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HomeMy WebLinkAboutO-2020-IDA-87 Airgas USA, LLC ORDINANCE NO. 2020-IDA-87 AN ORDINANCE AUTHORIZING THE EXECUTION BY THE CITY OF LA PORTE, TEXAS OF AN INDUSTRIAL DISTRICT AGREEMENT WITH AIRGAS USA, LLC, A DELAWARE LIMITED LIABILITY COMPANY, FOR THE TERM COMMENCING JANUARY 1, 2020, AND ENDING DECEMBER 31, 2031; 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, TEXAS: Section 1. Airgas USA, LLC, a Delaware limited liability company has executed an industrial district agreement with the City of La Porte.. Texas, for the term commencing January 1, 2020, and ending December 31, 2031, 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, Texas, be and they are hereby, authorized and empowered to execute and deliver on behalf of the City of La Porte, Texas, the industrial district agreement with the corporation named in Section 1 hereof. 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 11th day of November, 2019. CITY OF - ' ''•RTE, TEXAS �� A Luis Rigby, M-yo ATTEST: 1 , I. , /, I - Woodward, City Secreta APPROVED AS TO FORM: All( 7774--/Vku-A4o Clark T. Askins, Assistant City Attorney 4 4 e NO. 2020 IDA- 41 STATE OF TEXAS ' COUNTY OF HARRIS 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 Mr A S U-S R L L G , a Di,AwArc kolj;}y ' / hereinafter called "COMPANY" , / co►" pc'nd WITNESSET 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, 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 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 : 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, 1) 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, 2) intermodal shipping containers (including but not limited to freight and tank containers) placed on Land belonging to Company shall be permitted to be stacked only two containers in height within the 100' wide portion of Company' s Land contiguous to either Fairmont Parkway, State Highway 225 , or State Highway 146 ; beyond said 100 ' wide strip, intermodal shipping containers shall be eligible to be stacked one additional container in height within and for each successive 100 ' wide portion of Company' s Land behind and following the preceding 100 ' wide strip, up to a maximum of six containers in height, regardless of distance from Fairmont Parkway, State Highway 225, or State Highway 146; and 3) 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 2 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" 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 . III . A. The properties upon which the "in lieu of" taxes are assessed are more fully 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 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. 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, 2020, or 30 days from mailing of tax bill and in like manner on or before each December 31st thereafter, through and including December 31, 2031, 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 2020 : 64% Value Year 2021 : 64% Value Year 2022 : 64% Value Year 2023 : 64% Value Year 2024 : 64% Value Year 2025 : 64% Value Year 2026 : 64% Value Year 2027 : 64% Value Year 2028 : 64% Value Year 2029 : 64% Value Year 2030 : 64% Value Year 2031 : 64% Company agrees to pay to City an amount of " in lieu of 3 taxes" on Company' s land, improvements and tangible personal property in the unannexed area equal to the sum of : 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, 2020, 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, 2019, 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%) , where construction is completed in Value Years 2020 through 2031, 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 . The eligible period for application of said thirty percent (30%) " in lieu" rate shall be for a total of six (6) Value Years . In the case of new construction which is completed in Value Year 2028 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 Thirty percent (30%) valuation under this subparagraph (a) , for a total of six (6) Value Years, but not extending beyond Value Year 2034 . In the case of new construction which was completed in Value Years 2016 through 2019 in accordance with the previous Industrial District Agreement between City and Company, such .new construction shall be subject to a Twenty percent 20%)valuation through Value Year 2022, and a 4 Thirty (30%) valuation for any additional Value Years beyond Value Year 2022, for a total of six (6) Value Years . (b) Application of the thirty percent (30%) "in lieu" rate for Substantial Increase in value of the Land, improvements, and tangible personal property dedicated to new construction is limited to new construction purposed for or related to manufacturing and processing uses . In no case shall Company be entitled to application of the thirty percent (30%) " in lieu" rate for Substantial Increase in value of the Land, improvements, and tangible personal property dedicated to new construction where the new construction is purposed for or related to uses for warehousing, storage, distribution, and/or general freight trucking and transportation, as well as general commercial uses, such as truck stops, rental facilities, or repair shops . (c) 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, 2019; 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. (d) If existing Property values have depreciated below the Property value established on January 1, 2019, 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, 2019, 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, 2020, and each January 1 thereafter of the applicable Value Year during the term of this Agreement, 5 (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 . 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 . If Company is not a member of Channel Industries Mutual Aid Association (CIMA) , 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 CIMA agreement, to which agreement City is a party. IV. This Agreement shall extend for a period beginning on the 1st day of January, 2020, and continuing thereafter until December 31, 2031, 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, 2031, 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 6 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 Local Government Code Section Chapter 42 . 044 "Creation of Industrial District in Extraterritorial Jurisdiction" , or Texas Local Government Code Chapter 43 "Municipal Annexation" , is amended, 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 laws as the same existed on January 1, 2019 . 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, and except as otherwise provided in Article VI (B) , Company agrees to pay to City on or before the date therefore 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 writing to Company) , Company shall, 7 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 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 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. 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 . 8 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 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 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 . 9 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 To Company: ,Q;r c.c USA LLL J (COMPANY) Attention: Rea) s4 -4 Department ► to (4. 1t) S4 ,s-k. Hoo Tulsa Ok_ 74/19 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 Name : Address : Phone: Fax: Email : Tax Agent/Billingr� Contact Name : D f�t\Gc.1n 1�O�,��y f\ssocl� enc_ Address : p.a, gax 1O 7 U NAd:son TX '75Oot Phone: (g7;)3&O- A1.06 Fax: ( q7;1.) 3al - 894/3 Email : Gr\ P clo,binc . corn ENTERED INTO effective the 1st day of January, 2020 . qas USAF LLG OMPANY) By. `* !r Nam i; r, . Title: ' AY, Diatsw.J /p-eco Address : /0 W ��fA4k7 //9 10 • I'EST:111k CITY O, i• 41RTE XAS 1' - --111By: `II C = Secretary d A Luis R. Ri. M.yor APPROVED: ox W. Askins i Corb Alexande City Attorney City Manager City of La Porte P.O. Box 1218 CITY OF LA PORTE, TEXAS La Porte, TX 77572-1218 604 West Fairmont Parkway 281 . 471 . 1886 La Porte, TX 77571 281 . 471 . 2047 fax knoxaskins@comcast.net OPCI4V)Ont EL, STATE OF so' COUNTY OF } ARRIS,p ' V1. This instrument was acknowledged before me on the Z day of .1-- , 2011 , by { u k P,-i-Z C3,ef'4.ci , AFD of Q;r 4z usA LL.e- , a b,eIr.,W +P.oerC on behalff)of said entity. 11(a/td2/./0---)Ly, Csm.i+ A. . °„`‘/ I�� State of Toxacgyp°eti" ° . y 0001041a.) ‘1.41 ::04) 40140100 11 STATE OF TEXAS ' COUNTY OF HARRIS ' I Nh,�is instrument was acknowledged before me on the ll day of t n�'C)QS' , 20(41, by Louis R. Rigb , Mayor of the City of La Porte, a municipal corporation, behalt of said entity. '40 arc- Public, State o exas Tarr ,: LEE WOODWARD +P NOTARY PUBLIC *? ;�' * STATE OF TEXAS + MY COMM.EXP.2/19/21 NOTARY ID 12681012-9 12 "EXHIBIT A" (Metes and Bounds Description of Land) 13 RP-2018-177411 04/25/2018 ER $32.00 NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON YOU MAY REMOVE OR STRIKE ANY OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER. SPECIAL WARRANTY DEED STATE OF TEXAS § COUNTY OF HARRIS § WHEREAS, effective July 2, 2012, AIRGAS-SOUTHWEST, INC., a Delaware corporation merged with and into AIRGAS USA,LLC,a Delaware limited liability company;and WHEREAS, AIRGAS USA, LLC, a Delaware limited liability company (hereinafter referred to as "Grantor,") for and in consideration of the sum of FEN AND NO/100 DOLLARS ($10.00) AND OTHER GOOD AND VALUABLE