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HomeMy WebLinkAbout2000-IDA-43 ORDINANCE NO. 2000-IDA-43 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH LINDE GAS INC., FOR THE TERM COMMENCING JANUARY 1, 2001, AND ENDING DECEMBER 31, 2007; MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT; FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW; AND PROVIDING AN EFFECTIVE DATE HEREOF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section 1. LINDE GAS INC. has executed an industrial district agreement with the City of La Porte, for the term commencing January 1, 2001, and ending December 31, 2007, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. section 2. The Mayor, the City Manager, the City Secretary, and the City Attorney of the City of La Porte, be, and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, the industrial district agreement with the corporation named in section 1 hereof. 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, 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. section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. PASSED AND APPROVED, this 13th day of November, 2000. CITY OF LA PORTE By: ~~~ Mayor ATTEST: 'i)j!lif,~ d. Mill Ma tha A. Gillett City Secretary Knox City 2 _."~--_.~_._-_._.~_..__._---""""'.---~..~_.. SEP-28-2000 THU 04:16 PM FAX NO. P, 02 I NO. 2000-IDA---1l... { { STATE OF TEXAS { { COUNTY OF HARRI S { INDUSTRIAL DIB~RICT 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 "CITYII, and LINDE GAS INC. , a DELAWARE corporation, hereinafter called "COMPANY", WIT N E SSE T H: 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 ti~e 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 location 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, 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. 842A, designating portions of the area located in its extraterritorial jurisdiction as the "Bayport Industrial District of La Porte, Texas", hereinafter collectively called "District", such Ordinances being in compliance with the Municipal Annexation Act of Texas, codified as section 42.044, Texas Local Government Codej and WHEREAS, Company is the owner of land within a designated Industrial District of the City of La Porte, said land being legally described on the attached Exhibit "A" (hereinafter flLand") ; and said Land being more particularly shown on a plat attached as Exhibit "B", which plat describes the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the city of La Porte; 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 Ordinance 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: FINAL DRAFT: February 24, 2000 SEP 28 '00 16:36 PAGE. 02 I. city 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 to retain its extraterritorial status as an industrial district, at least to the extent that the same covers the Land belonging to Company and its assigns, 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 the foregoing and to the later provisions of this Agreement, 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, 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 Land, including that which has been heretofore annexed, shall not have extended to it by ordinance any rules and regulations (a) governing plats and subdivisions of land, (b) prescribing 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, any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146, shall be subject to the rules and regulations attached hereto as Exhibit "c" and made a part hereof; and provided, however, it is agreed that City shall have the right to institute or intervene in any administrative and/or judicial proceeding authorized by the Texas Water Code, the Texas Clean Air Act, the Texas Health & Safety Code, or other federal or state environmental laws, rules or regulations, to the same extent and to the same intent and effect as if all Land covered by this Agreement were not subject to the Agreement. II. In the event that any portion of the Land has heretofore been annexed by 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), 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 Appraisal District has no authority to appraise the Land, improvements, and tangible personal property in the un annexed area for the purpose of computing the "in lieu" 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 "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 2 Nothing herein contained shall ever be interpreted as lessening 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. A. On or before April 15, 2001, and on or before each April 15th thereafter, unless an extension is granted in accordance with the Texas Property Tax Code, through and including April 15, 2007, Company shall provide City with a written description of its Land and all improvements