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Ordinance No. 11,962ORDINANCE NO. 11,962 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AND DIRECTING THE MAYOR TO EXECUTE AND THE CITY CLERK TO ATTEST TO AN INDUSTRIAL DISTRICT AGREEMENT WITH LS ENERGY FABRICATION, LLC, AND LS ENERGY PROPERTIES, LLC; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes and directs the Mayor and City Clerk of the City of Baytown to execute and attest to an Industrial District Agreement with LS Energy Fabrication, LLC, and LS Energy Properties, LLC. A copy of said Industrial District Agreement is attached hereto, marked Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ, and PASSED by the affirmative vote the City Council of the City of Baytown, this the 14th day of June, 2012. Mayor ATT APPROVED AS TO FORM: / et6NACIO RAMIREZ, SR., City ttorney \ \Cobfs0l \legal\ Karen\ Files \City Council \Ordlnances\2012Vune 14\SEnergy1DA0rdinancc.doc .I EXHIBIT "A" Industrial District Agreement This Industrial District 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 LS Energy Fabrication, LLC, a domestic limited liability company, and LS Energy Properties, LLC, a domestic limited liability company, hereinafter referred to as "Property Owners." In consideration of the promises and of the mutual covenants and agreements herein contained, it is agreed by and between the City and Property Owners as follows: I. Parties This Agreement is made under the authority of Texas Local Government Code Annotated §42.044 (Vernon 1993), article XI, §5 of the Texas Constitution and other applicable law. The parties to the Agreement and their addresses are: 1. The "City" City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Copy to: City of Baytown Attn: City Attorney P.O. Box 424 Baytown, TX 77522 2. The "Property Owners" Tax Statement Address: LS Energy Fabrication, LLC LS Energy Fabrication, LLC 8120 McHard Road 8120 McHard Road Houston, TX 77053 Houston, TX 77053 LS Energy Properties, LLC LS Energy Properties, LLC 8120 McHard Road 8120 McHard Road Houston, TX 77053 Houston, TX 77053 II. Identification of Property and Industrial District This Agreement includes provisions concerning certain real estate and tangible personal property owned or leased by the Property Owners. Real estate located outside the corporate limits of the City is sometimes referred to herein as the "affected area," and it is described in Exhibit A, which is attached to this Agreement and made a part hereof. Acting pursuant to the above mentioned authority, the City Council of the City has by ordinance, designated the affected area as an industrial district, the same to be known as Baytown Industrial District No. 3 (the "Industrial District "). III. Term The term of this Agreement is seven tax years, from 2011 through 2017, 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 years. This Agreement supersedes any prior existing agreements between the Property Owners and the City relating to the subject matter hereof and governing the affected area; to the extent any such prior existing agreement required payment on or after January 1, 2011, such payment obligations are hereby canceled and are superseded by the provisions contained herein. IV. Limited Immunity from Annexation by he City In consideration of the obligations of the Property Owners herein set forth, the City hereby guarantees for the term of this Agreement the immunity of the affected area from annexation of any type by the City except for such parts of the affected property as may be necessary to annex property owned by third parties within the Industrial District that the City may decide to annex. Additionally, this Agreement shall not affect the continuation of any limited purpose annexation status to which the affected area is now subject. V. Industrial District Payment As part of the consideration for the City's undertakings as set forth above, the Property Owners agree to pay and be jointly and severally liable for payment to the City on or before December 31" of each year during the term hereof a sum of money equal to: the Base Value Industrial District Payment plus the Added Value Industrial District Payment. The sum of the Base Value Industrial District Payment plus the Added Value Industrial District Payment shall be referred to as the Industrial District Payment. A. Base Value Industrial District Payment The Base Value Industrial District Payment shall be calculated as follows: (1) the fair market value as determined by the City, of all of the Property Owners' land and all