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HomeMy WebLinkAboutPACKET DEC 16 2008 RICH WITH OPPORTUNITY BEA,[IMON* T • E • X • A - S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS DECEMBER 16, 2008 1:30 P.M. CONSENT AGENDA * Approval of minutes * Confirmation of committee appointments A) Amend a license agreement with Crockett Street Development, Ltd. (d.b.a. Crockett Street District) B) Approve a resolution accepting maintenance of the street and sanitary sewer improvements on Stone Oak Drive C) Approve a moratorium on the issuance of permits for mobile food establishments within the city limits of Beaumont for a period of ninety(90) days D) Assign and amend a Ground Lease Agreement at the Beaumont Municipal Airport A RICH WITH OPPORTUNITY BEAIIMON* T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider amending a license agreement with Crockett Street Development, Ltd. (d.b.a. Crockett Street District). RECOMMENDATION Administration recommends amending the existing license agreement with Crockett Street District. BACKGROUND On June 24, 2003 council approved a resolution authorizing a license agreement with Crockett Street District for thF use of the Crockett Street right-of-way between Main and Pearl Streets. That agreement required a written notice thirty(30) days in advance of any planned entertainment event, in order to limit pedestrian access. The agreement also required a payment to the City of ten percent (10%) of gross receipts for admission for all "for profit" events. Under the terms of the proposed amendment to the agreement, Crockett Street District would be required to pay the City a flat fee of two thousand dollars($2,000)for each"for profit" event. That payment would be required to be tendered to the City thirty(30) days in advance of the event. Additionally, Crockett Street District will be required to submit an annual report within thirty(30)days after the close of the fiscal year recapping all"for profit" events held for that year. A copy of the proposed license agreement is attached for your review. BUDGETARYIMPACT Revenue will be based on the number of events held and is unknown at this time. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT. THAT the City Manager is hereby authorized to execute an amended license agreement, substantially in the form attached hereto as Exhibit"A,"with Crockett Street Development, Ltd., dba Crockett Street District, requiring a flat fee of Two Thousand Dollars ($2,000) to be tendered to the City thirty (30) days in advance of each "for profit" event and requiring Crockett Street Development to submit an annual report within thirty(30)days of the close of the fiscal year as defined recapping all "for profit" events held that year. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16`h day of December, 2008. - Mayor Becky Ames - LICENSE STATE OF TEXAS § ALL MEN BY THESE PRESENTS: COUNTY OF JEFFERSON § On the date last indicated below, the City of Beaumont, a municipal corporation of Beaumont, Jefferson County, Texas, (hereinafter called "Licensor"), and Crockett Street Development, by and through Crockett Street District, (hereinafter called "Licensee"), contract and agree as set forth herein. Licensee desires an exclusive license from Licensor to use the real property the subject of this License Agreement described as follows: Crockett Street right-of-way between Main and Pearl Streets (herein "Licensed Premises"). Licensee may limit vehicular access to the Licensed Premises, but may not limit pedestrian access at any time except as follows: Should Licensee desire to limit pedestrian access to the Licensed Premises, they must first provide Licensor with thirty (30) days advance written notice of its intention to do so. If an admission charge is assessed or compensation is paid for use of the Licensed Premises and the event is a "for profit" event, Licensee shall pay to Licensor a fee of two thousand dollars ( $2,000.00) per event. The payment of this fee should accompany the thirty(30)days written notice as set out above. There shall be no fee for "non-profit" events, but Licensor shall still be given at least thirty(30)days notice as set out above. "Non-profit"event, as used in this License, means that 100% of the admission fee for the event is received by the organization for which the event is held and the organization is a charitable organization as defined by the Tax Code of the State of Texas, or the Internal Revenue Code of the United States. Page 1 of 7 EXHIBIT "A" Licensee is to provide Licensor with thirty (30) days advance written notice of the events planned for the Licensed Premises. Licensee shall submit an annual report which recaps all of the "for profit" events held in the fiscal year(October 1 through September 30)within 30 days after the close of the fiscal year. Should Licensee fail to comply with the notice and fee provisions of this paragraph, this License may be terminated immediately. Truck deliveries to the Crockett Street District will be limited to the Licensed Premises. No truck delivery will be made on either Main or Pearl Streets. Licensed Premises may continue to be occupied and used by Licensee solely in connection with the Crockett Street District and for incidental purposes related thereto during the term of this License or until termination thereof. Said License shall be for a term of one (1) year from and after the date of its approval by the City Council of Licensor. Should the one (1) year term expire, the license will continue from month to month until such date as it is renewed by the City Council. No permanent improvements shall be made upon the Licensed Premises without first obtaining the written consent of Licensor by and through its City Manager or his designee and providing a copy of the notice to Licensor in writing of how, when and to what extent such improvements are to be made. A copy of this License shall be attached to such notice. In the event Licensor, by Resolution of the City Council, determines there is a public need for the subject property or any part thereof, for the benefit of the Licensor or to protect the health, safety or welfare of the public, and it terminates this License or any part thereof, due to that need, Licensee shall not receive any compensation and the Licensor Page 2 of 7 shall not be liable therefor whether for the value of the property taken, damage to the abutting or remaining property or improvements, loss of business or profit, loss of access, or otherwise. Licensee shall, at all times of use under this License, be liable for all liability and/or damage claims for injury or death of persons or property from any cause whatsoever relating to the occupancy of the premises by Licensee, including those arising out of damages or losses occurring on sidewalks and other areas adjacent to the Licensed Premises, during the term of this License or any extension thereof. Licensee agrees to indemnify and save harmless Licensor from any and all claims, causes of action, and damages of every kind for injury to or death of any person and damages to property arising out of the occupancy and use of Licensed Premises or the operations embraced by this License and including acts or omissions of Licensor in connection therewith. Licensee shall carry public liability and property damage insurance covering operations hazards, and including Licensee's obligations under the indemnification provision contained in this License(with a company acceptable to Licensor)with Licensor as a named insured in the sum of$1 million in the aggregate. Should Licensor determine at any time during the term of this License Agreement that the above coverage is inadequate, it shall notice Licensee in writing to increase the amount of such insurance so the same shall be adequate. The failure of Licensee to obtain said additional insurance within thirty (30) days of Licensor's request shall constitute a breach of this License. A copy of the original policy shall be filed with the City Clerk. Page 3 of 7 As part of the consideration for this License Agreement, Licensee shall pay to Licensor the sum of $10.00 (Ten and No/100 Dollars), said sum being non-refundable. Licensee recognizes that this License does not affect the use of the Licensed Premises by Licensor or any entity with a franchise to use City rights-of-way. This Agreement is terminable by either party by giving written notice to the other specifying the date of termination. Said notice shall be given not less than thirty(30)days prior to the termination date therein specified. This License is neither assignable nor transferrable except (1) in conjunction with and as part of Licensee's conveyance of all the abutting property and (2) occupancy and use of the Licensed Premises by a lessee leasing abutting property from Licensee (in which case Licensee is not relieved from its obligations owed to Licensor hereunder). This License survives through probate or warranty deed or lease. In any such event, other than lease of abutting property, Licensor shall be notified of such occurrence by being delivered a copy of the document or documents conveying the abutting property. This License shall include the right of Licensee to have balcony structures which extend into the Licensed Premises. Licensee shall be responsible for all maintenance, repair and upkeep of the Licensed Premises, including, but not limited to, brick pavers, decorative lighting, arches and lighting on arches and curbs. Licensee shall complywith all applicable laws,ordinances,and codes of the federal, state and local governments, including environmental protection regulations. Failure to Page 4 of 7 comply with the Licensor's requirements shall constitute grounds for termination of this agreement. Any notice to Licensor shall be sufficient n if it is mailed or hand-delivered to the Office of the City Manager, City of Beaumont, P. O. Box 3827, Beaumont, Texas, 77704. Any notice to Licensee shall be sufficient if mailed or hand-delivered to Licensee at 595 Orleans, Suite 1500, Beaumont, Texas, 77701. IN WITNESS WHEREOF, the parties have executed this Agreement as of the day of , 2008. LICENSOR CITY OF BEAUMONT By: Kyle Hayes, City Manager LICENSEE CROCKETT STREET DEVELOPMENT dba CROCKETT STREET DISTRICT By: Tom Flanagan, President Crockett Street Development Page 5 of 7 ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned authority, on this day personally appeared KYLE HAYES, City Manager of the City of Beaumont, a municipal corporation of the State of Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and considerations therein expressed, in the capacity therein stated, and as the act and deed of the City of Beaumont. GIVEN under my hand and seal of office this the day of , 2008. Notary Public in and for the State of Texas Page 6 of 7 ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned authority, on this day personally appeared TOM FLANAGAN, President of Crockett Street Development, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and considerations therein expressed, in the capacity therein stated, and as the Representative of Crockett Street District. GIVEN under my hand and seal of office this the day of , 2008. I Notary Public in and for the State of Texas I� Page 7 of 7 B RICH WITH OPPORTUNITY I'Em . � T • E • x • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: December 15, 2008 REQUESTED ACTION: Council consider a resolution accepting maintenance of the street and sanitary sewer improvements on Stone Oak Drive. RECOMMENDATION The administration recommends approval of the following: • Stone Oak Drive from approximately 300 feet south of existing Cardinal Drive to the end of the cul-de-sac. Also, recommended for approval are the sanitary sewer improvements for Stone Oak Drive in the cul-de-sac right-of-way only. BACKGROUND The aforementioned improvements in the subdivision passed final inspection from all entities involved on December 5, 2008. BUDGETARY IMPACT None. RESOLUTION NO. WHEREAS, construction of the street, storm sewer, and sanitary sewer improvements constructed on Stone Oak Drive have been completed as follows: Street, Storm Sewer Stone Oak Drive from approximately 300 feet south of existing Cardinal Drive to the end of the cul-de-sac. Sanitary Sewer Improvements Stone Oak Drive cul-de-sac right-of-way only. WHEREAS, the developers of said street desire to have these improvements accepted and maintained by the City; and, WHEREAS, the director of the Public Works and Engineering Department have determined that said improvements meet city standards and qualify for acceptance for permanent maintenance, and the City Council is of the opinion that said improvements should be accepted and maintained by the City of Beaumont; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the above-referenced street, storm sewer, water and sanitary sewer improvements on Stone Oak Drive, with the exception of streetlights, are hereby accepted by the City of Beaumont and shall be continuously maintained by the City contingent upon filing of the final plat, complete with filings of dedication of all rights-of-way and easements required on the preliminary and final plats and installation of the streetlights. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16`h day of December, 2008. - Mayor Becky Ames - C RICH WITH OPPORTUNITY BEA,IIMON* T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Ingrid Holmes, Public Health Directo MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider a moratorium on the issuance of permits for mobile food establishments within the city limits of Beaumont for a period of ninety(90) days. RECOMMENDATION Administration recommends approval of a moratorium on the issuance of permits for mobile food establishments for a period of ninety(90) days. BACKGROUND Recognizing that mobile food establishments are an increasing business in our community and that as such pose certain public health concerns, the Public Health Department along with other city departments will review the code of ordinances to determine that regulations for those facilities effectively protect health and safety of the community. BUDGETARY IMPACT None RESOLUTION NO. WHEREAS, mobile food establishments are an increasing business in the City of Beaumont; and WHEREAS, the City of Beaumont wishes to review its Code of Ordinances to determine whether regulations for those facilities sufficiently protect the health, safety and welfare of its citizens; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT a ninety(90) day moratorium be and it is hereby placed on the issuance or renewal of permits for mobile food establishments within the city limits of the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16`h day of December, 2008. - Mayor Becky Ames - RICH WITH OPPORTUNITY D r T • E • X • A • s Ci Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tom Warner, Director of Public Works MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider assigning and amending a Ground Lease Agreement at the Beaumont Municipal Airport. RECOMMENDATION Administration recommends authorizing the City Manager to assign the Ground Lease Agreement with Gary and Barbara Giarraputo to J. Thad Heatfield and to amend the term of lease. BACKGROUND In July, 2001, Council approved a Ground Lease Agreement with Gary and Barbara Giarraputo for the construction of an aircraft storage hangar on property located at the Municipal Airport. The agreement includes the lease of approximately 10,500 square feet of property located east of the large south hangar along T-Hangar C's taxiway. The storage hangar built by the Giarraputos is a 60 ft. x 75 ft. metal aircraft storage hangar with asphalt approaches. The term of the original Ground Lease Agreement was thirty(30)years beginning September 1, 2001. The rental rate established by the agreement was fifteen cents($.15)per square foot per year for the first five years. Every five years thereafter, the rate increases by five cents ($.05). The current rental rate is twenty cents($.20)per square foot, or$2,100 annually. The terms of the agreement regarding the allowable use of premises states that the Lessees are allowed to assign the lease, subject to the City's approval. Mr. Heartfield is purchasing the Giarraputo's hangar and has requested assignment of the ground lease. Additionally, Mr. Heartfield has requested that the term of the original lease be amended to include six(6)five year renewal options upon expiration of the original lease on August 31, 2031. The Administration finds no objection to the request and recommends the assignment of the lease to J. Thad Heartfield with an effective date of January 1, 2009 and the amendment of the lease term to include six(6) five year options. BUDGETARY IMPACT Revenues from the lease agreement are deposited to the airport fund. ��(7THE �L R-ff 1L'L LAW FIRM J.MAD HEARTHELD Phone: 409.866.3318 409.866.2800 Direct Dial December 5,2008 fax: 409.866. 789 Shad @jth-law.com Brenda Beadle Via fax- 4091880-3X32 Capital Projects Manager City of Beaumont P. O. Box 3827 Beaumont,Texas 77704 Re: Request for assignment of Ground Lease Agreement Beaumont Municipal Airport Dear Ms. Beadle: This will confirm our recent conversations regarding the Ground Lease Agreement currehtly held by Mr. and Mrs. Giarraputo, As previously mentioned, I would like City approval to bee6me the lessor of the Beaumont Municipal Airport Ground Lease Agreement entered into by and betN�een the City of Beaumont and Gary Giarraputo and Barbara Giarraputo dated the 24th day of July,2101. If the City of Beaumont approves my request to become the new lessor of this Ground Lase Agreement, I am prepared to be bound by the same terms and conditions as agreed to by Mr.land Mrs.Giarraputo. Additionally,this will also confirm my request that the term of the Agreement be amended to include six 5-year option terms, for a total option period not to exceed 30 years,to be exercised beginning August 31, 2031. If you need any further information from me or the Giarraputos,please do not hesitate to dive us a call. Sincerely, J. Thad artfieId JTH/kp The undersigned consent to request f r assi nt-otground lease: ✓ i c. Grary i spot Barbara Giarraputo I 2195 DOWLrN ROAD BrAvmowr, Trxns 77706 wwww.j[h-law.com i TO 3L-)yd SJNIM 1NownV39 668609860V CT :ZZ 80OZ/TO/ZT RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be, and he is hereby, authorized to execute an Assignment of Agreement, substantially in the form attached hereto as Exhibit"A," assigning the Ground Lease Agreement at the Beaumont Municipal Airport with Gary and Barbara Giarraputo to J. Thad Heartfield effective January 1, 2009. BE IT FURTHER RESOLVED that the City Manager be, and he is hereby, authorized to execute Addendum One to the assigned Ground Lease Agreement, substantially in the form attached hereto as Exhibit "B," which includes six (6) five-year renewal options upon expiration of the original lease on August 31, 2031. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of December, 2008. - Mayor Becky Ames - ASSIGNMENT OF AGREEMENT COVENANT OF ASSIGNEE TO ASSUME AND INDEMNIFY RELEASE OF ASSIGNOR FROM LIABILITY STATE OF TEXAS COUNTY OF JEFFERSON This agreement is made on the lst day of January, 2009 between Gary Giarraputo and Barbara Giarraputo, hereinafter referred to as "Assignors" and J. Thad Heartfield, herein called "Assignee" and the City of Beaumont, a municipal corporation of the State of Texas acting herein by its duly authorized City Manager, herein called "Owner." WHEREAS, on the I"day of September, 2001, Assignors entered into a Ground Lease Agreement with Owner leasing certain property from Owner for purposes of constructing and operating an aircraft storage hangar said "Ground Lease Agreement" attached hereto as Exhibit "A" and made a part hereof for all purposes herein called "Agreement"; and, WHEREAS, Assignors desire to assign this Agreement to Assignee such that Assignee acquires all the rights and liabilities of said Agreement and Assignors are released from all liabilities and obligations under said Agreement by Owner. It is therefore agreed: WITNESSETH: I. That Assignors hereby assign to Assignee all interest in the lease attached as Exhibit"A" with Owner dated the I" day of September, 2001 including all exhibits, documents, attachments and addendums related thereto. II. The Assignee hereby assumes and covenants to perform all the obligations of the Assignors under Exhibit "A" hereto and guarantees to indemnify, defend and hold Assignors harmless from any claim or demands made under said Exhibit "A" which relate to occurrences after the date of this agreement. III. The undersigned Owner does hereby consent to assignment as set out in this document and does further release, discharge and relinquish the Assignors, Gary Giarraputo and Barbara Giarraputo, from all claims, debts, demands or causes of action that the undersigned Owner has or may have as a result of or arising out of the aforesaid Agreement attached as Exhibit "A". Any debts, claims, demands or causes of action accruing prior to the date of this assignment are EXHIBIT "A" specifically not extinguished hereby. IV. The undersigned Assignee and Owner do hereby ratify and confirm the Agreement attached as Exhibit "A" and all accompanying documents except as the same may have been altered and amended by this Agreement. V. Assignment of the Agreement found in Exhibit "A" shall commence on the 1" day of January, 2009. OWNER, THE CITY OF BEAUMONT BY: Kyle Hayes, City Manager ATTEST: BY: ASSIGNORS, Gary Giarraputo Barbara Giarraputo ASSIGNEE, J. Thad Heartfield EXHIBIT A STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS COUN Y OF JEFFERSON § GROUND LEASE AGREEMENT THIS AGREEMENT is made and entered into by and between the City of Beaumont, Texas, a municipal corporation, hereinafter called "Lessor," and Gary Giarraputo and BarbFt.c.-:.q Giarraputo, hereinafter called "Lessees." Lessor and Lessees, for and in consideration of the rents, covenants and agreements herein contained, mutually covenant and agree as follows: 1. LEASED PREMISES 1 .1 Lessor leases to Lessees and Lessees hires from Lessor, for the purposes of constructing and operating Aircraft Storage Hangar as provided herein and for no other purpose, those certain premises located on the Beaumont Municipal Airport in the County of Jefferson, State of Texas, containing 10,500 square feet of land, and being more particularly described in Exhibit "A" attached hereto and made a part hereof. 2. TERM 2.1 This lease shall be for a term of thirty (30) years, referred to as the "lease term," commencing on the 1st day of September, 2001, the "effective date," which is 30 days after passage of the resolution authorizing this lease, and ending on the 31 st day of August, 2031; subject, however, to earlier termination as hereinafter provided. 2.2 This lease shall terminate and become null and void without further notice on the expiration of the term specified, and any holding over by Lessees after expiration of said term shall not constitute a renewal hereof or give Lessees any rights hereunder in or to the leased premises. 3. RENT 3.1 Lessees agree to pay Lessor as rental for the use and occupancy of the leased premises the following sums, subject to adjustment as hereinafter provided: Fifteen cents ($.15) per square foot per year, payable in advance on or before the 1st day of September of each year during the term of this s lease. The minimum annual rental during the term of the agreement shall be one hundred dollars ($100). 3.1.1 For the sixth (6th) through tenth (10th) years of the term hereof, the annual rental shall increase to twenty cents ($.20) per square foot per year. 3.1.2 For the eleventh (11th) through fifteenth (15th) years of the term hereof, the annual rental shall be increased to twenty-five cents ($.25) per square foot per year. 3.1.3 For the sixteenth (16th) through twentieth (20th) years of the term hereof, the annual rental shall be increased to thirty cents ($.30) per square foot per year. 3.1.4 For the twenty-first(21 st)through twenty-fifth (25th) years of the term hereof, the annual rental shall be increased to thirty-five cents ($.35) per square foot per year. 3.1.5 For the twenty-sixth (26th) through thirtieth (30th) years of the term hereof, the annual rental shall be increased to forty cents ($.40) per square foot per year. 3.2 All installments of rent hereunder, when and as the same become due and payable, shall be paid to the City of Beaumont, Central Services Department, P. 0. Box 3827, Beaumont, Texas 77704, or to such other office or officer of Lessor as the City Manager may designate in writing in advance. 4. CONSTRUCTION BY LESSEES 4.1 Lessees shall be required to erect on the leased premises permanent Hangar(s) containing a minimum of 10,500 square feet of space and paved driveways accessing taxiways. Lessor shall have the right of reasonable approval of plans and specifications for the construction of said building and appurtenances. The building and its appurtenances shall be constructed in accordance with all applicable city, state and federal laws, ordinances, rules and regulations. 4.2 Lessees shall comply with the following construction schedule: 4.2.1 Within two (2) months from the effective date of this agreement, Lessees shall furnish the City Manager or his designee detailed plans and specifications for construction of the building and its appurtenances. The City Manager or his designee shall approve or disapprove same. The City Manager or his designee PP PP Y 9 9 e - 2 - may not unreasonably withhold his approval of the construction plans and specifications. If the City Manager or his designee disapproved the construction plans and specifications, he shall provide Lessees a written statement of reasons for his disapproval. 4.2.2 Within six (6) months from the effective date of this agreement, Lessees shall commence construction of said building under a general construction contract requiring completion within twelve (12) months of the date of execution of this agreement. 4.3 No structure, or other improvement, shall be placed on the leased premises which does not comply with the plans, specifications and locations approved by Lessor. Lessees shall make no material addition to or alteration of any structure erected on the leased premises unless and until plans and specifications of the proposed addition or alteration shall have first been submitted to and approved by the City Manager or his designee. 4.4 Construction shall be performed by a contractor(s) licensed by the City of Beaumont to provide the required services. All construction shall adhere to all appropriate federal, state and local laws, regulations, standards, codes and ordinances. 4.5 The approval by Lessor of any plans and specifications refers only to the conformity of such plans and specifications to the general architectural plan for the leased premises and such approval shall not be withheld unreasonably. Such plans and specifications are not approved for architectural or engineering design and Lessor, by approving such plans and specifications, assumes no liability or responsibility for any defect in any structure constructed from such plans or specifications. All plans and specifications must be submitted to the City's Building Code Enforcement Division for review and approval. All applicable permits must be obtained. 5. TAXES 5.1 In addition to the rental, Lessees shall pay and discharge all taxes, general and special assessments, and other charges of every description which during the term of this agreement may be levied on or assessed against the leased premises and all interests therein and all improvements and other property thereon. Lessees shall pay all such taxes, charges and assessments to the public officer - 3 - charged with collection thereof before same shall become delinquent, and Lessees agrees to indemnify and save harmless Lessor from all such taxes, charges and assessments. 6. UTILITIES 6.1 Lessees shall pay all charges for water, heat, gas, electricity, telephone, sewers, and any and all other utilities used on the leased premises throughout the term of this lease, including any connection fee and pro-rata charges. 7. USE OF PREMISES 7.1 Lessees shall use the leased premises only for the storage of personal or business aircraft. No other use is permitted without the prior written consent of the City Manager or his designee. The sale or use of alcoholic beverages is prohibited without the prior written consent of the City Manager or his designee. Additionally, Lessees will be allowed to sublet the premises, subject to approval by Lessor. Approvals required hereunder will not be unreasonably withheld. 8. ENCUMBRANCE OF LEASEHOLD ESTATE 8.1 Lessees may, at any time, encumber the leasehold interest, by deed of trust, mortgage, or other security instrument, without obtaining the consent of Lessor, but no such encumbrance shall constitute a lien on the fee title of Lessor, and the indebtedness secured thereby shall at all times be and remain inferior and subordinate to all the conditions, covenants, and obligations of this agreement and to all rights of Lessor hereunder. 8.2 If at any time after execution and recordation in Jefferson County, Texas, of any such mortgage or deed of trust, the mortgagee or trustee therein shall notify Lessor in writing that any such mortgage or deed of trust has been given and executed by Lessees, and shall at the same time furnish Lessor with the address to which it desires copies of notices to be mailed. Lessor hereby agrees that it will thereafter mail to such mortgagee or trustee, at the address so given, copies of any and all notices which Lessor may from time to time give or serve upon Lessees under and pursuant to the terms and provisions of this agreement. 8.3 Any lender on the security of the leasehold shall have the right at any time during the term of this agreement: 8.3.1 To do any act or thing required of Lessees hereunder and all such acts or things - 4 - done and performed shall be as effective to prevent a forfeiture of Lessees's rights hereunder as if done by Lessees; and, 8.3.2 To realize on the security afforded by the leasehold estate by foreclosure or power of sale or other remedy afforded at law or in equity or by the security documents and to transfer, convey, or assign the title of Lessees to the leasehold estate created hereby to any purchaser at any such foreclosure sale, and to acquire and succeed to the interest of Lessees hereunder by virtue of any such foreclosure sale. 9. REPAIRS AND RESTORATION 9.1 Lessees, at Lessees's own cost and expense at all times during the term of this lease, agrees to keep and maintain,or cause to be kept and maintained, all buildings and improvements which may be erected on the leased premises in a good state of appearance and repair, reasonable wear and tear excepted. Improvements are to include driveways, constructed ramps or taxiways on or off of leased premises to provide access to public taxiways. Failure to maintain the buildings and improvements in a good state of appearance and repair shall be considered a default in the performance of the agreement and remedied as in accordance with the provisions of this lease. 9.2 The determination of whether the buildings and improvements are in compliance with the maintenance requirements of this provision shall be the sole discretion of the Lessor. 9.3 In the event the building or any building or improvements thereafter constructed on the leased premises is damaged by fire or any other casualty, the Lessees shall have the option to: 9.3.1 Repair, reconstruct or replace the damaged building or improvements, with reasonable diligence, so that the building, to the extent originally constructed by Lessees, is restored to substantially the condition it was in prior to the happening of the casualty; provided, however, that if the commencement, construction, or completion of said repair, reconstruction, or replacement work shall be prevented or delayed by reason of war, civil commotion, acts of God, strikes, governmental restrictions or regulations, or interferences, fire or other casualty, or any other reason beyond the control of Lessees, whether similar - 5 - to any of those enumerated or not, the time for the commencing or completing, or both, of the construction of said building, as the case may be, shall automatically be extended for the period of each such delay. 9.3.2 Remove all structures, improvements, debris and remains and return the leased premises to its original condition within thirty (30) days of the casualty. If the leased premises are not returned to its original condition within the time specified, Lessor may remove or cause to be removed any remaining structures or debris and return the leased premises to its original state. All costs shall be borne by the Lessees. In addition, the lease shall terminate with no prorata return of any rentals paid. 10. LIENS 10.1 Lessees shall not suffer or permit any mechanics' liens or other liens to be filed against the fee of the leased premises nor against Lessees's leasehold interest in the land nor any buildings or improvements on the leased premises by reason of any work, labor, services, or materials supplied or claimed to have been supplied to Lessees or to anyone holding the leased premises or any part thereof through or under Lessees. 10.2 If any such mechanics' liens or materialmen's liens shall be recorded against the leased premises, or any improvements thereof, Lessees shall cause the same to be removed or, in the alternative, if Lessees in good faith desires to contest the same, Lessees shall be privileged to do so, but in such case Lessees hereby agrees to indemnify and save Lessor harmless from all liability for damages occasioned thereby and shall, in the event of a judgment of foreclosure on said mechanics' lien, cause the same to be discharged and removed prior to execution on such judgment. 11. INSURANCE AND INDEMNIFICATION 11.1 Lessees shall indemnify, defend, and hold harmless Lessor, its officers, agents and employees from any and all liabilities, demands, actions, losses, damages and costs, including all costs of defense thereof caused by or arising out of, or in any way related to Lessees's use or occupancy of the leased premises or occurring on the leased premises during the term of the lease or caused by, arising out of, or in any way related to operations conducted by Lessees including claims, liabilities and - 6 - actions based upon acts, omission, or negligence of the Lessor, its officers, agents, and employees. Upon demand, Lessees shall, at its own expense, defend Lessor, its officers, agents, and employees, through counsel acceptable to Lessor, against any and all liabilities, claims, demand, actions, damages and costs. 11.2 Lessees shall purchase and maintain in full force and effect insurance as provided herein, with the City of Beaumont as a named insured. A certificate of insurance, or a copy of the insurance policies, shall be furnished to Lessor and shall provide that the Lessor shall receive ten days' prior written notice before any change or cancellation of any policy. The limits established herein may be modified by prior written consent of the City Manager or his designee and shall be increased if the Lessor's standards are amended to provide increased limits. COMMERCIAL GENERAL LIABILITY COVERAGE: Bodily injury (each accident): $300,000.00 Property damage (each accident): $100,000.00 12. SUBLEASES 12.1 Lessees may not sublease or assign any portion of the agreement or any of the premises leased to Lessees, nor shall a foreclosing trustee, lien holder, or mortgagee do so, to any other person, firm, or corporation without the prior consent, in writing, of Lessor, which consent shall not be unreasonably withheld. 