CONSIDERATION, to Grantor paid by AIRGAS USA,LLC,a Delaware limited liability company(hereinafter referred to as "Grantee,") whose mailing address is Airgas USA, LLC Attn: Real Estate Dept., 110 W. 7th St. Suite 1400 Tulsa, OK 74119, has GRANTED and CONVEYED, and by these presents does GRANT and CONVEY unto Grantee, that certain real property described as follows: A 13.5977 acre tract of land situated in the Enoch Brinson Survey, Abstract 5, Harris County, Texas, out of and a part of that certain 12.502 acres Tract "C" and that certain 16.5063 acres Tract"D"as conveyed to E.I. DuPont DeNemours&Company to Quantum 0o Chemical Corporation by Deed dated November 23, 1988 and recorded in County Clerk's CD File No. L967994 of the Official Public Records of Real Property of Harris County,Texas, N and out of and a part of that 27.8233 acre tract of land conveyed by Millennium Petrochemicals, Inc. to Port Central, LTD by Deed dated October 21, 2002 and recorded under County Clerk's File No. W174501 of the Official Public Records of Real Property of Harris County, Texas. Said tract also being out of and a part of Lots 43 and 44 of the Strang Subdivision as recorded in Volume 75 at Page 22 of the Deed Records of Harris county,Texas. This 13.5977 acre tract is more particularly described by metes and bounds on Exhibit"A"attached hereto and made a part hereof for all purposes,commonly known as 616 Miller Cut-Off, LaPorte, Texas 77571-9826(the "Real Property"); TOGETHER WITH, all and singular: (a) all improvements located on the Real Property, if any, (b) any and all rights, benefits, privileges, easements, tenements, hereditaments, appurtenances and interests thereon or in anywise appertaining to the Real Property, and all of Grantor's rights, if any, to use the same, (c) any rights of ingress and egress to and from the Real Property and Grantor's rights to use the same, (d) the mineral rights, if any, owned by Grantor relating to the Real Property, and (e) all right,title and interest of Grantor, if any, in and to(i)any and all roads, streets,alleys and ways(open or proposed)affecting,crossing,fronting or bounding the Real Property, (ii) any and all strips, gores or pieces of property abutting, bounding or which are adjacent or contiguous to the Real Property(however owned or claimed by Grantor), and (iii) 1 all reversionary interests, if any, in and to the Real Property. The Real Property,together with the rights and interests set forth in(a) through (e), inclusive, are herein collectively referred to as the "Property". This conveyance, however, is made and accepted subject to any and all restrictions, encumbrances, easements, covenants and conditions, if any,relating to the Property as the same are filed for record in the County Clerk's Office of Harris County,Texas. For the same consideration recited above, Grantor hereby BARGAINS, SELLS and TRANSFERS,without warranty, express or implied,all interest,if any,of Grantor in: (i)strips or gores, if any, between the Property and abutting or immediately adjacent properties; and (ii) any land lying in or under the bed of any street, alley, road or right-of-way, opened or proposed, abutting or immediately adjacent to the Property. TO HAVE AND TO HOLD the above described Property, together with all and singular the rights and appurtenances thereto in anywise belonging, unto the said Grantee and Grantee's heirs,representatives and assigns, forever; and it is agreed that Grantor and Grantor's successors, and assigns are hereby bound to warrant and forever defend, all and singular, the premises, unto the said Grantee and Grantee's heirs, representatives and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through, or under Grantor but not otherwise. This Special Warranty Deed shall also be effective to convey to Grantee any right,title and interests of Grantor in the following with respect to the Property: all sewer and wastewater tidischarge capacity allocated or reserved thereto, all potable water capacity allocated or reserved 1- thereto, all other utility rights allocated or reserved thereto, all development rights with respect °O thereto and adjacent streets, alleys, strips, gores and rights-of-way. O N Ad valorem taxes for 2017 have been prorated and are hereby assumed by Grantee. CC EXECUTED on the date of Grantor's acknowledgement, but effective the r day of !