other tangible property, real, personal or mixed, within the affected area ➢ on January 1, 2002, ➢ on January 1, 2009, or ➢ as most recently certified by the chief appraiser of the appraisal district and/or approved by the Industrial Appraisal Review Board established and appointed by the City Council, as of the date of this Agreement, 2 whichever is greater hereinafter referred to as the "Base Year." Such fair market value for the Base Year is agreed to and stipulated by the parties to be FOUR MILLION TWO HUNDRED NINETEEN THOUSAND AND N0 1100 DOLLARS ($4,219,000.00), less the fair market value in the Base Year as determined by the City of that portion of the Property Owners' property, real, personal or mixed, which was located within the industrial district on the effective date of this agreement and subsequently annexed by the City, the difference of which is 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 the applicable Yearly Payment Rate as detailed below. The applicable Yearly Payment Rate is the sum of the Industrial District Payment Rate plus the Public Community Improvement Rate and shall be determined using the following chart: =� ti �: INDUSTRIAL CQ TAX Y. E DISTRICT.: ,Y _YEARLY" PAS . PAYMENT RATE IlVIPROVEMENT YtATE: RATE:. 2011 .61 .01 .62 2012 .62 .01 .63 2013 .62 .01 .63 2014 .63 .01 .64 2015 .63 .01 .64 2016 .63 .01 .64 2017 .64 .01 .65 B. Added Value Industrial District Payment The Added Value Industrial District Payment shall be calculated as follows: (1) the fair market value as determined by the City, of all of the Property Owners' land and all other tangible property, real, personal or mixed, within the affected area on January 1 of each year in which an Industrial District Payment is due hereunder minus the Base Year Value, 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 the applicable total added value industrial district payment rate detailed below. The applicable Total Added Value Industrial District Payment Rate shall be determined using the following chart: 3 s s, ((a L'r• + fig, ;iv,, ��' .. WE • ' ',� , �i �•j.��'..i•�s• �• D VL`?►L` i.�f� 41 µi�' t , TOTALAD ^' �s 'U►T ' i eft :��• i l',�i, h:�,.,. ,...r :•r -�j,j� jl \jJ.V { ` �•�TC •y i ��i; � z' � • ' ih •. � ; Y•._.�I�i �;r�ta'�y s av OL vEr� • t r .+ �•� .tr tt�DITRiCT �'AY11�II;)T� + '' a +�✓ +�� •PAY'iVIENT ::T';E RATE r : RATE. . . 2011 0 .O1 .01 2012 0 .01 .01 2013 0 .01 .01 2014 0 .01 .01 2015 .21 .01 .22 2016 .42 .01 .43 2017 .64 .01 .65 If the formula used in calculating the Added Value Industrial District Payment produces a negative number, then the Added Value Industrial District Payment shall be $0.00. VI. Valuations For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owners 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 Owners' 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. 4 A. Valuation of Property Inside the Corporate Limits but Subsequently Disannexed Land, improvements and tangible property, real or mixed, of the Property Owners, which are disannexed from the corporate limits of the City during the term of this Agreement, shall become part of the affected area immediately upon disannexation. The value for such land, improvements and tangible property, real or mixed, shall be based upon the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District or its legal successor (or through administrative or judicial appeal of the Chambers County Appraisal District's determination) and shall be added to the Base Year Value specified in Article V for purposes of payment hereunder on January 1 of the year the same is disannexed. B. Valuation of Property Outside the Comorate 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 are 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 Owners' 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 Owners' payment in the manner described above, the City may choose to use the appraised value for each year in which an Industrial District Payment is due hereunder, 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 Effect Determination of the Base Year Value and the Added Value in the above - stated manner outside the corporate limits shall be made by the City and approved by the Industrial Appraisal Review Board. Such final fair market value as approved by the Industrial Appraisal Review Board shall be final and binding unless either party within thirty (30) days after receipt of the Board's determination 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 Industrial District Appraisal Board 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. 