13. DEFAULT AND REMEDIES 13.1 Should Lessees default in the performance of any covenant, condition, or agreement in this lease, and such default is not corrected within ten (10) days after receipt of written notice from Lessor to Lessees and any lender as required by Section 8, Lessor may declare this lease, and.all rights and interests created by it, to be terminated. Upon Lessor electing to terminate, this lease shall cease and come to an end as if that were the day originally fixed herein for the expiration of the term hereof, and including payment of ground rental beyond that date. Upon such event, Lessees must remove building and improvements constructed and return the leased premises to its original condition within thirty (30) days. Failure to so remove the structure and improvements results in the Lessor's right to obtain possession and ownership of the building and improvements. Lessor, its agent or attorney, may - 7 - resume possession of the prerr and by such action obtain ownership he building constructed on the leased premises and may at its option relet the same for the remainder of the term. 13.2 Any termination of this lease as herein provided shall not relieve Lessees from the payment of any sum or sums that shall then be due and payable to Lessor hereunder, or any claim for damages then or theretofore accruing against Lessees hereunder, and any such termination shall not prevent Lessor from enforcing the payment of any such sum or sums or claim for damages by any remedy provided for by law, or from recovering damages from Lessees for any default thereunder. All rights, options, and remedies of Lessor contained in this lease shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and Lessor shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by law, whether or not stated in this lease. No waiver by Lessor of a breach of any of the covenants, conditions, or restrictions of this lease shall be construed or held to be a waiver of any succeeding or proceeding breach of the same or any other covenant, condition, or restriction herein contained. 14. GENERAL PROVISIONS 14.1 Lessees may not conduct any other aeronautical activities within or upon the leased premises without the prior written consent of the City Manager or his designee. 14.2 The Lessees for himself, his personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that; 14.2.1 No person on the grounds of race, color, or national original shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. 14.2.2 That in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination. 14.2.3 That the Lessees shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said - 8 - Regulat may be amended. 14.3 That in the event of breach of any of the preceding nondiscrimination covenants, Lessor shall have the right to terminate the license, lease, permit, etc., and to reenter and repossess said land and the facilities thereon, and hold the same as if said lease had never been made or issued. 14.4 During the time of war or national emergency, Lessor shall have the right to lease the landing area or any part thereof to the United States Government for military or naval use, and, if such lease is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. 14.5 No right or privilege has been granted which would operate to prevent any person, firm or corporation operating aircraft on the Airport from performing any services on its own aircraft with its own regular employees (including but not limited to maintenance, repair, and fueling) that it may choose to perform. 14.6 It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right forbidden by Section 308(a) of the Federal Aviation Act of 1958 or for aeronautical activities. 14.7 Lessor reserves the right, in a reasonable and nondiscriminatory manner,. to further develop or improve the area of the Airport as it sees fit, regardless of the desires or views of Lessees and without interference or hindrance. 14.8 Lessor shall have the right, but not the obligation, to maintain and keep in repair the landing area of the airport and all publicly owned facilities of the airport, together with the right to direct and control all activities of Lessees in this regard. 14.9 All hangars, buildings, properties or land on the Airport, shall be maintained in a clean, attractive, weed free, well painted, junk free condition. Lessor shall ensure that all debris and trash are removed from within and around the leased premises in accordance with all applicable laws or requirements.. Lessor is responsible for providing proper trash receptacles and storing such within the hangar. Lessees shall not allow the accumulation of materials, goods, trash or equipment around the exterior of the hangar. Lessees shall maintain cultivated areas in accordance with airport regulations. 14.10 Lessor reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstructions together with the right to prevent the erection of any - 9 - building or other structure on of acent to the Airport which would limit t isefulness of the Airport or constitute a hazard to aircraft. 14.11 This agreement shall be subordinate to the provisions of any existing or future agreement between Lessor and the United States, relative to the operation or maintenance of the Airport. 14.12 Incorporated into this agreement, by reference and as though set forth herein verbatim, are the Minimum Standards and Requirements for the Conduct of Commercial Aeronautical Services and Activities adopted by the Lessor. Such minimum standards shall be lawful, reasonable and nondiscriminatory. Further, all parties hereto agree to comply with all rules and regulations of the Federal Aviation Administration and the laws of the United States of America, the State of Texas, and all laws, regulations, rules and ordinances of the City of Beaumont as they now exist or may hereafter be enacted or amended, and will not permit the premises covered by this agreement to be used for any unlawful or improper purpose. 14.13 The standards and regulations enacted by the governmental agency responsible for the operation of the Airport, now or in the future, may provide for use charges to be paid by those using, occupying, or conducting operations at the Airport. Such charges may be based upon square footage, receipts or other reasonable basis,to be established by such standards and regulations. Lessees agrees to pay such charges as same are due and owing under any such standards or regulations now or hereafter in effect. Any such use charges shall be lawful, reasonable and nondiscriminatory. 14.14 Lessor may, on account of the breach of any provision hereof, including the standards and regulations incorporated herein by reference, terminate this agreement and eject the party in violation in accordance with the provisions of this lease. 14.15 The purpose of the lease and the operations to be conducted by Lessees or sublessees, and the identity of the premises to be occupied, are set forth in this lease. No other operations, business, or occupancy may be had or done without the additional written consent of the Lessor. 14.16 It is mutually understood and agreed that nothing in the agreement is intended or shall be construed as in any way creating or establishing the relationship of partners or co-partners between the parties hereto, or as constituting the Lessees as an agent or representative of the Lessor for any purposes or in any manner whatsoever. - 10 - 14.17 Lessees shall p t Lessor's agents, representatives, or ployees to enter on the leased premises for the purpose of inspection, to determine whether Lessees is in compliance with the terms of this lease, for purposes of maintaining, repairing, or altering the premises, or for the purpose of showing the leased premises to prospective Lessees, purchasers, mortgagees, or beneficiaries under trust deeds. 14.18 No waiver by Lessor of any default or breach of any covenant, condition, or stipulation herein contained shall be treated as a waiver of any subsequent default or breach of the same or any other covenant, condition, or stipulation hereof. 14.19 This agreement shall be construed under and in accordance with the laws of the State of Texas,and all obligations of the parties created hereunder is performable in Jefferson County,Texas. 14.20 In case anyone or more of the provisions contained in this agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this agreement shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein. 14.21 This agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter. 14.22 No amendment, modification, or alteration of the terms hereof shall be binding unless the same be in writing, dated subsequent to the date hereof and duly executed by the parties hereto. 14.23 Lessees shall not erect, paint or place any exterior signs on the leased premises or the structure placed thereon. 14.24 Only aircraft may be stored in Hangars. No other non-aeronautical equipment, combustible products, or items may be placed there for use or storage. 14.25 Lessees are granted the right to operate from temporary facilities on the leased premises pending occupancy of his permanent structure. 15. OWNERSHIP BUILDING 15.1 Lessor, upon expiration of the term hereof or upon earlier termination of this agreement as provided herein, shall remove or cause to be removed the existing structure and any improvements from the leased premises and return said leased premises to its original condition within sixty (60) days. - 11 - Lessees may negotiate a grou :ase renewal for the leased premises, , ough, the Lessees is not obligated to enter into any subsequent agreement. 16. APPROVAL OF—FF� 16.1 The parties recognize that location of Lessees's operation may require amendment of the airport master plan and approval by the Federal Aviation Administration and the Texas Department of Transportation. Lessor agrees to make such amendment as may be necessary and to submit same to said agencies for approval. This agreement is contingent upon such approval, and in the event the amendment shall not be approved, this agreement shall terminate and both parties shall be released from all obligations herein contained. 17. NOTICES 17.1 All notices provided to be given under this agreement shall be given by certified mail or registered mail, addressed to the proper party at the following address: LESSOR City of Beaumont Central Services 801 Main Street, Room 315 Beaumont, Texas 77701 LESSEES Gary and Barbara Giarraputo 455 Keith Road Beaumont, Texas 77713 EXECUTED this 24th day of July 2001. LESSOR: By: Ste hen J. o cz , Y MANAGER LESSEES: By: Gary Gia aputo, OW R By: CAA IIRJ �kCUASGQC -� Barbara Giarraputo, OWNER aAGmdLease-gg.wpd - 12 - ADDENDUM ONE TO GROUND LEASE AGREEMENT This Addendum modifies the Ground Lease Agreement made the I` day of January, 2009 between the City of Beaumont, Texas hereinafter referred to as "Lessor" and J. Thad Heartfield, hereinafter called "Lessee." The Addendum is effective the 1`day of January, 2009 and adds the following provisions to the Agreement: 2. TERM 2.3 This lease shall be renewed in five-year terms, not to exceed thirty(30) years, beginning September 1, 2031,with the written approval of the Lessor and the Lessee no less than thirty (30) days prior to the end of the current term. 3.RENT 3.1.6 For the first renewal term of five years, the annual rental shall be increased to forty-five cents ($.45)per square foot per year. 3.1.6 For the second renewal term of five years, the annual rental shall be increased to fifty cents ($.50)per square foot per year. 3.1.6 For the third renewal term of five years, the annual rental shall be increased to fifty-five cents ($.55) per square foot per year. 3.1.6 For the fourth renewal term of five years, the annual rental shall be increased to sixty cents ($.60)per square foot per year. 3.1.6 For the fifth renewal term of five years, the annual rental shall be increased to sixty-five cents ($.65) per square foot per year. 3.1.6 For the sixth renewal term of five years, the annual rental shall be increased to seventy cents ($.70)per square foot per year. This Addendum entered into as of the day and year written above. CITY OF BEAUMONT, TEXAS J. THAD HEARTFIELD LESSOR LESSEE Kyle Hayes J. Thad Heartfield EXHIBIT "B" RICH WITH OPPORTUNITY BEA,IIMON* T - E • X • A • S REGULAR MEETING OF THE CITY COUNCIL COUNCIL CHAMBERS DECEMBER 16, 2008 1:30 P.M. AGENDA CALL TO ORDER * Invocation Pledge Roll Call * Presentations and Recognition * Public Comment: Persons may speak on scheduled agenda items 1-6/Consent Agenda * Consent Agenda GENERAL BUSINESS 1. Consider authorizing the renaming of the Literacy Depot Branch of the Beaumont Public Library System"The Maurine Gray Literacy Depot" 2. Consider approving a contract for application and grant management services related to the Hazard Mitigation Grant Program 3. Consider authorizing the City Manager to execute an Industrial District Contract with Eastman Chemical Company 4. Consider authorizing the City Manager to execute an Industrial District Contract with Chemtrade Refining Services, Inc. 5. Consider authorizing the award of a six(6)month contract for liquid chlorine for use by the Water Utilities Department 6. Consider approving the purchase of a dump truck for use by the Streets and Drainage Division COMMENTS * Councilmembers/City Manager comment on various matters * Public Comment (Persons are limited to 3 minutes) EXECUTIVE SESSION * Consider matters related to contemplated or pending litigation in accordance with Section 551.071 of the Government Code: Tina Lewallen vs. the City of Beaumont Linda Thomas vs. the City of Beaumont and John Savoy Entergy Texas, Inc. Rate Increase Request, Docket No. 34800 Persons with disabilities who plan to attend this meeting a n d who may ne ed au xili a ry aid or services are requested to contact Lenny Caballero at 880-3716 three days prior to the meeting. 1 December 16,2008 Consider authorizing the renaming of the Literacy Depot Branch of the Beaumont Public Library System"The Maurine Gray Literacy Depot" RICH WITH OPPORTUNITY 11EM . � T • E • X • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Tyrone E. Cooper?L MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider a resolution authorizing the renaming of the Literacy Depot Branch of the Beaumont Public Library System "The Maurine Gray Literacy Depot." RECOMMENDATION Administration recommends approval of a resolution authorizing the renaming of the Literacy Depot Branch of the Beaumont Public Library System "The Maurine Gray Literacy Depot." BACKGROUND The Library Commission has requested that the Literacy Depot Branch of the Beaumont Public Library System be named The Maurine Gray Literacy Depot. Maurine Gray, former Director of the Beaumont Public Library System, was instrumental in the establishment of the Literacy Depot and renaming it in her remembrance would be a fitting memorial in appreciation for her devotion to the City of Beaumont. BUDGETARYIMPACT None. RESOLUTION NO. WHEREAS, the Library Commission has requested the renaming of the Literacy Depot Branch to The Maurine Gray Literacy Depot in memory of Maurine Gray, former Director of the Beaumont Public Library System; and WHEREAS, it has been deemed appropriate to rename the Literacy Depot Branch to The Maurine Gray Literacy Depot; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the Literacy Depot Branch is hereby renamed The Maurine Gray Literacy Depot. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of December, 2008. - Mayor Becky Ames - 2 December 16,2008 Consider approving a contract for application and grant management services related to the Hazard Mitigation Grant Program RICH WITH OPPORTUNITY IIEA,111�1011T T • E . X . A . S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager C JL PREPARED BY: Chris Boone, Community Development Director MEETING DATE: December 16, 2008 REQUESTED ACTION: Consider entering into a contract with Jeffrey S. Ward and Associates for application and grant management services related to the Hazard Mitigation Grant Program. RECOMMENDATION The Administration recommends approval of entering into a contract with Jeffrey S. Ward and Associates for application and grant management services related to the Hazard Mitigation Grant Program to secure funding for the buyout of homes flooded as a result of Hurricane Ike. BACKGROUND: As a result of Hurricane Ike, 25 homes located within the floodplain received flood damage. Because the City's floodplain land use ordinance requires that homes in the floodplain that are substantially damaged be elevated prior to repair, many residents have found elevating their homes and repairing them difficult if not impossible. Funds may be available to purchase some or all of these properties and possibly assist with relocation expenses for the residents. The City would contract with Jeffrey S. Ward & Associates of Purceville, Virginia to expedite this buy-out process. The principals of Jeffrey S. Ward & Associates have over 20 years of combined experience in mitigation programs and have successfully assisted the City with mitigation projects, including the Calder drainage project. Fees of for this contract include a $5,000 application fee, an $800 fee for each home acquisition and an $800 fee for each occupant relocation. A conservative figure of buying out 25 homes would result in fees of$45,000. Because the grant would cover 75% of the consultant fees for acquisition and relocation, the City's cost would be $15,000 if all 25 homes were acquired. BUDGETARY IMPACT Funds are available for this expenditure in the FY2009 Budget. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager is hereby authorized to execute contracts with Jeffrey S.Ward and Associates for application and grant management services related to the Hazard Mitigation Grant Program to secure funding for the buyout of homes flooded as a result of Hurricane Ike, said agreements substantially in the form attached hereto as Exhibits "A" and "B." PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16`h day of December, 2008. - Mayor Becky Ames - Agreement for Personal Services STATE OF TEXAS § COUNTY OF JEFFERSON § CONSULTING SERVICES FOR GRANT CITY OF BEAUMONT § APPLICATION DEVELOPMENT This is an agreement by and between the City of Beaumont, Texas, (CITY), and Jeffrey S. Ward &Associates, Inc., (CONTRACTOR). WHEREAS CITY had properties damaged by Hurricane Ike; and WHEREA The State of Texas has called for Hazard Mitigation Grant Program (HMGP) applications for acquisition of flood structures; and WHEREAS CONTRACTOR is in the business of providing acquisition implementation services for awarded HMGP grants; and WHEREAS CITY desires to contract with CONTRACTOR to provide such services, NOW, THEREFORE, CITY and CONTRACTOR mutually agree as follows: Scope of Services Basic Ar 4uliltion'-sorvices TASK 1 - Review and Oversight of Title Company Activities The Contractor will ensure that the Title Company activities are performed in a timely manner and in accordance with the terms of the contract. The Contractor will review Title Search and Title Insurance Commitments to ensure that they meet the requirements of the contract. If problems are encountered, the Contractor will seek resolution from the Title Company. TASK 2 - Review of Appraisal Each appraisal will be reviewed for compliance with the Uniform Standards for Professional Appraisal Practices (USPAP) and Grant agency requirements. The appraiser's estimate of value should be well documented and supported by the best comparable sale data available. Errors, omissions and unsupported conclusions will be brought to the attention of the appraiser and the report will be revised as needed to meet the reviewer's requirements. An approved estimate of value will be prepared. Should a property owner later challenge the Determination of Compensation and obtain their own appraisal, the Contractor will review owner's appraisal and a revised Offer to Sell will be prepared as appropriate. The review of owner appraisals and the preparation of revised offers will be billed for each parcel as appropriate. TASK 3 — Develop Data for Determining Compensation Information provided by the community will be reviewed and an amount of compensation for each parcel will be recommended. The Contractor will analyze the appraisal and/or community information to extract the needed information for the preparation of the Statement of Determination of Compensation and Offer to Sell Real Property. Duplication of Benefits information will be reviewed and proper deductions from value will be made. EXHIBIT "N' Note: Duplication of Benefits data is only as good as the data provided by the Community and/or the homeowner. Contractor will not be responsible for duplication of benefits data not known or withheld at the time of the development of the Determination of Compensation. Every effort will be made to obtain complete and accurate Duplication of Benefits data up to the point of settlement of the property. TASK 4 - Prepare Determination of Compensation and Offer to Sell Real Property Utilizing the data developed or obtained in Task 3, the Contractor will prepare the following documents for the City's review: (1) Letter to each parcel owner explaining the acquisition process and their rights and options, to be signed by the Community official, (2) a Statement of Determination of Compensation for each parcel to be signed by the Community official, and; 3 an Offer to Sell Real Property agreement for each parcel. TASK 5 — Meeting with Owners Each parcel owner will be scheduled for a personal meeting at which time the letter from the City explaining the acquisition process and the owner's rights and options will be reviewed. The Statement of Determination of Compensation and Offer to Sell Real Property will also be explained to each parcel owner. If duplication of benefits deductions are made and the owner has documentation to support a revision to the deductions or to support a reimbursement, appropriate adjustments will be made. The meetings will be conducted in facilities provided by the client. Following this meeting, the offer to sell will be presented to the owner, by the City. TASK 6 - Prepare Deeds The Contractor will provide the Title Company a sample Deed for each parcel in a form that meets the requirements of the FEMA Section 404 program and/or the appropriate Grant agency. The Deed will be suitable for recording with the Recorder of Deeds in the appropriate City. This Deed will recite the true consideration to be paid, will identify the interest in the land to be acquired and will include appropriate deed restrictions as directed by FEMA and/or the Grant agency. TASK 7 - Oversee and Coordinate Settlements The title company will be responsible for scheduling closing with each parcel owner and for the preparation of all documents necessary for closing. These activities will be monitored to ensure that they are performed in a timely manner and that all matters are properly coordinated. A listing will be prepared and provided to the Client prior to each closing which identifies the amount needed for disbursement by the title company at the closing. The listing will identity each parcel by parcel number, owner name, address of property and amount of compensation. The client will be advised to deposit the needed funds in the Title Company escrow prior to closing. TASK 8 - Prepare and Maintain Hard Copy Case Files A hard copy case file for each parcel purchased will be prepared and submitted to the client. This file will contain at a minimum: the application package from the owner; a copy of the appraisal; a copy of the letter; a copy of the Determination of Compensation; a copy of the Offer to Sell and any revisions thereto; a copy of the final title insurance policy; and a copy of the recorded Deed. Notes regarding owner meetings and various discussions will be included in the case file as appropriate. Total for Acquisition Service - $800.00 per parcel Additional Task—as needed TASK 9 - Comparable Housing and Tenant Relocation Services The Contractor will review eligibility for owner comparable replacement home benefits or tenant relocation benefits. The Contractor will obtain information from each owner or tenant and calculate benefit amounts to be paid. The Contractor will prepare an Agreement for each eligible owner or tenant and will oversee the payment of benefits. Comparable Housing and Tenant Relocation Services - $800.00 per parcel The Consultant will contract for title services and for appraisals on behalf of the City and will be responsible for overseeing the title company and appraisal contractors to ensure that they meet the requirements of the Grant. The cost of the appraisals and title work are not part of the contractor's above mentioned per parcel fee. General Contract Provisions • The City will provide space and necessary equipment for on-site work in connection with the acquisition and relocation services. • The Consultant will contract directly with the appraisal firm and will invoice the City for the actual cost of the appraisals. • Consultant will invoice the City for services as costs are incurred. Checks will be made payable to Jeffrey S. Ward & Associates, Inc. at 14401 Bookcliff Ct., Purcellville, VA 20132. Federal Tax ID Number 01-0722967. • This contract is terminable at the will of either party. PASSED AND APPROVED this day of , 2008. CONSULTANT City of Beaumont Jeffrey S. Ward, President STATE OF TEXAS § COUNTY OF JEFFERSON § CONSULTING SERVICES FOR GRANT CITY OF BEAUMONT § APPLICATION DEVELOPMENT This is an agreement by and between the City of Beaumont,Texas,(CITY),and Jeffrey S.Ward&Associates, Inc., (CONTRACTOR). WHEREAS CITY had properties damaged by Hurricane Ike;and WHEREAS The State of Texas has called for Hazard Mitigation Grant Program applications for acquisition of flood structures and for small flood control projects;and WHEREAS CONTRACTOR is in the business of providing consulting services regarding the preparation of such applications; and WHEREAS CITY desires to contract with CONTRACTOR to provide such services, NOW, THEREFORE, CITY and CONTRACTOR mutually agree as follows: I. SCOPE OF SERVICES CONTRACTOR shall serve as a contractor of the City. The description of services contained herein is intended to be general in nature. It is neither exhaustive,nor a limitation on the contracted services so long as the services actually delivered are consistent with the provisions of this agreement. CONTRACTOR agrees to provide the following services: Applications will include all State of Texas Governor's Division of Emergency Management and FEMA required information,federal forms,and attachments. CONTRACTOR will develop a thorough and complete HMGP applications,meeting all application requirements. CONTRACTOR will submit the required number of copies of the completed Project Grant application to CITY for review, signature, and forwarding to the State. Some applications will require a cost-benefit analysis that will compare the current value of the proposed Mitigation project to the net present value of future mitigated losses. The data for this benefit-cost analysis shall be provided to the contractor by CITY. Any additions to,expansion of or explanation of such terms shall be by letter of understanding agreed to and signed by both parties to this contract. H. COMPENSATION. CITY shall pay CONTRACTOR a per application fee as follows: Acquisition-$5,000 per application for less than 50 homes on an application. Note,if a grant is awarded,and the City chooses to use CONCTRACTOR to implement the grant, the fee would be $800 per parcel for acqisitons and $800 per parcel for comparable housing/tenant relocation support, both of which the grant would cover 75%. EXHIBIT "B" Flood Control projects- $10,000 per application CITY shall process payments of invoices within 30 days after presentation of an invoice by CONTRACTOR. M. SPECIAL CONDITIONS. CONTRACTOR shall defend,indemnify and hold harmless CITY,its officials and employees,against all suits or claims that may be based on any injury to persons or property that may occur,or may be alleged to occur,in the course of the performance of this agreement by CONTRACTOR,its agents or employees,provided,that the damage, claims, loss, demand, or suit is caused in whole or in part by any negligent act or omission of CONTRACTOR, or any subcontractor of CONTRACTOR, or anyone directly or indirectly employed by CONTRACTOR No officer,agent or employee of the City is employed by CONTRACTOR or has a financial interest direct or indirect in this agreement or the compensation to be paid under this agreement. The SUBCONTRACTOR(S)shall be solely and entirely responsible for procuring all appropriate licenses and permits,which may be required by any competent authority for the SUBCONTRACTOR(S)to perform the subject work. CITY OF BEAUMONT,TEXAS CONTRACTOR Jeffrey S. Ward&Associates, Inc. ATTEST: 3 December 16,2008 Consider authorizing the City Manager to execute an Industrial District Contract with Eastman Chemical Company RICH WITH OPPORTUNITY BEA,UMON* T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Contract with Eastman Chemical Company. RECOMMENDATION The Administration recommends approval of a resolution authorizing the City Manager to execute an Industrial District Contract with Eastman Chemical Company. BACKGROUND Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located within the extra territorial jurisdiction of the City of Beaumont. The City is entering into an initial industrial contract with Eastman Chemical Company that will be effective January 1, 2009. The initial term will be a ten-year tax abatement. A second term will commence upon the expiration of the initial term and continue thereafter for an additional period of five calendar years. The in-lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2019 through 2021 and 75% of property taxes due to the City in 2022 through 2023. The 2019 payment by Eastman will be calculated based on 100% of the assessed value multiplied by the tax rate effective on October 1, 2018. Payments will be due to the City by February l'of each year. A copy of the agreement is attached for your review. BUDGETARY IMPACT None RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Contract with Eastman Chemical Company. The contract is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16th day of December, 2008. - Mayor Becky Ames - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of § 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "City," and Eastman Chemical Company, a Delaware corporation, hereinafter called "Company." PREAMBLE WHEREAS, City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of City, such industrial district being known as City. of Beaumont Industrial District (the "District"). WHEREAS, Company and/or its Affiliates (as hereinafter defined) owns and/or leases land and improvements which are part of the manufacturing and industrial facilities of Company and/or its Affiliates . located within District, such land and improvements being more particularly described in Exhibit "A" attached hereto (the "Property") WHEREAS, Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon City and benefits derived by Company by reason of being located immediately adjacent to City. Page 1 WHEREAS, Company and City desire to base the industrial district payment on assessed value to ensure equity among the companies. WHEREAS, City desires to encourage the addition of new improvements to the Company's property located within the City of Beaumont Industrial District; In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: ARTICLE I. COMPANY'S OBLIGATION 1. The Company will receive a 10-year 100% tax abatement on all new construction and improvements to existing facilities on the herein described property. This abatement does not include the value of the existing property described in Exhibit "A." The Company shall be responsible for the payment of ad valorem taxes based upon the existing value of the property and improvements currently existing in Exhibit "A" as determined by the Jefferson County Appraisal District. The 10=year time period will commence when modification to existing land (dirt work) first begins on any property described in Exhibit "A" or when renovations or modifications first begin to existing improvements or facilities on properties described in Exhibit "A." The Company shall notify City in writing at least thirty (30) days prior to the'date construction is scheduled to commence, as stated above, which will determine the start date and first calendar year for the Initial Term. The Initial Term shall be the ten (10) year tax abatement period. 2. Commencing upon the expiration of the Initial Term and continuing thereafter for an additional period of five calendar years (the "Second Term") after the tax Page 2 abatement period, Company will make an annual payment to City on or before February 1 St of each such year computed based on 100% of the Assessed Value of the Company's facilities and property, real, personal, and mixed, located on Company's land covered by this Agreement (herein "the property") as provided herein (the "Annual Payment") . 3. "Assessed Value" means the 100% valuation of Company Property and improvements thereon as determined by the Jefferson County Appraisal District for the previous tax year. 4. "Assumed City Taxes Due" means the number obtained by the following formula: Assessed Value / 100 x Current City Tax Rate = Assumed City Tax Due 5. In October of each year the Finance Officer for City shall obtain the most recent Assessed Value as set by the Jefferson County Tax Appraisal District and such valuation shall be used for the Annual Payment due the following February; by way of example, October 2008 Assessed Values would be used for the February 1, 2009 payment. If the assessed values are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified Page 3 values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty (30) days following such resolution. For years 11 through 13 (years 1 through 3 of the Second Term), the payment shall equal 80% of the Assumed City Taxes Due and for years 14 and 15 (years 4 and 5 of the Second Term) the payment shall equal 75% of the Assumed City Taxes Due. City shall bill Company for payments due hereunder on or before January 1 each year. Company shall pay to City the amount billed on or before February 1 each year. Upon receiving the final payment, the Finance Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all payments which otherwise would have been paid to City had Company been in the city limits of City will be recaptured and paid to City within 60 days of any.such event. ARTICLE II. PROPERTY COVERED BY AGREEMENT This Agreement will reflect the intention of the parties hereto that this Agreement shall govern and affect the properties of Company and/or its Affiliates (facilities, real, personal, and mixed) located on the Property more particularly described in Exhibit "A", Page 4 which are within the extra-territorial jurisdiction of the City of Beaumont. "Affiliates" shall mean any entity owned entirely or in part by Company. ARTICLE III. SALE BY COMPANY (a) Company shall notify City of any sale of any or all of Company's facilities to any person or entity. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to City as provided under this Agreement. Accordingly, and as to payments due under this Agreement, no such sale shall reduce the amount due City under this Agreement until the purchaser of such facility has entered into a contract in lieu of taxes with City that provides for a continuation of like payments to City. (b) Company shall have the right to assign, transfer or convey all, or any part of, its rights, title and interest in the Agreement in connection with any transfer or conveyance of title to all or any part of the properties subject to this Agreement to any person or entity at any time of this Agreement; provided, however, that Company shall provide City with written notice of such assignment. Company shall be relieved of its obligations under this Agreement to the extent that an assignee expressly assumes Company's obligations in a written instrument binding such assignee to City. Subject to the preceding, this Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. Page 5 ARTICLE IV. CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the Agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with state law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation becomes final with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation becomes effective if the annexation becomes effective after January 1 st of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any Iand which is the subject matter of this Agreement, City shall, with the approval of Company, seek .immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all costs of such action being Page 6 borne equally by the City and by the said Company or companies with Company's portion allocated on the basis'of Assessed Values. 