HomeMy WebLinkAboutO-1991-1794
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ORDINANCE NO. 1794
AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN
INDUSTRIAL DISTRICT AGREEMENT WITH ARCO CHEMICAL COMPANY, WITHIN THE
BAYPORT INDUSTRIAL DISTRICT FOR THE TERM COMMENCING JANUARY 1, 1987,
AND ENDING DECEMBER 31, 1993.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE:
Section 1. The City Council hereby finds, determines and
declares that ARCO Chemical Company has executed an industrial
district agreement with the City of La Porte, for the term
commencing January 1, 19B7, and ending December 31, 1993, a copy of
proposed industrial district agreement being attached hereto,
incorporated by reference herein, and made a part hereof for all
purposes.
Section 2.
The Mayor, the City Council, and the City
Secretary of the City of La Porte, Texas, be, and they are hereby,
authorized and empowered to execute and deliver on behalf of the
City of La Porte, Texas, the industrial district agreement with the
corporation named in Section 1 hereof, a copy of which is attached
hereto.
Section 3.
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
City for the time required by law preceding this meeting, as
required by the Open Meetings Law, Article 6252-17, Texas Revised
Civil Statutes Annotated~ 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 w~itten notice and the contents and posting
thereof.
Section 4. This Ordinance shall be effective from and after
its passage and approval, and it is so ordered.
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ORDINANCE NO. 1794
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PASSED AND APPROVED, this 11th day of November, 1991.
CITY OF LA PORTE
BY~& ~~
~ rman' L.?J alo ,Mayor
ATTEST:
S~-.~ .-LO-~~~~t;;
Cher1e Black
City Secretary
AP~u!'LJ
Knox W. Askins
City Attorney
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(Revised: 06/86)
NOTICE: THIS CONTRACT IS SUBJECT TO ARBITRATION
UNDER THE TEXAS GENERAL ARBITRATION ACT, ARTICLE
224, ET. SEQ., REVISED CIVIL STATUTES OF TEXAS
TH~ STATE OF TEXAS ~
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COUNTY OF HARRIS ~
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CITY OF LA PORTE ~
INDUSTRIAL DISTRICT AGREEMENT
This AGREEMENT made and entered into by and between the CITY OF
LA PORTE, TEXAS, a municipal corporation of Harris County" Texas,
hereinafter called "CITY", and
ARCD Chemical Canpany
, a Delaware
corporation, hereinafter called "COMPANY",
WIT N E SSE T H: That
WHEREAS, it is the established policy of the City Council of the
City of La Porte, Texas, to adopt such reasonable measures from time
to time as are permitted by law and which will tend to enhance the
economic stability and growth of the City and its environs by attracting
the iocation of new and the expansion of existing industries therein,
and such policy is hereby reaffirmed and adopted by this City Council
as being in the best interest of the City and its citizens~ and
'WHEREAS, Company is the owner of a certain tract(s) of land more
particularly described in the Deed Records of Harris County, Texas,
in the following Volume and Page references, to-wit:
Being 23.B225 acres (1,037,707 square feet) of land situated in the
George B. McKinstry League, Abstract 47, Harris County, Texas, and
being out of that certain 100.0000 acre tract of land conveyed to
ARCO Chemical Company by instrument recorded under File Number
M72BlBl and Film Code lB2-70-l7B6 of the Harris County Official
Public Records of Real Property, said 23.B225 acres (1,037,707
square feet) of land being more particularly described by metes and
bounds on Exhibit "B" attached hereto, incorporated by reference
herein, and made a part hereof for all purposes.
THIS INDUSTRIAL DISTRICT AGREEMENT IS SUBJECT TO THE TERMS AND
CONDITIONS SET FORTH IN EXHIBIT "A" ATTACHED HERETO, INCORPORATED
BY REFERENCE HEREIN, AND MADE A PART HEREOF FOR ALL PURPOSES.
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Industrial District Agreement - 2
upon which tract(s) Company has either constructed an industrial
plant(s) or contemplates the construction of an industrial plant(s);
and
WHEREAS, pursuant to its policy, City has enacted Ordinance No.