5 D. Statements The City shall mail one statement to the Property Owners 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 "Tax Statement Address" noted in 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. The City shall have a lien upon the Property Owners' land within the affected area upon any delinquency in the Industrial District Payment. E. Valuation Contests If any differences concerning the appraised values shall not have been finally determined by the due date of the Property Owners' payment hereunder and the Property Owners desire to pursue any additional available remedies, the Property Owners 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 Owners 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 Owners; 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 Owners' 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 Owners 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 the Industrial District, and that development within the District may have an impact on the drainage of surrounding areas. To this end, the Property Owners 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 adjacent to the Industrial District shall also be applicable to the affected area. The Property Owners agree 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 Owners' 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 Owners shall undertake to ensure that its facilities and 6 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', but there shall be no obligation to obtain any permits of any kind from the City in connection with the construction, operation or maintenance of improvements and facilities in the affected area not located within the corporate limits of the City. Nonetheless, for construction which commences after the execution of this Agreement, the Property Owners agree 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 Owners recognize that activities in the City's industrial districts 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 Owners also recognize that the City may have an interest in activities in the City's industrial districts 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 Owners' premises and the same right to examine the Property Owners' books and records to determine the value of the Property Owners' properties as are provided in the Texas Property Tax Code as amended. IX. Public Community Improvement The Property Owners 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 Owners' 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 Owners will pay to the City based solely upon the Public Community Improvement Rate established in Article V 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 Owners shall not submit a request for reimbursement which 7 exceeds the amount the Property Owners have paid to the City based solely upon the Public Community Improvement Rate established in Article V hereof. If the Property Owners fail to receive the City Manager's approval of a Public Community Improvement Project prior to the expiration of an Agreement year, the Property Owners 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 A. Default by Property Owners In the event of default by the Property Owners 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 Owners 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 Owners are in default according to the terms and conditions of Section VII hereof, the City shall notify the Property Owners 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 Owners' 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. B. Default by City In the event of default by the City, the Property Owners may, if such default is not fully corrected within 60 days from giving written notice of such default to the City, terminate this Agreement. Upon such termination, the Property Owners and the City shall be relieved of all further obligations hereunder, but the Property Owners shall not be relieved of the obligation to pay any amounts that accrued prior to such termination. In the event of termination, the City shall have the right to repeal the ordinance designating the affected area as an industrial district. Provided, however, if the termination occurs as a result of the City's exercising its option to terminate (as provided in the first sentence of this Section X), the City shall not have the right to annex the affected area into the general corporate limits of the City so as to subject the affected area to ad valorem taxes for any part of the period covered by the Property Owners' last payment hereunder. 