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HomeMy WebLinkAbout2007-IDA-109 US Industrial REIT IIORDINANCE NO. 2007-iDA-109 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTS OF AN INDUSTRIAL DISTRICT AGREEMENT WITH US INDUSTRIAL REIT II, A TEXAS REAL ESTATE INVESTMENT TRUST FOR THE TERM COMMENCING JANUARY 1, 2008, AND ENDING DECEMBER 31, 2019, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEROF. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTS: Section 1. US Industrial REIT !I, a Texas Real Estate Investment Trust has executed an industrial district agreement with the City of La Porte, far the term commencing January 1, 2008, and ending December 31, 2019, a copy of which is attached hereto, incorporated by reference herein, and made a part hereof for all purposes. Section 2. The Mayor, the Assistant 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, de#ermines, 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 Hail 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 pasting thereof. Section 4. This Ordinance shall be effective from and after its passage and approval, and it is so ordered. 1 PASSED and APPROVED, this 25th day of August 240$, C OF t_A PORT Alton Porter, Mayor ATTEST: Mart a Gillett, ity Secretary APPROVED: nox skins, Ci Attorney ~ ~`~ pro. zoa7-II?A-~~ § STATE o~ T~xAS § CQUNTY OF HARRIS § INDUSTRIAL DISTRICT .AGREEdi+IENT This AGREEMENT made and entered into by and between the CITY OF LA FORTE, 'TEXAS, a municipal. corporation of Harris County, Texas, hereinafter called "CITY", and US Industrial REIT II a Texas real estate izzvestment trust hereinafter cal~.ed "COMPANY" , W I T N E S S E T H: V~HEREAS, it is the established policy of the City Council of the City of La Porte, Texas, to adapt such reasonable measures from time to time as are permitted by law and which will tend to enhance the economic stability ax~.d 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 anal 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 Na. 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 Mun~.cipal.Annexation Act of Teas, codified as Section. 42:044, Texas I;ocal Government Code; 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 "Land°); and said Land being more part~.cularl.y shown on a plat attached as Exhibit "B'~, which plat describes the awn.ership boundary lines; a site layout, shawin.g all irnprove~nents, including pipelines and railroads, and also showing areas of the band previously anra.exed by the City of La Porte; and WHEREAS, City desires to encourage the expansion and growth of industrial plants within said T7istricts ax€d far 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: FINAL I?RAFT: November 1, 2€~a7 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: L. City covenants, agrees and guarantees that during the tex-m of this Agreemez~.t, provided below, and subject to the terms anal provisions of this Agreement; said District shall continue to retain its extraterritor~.aJ. 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 pnrtians thereof, as an industrial distract may be changed pursuant to the terms of this Agreement. Subject to the foregoing and to the later previsions 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 froth 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. hat have extended to it by ordinance any rules and regulations {a) governing plats and subdivisions of land, (b) prescribizzg any building, electrical,. pl.utnbing or inspection code or caries, ar {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 I3ighway 1~6, 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 T~ater Code, the Texas Clean Air Act, the Texas Health & Safety Code, ar other federal or state environmental. laws, rules ar regulations, to the same extent and to the same intent and effect as if al.l Land covered by this Agreement were r~.ot 