and tangible personal property located on the Land as of the immediately preceding January 1st, stating its opinion of the Property's market value, and being sworn to by an authorized officer of the Company authorized to do so, or Company's duly authorized agent, (the company's "Rendition"). Company may file such Rendition on a Harris County Appraisal District rendition form, or similar form. The properties. which the Company must render and upon which the "in lieu of" taxes are assessed are more fully described in subsections 1, 2, and 3 of subsection D, of this Paragraph III ( sometimes collectively called the "Property"); provided, however, pollution control equipment installed on the Land which is exempt from ad valorem taxation pursuant to the provisions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu of taxes" hereunder. A failure by Company to file a Rendition as provided for in this paragraph, shall constitute a waiver by Company for the current tax year, of all rights of protest and appeal under the terms of this Agreement. B. As part of its rendition, Company shall furnish to City a written report of the names and addresses of all persons and entities who store any tangible personal property on the Land by bailment, lease, consignment, or other arrangement with Company ("products in storage"), and are in the possession or under the management of Company on January 1st of each Value Year, further giving a description of such products in storage. C. On or before the later of December 31, 2001, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2007, Company shall pay to City an amount "in lieu of taxes" on company's Property as of January 1st of the current calendar year ("Value Year"). D. Company agrees to render to city and pay an amount "in lieu of taxes" on Company's Land, improvements and tangible personal property in the unannexed area equal to the sum of: 1. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City if all of the company's Land and improvements which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts payable pursuant to subparagraph 2, below), had been within the corporate limits of City and appraised 3 each year by city's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code; and 2. (a) On any Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) dedicated to new construction, in excess of the appraised value of same on January 1, 2000, resulting from new construction (exclusive of construction in progress, which shall be exempt from taxation), for each Value Year following completion of construction in progress, an amount equal to Thirty percent (30%) of the amount of ad valorem taxes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. (b) A Substantial Increase in value of the Land, improvements, and tangible personal property (excluding inventory) as used in subparagraph 2(a) above, is defined as an increase in value that is the lesser of either: i. at least Five percent (5%) of the total appraised value of Land and improvements, on January 1, 2000; or ii. a cumulative value of at least $3,500,000.00. For the purposes of this Agreement, multiple projects that are completed in a Value Year can be cumulated to arrive at the amount for the increase in value. (c) If existing Property values have depreciated below the Property value established on January 1, 2000, an amount equal to the amount of the depreciation will be removed from the calculation under this subparagraph 2 to restore the value to the January 1, 2000, value; and 3. Fifty-three percent (53%) of the amount of ad valorem taxes which would be payable to City on all of the Company's tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, oil, gas, and mineral interests, items of leased equipment, railroads, pipelines, and products in storage located on the Land, if all of said tangible personal property which existed on January 1, 2001, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, had been within the corporate limits of City and appraised each year by the City's independent appraiser, 4 in accordance with the applicable provisions of the Texas Property Tax Code. wi th the sum of 1, 2 and 3 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. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2001, and continuing thereafter until December 31, 2007, 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, 2007, 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 Agreement. Company agrees that if the Texas Municipal Act, section 42.044, Texas Local Government Code, is amended after January 1, 1994, 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, 1994. V. 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. 