8 XI. Notice Any notice to the Property Owners 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 Owners or the City at the appropriate respective addresses set forth on the cover page of 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 Owners 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 Owners shall not be obligated by virtue of this Agreement, or the establishment of the industrial district covering the affected area not within the corporate limits of the City, to make any payments to the City in the nature of a tax or assessment based upon the value of the Property Owners' property in the affected area during the term of this Agreement other than the payments specified herein. Specifically, the Property Owners shall not be liable for any City taxes within the affected area, including, without limitation, City ad valorem taxes on taxable property within the affected area. XII1. Reimbursement for Services If the Property Owners request and receive mutual aid firefighting assistance and is a member of Channel Industries Mutual Aid organization ( "CIMA ") or similar organization, the Property Owners shall reimburse the City for costs incurred by the City in providing fire protection services to the Property Owners 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 Owners request and receive mutual aid firefighting assistance and is not a member of CIMA or a similar organization, then the Property Owners shall be required to reimburse the City for costs actually expended by the City in providing any firefighting assistance to the Property Owners, 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 an Industrial District Payment, the Property Owners 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 Owners to the City. The Property Owners agree 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 Owners and the City only. If the Property Owners convey all or any part of the property then covered hereby, the Property Owners 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 Year Value plus the Added Value shall be apportioned between the Property Owners and the grantee based upon the property conveyed, only if the grantee thereof enters into an Industrial District 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. Authori The Property Owners covenant 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 10 aw removes or materially diminishes the obligation of the Property Owners 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 any other obligation hereunder to exercise any right or remedy occurring as a result of any future default or failure of performance. Ambi ug ities 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. Headings 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. X,II. 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. 11 IN WITNESS WHEREOF, this Agreement is executed in multiple counterparts on behalf of the Property Owners this (5 day of htky , 2012, and on behalf of the City this day of , 2012. LS ENERGY FABRICATION, LLC Printed Name ATTEST: 'tz""An.-A e retary LS ENERGY PROPERTIES, LLC ATTEST: (jr92� Secretary ATTEST: LETICIA BRYSCH, City Clerk 12 02,0 Title CITY OF BAYTOWN STEPHEN H. DONCARLOS, Mayor • d I. APPROVED AS TO FORM: IGNACIO RAMIREZ, SR., City Attorney LOUISE RICHMAN, Finance Director R:VeanenoWy Docu=rtts%CcutractsVDA%S Energy Fabdcatian & LS Energy Frapcttles IDA 2012.dcc 13 Tract EXHIBIT A Property FIELD NOTES FOR 8.190 ACRES 2011 8r, VOL PG 66623 OR 1273 68 Being a tract of land containing 8.190 acres located in the WM. D. Smith Survey, Abstract Number 23, Chambers County, Texas; Said 8.190 acre tract being a portion of a call 870.338 acre tract of land recorded in the name of Cedar Crossing, L.P. in Volume 456, Page 155 ur the Chambers County Deed Records (C.C.D.R.); Said 8.190 acre tract being more particularly described by metes and bounds as follows: (bearings are based on the Texas State Plane Coordinate System, South Central Zone, NAD 83) COMMENCING at a 5/8 -inch iron rod found at the northeast corner of a call 11,568 acre tract recorded in the name of NSN Properties, LLC in Volume 12, Page 515, C.C.D,R.; Thane, through and across said 870.338 acre tract, North 3 agrees 13 minutes 58 seconds Last, a dis(wtceof 531.69 feet to a 518 -inch iron ran iNT Of IIECINNINC of the herein described tract, from which a 1/2 -inch iron Wound at northermnost re- entrant comer in the westerly line of said 870.338 acre) t b s North 43 degrees 15 minutes 52 seconds West, a distance of 1,029.81 