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 ~iarris 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 unannexed area for the purpose of computing the 'iin lieu}: 2 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 far "in lieu" payment purposes, such appraiser must of necessity appraise the entire annexed and unannexed} Land, improvements, and tangible personal property. Nothing here~.n contained shall ever be interpreted as lessening the authority of the Harris County Appraisal District to establish the appraised value of Land, improvements, azxd tangible personal property in the annexed portion, for ad ~ralorem~tax purposes. III. A. The properties upon which the "in lieu af~' taxes are assessed are mare fully described in subsections 1, 2, and 3 of subsection C, of this Paragraph III (sometimes collectively called the RPrpperty"); provided, however, pollution control equipment installed an the Land which is exempt from ad valorem taxation pursuant to the previsions of Sec. 11.31 of the Texas Property Tax Code is exempt from ad valorem taxation and "in lieu, of taxes" herreunder: €'roperty included in this Agreement shall not be entitled to an agricultuzal use exemption for purposes of computing "iza. lieu of taxes" hereurzd.ex. B. on or before the later of December 31, 2Q48, ar 34 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2015, Company shall pay to City an amount of "in lieu of taxes" on Company's Property as of January 1st of the current calendar year ("Value Year"}. C_ Company and City agree that the fallowing percentages ~"Percentage Amount"} shall apply during each of the Value Years: Value Year 2008: 62% Value Year 2049: 62% Value Year 2414: 62% Value Year 2011: 62% Value Year 2012: 62% Value Year 2033: 62% Value Year 201: 63% Value Year 203.5; 63% Value Year 2016: 63% Value Year 2017: 63-°s Value Year 2418: 63% Value Year 2019: 63% Company agrees to pay to City an amount of "in Lieu of taxes° on Company's land, improvements and tangible personal property in the unannexed area equal to the sum of 3 1. Percentage Amount 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 ~., 2008, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, (excluding amounts which wo~.ld be so payable with respect to any 6ubstantial Increase in value of such Land and improvements to which subparagraph 2, below applies), had been within the corporate limits of City and appraised each year by City's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Cade; and 2. (a} On any Substantial. Increase iz~ 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, 2D0'7, resulta.ng from new construction (exczusive of construction in progress, which shall be exempt from taxation}, for each Value Years following completion of~ construction in progress, an amount equal to Twenty-five percent (25%), if construction is completed in Value years 2008 through 2D13; and Twenty percent (20%}, if construction is completed in Value years 2024 through 20x9, of the amount of ad valorem takes which would be payable to City if all of said new construction had been within the corporate limits of City and appraised by Ca.ty's independent appraiser, in accordance with the applicable provisions of the Texas Property Tax Code. In the case of new construction which is completed in Value Year 201.6 oar later, and provided, further, that City and Company enter into an Industrial District Agreement after the expiration of this Industrial. District Agreement, then, and in such events, such new construction shall be entitled to additional Value Years under the new Agreement at a Twenty percent (2D~) valuation under this subparagraph ~a}, for a total of six (5} Value Years, but not extending beyond Value Year 2D22. (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 ]. , 2 D D 7 ; or ii. a cumulative value of at least ~3,500,ODD.00. 