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HomeMy WebLinkAboutO-1994-1994 . . ORDINANCE NO. 94- 1994 AN ORDINANCE APPROVING AND AUTHORIZING AN OPTION AGREEMENT BETWEEN THE CITY OF LA PORTE AND HAROLD P. PFEIFFER, FOR THE PURCHASE BY THE CITY OF LA PORTE OF TWO TRACTS OF LAND FOR PUBLIC PURPOSES; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: section 1. The City Council hereby approves and authorizes the contract, agreement, or other undertaking described in the title of this ordinance, in substantially the form as shown in the document which is attached hereto and incorporated herein by this reference. The City Manager is hereby authorized to execute such document and all related documents on behalf of the City of La Porte. The City Secretary is hereby authorized to attest to all such signatures and to affix the seal of the City to all such documents. section 2. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the Ci ty for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Texas Government Code; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subject matter thereof has been discussed, considered and formally acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. . e ORDINANCE NO. 94-1994 PAGE 2 Section 3. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 8th day of August, 1994. CITY OF LA PORTE By: ~/h {{Ic,~~ 'N rman L: a 0 e, Mayor ATTEST: ~L-- Sue Lenes, City Secretary AP6Z~ Knox W. ASkins, City Attorney e CITY OFtA PORTE PHONE (7131 471.5020 . P. O. Box 1 115 . LA PoRTE. TEXAS 77572 copy July 11, 1994 Mr. Harold P. Pfeiffer 619 Brownell La Porte, TX 77571 Re: Tract One: Lots 1-5, both inclusive, in Sailor's Cove Subdivision, a 2.209 acre tract, being a resubdivision of part of Lot 18, W.B. Lowrance Subdivision, recorded in Volume 83, Page 596, Harris County Deed Records - Beazley Homestead Tract, according to the map or plat of said Sailor's Cove Subdivision recorded April 6, 1994, under Harris County Clerk's file No. P779441. Tract Two: Lots 7 & 8, Bayshore Block, Bayshore Park Subdivision, according to the map or plat thereof recorded in Volume 10, Page 22, of the Map Records of Harris County, Texas. Dear Mr. Pfeiffer: Please be advised that I have been authorized by the La Porte City Council to negotiate the acquisition of the above-described property which you own located on Bayshore Drive at Sea Breeze Avenue. On July 5, 1994, we met in my office and reached an agreement on the acquisition. As I explained to you, the City of La Porte has issued in 1994, substantially all of its $10,000,000.00 limit on tax free obligations, under Internal Revenue Service regulations. Therefore, the City of La Porte desires to obtain an option agreement from you, for the purchase of the above described property by the City of La Porte, with final closing in January, 1995. The points which follow will outline the critical elements of our discussion: 1. The purchase price is $675,000.00. 2. You have agreed to finance this land acquisition if the note can by prepared by the City in a manner that is structured as a tax exempt instrument to the holder of the note. 3. Financing arrangement: Non-refundable option money to be paid upon signing of mutually acceptable option agreement, which option money shall be applied in its entirety to the purchase price, if the City exercises its option to purchase on or before January 31, 1995, $100,000.00. . e COpy Mr. Harold P. Pfeiffer July 11, 1994 Page 2 The principal amount of the promissory note at the time of closing will be $575,000.00, with interest thereon at 4.5% per annum. Principal and interest shall be payable annually commencing August 10, 1995, and each August 10th thereafter until the full principal balance and all interest due thereon shall have been fully paid. The City of La Porte will reserve the right to prepay any amount of principal and interest on the promissory note, at any time, prior to maturity. 4. The subject property was appraised by Patricia stone Muston, a state certified general real estate appraiser, on July 31, 1993, who placed a value of $795,000.00 on the property. The City agrees to furnish you with a copy of this appraisal, and to sign the necessary schedule for your use in claiming a charitable deduction for federal income tax purposes, for the difference between the sale price and the appraised price. 5. The City Attorney along with the City's Bond Counsel will prepare all documents and legal instruments to insure this transaction is structured for tax exempt purposes. The City agrees to pay these legal fees. Our City Attorney is Knox W. ASkins, and our Bond Counsel is Paul Martin with MCGinnis, Lochridge & Kilgore, of San Antonio, Texas. 