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HomeMy WebLinkAbout2007-IDA-30 Akzo Nobel Chemicals & Akzo Nobel PolymersORDINANCE NO. 2007-IDA-3D AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OIF LA PORTE OF AN INDUSTRIAL DISTRICT AGREEMENT WITH AKZO NOBEL CHEMCIALS fNC, A DELAWARE CORPPOTATION AND AKZO NOBEL POLYMER CHEMICALS LLC, A DELAWARE CORPORATION FOR THE TERM COMMENCING JANUARY 1, 2D08, AND ENDING DECEMBER 31, 2D19, MAKING VARIOUS FINDINGS AND PROVISIONS RELATING TO THE SUBJECT, FINDING COMPLIANCE WITH THE OPEN MEETINGS LAW, AND PROVIDING AN EFFECTIVE DATE HEROF. BE 1T ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE: Section ~. Akzo Nobel Chemicals fnc., a Delaware Corporation and Akzo Nobel Polymer Chemicals LLC, a Delaware Corporation has executed an industrial district agreement with the City ofi La Porte, for the term commencing January 1, 2008, and ending December 31, 20'19, 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 Gity 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 Ci#y 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 ac#ed 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 sa ordered. 1 PASSED and APPROVED, this 3`~ day of December, 200'7. TY OF LA PORTS L~ Alton Porter, Mayor ATTEST: a ha Gille ,City Secretary APPROVED: Knox Askins, City Attorney ~- ~_ November 19, 2007 Mr. John Joerns Assistant City Manager City of La Porte 604 W. Fairmont Parkway La Porte, TX 77571 Re: Akzo Nobel Chemicals Inc. Industrial District Agreement Dear John, ~~ d ~o~cc~ Enclosed please find two copies of Akzo Nobel's executed City of La Porte Industrial District Agreement for its two plants. Akzo Nobel wants to thank you and your office for all the time and effort spent to secure a new agreement. If there are any questions in regards to this matter, please contact zne at 312-544-7140 or our consultant, Hanson Gilan, at 713-278-0222. Since ly, Rita A. Klepitch State Tax Manager Cc: Hanson Gilan Encl. Akzo Nobel Services Inc. 525 West Van Buren Street Chicago, Illinois 60607-3823 Tel. (312) 544 7000 Fax (312] 544 7071 NO. 2007-IDA-~~ F STATE OF TEXAS ' COUNTY OF HARRIS ' ~®rt~ 1~~~ ~~fCe INDUSTRIAL DISTRICT AGREEMENT This AGREEMENT made and entered into by and between the CITY OF LA PORTE, TEXAS, a municipal corporation of Harris County, Texas, hereinafter called "CITY", and AKZO NOBEL CHEMICALS INC., a Delaware corporation and AKZO NOBEL POLYMER CHEMICALS LLC, a Delaware corporation hereinafter jointly called "COMPANY", W I T N E S S E 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 .time as are permitted by law and which will tend to enhance the economic stability and growth of the City and its environs by attracting the 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 Code; and WHEREAS, AKZO NOBEL CHEMICALS INC. is the owner of land and its subsidiary, AKZO NOBEL POLYMER CHEMCCALS LLC, is the lessee and operator 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 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: FINAL DRAFT: November 1., 2007 1 NOW, THEREFORE, in consideration of the premises and the mutual agreements of the parties contained herein and pursuant to the authority granted under the Municipal Annexation Act and the Ordinances of City referred to above, City and Company hereby agree with each other as follows: I. 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 unannexed area for the purpose of computing the "in 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 for "in lieu" payment purposes, such appraiser must of necessity appraise the entire (annexed and unannexed) Land, improvements, and tangible personal property. 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. TTT. A. The properties upon which the "in lieu of" taxes are assessed are more fu11y described in subsections 1, 2, and 3 of subsection C, of this Paragraph III (sometimes collectively called the °Property"); provided, however, pollution control equipment installed oz~. 