4 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 vn January I, 2007, an amount equal to the amount of the dapreciation will be removed from the calculation under this subparagraph 2 tv restore the value to the January 1., 2007, value; and 3. Percentage Amount of the amount of ad valorem taxes which would be payable to City an all of the Company+s tangible personal property of every description, located in an industrial district of City, including, without limitation, inventory, {,including inventory in, a federal Foreign Trade Zane and including Freeport exempted inventory), ail, 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, 2x08; and each ~'anuary 1 thereafter of the applicable Value Year during the term of this Agreement, {excluding amounts which would be so payable with respect to any Substantial. Increase in value of such tangible personal property ~o which subparagraph 2, above applies), had been within the corporate limits of City and appraised each year by the City+s independent appraiser, in accordance with the applicable provisions of the Texas Prapexty Tax Code. with the sum of ~., 2 and 3 reduced by the amount of City's ad valorem taxes on the annexed gortion thereof as determined by appraisal by the Harris County Appraisal District. ~. .Notwithstanding the above, should City elect to grant the Freeport inventory exemption authorized by Article VIIZ, 5ectian 1-j of the Texas Constitution and Section 1..251 of the Texas Property Tax Code to taxpayers within the City limits, then the Freeport inventory exemption shall. apply to parties to this Agreement, Further, should inventory or any other class or type of property become exempt from taxation by constitutional amendment vx act of the Texas Legislature (including, but not limited ta, Article VIII, Section 1-n, of the Texas Constitution and Section I]..253 of the Texas Property Tax Cade), such class or type of property shall be exempt for purposes of this Agreement, unless the City Council of the City of La Porte shall by Ordinance provide for the continued taxation of such property under the authority of any applicable provisions of the Texas Constitution and Texas Statutes. S 5. City and Company acknowledge circumstances might require the City to provide emergency services to Company's Property described nn Exhibit "A" attached hereto. Emergency services are limited to fire, police, and public works emergency services. If Company is not a member of Channel Industries Mutual Aid Association (CTMA}, Company agrees to reimburse City fnr its cflsts arising out of any emergency response requested by Company to Company's property, and to which City agrees to respond. 7f Company is a member of LIMA, the obligations of Camparzy and City shall be governed by the CIMA agreement, to which .agreement City is a party. xv. This Agreement shall extend for a period beginxling nn the 1st day of January, 2008, and continuing thereafter until December 3~., 2019, unless extended fax an additional period or periods at 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 sa extended for an additional period ar periods of time an or before August 31, 201.9, the agreement of City not to annex property of Company within the Dastr-ict 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, lgg4, or any new legislation is thereafter enacted by the Legislature of the State of Texas which imposes greater restrictions on the right of City_ ~o annex land belonging to Company or imposes further obligations on City in connection therewith after the annexation of such land, Cnmpany 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 pravisitins of said Texas Municipal. Annexation Act as the same eXi Gte~ ,~anl~ary '! , ~ 9ga . V. This Agreement may be extended fox an additional period nr periods by agreement between City and Company andJor its assigns even thoutgh 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. Irz the event