Ordinance No. 14,781 ORDINANCE NO. 14,781
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 FROMUS 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 Fromus 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 of the City Council of the
City of Baytown, this the 22nd day of July, 2021.
BRANDON CAPETILL , MAYOR
ATTEST: -o�r,
O[ ��..•.noaa if
G n y
ANGELA J KSON, Interin itt••}°,e�CleCO
o
n a
APPROVED AS TO FORM: OF
KAREN L. ORNER, City Attorney
RAKaren Homer\Documents\Files\City CouncillOrdinances1202lUuly 22\lDAwithFromusLLC.docx
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 Fromus LLC, a Florida limited liability
company hereinafter referred to as "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:
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 Owner" Tax Statement Address:
Fromus LLC Fromus LLC
Attn: Managing Member Attn: Tax Department
6101 E. Grand Parkway 6101 E. Grand Parkway
Baytown,TX 77523 Baytown,TX 77523
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 Owner. 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-
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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 2021 through 2027, 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 Owner and the City relating to the subject matter specific to
the term hereof.
IV.
Limited Immunity from Annexation by the City
In consideration of the obligations of the Property Owner 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 Pam
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 Sc 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 agreed to and stipulated by the parties to be as follows
for each year indicated:
2021 $8,517,300
2022 $8,517,300
2023 $8,517,300
2024 $8,517,300
2
7$8,5
2025002026002 22700
hereinafter referred to as the "Base 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:
YEARLY
TAX YEAR PAYMENT
RATE
2021 .66
2022 .66
2023 .66
2024 .66
2025 .66
2026 .66
2027 .66
plus
(3) the value of the situs inventory, which is the personal property and inventory
stored or held on or within the affected property which is not owned by the
Property Owner, as assessed each year by the Chambers County Appraisal
District, multiplied by
(4) the property tax rate per $100.00 of assessed valuation adopted by the City
Council for the City, multiplied by 0.50, and multiplied by the applicable Yearly
Payment Rate as detailed helow:
YEARLY
'FAX YEAR PAYMENT
RATE
2021 .66
2022 .66
2023 .66
2024 .66
2025 .66
2026 .66
2027 .66
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On or before February 1,' of' each contract year during the term of' this Agreement, the
Property Owner shall file separate written information reports with the City's Director of Finance
stating the name and address of each person to whom the Property Owner leased or otherwise
provided storage space on
(1) January I" of the current contract year and
(2) September I s'ol'the preceding year.
Additionally, if'the Property Owner on or before July 1 s' of each year certifies under oath that the
Prope-i-ty Owner has required the owner of the situs property to make the payment to the City for
that portion of the Base Value industrial District Payment calculated pursuant to subsections (3)
and (4) this Subsection A. the City shall invoice such owner for that amount. However. nothing
herein shall be construed so as to relieve the Property Owner from making the full Industrial
District Payment oil or before December 31 ti' of each year should the owner of the situs property
fail to timely pay that portion ol'the Base Value Industrial District Payment calculated pursuant to
subsections(3) and (4) this Subsection A.
B.
Added Value Industrial District Payi-unit
The Added Value Industrial District Pavment 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 l 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
COuneil for the City for each year of the terns of this Agreement, multiplied by the
applicable Added Value Industrial District Payment Rate detailed below.
The applicable Added Value Industrial District Payment Rate shall be determined using
the following chart:
ADDED VALUE
TAX YEAR INDUSTRIAL
DISTRICT PAYMENT
RATE
2021 .00
2022 .00
2023 .25
?024 .35
4
ADDED VALUE
TAX YEAR INDUSTRIAL
DISTRICT PAYMENT
RATE
2025 .45
2026 .55
2027 .66
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 and Collections
A.
Generally
The parties hereto recognize that said Chambers County Appraisal District is not
required to appraise for the City 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. For the purpose of providing a procedure for determining
and collecting the amounts payable by the Properly 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:
I. 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; and
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.
The parties agree that the fair market value of the Property Owner's land,
improvements, and tangible property subject to Subsections B and C of this section shall be
determined in accordance with the market value computation contemplated in the Texas
Property Tax Code for the purpose of calculating the Property Owner's payment under this
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Agreement on properties annexed or disannexed subsequent to the commencement of this
Agreement. The City may choose to use the appraised value 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 an
independent appraiser of the City's selection at the City's expense. The determination of fair
market values by the City shall be final and binding unless the Property Owner within thirty
(30) days after receipt of the City's determination petitions for a Declaratory Judgment to the
Civil District Court of Harris County, Texas, as provided for by Section Xlll hereof.
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.
B.
Adjustment of Base Value for Property Inside the Corporate Limits but Subsequently
Disannexed
Land, improvements and tangible property, real or mixed, of the Property Owner, which
is 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
disannexed land, improvements and tangible property, real or mixed shall be determined as
described in Subsection A of this Section based upon the year in which the property is
disannexed and shall be added to the Base Value specified in Article V each year after the
disannexation for purposes of payment hereunder.