�,tii.,..4 _,2017. SELLER: AIRGAS USA, LLC,a Delaware limited liability company • e, ..... / By: . ,,, PAUL FIT ER• �, Central Division Vice President and Chief Financial Officer 2 THE STATE OF OKLAHOMA § COUNTY OF 'rp1. wt. § This instrument was acknowledged before me on V AIA (p , 2017, by PAUL FITZGERALD, Centr,W ivision Vice President and Chief Financial Officer of AIRGAS dA,i, 00A a re limited 'ability company. Notary Public State of Oklahoma r( Ll -- l i. Commission 0 11007136 �( My Commission Expires Aug 5,20t9 NOTARY PUBLIC, STATE OF OKLAHOMA After recording,return to: Roman Law Finn, P.C. 4141 Southwest Freeway, Suite 250 Houston, Texas 77027 N- N. cib O CV i 0 ce 3 • EXHIBIT"A'' FIELD NOTES of a 13.5977 acre tract of land situated in the Enoch Brinson Survey, Abstract 5,Harris County, Texas, out of and a part of that certain 12.502 acres Tract "C" and that certain 16.5063 acres Tract"D" as conveyed by E. L DuPont DeNetnours & Company to Quantum Chemical Corporation by Deed dated November 23, 1988 and recorded in County Clerk's File No. L967994 of the Official Public Records of Real Property of Harris County, Texas,and out of and a part of that 27.8233 acre tract of land .conveyed by Millennium Petrochemicals, Inc. to Port Central, LTD by Deed dated October 21,2002 and • recorded under County Clerk's File No. W 17450 i of the Official Public Records of Real Property of Harris County,Texas. Said tract also being out of and a part of Lots 43 and 44 of the Strang Subdivision as recorded in Volume 75 at Page 22 of the Deed Records of Harris County, Teras. This 13.5977 acre tract is more particularly described by the following metes and bounds,to-wit: NOTE: BEARINGS AND COORDINATES REFER TO QUANTUM PLANT COORDINATES AND BEARINGS. BEARINGS ARE ALSO BASED ON DEED BEARINGS AND FOUND MONUM1NTS IN THE SOUTH LUNE OF THAT CERTAIN 6.86 ACRE TRACT OF LAND AS CONVEYED BY PORT CENTRAL, LTD TO JACK AND BERNiCE MOBLEY FAMILY PARTNERSHIP, LTD, BY DEED DATED OCTOBER 25, 2002 AND RECORDED UNDER COUNTY CLERK'S FILE NO. W184907 OF THE OFFICIAL PUBLIC RECORDS OF REAL PROPERTY OF HARRIS COUNTY, TEXAS. REFERENCE IS MADE TO THE PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. COMMENCING at a point at the intersection of the East right-of-way line of Miller Cut-Off Road (60 feet wide right-of-way)and the North right-of-way line of Strang Road(60 feet wide right-of-way)for the Southwest corner of Lot 43 of said Strang Subdivision, the Southwest comer of said 16.5063 acres Tract "D"and the Southwest corner of that certain tract of land conveyed to Harris County for a county road by Deed recorded in Volume 752 at Page 628 of the Deed Records of Harris County, Texas. This COMMENCING corner has a Quantum Plant coordinate of S=2764.84 and E=2002.15. oo 'THENCE: North 00°00'35" East along the West line of said 16.5063 acres,the West line of said Lot 43, the West line of said county road and the East right-of-way line of Miller Cut-Off Road for a distance of CN 50.00 feet to a I' inch iron rod, with cap, set For the Southwest corner of said 27.8233 acres, the O. Northwest corner of said county road and the Southwest corner and POINT OF BEGINNING of this LY tract. Said BEGINNING corner has a Quantum Plant coordinate of S=2714.84 and E=2002.16. THENCE: Continue North 00°00'35"East along the West line of this tract,the West line of said Lot 43, the West line of said 16.5063 acres, the West line of said 27.8233.acres, and the East right-of-way line of Miller Cut-Off Road and at 636.45 feet pass a %inch iron rod, with cap, found for the Northwest corner of said 16.5063 acres and the Southwest corner of said 12.502 acres; in all, a total distance of 871.78 feet to a '4 inch iron rod, with cap, found for the Northwest corner of this tract and the Southwest corner of said 6,86 acres. • THENCE: South 89`58'11" East aiong the North line of this tract and the South line of said 6.86 acres, over and across Lot 43 and a part of Lot 44 of said Strang Subdivision, for a distance of 696.64 feet to a 1/2 inch iron rod,with cap,set for the Northeast corner of this tract and the Northwest corner of the residue of said 27.8233 acres. THENCE: South 00°04'13" West along the Northernmost East line of this tract for a distance of 414.24 feet to a 1/3 inch iron rod, with cap, set in the North line of that certain 4.0259 acre tract of land conveyed by Port Central, LTD to Port Central Service Center LP by Deed dated December 18,2006 and recorded under County Clerk's File No. 20060272627 of the Official Public Records of Real Property of Harris Exbibil"A" Net I on Revision:12 County,Texas and the Southwest corner of said residue tract, Said point being the Easternmost Southeast corner of this tract. THENCE: North 89°57'33"West along the Easternmost South line of this tract and the North line.of said 4.0259 acres for a distance of 32.0 feet to a 1 inch iron rod, with ca,. found for an interior corner of this tract and the Northwest corner dr said 4.0259 acres. THENCE: South 00°04'13" West along the Southernmost East line of this tract and the West line of said 4.0259 acres for a distance of 457.67 feet to a % inch iron rod, with cap, found in the North right-of-way iine of the heretofore mentioned county road end the South line of said 77.8233 acres for the Southeast corner of this tract and the Southwest corner of said 4.0259 acres. THENCE: North 89°57'33" West along the South line of this tract, the.North line of said county road • and the South line of said 27.8233 acres for a distance of 663.72 feet to the PLACE OF BEGINNING and containing within these boundaries )3.5977 acres or 592,3 14.4897 square feet of land. N- N • co • • • • • • • • • RP-2018-177411 # Pages 6 04/25/2018 02:28 PM e-Filed & e-Recorded in the Official Public Records of HARRIS COUNTY STAN STANART COUNTY CLERK Fees $32.00 T— T— N- ti T Cp CDN CLRECORDERS MEMORANDUM This instrument was received and recorded electronically and any blackouts, additions or changes were present at the time the instrument was filed and recorded. Any provision herein which restricts the sale, rental, or use of the described real property because of color or race is invalid and unenforceable under federal law. THE STATE OF TEXAS COUNTY OF HARRIS I hereby certify that this instrument was FILED in File Number Sequence on the date and at the time stamped hereon by me; and was duly RECORDED in the Official Public Records of Real Property of Harris County, Texas. a� r ,$ COUNTY CLERK Irk) c S'44 HARRIS COUNTY,TEXAS "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 I . � - ~ ~ ° " . ---------------L.. -1__„____' - -1_-_-_- . ~ . - -- . . ummultimmumw 111111111111......._11.1111111 i 1.11:117 1 1: 111 in iiieranisimelli . 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COPYwizzeammillsamazire i i. / • • . eAll\bI I '.1).:` - _- "u 11 pli • _ .� 42.`_ IIS 6 I_ r r I Rf, I�� II - IP ,:r — N 11 illim! !a la 1' ,4'' r . , ._ A/F. 7 d I 4; __ —wm ar usE.c„r s_cns ", ,• „,,.• , ,la iii 3 ey ,, I i 1 � 1'W ti ✓JHars r I .i'• I a �z9I / { I — Ill N. r , s' l ' r;a #i ...R,a.»...«.. .,a.<.2.a...�....,.,.� : .•-__ / ,. — __/.... , ,, ...,. ...." ,-2t1 1 ... , • _,.; L., E ` • _.......,....."1=Arthur j/T/ e. +... _ .d McCormick League •A - 46 I — I•11 SAN AACYMoaAr a.: .. ._.—- -.. d.1 I hi a- s.. _ i i -1--E---- llt[DIY 1 ; w� : 1.1-- .r--�.-- :__._r it, r 11411".1 q.r y,1717tXj: al !11ll 1 '','1 4� s: _ -------.,e___ —• s — `' — � � _ .=,:=x;-mss:--'_ a,„_11111.11.1-.i.......111;2,.......__ • 5�iii , _ T -- ,,a e ,, ,, ,ail;;, I A.0.BMckvnIL SvDdvxaian ,�{ ... 1 .. .:.. .1..5 M�I r O 1. PARCEL 1 Fg _ ...... � p IT Eno Brinson ii 28.6903 ACRES` -- _� ' �l{fid `I / f T urvey ;; •y r._ r i 'a. PARCEL 2 d t , 11 12.120 ACRES „c, �. I t PARCEL 3 .� �� ;._..._ l M,r,.,* \ ' N 14.4060 ACRES I .t�'' .' .. I tic �!FY y` `�►� i, • ."'.,3.... - -- !. - --_,I„ yam," - \`,, jfl i i „IF ` '\ ,,,',4v,,,,,,",,-9 / --.F.- w ' e. sum I \.\ , 1!I a M ! 4 Il .7?'-r-. . 17;i'(„4-ti •�'Z._ -. 1 f, „ SLI\, :\ I �~� te' MVO ,a Jk4. I,&' .,1, ut0.$4 1,- ' REis` �-= ri BUSCH, HUTCHISON do ASSOCIATES, INC. �d' .+ �'? C. `wS"° .m.nm_""COO MOO MIA 4, PARCEL 5 ,� �Jl,//6rniarr (4d(4.iauu/ 5.5970 ACRES ,,, u "-' "EXHIBIT C" Page 1 of 3 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, as well as the stacking of intermodal shipping containers . 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 : a One freestanding identification sign shall be permitted for each side of an industrial establishment that fronts on an improved public right-of-way. a 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. a Freestanding identification signs shall not exceed 45 feet in height . a Minimum setback for sign construction shall be ten (10) feet from property lines . 2 . Intermodal shipping containers (including by not limited to freight and tank containers) shall be permitted to be stacked only to a maximum of two (2) containers in height in the said 100 ' strip. In those instances where shipping containers are placed within the said 100' wide strip, the screening requirements established in paragraph 3 immediately below shall apply. 3 . 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, 15 etc. to provide a thorough and effective visual screening "EXHIBIT C" Page 2 of 3 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 . 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 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. 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 and 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 . 4 . 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. 16 "EXHIBIT C" Page 3 of 3 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 . 5 . 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 . 6 . Installation of a median crossover on Fairmont Parkway shall be subject to the approval of both Harris County and City. 17