Company elects to protest the valuation far tax purposes set arz its said properties by City or by the Harris County Appraisal District fox any year or years during the terms hereof, nothing in this Agreement shall preclude s'ach protest and 5 Company shall have the right to take all legal. steps desired by it to reduce the same. Notwithstanding such protest by Company, anal except as otherwise provided in Article V'r(B), 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" oxa the unannexed portions of Company's hereinabove described property which would be due to City in accordance with the 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 count of competent jurisdiction or as the result of other final conclusion of the controversy, than within thirty (30) days thereafter Company shall make payment to City of any additional payment due hereunder, ox City shall make payment to Company of any refund due, as the case may be, based an such final valuation, together with applicable penalties, interests, and costs. B. Should Company disagree with 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. (2 Q} calendar days of receiving City`s invoice, gave written notice to the City of such disagreement. rn the event Company does not gave 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 goad faith negotiations an an attempt to reach an agreement as to the market value of Campany~s property for "in lieu" purposes hereunder. If, after the expiration of thirty 4?Q) days from the date the natir~ of dasagreeme~at 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 vac {B} . ~Totwithstandirzg any such disagreement by Company, Company agrees to pay to City on or before December 3I of each year during the term hereof, at least the tat a7. of (a) the ad valorem taxes on the annexed partiox~s, plus (b) the tata]. amount of the '~ixx lieu" payments which would be due hereunder on the basis of Company's written valuatior~~ statement submitted to City by Company hereunder, or the total assessment and ttin lieu of taxes" thereon for the last preceding year, whichever is higher_ 7 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. rn case of no agreement an th~.s arbitrator in 10 days, the parties will join in a written request that the Chief fudge of the U.S. District Cau.rt for the Southern District of Texas appoint the third arbitrator who, (as the "Impartial Arbitratar'F) shall preside over the arbitration proceeding. The sale 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 fatal payment hereunder for the year in question. The Board shall hear and consider all relevant and material evidence on that issue including expert opinion, a~1d shah. render its written decision as promptly as pract~.cable. That decision shall then be final and binding upon the parties, subject only to judicial review as may be available under the Texas General Arbitration. Act (Chapter 1'71, „General Arbitrations' , Texas Civi]. 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 it~provements 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 Gity and Company, and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Conri~Sany sells, assigns, ar in any of her manner disposes of, either voluntarily or by operation. of law, all ar any part of the property belonging to it within the territory hereinabave 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 ar any extension thereof remains in force. Company shall give City written notice within ninety {9D) days, with fu11 particulars as to property assigned and identity of assignee, of any disposition of the Land, anal 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 8 existing industrial. district agreements after the effective date hereof and while this Agreement is in effect, which contains terms ara.d provisions mare favorable to the landowner than those in this Agreement, Campany 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. ~. 