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. Property included in this Agreement shall not be entitled to an agricultural use exemption for purposes of computing °in lieu of taxes" hereunder. B. On or before the later of December 31, 2008, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2019, 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 following percentages ("Percentage Amount") shall apply during each of the value Years: Value Year 2008: 62% Value Year 2009: 62% Value Year 2010: 62•°s Value Year 2011: 62% Value Year 2012: &2% Value Year 2013: 62% Value Year 2014: 63% Value Year 201: 63% Value Year 2016: 63% Value Year 2017: 63% Value Year 2018: 63•°s 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 1, 2008, and each January 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 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 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, 2007, resulting from new construction (exclusive 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 (250), if construction is completed in Value years 2008 through 2013; and Twenty percent (20 v), if construction is completed in Value years 2014 through 2019, 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. In the case of new construction which is completed in Value Year 2016 or 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 (20%} valuation under this subparagraph (a), for a total of six (6} Value Years, but not extending beyond Value Year 2022. (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, 2007; or ii. a cumulative value of at least $3,500,000.00. 4 Far 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, 2007, 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, 2007, value; and 3. Percentage Amount 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, (including inventory in a federal Foreign Trade Zone and including Freeport exempted 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, 2008, and each January 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 to 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 Property Tax Code. with 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. 4. Notwithstanding the above, should City elect to grant the freeport inventory exemption authorized by Article VIII, Section 1-j of the Texas Constitution and Section 11.251 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 or act of the Texas Legislature (including, but not limited to, Article VIII, Section 1-n, of the Texas Constitution and Section 11.253 of the Texas Property Tax Code), 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. 5 5. City and Company acknowledge circumstances might require the City to provide emergency services to Company's Property described on Exhibit "A"' attached hereto. Emergency services are limited to fire, police, and public works emergency services.. Tf Company is not a member of Channel Industries Mutual Aid Association (LIMA}, Company agrees to reimburse City for its costs arising out of any emergency response requested by Company to Company's property, and to which City agrees to respond. If Company is a member of CIMA, the obligations of Company and City shall be governed by the LIMA agreement, to which agreement City is a party. IV. This Agreement shall extend for a period beginning on. the 1st day of January, 2008, and continuing thereafter until December 31, 2019, 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, 2019, 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 Campany'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 I., 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 5 Company shall have the right to take all legal steps desired by it to reduce the same. Notwithstanding such protest by Company, and except as otherwise provided in Article VI(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" on 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 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, or City shall make payment to Company of any refund due, as the case may be, based on 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 w~'iting to Company}, Company shall, within twenty (20) calendar days of receiving City's invoice, 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 VT {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 written valuations statement submitted to City by Company hereunder, or the total assessment and "in 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. 