C.
Adjustment of Base Value for Property Outside the Corporate Limits but Subsequently Annexed
Land, improvements and tangible property, real or mixed, of the Property Owner, which
is annexed into the corporate limits of the City during the term of this Agreement, shall be
removed from the affected area the year after the annexation. The value for such annexed
land, improvements and tangible property, real or mixed shall be determined as described in
Subsection A of this Section based upon the year in which the property is annexed and shall be
subtracted from the Base Value specified in Article V each year after the annexation for
purposes of payment hereunder.
D.
Statements
The City shall mail one statement to the Property Owner on or about December I 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
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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 Owner's 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 Owner's payment hereunder and the Property
Owner is pursuing through a declaratory judgment action as specified in Subsection A, the
Property Owner shall, without prejudice to such action, 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 the rate specified in Section 2251.025 of the
Texas Government Code 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 the Industrial District,
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 adjacent to the Industrial District 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"), 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, 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.
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The City and the Property Owner 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 Owner 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 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.
Default
A.
Default by Property Owner
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 anything 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.
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B.
Default by City
In the event of default by the City, the Property Owner 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, both the Property Owner and the City shall be relieved of
all further obligations hereunder, but the Property Owner 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 IX), 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 Owner's last payment
hereunder.
X.
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 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 Owner or the City,as the case may be.
XI.
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, 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 Owner's property in the affected area
during the term of this Agreement other than the payments specified herein. Specifically, the
Property Owner 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.
XI1.
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
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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.
XIII.
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 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.
XIV.
Assijznment
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 Year Value plus the Added Value shall be apportioned between the
Property Owner 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.
XV.
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.
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XVI.
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.
XVII.
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 XVII 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.
XVIII.
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.
XIX.
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.
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XX.
Ambieuities
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.
XXI.
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.
XXI1.
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.
XXIII.
Agreement Read
The patties acknowledge that they have read, understand and intend to be bound by the
terns and conditions of this Agreement.
IN WITNESS WHEREOF, this Agreement is executed in multiple counterparts on behalf
of the Property Owner this .25 'day of June, 2021, and on behalf of the City this _ day
Of July, 2021.
FROMUS LLC
By. ` -
Gediminas Garmus
Printed Name
Managing Member
Title
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT CIVIL CODE 111189
A notary public or other officer completing this certificate verifies only the identity of the individual
who signed the document to which this ceilifkale is atuuched,and not the truthfulness,accuracy,or
validity of that document.
State of California )
County of Los Angeles
On alS Oo2 before Inc, Notary
Public,personally appeared 4e imi4aJ �✓muJ,who proved to me on the basis ofsatisfactoly
evidence to be the personfy)whose nan iqj is/ayd subscribed to the within instrument and acknowledged to me
that he/s#/tl�dy executed the same in Ws./he thui'r authorized capacity([4,and that by hig,/he/tl}el'r signatureW
on the instrument the personal,or the entity upon behalf of which the persondacted,executed the instrument.
I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph
is true and correct.
K.CAAA
Notary`os Angeles County WITNESS my hand and official seal.
Commission#2212527
My Comm.Expires Sep 2.2021
Signature
Signature of Notary Public
Place Notary Seal Above
STATE OF §
COUNTY OF §
Before me, ,the undersigned notary public,
on this day personally appeared ,the
of FROMUS LLC,the owner of the affected property, known to me to be the person whose
name is subscribed to the foregoing instrument and acknowledged to me that he executed the
same for the purposes, in the capacity, and for the consideration therein expressed.
SUBSCRIBED AND SWORN before me this day of 12021.