2. The City further agrees that during the term of this Agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this Agreement or any renewals thereof, City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V. TERMINATION FOR BREACH It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company shall be entitled to enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and shall be entitled to obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed Page 7 that should this Agreement be breached by Company, City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. ARTICLE VI. AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "parent," "affiliates" and to any properties owned or acquired by said parent and affiliates within the area described in Exhibit "A" to this Agreement, and where reference is made herein to land, property and improvements owned by Company, that shall also include land, property and improvements owned by its parent and/or affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or More of the stock having the right to vote for the election of directors. The word "parent" as used herein shall mean all companies which directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise control over fifty percent (50%) of the stock having the right to vote for the election of directors of Company. ARTICLE VII. TERM OF AGREEMENT The term of this Agreement shall be for fifteen (15) years commencing when dirt work (modification to existing land) first begins on any portion of the Property or when Page 8 i renovation or modification first begins to existing improvements or facilities on the described property. NOTICES Any notice provided for in this Agreement, or which may otherwise be required by law shall be given in writing to the parties hereto by certified mail addressed as follows: TO CITY TO COMPANY City-of Beaumont Eastman Chemical Company Attn: City Manager Corporate Tax, Property Tax Manager 801 Main Street P. O. Box 431 P. O. Box 3827 Kingsport, Tennessee 37662-5280 Beaumont, Texas 77704 IN WITNESS THEREOF, this Agreement, consisting of nine pages plus Exhibit "A" is executed in duplicate counterparts as of this day of December, 2008. CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk EASTMAN CHEMICAL COMPANY By: ATTEST: Ronald C. Lindsay, Senior Vice President Corporate Strategy and Regional Leadership Page 9 EXHIBIT "A" WASTMAN SURVEYS LEGAL DESCRIPTIONS December 2, 2008 PARCEL A. TRIANGLE MARINE ��q a d a �aEtaE sE a aEt s a x + ,h`� tt,fir�i nd(u�r.tt,.:6),�!�{{j���l��dd{�j4llid{ji�iii�'�•�l. -. ,i ,!tilt:..,!-ttftlktlil7f ii t.it ,r.:. a,' I ir.it 1N rt.lf�,g: Z . f. W W LO) Z a W CL i PARS A- � I LEGAL DESCRIPTION PARCEL A. TRIANGLE MARINE EXHIBiT"Alt TRACT ONE Legal Description: 4.6344 Acre Tract or Parcel of Land i Part of Lots 8,9,& 10 of the undesignated portion of the Resubdivision of I the Daniel Lewis Laud Volume 1,Page 44,Map Records Phelam Humphry League,Abstract No.32 Jefferson County,Texas r f BEING a 4.6344 acre tract or parcel of land situated in the Phelam Humphry League,Abstract No. 32,Jefferson County,Texas and being the remainder of Lots 8,9,&10 of the Resubdivision of the Daniel Lewis Land in the Phelam Humphry League as recorded in Volume 1,Page 44,Map Records, Jefferson County,Texas and also being all of that certain called 4.6453 acre tract of land,identified i as Tract One,as described in a"Special Warranty Deed" from Edward P. deZevallos and Robert Price,Jr.to Jefferson Triangle Marine,L.P. as recorded in Clerk's File No.98-9821354,Official Public Records of Real Property, Jefferson County, Texas, said 4.6344 acre tract being more particularly described'as follows: r NOTE. All bearings are based on the Northeasterly line of that certain called ' 4.6453 acre tract idenH ed as Tract One, as described in a "Special Warranty r Deed"from Edward P. deZevallos and Robert Price, Jr, to Jefferson Triangle Marine,Z.P.as recorded in Clerk's File No.98-9821354, Off cial Public Records of O r u UTH 44°20'08"EAST. Real Property,Jefferson Co niy, Texas as S0_ I I BEGINNING at a 5/8"iron rod found for the most Northerly comer of the tract herein described, said corner also being the intersection of the Northerly line of the said Lot 8 and the Westerly right- I of-way line of the Kansas City Southern Railroad(based on a width of 100 feet); } THENCE SOUTH 44°2908"EAST,along and with the Westerly right-of-way line of the Kansas City Southern Railroad,for a distance of 714.22 feet to a 518"iron rod found for corner,said corner being the most Northerly corner of that certain called 4.960 acre tract of land,identified as Tract Two, as described in a"Special Warranty Deed" from Bo-Mac Contractors,Ltd. to Camille J. Landry, Mitchell P. Landry and Regina M. Landry d/b/a Deep South Crane &Rigging Co. as f recorded in Clerk's File No. 2003031413, Official Public Records of Real Property, Jefferson County,Texas; THENCE SOUTH 45°24'51"WEST,for the boundary between the tract herein described and the said 4,960 acre Deep South Crane&Rigging Co.tract,for a distance of 432.78 feetto a 1/2"iron rod found for corner, said corner being the most Westerly corner of the said 4.960 acre Deep South .F Exhibit"A"-Page 1 • i Crane&Rigging Co.tract,the most Northerly corner of that certain called 0.846 acre tract of land, identified as Tract One,as described in a"Special WanwtyDeed"from Bo-Mac Contractors,Ltd.to Camille J.Landry,Mitchell P.Landry and Regina M.Landry d/b/a Deep South Crane&Rigging Co. as recorded in Clerk's File No;2003031413, Official Public Records of Real Property,Jefferson ' County,Texas and also being the most Easterly comer of that certain called 0.2153 acre tract of land as described in a "Warranty Deed" from MKC Energy Investments, Inc, to Camille J. Landry, i Mitchell P.Landry and Regina M.Landry d/b/a Deep South Crane&Rigging Co.as recorded in. Clerk's File No.2004003596,Official Public Records of Real Property,Jefferson County,Texas; THENCE NORTH 47°55'06"WEST,for the boundary between the tract herein described and the said 0.2153 acre Deep South Crane&Rigging Co.tract,for a distance of 114.58 feet to a 518"iron rod found for corner,said corner being in the Northeasterly right-of-way line of State Highway No. 347,and said corner also being the beginning of a curve to the right having a radius of 410.58 feet and being subtended by a chord bearing NORTH 37°,01137"EAST with a chord length of 120.77 feet; THENCE NORTHEASTERLY, along and with the Northeasterly right-of-way line of State i Highway No. 347 and along and with said curve, for an are length of 121.21 feet to a Texas Department of Transportation concrete monument(broken)found for corner; THENCE NORTH 46°02'51"EAST,continuing along and with the Northeasterly right-of-way line of State Highway No. 347,for a distance of 58.28 feet to a Texas Department of Transportation O concrete monument found for comer; i THENCE NORTH 38.11-29"WEST,continuing along and with the Northeasterly right-of-way line of State Highway No.347,for a distance of 247.57 feet to a Texas Department of Transportation concrete monument found for comer; THENCE SOUTH 46°3332"WEST continuing along and withthe Northeasterly right-of-way line of State Highway No. 347, for a distance of 30.50 feet to a Texas Department of Transportation concrete monument found for comer; f THENCE NORTH 3 8°f7120"WEST,continuing along and with the Northeasterly right-of-way line of State Highway No.347,for a distance of 339.48 feet to a 5/8" iron rod found for corner,said corner being in the common line between the said•Lot 8 and Lot 1 of the said Resubdivision of the Daniel Lewis Land; THENCE NORTH 45°43'05"EAST,for the boundary between the said Lots 1 and 8,for a distance of 230.50 feet to the POINT OF BEGINNING and containing 4.6344 ACRES,more or less. T1tACT TWO U • Exhibit"A"-Page 2 . I • i Legal Description: 21,1268 Acre Tract or Parcel of Land Phdam Humphry League,Abstract No.32 Jefferson County,Texas i BEING&21,1268 acre tract or parcel of land situated in the Phelam Humphry League,Abstract No. 32,Jefferson County,Texas and being out of and part of that certain called 62.71 acre tract of land as described in a "Warranty Deed"by J.T. Shelby to Texas Gulf Sulphur Company as recorded in Volume 812,Page 470,Deed Record, Jefferson County,Texas and also being all of that certain called 21.1253 acre tract,identified as Tract Two,as described in a"Special-Warranty Deed"from Edward P.deZevallos and Robert Price,Jr.to Jefferson Triangle Marino,L.P.as recorded in Clerk's File No. 98-9821354, Official Public Records of Real Property, Jefferson County, Texas, said 21.1268 acre tract being more particularly described as follows: NOTE, All bearings are based on the Northeasterly line of that certain called 4.6453 acre tract, identified as Tract One, as described in a "Special Warranty Deed"from Edward P. deZevallos and Robert Price, Jr, to Jefferson Triangle Marine,L.P.as recorded in Clerk's Pile No.98-9821354,Off cial Public Records of Real Property,Jefferson County, Texas as SOUTH 44°20'08"EAST BEGINNING at a 5/8"iron rod found for the most Easterly corner of the tract herein described,said corner also being the most Northerly conger of that certain called 20.03 acre tract of land as described in a "Special Warranty Deed" from Phillip A. Roebuck to The Phillip A. Roebuck Family Partnership, Ltd. as recorded in Clerk's File No. 97-9731390, Official Public Records of Real Property,Jefferson County,Texas and said corner also being in the'Westerlyright-of way line ofthe Kansas City Southern Railroad(based on a width of 100 feet); i THENCE SOUTH 47°05'45"WEST,for the boundary between the tract herein described and the said 20.03 acre The Phillip A.Roebuck Family Partnership,Ltd.tract,for a distance of 1203.93 feet to a 1/2"iron rod found for corner,said corner being in the Northeasterly right-of-way line of State Highway No,347 and being the most Westerly corner of the said 20.03 acre The Phillip A.Roebuck Family P artnership,Ltd.tract and said corner also being the beginning of a curve to the right having a radius of 3685.83 feet and being subtended by a chord bearingNORTH 35°50'30"WEST with a chord length of 621.42 feet; THENCE NORTHWESTERLY, along and with the Northeasterly right-of-way line of State Highway No. 347 and along and with said curve, for an are length of 622.16 feet to a Texas Department of Transportation concrete monument found for corner, said corner also being the beginning of a curve to right having a radius of 1910.08 feet and being subtended by a chord bearing NORTH 29°42'58"WEST with a chord length of 81.50 feet; THENCE NORTHWESTERLY, along and with the Northeasterly right-of-way line of State Highway No.347 and along and with said curve with a curve,for an are length of 81,51 feet to a 1/2" Exhibit"A"-Page 3 iron rod found for corner, said comer being in the Southeasterly line of a 100 foot wide Texas Department of Transportation drainage ditch as recorded in Volume 1476,Page 76,Deed Records, Jefferson County,Texas; THENCE NORTH 47°3734"EAST,along and with the Southeasterly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 583.89 feet to a 5/8"iron rod found for comer; THENCE NORTH 02°2715"EAST,continuing along and with the Southeasterly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 532.70 feet to a 5/8"iron rod found for comer-,* THENCE NORTH 47009'S8"EAST,continuing along and with the Southeasterly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 119.76 feet to a 5/8"iron rod found for corner,said corner also being in the Westerly right-of-way line of the said Kansas City Southern Railroad; THENCE SOUTH 44°14'05"EAST,along and with the Westerly right-of-way line of the Kansas City Southern Railroad,for a distance of 1065.14 feet to the POINT OF BEGINNING and containing 21.1268 ACRES,more or less. TRACT THREE A i Legal Description: 5.8766•Acre Tract or Parcel of Land Phelam Humphry League,Abstract No.32 ' Jefferson County,Texas BEING a 5.8766 acre tract or parcel of land situated in the Phelam Humphry.League,Abstract No. 32,Jefferson County,Texas and being out of and a part of that certain 300 foot strip as described in Warranty Deed from J.T.Shelby to Texas Gulf Sulphur Company,recorded in Volume 1454 Page 630,Deed Records,Jefferson County,Texas,and also being all of that certain called 5.8735 acre tract of land,identified as Tract Three-A,as described in a"Special Warranty Deed"from Edward P. i deZevallos and Robert Price,Jr.to Jefferson Triangle Marine,L.P. as recorded in Clerk's File No. I 98-9821354,Official Public Records of Real Property,Jefferson County,Texas,said 5.8766 acre tract being more particularly described as follows: NOTE. All bearings are based on the Northeasterly line of that certain called 4.6453 acre trac4 identified as Tract One, as described in a "Special Warranty " Deed"from Edward P. deZevallos and Robert Price, Jr. to Jefferson Triangle Marine,L.P.as recorded in Clerk's File No.98-9821354,Official Public Records of i OExhibit"A" -Page 4 3 r Real Property,Jefferson County; Texas as SOUTH 44°20108"EAST. All set 5181' � i iron rods set with a cap stamped"M.W. Whiteley&Associates". BEGINNING at a"T"rail found for the most Northerly corner of the tract herein described,said cornier also being the intersection of the Northwest boundary line of the Phelam Humphry League,A- 32,Jefferson County,Texas,as said line was established by an agreed judgment in Cause No.1219 and the Northeasterly corner of said 300 foot strip and said corner also being the most Westerly I corner of that certain called 3.1656 acre tract,identified as Tract Five A,as described in a"Special Warranty Deed"from Edward P.de.Zevallos and Robert Price,Jr.to Jefferson Triangle Marine,L.P. as recorded in Clerk`s File No. 98-9821354, Official Public Records of Real Property,Jefferson County,Texas; THENCE SOUTH 44°20'52"EAST,along and with the Northeasterly line ofthe said300 foot strip and for the boundary between the tract herein described and the said 3.1656 acre Jefferson Triangle 1 Marine,L.P.tract,for a distance of 444.90 feet to a 518"iron rod found for corner,said corner being the most Southerly coiner of the said 3.1656 acre Jefferson Triangle Marine,L.P.tract and in the Westerly line of a 100 foot wide Texas Department of Transportation drainage ditch as recorded hi Volume 1476,Page 76,Deed Records,Jefferson County,Texas; THENCE SOUTH 04 031142"EAST, along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 22531 feet to a 5/8"iron rod found for corner; oTHENCE SOUTH 4103756"EAST,continuing along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 485.69 feet to a 518" I iron rod found for corner; THENCE SOUTH 10 009'26"EAST,continuing along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 23 0.28 feet to a 5/8" iron rod set for comer; THENCE SOUTH 45"26'32"WEST,continuing along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 3.82 feet to a 5/8" iron rod set for corner,said corner.also being in the Easterly right-Of-Way line of the Kansas City Southern Railroad(based on a width of 100 feet); THENCE NORTH 4401971"WEST,along and with the Easterly right-of-way line of the Kansas City Southern Railroad,for a distance of 1292.67 feet to a 5/8"iron rod set for corner,said corner being in the Northwest line of the said Phelam Huraphry League; Exhibit"A"-Page 5 a . ' r I THENCE NORTH 45028130" EAST, along and with the Northwest line of the said Phelam Humphry League,for a distance of 299.95 feet to the POINT OF BEGINNING and containing 5.8766 ACRES,more or less. TRACT FOUR A Legal Description; 22.8591 Acre Tract or Parcel of Land Jeff and James Chaison Survey,Abstract No,435 Jefferson County,Texas BEING a22.8591 acre tractor parcel of land situated in the Jeff and James Chaison Survey,Abstract No. 435,Jefferson County,Texas,the some being a portion of that certain called 150 acres of land conveyed by Pony McFaddin Duncan, Camelia B, McFaddin, a feme sole, Di Vernon McFaddin Cordts and husband,B.G.Cordts,Mamie McFaddin Ward and Husband,Carroll E.Ward,W.P.W.McFaddin,Jr.and J.L.C.McFaddin to Texas Gulf Sulphur Company,Vol.960,Pg. 192,Deed Records,Jefferson County, Texas and also being all of that certain called 22.8199 acre tract of land,identified as Tract Four-A as described in a"Special Warranty Deed from Edward P.deZevaIlos and Robert Price,Jr.to Jefferson Triangle Marine, L.P. as recorded in Clerk's File No. 98-9821354, Official Public Records of Real Property,Jefferson County,Texas,said 22.8591 acre tract being more particularly described as follows: NOTE: All bearings are based on the Northeasterly line of that certain called 4.6453 acre tract, identified ay Tract One, as described in a "Special Warranty Deed"from O .fidward P. deZevallos and Robert Price, Jr. to Jefferson Triangle Marine, L.P. as recorded in Clerk's File No. 98-9821354, Qfflcial Public Records of Real Property, Jefferson County, Texas as SOUTH 44°20`08"BAST. All set 518"Iron rods set with a cap stamped"M.W. Whiteley&Associates". COMMENCING at an axle found for the intersection of the most Southerly Northwest boundary line of the Phelam Humphry League, Abstract No. 32, Jefferson County, Texas, and the most Southerly. Southeast corner of the Jeff and James Chaison Survey,AbstractNo.435 as said