6. You will at your expense have your attorney, Phil Pfeiffer of Fulbright and Jaworski, review all legal documents. 7. The City's attorney will prepare an opinion letter for the city on the property acquisition, or, at the city's option, will secure an owner's title policy, at the City'S expense. 8. The option agreement will be executed, and the City of La Porte will pay the $100,000.00 option fee to you, within thirty (30) days of July 11, 1994. 9. You will retain possession of the property, and be entitled to all income, and be responsible for all expenses on the property, until the date of final closing. If the above nine points clearly and accurately reflect our agreement reached on July 5, 1994, I would appreciate your signing and returning to me, the extra copy of this letter, retaining the original copy as your copy of the agreement between you and the City of La Porte. . e Mr. Harold P. Pfeiffer July 11, 1994 Page 3 C""O"P""V" . .... u.'. .=~ i.': . ,II' . i, .. . I wish to thank you for your cooperation in helping the ci ty fulfill one of the goals called for within the City's Comprehensive Plan and its Bay Front Master Plan. It has been a pleasure working with you. Sincerely, CITY OF LA PORTE By: 6(~l. ~ Robert T. Herrera City Manager ACCEPTED AND AGREED: '~Jti~* RTH:sw cc: Hon. Mayor & City Council Knox W. Askins, City Attorney Jeff Litchfield, Director of Finance Paul Martin, Bond Counsel Phil Pfeiffer, Fulbright & Jaworski . e OPTI:ON AGREEMENT C ...p.t).."'V.......' ,I: i." ".", -I, i. . : j;, l~" ,I:' :.: . . . . ~i1 : '~r. .,: made and entered into by and between HAROLD P. County, Texas, hereinafter called GRANTOR, and CITY OF LA PORTE, a municipal corporation, of Harris county, Texas, hereinafter called GRANTEE, STATE OF TEXAS { { COUNTY OF HARRIS { This Agreement, PFEIFFER, of Harris W I: T N E SSE T H: I. For and in consideration of the sum of ONE HUNDRED THOUSAND DOLLARS ($100,000.00) in cash to me in hand paid by CITY OF LA PORTE, a municipal corporation, GRANTEE, of Harris County, Texas, receipt of which is hereby acknowledged; I, HAROLD P. PFEIFFER, GRANTOR, being the owner of the hereinafter described real property, do hereby give and grant to the said GRANTEE, its successors and assigns, an irrevocable option, effective until 12:00 o'clock Noon on January 31, 1995, to purchase the hereinafter described property, to-wit: Tract One: Lots 1-5, both inclusive, in Sailor's Cove Subdivision, a 2.209 acre tract, being a resubdivision of part of Lot 18, W.B. Lowrance Subdivision, recorded in Volume 83, Page 596, Harris County Deed Records - Beazley Homestead Tract, according to the map or plat of said Sailor's Cove Subdivision recorded April 6, 1994, under Harris County Clerk's file No. P779441. Tract Two: Lots 7 & 8, Bayshore Block, Bayshore Park Subdivision, according to the map or plat thereof recorded in Volume 10, Page 22, of the Map Records of Harris County, Texas. II. GRANTEE shall have the right, during the time set out in this Option Agreement, to purchase the hereinabove described property for the total sum of Six Hundred Seventy-five Thousand Dollars ($675,000.00), of which the Option Money paid hereunder shall be a part. . e c@~v III. It is represented by the GRANTOR that the subject properties are free and clear of all restrictions, reservations, easements and encroachments, except as shown on the plat of said subdivision. IV. This right, privilege and option to so purchase, according to the terms and provisions of this Agreement, shall terminate at 12:00 o'clock Noon on January 31, 1995. In the event GRANTEE exercises this option within the time allowed, by certified mail to GRANTOR, addressed to Mr. HAROLD P. PFEIFFER, 619 Brownell, La Porte, Texas 77571, setting out that the option is exercised, then, in that event, this purchase shall be concluded prior to January 31, 1995, as set out herein. V. Upon closing of this transaction, GRANTOR agrees to furnish GRANTEE, at GRANTEE's option and at GRANTEE's sole expense, at the time of execution of GRANTOR's Deed, an Owner's Title Policy issued by Sovereign Title Company, Deer Park, Texas, covering such properties for the amount of the purchase price. IV. All taxes for the calendar year 1994 and prior years shall be paid by GRANTOR. All taxes for the current year of closing shall be prorated as of the date of closing. Possession of the property shall be delivered to GRANTEE at the date of closing of the sale. GRANTOR shall execute and deliver to GRANTEE a General Warranty Deed, which deed shall contain covenants of general warranty, conveying good and indefeasible title without exceptions of any nature. GRANTEE shall pay for all usual and customary title company expenses and other expenses in connection with the closing of this transaction. VII. At