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 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. Notwithstanding 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 to City in accordance with the 5 foregoing provisions of this Agreement on the basis of renditions which shall be filed by Company. 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 within 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 wi th any appraisal made by the independent appraiser 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 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 shall be resolution 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 6 expert oplnlon, and shall render its written decision as promptly as practicable. That decision shall then be final and binding upon the parties, subj ect only to judicial review as may be available under the Texas General Arbitration Act (Chapter 171, "General Arbitration", Texas civil Practice and Remedies Code). Costs of the arbitration shall be shared equally by the Company and the city, provided that each party shall bear its own attorneys fees. 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. This Agreement shall inure to the benefit of and be binding upon ci ty 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. Company shall give City written notice within ninety (90) days, with full particulars as to property assigned and identity of assignee, of any disposition of the Land, and assignment of this Agreement. IX. 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. X. The parties agree that this Agreement complies with existing laws pertaining to the subject and that all terms, considerations and conditions set forth herein are lawful, reasonable, appropriate, and not unduly restrictive of Company's business activities. without such agreement neither party hereto would enter into this Agreement. In the'event anyone or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application thereof to any person, firm, 7 corporation or circumstances 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 parts of this Agreement shall not be affected thereby. XI. 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 effective the 1st day of January, 2001. Lin de c)M 'YNC By: (COMPANY) ~~ Namer . H. 73 u IZ,'-'..e/~ Title: V, p. () f~ATr(/;vJ Address: II c.D 3 STrf+tJ9 rLd LJL {J~1 ,,-h ,. Tx 1757 (- q 7'17 CITY OF LA PORTE By: ~./'~~~ / rman:C. Malone ----- Mayor ATTEST:. ~ ' ~a , 'l/JLl ci Secretary By: QlJ~ T. \{~ Robert T. Herrera City Manager Knox W. Askins City Attorney city of La Porte P.O. Box 1218 La Porte, TX 77572-1218 CITY OF LA PORTE P.O. Box 1115 La Porte, TX 77572-1115 Phone: (281) 471-1886 Fax: (281) 471-2047 8 SEP-28-2000 THU 04:16 PM FAX NO. P. 04 "EXHIBIT A" (Metes and Bounds Description of Land) SEP 28 '00 16:36 PAGE. 04 EXHIBIT A LEGAL DESCRIPTION OF THE L~ Legal Description of Parcell 28.6903 acres SEE ATTACHED ( L HOU03:144138.7 PARCEL 1 FIELD NOTES of a 28.6903 acre tract of land situated in the Enoch Brinson Survey, Abstract S, Harris County, Texas and being out of and a part of that certain 23.2845 acre tract conveyed by Syngas Company to National Distillers & Chemical Corporation by deed dated December 31, 1986, and recorded in County Clerk's File No. K.905990 of the Official Public Records of Real Property, Harris County, Texas; out of and a part of that certain 20.9426 acre tract called Parcel No. 2 described in deed from E. I. DuPont De Nemours & Company to National Distillers & Chemical . COIporation dated December 31, 1986, and recorded in County Clerk's File No. K905991 of the Official Public Records of Real Property, Hams County, Texas; out of and a part of Lots 1,2 and 3 of the A O. Blackwell Subdivision according to the map of record in Volume 83 at Page 343 of the Deed Records ofHanis County, Texas; and out of and a part of Lots 48, 49 and 50 of the Strang Subdivision according to the map of record in.volume 75 at Page 22 oftheDef'4 Records of Harris County, Texas. This 28.6903 acre tract of land is more particularly described by the following metes and bounds, to-wit: NOTE: ALL BEARINGS AND COORDINATES REFER TO THE QUANTUM PLANT COORDINATES AND BEARINGS. REFERENCE IS MADE TO PLAT OF EVEN DATE ACCOMPANYING TInS METES AND BOUNDS DESCRIPTION. ( , BEGINNING at a 1 inch iron rod found in concrete for the Westernmost Northwest comer of the . heretofore mentioned 23.2845 acre tract and the East line of that certain 10.43 acre tract conveyed by National Distillers & Chemical Corporation to Coastal Industrial Water Authority by deed dated October 29, 1976, and recorded in County Clerk's File No. F014216 of the Official Public Records of Real Property, Harris County, Texas, at the Southwest comer of that certain 32.6510 acre tract ofland conveyed by Millennium Petrochemicals, Inc. to Equistar Chemicals, L.P. by deed recorded in County Clerk's File No. S933609 