feet; Thence, through and across said 870.338 atreKr of db o lowing six (6) courses: 1. North 00 degrees 20 minutes 18 , conds La ; , a distance of455.54 feet to a Railroad Spike found; 2. South 89 degrees 51 min Q54sc ds East, a dista nce of 511.86 feet to a 518 -inch iron rod set; 3. South 00 degrees 00 minds West, a distwico of 921.63 feet to a 5/8-inch iron rod set; 4. North 90 degrees 00 minutes 00 seconds West, a distance of 360.10 feet to a 5/8 -inch iron rod set; 5. North 00 degrees 16 minutes 55 seconds East, a distance of 432.81 feel to a 518 -inch iron rod set; 6. North 77 degrees 34 minutes 05 seconds West, a distance of 160.25 feet to the POINT OF BEGINNING and containing 9.273 acres of land SAVE AND EXCEPT the following 1.082 acre tract; 23560294 Cxhibit A - Page I 66,2011 sr, 628 OR 12773 69 SAVE AND EXCEPT 1.082 ACRES Being a tract of land containing 1,082 acres located in the WM. D. Smith Survey, Abstract Number 23, Chambers County, Texas, Said 1.082 acre tract being n portion of a call 870.338 acre tract of land recorded in the name of Coder Crossing, L.P. in volume 456, page 155 of the Chambers County Deed Records (C.C.D.R.); Said 1.082 acre tract being more panicularly described by metes and bounds us follows: (bearings are based on the Texas State Plane Coordinate System, South Central Zone, NAD 83) COMMENCING at a 5/8 -inch iron rod found ut the northeast comer of a call 11.568 acre tract recorded in the name ol'NSN Properties, LLC in Volume 892, Page 515, C.C.D.R.; Thence, through and across said 870.338 acre tract, North 35 degrees 13 minutes 58 seconds East, a distance of 531,69 feet to a 518 -inch iron rod act; Thencc, through and across said 870.338 acre tract, North 52 degrees 46 minutes 57 seconds East, a distance of 178.84 feet to a 5!8 -inch iron rod with ca stamped "BURY" found at the POINT OF BEGINNING of the herein described tract; Thence, through and across said 870.338 acre,ruct the four (4) courses: 1. Nonh 21 degrees 34 minutes 22 seconds E tstance o 1.13 feet to a 518 -inch iron rod with cap stamped "SIIRVCON" feu 2. North 89 degrees 58 minutes 57 seconds L- distance of 300.06 to a 518 -inch iron rod with cap stamped "SURVCON" ic. kN 3. 225.70 feet along the arc of a cu to the ri - , said curve having a radius of 254.30 feet, a central angle of 50 degrees m ends, and a chord which bears South 16 degrees 26 minutes 34 se s Yest once of 218.36 feet to a 518 -inch iron rod with cap stamped "SURVCO found; 4. Nonh 63 degrees 27 mime - nds \Vest, a distance of 299.66 feet to the POINT OF BEGINNING and containing 1.032 acres of land. THIS DESCRIPTION WAS PREPARED IN CONNECTION WITH A LAND TITLE SURVEY FILED UNDER GBI PARTNERS' 306 NUMBER 102401. GBI Partners, L.P. Plm: 713.995.1306 June 13, 2011 2359029.'2 Exhibit A - Page 2 Tract 11: FIELD NOTES FOR 4.810 ACRES 2011 8Y. VOL PG 66623 Ort 1273 70 Being a tract of land containing 4.810 acres located in the WM. D. Smith Survey, Abstract Number 23, Chambers County, Texas; Said 4,810 acre Iract being a portion of a call 870.338 acre tract of land recorded in the name of Cedar Crossing, L.P. in Volume 456, Page 155 of the Chambers County Decd Records (C.C.D.R.); Said 4.810 acre tract being more particularly described by metes and bounds as follows (bearings are based on the Texas State Plane Coordinate System, South Central Zone, NAD 83): CO1VMiENCING ate 5/8 -inch iron rod found at the northeast comer of a call 11.568 acre tract recorded in the name of NSN Properties, LLC in Volume 892, Page 515, C.C.D.R.; Thence, through and across snid 870.338 acre tract, North UU degrees 35 minutes 51 seconds East, a distance of 946.01 feet to a 518 -inch iron rod set at t e POI NT OF BEGINNING of the herein described tract, from which a 112 -inch iron rod founik, the northernmost re- entrant comer in the westerly line of said 870.338 acre tract a 59 degrees 46 minutes 31 seconds West, a distance of 473.26 feet; AMML 1W Thence, through and across said 870.338 6acrot ith the edge of a concrete driv e (lie following twelve (12) courses: I. 54.86 feel along the arc of a cury said curve having a radius of 35.00 feel, a central angle of 89 degrees 47 m nds and a chord which bears North 44 degrees 57 minutes 55 seco�soe of 49.41 feet to a 5/8 -inch iron rod set; 2. North 00 degrees 03 min Mrs 56 secrnds West, a distance of 587.12 feet to a 5/8 -inch iron rod set; 3. 