729, designating portions of the area located in its extraterritorial
jurisdiction as the "Battleground Industrial District of La Porte,
Texas," and Ordinance No. 842, designating portions of the area lo-
cated in its extraterritorial jurisdiction as the "Bayport Industrial
District of La Porte, Texas," hereinafter collectively called "Dis-
trict," such Ordinances being in compliance with the Municipal Annex-
ation Act of Texas, Article 970a, Vernons Annotated Revised Civil
Statutes of Texas; and
WHEREAS, City desires to encourage the expansion and growth of
industrial plants within said Districts and for such purpose desires
to enter into this Agreement with Company pursuant to Resolution
adopted by the City Council of said City and recorded in the official
minutes of said City:
NOW, THEREFORE, in consideration of the premises and the mutual
agreements of the parties contained herein and pursuant to the
authority granted under the Municipal Annexation Act and the Ordinances
of City referred to above, City and Company hereby agree with each
other as follows:
I.
Ci ty covenants, agrees and guarantees that during the term of
this Agreement, provided below, and subject to the terms and provisions
of this Agreement, said District shall continue and retain its
extraterritorial status as an industrial district, at least to the
extent that the same covers the land described above and belonging to
Company and its assigns, and unless and until the status of said
land, or a portion or portions thereof, as an industrial district may
be changed pursuant to the terms of this Agreement. Subject to
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Industrial District Agreement - 3
the foregoing and to the later provisions of this Agrement, City does
further covenant, agree and guarantee that such industrial district,
to the extent that it covers said land lying within said District and
not now within the corporate limits of City, or to be annexed under
the provisions of Article II hereof, shall be immune from annexation
by City during the term hereof (except as hereinafter provided) and
shall have no right to have extended to it any services by City, and
that all of said land, including that which has been heretofore or
which may be annexed pursuant to the later provisions 'of this
Agreement, shall not have extended to it by ordinance any rules and
regulations (a) governing plats and subdivisions of land, (b) prescri-
bing any building, electrical, plumbing or inspection code or codes,
or (c)
attempting to exercise in any manner whatever control over
the conduct of business thereon: provided, however, it is agreed
that City shall have the right to institute or intervene in any
judicial proceeding authorized by the Texas Water Code or the Texas
Clean Air Act to the same extent and to the same intent and effect as
if all land covered by this Agreement were located within the corporate
limits of City.
II.
A portion of the hereinabove described property has heretofore
been annexed by City. Company has filed with City, coincident with
the execution hereof, its petition to City to annex an additional
portion of the hereinabove described property, to the end that twenty-
five percent (25%) of the total value of the land and improvements
hereinabove described shall be annexed to City.
Company agrees to
render and pay full City ad valorem taxes on such annexed land and
improvements, and tangible personal property.
Under the terms of the Texas Property Tax Code (S.B. 621, Acts
of the 65th Texas Legislature, Regular Session, 1979, as amended),
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Industrial District Agreement - 4
the appraised value for tax purposes of the annexed portion of land,
improvements, and tangible personal property shall be determined by
the Harris County Appraisal District. The parties hereto recognize
that said District has no authority to appraise the land, improvements,
and tangible personal property in the unannexed area for the purpose
of computing the II in lieu II payments hereunder. Therefore, the parties
agree that the appraisal of the land, improvements, and tangible
personal property in the unannexed area shall be conducted by City,
at City's expense, by an independent appraiser of City's selection.
The parties recognize that in making such appraisal for II in lieu II
payment purposes, such appraiser must of necessity appraise the entire
(annexed and unannexed) land, improvements, and tangible personal
property. Company agrees to render and pay full City ad valorem
taxes on such annexed land, improvements, and tangible personal pro-
perty.
Company also agrees to render to City and pay an amount lIin lieu
of taxesll on company's land, improvements, and tangible personal
property in the unannexed area equal to the sum of:
(1) Fifty percent (50%) of the amount of ad valorem taxes which
would be payable to City if all of the hereinabove described
property which existed on January 1, 1986, had been within the
corporate limits of City and appraised each year by City's
independent appraiser: and
(2) Thirty percent (30% ) of the amount of ad valorem taxes which
would be payable to City on any increase in value of the
hereinabove described property, in excess of the appraised value
of same on January l, 1986, resulting from new construction and
new acquisitions of tangible personal property, (exclusive of
Construction in Progress, which shall be exempt from taxation),
if all of said new construction and acquisitions had been within
the corporate limits of City and appraised by City's independent
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Industrial District Agreement - 5
appraiser:
with the sum of (1) and (2) reduced by the amount of City's ad valorem
taxes on the annexed portion thereof as determined by appraisal by
the Harris County Appraisal District.