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 expert opinion, and shall render its written decision as promptly as practicable. 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 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 City and Company,- and upon Company's successors and assigns, affiliates and subsidiaries, and shall remain in force whether Company sells, assigns, or in any other manner disposes of, either voluntarily or by operation of law, all or any part of the property belonging to it within the territory hereinabove described, and the agreements herein contained shall be held to be covenants running with the land owned by Company situated within said territory, for so long as this Agreement or any extension thereof remains in force. 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 8 existing industrial district agreements after the effective date hereof anal 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 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 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. XII. Notices by a party to the other party hereto, shall be mailed or delivered as follows: To the City of La Porte: City Manager City of La Porte 604 West Fairmont Parkway La Porte, TX 77571 Pasadena Plant To Company: Akzo Nobel Polymer Chemicals LLC Attention.: Controller 12900 Bay Park Road Pasadena, Texas 77507 Deer Park Plant Akzo Nobel Polymer Chemicals LLC Attention: Controller 730 Battleground Road La Porte, Texas 77536 9 In either case with a copy to: Akzo Nobel Chemicals Inc. Attention: Tax Officer 525 W. Van Buren Street Chicago, Illinois 60607 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 June 1, of any changes to the following information: Plant Manager. - Pasadena Name: Gerard Brun Address: 12900 Bay Park Road Pasadena, Texas 77507 Phone: 281-291-2560 Fax: 281-291-2597 Email: Gerard.Brus@akzonabel-pc.com Plant Manager - Deer Park Name: Gordon Martens Address: 730 Battleground Road La Porte, Texas 77535 Phone: 281-817-9200 Fax; 281-479-7556 Email: Gordon.Martens@akzonobel-pc.cam F ° ! .: Tax Agent/Billing Contact .gg~ 4 ~ F~ Name: Hanson Gi1an Address: 9494 Southwest Freeway, Suite 810 a Houston, TX 77074 ~ .,~ Phone: 713-27$-0222 ? Fax: 713-278-0444 Email: ardeshirigilan@sbcglobal.net ~~~ ENTERED INTO effective the 1st day of January, 2008. (Company) Akzo Nab emica Inc. BY ~~..._ .. _~ Na Paul inski Ti le: Vi President Address: 525 W. Van Buren St. Chicago, IL 60507 (Company) Akzo No Polyme Chemicals LLC By: :, Name: Rita A. K epitch Title: Tax Officer Address: 525 W. Van Buren St. Chicago, IL 60607 10 'i '~ 3 ~ t~~ ATTEST: it Secre ary r APPROVED: Knox W. Askins City Attorney City of La Porte P.O. Box 1218 Z,a Porte, TX 77572-1218 281.471.1$$6 281.471.2047 fax knoxaskinsC~comcast.net STATE OF ILLTNOTS' COUNTY OF COOK C Y OF LA POR By. Alton E. Porter Mayor By: n Jo ns ssis nt City Manager CITY OF LA PORTE 604 West Fairmont Parkway La Porte, TX 77571 This instrument was acknowledged before me on the day of ~v~x,~. 200, by Rita A. Klepitch, Tax Officer of A zo Nobel Polymer Chemicals LLC, a Delaware limited liability company, on behalf of said entity. ,-. Lary Publ~, State o STATE OF ILLINOIS' COUNTY OF COOK ' This instrument 200, Nobel Chemicals nc entity. tary Public, State of Illinois OFEiCiAL SEAL JESSIE M SIMS i~fQTARY PlJBLIC - 5TATE OF ItuNQ1S I-(II COI~uIrSSrON ExPIRES:06113/1'1 OFFICIAL SEAL I 11 i $~ M 51MS NOTARY PUBLIC -STATE OF ILLINOIS MY COMNEISSION EXPIRE3:06l13111 . ~~ was acknowledged before me on the /y-day of by Paul A. Radlinski, Vice President of Akzo a Delaware corporation, on behalf of said 11 STATE OF TEXAS COUNTY OF HARRIS This instrument was acknowledged before me on the ~? day of 200 by Alton E. Porter, Mayor of the City of La Por e, a municipal corporation, on hal o~ said entity. N y Fublic, State of Texas ~~ ~"" p OI~.Spti •.,,, 2. ~ ~ ~ ~ +~ s~ 9~xo~~ .