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 any one or more words, phrases, clauses, sentences, paragraphs, sections, articles or other parts of this Agreement or the application. thereof to any person, firm, 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 a£ 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 net 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, XII. Notices by a party to the other party hereto, shall be mailed or delivered as follows: To the City of La Porte Gity Manager City of La Porte 5(}4 West Fairmont Parkway ?.a Port A T~ 7? ~'? ~ ~, To Company: US Industrial REIT zI [ CpMPANY ~ Attentiorl:Industrial Department 9830 Colonnade Boulevard, Suite b00 San Antonio Texas 78230 Company shall promptly notify City of any change of ownership of Property, any assignment of this Agreement, and of any change of billing address. Company shall notify City annually, on or before Jnne 1, of any changes to the following information: Plaxxt Manager Name: Address: Phony. ~`ax : Email; Tax Agent/Billing Contact Name: Executive Mana in Director--Industrial Dept. Address;9830 Colonnade Boulevard. 5~ite 600 San Antonio, Texas 78230 Phone: {Z10) 64I-8408 ~~'^~ Pax ~2I0) b41-8595 __ Ema~-l: 5tanle Alte r~ sa ~m ENTERED INTO effective the ~.st day of January, 2Q~&. US I USTRIAL R II, a; as`;~~al' es ,a. ves' ~,;,; " . [COMPANY} By: ame• Title: Address : -;~1 ~ L~, r ~~~ AT'I'E5'~' : Y OP LA PO BY ~ ~ ~.~' Ci y Secretary Alton E. Porter Mayor APPROVED": /' By : y _ ox W. Ask~rts hn oer _ City Attorney Assistan. ity Manager City of La Porte P.Q. Bax 3218 CITY OF LA PbRTE La Porte, TX 77572-12I8 604 West Pairtnpnt Parkway 283.471.1886 La Porte, TX 77573 281.471.207 fax knaxaskinsc~camcast.net 30 STATE OF TEXAS ~ COUNTY OF BEXAR ~ This instru ent was ackn w3 ed before me on the " ~f'~aay tflf 2{}0 by ~ ~.. ~ ~ e ~ ~ y o ITS ndustri.al REIT II - - ~ on beh If of said entity, k' a Texas re es to investment trust, *ofAYA~e~* 1v'lElrlSSAA. ROSCOE Notary Pub3ic, estate o Texas Notary Public ",,~of~r State of Texas '~,q~ hfiy Comm Exp. Q1-11-202 STATE Off' TEXAS § COUNTY Q>~ HARRTS § T ~s instrument was acknowledged before me on the ~~ day of ~` 20D~, ~ by Alton E. Partex, I~layor of the City of La Por e, a mtxnic~pal corporation, on behalf, of said entity. °~~~- v ary Pu.bl3C, State of Texas SHARON IfARRIS My Commission Expires September i 2, aooq '*~~.~ 11 "~XHI~~~ A" ~Me~es and Bounds Bescriptipn of Land) 12 THENCE: Continuing along said northwest Iine, South 66 deg 15 min 53 sec West, a distance of 461.09 feet to a set 518-inch iron rad with cap, the most westerly southwest corner of the herein described tract; THENCE: Departing said northwest Line, North 29 deg 17 min 22 sec West, a distance of 260.34 feet to a set 5/8-inch iron rod with cap, an angle point; THENCE: Paralled to and 77.00 feet east of the common Iine of the east Iine of the Exxon Pipeline Company Easement and the west Iine of said 237.103-acre tract, North 02 deg 28 min 20 sec West, a distance of 629.69 feet to a set 518-inch iron rod with cap, being the point of curvature of a curve to the right, the most westerly northwest corner of the herein described tract; THENCE: Arotu~.d said curve to the right, an arc length of 303.73 feet, with a radius of 4I6.S9 feet, a central angle of 41 deg 46 min 27 sec, having a chord distance of 297.05 feet bearizzg North 18 deg 24 min S3 sec East to a set 5/8-inch iron rod with cap, being the point of curvature of a curve to the right, an angle point; THENCE:.- around said curve to the right; an: arc' length of 283.02 feet, with a radius. af. ; ~ -. 