Nothing herein contained shall ever be construed as in derogation
of the authority of the Harris County Appraisal District to establish
the appraised value of land, improvements, and tangible personal
property in the annexed portion, for ad valorem tax purposes.
III.
This Agreement shall extend for a period beginning on the 1st
day of January, 1987, and continue thereafter until December 31, 1993,
unless extended for an additional period or periods of time upon
mutual consent of Company and City as provided by the Municipal
Annexation Act: provided, however, that in the event this Agreement
is not so extended for an additional period or periods of time On
or before August 31, 1993, the agreement of City not to annex property
of Company within the District shall terminate. In that event, City
shall have the right to commence immediate annexation proceedings as
to all of Company's property covered by this Agreement, notwithstanding
any of the terms and provisions of this agrement, and in such event
Company agrees that if the Texas Municipal Act, Article 970a (V.A.T.S.),
as amended after January 1, 1980, or any new legislation is thereafter
enacted by the Legislature of the State of Texas which imposes greater
restrictions on the right of City to annex land belonging to Company
or imposes further obligations on City in connection therewith after
the annexation of such land, Company will waive the right to require
City to comply with any such additional restrictions or obligations
and the rights of the parties shall be then determined in accordance
with the provisions of said Texas Municipal Annexation Act as the
same existed January 1, 1980.
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Industrial District Agreement - 6
IV.
This Agreement may be extended for an additional period or
periods by agreement between City and Company and/or its assigns even
though it is not extended by agreement between City and all of the
owners of all land within the District of which it is a part. In
this connection, City hereby expresses its belief that industrial
district agreements of the kind made herein are conducive to the
development of existing and future industry and are to ,the best
interest of all citizens of City and encourage future City Councils
to enter into future industrial district agreements and to extend for
additional periods permitted by law this Industrial District Agreement
upon request of Company or its assigns: provided, however, that
nothing herein contained shall be deemed to obligate either party
hereto to agree to an extension of this Agrement.
v.
Company agrees to pay all ad valorem taxes, and all .. in lieu
of taxes" payments hereunder, to City on or before December 31 of
each year during the term hereof. It is agreed that presently the
ratio of ad valorem tax assessment used by City is one hundred percent
(100%) of the fair market value of property. Any change in such
ratio used by City shall be reflected in any subsequent computations
hereunder. This Agreement shall be subject to all provisions of law
relating to determination of value of land, improvements, and tangible
personal property, for tax purposes (e.g., rendition, assessment,
Harris County Appraisal District review and appeal procedures, court
appeals, etc.) for purposes of fixing and determining the amount of
ad valorem tax payments, and the amount of "in lieu of tax" payments
hereunder, except as otherwise provided in Articles II and VI hereof.
VI.
(A) In the event Company elects to protest the valuation for
tax purposes set on its said properties by City or by the Harris
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Industrial District Agreement - 7
County Appraisal District for any year or years during the terms
hereof, nothing in this Agreement shall preclude such protest and
Company shall have the right to take all legal steps desired by it to
reduce the same.
Nothwithstanding such protest by Company, Company agrees to pay
to City on or before the date therefor hereinabove provided, at least
the total of (a) the total amount of ad valorem taxes on the annexed
portions, plus (b) the total amount of the "in lieu of taxes" on the
unannexed portions of Company's hereinabove-described property which
would be due by Company to City in accordance with the foregoing
provisions of this Agrement on the basis of renditions which shall be
filed by Company on or before March 31 of each year during the term
of this Agreement, with both the City and the Harris County Appraisal
District (as the case may be) for that year.
When the City or Harris County Appraisal District (as the case
may be) valuation on said property of Company has been so finally
determined, either as the result of final judgment of a court of
competent jurisdiction or as the result of other final conclusion of
the controversy, then wi thin thirty (30) days thereafter Company
shall make payment to City of any additional payment due hereunder
based on such final valuation, together with applicable penalties,
interests, and costs.