•' ~. 12 "EXHIBIT A" (Mutes and Bounds Description of Land) I3 r J~~~ TRACT 3 -POLYMER TRACT METES AN;D BOONI7S DESCRIPTION OF ~Q~~ A 46.56 ACRE TRACT OF LAND ~~ IN THE GEORGE B. McKINSTRY LEAGUE, ABSTRACT NUMBER 47, AND THE WM. M. JONES SURVEY, ABSTRACT NUMBER 482, HARRIS COUNTY, TEXAS A 46.56 acre (2,028,003 square foot) tract of land in the George 8. McKinstry League, Abstract Number 47, and partially }n the Wm. M, Janes Survey, Abstract Numrier 482, Harris County, Texas, being a portion of a called 1t}0.00 acre tract described in a deed from Frisndswood Development Company tri Armak Company, recorded in Harris County Clerk's File Number D926504, said 46.56 acre tract being more particularly described as follows (bearings based on the .Texas State Plane Coordinate System, South Central Zone, NAD 1983, from GPS observations with reference to NGS Cooperative CORS "NETP" vn February 18, 20:04): BEGINNING at a 518 inch iron rod with brass cap stamped 2fi75 found, as called, marking the intersection of the west line of a 50 foot wide Southern Pacific Transporkation Company railroad spur right-ot^way (described as a 21.274 acre tract (Tract 2), and recorded }n Harris County Clerk's File Number D867930), with the north line of a 100 foot wide tract (described as Bayport Pipeline Corridor "30" (Tract 2, Segmenk 1), a called 10.51 acre tract described in a deed to Exscon Pipeline Company as recorded in Harris County Clerk's File Number RS30140), said corner marking the southeast corner of said called 100.00 acre tract and the southeast corner hereof; YHENCE, South 87 degrees 32 minutes 20 seconds West, a distance of 1,294.30 feet, with the north line of said Bayport: Corridor "30" and the south line of said called 100.00 acre tract, to a 518 inch iron rod with CLR cap set for the southwest corner hereof; THENCE, North 02 degrees 28 minutes 16 seconds West, a distance of 977.04 feet, leaving the north tine of said i3ayport Corridor "30", to cut "X" set on concrete far the mast westerly northwest corner hereof; THENCE, North 87 degrees 31 m}notes 44 seconds East, a distance of 647.4U feet, to a cut "V" set on concrete for an interior corner hereof; THENCE, North 02 degrees 31 minutes 48 seconds West, a distance of 1,141.27 feet, to a 518 inch iron rod with CLR cap set far the most northerly northwest corner hereof in tf1A MP,~'!E'1 lil'7e v'f ~u~d ~ullerl ~llfl /5f! nnwn +w.~, w+ ~ ..1 ~M.., al- 1:.. r i, ,a wr.r ... ivv.vv o~.,v aic~~.^ anu ii! Slav Svi.i~i! uIIC VI [! (:t111eC1 lLa. l7~ acre tract described in a deed to Petrolite Corporation recorded under Harris County Clerk's File Number E340787; THENCE, North $7 degrees 28 minutes 12 seconds East, a distance of 699.15 feet, with the north fine of said coifed 100,00 acre' tract and the south Tine of said called NOU03:97T~~4.3 Page 7 of 2 Si~'d iL@Z b~S zti~~o1 b~~08~~~~L Xl ~t1d3dOJd Nd~I~J~Wtic~~o~d bT~~Z L~B~-~~-E~pN 125.179 acre tract to a to 518 inch iron rod with brass cap stamped 2678 found, as rolled, marking the northeast corner of said ;called 144.00 acre tract, the northwest corner of a tailed 14.319 acre tract (Tract 3), described in a deed to Houston Lighting & Power Company as recorded under Harris County Clerk's File Number C686T71, said corner being the northeast corner hereof; THENCE, South 02 degrees 26 minutes 34 seconds East, a distance of 389.30 fee#, (called South 02 degrees 28 minutes 24 East, a distance of 3$9,41 feet), with the east line of said called 14Q.00 acre tract and with the west iir}e of said called '10.339 acre tract and the west fine of a called 25,749 acre tract {Tract 2) described In a deed to Houston Lighting & Power Company retarded in Harris County Clerk's File Number C686171, to a 518 inch iron rod with CLR cap set for corner in the west right-of-way fine of said 5autnem Pacific Transportation Company railroad spur right-of-way; THENGE, with west right-off way line of said Southern Pacific Transportation Company railroad spur right-of-way