closing, GRANTEE shall deliver to GRANTOR the following: 1) GRANTEE4It~romissory note in the S~_f $575,000.00, dated the date of closing, bearing interest at the rate of 4.5% per annum; payable in accordance with the amortization schedule attached hereto as Exhibit "A", incorporated by reference herein, and made a part hereof for all purposes. GRANTEE reserves the right to prepay any amount of principal or interest on the promissory note, at any time, without prepaYment penalty; 2) certified copy of the City of La Porte ordinance authorizing the issuance of said promissory note, in form attached hereto as Exhibit "B", incorporated by reference herein, and made a part hereof for all purposes; 3) opinion letter from McGinnis, Lochridge & Kilgore, Bond Counsel of San Antonio, Texas, in form attached hereto as Exhibit "C", incorporated by reference herein, and made a part hereof for all purposes. VIII. In the event GRANTEE does not exercise the right, privilege and option herein granted to it, on or before 12:00 Noon, January 31, 1995, then all rights and privileges granted to it hereunder shall automatically terminate and shall be of no force and effect and the option money paid under this option agreement to GRANTOR shall be forfeited to GRANTOR, and the GRANTEE shall have no further right to such sum, and in such event both Parties hereto shall be released from any and all further obligations hereunder. IX. In the event this Option is exercised and the GRANTOR is unable to furnish to GRANTEE the owner's title policy provided for in Paragraph V hereof, then in that event the option money, receipted for herein, shall be returned to GRANTEE, and both parties shall be released herefrom; except, that GRANTOR shall use his best efforts to furnish such title policy, and GRANTEE may waive any objection, if any, to the title, and close the transaction. ~ ~ ,py In the even4ll~tle is good and the titl~~Olicy mentioned herein may be furnished, and GRANTEE refuses to consummate the purchase of the subject property under the terms and conditions herein set out, then in that event GRANTOR shall have the right of specific performance. In the event title is good and the title policy mentioned herein may be furnished, or in the event GRANTEE waives any objection, and GRANTOR refuses to convey the subject property under the terms and conditions herein set out, then in that event GRANTEE shall have the right of specific performance. X. Each party certifies to the other party hereto, that there is no real estate broker or agent involved in this transaction. XI. This contract embraces the full agreement between the Parties hereto and no statement, remark, agreement or understanding, oral or written, not contained herein, will be recognized or enforced. 1~1 t. ~ &'~ ~ EXECUTED IN SEVERAL DUPLICATE ORIGINALS, this the 2-51:h day of J' d~ ~....')J(", ~y, 1994. GRAN'l'OR: !{~t;;~-eF~F~ GRUTEE: CITY OF LA PORTE By: G?~ 1: ~ ROBERT T. HERRERA City Manager COpy STATE OF TEXAS e l { COUNTY OF HARRIS ( e BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared HAROLD P. PFEIFFER, known to me to be the person whose names is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and consideration therein expressed, and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF )~L...to , 1994. ) ~ OFFICE, this the ~ day of ~LU~ Notary Public, State of Texas .i:~'f.,. SANCHA WENSE . *:' * :-.. Nol8ry P\dlIc, SIId8 d Tera ..... .'~. '..~..~.~., My CommJsslDn ExpIr. 08-24-97 STATE OF TEXAS { { COUNTY OF HARRIS { BEFORE ME, the undersigned, a Notary Public in and for said County and State, on this day personally appeared ROBERT T. HERRERA, City Manager of the CITY OF LA PORTE, 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 and consideration therein expressed, and in the capacity therein stated. ICCCCCDCCCOOO~'~:OCOOCOC'COCOCOCCCD "~:~'" CAROL BUTTLER I .,#:,*o-j"~ . .. .. :.: :.' NOTARY PUIUC ~ ~. ... : SWE OF TEXAS ".'~" COMMISSION EXPIRES 0&-11-871 ...... OOOOOCCDODOOOOCCCCCDOOCOCOoooooooo A GIVEN UNDER MY HAND AND SEAL OF UjOS1- , 1994. C.~ 0'.. PV ~ ; .-. i' "~~i F I-t,': \, -.." . ...... ."' :. ..... '-,.. . . .. '. . . .. . e e PROMISSORY HOTE La Porte, Harris County, Texas $575,000.00 C'""'" 0..:.... fPW .r" ~" " 0 !:~i;_..:.:' .