of the Official Public Records of Real Property, Harris County, Texas. Said 1 inch iron rod being the Westernmost Northwest comer and POINT OF BEGINNING of said 28.6903 acres herein described. From this BEGINNING comer a 1 inch iron rod found in concrete at the intersection of the North right-of-way line of Strang Road (60 feet wide right-of-way) and the East right-of-way line of Miller Cut-Off Road (60 feetwide right-of-way) bears South 53 deg. 53 min. 10 sec. West a distance of 3146.92 feet. This BEGINNING comer has a Quantum Coordinate Value of South 910.06 and East 4544.37. THENCE: North 41 deg. 26 min. 22 sec. East along the West line of said 28.6903 acres herein described (same being the West line of said 23.2845 acres and the South.line of said 32.6510 acres) for a distance of 680.71 feet to a 1/2 inch iron rod found for the Northernmost Northwest comer of this tract, the Northernmost Northwest comer of said 23.2845 acres and an angle point in the South line of said 32.6510 acres. ( '- 80003: 1 489n.2 PAGE 2 - 28.6903 ACRES. THENCE: South 89 deg. 59 min. 25 sec. East along the North line of said 28.6903 acres herein described (same being the North line of said 23.2845 acres and the South line of said 32.6510 acres) for a distance of 450.77 feet to a point in the East line of said Lot 3 of said Blackwell Subdivision at the shore line of San Jacinto Bay for the Northeast comer of said 28.6903 acres herein described; the Southeast comer of said 32.6510 acres and the Northeast comer of said 23.2845 acres. lHENCE: Along and with the meanders of the shore line of said San Jacinto Bay (same being the East line of said 23.2845 acres, the East line of said 28.6903 acres herein described and the East line of Lots 3 and 2 of said Blackwell Subdivision) the following courses and distances: South 14 deg. 22 min. 22 sec. East - 25.05 feet South 30 deg. 46 min. 36 sec. East - 144.18 feet North 86 deg. 59 min. 29 sec. East - 33.88 feet South 44 deg. 44 min, 06 sec. East - 61.43 feet. South 22 deg. 58 min. 50 sec. East - 20.64 feet. South 41 deg. 23 min. 39 sec. West - 22.89 feet. South 48 deg. 31 min. 53 sec. East - 9.69 feet. North 47 deg. 11 min. 13 sec. East - 10.99 feet. South 32 deg. 29 min. 48 sec. East - 188.08 feet. ( lHENCE: Along and with the meanders of the shore line of said San Jacinto Bay (same being the East line of said 23.2845 acres, the East line of said 28.6903 acres herein described and the East line of said Lot 2 of said Blackwell Subdivision) South 46 deg. 20 min. 09 sec. East a distance of 24.1 0 feet to a point for an exterior comer of said 28.6903 acres herein described and the Northernmost comer of that certain 12.1206 acre tract surveyed this date. lHENCE: South 40 deg. 37 min. 28 sec. West along an interior line of said 28.6903 acres herein described (same being the Northernmost West line of said 12.1206 acres surveyed this date) and at 78.90 feet pass a 1/2 inch iron rod set for reference, and at a total distance of 132.58 feet set a 1/2 inch iron rod for an interior comer of said 28.6903 acres herein described; same being an exterior Northwest comer of said 12.1206 acres surveyed this date. THENCE: South 46 deg. 51 min. 43 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 79.85 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: North 85 deg. 48 min. 16 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 27.97 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein descn"bed and an interior comer of said 12.1206 acres surveyed this date. c. HOU03:14I977.2 PAGE 3 - 28.6903 ACRES. THENCE: South 45 deg. 33 min. 16 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 253.68 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 05 deg. 34 min. 29 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 60.12 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein descnDe<i and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 40 deg. 53 min. 56 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 159.81 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described alld an interior comer of said 12.1206 acres surveyed this date. THENCE: North 49 deg. 21 min. 00 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 64.04 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein descnoed and an exterior comer of said 12.1206 acres Surveyed this date. ( THENCE: South 43 deg. 15 min. 47 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 93.31 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein descnDed and an interior comer of said 12.1206 acres surveyed this date. THENCE: North 48 deg. 53 min. 14 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 193.93 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein descnDe<i and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 41 deg. 42 min. 31 