411.89 feet, a central angle of 39 deg 22 min 06 sec, having a chord distance of 277:48 feet be~-ing North 58 deg 59 min l0 sec~East.to a set 518-inch iron rod with cap; .being ~~ the point~of'tangency, an angle point;° ~ - THENCE: North 78 deg 40 min-14. sec.East;.a°distance. of 33.39 feet to the PO1N~'' OE- SEGIIVI~TING and contair~iazg $7.908. acres-ar.3.,829,245 square feet of land, more or'le5s. `~ ~ ~ . I`~'^~ ~ ~r f, F ~~! _.. .d..13~ `.r"~j~ ~~ AN 87.90$-ACRE {3,829,24$ SQ. FT.) TRACT OF LAND BEING OUT OF A CALLED 237.103-ACRE TRACT CONVEYED TO THE LUBRIZOL CORPORATION AS RECORDED IN THE HARRIS COUNTY CLERK'S FILE NUMBER (H.C.C.F. NO.) CS63972, LOCATED IN THE GEORGE B. MCKINSTRY LEAGUE, ABSTRACT 47, HARRIS COUNTY, TEXAS. COMMENCING: At a found copperweld rad number 2216 in the north line of the George B. McKinstry League, the intersection of the south line of a 50-foot Southern Pacific Transportation Company Easement as recorded in H.C.C.D. No. D867930 and the east line of Exxon Pipeline Company Easement as recorded in H.C.C.F. No. R930140, the northwest corner of said 237.103-acre tract; THENCE: Along the common line of the south Iine of said 50-foot Southern Pacific Transportation Company Easement and the north Iine of the George B. McKinstry League and said 237.103-acre tract, North 87 deg 25 min 45 sec East, a distance of 775.81 feet to. a set 5/8-inch iron rod with cap, the POINT OF BEGINNING and the most northerly northwest corner of the herein described tract;. BEGINNTNG: Continuing along said common Iine, with the same bearing, a distance :~.f 1,172.96 feet to a set 5/8-inch iron rad with cap, an angle point; THENCE: Continuing along said common line, North 87 deg 26 znizz 12 sec East, ~ a~. distance of 1,154.46 feet to a set 5/$-inch iron. rod. with. cap in the west: line of Bay~Area Boulevard, 150-foot public R.O.W., the northeast corner of said 237.103-acre tract aril the herein described tract; THENCE: Departing said common line, along the west line of Bay Area Boulevard, South O1 deg 00 min 45 sec East, a distance of 1,613.57 feet to a set 518-inch iron rod with cap, the southeast corner of the herein described tract; THENCE: Departing Bay Area Boulevard, South 88 deg 59 min 15 sec West, a distance of 1,364.87 feet to a set 518-inch iron xod with cap, the most southerly southwest corner of the herein described tract; THENCE: North 01 deg 00 min 45 sec West, a distance of 849.56 feet to a set 5/8-inch iron rod with cap in the northwest line of the 50-foot easement of Tennessee Gas Transmission Company as recorded in H.C.C.F. No. C533723, the interior comer of the herein described tract; THENCE: Along said northwest line, South 65 deg 54 min 12 sec West, a distance of 1,178_I2 feet to a set Sf8-inch iron rod with cap, an angle point; ~._.. t S t THENCE: Continuing along said northwest line, South 66 deg 15 min 53 sec West, a distance of 461.09 feet to a set 518-inch iron rod with cap, the most westerly southwest corner of the herein described tract; THENCE: Departing said northwest line, North 29 deg 17 min 22 sec West, a distance of 260.30 feet to a set 5/8-inch iron rod with cap, an angle point; THENCE: Parallel to and 77.00 feet east of the common line of the east line of the Exxon Pipeline Company Easement and the west line of said 237.103-acre tract, North 42 deg 28 min 20 sec West, a distance of 629.69 feet to a set 518-inch iron rod with cap, being the point of curvature of a curve to the right, the most westerly northwest corner of the herein. described tract; THENCE: Around said curve to the right, an arc length of 303.73 feet, with a radius of 4I6.59 feet, a central angle of 41 deg 46 min 27 sec, having a chord distance of 297.45 feet bearing North 18 deg 24 min 53 sec East to a set 518-inch iron rad with cap, being the point of curvat~zre of a curve to the right, an angle point; THENCE:: Around said curve to the right; an arc .length of 2$3.02 feet, with a radius. of~. ' ~ ~- 411.89 feet, a central angle of 39 deg 22 min 06 sec, having a chord distance of 277.48 feed bearing: North 58 deg 59 min 10' sec East. to a set 518-inch iron rod with caps .b~~g: ,' the point ~of'tangency, an angle paint;:. ~ . THENCE, North 78 deg 40 min 14. sec.East;~.a:distance. of 353.39 feet to the POINT' OE~ BEGINI~INC'r and containing 87.908. acres or• .3.,829,2.48 square- feet of land, more or~ less. `~ °EgHIBIT Bn Attach Plat reflecting the ownership boundary lines, a site layout, showing all impra~ements, including pipelines and railroads, and also showing areas of the Land previously annexed by the City of La Porte.