~ c,_ .,) . January 10, 1995 For value received, the CITY OF LA PORTE, TEXAS, a municipal corporation and home rule city under the Constitution and laws of the state of Texas (hereinafter "Maker"), promises to pay to the order of HAROLD P. PFEIFFER (hereinafter "Payee"), Harris County, Texas, the sum of FIVE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($575,000.00), in legal and lawful money of the United States of America, with interest thereon from date hereof until maturity in the amounts and at the times as set out below; matured unpaid principal and interest shall bear interest at the maximum rate permitted by law from date of maturity until paid. This note is due and payable as follows, to-wit: Payment Date Reduction in Principal Payment Amount Interest Amount 08/10/95 $111,480.07 $25,875.00 $85,605.07 08/10/96 111,480.07 22,022.77 89,457.30 08/10/97 111,480.07 17,977.19 93,482.88 08/10/98 111,480.07 13,790.46 97,689.61 08/10/99 111,480.07 9,394.43 102,085.64 08/10/00 111,480.07 4,800.58 106,679.50 Outstanding Balance $575,000.00 489,394.93 399,937.63 306,454.75 208,765.14 106,679.50 0.00 Maker agrees that during the full term hereof the maximum lawful rate of interest for this note determined under Texas law shall be the lesser of the rate calculated as described in Article 717k-2, Vernon's Texas civil Statutes, as amended, or the Indicated Rate (weekly) ceiling as Specified in Article 5069-1.04, Vernon's Texas Civil Statues, as amended. Further, to the extent that any other lawful rate exceeds the rate so determined then the higher ceiling rate shall apply. It is the intention of Maker and Payee to conform strictly to the usury laws now in force in the State of Texas, except as superseded by applicable Federal law. Accordingly, notwithstanding anything to the contrary in this note or any other agreement entered into in connection herewith, it is agreed as follows: (i) in the event that the maturity of this note is accelerated by an election of EXHIBIT A e e C."@[}2)W lij'" .. D. '~,:O Payee resulting from an event of default under this note or any agreement entered into in connection herewith, then earned interest may never include more than the maximum amount permitted by law, and any unearned interest included in the face of this note or otherwise shall be cancelled automatically and, if theretofore paid, shall be either refunded to Maker or credited on the principal amount of this note; and (ii) the aggregate of all interest and any other charges constituting interest under the laws of the state of Texas and contracted for, chargeable or receivable under this note or otherwise in connection with this loan transaction shall under no circumstances exceed the maximum amount of interest permitted by law, and any excess shall be deemed a mistake and cancelled automatically and, if theretofore paid, shall be either refunded to Maker or credited on the principal amount of this note. It is expressly provided that upon default in the punctual payment of this note or any part thereof, principal or interest, as the same shall become due and payable, the entire indebtedness secured by the hereinafter mentioned lien shall be matured, at the option of the holder; and in the event default is made in the prompt payment of this note when due or declared due, and the same is placed in the hands of an attorney for collection, or suit is brought on same, or the same is collected through .Probate, Bankruptcy or other judicial proceedings, then the makers agree and promise to pay ten percent (10%) additional on the amount of principal and interest then owing, as attorney's fees. Each maker, surety and endorser of this note expressly waives all notices, demands for payment, presentations for payment, notice of intention to accelerate to maturity, protest and notice of protest, as to this note and as to each, every and all installments thereof. This note is issued pursuant to Ordinance No. 95-01 whereunder the Maker authorized the levy of a continuing, direct, annual ad valorem tax on taxable property within the City of La Porte, within the limits prescribed by law, for each year while any part of the note is considered outstanding, in sufficient amount to pay interest on the note as it becomes due, to provide a sinking fund for the payment of the principal of the note when due, and to pay the expenses of assessing and collecting such tax. The ad valorem taxes sufficient to provide for the payment of the interest on and principal of the note, as such interest comes due and such principal matures, are hereby pledged irrevocably for such payment, within the limit prescribed by law. IT IS HEREBY CERTIFIED AND RECITED that the issuance of this note is duly authorized by law and that all acts, conditions, and things required to be done precedent to and in connection with the issuance of this note have been properly done and performed and have happened in regular and due time, form, and manner as required by the laws of the state of Texas. 