(B) Should Company disagree with any appraisal made by the
independent apppraiser selected by City pursuant to Article II above
(Which shall be given in writing to Company), Company shall, within
twenty (20) days of receiving such copy, give written notice to the
City of such disagreement. In the event Company does not give such
written notice of disagreement within such time period, the appraisal
made by said independent appraiser shall be final and controlling for
purposes of the determination of "in lieu of taxes" payments to be
made under this Agreement.
Should Company give such notice of disagreement, Company shall
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Industrial District Agreement - 8
also submit to the City with such notice a written statement setting
forth what Company believes to be the market value of Company' s
hereinabove described property. Both parties agree to thereupon
enter into good faith negotiations in an attempt to reach an agreement
as to the market value of Company' s property for "in lieu" purposes
hereunder. If, after the expiration of thirty (30) days from the
date the notice of disagreement was received by City, the parties
have not reached agreement as to such market value, the parties agree
to submit the dispute to final arbitration as provided in subparagraph
(1) of this Article VI(B). Notwithstanding any such disagreement by
Company, Company agrees to pay to City on or before December 31 of
each year during the term hereof, at least the total of (a) the ad
valorem taxes on the annexed portions, plus (b) the total amount of
the "in lieu" payments which would be due hereunder on the basis of
company's valuations rendered and/or submitted to City by Company
hereunder, or the total assessment and "in lieu of taxes" thereon
for the last preceding year, whichever is higher.
(1) A Board of Arbitrators shall be created composed of one
person named by Company, one by City, and a third to be named by
those two. In case of no agreement on this arbitrator in 10
days, the parties will join in a written request that the Chief
Judge of the U. s. District Court for the Southern District of
Texas appoint the third arbitrator who, (as the "Impartial
Arbitrator") shall preside over the arbitration proceeding. The
sole issue to be determined in the arbitration sha11 be reso1ution
of the difference between the parties as to the fair market
value of Company' s property for calculation of the "in lieu"
payment and total payment hereunder for the year in question.
The Board shall hear and consider all relevant and material
evidence On that issue including expert opinion, and shall
render its written decision as promptly as practicable. That
decision shall then be final and binding upon the parties,
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Industrial District Agreement - 9
subject only to judicial review as may be available under the
Texas General Arbitration Act (Articles 224-238, Vernon's Annot-
ated Revised Civil Statutes of Texas). Costs of the arbitration
shall be shared equally by the Company and the City, provided
that each party shall bear its own attorneys fees.
(C) Should the provisions of Article II of this Agreement
become impossible of enforcement because of (1) the invalidity or
unenforceability of the Texas Property Code (S.B. 621, Acts of the
65th Texas Legislature, Regular Session, 1979), or any relevant
provision thereof, or (2) because of any material delay or failure
to act on the part of the Harris County Appraisal District, then and
in any of such events, all payments under this Agreement shall be
governed by the provisions of Article II hereof; anything to the
contrary in this Agreement notwithstanding.
VII.
City shall be entitled to a tax lien on Company's above-described
property, all improvements thereon, and all tangible personal property
thereon, in the event of default in payment of "in lieu of taxes"
payments hereunder, which shall accrue penalty and interest in like
manner as delinquent taxes, and which shall be collectible by City in
the same manner as provided by law for delinquent taxes.
VIII.
Company agrees to provide to City at Company's expense, a survey
plat and field note description of the land and improvements which
Company petitions to be annexed in accordance with the provisions of
Article II above. Such annexation tract shall be contiguous to a
point on the existing corporate limits of La Porte. In the event of
failure of Company to file either such petition, or such description,
City shall have the right by notice in writing to Company to cancel
and terminate this Agreement.
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Industrial District Agreement - 10
IX.
This Agreement shall inure to the benefit of and be binding
upon City and Company, and upon company's successors and assigns,
affiliates and subsidiaries, and shall remain in force whether Company
sells, assigns, or in any other manner disposes of, either voluntarily
or by operation of law, all or any part of the property belonging to
it within the territory hereinabove described, and the agreements
herein contained shall be held to be covenants running with the land
owned by Company situated within said territory, for so long as this
Agreement or any extension thereof remains in force.
x.