} 13 sA~~ ~~~~~ gE ~ y ~ ;~, ~ :s .~ ~p3~ i~ t~ ~~~~ gg ago= s~ $P9 °a:~e~ 9 b"a i p ~Y~ ~~ ~ ~~ ~ ~~ ~ag~~ ~~ ~~ ~ v~ aY~ n~~ ~ R ~ '~ a" r L €a a~ ~ ~ ~- ~ ~~ ~ ~~ 5~ ~~ ~~~ ~~ a~ ~ ; g~~ ~~ a ~~ ~~ ~~ ~~ ~ ~ ~ ~~ ,~ ~ ~ ~~~t~~~ ~b~t>~ ~~~~~~~ ~ ~ ~ 1 ~~ ~ N ~ Ff ~ " ~ 5 ~~"~ ~ ~ f '.1 ~. ~ a '~ E ~q-A ~S L ri 4 A~ ~ 1 ?~ ~ $ aa F H~ ~ ~, S ~ : ~ ~ ~~ i :~ ~ ~~ ~~ r: y i o R ~ ~ W z o e i~ u`~ R k~_ v w a m e .v : - ~a~~ gg u L- ~ 9 ~4S &yy ~e ~ Y fi A .. ~_ ~ ~ ~s ~ ~~ --r- ~~. _ ~:~ ,~~_ o N m w- H - _~ t_, R p ~.. . .$ 5~~~. v ~~ ~ ~~~ ~ ~w R F = ~~ N i G"•_ ~ f ~~ .a ' ~ ~ _ K~ }~_ .I ~i pp .. :._.... ~~~~s ~_ ~ ~ ,__,;,~ ~ _ e . _ ~_ ~.~~ x~ =~ ~~5 6 A H - _„~ ~aae u....x,m ,.~ca.~en a orr ,iuo.cnmi _r. 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I,.. ., ,,~ _ .,,,, „a_a~~ ~ow~..,,, 1' a ~~~ ~ ~~~ ~~~g ~ ~6I ~ ~~ ~~~ ~~ 6~~ ~~ $~ ~~~a ~~~ 2A~ ~~'~ F~ ~~~ ~~ ~x~ $~S ~~~ ~#2~2~ F~i~ b 3 n ~ €~~ } ~.: zsr ~~ ~~ k ~ ~ ', $ ~ ~ ~~~ rxr ~ YN~ a _ '~ ~ § _ p'~~ i ~~`~ 8 3 e ~~ ~ fir, ~r ~ ks" ~ gy~ E'yA§gs y ggas f ~ Y ~ e ~ ~~ ~~$~! ~~~ q ~F~ ~~gp~ N~ S~~ ~ ~~~~a~¢ ~ ~ ~5~ ~ d Y~~ _~~~ ~~~ 9~`~ } fglJ ~~~ 3~~~~~4gF]~ 5 .~ 9 tl ~~q tl~i ~G~~ 6 a~~ S ~ d ~~~p~ ~ ~ ~ ~ ~~9 6 jp ~A~~'.?i~j~~ a@ a ~_~ , g ~ y ~~ ~g ~{R ~~ E $ ^ $ ^ 4~9~~G~ y 4 p ~~ ~ ~ yg 8 ~B$$~ gg~ B ~ M F ~ ~ ~ & pggR~"q ~ g g ~ ~ $ ~ g F 3 ~ A 'a I~~~ ~BN A€~ ~~ ~ ~ d^ BdR ~ ~~~ ~ ~ g e aE ,5 pg~ x ~ ~ ~& ~ a g a ~~~ ~ q 3 g ~` P p~ E %% _ ._ ~.& A a I I ~ ~~F'`9pl~~FC~YFFh C~Fk'R~FT~rF.,Fe ~ A ~ '_'~- ~~ ~~ en u~~ I I g( g3 ~ p(e y ~N ~ ~~ n ~ ~ A ~~ ~~~~~~ ~ ~ v n (1 h h ~i A N ~Q e'I n ~ ~~ ~ Q~ ~~~ uZ~~N N o 1 O E~ h p~ v~ n ~jafre, ^~rsi*r m xp ro rt ~ ~ ~ ~ H x ~ ~ ~'> ~ Pr g f~ ~~~ ~ y[ o n ~~~~ a R~n~ C~ oz~ ^ ~Oym ti ~ ~~ rn P ~n?d ~ ;m ~ N ^ ~ ~ N m~ ~ 8 a ~ : u a - - 92 & a e ~ o c E e - e 5 ~ e n ~ ~ ~ ~; ~ S a & e 'n G n iv ~ S c ~ . ~ ~ & ~ g p#3~ ~ ~ ~ a a ~ ~ a e s °e ~ $ s` e ~ u ^~5 $ E ~E ~ Y a ~y n Y "d n i G q Y ~ ~ G P n ~G s ~ a e 6 : a ~ 8 4 ~ 8 ~ S w a 9 a ~ ~' a e Y 4 Y ~P E d & ~9 ® G G Z 6 G G A G ~`~ ~ q Is e e g ~ s °~J op~~ M n ~ ls b ~ a le ~ `k $~a d C H G ~ ~ ~ ~ r ~ W lF 1S E G 9 L : ~ ag~ Y C N N N k k k k M N y ~' N X Y M A a ~ ~ ~ ~ ~ ~ ~ ~ d ri 3 ~ ~ ~ ~ ~ . E x ~ ~i~ ° e ~ u 9 5 9 9 ~ ~ 9 4 g 9 4 4 S 9 - 3 9 ~ ~ ~ 8 G 17 X 9 ~ d ~ i a ~ "a : C B S ~ Y G nn ~°$ ~ ~ - 6 ~ ~ ~ k 5 ~ ~ n 5 6 G 5 a s e ~~~ "~~,H~BI'I' C'~ Page 1 n~ 3 RUES AND REGULATIONS Any portion of Land constituting a strip of land 100' wide and contiguous to either Fairmont Parkway,. State Highway 225, ar 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 an vacant Land described in Exhibit °A" which is adjacent to Fairmont Parkway, State Highway 225, qr 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 an an improved public right-of--way. • Freestanding identification signs far single tenant buildings sha11 not exceed 180 square feet in area. • pne freestanding identificatiarx sign fqr identifying multiple businesses is allowable at the intersection of i~npraved public rights-af-way. • Freestanding identification signs for multiple businesses shall not exceed 350 square feet. • Freestanding identification signs shaJ.l not exceed 45 feet in height. • Minimum setback far sign constr~zctign 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 ~"airmont Parkway, State Highway 225, or State Highway 1~6 shall be screened by on.e 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 eaxxtinuaus visual. screen. 