2 e e Co. . (Q)~V {' . ::.. D'. .... .,1;.......,: :0. .... .., . IN WITNESS WHEREOF, the City Council has caused this note to be executed in its name by the manual signature of the Mayor of the Ci ty , and the ci ty Secretary of the City of La Porte has attested to the execution thereof on behalf of the City of La Porte, and has affixed the City's seal thereto. CITY OF LA PORTE By: Norman L. Malone Mayor ATTEST: Sue Lenes City Secretary 3 e e ORDINUCE NO. 95-_ AN ORDINANCE ~IHDING THE NECESSITY ~OR THE ACQUISITION O~ CERTAIN REAL PROPERTY ~OR PUBLIC PURPOSES; AUTHORIZING THB BXBRCISB O~ OPTION AGRBBKBN'l' DATED JULY 25, 1994, AND THB PURCHASE O~ SAID REAL PROPERTY; AUTHORIZING THB ISSUANCB 01' THB CITY O~ LA PORTB'S $575,000. 00 PROMISSORY NOTB; J'IHDING COMPLIANCE WITH THB OPEN MBBTINGS LAW; PROVIDING AN BPPECTIVB DATE HBRBOJ'. BB IT ORDAlnD BY THE CITY COUNCIL OJ' '1'11. CITY OJ' LA PORTB I SBCTION 1. Tbe City council of tbe city of La Porte (tbe "city") bas beretofore, by its ordiaance No. 94-_, passed aad approved Auqus~ 8, 1994, au~bori.ed ~he city Manaqer of the City of La Porte to enter into an option aqreement with Harole! P. Pfeiffer, for tbe purchase of tbe real ~roperty in the city of La Porte Texas, 1Il0re particularly described in said option aqreement, to be' utili.ed by the city of La po~t. for public purposes (the "property"). SECTION 2. The City Council hereby author:h:88 thA e.erciee of the purchase option contained in said option agreement dated , 1994, and the purchase of the Property on the term 0 and conditions therein stated. SECTION 3. The City Council,' as a portion of the consideration to be paid for the purcha.e of the Property, and in accordance in Article 717w, Vernon's Texas Civil Statutes, hereby authorizes the execution and delivery ()f the City's promissory fiote (the "Note") in form attached hereto a~ Bxhibit "A", incorporated by reference herein, and made a part hereof for all purposed. Th* Mayor of the City is authorized to eaocute the Note on behalf of . the City, and the City Secretary ol the City is authoriztd to attest the execution thereof on behalf of th~ City, and to a!fix the City's seal thereto. SECTION 4. The City Council, during each year ~hile any of the principal of or interest on the Note is outstanding and unpaid, eha1l compute and ascertain a rate and amount of ad valorem tax ~hich will be sufficient to raise and produce the money reqUired to pay the interest on the Note as 8uch interest comes due, ~nd to provide and maintain a sinking fund adequat. to pay the prinoipal on the Note as such principal matures (but never less than 2t of the original principal amount of the Note 88 a sinking fund each yeer): and the tax shall be based on the latest approved tax rolls of the City, with full allowance being made for tax d.linquencies and the cost of tax collection. The rate and amount of ad valorem tax is hereby levied, and is hereby ordered to be levied, against all taxable property in the City, for ~ach year while the Note is outstanding and unpaid; and 8uch tax shall. be assessed and collected each year and deposited, as collected, to the credit of an interest and sink~ng fund. The ad v4lorem taxes sufficient to provide fo~ the payment of the interest on and principal of the c@~w EXHIBIT B Note, as such interest comes due and such p~~cipa1 matures, are hereby pledged . .vocably for such paym~ wi thin the limit prescribed by 1a SECTION 5. The City Council covenants to take any aotion or refrain from any action which would adversely affect the treatment of the Note as an obligation described in section 103 of the Internal Revenue Code of 1986, as amended (the "Code"), the interest on which 1s not includable in the "gross income" of the holder for purposes of federal income taxation. In furtherance thereof, the City Council covenants as follows: ( a) to take any action to assure that in the event that the "private business use" of the Property (within the meaning of section l41(b) of the Code) exceeds 5' of the original principal amount of the Note, then the amount in excess of 5' is used for a "private business use" which is "related" and not "disproportionate," within the meaning of section 141(b)(3) of the Code, to the governmental use; (b) to refrain from taking any action which would otherwise result in the Note being treated as a "private . activity bond" within the meaning of section l41(b) of the Code; and ( c) to refrain from taking any action that would result in the Note being "federally guaranteed" wi thin the meaning of section 149(b) of the Code. It 1s the understanding of the City that the covenants contained herein are intended to assure compliance with the Code and any regulations or rulings promulgated by the u.s. Department of the Treasury pursuant thereto. In furtherance of such intention, the City hereby authorizes and directs the Mayor of the City to execute any documents, certificates, or reports required by the Code and to make such elections, on