If City enters into an Agreement with any other landowner with
respect to an industrial district or enters into a renewal of any
existing industrial district agreements after the effective date
hereof and while this Agreement is in effect, which contains terms
and provisions more favorable to the landowner than those in this
Agreement, Company and its assigns shall have the right to amend
this Agreement and City agrees to amend same to embrace the more
favorable terms of such agreement or renewal agreement: provided,
however, City reserves the right to enter into such agreements or
renewal agreements with other landowners not covered by existing
agreements, containing a percentage of ad valorem taxes more favorable
to the landowner than that contained in Paragraph II, Subparagraph 3
(2) hereof, and Company and its assigns shall not have the right to
amend this agreement to embrace the more favorable percentage of ad
valorem taxes contained in such agreement or renewal thereof, than
that contained in Paragraph II, Subparagraph 3 (2) hereof. City may
extend more favorable terms to landowners covered by existing contracts
only to the extent such favorable terms apply to any increase in
value of the hereinabove described property, in excess of the appraised
value of same on January 1, 1986, as described in Paragraph II, Sub-
paragraph 3 (2) hereof.
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Industrial Oistrict Agreement - 11
XI.
In the event anyone or more words, phrases, clauses, sentences,
paragraphs, sections, articles or other parts of this Agreement or
the applicaton thereof to any person, firm, corporation or circum-
stances shall be held by any court of competent jurisdiction to be
invalid or unconstitutional for any reason, then the application,
invalidity or unconstitutionality of such words, phrase, clause,
sentence, paragraph, section, article or other part of the Agreement
shall be deemed to be independent of and separable from the remainder
of this Agreement and the validity of the remaining partes of this
Agreement shall not be affected thereby.
XII.
Upon the commencement of the term of this Agreement, all other
previously existing industrial district agreements with respect to
said land shall terminate.
ENTERED INTO this 1st day of June, 1986.
ARCO Chemical Company
(COMPANY)
~
BY
h.R. ~
Name:
D. R. Mathera
r,O. \\ ,l<;th () r
Title:
Plant Manager
Address:
10801 Choate Road
Pasadena, TX
77507
APPROVED BY COUNSEL:
~sctlJ f
Telephone:
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Industrial District Agreement - l2
ATTEST:
(I~ ,ttd-
Cherie Black, City Secretary
m~:;.u~
KNOX W. ASKINS, City Attorney
702 W. Fairmont Parkway
P. O. Box l2l8
La Porte, Texas 77571
Telephone: (7l3) 471-1886
(Revised: 03/87)
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CITY OF LA PORTE
By: ?bn~ if-1J1-J~ ~
~o man Malone, Mayor
By: 6Z~ T. ~
Robert T. Herrera, City Manager
CITY OF LA PORTE
P. O. Box Ill5
La Porte, Texas 7757l
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EXHIBIT -A-
Page 1 of 2
TO AN INDUSTRIAL DISTRICT AGREEMENT BETWEEN THE CITY OF LA PORTE,
TEXAS, AND ARCO CHEMICAL COMPANY.
l. City and Company agree that the real property of Company, more
particularly described on Page 1 of this Industrial District
Agreement, is presently unimproved, and unannexed to City, except
for existing ftstripft annexations, if any. City and Company further
agree that paragraph II hereof is hereby amended, to provide that
during the term of this Industrial District Agreement, and for such
periOd of time that said real property remains unimproved, that City
will not annex said property~ provided, however, City reserves the
right to conduct "strip" annexations as my be required by law in
connection with annexation of land other than that owned by Company.
Company agrees to render to City and to pay as ftin lieu of taxesft on
Company's said unimproved land, an amount equal to the sum of 100%
of the amount of ad valorem taxes which would be payable to City if
all the hereinabove described property of Company had been within
the corporate limits of City and appraised each year by City's
independent appraiser.