and the mast line of skid called 1 pA,QQ acre tract as follows: Along the arc of a 483.59 foot radius non-tangent curve to the left, having a central angle of 26 degrees 17 minutes 05 seconds, an arc length of 221.85 feet, and a chord which bears South 1D degrees 42 minutes OD Seconds West, a distance of 219.91 feet, to a 518 inch iron rod with C~.R cap set fpr corner; South a2 degrees 26 minutes 32 seconds East, a distance of 1,515.83 feet, (taped South 42 degrees 28 minutes 2fl seconds East, a distance: of 1,515.53 feet), to the POINT OF BEGINNING aril containing a computed area of 46.5E acres {2,028,003 square feet) of land. MdU03:977514.3 Aaga 2 of 2 Sr~'d T~~Z ~bS ~Z~=ol ~i~~08LZ~LZ X~ rli~J~dO~ld Nti~T~~Wkir~o~~ bti~~t ~~0~-~T-(1aN Q O r~A~ ,~(.L~~l~ 1 ~! ME'I'$$ AND $OIINUS UES'G"1{~.L''LIf~N Besng a 24.70 acre tract of land, more ~r less, Daft of the Axthur McCormick Survey, A-46 and oUt of the George Ross Survey, A-646, Maxris County, Texas; said 24.70 acre i<ract being all of that certain 3',Q acre tract as conveyed fay ~7Yff E. Fleming, Trustee, to Texas Alkyls., bx deed dated May l9, 195g, as reeordPd i,n Volume 3705, Page 32fi, et seg, Harris .Coutlt.y Deed Records, and AI. J, of l:haL- Certain 3.5 asxe tract as conveyed by G,7~, La fprge t0 ~'Gxas Alkyls, Ina,, by decd diked ,May S, 2961, as recorded in volume 93fi2, Page Zs, Harris County Dead Records, and being all of that certain 12.774 acre txaet as conveyed by Phillips Pstrei.Ptlm Company to Texas Alkyls, Inc., by died dated May 22, 1959, as xecardc:d in volume 3712. P~~ge 95, Harris County Deed Reaprds; an3 including a part of that certain {Gal].Cdl 5.6574 acre tract shown on a plat of a survey perfGrmed by Paul W, wiSernan in A~Sril, 7978F which tract was off the South end of •the Soltex Polymer Co.r,p,, 96.BB2 acre tract iTxacC iF) in the A.. >`ScCarmick Survey, A-9G; said 29.7D acre tract being mare ~ixrticulaxZy desCrilaed as toJ.lowg ; Commencing at a 2" Q.D. iron pipe w~,th an aluminu~fi pap marked "PFCd." being the NOrthwes~ Corner of t1y;~t acid 12.779 z+cre tract, and being the SnuChwest r:orner of that Certain Tract Y1 aont.aining 96 , BG 8Cre5, canvcyed ]sy r?i'~.i].lips FetXOIQl1m Company EO t=c~lanese Caxp- oiAtfon ~f America 15y deed dated April 5, 19SG, as rccr_+rded in Volume 3133, Page 3G1, Ilaxxis County Bead Recn.r.r3s, and )~eing also the most Northerly Northwest corner of that certain 63.333 acre tract deccriUed in ~ partition cIc?~:d fir-ttu~?~,rt W,,'T, i]oward, et 8Z, dated June 2E, 1.y~,i}, as rQCOrdnd .i,rt Volume 2124, Pack? 665, Harris County Dc:Rd Rerorr3r., said o4j.11'1= being on thQ 5autherly extension pE i:he center line of Stfitp Fiiahway No. 134, also known as 33attlec3rpund Raad, and being in €;he i•,r.st line of the Arthur !<1cCormick Sur.~Ay, 11-46, same being the Rast line at the George Ross Sur.vpy, n~646, Hax•ris County, T'P_xa$) Thence, N 2° 29' S~; Coinr:ident with the TdeSt boundary J„i,rtp of the A, DcCormick Survey, A-96 and with the Sacx#-herly ~-~ro;jeCtxor~ of the centpzline Of StatA HighNdy 134; 5 d1StAnrn_ of 258.29 Feet to ~~ paint for tttc~ Northwest carnet af. the afo~:emcnt:iOni:ci 5,6674 acre tract. Whence, N 87° 10' 1$" F; coincident toiL'h l]~a Nozt1~ boundary line of the afar mentioned 5.6579 acre tract; a distance of 58.97 feet to a point f.nr cos;nr-.r coi.nr..ic3ent with El•~e fast right-ol;-way 7-ine of Sfa~C Hi•=h=='ay 134; s~~icl {~oir~t he~,nq the FQiN'Z' OF 111.TInN]NG. '!'hence, coneinuing tJ $7 ° 10 ` 18" E, cc7xncident Nith the tvortia !?