behalf of the City, which may be permitted by the Code as are consistent with the purpose for the issuance of the Note. In the event that regulations or rulings are hereafter promulgated which modify or expand provisions of the Code, as applicable to the Note, the City will not be required to comply with any covenant contained herein to the extent that such modification or expansion, in the opinion of nationally-recognized bond counsel, will not adversely affect the exemption from federal income taxation of interest on the Note under section 103 of the Code. In the event that regulations or rulings are hereafter promulgated which impose additional requirements which are applicable to the Note, the City agrees to comply with the additional requirements to the extent necessary, in the opinion of nationally-recognized bond counsel, to preserve the exemption from federal income taxation of interest on the Note under section 103 of the Code. ~"'''''''''OP'V 6" . .i., . i ~Ii" . .~ _.,- I. . . i"" ~. ...:101 .. . .: . . ~ i;,; i' ,,::1: :\' r. SECTION 6. The City Council officially finds, determines, recites, and declares that a sufficient written notice of the date, hour, place, and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall of the Ci ty for the time required by law preceding this meeting, as required by the Open Meetings Law, Chapter 551, Tex. Gov't Code Ann.; and that this meeting has been open to the public as required by law at all times during which this ordinance and the subjeot matte~ thereof has been discussed, considered, and formally acted upon. The City Council further ratifies, approves, and confirms such written notice and the contents and posting thereof. e e SECTION 7. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 9th day of January, 1995. CITY OF LA PORTE By: Norman L. Malone, Mayor ATTEST: Sue Lenes, City Secretary APPROVED: Knox W. Askins, City Attorney C.t..o:: ",. p""". V" :.i "I " "j' . . .,' ~ . '"..' _; t.~~.. ~_: :'\;... ',.( .. .. e e Opinion Letter From Akin, Bump, strausss, Hauer & Feld, L.L.P (To be furnished later.) EXHIBIT "c" C. ""'0" ...p...:..Y'.!.....i .. 'I . .,.... ,. ., ..~.. . ,- \.. 'i~!" ,~","'" :J ,.:" -':'. '. e Request for Taxpayer e Identification Number and Certification Form W-g (RlI'I. December 1988) Department of the Treasury Internal Revenue Service Nilme (If jOint IIiImes, list first ilnd circle the name of the person or entity whose number you enter in Palt I below. See IlIItnIctJOIlI under "Nlm."If YOU' 1lIIlI. his chlnpd.) J Ii HAR ii Address (number and street) i 619 BROWNELL : : City, state, and ZIP code ~ LA PORTE, TX 77571 Tax a er Identification Number Enter your taxpayer identification number in the appropriate box. For individuals and sole proprietors, this is your social security number. For other entities, it is your employer identification number. If you do not have a number, see How To Obtain a nN, below.. Note: If the account is in more than one name, see the chart on page 2 for guidelines on whose number to enter. (, " OR Give this form to the requester. Do NOT send to IRS. Ust account number(s) here (optional). For Payees Exempt From Backup Withholding (See Instructions) Requester's name and address (optional) Certlflcatlon.-Under penalties of pe~ury, I certify that: (I) The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and (2) I am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by ~e Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that I am no longer subject to backup withholding (does not apply to real estate transactions, mortgage interest paid, the acquisition or abandonment of secured property, contributions to an individual retirement'arrangement (IRA), and payments other than interest and dividends). Certlflcatlon Instructlons.- You must cross out item (2) above if you have been notified by IRS that you are currently subject to backup withholding because of underreporting interest or dividends on your tax return. (Also see Signing the Certification under Specific Instructions, on page 2.) Please Sip Here Sllnature. Instructions (Section references are to the Internal Revenue Code.) Purpose of Form.-A person who is required to file an information return with IRS must obtain your correct taxpayer identification number (TIN) to report income paid to you. real estate transactions, mortgage interest you paid, the acquisition or abandonment of secured property, or contributions you made to an individual retirement arrangement (IRA). Use Form W-9 to furnish your correct TIN to the requester (the person asking you to furnish your TIN). and. when applicable. (1) to certify that the TIN you are furnishing is correct (or that you are waiting for a number to be issued), (2) to certify that you are not subject to backup withholding, and (3) to claim exemption from backup withholding if you are an exempt payee. Furnishing your correct TIN and making the appropriate certifications will prevent certain payments from being subject to the 2096 baCkup withholding. Note: " a requester gives you a form other than a W.9 to request your nN, you must use the requester's form. How To Obtain a TIN.