line was established by an agreed judgment in Cause No. 1219,said corner also being the most Easterly corner of the said John A.Veatch Survey,Abstract No.55,Jefferson County,Texas and said corner also being an interior ell corner of the remainder of that certain called 203.2524 acre tract of land,identified as Tract Five B,as described in a"Special Warranty Deed"from Edward P.deZevallos and Robert Price,Jr.to Jefferson Triangle Marine, L.P. as recorded in Clerk's File No. 98-9821354, Official Public Records of Real Property,Jefferson County,Texas and an exterior ell corner of that certain called 123.9203 acre tract of land,identifled as Tract Four B,as described in a"Special Warranty Deed"from Edward P.deZevallos and Robert Price, Jr.to Jefferson Triangle Marine,L.P,as recorded in CIerk's File No. 98-9821354, Official Public Records of Real Property,Jefferson County,Texas; THENCE SOUTH 89 058'05"WEST,along and with the South line ofthe said 1239203 acre Jefferson Triangle Marine,L.P.tract,the same being the common.line between the said Jeff and James Chaison Survey and the said John A. Veatch Survey, for a distance of 389.73 feet to 518" iron rod found for OExhibit"A"-Page 6 f comer,said corner beingthe Southwest corner ofthe said 123.9203 acre Jefferson Triangle Marine,L.P. tract and in the Bast line of a 100 foot wide Texas Department of Transportation drainage ditch as recorded in Volume 1476,Page 76,Deed Records,Jefferson County,Texas; THENCE NORTH8905643" WEST, over and across the said 100-foot wide Texas Department of Transportation drainage ditch,and for the common line between the said Jeffand James Chaison Survey and the said John A. Veatch Survey,for a distance of 100.13 feet to a 519" iron rod found for the Southeast corner and POINT OF BEGINNING of the tract herein described; THENCE NORTH 89°56`31"WEST,continuing for the common line between the said Jeff and James Chaison Survey and the said John A.Veatch Survey,for a distance of 3 82A0 feet to a I"iron pipe found for comer, THENCE NORTH 89-52'32"WEST,continuing for the common line between the said Jeff and James Chaison Survey and the said John A.Veatch Survey,for a distance of 496.09 feet to a 1P iron pipe found for corner,said corner also being an exterior ell corner of that certain called 318.35 acre tract of land as described in a"Corrected Sheriff s Deed"from G.Mitch Woods,Sheriff of Jefferson County,Texas,to LaMonica Ltd.as recorded in Clerk's File No.200303 8403,Official Public•Records of Real Property, Jefferson County,Texas; THENCE NORTH 01020'03"EAST,for the boundary between the tract herbin described and the said 318.35 acre LaMonica.Ltd.tract,for a distance of 995.53 feet to a I"iron pipe found for corner,said corner being in the South line of a Canal for barge traffic from W.P.H.McFaddin to United Oil and O Refining Co.as recorded In Volume 80,Page 292,Deed Records,Jefferson County,Texas and Volume 93,Page 450,Deed Records,Jefferson County,Texas; THENCE NORTH 70-27'5 1"BAST,along and with the South line of the said Canal,for a distance of 198.41 feet to a 1"iron pipe found for comer; THENCE NORTH 720453 8"BAST,continuing along and with the South line of the said Canal,for a distance of 324.39 feet to a 5/8"iron rod found for corner; THENCE NORTH 82000'17"BAST,continuing along and with the South line of the said Canal,for a distance of 400.87 feet to a 5/811 iron rod set for comer,said comer being the intersection ofthe South line of the said Canal and the West line of the said 100 foot wide Texas Department of Transportation drainage ditch; THENCE SOUTH 01*48'50" WEST, along and with the West line of the said 100 foot wide Texas Department of Transportation diainage ditch, for a distance of 1215.58 feet to the POINT OF BEGINNING and containing 22.8591 ACRES,more or less. TRACT FOUR B Legal Description: 123.9004 Acre Tract or Parcel of Land Exhibit"A!'-Page 7 / Jeff and James Chaison Survey,AbstractNo.435 J Pierre Lemane Survey,Abstract No. 163 W.P.H.McFaddin Survey,Abstract No.689 Jefferson County,Texas BRING a 123.9004 acre tract or parcel of land situated in the Jeff and James Chaison Survey,Abstract No.435,Pierre Lemane Survey,Abstract No.163 and the W.P.H.McFaddin Survey,Abstract No.689, Jefferson County,Texas,and out of and part of that certain called 150 acres of land conveyed by Perry MoFaddin Duncan,Camelia B.McFaddin,a feme sole,Di Vernon McFaddin Cordts'and husband,B.G. I Cordts, Mamie MoFaddin Ward and Husband, Carroll E. Ward, W.P.W. McFaddin, Jr. and J.L.C. 3 McFaddin to Texas Gulf Sulphur Company,Vol.960,Pg.192,Deed Records,Jefferson County,Texas i and being 01 of that certain called 123.9203 acre tract of land,identified as Tract Four B,as described in a"Special Warranty Deed"from Edward P.deZevallos and RobertPrice;Jr.to Jefferson Triangle Marine, L.P.as recorded in Clerk's File No.98.9821354, Official Public Records of Real Property,Jefferson County,Texas, said 123.9004 acre tract being more particularly described as follows: NOTE: All bearings are based on the Northeasterly line of that certain called 4.6453 acre tract, identified as Tract One, as described in a"Special Warranty Deed"from Edward P. deZevallos and Robert Price, Jr. to Jefferson Triangle Marine, L.P. as ' recorded in Clerk's File No. 98-9821354, Qfiaial Public Records of Real Property, Jefferson County,Texas as SOUTH 44°20'08"EAST All set 518"iron rods set with a `. cap stamped I'M.W. Whiteley&Associates'. BEGINNING at an We found for the intersection of the most Southerly Northwest boundary line of the Phelam Humphry League,Abstract No.32,Jefferson County,Texas,and the most Southerly Southeast I comer of the Jeff and James Chaison Survey,AbstraetNo.435 as said line was established by an agreed judgment in Cause No.1219,said corner also being the most Easterly corner ofthe said John A.Veatch Survey,Abstract No.55,Jefferson County,Texas and said corner also being an interior ell corner of the remainder of that certain called 203.2524 acre tract of land,identified as Tract Five B,as described in a "Special Warranty Deed"from Edward P.deZevallos and Robert Price,Jr.to Jefferson Triangle Marine, L.P. as recorded in Clerks File No. 98-9821354, Official Public Records of Real Property,Jefferson County,Texas and an exterior ell corner of the said 123.9203 Jefferson Triangle Marine,L.P.; THENCE SOUTH 89 058'05"WEST,along and with the South line of the said 123.9203 acre Jefferson j Triangle Marine,L.P.tract,the'same being the common line between the said Jeff and James Chaison Survey and the said John A.Veatch Survey,for a distance of 389.73 feet to 5/8" iron.rod found for E corner,said corner being the Southwest corner of the said 123.9203 acre Jefferson Triangle Marine,L.P. tract and in the East line of a 100 foot wide Texas Department of Transportation drainage ditch as recorded in Volume 1476,Page 76,Deed Records,Jefferson County,Texas; THENCE NORTH 01°48'50" EAST, along and with the East line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 1228.38 feet to a 5/8"iron rod found for corner,said conger being the intersection of the said 100 foot wide Texas Department of Transportation drainage ditch and the South line of a Canal for barge traffic from W.P.H.McFaddin to United Oil and OExhibit"A" -Page 8 I • I Refining Co.as recorded in Volume 80,Page 292,Deed Records,Jefferson County,Texas and Volume { 93,Page 450,Deed Records,Jefferson County,Texas; l THENCE NORTH 84°30'51"EAST,along and with the South line of the said Canal,for a distance of 5095.88 feet to a V iron pipe found for corner,said iron pipe being located the old bank of the Neches River; THENCE SOUTH 25°57'41"EAST,along and with the old bank of the Neches River,for a distance of 114 8.77 feet to a point for corner(unable to find or set corner),said corner being on the most North line of that certain called "one acre square" tract of land conveyed by Clyde A. Barbour to The Texas Company as recorded in Volume 1043 Page 507,Deed Records,Jefferson County,Texas; THENCE NORTH 89 055127"WEST,along the North line of said Texas Company tract,for a distance of 104.10 feet to a point for corner(unable to find or set corner); THENCE SOUTH 0105 1'58"WEST,along the West line of said Texas Company tract,for a distance of 208.71 feet to a 518"iron rod found for corner,and said corner being in the North Iine of the remainder of the said 203.2524 acre Jefferson Triangle Marine,L.P.tract and in the common line between the W.P.H. McFaddin Survey and the said Phelam Humphry League; THENCE NORTH 89 008102" WEST, for the boundary between the tract herein described and the remainder of the said 203.2524 acre Jefferson Triangle Marine,L.P.tract,the same being the common line between the said Phelam Humphry League and the said W.P.H.McFaddin Survey,the said Pierre Leman Survey and the said Jeff and James Chaison Survey,for a distance of 5108.29 feet to a point for corner(unable to find or set corner),said corner also being an exterior ell corner of the remainder of the j said 203.2524 acre Jefferson Triangle Marine,L.P.tract and also an exterior ell corner ofthe said Phelam Humphry League and an interior ell corner of the said Jeff and James Chaison Survey; I THENCE SOUTH 00 037'20" WEST, for the boundary between the tract herein described and the ' remainder of the said 203.2524 acre Jefferson Triangle Marine,L.P.tract,the same being the common line between the said Phelam Humphry League and the said Jeff and James Chaison Survey for a distance of 550.66 feet to the POINT OF BEGINNING and containing 123.9004 ACRES,more or less. I TRACT FIVE A Legal Description: 3.1638 Acre Tract or Parcel of Land Phelam Humphry League,Abstract No'.32 i Jefferson County,Texas BEING a 3.1638 acre tract or parcel of land situated inthe Phelam Humphry League,Abstract No. 32,Jefferson County,Texas and being a portion of the 208.38 acres of land conveyed by Stanolind Oil Purchasing Company to Texas Gulf Sulphur Company,Volume 1597,Page 324,Deed Records, Jefferson County,Texas,and also being all of that certain called 3.1656 acre tract of land,identified Exhibit"A"-Page 9 l I i r as Tract Five A,as described in a"Special Warranty Deed"from Edward P.deZevallos and Robert Price, Jr.to Jefferson Triangle Marine,L.P.as recorded in Clerk's File No.98-9821354, Official Public Records of Real Property, Jefferson County, Texas, said 3.1638 acre tract being more i particularly described as follows: NOTE. All bearings are based on the Northeasterly line of that certain called 4.6453 acre tract, identified as Tract One, as described in a "Special Warranty Deed"from Edward P. deZevallos and Robert Price, Jr. to Jefferson Triangle Marine,L.P.as recorded in Clerk's Rle No.98-9821354, Official Public Records of Real Property, Jefferson County, Texas as SOUTH 44°20'08"EAST All set 518" iron rods set with a cap stamped"M.W. Whiteley&Associates". BEGINNING at a"T"rail found for the most Westerly corner of the tract herein described,said corner also being the intersection of the Northwest boundary line of the Phelam Humphry League,A- 32,Jefferson County,Texas,as said line was established by an agreed judgment in Cause No.1219 and the Northeasterly corner of that certain 300 foot strip as described in Warranty Deed from J.T. Shelby to Texas Gulf Sulphur Company, recorded in Volume 1454 Page 630, Deed Records, Jefferson County,Texas,also being the most Northerly corner of that certain called 5.8735.,acre tract, identified as Tract Three-A, as described in a"Special Warranty Deed" from Edward P. deZevallos and Robert Price,Jr.to Jefferson Triangle Marine,L.P.as recorded in Clerk's File No. 98-9821354,Official Public Records of Real Property,Jefferson County,Texas; , r THENCE NORTH 45°28'30"EAST, along and with the Northwesterly m .'esterly line of the said Phela j Humphry League,for a distance of 672.47 feet to a 5/8"iron rod found for corner,said coiner being in the Westerly line of a 100 foot wide Texas Department of Transportation drainage ditch as recorded in Volume 1476,Page 76,Deed Records,Jefferson County,Texas; THENCE SOUTH 01 05851"WEST, along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 161.21 feet to a 5/8"iron rod found for corner; THENCE SOTJTH 23 040'34"WEST,continuing along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 448.39 feet to a 5/8" iron rod found for corner; THENCE SOUTH 04°30'21"EAST,continuing along and with the Westerly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 218.62 feet to a 5/8" iron rod found for corner,said corner being in the Northeasterly line of the said 300 foot strip and also being an exterior ell corner of the said 5.8735 Jefferson Triangle Marine,L.P.tract; I THENCE NORTH 44°20'52"WEST,along and with the Northeasterly line ofthe said 300 foot strip . and for the boundary between the tract herein described and the said 5.8735 Jefferson Triangle �~ Exhibit"A"-Page 10 I �. Marine,L.P.tract,for a distance of 444.90 feet to the POINT OF BEGINNING and containing 3.1638 ACRES;more or less. j TRACT FIVE B Legal Description: 192.5857 Acre Tract or Parcel of Land Phelam Humphry League,Abstract No.32 Jefferson County,Texas BEING a 192.5857 acre tract or parcel of land situated in the Phelam Humphry League,Abstract No.32,Jefferson County,Texas and being out of and part of that certain called 208.38 acres of land conveyed by Stanolind Oil Purchasing Company to Texas Gulf Sulphur Company,Volume 1597, Page 324,Deed Records,Jefferson County,Texas and being all of that certain called 203.2524 acre tract of land,identified as Tract Five B,as described in a Special Warranty Deed"from Edward P. deZevallos and Robert Price,Jr.to Jefferson Triangle Marine,L.P.as recorded in Clones File No. 98-9821354,Official Public Records of Real Property,Jefferson County,Texas,save and except that certain called 10.6679*acre tract of land as described in a"Special Warranty Deed"from Palmera Properties,Inc.to Martin Gas Sales,Inc.as recorded in Clerk's File No.98-9814112,Official Public Records of Real Property,Jefferson County,Texas,said 192.5857 acre tract being more particularly described as follows: I O NOTE: All bearings are based on the Northeasterly line of that certain called f 4.6453 acre tract, Identified as Tract One, as described in a "Special Warranty Deed"from Edward P. deZevallos and Robert Price, Jr. to Jefferson Triangle Marine,L.P.as recorded in Clerk's Pile No.98-9821354,Official Public Records of Real Property,Jefferson County, Texas as SOUTH 44°20'08"EAST. All set 518" iron rods set with a cap stamped"MW.. Whiteley&Associates'. BEGINNING at an axle found for the intersection of the most SoutherlyNorthwest boundary line of the Phelam Humphry League,Abstract No. 32,Jefferson County,Texas,and the most Southerly Southeast corner of the Jeff and James Chaison Survey,AbstractNo.435 as said line was established by an agreed judgment in Cause No.1219,said comer also being the most Easterly corner of the said John A. Veatch Survey,Abstract No. 55,Jefferson County,Texas and said comer also being an exterior ell coiner of the said 123.9203 acre tract of land,identified as Tract Four B,as described in a "Special Warranty Deed"fiom Edward P.deZevallos and Robert Price,Jr.to Jefferson Triangle Marine,L.P.as recorded in Clerk's File No.98-9821354,Official Public Records of Real Property, Jefferson County,Texas; (� Exhibit"A"-Page i 1 1 i THENCE NORTH 00°37'20"EAST,for the boundary between the tract herein described and the said � /// 123.9203 acre Jefferson Triangte Marine,L.P.tract,the same being the common line between the said PheIam Humphry League and the said Jeff and James Chaison Survey,for a distance of 550.66 feetto a point for corner(unable to find or set corner), said corner being an interior ell comer of the said 123.9203 acre Jefferson Triangle Marine,L.P.tract; THENCE SOUTH 89 008'02"E AST,for the boundary between the tract herein described and the said T 123.9203 acre Jefferson Triangle Marine,L.P.tract,the same being the common line between the said Phelan Huniphry League and the said Jeff and James Chaison Survey,the Pierre Lemane. Survey, Abstract No. 163 and the W.P.H.McFaddin Survey,Abstract No. 689,Jefferson County,Texas and 1- passing at a distance of 5108.29 feet a 5/8"iron found for corner,said comer being the Southeast corner of the said 123.9203 acre Jefferson Triangle Marine,L.P.tract and continuing for a distance of 5317.00 feet to a point for corner on the old bank of the Neches River(unable to find or set corner); THENCE SOUTH 20-39'20"EAST,along and with the old bank of the Neches River,for a distance of 570.00 feet to a point for corner(unable to find or set corner); !