14 ~EXHTBTT Cn Page Z o f 3 b} The rise 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. 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 witlt~ 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 maintaixa.ed in a manner which is acceptable to the gublic utility company, and does not interfere with the operation and maintenance of the public utility facilities. For items b and 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 ar behind. existing facilities. In all cases the S~' strip, along the entire roadway frontage, shall be dedicated as a landscape easement and shall be kept free fzom any improvements except fox approved driveway access and identificatzaz~ signs. ~`or cases of new development ar improvements where a 50' landscape easement is not available or practical, Company shall meet with City to determine a suitab~.e landscaping alternative. d) In the case of land contiguous to Fairmont Parkway, in addition to the other requirements of these Rules and Regulations, Company shall dedicate to City by Plat a ten foot {10'} wide pedestrian anal bicycle easement, extending along Company's Fairmont Parkway boundary, within the fifty foot (50') landscape easement. The pedestrian easement shall not be within any pipeline facility, except for necessary crossings. 3. Driveways opening from said strip of land onto State Highway 225 or State Highway lgs shall be subject to the rules and regulations of the Texas Department of Transportation and provisions of the City's Cade of Ordinances, whichever is more restrictive. Driveways opening from said strip of land onto ~'airmant Parkway shah. be subject to the rules and regulations of Harris. County and provisions of the City°s Code of Ordinances, whichever is mare restrictive. 15 "L+"XHT$~T C" Page 3 csf 3 4. Driveways opening dram said strip o~ land onto Faxrmant Parkway shall be appzoved by the Czty anal may require the installation of separate acceleratianJdecelexatinn lanes. 5. Installata.on of a median crossover on Fairmont parkway shall be subject to the approval of both Harris bounty and City. 16 Addendum to Industrial District Agreement (t{re "Agreement') 6y and between the City of La Porte, Texas, a municipal corporation of Harris County, Texas crud US Industrial REIT II, a Texas real estate investment trust The Agreement is hereby amended to provide that the City's right to a tax lien on the real property described on Exhibit A, as set forth in Article VII of the Agreement is subject to the Company's right to protest valuation of its properties pursuant to Article VI of the Agreement. ENTERED INTO effective the I5c day of January, 2048. US INDUSTRIAL REIT II, A Texas, real estate inve,~tment trust B Name: ~p~ ir.~ ro ~~-~-ER~~~ Title: ~xerf,t~ ~, g ®ir~Gt~r ATTEST: CIT F LA PORT City Secretary Ito E. Porter ~ Mav r APPROVED: By: nox W. Askins Ron Bottoms, City Manager City Attorney City of La Porte LJSAA REAL ESTATE COIIrPANY u~ July 3a, 2aa~ ~TIA iG'EDERAL EXI'RES~ {281) 470-5048 Kathy Powell Tax Manager City of La Porte, Texas 6a4 W. Fairmont Parkway La Porte, TX 77571 RE: Industrial District Agreement by and between The City of La Porte, Texas and US Industrial REIT II Dear Kathy; Enclosed herewith please find two (2) original Industrial District Agreements between the captioned parties, each of which has been executed on behalf of US Industria] REIT II. Please have both of the within Agreements executed on behalf of The City (including the Addendum) and return one (1) fully executed Agreement to me for my records. 7f you have any questions ar comn~zents related to the enclosed Agreements, please do nat 1lesitate to call me at (21a) 641-$465. Very truly yours, Toni M. Fisher Assistant General Counsel TMF:mar Enclosures cc: Jason Hans, ~c~~IEnclosure Tony Byron, wlEnclosure 983Q Colonnade Boulevard, Suite 600 San Antonio, Texas 78230-2239