Notary Public in and for the State of
CITY OF BAYTOWN
BRANDON CAPETILLO, Mayor
ATTEST:
ANGELA JACKSON, Interim City Clerk
APPROVED AS TO FORM:
KAREN L. HORNER, City Attorney
VICTOR BROWNLEES, Finance Director
RAKaren Horner\Documents\F'iles\Contracts%lndustrial District AgreementsWromus LLOFromus LLC IDA.doc
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CHICAGO TITLE INSURANCE COMPANY Commitment No.:4300112104722A
SCHEDULE A
(continued)
4. Legal description of land:
Being 17.428 acres(759,175 square foot)tract of land situated in the John Steele Survey,Abstract 227,
Chambers County,Texas, being that same 17.428 acre(by deed)tract deeded to Fromus, LLC, as
recorded under Clerk's File No. 2019-144724 of the Official Public Records of Chambers County,Texas,
said 17.428 acreact of d being more particularly described by metes and bounds as follows:
COMMENCING at a 5/8-inch capped iron rod found in the north right-of-way line of the Grand Parkway
(State Highway 99)(a public right-of-way of varying width)as described in the Donation Deed to State of
Texas as recorded in Volume 650, Page 348,of the Official Records of Chambers County,Texas, at the
southerly cutback corner in the east right-of-way line of Farm to Market Road 1405(a public right-of-way
of varying width)as described in the Deed to State of Texas as recorded in Volume 351, Page 200,of the
Deed Records of Chambers County,Texas,said rod marking the southerly southwest corner of said 1607
acre Tract 4,deeded to TGS Cedar Port Partners, L.P.,as recorded Volume 1535, Page 85, of the
Official Public Records of Chambers County,Texas;said rod having a grid coordinate value of N=
13,834,815.590,and E=3,264,558.289;THENCE, North 85 degrees 31 minutes 41 seconds East,with
said north right-of-way line of the Grand Parkway,for a distance of 1.118.82 feet, to a"TXDOT"capped
iron rod found for an angle corner;THENCE, North 85 degrees 30 minutes 21 seconds East, continuing
with said north right-of-way line of the Grand Parkway,for a distance of 1,393.86 feet, to a"TXDOT"
capped iron rod found for the beginning of a non-tangent curve to the left, having a radius of 16,988.68
feet,a central angle of 00 degrees 08 minutes 24 seconds,and whose chord bears North 85 degrees 28
minutes 19 seconds East, at a chord distance of 41.53 feet;THENCE, continuing along said north
right-of-way line of the Grand Parkway, and with said curve to the left,for an arc length of 41.53 feet, to a
"TXDOT"capped iron rod found for the end of the curve;THENCE, North 85 degrees 22 minutes 44
seconds East, continuing with said north right-of-way line of the Grand Parkway, for a total distance of
3,753.54 feet, to a 5/8 inch iron rod with cap stamped"TERRA"found for the southwest comer of a 400
square foot(by deed)tract deeded to Chambers County Improvement District No. 1, as recorded in
Volume 978, Page 668, of the Official Public Records of Chambers County,Texas;THENCE, North 85
degrees 30 minutes 03 seconds East,continuing with said north right-of-way line of Grand Parkway,for a
total distance of 19.90 feet, to a"TXDOT"capped iron rod found for the southeast corner of said 400
square foot tract;THENCE, North 85 degrees 23 minutes 13 seconds East, continuing with said north
right-of-way line of Grand Parkway, for a total distance of 3,016.50 feet,to a 5/8 inch iron rod with cap
stamped"GORRONDONA"set marking the POINT OF BEGINNING and southwest corner of the herein
described 17.428 acre tract,said rod having a grid coordinate value of N=13,835,561.879,and
E=3,273,872.314;
THENCE, North 03 degrees 11 minutes 04 seconds West,for a distance of 826.68 feet, to a 5/8 inch
iron rod with cap stamped"GORRONDONK set marking the northwest corner of the herein described
17.428 acre tract;
THENCE, North 84 degrees 44 minutes 48 seconds East,for a distance of 848.85 feet, to a 5/8 inch
iron rod with cap stamped"GORRONDONK set marking the northeast corner of the herein described
17.428 acre tract,said rod located in the west line of the 7.387 acre(by deed)described as Parcel 2E,
Part 4 in the Drainage and Access Easement deeded to State of Texas, as recorded Volume 650, Page
401 of the Official Public Records of Chambers County,Texas;
THENCE, South 17 degrees 47 minutes 50 seconds East,with said 7.387 acre Parcel 2E, Part 4 State
of Texas Drainage and Access Easement, for a distance of 743.74 feet,to a 5/8 inch iron rod with cap
stamped"GORRONDONN'set marking the southeast corner of the herein described 17.428 acre tract
located in said north right-of-way line of the Grand Parkway(State Highway 99), said rod being the
beginning of a non-tangent curve to the right, having a radius of 4,096.71 feet,a central angle of 13
degrees 24 minutes 35 seconds,and whose chord bears South 78 degrees 40 minutes 39 seconds West,
at a chord distance of 956.62 feet;
THENCE, continuing along said north right-of-way line of the Grand Parkway,and with said curve to the
Form T 7: Commitment for Title Insurance(01103/14) TX--SPS-1-214300112104722A
Page 3
CHICAGO TITLE INSURANCE COMPANY Commitment No.:4300112104722A
SCHEDULE A
(continued)
right,for an arc length of 958.81 feet,to a 5/8 inch iron rod with cap stamped"GORRONDONA"set for the
end of the curve;
THENCE, South 85 degrees 23 minutes 13 seconds West,with said north right-of-way line of the Grand
Parkway, for a distance of 88.97 feet, to the POINT OF BEGINNING of the herein described tract,
containing 17.428 acres(759,175 square feet)of land,more or less.
NOTE: The Company is prohibited from insuring the area or quantity of the land described herein. Any
statement in the above legal description of the area or quantity of land is not a representation that such
area or quantity is correct, but is made only for informational and/or identification purposes and does not
override Item 2 of Schedule B hereof.
END OF SCHEDULE A
Form T-7: CommNnent for Tale Insurance(01103M) TX-SPS-1-214300112104722A
Page 4