� THENCE SOUTH 10 047'59"EAST,continuing along and with the old bank of the Neches River, for a distance of 485.92 feet to a point for corner(unable to find or set comer); THENCE NORTH 89°01140"WEST,for the boundary between the tract herein described and that O certain called 461.42 acre tract,identified as TRACT A.,as described in a"Special Warranty Deed" from BP Pipelines(North America)Inc.to Oiltanking Beaumont Partners,L.P.as recorded in Clerk's File No.2001014848,Official Public Records of Real Property,Jefferson County,Texas,passing at a distance of 86.85 a 5/8"iron rod found for reference,passing at a distance of 2381.47 feet a found ' 3"aluminum pipe,passing at a distance of 2791.17 feet a 3"aluminum pipe and continuing for a total distance of 3257.86 feetto a 518"ironrod found for corner,said corner also being an exterior ell corner of the said 461,42 acre Oiltanking Beaumont Partners,L.P.tract; THENCE SOUTH 45025'18"WEST,continuing for the boundary between the tract herein described and the said 461.42 acre Oiltanldng Beaumont Partners,L.P.tract,for a distance of 2730.75 feetto a F 5/8"iron rod set for corner,said corner being an exterior ell corner of the said 461.42 acre Oiltanking Beaumont Partners,L.P.tract and said corner also being in the Northeasterly line of that certain 300 foot strip as described in Warranty Deed from J.T.Shelby to Texas Gulf Sulphur Company,recorded in Volume 1.454 Page 630,Deed Records,Jefferson County,Texas and said corner also being in the Northeasterly line of that certain called 23.5505 acre tract,identified as Tract Three B,as described in a"Special Warranty Deed"from Edward P.deZevallos and Robert Price,Jr.to Triangle Railyard, L.P.as recorded in Cleric`s File No. 1999043482,Official Public Records of Real Property,Jefferson County,Texas; THENCE NORTH 44°20'33"WEST,for the boundary between the tract herein described and the ! said 23.5505 acre Triangle Railyard,L.P.tract,for a distance of 1399.09 feet to a 5/8"iron rod found Exhibit"A"-Page 12 i for corner,said corner being the most Northerly corner of the said 23.5505 acre Triangle Railyard, L.P. tract and also being in the Easterly line of a 100 foot wide Texas Department of Transportation drainage ditch as recorded in Volume. Page 76,Deed Records,Jefferson County,Texas;; THENCE NORTH 04°26'05"WEST,along and with the Easterly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 313.59 feet to a 5/8"iron rod found for corner; THENCE NORTH 23°40'23"EAST,continuing along and with the Easterly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 44157 feet to a 5 18" ! iron rod found for corner; THENCE NORTH 01°56'02"EAST,continuing along and with the Easterly line of the said 100 foot wide Texas Department of Transportation drainage ditch,for a distance of 285.61 feet to a 5/8" i iron rod found for corner, said corner being in the Northwesterly line of the Phelam Humphry ' League; THENCE NORTH 45021'25"EAST,along and withthe Northwesterly line of the Phelarn Hump ay League,for a distance of 566.11 feet to the POINT OF BEGINNING and containing 203.2536 acres,more or less save and except the above referenced 10.6679 acre Martin Gas Sales,Inc.thereby leaving a net acreage of 192.5857 acres,more or less. ! I OExhibit"A"-Page 13 i f 1 Tract Three B f I I TRIANGLE R41LYARD, •L.P. Centerffne description for a proposed 36" Pipeline extending over, through, along and across a 23.5505 acre tract of land, being described In Document Number 9 8-9814109, situated in the Pelham Humphries Survey, Abstract 32, and recorded in the County Clerk's Office of Jefferson County,Texas. Bearings are based on the Texas Coordinate System,South Central Zone. { The Centerline of the above said 36"Pipeline is described as follows: BEGINNING at a point on the East tine of the Above said 23.5505 acre traot of land,said "POINT OF BEGINNING"being North 47 012'46"West,a distance of 803.5 feet from a 3/8"Iron rod Inside a 2"iron pipe(in concrete)found at the Southeast comer of said 23.5505 acre tract', THENCE, South 42 047112"West;a distance of 300.0 feet to the"POINT OF EX1T'in the West tine ( ) of said 23.5505 acre tract;said"POINT OF EX1T"being North 47 012'48"West a distance of 540.0 feet from a calculated comer,and the Southwest comer of said 23.5505 acre tract. i Total Rods:18.18 € 1.. Plat attached { i i 1 PARCEL B. DUPONT LAND _�= �''+•'F':J•."/...-�'"-.- -.•,'�—_�. .. .. it #-'I ETM M_`.';� -.x.... '?u :>..: r:? .r,.. zYa--.•s:h:'Fr• i•,.(.z_ :,• ,... _ ... .. t'. 8 .+irx "".$s,'_t,.f'—.x..-.,..-_3 .. '"•: r �:i;ter .....—..0 v.w.,?• .+_ ..,.5�;..r.. _ _ ���• :.. �:.•--f C.:tYVC_-i.:-.W'..... :• y-,T��"-f.:�i:n' .-•.1 IA045TRIA46IrL Yi...-'-„.,-a:.;'.:r.-;,:;:r-t-.y{i.t_._.�.s�a _ _ �.5!".i;'-�-W�.r.o�:.�o..�`-�:ri `” .e_'•,.s..l ¢,,•�;r .i LOCATION PLAN y. NIS �- ^fir` nnm saK ibroav inr. j sr,t. ten. ro a++ _ ~^-•`� � '" at�".NO' �� � ....... - .• ...... ......a .... ... ........ . ��_L.�t:ii•—_ .. LFw.y i}+ r' 17!KQLL NpfF4� �. - x°:- -ro-�?.��+" .,......._.. ,.... ..rww..rnix. 3� ._. �r.•� .,.. ...... SURVEY s r r •-• ..,,,. _... �i�t. mina. a ii � r _\—_------- A/.TA/IC.f.V L4,W MZE SURI2'r Of' LCY:S r An,5 OF-// erp"r OF Ovf12YT R!.t//AONr rAMWrRGti %�,f•:rn. / i IN T//£ Pt•L//R.V OU.VAMET LGfCL/£•rJfjirWCr v, 98 r s /ones m v.1%vm r- d&rlR4cr 4v. e+ J£f/'£RSD.✓COMATr. ;WX SURVEY W71mcH PARCELB. DUPONT LEGAL DESCRIPTION PARCEL B. DUPONT FiXHIBI'T"A" i 114.560 Acres of Land BEING 114.560 acres of land described in Two(2)tracts and being out of and a part of those certain tracts deeded to E.L du Pont de Nemours and Company more fully described as 3.224 acres described as McFaddin Access Strip No. 1,3.189 acres described as Weiss Access Strip, 124.708 acres recorded in Volume 845,Page 63,23.70 acres recorded in Volume 1865,Page 58,20.406 acres recorded in Volume 1865,Page 68,45.98 acres described as Tract"A'recorded in Volume 1865,Page 120 and 10.270 ' acres recorded in Volume 1865,Page 128 of the Deed Records of Jefferson County, Texas, Said 114.560 acres of land also being a part of the DuPont-Beaumont Industrial Site No.l Subdivision recorded in Volume 15,Page 4 of the Map Records and part of the DuPont-Beaumont Works Industrial Park Subdivision recorded in Clerk's File No. 2006048240 and being Lots 4 and 5 of the Replat of Dupont-Beaumont Industrial Site No."1 in Clerks'File No.2007037934 of said Jefferson County and being situated in the Pelham Humphries League,Abstract No.32,and the J.S.Johnston Survey,Abstract No. 34,Jefferson County,Texas and being more particularly described as follows: " TRACT ONE—46.796 Acres(Lot"4) BEGINNING at a 1/2 inch iron rod found for the West corner of said du Pont 23.70 acre tract,same being in the Southwest line of the McFaddin Canal No.2 and being in the Northeast line of the Kansas City Southern.Railway Company(100 feet wide right-of- way); THENCE in a Southeasterly direction along and with the Northeast line of said du Pont i 23.70 acre tract,same being the Southwest he of said McFaddin Canal No.2 as follows: South 81 dog.03 min.52 sec.East South,a distance of 360.94 feet to a 1 inch iron rod found in concrete for angle corner; South 60 deg.48 min. 56 sec.East,a distance of 177.38 feet to a 1 inch iron rod found in concrete for angle comer; South 54 deg. 13 min.40 sec.East,a distance of 816.68 feet to a 1 inch iron rod found in concrete for angle corner; South 58 deg.50 min.40 sec.East,a distance of 377.04 feet to a railroad rail found for angle corner; South 59 deg.23 min. 1S sec.East,a distance of 536.04 feet to a 5/8 iron rod with cap stamped"WORTECJI SURVEYORS"set for angle corner, South 59 deg.53 min. 15 sec.East,a distance of 290.26 feet(289.7 feet)to a 1 inch iron rod found in concrete for the But corner of said du Pont 23.70 acre tract,same being in the most Saudwly Northwest line of said du Pont 124.708 acre tract and Lot 3 of said Industrial Site No. 1 Subdivision; i dr THENCE North 74 deg. 01 min.46 sec.East,a distance of 43 3.3 3 feet to a 5/8 iron rod with cap stamped"WORTEGH SURVEYORS"set for corner; THENCE South 44 deg.07 min.41 sec.East,a distance of 764.00 feet to a 5/8 iron rod with cap stamped"WORTECH SURVEYORS"set for cornet; THENCE South 45 deg.52 min. 19 sec.West,a distance of 943.49 feet to a 518 irony rod with cap stamped"WORTECH SURVEYORS"set in the Southwest line of said du Pont 124.708 acre tract,same being the Northeast line of said Kansas City Southern Railway Company right-of-way, i THENCE North 44 deg.06 min.57 sec.West along and with the Southwest line of said du Pont 124.708 acre tract,same being the Northeast line of said Kansas City Southern Railway Company right-of-way,a distance of 1057,97 feet to a 1 inch iron rod found in concrete for the West corner of said du Pont 124.708 acre tract,same being the South comer.of said du Pont 23.70 acre tract; THENCE North 44 deg. 07 Hain.00 sec.West along and with the Southwest line of said du Pont 23.70 acre tract,same being the Northeast line of said Kansas City Southern Railway Company right-of-way,a distance of 2,505.30 feet to the PLACE OF BEGINNING,containing 46.796 acres of land,more or less. TRACT TWO—67.764 Acres(Lot 5) BEGINNING at a I inch iron pipe found in concrete for the West comer of said du Pont 10,270 acre tract,same being the South corner of said du Pont 20.406 acre tract and being in the Northeast line of State Highway No. 347(200 feet wide right-of-way); THENCE North 47 deg.54 min. 18 sec.West along and with the most Southerly Southwest line of'said du Pont 20.406 acre tract,same being the Northeast line of said State Highway No.347,a distance of 934.65 feet to a 2 inch iron pipe found in concrete for the most Southerly West corner of said du Pont 20.406 acre tract,same being the South corner of that certain Gulf States Utilities Company called 0.576 acre tract of land, more fully described and recorded in Volume 1320,Page 85 of said Deed Records; THENCE North 43 deg.25 min. 19 sec.East along and with the most Southerly Northwest line of said du Pont 20.406 acre tract,same being the Southeast line of said Gulf States Utilities Company 0.576 acre tract,a distance of 100.00 feet to a point for the r East corner of said Gulf States Utilities Company 0.576 acre tract,some being an ell corner of said du Pont 20.406 acre tract(Unable to set or find. Point falls inside fenced in power station site.); THENCE North 47 deg. 53 min.41 sec.West along and with the most Northerly Southwest line of said du Pont 20.406 acre traca same being the Northeast line of said Gulf States Utilities Company 0.576 acre tract,a distance of 251.61 feet to a 5/8 iron rod E I with cap stamped"WORTECH SURVEYORS"set for the most Northerly West coiner of said du Pont 20.406 acre tract,same being the North coiner of said Gulf States Utilities Company 0.576 acre tract,same being in the Southeast line of said remainder of du Pont 3.189 acre tract; THENCE South 43 deg.25 min. 19 sec.West along and with the Southeast line of said remainder of du Pont 3.189 acre tract,same being the Northwest line of said Gulf States Utilities Company 0.576 acre tract,a distance of 100.14 feet to a concrete monument (broken)found for the South comer of the remainder of said du Pont 3.189 acre tract, same being the West corner of said Gulf States Utilities Company 0.576 acre tract,and being in the Northeast right-of-way line of said State Highway No.347; THENCE North 47 deg.55 min.06 sec.West along and with the Southwest line of said remainder of du Pont 3.189 acre tract and said remainder of 3.224 acre tract,same being the Northeast line of said State Highway No.347,a distance of 299.62 feet to a 1.1/2 inch iron pipe found in concrete for the West corner of said remainder of du Pont 3.224 acre tract,same being the South comer of said du Pont 45.98 acre tract; THENCE North 48 deg.02 min.44 sec.West along and with the Southwest line of said du Pont 45.98 acre tract,same being the Northeast line of said State Highway No, 347,a distance of 1901.35 feet to a 1/2 inch iron rod with cap stamped"SPI INC"for the West corner of Lot 5 of said DuPont-Beaumont Works Industrial Park Subdivision,same being the South corner of Lot 4 of said DuPont-Beaumont Works Industrial Park Subdivision; THENCE North 47 deg.55 min.03 see.East along and with the Northwest line of said Lot 5 of said DuPont-Beaumont Works Industrial Park Subdivision,same being the Southeast line of Lot 4 of said DuPont-Beaumont Works Industrial Park Subdivision,a distance of 966.20 feet to a 1/2 inch iron rod with cap stamped"SPI INC"for the North corner of Lot 5 of said DuPont-Beaumont Works Industrial Park Subdivision,same being i the East corner of Lot 4 of said DuPont-Beaumont Works Industrial Park Subdivision and being in the Northeast line of said du Pont 45.98 acre tract,same being the Southwest right-of-way line of said Kansas City Southern Railway Company(100 feet wide right- of-way); H THENCE South 44 deg.06 min.57 sec.East along and with the Northeast line of said Lot 5 and du Pont 45.98 acre tract,same being the Southwest line of said Kansas City Southern Railway Company right-of-way,a distance of 1826.68 feet to a 1-1/2 inch iron pipe with cap found in concrete for the Bast corner of said du Pont 45.98 acre tract,same being the North corner of the remainder of said du Pont 3.224 acre tract; THENCE South 44 deg.07 min.30 sec.East along and with the Northeast line of said Lot 5 and remainder of du Pont 3.224 acre tract,said 3.189 acre tract,said 20.406 acre tract and said 10.270 acre tract,same being the Southwest line of said Kansas City Southern Railway Company right-of-way,a distance of 1660.14 feet to a 5/8"iron rod with cap stamped"WORTECH SURVEYORS"set for corner; 1 THENCE South 42 deg.22 min. 19 sec. West,a distance of 726.24 feet to a 5l8 inch iron rod with cap stamped"WORTECH SURVEYORS"set for corner in the Southwest line of said du Pont 10.270 acre tract,and being in the Northeast right-of-way line of said State Highway No.347; THENCE North 47 deg. 54 min. 13 sec.West along and with the Southwest line of said du Pont 10.270 acre tract,same being the Northeast line of said State Highway No.347,a distance of 186.51 feet to the PLACE OF BEGINNING,containing 67.764 acres of land, more or less. /47985072(Rae.9.28-07) I� l PARCEL C . � � r f��,�jlpt'; � d "js 1 SURVEY 1 p ! PARCEL C. Mill t i o / 1� !. OR ,8t Z �1 P !• • r • � i�� ti w ,�'��9 PARCEL D . TERRA ASSETS ii iw rw a :� R 4 a i 4 1 — { a v1• t , i M D n m r vCf) � c t � G IZ 1 a' I Mi=Tri��t 1� t "PROPVZTY uo,-4807-./xaP S•t4-"s, �PRppERN ►fe.�P,•3EU8' D-t4a45�- PRURERTY P!?GPEf! }ia'P-%88C)q 11�.Pti38,o• A.if2CC) INC. i PRC)P6127Y f4*V9yi��,C IfmP 8'144653 I\�aR B-*1 fA,NP H�14'4555 es 9& Acs. z x ao.do./,.s. ikz� ± a.i1 Act, x8.33 des. 2 v f , -0 KEY !A&P- pvRCH,a3G Aon.irtl7w&.L 1-gr16 Se-.w,u,�rlYnsxf•Ffrc,.r 3<xz ' FAi:'Aft .G0 Ftiueriii.t 11,42' }VIILCUX Eu[,rNaeas t-30-7& LEGAL DESCRIPTION PARCEL D. TERRA ASSETS EXHIBIT "A" DESCRIPTION OF DEMISED PREMISES Lot. 1 of the Du Pont-Beaumont Industrial Sites Subdivision: BEING a 12.8175 acre tract of land in the Pelham Humphries League in Jefferson County, Texas and also being out of a 124 acre tract conveyed by Wesley w. Kyle, et al to E.I.du Pont deNemours and Company by deed dated December 14, 1951 and being recorded in Volume 845, Page 33, Deed Records of Jefferson County and said 12.8175 acre tract being sometimes also known as Lot No. 1, of the Du Pont-Beaumont Industrial Sites Subdivision that was recorded on November 19, 1991 in Volume 15, Page 4 of the Map Records. Lot 2 of the Du Pont-Beaumont Industrial Sites Subdivision: BEING a 13.5237 acre tract of land in the Pelham Humphries ump ties League in Jefferson County, Texas and also being out of a 124 acre tract conveyed by Wesley W. Kyle, et al togE.I. du Pont de Nemours and Company by deed dated December 14, 1951 and being recorded in Volume 845, Page 33, Deed Records of Jefferson County and said 13.5237 acre tract being sometimes also known as Lot 2 of the Du Pont-Beaumont Industrial Sites Subdivision that was recorded on November 19, 1991 in Volume 15, Page 4 , Map Records of Jefferson County, Texas. Together with all other easements, tenements, hereditaments and appurtenances thereto, including, without limitation, the easements created pursuant to the Declaration of Easements and appurtenant to the foregoing parcels. J LOTS 6, 7, 8, 9 TO CLOSE IN 2009 y PARCEL E . TWIN CITIES m41 A r5$, aw.7 Z go, - 40 OV »m xaw ct� �,.!tf C ( ''n"v.:'r°'wrtM»):•:"� w,:t r.�."�:wr,^, i 'j;4 TCAt-.LLC SURVEY PARCEL E. TWIN CITIES r-MU--.K XU WAM 0 MM YST:rr�f M0.a8 jw"m tow".I= NEW=:== M."—Im 1.—.1 W—K 1-w j oo�� o1 OM i LEGAL DESCRIPTION .. PARCEL E. TWIN CITIES ' 1 ' I Exhibit A Property j Legal Description: 20.0281 Acre Tract or Parcel of Land Phelam Humphry League,Abstract No. 32 Jefferson County,Texas BEING a 20.0281 acre tract or parcel of land situated in the Phelam Humphry League,Abstract I No.32,Jefferson County,Texas and being all of that certain called 20.03 acre tract of land as described in a"Special Warranty Deed"from Phillip A.Roebuck to The Phillip A.Roebuck Family Partnership,Ltd.as reoorded•in Clerk's.Pile Np,,97-9731390,Official Public Records of Real Property,Jefferson County,Texas,the same being all of that certain willed 20.03 acre tract of land as described in a"Special Warranty Deed"from Suzanne R.Roebuck to The Phillip A. Roebuck Family Partnership,Ltd.as recorded in Clerk's File No.97-9731389,Official Public Records of Real Property,Jefferson County,Texas,said 20.0281 acre tract being more particularly described as follows: NOTE. All bearings are based on the Northeasterly line of that certain called 4.643'3 acre tract, idendited as Tract One, as described in a•"Special Warranty Deed"from Edward P.'deZevallos and Robert Price,Jr. to Jefferson lWangle Marine, L.P. as recorded in C'lerk's File 2V& 98.