^ua~~daY~y lina? of tl~e ~xforementioned 5,GG79 acre tract, a d.isC,~nr:c: of ?28.95 fr_cL' to a point: for the Northeast corner of fhe 7.4.70 ar_.re tL'.7Gt, V`~ ~~ ~` ~} ~~~ S~b'd ti~flL ~bS ~T~:o.L b~b~8L~~T~. Xl J,1J~d©~Id Nb~I~i3Wd;u~o.a~ ii~:2~T ZaOZ-bI-(1QN . ':•= Thence. S 2d°'Sd' 03" Tr7; coincident with the West bocndary trine of the Houston Lighting and Power. CGmpanyr 31,458 ears tract as tse- cprdad in Volume 2494, at Page 455 etc. of the Harris County Deed Records; passing at 297.54 feet, the Northeast corner of the afore- 9d1d 12.774 acre tract; passing at 1,1.59.22 feet the Southeast earner of ti~Z~c said 1.2.779 acrE tract; #or tx tiokal di s•tanop of 1, 419.49• feet td the Southeast Horner of this 2.76 acre tracts whi.ah to also the Southeask corner of thrs aforern2ntioned 3.5 3cze tract. Th,rnce, 5 87° 39' 44" C4; coincident with the agreed South bounr3a.ry line of the 3.5 aeze Cract as vet forth in the instL'ument recorded .irt Valurne 5235. Page 7.75, etc., of t}~e Harris County ~Qad Records; a distance of 774,03 feet to a point for the SouthiaQSt comer Of this 24,70 acre tract. Whence, N 17° 11' E, alo;7g the West lire o.f, said 3.5 acre tract atld the East right-of-way line of State Ha.ghw~y No, 1.34, ~t 127.dD fast pass the most t'1ast~xly Northwest cnrareC ai said 3.5 acre track, being aJ,so the Southwest corner of said 3.0 acre tract, and conti.rn;a.ng alma the West Tine pf. sai8 3.0 acre tract at o total distance pf 997.33 feet tO a point. o£ curve. Thence, fallowing a curve to the 3Aft in Northerly clix•eetion; coincident with the East right-of-way litre oC Stale Highway 139; said Curve having a Central angle of i5° 49' "l7" artd ~ radius o€ 1,~24G,40 feet; f:oz an are c7],s:_ance Qf 3fi5,87 feet to the POINT CtF L't:GiMN'IN(;, k'reparcd frnm €1.e7d ante dead descriptions, cnrrecte:•1 and. rotated by Cornnass Ru:4,e method of adjustment, not Surveyed on tTtr gr,~pvr,tl. Rt_L~FTg~ ti. Carlos SmiL•h ~ W .~.., n.-z~a'c.,f~4, Texas Registered Public Sttrveyc,.r„ Ncn. 1226 {tee";",,-5r~.~o bate: March 31, 1384 tf~'S1~y~` ,lob No. 1713-79 SOS'd tiZOZ ~~S ~Z~~cl t~bb08ZZ~~Z Xl J,I~I~dO~ld Nl~~I2i~Wd:wo.~~ ~~~~1 L~~2-bT-(lON "EXHIBIT 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.) 14 4~ d M~ ff ~- W~` "`_ ~ 9~ ~~ M~" Y1 ~ / '° 46'A~t ~.~ ~ 1 ~~ ~~fl~g !~' ~ r1flF~ tW..P3 'ya. ~l0 yy ~M ~TW TT ~jO~~ SL ~ , ~~s ~ P+s- ~O~re ~~p~a ~ ~1.+ d ~~} UW~~ 3 1~ ~ i ~ V,~ y ~~ ~ ~tiyy_ciN' 4 ~N ~" ~ N1V V4^ OP Y~~~ ~' p~ ~ ~r~ ~..~M p.~~ ~ s f 2~a! ACfc iRACf 1 Lm'dLR) ~q P6 } e ~f } E ~ 1 ~~ i ~ 22 ~ x]p u 9~~w., t0. 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P ~ ca ' cF'S_ s, 4~ gF a £a g € Aso ~ : °z~s a~ _~~"si~~oo%~a e g~H s~" ~ $g a ag a~e~ ' ~~~ Q. vF g ~ - - oa P ~~~&~ ~~°~'a ' ~~@~ ¢S • ~~ ~ ~~ .3 =~ aga UGC- 3 ; !g'a°sg=c ;~5~_g g ~• .c ° ~~~~~ ~~~s¢ e ~~K~ F ~ L~ `a~ ~ ~.a' xx~!9 Rz8 \~s"~r~ ~ %~~;:~=~E':°g-5¢€~~~'-~53 ~:~~.4~S~~a ~s~ ~ ~ ' I 1 65~. E3p 9 ~,I'de i° `s3 !.~ [: _B ?€: P C6 S ~~ "EXHIBrT C" Page 1 of 3 RULES AND REGULATIONS Any portion of Land constituting a strip of land 1.00' wide and contiguous to either Fairmont Parkway, State Highway 225, or State Highway 146 sha11 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, 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. c~ Freestanding identification signs for single tenant buildings shall not exceed 150 square feet in area. c~ 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 sha11 not exceed 45 feet in height. c~ 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 1.46 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. 15 "EXHIBIT C" Page 2 of 3 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 anal 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 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 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 ghat is parallel to the roadway. Screening shall not be required for new development that is to the rear of or behind existing facilities. Tn 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 n.ot available or practical, Company shall meet with City to determine a suitable 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 (1.0') wide pedestrian and bicycle easement, extending along Company's Fairmont Parkway boundary, within the fifty foot (5u') landscape easement. Tine pedestrian easement shall not be within any pipeline facility, except far necessary crossings. 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. Driveways opening from said strip 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. 16 "EXHIBIT C" Pages 3 of 3 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 anal City. 17