103.50 foot along the are of a curve to the right, said curve having a radius of 65.00 feel, a central angle of 91 degrees 13 minutes 53 seconds and a chord which bears North 45 degrees 33 minutes 00 seconds Last, a distance of 92.91 feet to a 5/8 -inch iron rod set, 4. South 88 degrees 50 minutes 03 seconds East, a distance of 177.13 feet to a 5/8 -inch iron rod set; 5. 96.57 feet along the urc of a curve to the right, said curve having a radius of 65.00 feet central angle of 85 degrees 07 minutes 40 seconds, and a chord which boars South 46 degrees 16 minutes 13 seconds East, u distance of 57.93 feet to a 5/8 -inch iron rod set; 23580290 Exhibit A - Page 3 2011 8K VOL PG 66623 OR 1273 71 G. South 03 degrees 42 minutes 23 seconds East, a distance or 59.10 fact to a 5/8 -inch iron rod set; 7. South 00 degrees 09 minutes 43 seconds East, a distance of 132.71 feet to a 5/8 -inch iron rod set; 8. South 00 dc6m;es 19 minutes 08 seconds West, a distance of 92.51 feel to a 518-inch iron rod set; 9. South 00 degrees 15 minutes 57 seconds West, a distance or 129.91 feet to a 5/8 -inch iron rod set; 10. South 00 degrees 27 minutes 44 seconds East, a distance of 143.63 reel to a 518 -inch iron rod set; 11. 102.75 feet along the arc of a curve to the right, said Oirve having a radius of 65.00 feet, a central angle of 90 degrees 35 minutes 50 seconds a chord which hears South 44 degrees 50 minutes I I seconds West, a distance to a 5/8 -inch iron rod set; 12. North 89 degrees 51 minutes 54 seconds 1V i, :41stInnce'0001210.45 feet to the POINT OF BEGINNING and containing 4.810 es oj' nd. THIS DESCRIPTION WAS PREPA FX SURVEY FILED UNDER GB1 PARTN GBI Partners, L.P. Phn:713.995.1306 Junel3,2011 2039029v1. Exhillh A - Page 4 )N WITH A LAND TITLE 102401. 2010 BY VOL PG 51728 OR 1171 400 EXHIBIT "A" Legal Description METES AND BOUNDS DESCRIPTION 11.00 ACRES CHAMBERS COUNTY, TEXAS BEING A 11,00 ACRE TRACT OF LAND LYING IN THE W.D. SMITH SURVEY, ABSTRACT 23 CHAMBERS COUNTY, TEXAS, BEING OUT OF AN 870.338 ACRE (CALLED) TRACT AS DESCRIBED IN DOCUMENT RECORDED IN VOLUME 00.456, PAGE 155 OF THE CHAMBERS COUNTY DEED RECORDS, CHAMBERS COUNTY, TEXAS AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS (ALL BEARINGS BASED ON THE TEXAS STATE COORDINATE SYSTEM, SOUTH CENTRAL ZONE): BEGINNING AT AN'X' CUT IN CONCRETE (FOUND) FOR THE MOST NORTHERLY NORTHEAST CORNER OF A 11,568 ACRE (CALLED) TRACT AS DESCRIBED IN SPECIAL WARRANTY DEED RECORDED IN VOLUME 00.892, PAGE 515 OF THE CHAMBERS COUNTY DEED RECORDS AND BEING AN INTERIOR CORNER OF THE HEREIN DESCRIBED TRACT; THENCE N 89.51'64' W. ALONG THE NORTH OST PROPERTY LINE OF SAID 11.568 ACRE TRACT, 204.42 FEET TO THE P INT OF CURVATURE OF A NOW TANGENT CURVE TO THE RIGHT HAVING A DIUS OF 1,304.03 FEET, A CENTRAL ANGLE OF 02'08'00' A CHORD BE ING AND DISTANCE OF N 08'24'66' W - 52.31 FEET; THENCE DEPARTING SAID NORTH PERTY E, OVER AND ACROSS SAID 870.338 ACRE TRACT THE FOLLO ELVE C URSES: THENCE ALONG THE ARC OF C . E. 52.31 FEET TO A POINT; THENCE N 00'19'00' W, 68.1 E ANGLE POINT; THENCE N 00'15'18' W, .20 FE TO POINT FOR THE NORTHWEST CORNER OF THE HERE DESCRIBE TRACT; THENCE S 89.51'54' E 7 5 FE O THE POINT OF CURVATURE OF A TANGENT CU 'V HE - VING A RADIUS OF 50.00 FEET, A CENTRAL ANGLE OF 89'4 ACM RD BEARING AND DISTANCE OF 5 44.58'57" E - 70.57 FEET; THENCE ALONG %E ARC • SAID CURVE 78.33 FEET TO THE POINT OF THENCE S 00.06'01' E, 314.20 FEET TO THE POINT OF CURVATURE OF A TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 50.00 FEET, A CENTRAL ANGLE OF 90.43'45, A CHORD BEARING AND DISTANCE OF 5 45.15'52' W- 71.10 FEET: THENCE ALONG THE ARC OF SAID CURVE 79.16 FEET TO THE POINT OF TANGENCY; THENCE N 80.2216' W, 163.02 FEET TO THE POINT OF CURVATURE OF A TANGENT CURVE TO THE LEFT HAVING A RADIUS OF 100.00 FEET, A CENTRAL ANGLE OF 60.25'26', A CHORD BEARING AND DISTANCE OF S 45'25.02' W- 141.94 FEET; THENCEALONG THE ARC OF SAID CURVE 157.82 FEET TO THE POINT OF TANGENCY: Exhibit "X'— Page I 2010 BY VOL PG 51728 OR 1171 401 THENCE S 00 °12'19" W, 284.95 FEET TO THE POINT OF CURVATURE OF A TANGENT CURVE TO THE RIGHT HAVING A RADIUS OF 60.00 FEET, A CENTRAL ANGLE OF 87 °52'40', A CHORD BEARING AND DISTANCE OF S 44 °08'39' W — 83.27 FEET; THENCE ALONG THE ARC OF SAID CURVE 92.03 FEET TO THE POINT OF TANGENCY; THENCE S 88 °04'58' W, 199.01 FEET TO A POINT LYING IN AN EAST LINE OF SAID 11.568 ACRE TRACT FOR THE MOST SOUTHERLY SOUTHWEST CORNER OF THE HEREIN DESCRIBED TRACT; THENCE N 00 °48'54' W, ALONG SAID EAST LINE, 280.70 FEET TO THE POINT OF BEGINNING AND CONTAINING 11.00 ACRES OF LAND MORE OR LESS, REGISTERED PROFESSIONAL LAND SURVEYOa NO. 5453 BURY +PARTNERS = HOUSTON, INC. 13100 NORTHWEST FREEWAY, SUITE No HOUSTON, TEXAS 77040 Exhibit "A" — Page 2