-If you do not have a TIN, apply for one immediately. To apply, get Form S5-S. Application for a Social Security Number Card (for individuals) from your local office of the Social Security Administration, or Form ~, Application for Employer Identification Number (for businesses and all other entities), from your local Internal Revenue Service office. To complete Form W-9 if you do not have a TIN, write .Applied For" in the space for the TIN in Part I. sign and date the form, and give it to the n!lfuester. Generally, you will then have 60 days to obtain a TIN and furnish it to the requester. If the requester does not receive your TIN within 60 days. backup withholding, if applicable, will begin and continue til you r h your TIN to the requester. For reporta Ie interest or dividend payments, the payer must exercise one of the fallowing options concerning backup withholding during this 60.day period. Under option (1), a payer must backup withhold on any withdrawals you make from your account after 7 business days after the requester receives this form back from you. Under option (2), the payer must backup withhold on any reportable Interest or dividend payments made to your account, regardless of whether you make any withdrawals. The baCkup withholding under option (2) must begin no later than 7 business days after the requester receives this form back. Under aptian . (2) the payer is reqaired to refund the amounts withheld if your certified TIN is received within the 6o-day period and you were not subject to backup withholding during that period. Note: Writing -Applied For- on the form meanS that you have already applied for a TIN OR that you intend to apply for one in the near future. As soon as you receive your TIN, complete another Form W.9. include your TIN, sign and date the form, and give it to the requester. What Is Backup Wlthholdlngl-Persons making certain payments to you are required to withhold and pay to IRS 2096 of such payments under certain conditions. This is called "backup withholding." Payments that could be subject to backup withholding include interest, dividends, broker and barter exchange transactions. rents. royalties. nonemployee compensation, and certain payments from fishing boat operators, but do not include real estate transactions. If you give the requester your correct TIN, make the appropriate certifications, and report all your taxable interest and dividends on your tax return, your payments will not be subject to backup withholding. Payments you receive will be subject to backup withholding if: . Date. (1) You do not furnish your TIN to the requester. or (2) IRS notifies the requester that you furnished an incorrect TIN. or (3) You are notified by IRS that you are subject to backup withholding because you failed to report all your interest and dividends on your tax return (for interest and dividend accounts only), or (4) You fail to certify to the requester that you are not subject to backup withholding under (3) above (far interest and dividend accounts opened after 1983 only). or (5) You fail to certify your TIN. This applies only to interest, dividend. broker. or barter exchange accounts opened after 1983, or broker accounts considered inactive in 1983. Far other payments, you are subject to backup withholding only if (1) or (2) above applies. Certain payees and payments are exempt from backup withholding and information reporting. See Payees and Payments Exempt From Backup Withholding, below, and Exempt Payees and Payments under Specific Instructions, on page 2, if you are an exempt payee. )Payees and Payments Exempt From Backup \.. Wlthholdlng.- The following is a list of payees -exempt from backup withholding and for which no information reporting is required. For interest and dividends. all listed payees are exempt except item (9). Far broker transactions, payees listed in (1) through (13), and a person registered under the Investment Advisers Act of 1940 who regularly acts as a broker are exempt. Payments subject to reporting under sections 6041 and 6041A are generally exempt from backup withholding only if made to payees described in items (1) through (7), except that a corporation that provides medical and health care services or bills and collects payments for such services is not exempt from backup witl!.holding or Form W.g (Rev. 12-88)