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Type of Project: Company Name: Project Location: Key Map: 'G OF Harris County Tax Abatement Program Project Summary and Economic Analysis Revised — March 13, 2007 New Construction — Cold Storage Warehousing and Distribution Preferred Freezer Services (Lessee) Under Bear, LLC (Owner/Lessor) 10000 Porter Road LaPorte, Texas 77571 Precinct 2, Commissioner Sylvia Garcia 539J PROJECT SUMMARY Municipal Action: On November 6, 2006, the City of La Porte held a public hearing to consider the creation of a reinvestment zone for entering into a tax abatement agreement with Preferred Freezer Services Houston Port, LLC (Preferred Freezer) where no public opposition was expressed, created the La Porte Reinvestment Zone "Zone C" by City Ordinance No. 2006-2955, and approved a tax abatement agreement by City Ordinance No. 2006-2956. Prior Actions by Commissioners Court: An early start variance was approved for the proposed project November 21, 2006, to enable construction to commence prior to the execution of a tax abatement agreement. Business Profile: Preferred Freezer Services (Preferred Freezer) started operations in Perth Amboy, New Jersey in 1989. Currently, Preferred Freezer operates 14 cold storage warehouses with a total 74 million cubic feet of space. Locations for the facilities are in New York, New Jersey, Boston, Los Angeles, Miami, and Chicago. Preferred Freezer Services will be new to Harris County having no other business facilities in operation in the state of Texas. Sales for the 14 facilities generated $79 million in 2005. Development Plan: Preferred Freezer Services' business is steadily growing. The proposed project consist of a new 167,381 square foot state of the art, standardized refrigerated warehouse and distribution facility in the Underwood Business Park in La Porte, TX. The new site will be located on an estimated 10.115 -acre tract at 10000 Porter Road in Precinct 2. Preferred Freezer estimates an investment of $10.4 million in the new facility of which $9.9 million will be subject to abatement. Competitive Siting: Preferred Freezer Services considered two other cities as potential site locations for this project. Chicago, IL was considered because it would be the second facility in that area market and they have the resources for employees, vendors and customers. Chicago has offered a Tax Increment Financing (TIF) which allows lower multiples on the assessed value thereby lowering property taxes. Jacksonville, Fl has been considered because the site is located in an Enterprise/Empowerment Zone offering hiring incentives, infrastructure grants, and tax refunds. Environmental Issues: According to the Pollution Control Division of Harris County Public Health & Environmental Services, the compliance history database of the Texas Commission on Environmental Quality (TCEQ) and the EPA Integrated Compliance Information System were reviewed with no enforcement actions, violation notices, or complaints found regarding Preferred Freezer Services. This project will be subject to state