2. The provisions of the preceding paragraph hereof shall remain in
full force and effect during the term of this Industrial District
Agreement~ provided, however, at such time as Company commences
improvements to Company's hereinabove described real property,
Company shall be entitled to pay an amount ftin lieu of taxesft on
Company's land, improvements, and tangible personal property on the
above described property, in accordance with Paragraph II of this
Industrial District Agreement.
3. Company agrees that the real property of Company herein
described shall not be used as a site for commercial hazardous waste
incineration, i.e., incineration of hazardous wastes generated off-
site~ provided, however, City does not waive its rights reserved
under Paragraph 1 of this agreement.
4. Except as amended by the terms and prov1s10ns of this Exhibit
ftAft, the terms and provisions of the Industrial District Agreement,
to which this Exhibit ftAft is attached, shall remain in full force
and effect for the term of this Agreement, expiring December 31,
1993.
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~~i~'~.~.,~~ ~~~~~
~~ ....." .," ,o\!.EN,TERED INTO
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_~ e.tfgec€i:Ve:~date of
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this day of February, 1991, retroactive to
January 1, 1991.
~~,
VV',..-.~
BY:
ARCO Chemical Company
(COMPANY)
IS. te. ~
cretary
N me: ~~ ~ S.r; ~ /~t,Lf
Name:
D. R. Mathera
Title:
Plant Manager
Address:
10801 Choate Road
Pasadena, TX 77507
Address:
Telephone:
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ATTEST:
~~
Cherie Black
City Secretary
AP~OUNSEL.
Mw. Askins
City Attorney
702 W. Fairmont Parkway
P.O. Box l21B
La porte, TX 77572-la18
Telephone: (713) 471-1886
EXHIBIT -A"
Page 2 of 2
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CITY OF LA PORTE
BY:~~~'h(
rman Ma one
Mayor
BY: 6{J..wJt T~ ~
Robert T. Herrera
City Manager
CITY OF LA PORTE
P.O. Box 1115
La porte, TX 77572-1115
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METES AND BOUNDS DESCRIPTION
23.8225 ACRES (1,037,707 SQUARE FEET>
PART OF THE ARCO CHEMICAL COMPANY 100 ACRE TRACT
WITHIN THE LA PORTE INDUSTRIAL DISTRICT
Being 23.8225 acres (1,037,707 square feet> of land situated in
the Gp.orge B. Mc)~instry League, Abstract 47, Harris County,
Tp.x~sr and bein9 out of that ~ertain 100.0000 acre tract of land
~onvp.yp.d to ARCO Chemical Company by instrument recorded under
File Number M728181 and Film Code 182-70-1786 of the Harris
County Official Public Records of Real Property; said 23.8225
~cres (1,037,707 square feet> of land being more particularly
dp.scribed by metes and bounds as follows:
BEGINNING at a 5/8 inch iron rod found for the northwest corner
of said 100.0000 acre tract, same being the northwest corner of
the herein described' tract of land, and being in the east
right-of-way line of Bay Area Boulevard, based on 150 feet in
width;
THENCE N 87-26-12 E 2286.50 feet to a 5/8 inch iron rod found for
th~ northeast corner of said 100.0000 acre tract, same being the
northeast corner of this tract, and being in the west line of a
Harris County Flood Control District Fee Strip, called Ditch "C",
Tract 2, recorded undp.r File Number D239800 and Film Code
123-38-0888 'of the Harris County Official Public Records of Real
Property; ,
THENCE S 10-08-23 E 450.79 feet, with the east line of said
100.0000 acre tract, same being the west line of said Ditch "C",
Tract 2, to a 5/8 inch iron rod set ~or the southeaat corner of
this tract;
THENCE 5 87-26-12 W 2358.03 feet to a S/8 inch iron rod !ound for
the southwest corner of this tract and being in the west line of
said 100.0000 acre tract, same being the east right-of-way line
of said Bay Area Boulevard:
THENCE N 01-00-45 W 447.02 feet to the PLACE OF BEGINNING and
containing 23.8225 acres (1,037,707 square feet> of land.
Peter L. Willms
Registered Professional Land Surveyor
Texas Registration No. 1742
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Texas Land Surveying Company
P.O. Box 5825 Pasadena, Texas 77508
Job No. 0108-004C-1 October 8, 1990
EXHIBIT "B"
Page 1 of 2
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