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 344.09 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein descnDe<i and the Westernmost exterior comer of said 12.1206 acres surveyed this date. THENCE: South 48 deg. 03 min. 53 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 117.35 feet to a point for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. l_ 80003:148977.2 PAGE 4 - 28.6903 ACRES. THENCE: South 42 deg. 43 min. 57 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 23.03 feet to a point for an interior comer of said 28.6903 acres herein described and an exterior comer of said 12.1206 acres surveyed this date. THENCE: South 47 deg. 57 min. 24 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) "for a distance of 72.93 feet to a point for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 41 deg. 27 min. 06 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 12.98 feet to a point for an interior comer of said 28.6903 acres herein described and an exterior comer of said 12.1206 acres surveyed this date. THENCE: South 47 deg. 24 min. 52 sec. East along an interior line of said 28.6903 acres herein described (same being an exterior line of said 12.1206 acres surveyed this date) for a distance of 72.93 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein described and an exterior comer of said 12.1206 acres surveyed this date. ( THENCE: North 41 deg. 26 min. 18 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 226.13 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. THENCE: South 48 deg. 42 min. 03 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 12.1206 acres surveyed this date) for a distance of 617.93 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 12.1206 acres surveyed this date. This comer is in the West or Northwest line of 14.4060 acres surveyed this date. THENCE: South 41 deg. 23 min. 52 sec. West along the East or Southeast line of said 28.6903 acres herein described (same being the West or Northwest line of said 14.4060 acres surveyed this date) for a distance of 17.43 feet to a fence comer post for an interior comer of said 28.6903 acres herein described; same being an exterior comer of said 14.4060 acres surveyed this date. THENCE: South 48 deg. 51 min. 09 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 16.38 feet to a fence comer post for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. l HOU03: 148977.2 '. PAGE 5 - 28.6903 ACRES. THENCE: South 41 deg. 12 min. 20 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 67.37 feet to a fence comer post for the Southernmost comer of said 28.6903 acres herein described. and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 49 deg. 18 min. 43 sec. West along an exterior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of. 227.23 feet to a fence comer post for an angle point in said line. THENCE: North 85 deg. 30 min. 55 sec. West along an exterior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 20.44 feet to a fence comer post for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 49 deg. 52 min. 55 sec. West along an exterior line of said 28.6903 acres herein. described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 107.17 feet to an 80 penny nail set for an interior comer of said 28.6903 acres herein described and an exterior comer of said 14.4060 acres s}lIVeyed this date. ( THENCE: South 41 deg. 5frmin. 12 sec. West along an exterior line of said 28.6903 acres herein described and an exterior line of said 14.4060 acre tract surveyed this date and at 115.21 feet pass a 1/2 inch iron rod set for reference and at a total distance of 168.26 feet a point for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 48 deg. 09 min. 48 sec. West along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 54.84 feet to a 1/2 inch iron rod set for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. THENCE: North 40 deg. 43 min. 24 sec. East along an exterior line of said 28.6903 acres herein described (same being an interior line of said 14.4060 acres surveyed this date) for a distance of 26.63 feet to an "x" in concrete for an interior comer of said 28.6903 acres herein described and an exterior comer of said 14.4060 acres surveyed this date. THENCE: North 48 deg. 44 min. 26 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 62.17 feet to a 1/2 inch iron rod set for an interior comer of said 28.6903 acres herein described and an exterior comer of said 14.4060 acres surveyed this date. ( H0U03:I489n.2 "-- - PAGE 6 - 28.6903 ACRES. ".. -" .