-9821354, 9&ial Public Records of Real Property,Jefferson County,Texas as SOUTH 44°20'08"EAST. i BEGINNING at a 2"iron pipe found for the most Easterly*comer of the tract herein described, said comer also being the most.Northerly corner of the.rergainder of that certain called 27.18 acre tract of land,identified as TRACT B,as described in' a"Special Warranty Deed"from BP i Pipelines,(North America)Inc.to Oiltanking Beaumont Partners,L.P.as recorded in Clerk's File No.2001014848,Official Public Records of Beal Property,Jefferson County,Texas and in the j Westerly right-of-way line of the Kansas City•SQuthern Railroad(based on a:width of 100 feet); THENCE SOUTH 47 002152"WEST,for the•boundary between the tract herein described and the remainder of the said 27.18 acre 011tanki4g.Beaumont Partners,L.P.tract,.for a distance of 1188.10 feet to a small nail in concrete at the base of a fence post found for comer,said corner being the most Westerly eom' er of the remainder•of the said 27.18 acre Oiltanking Beauiont Partners,L.P.tract and in the Northeasterly right-of-way Iine of State Highway No.347; THENCE NORTH 48 006140"WEST,along and with the Northeasterly right-of-way line of State Highway No.347,for a distance of 248.11 felt co a Tea wa Department of Transportation concrete monument found for corner,said corner also being the beginning of a curve'to the right having a radius of 3685.93 feet and beingsubtended by a,.cho;d bearing NORTH 44°16'27"WEST having a chord length of 477.60 feet; Y THENCE NORTHWESTERLY,along and'with the Northeasterly right-of-way line of State • 4 Highway No,347 and along and with said curve,for an arc length of 477,94 feet to•a 1/2"iron rod found for corner,said corner being the most.Southerly corner of that certain called 21.1268 acre Tract,identified as TRACT TWO,as describedin a"Special Warranty Deed"from Jefferson ,Triangle Marine,L.P.to TX ENERGY,LLC as recorded in Clerk's File No.20.07047460, Official.Public Records of Real Property,Jefferson County,Texas; THENCE NORTH 47 045145"EAST,for the bounda.y.between the tract herein described and the said 21.1268 acre TX ENERGY,LLC tract,for a distance of 1203.93 feet to a 5/8"iron rod found for corner,said corner being the most Easterly corner of the said 21.1268 acre TX ENERGY,LLC tract and M' the Westerly right-o£-way line of the Kansas City Southern Railroad; THENCE SOUTH 44°20'1$"EAST,along and with the Westerly right-of-way line of the Kansas City Southern Railroad,for a distance of 723.78 feet to the POINT OF BEGINNING and containing 20.0281 ACRES,more or less. FILED AND "RECORDED OFFICIAL PUBLIC RECORDS 2008 Jan 31 02:38 PM LOVE $32.00 MUMS i CAROLYN L. GUIDRY COUNTY CLERK JEFFERSON COUNTY TEXAS E 4 December 16,2008 Consider authorizing the City Manager to execute an Industrial District Contract with Chemtrade Refining Services, Inc. RICH WITH OPPORTUNITY BEA,UMON* T • E • x • A • s City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider authorizing the City Manager to execute an Industrial District Contract with Chemtrade Refining Services, Inc. RECOMMENDATION The Administration recommends approval of a resolution authorizing the City Manager to execute an Industrial District Contract with Chemtrade Refining Services, Inc. BACKGROUND Industrial District Contracts enable the City to collect payments in lieu of taxes from industries located outside the city limits. The City currently has a contract with Chemtrade Refining Services, Inc., that will expire December 31, 2008. The new contract will be effective January 1, 2009. The in-lieu of tax payment will be based on a ratio of 80% of property taxes due to the City as if the industry were located within the city limits in 2009 through 2011 and 75% of property taxes due to the City in 2012 through 2015. The 2009 payment will be calculated based on 80% of the assessed value multiplied by the tax rate effective on October 1, 2008 or$0.64 per$100 of assessed valuation. Payments will be due to the City by February 1'of each year. A copy of the agreement is attached for your review. BUDGETARY IMPACT The estimated FY 2009 payment for Chemtrade Refining Services, Inc., is $57,000 of the $15,782,000 of industrial payments expected in FY 2009. RESOLUTION NO. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the City Manager be and he is hereby authorized to execute an Industrial District Contract with Chemtrade Refining Services, Inc. The contract is substantially in the form attached hereto as Exhibit "A" and made a part hereof for all purposes. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16" day of December, 2008. Mayor Becky Ames - THE STATE OF TEXAS § COUNTY OF JEFFERSON § AGREEMENT This Agreement is made under the authority of Section 42.044 of the Texas Local Government Code. The parties to the Agreement are The City of Beaumont, a municipal corporation and a home-rule city located in Jefferson County, Texas, hereinafter called "CITY," and Chemtrade Refinery Services, Inc., its parent, subsidiaries and affiliates, hereinafter called "COMPANY." PREAMBLE WHEREAS, Company owns land and improvements which are a part of the manufacturing, industrial, and refining facilities of said Company. The City has established an industrial district comprising a certain part of the extra-territorial jurisdiction of the City, such industrial district being known as the City of Beaumont Industrial District. WHEREAS, the Company recognizes the benefits of this Agreement and an obligation to contribute to the revenue needs of said City in an amount commensurate with the burdens placed upon the City and benefits derived by the Company by reason of being located immediately adjacent to said City. WHEREAS, the Company and the City desire to base the industrial district payment on assessed value to ensure equity among the companies. In view of the above and foregoing reasons, and in consideration of the mutual agreements herein contained, Company and City hereby agree as follows: SAAGENDMAGENDA ITEM MEMOWhemtrade Industrial Contract.doc 1 EXHIBIT "A" ARTICLE I COMPANY'S OBLIGATION Annual Payment on Company's Property 1. Commencing with the calendar year 2009 and each calendar year thereafter for the duration of this Contract, the Company will pay the City a certain sum which will be computed on the assessed value of the Company's facilities property, real, personal, and mixed located on Company's land covered by this contract. (Herein "the properties") 2. By the term "Assessed Value" is meant the 100% valuation of the Company's properties, as determined by the Jefferson County Appraisal District for the previous tax year. 3. The term "assumed City taxes due" shall be calculated by the following formula: Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due 4. Payment Procedures The procedures for determining and making such payments shall be as follows: (a) The payment for 2009 shall be due and payable on or before February 1, 2009. The 2009 payment is calculated as follows: Assumed City Taxes Due: Assessed Value/ 100 X Current City Tax Rate=Assumed City Tax Due Year 1 801/o of Assumed City Taxes Due=2009 Payment G:Undustrial Contracts\2009\Chemtmde 2009-Final.doc 2 Each October thereafter, the Chief Financial Officer shall obtain the most recent assessed values as set by the Jefferson County Appraisal District for the Company's properties, real, personal and mixed, having taxable situs within the areas described in this agreement; for example, in October, 2008, the 2008 assessed values shall be used for the February 1, 2009 payment. This assessed value less exclusions shall be used in the calculation of the payment. If the assessed values for the period required are in question and/or under litigation with the Jefferson County Appraisal District, payment shall be computed on the most recent certified values from the Jefferson County Appraisal District. The Company shall notify the City following resolution of the appraised value question and an adjustment for the payment, without interest, will be made within thirty(30)days following such resolution. (b) After the assessed value of the Company's properties has been determined, the a ment to City shall be 80% of assumed City taxes for the ears 2010 - 2011 and 75% of payment Y Y Y assumed City taxes for the years 2012 - 2015. I (c) City hereby agrees to bill Company for its payments due hereunder on or before January 1 each year. Company shall pay to City such amount billed on or before February 1 each year. Upon receiving the final payment, the Chief Financial Officer shall issue an official receipt of said City acknowledging full, timely, final and complete payment due by said Company to City for the property involved in this Agreement for the year in which such payment is made. If any annual payment is not made on or before any due date, the same penalties, interest, attorneys' fees and costs of collection shall be recoverable by the City as would be collectible in the case of delinquent ad valorem taxes. Further, if payment is not timely made, all GAIndustrial Crnrtracts\2009\Chemtrade 2009-Final.doc 3 payments which otherwise would have been paid to the City had Company been in the City limits of City will be recaptured and paid to the City within 60 days of any such event. ARTICLE II PROPERTY COVERED BY AGREEMENT This instrument will reflect the intention of the parties hereto that this instrument shall govern and affect the properties of Company (facilities, real, personal, and mixed) located on Company's real property as shown on the records of the Jefferson County Appraisal District which are within the extra-territorial jurisdiction of the City of Beaumont. ARTICLE III SALE BY COMPANY Company shall notify City of any sale of any or all of Company's facilities to any person or entity. As to payments due under this contract, no such sale shall reduce the amount due the City under this contract until the purchaser of such facility has entered into a contract in lieu of taxes with the City that provides for a continuation of payments to the City as if no such sale had been made. It is the intent of the parties that no sale of any of Company's facilities will affect the amount to be paid to the City under this Agreement. GAIndustrial Contracts\2009\Chemtrade 2009-Final.doc 4 ARTICLE IV CITY'S OBLIGATIONS 1. City agrees that it will not annex, attempt to annex or in any way cause or permit to be annexed any portion of lands or facilities or properties of said Company covered by this Agreement for the period of the agreement except as follows: (a) If the City determines that annexation of all or any part of the properties covered by this Agreement belonging to said Company is reasonably necessary to promote and protect the general health, safety and welfare of persons residing within or adjacent to the City, the City will notify Company in accordance with State law of the proposed annexation. In the event of such annexation, Company will not be required to make further payment under this Agreement for any calendar year commencing after such annexation with respect to the property so annexed, but shall nevertheless be obligated to make full payment for the year during which such annexation become effective if the annexation becomes effective after January 1 of said year. (b) In the event any municipality other than the City attempts to annex separately or in the event the creation of any new municipality shall be attempted so as to include within its limits any land which is the subject matter of this Agreement, City shall, with the approval of Company, seek immediate legal relief against any such attempted annexation or incorporation and shall take such other legal steps as may be necessary or advisable under the circumstances with all cost of such action being borne equally by the City and by the said Company or Companies with the Company's portion allocated on the basis of assessed values. GAIndustrial Contracts\2009\Chemtrade 2009-Final.doc 5 2. The City further agrees that during the term of this agreement, there shall not be extended or enforced as to any land and property of Company within said City of Beaumont Industrial District, any rules, regulations, or any other actions: (a) seeking in any way to control the platting and subdivisions of land, (b) prescribing any buildings, electrical, plumbing or inspection standards or equipment, or (c) attempting to regulate or control in any way the conduct of Company's activities, facilities or personnel thereof. 3. It is understood and agreed that during the term of this agreement or any renewals thereof, the City shall not be required to furnish any municipal services to Company's property located within the City of Beaumont Industrial District; provided, however, City agrees to furnish fire protection to Company should such protection be requested by Company in the event an unusual emergency situation occurs. ARTICLE V TERMINATION It is agreed by the parties to this Agreement that only full, complete and faithful performance of the terms hereof shall satisfy the rights and obligations assumed by the parties and that, therefore, in addition to any action at law for damages which either party may have, Company may enjoin the enactment or enforcement of any ordinance or charter amendment in violation of, or in conflict with, the terms of this Agreement and may obtain such other equitable relief, including specific performance of the Agreement, as is necessary to enforce its rights. It is further agreed that should this Agreement be breached by Company, the City shall be entitled, in addition to any action at law for damages, to obtain specific performance of this Agreement and such other equitable relief necessary to enforce its rights. G:Undustrial Contracts\2009\Chemtrade 2009-Final.doc 6 ARTICLE VI AFFILIATES The benefits accruing to Company under this Agreement shall also extend to Company's "affiliates" and to any properties owned or acquired by said affiliates within the area owned by Company, and where reference is made herein to land, property and improvements owned by Company that shall also include land, property and improvements owned by its affiliates. The word "affiliates" as used herein shall mean all companies with respect to which Company directly or indirectly, through one or more intermediaries at the time in question, owns or has the power to exercise the control over fifty percent (50%) or more of the stock having the right to vote for the election of directors. ARTICLE VII TERM OF AGREEMENT The term of this Agreement shall be for seven (7) years, commencing January 1, 2009, and ending on December 31, 2015. ARTICLE VIII NOTICES Any notice provided for in this Contract, or which may otherwise be required by law shall be given in writing to the parties hereto by Certified Mail addressed as follows: TO CITY TO COMPANY City Manager Chemtrade Refinery Services, Inc. City of Beaumont c/o Joe Jayroe P. O. Box 3827 Director of Manufacturing Beaumont, Texas 77704 PO Box 30 Beaumont, TX 77704 GAIndushial Contracts\2009\Chemtrade 2009-Final.doc 7 ARTICLE IX CONTINUATION If this Agreement shall be held invalid by any court of competent jurisdiction, such holding shall not affect the right of City to any payment made or accruing to City hereunder prior to such adjudication, and this provision is intended to be an independent and separable provision not to be affected by such adjudication. IN WITNESS THEREOF, this Agreement, consisting of 8 pages, is executed in duplicate counterparts as of this day of , 2008 CITY OF BEAUMONT, TEXAS By: Kyle Hayes City Manager ATTEST: Tina Broussard City Clerk CHEMTRADE REFINERY SERVICES, INC. By: ATTEST: QUndushial Cor&acts\20091Chen trade 2009-Final.doc 8 5 December 16,2008 Consider authorizing the award of a six(6) month contract for liquid chlorine for use by the Water Utilities Department RICH WITH OPPORTUNITY 1 T • E • X • A • S City Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider authorizing the award of a six(6)month contract for liquid chlorine. RECOMMENDATION The Administration recommends the award of a contract to DXI Industries of Houston, TX in the estimated amount of$57,530. BACKGROUND Bids were requested for a six(6)month contract to supply water treatment chemicals for use by the Water Utilities Department. Liquid chlorine is used to disinfect and purify the City's water supply. The contract is to furnish liquid chlorine at the fixed unit price of$523 per ton. The price for the previous six (6) months was $556 per ton. Bids were requested from ten(10)vendors and two (2) responses were received. Bid tabulation is as follows: VENDOR TONS PRICE/TON TOTAL DXI Industries 110 $523 $57,530 Houston, TX Altivia Corporation 110 $524 $57,640 Houston, TX BUDGETARY IMPACT Funds are available in the Water Utilities Department operating budget. RESOLUTION NO. WHEREAS, bids were solicited for a six(6) month contract for the purchase of liquid chlorine for use by the Water Utilities Department; and, WHEREAS, DXI Industries of Houston,Texas, submitted a bid for an estimated total expenditure of$57,530 in the unit amounts shown below: TONS PRICE / TON TOTAL 110 $523 $57,530 and, WHEREAS, City Council is of the opinion that the bid submitted by DXI Industries of Houston, Texas, should be accepted; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the bid submitted by DXI Industries, Houston, Texas, for the purchase of liquid chlorine in the unit prices shown above for an estimated total expenditure of$57,530 be accepted by the City of Beaumont. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 16'h day of December, 2008. - Mayor Becky Ames - 6 December 16, 2008 Consider approving the purchase of a dump truck for use by the Streets and Drainage Division RICH WITH OPPORTUNITY T • E BEAUMON*x • A • S Ci tY g Council Agenda Item TO: City Council FROM: Kyle Hayes, City Manager PREPARED BY: Laura Clark, Chief Financial Officer MEETING DATE: December 16, 2008 REQUESTED ACTION: Council consider approving the purchase of a dump truck for use by the Streets and Drainage Division. RECOMMENDATION The administration recommends approval of the purchase from Santex Truck Center of Houston, Texas in the amount of$122,250. Pricing for this dump truck is obtained through the Houston- Galveston Area Council(H-GAC) Cooperative Purchasing Program. BACKGROUND H-GAC is a cooperative purchasing association providing cities and political subdivisions with the means to purchase specialized equipment at volume pricing. H-GAC complies with the State of Texas procurement statutes. The purchase price of$122,250 includes the H-GAC administrative fee of$1,000. This fourteen(14) cubic yard dump truck will be used by Streets and Drainage to haul construction material such as asphalt, road base material and sand. This truck will be replacing unit 3211, which is a 1989 GMC 14-yard dump truck. This truck will be disposed of according to the City's surplus equipment disposal policy. The basic warranty provided is one (1)year, bumper-to-bumper. Work can be performed by International Trucks of Houston if needed. BUDGETARY IMPACT Funds are budgeted in the Capital Reserve Fund. ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF JEFFERSON § BEFORE ME, the undersigned authority, on this day personally appeared KYLE HAYES, City Manager of the City of Beaumont, a municipal corporation of the State of Texas, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he executed the same for the purposes and considerations therein expressed, in the capacity therein stated, and as the act and deed of the City of Beaumont. GIVEN under my hand and seal of office this the day of , 2008. Notary Public in and for the State of Texas Page 6 of 7