61 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying) for corner; 13 3. North 66 °46'55" East, 401.64 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") at the beginning of a curve to the left; 4. Along the arc of said curve to the left having a radius of 340.00 feet, a central angle of 08 °48'37 ", an arc length of 52.28 feet, and a long chord bearing North 62 °22'37" East, 52.23 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") for corner; THENCE, South 25 °4448" East, 604.60 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") for corner in the north line of a Drainage Easement for Highway Purposes recorded in Volume (04) 719, Page 120 of the Chambers County Official Public Records of Real Property; THENCE, South 66 °46'55" West, along the north line of said Drainage Easement for Highway Purposes, 1020.56 feet to a set 3/4 -inch iron rod (with cap stamped "Cotton Surveying ") for corner; THENCE, South 87 °27'18" West, continuing along said Drainage Easement for Highway Purposes, being parallel to and 110.00 feet north of the north line of the aforementioned called 254.14 acre tract, 873.66 feet to the POINT OF BEGINNING, CONTAINING 24.26 acres of land in Chambers County, Texas, as shown on Drawing No. 7846 in the office of Cotton Surveying Company in Houston, Texas. 14