-~ THENCE: South 41 deg. 43 min. 58 sec. West along an interior line of said 28.6903 acres herein described (same being an exterior line of said 14.4060 acres surveyed this date) for a distance of 99.07 feet to a P.K. Nail set for an interior comer of said 28.6903 acres herein described (same being an exterior comer of said 14.4060 acres surveyed this date). THENCE: South 48 deg. 03 min. 56 sec. East along an interior line of said 28.6903 acres berem described (same being an exterior line of said 14.4060 acres SUIveyed this date) for a distance of 21.56 feet to an "x" in concrete for an exterior comer of said 28.6903 acres herein described and an interior comer of said 14.4060 acres surveyed this date. lHENCE: South 38 deg. 58 min. 27 sec. West along an exterior 1in~ of said 28.6903 acres berein described (same being an interior line of said 14.4060 acres smveyed thisdRte) for a distance of 114.92 feet to a 1/2 inch iron rod set for the Southernmost Southeast comer of said 28.6903 acres herein described and the Northwest comer of said 14.4060 acres surveyed this date in the Northeast line of that certain 0.776 of an acre of land conveyed to Humble Oil & Refining Company by Herbert W. Grainger, et al, in deed dated June 4, 1954, and recorded in Volume 2796 at Page 192 of the Deed Records of Harris County, Texas. ( lHENCE: North 48 deg. 26 min. 10 sec. West along the South or Southwest line of said 28.6903 acres herein described (same being the North or Northeast line of said 0.776 of an acre tract, the South or Southwest line of said 20.9426 acres and the South or Southwest line of said 23.2845 acres) for a distance of 509.23 feet to a 1/2 inch iron rod found in the West line of said Lot 49 and the East line of said Lot 48 of said Strang Subdivision at the Northwest comer of said 0.776 of an acre ofland and the Northeast comer of that certain 0.727 of an acre tract ofland called Tract 2 and conveyed to Humble Oil & Refining Company by Carl C. Patrick in deed dated June 2, 1954, and recorded in Volume 2796 at Page 260 of the Deed Records of Harris County, Texas; for an angle point in said line. THENCE: North 48 deg. 42 min. 10 sec. West along the South or Southwest line of said 28.6903 acres herein described (same being the North or Northeast line of said 0.7?-7 of an acre and the South or Southwest line of said 23.2845 acres) for a distance of730.00 feet to a 1/2 inch iron rod found in the East line of the heretofore mentioned 10.43 acre tract for the Westernmost Southwest comer of said 28.6903 acres herein described, the Northwest comer of said 0.727 of an acre tract and the Westernmost Southwest comer of said 23.2845 acres. THENCE: North 00 deg. 06 min. 24 sec. West along West line of said 28.6903 acres herein described (same being the West line of said 23.2845 acres and the East line of said 10.43 aaes) for a distance of240.18 feet to the pLACE OF BEGINNING and containing within these boUDdaries 28.6903 acres ofland. SURVEYED: October, November, December, 1998, and January A.D. 1999. l_ HOOO3:1489n.2 Syngas Land (Lease) EXHIBIT B Permitted Encumbrum 1. Standby fees, taxes and assessments by any taxing authority for the year 1999 and subsequent years not yet due and payable, and subsequent taxes and assessments by any taxing authority for prior years due to change in land usage or ownership. 2. Any titles or rights asserted by anyone, including, but not limited to, persons, the public, corporations, governments or other entities: (a) To tidelands or land comprising the shores or beds of navigable or perennial rivers and streams, lakes, bays, gulfs, or oceans, or (b) To lands beyond the line of the harbor or bulkhead lines as established or changed by any government, or (c) To filled-in-Iands Or artificial islands, or ( . (d) To statutory water rights, including riparian rights, or (e) To the area extending from the line of mean low tide to the line of vegetation, or the rights of access to that area or easement along and across the area. 3. Subject to any portion of the herein described property lying within the boundaries of San Jacinto Bay. 4. Right-of-way for pipeline over Lots 10 and 48 of Strang Subdivision as evidenced by instrument from Lois Cotton Blaydes and husband, Ralph H. Blaydes, to Texas Eastern Transmission Corporation, recorded in Volume 2508, Page 217, of the Deed Records of Harris County, Texas, as amended by instrument dated April 17, 1974, between Selected Land Corporation and Texas Eastern Transmission Corporation, recorded'in the office of the County Clerk of Harris County, Texas under Clerk's File Number E194171. 5. Terms, conditions and stipulations contained in Right-of-Way and Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number K838717. ~ HOU03:144138.7 B:l:: 6. Easements for the construction, use, operation, repair, replacement and removal of pipelines recorded in Deed recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number K905991. 7. Terms, conditions and stipulations contained in Right-of-Way and Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number M882660. 8. Terms, conditions and stipulations contained in Easement recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number M926132. 9. Road easementS described in Easement Agreement recorded under Harris County Clerk's File Number S933613. 1 O. ~ royalty interest in and to all oil, gas and other minerals, on, in, under, that may be produced from the property is excepted herefrom as set forth in instrument recorded in Volume 3218, Page 45 of the Deed Records of Harris County, Texas. 11. 1/16 royalty interest in and to all oil, gas and other minerals, on, in, under, that may be produced from the property is excepted herefrom as set forth in instrument recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number E679845. ( 12. All of the oil, gas and other minerals and all other elements not considered a part of the surface estate are excepted herefrom, all having been reserved in instrument recorded in the Office of the County Clerk of Harris County, Texas under Clerk's File Number C632918 (surface rights waived as set forth therein). 13. Terms and conditions of that certain Industrial District Agreement dated effective January 1, 1994 by and between the City of LaPorte, Texas and Quantum Chemical Corporation. 14. Rights ofEquistar Chemicals, LP in and to the property as described in the following agreements dated as of December 1, 1997 by and between Millennium Petrochemicals Inc. and Equistar Chemicals, LP for the existing remaining terms thereof: (a) Shared Services Agreement for Water and Utility Instrument Air; (b) Shared Services Agreement for the LaPorte Complex; (c) Sales and Supply Services Agreement (Natural Gas); (d) Fuel Stream Agreement; and ( e) Electricity Service Agreement. 15. Rights of third parties in and to all presently existing pipelines, pipe racks, drainage ditches, culverts, power lines, conduit, cable trays, and roads. "-. HOU03:144138.7 ~ 16. Encroachments and protrusions, if any, of existing (i) pipelines, pipe racks and pipes; (ii) fences; (iii) roads; (iv) sidewalks; (v) landscaping; (vi) drainage ditches, grates and culverts; (vii) power and light poles and lines; (viii) conduit and cable trays; (ix) concrete pavement; and (x) curbs or headwalls into adjoining properties. 17. The Put Option Agreement. 18. Existing easements, easements to be granted to third parties and/or easements to be reserved in favor of Landlord (as applicable) on, over, across or under the Land as described in and in accordance with, the revised Appendix 1. 1 (a) to the Asset Purchase Agreement and Appendix 2.1(a) to that certain Contribution and Sale Agreement dated November 13, 1998 (the "Methanol Contribution AiP"eement") by and among Landlord, Tenant, Millennium Methanol GP Inc., Millennium Methanol LP Inc., Millennium Chemicals Inc., LAG Methanol Corporation, Linde AG and LaPorte Methanol Company, L.P. 19. Any easements or other rights of LaPorte Methanol Company, L.P. in and to the Leased Premises for the purpose of providing electrical service to the facilities described in the Methanol Contribution Agreement. ( I " HOoo3:144138.7 B:J: SEP-28-2000 THU 04:16 PM FAX NO, "EXHIBlT B" (Attach Plat reflecting the ownership boundary lines; a site layout, showing all improvements, including pipelines and railroads, and also showing areas of the Land previously annexed by the city of La Porte.) SEP 28 '00 16:36 p, 05 PRGE.05 "EXHIBIT e" paqe 1 of 2 RULES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be subject to the following rules and regulations pertaining to new signage, screening, driveways and median crossovers. These rules and regulations shall apply after the effective date of this Agreement when Company develops or constructs improvements on vacant Land described in Exhibit" A" which is adjacent to Fairmont Parkway, state Highway 225, or state Highway 146. 1. Any sign erected in said 100' strip of land shall be subject to the following provisions: . One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. . Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. . One freestanding identification sign for identifying multiple businesses is allowable at the intersection of improved public rights-of-way. . Freestanding identification signs for multiple businesses shall not exceed 350 square feet. . Freestanding identification signs shall not exceed 45 feet in height. . Minimum setback for sign construction shall be ten (10) feet from property lines. 2. When Land adjacent to said 100' strip is developed, the initial 50' of said strip beyond any existing pipeline easement contiguous to either Fairmont Parkway, state Highway 225, or state Highway 146 shall be screened by one of the following techniques: a) Leaving in place existing trees, vegetation, underbrush, etc. to provide a thorough and effective visual screening of the development. Existing trees shall, together with other vegetation and underbrush, create a continuous visual screen. b) The use of earthen berms with approximately 3: 1 side slopes, 50' wide at the base and 8' high. The berms may be landscaped with a combination of trees, shrubs, and ground cover. All berms and landscaping will be maintained by the property owners. "EXHIBIT e" Page 2 of 2 c) A screening plan, to be approved by the City, that includes a combination of trees, shrubs, and ground cover that after 5 years growth will be at least 20 feet in height and shall, together with shrubs and ground cover, create a continuous visual screen. Provided, however, in public utility easements or rights-of-way, the vegetation shall be installed and maintained in a manner which is acceptable to the public utility company, and does not interfere wi th the operation and maintenance of the public utility facilities. For items band c above, the actual length of required screening along the roadway will be equal to the length of the new development that is parallel to the roadway. screening shall not be required for new development that is to the rear of or behind existing facilities. In all cases the 50' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free from any improvements except for approved driveway access and identification signs. For cases of new development or improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitable landscaping alternative. 3. Driveways opening from said strip of land onto state Highway 225 or state Highway 146 shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the city's Code of Ordinances, whichever is more restrictive. Dr i veways opening from said str ip of land onto Fairmont Parkway shall be subject to the rules and regulations of Harris County and provisions of the City's Code of Ordinances, whichever is more restrictive. 4 . Driveways opening from said strip of land onto Fairmont Parkway shall be approved by the City and may require the installation of separate acceleration/deceleration lanes. 5. Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and city. **************************************************************************************************** * p, 01 * * TRANSACT I ON REPORT * * SEP-28-2000 THU 04: 16 PM * * * * DATE START RECEIVER TX TIME(L)PAGES TYPE NOTE M# DP * * * * SEP-28 04:16 PM 7137674219 37"(1) 5 SEND OK 908 * * * * * * TOTAL : 37S PAGES: 5 * * * **************************************************************************************************** City of La Porte. Kathy Powell, RTA (281)471-5020 ext. 261 Fad (281}471-7168 City of La Porte To; Mr. Kesenheimer .'rom: Kathy Powell Re: Pages: 4 Date: 09/28/00 cc: Fax: (713) 767-4219 Phone: o Urgent x For Review 0 Please Comment 0 Please Reply 0 Plcnse Recycle . Comments: . Mr. Kesnheimer, I am sending two copies of the first page of the Illdustl'lal District agreement. One needs to be filled in for Linde Gas, Inc. and one for BP Amaco. I need the metes and bounds for Linde Gas and need a survey for both Linde Gass & BP Amaco. Thanks, May 23, 2000 Linde Gas, Inc. 11603 strang Road La Porte, TX 77571-9749 Gentlemen: The city of La Porte reached final agreeme: for the seven year teJ agreement are attache Please insert the pro! on the first page, a authorized officer eXE Please attach Exhibit of the contract, and contract to the city ( Executed agreements re Council agenda for for furnished with a certi and a fully executed c We at the City of La Po District Agreements, wl in 1958, is mutually t companies with which i' Thank you for your COO] RTH:sw Enclosures City of La Porte Established J 892 rBJ IE ((; IE U WI IE fn1 /Ill JUl 1 8 2000 ~ FJ: CnVMANAGER'S OFFICE - App)/c a.,fJ~T15 r1 of - M/~s(~ 0.. A f (3 C OIU..,IJ/~f6 r.O.[)()xlllS. La r()rte, Texas 77S72-111S · (713)471-5020 have ment the tion the ige. )ies the :ity . be ce, ial rte x:ty er City of La Porte Established 1892 January 16, 2001 Linde Gas, Inc. Attn: J.H. Burnett 11603 Strang Road La Porte, Texas 77571 Re: Industrial District Agreement (IDA) (Series 2001-2007) Dear Mr. Burnett: Enclosed is a fully executed duplicate original of the Industrial District Agreement between your firm and the City of La Porte, effective January 1, 2001, for the term expiring December 31,2007. I also enclose a certified copy of the City's approval ordinance, for your records. This year's negotiations went very smoothly and I wish to thank you for your cooperation. Both City Council and I appreciate the positive relationships with Industry that these agreements have fostered. If my office can ever be of assistance to your firm, please do not hesitate to call. Respectfully, C;:<~ T. r\-~,-<- Robert T. Herrera City Manager Enclosures P.O. Box 1115 · La Porte, Texas 77572-1115 . (281) -171-5020