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HomeMy WebLinkAboutRES 17-043RESOLUTION NO. 17-043 WHEREAS, a municipal management district (the "District") is proposed to be created by the Texas Legislature over the land shown in Exhibit "A," attached hereto, within the City of Beaumont, Texas (the "City"), for the benefit of the public, including the construction and maintenance of water, sewer, and drainage facilities, roads and park and recreational facilities; and, and, WHEREAS, the City desires to support legislation for the creation of the District; WHEREAS, the Texas Local Government Code provides that land within a city's boundaries may not be included within a municipal management district without the city's written consent; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT: THAT the statements and findings set out in the preamble to this resolution are hereby, in all things, approved and adopted; and, THAT the City Council supports the passage of special legislation in the 85th Texas Legislature for the creation of the District; and, THAT this resolution shall be in full force and effect from and after its passage. PASSED BY THE CITY COUNCIL of the City of Beaumont this the 28th day of February, 2017. a J 4GG.,M K PvG fm SET 81111 DELAWARE EXTENSION RIGHT -OF -MAY 4.444 ACRES U N-N'mE-251.89' C2 D- M014' R- 3120.98' L- 1634A4' C. 181203' C8R0.- N 42'04'14'8 I] NBT14'14'E - 203.44' G D.- 3134'r. R.- 3020.88' L- 1159,61' C.- 1838.91' C311G.- S 4747257 L6S 2T6B'077 - 429.08' W N 01'24'427 - 203.73' 9, * rs 0010 DNBF,3 LNY9 B. 480Ni74AENTATION S R _g- :• • FOUND IRON ROD O FOUND IRON PIPE ® FOUND DISC O' FOUND CONC. MONUMENT `50 RJX Rpp � WDX CAP DRAINAGE B25R4 TRACE 15.546 ACRES BI N 82`02'4T7 - 630.32' B2 N 88'49WE - 43P2 M N ma'37E - 9n.o2' 84 N 1492497 - 42B.n' M N 98'43'30- - (04.41' BB S 1442'49', - 44444' BI N 9930'04' - 340.03' N a 0110'54' - 160.00' BO x 99.3204' - 102.00' 810 5 01.28'' - 344.50' Bl54 13 IF10'4a7 - 34a.M' B12 3 3157'137 - 49210' REVISION NOTE: REVISED ON TUE,31 MAY 2005 TO CENTER DITCH 121 TRACT ON CENTER OF EXISTING DRAINAGE DITCH HILCORP ENERGY I, L.P. 364.592 ACRES LESS: 3.00 (RESERVED TRACT) 4.444 (DELAWARE R.O.W. ) 15.093 (DITCH 121 TRACT) 18.546 (HILCORP EAST BASIN TRACT) TOTAL: s ' 23.509 ACRES HILCORP ENERGY I, L.P. BOUNDARY SURVEY BEAUMONT FIELD TRACTS OUT OF THE HEZEKIAH WILLIAMS LEAGUE, ABSTRACT 56 JEFFERSON COUNTY, BEAUMONT, TEXAS EXHIBIT "A" JEI,G9pN CpMTY DNlMAOE DISTBILT ND. 0 IXGOf6BpG OLPAR EMS2 D.c 20044 ALLEN BOONE HUMPHRIES ROBINSON LLP ATTORNEYS AT LAW PHOENIX TOWER 3200 SOUTHWEST FREEWAY SUITE 2600 HOUSTON, TEXAS 77027 TEL (713) 860-6400 FAX (713) 860-6401 abhr.com Direct Line: (713) 860-6436 Direct Fax: (713) 860-6636 khogan@abhr.com March 3, 2017 Certified Mail 71901122 9770 0000 9375 Return Receipt Requested Beaumont City Council c/o Ms. Tina Broussard City Clerk, City of Beaumont 801 Main St., Suite 125 Beaumont, Texas 77701 Kristen Hogan Legal Assistant Re: Proposed Legislation Creating Beaumont Municipal Management District No.1 Dear Mayor and Council Members: Enclosed is a copy of a proposed bill creating Beaumont Municipal Management District No. 1. Also enclosed is a notice of intent to introduce this bill in the 85th Legislature of Texas, 2017. This bill and notice are being sent to you for informational purposes only. No specific action is being requested at this time. Sin y, C 5 ste Hogan Enclosures 649373 By: A BILL TO BE ENTITLED AN ACT .B. No. relating to the creation of Beaumont Municipal Management District No. 1; providing authority to levy an assessment, impose a tax, and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 39 to read as follows: CHAPTER 39 . BEAUMONT MUNICIPAL MANAGEMENT DISTRICT NO. 1 SUBCHAPTER A. GENERAL PROVISIONS Sec. 39 .001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means the City Of Beaumont, Texas. (3) "County" means Jefferson County, Texas. (4) "Director" means a board member. (5) "District" means Beaumont Municipal Management District No. 1. Page - 1 - Sec. 39 .002. NATURE OF DISTRICT. The district is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 39 .003. PURPOSE; DECLARATION OF INTENT. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter. By creating the district and in authorizing the city, the county, and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution. (b) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district. (c) This chapter and the creation of the district may not be interpreted to relieve the city and the county from providing the level of services provided as of the effective date of the Act Page -2 - enacting this chapter to the area in the district. The district is created to supplement and not to supplant citv or countv services rovided in the district. Sec. 39 .004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. (b) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a. Article III and Section 59, Article XVI, Texas Constitution, and other powers ranted under this chapter. (c) The creation of the district is in the public interest and is essential to further the public purposes of: (1) developing and diversifying the economy of the state; (2) eliminating unemployment and underemployment; and (3) developing or expanding transportation and commerce. (d) The district will: (1) promote the health, safety, and general welfare of Page -3 - residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public; (2) provide needed fundinq for the district to preserve maintain, and enhance the economic health and vitality of the district territory as a community and business center; and (3) promote the health, safety, welfare, and enjoyment of the public by providina pedestrian ways and by landscanina and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty; and (4) provide for water, wastewater, drainage, road and recreational facilities for the district. (e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street liahtina, street landscapina, parkina, and street art obiects are parts of and necessary components of a street and are considered to be a street or road improvement. (f) The district will not act as the agent or instrumentality of Page -4 - any private interest even though the district will benefit many private interests as well as the public. Sec. 39 .005. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) The boundaries and field notes contained in Section 2 of the Act enacting this chapter form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect the district's: (1) organization, existence, or validity; (2) right to issue any type of bonds for the purposes for which the district is created or to pay the principal of and interest on the bonds; (3) right to impose or collect an assessment or tax; or (4) legality or operation. Sec. 39 .006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in: Page -5 - (1) a tax increment reinvestment zone created under Chapter 311, Tax Code; 2) a tax abatement reinvestment zone created under Chapter 312, Tax Code; 3) an enterprise zone created under Chapter 2303, Government Code; or 4) an industrial district created under Chapter 42, Local Government Code. Sec. 39 .007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 39 .008. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. [Sections 39 .009-39 .050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Page -6 - Sec. 39 .051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five voting directors who serve staggered terms of four years, with two or three directors' terms expiring June 1 of each odd -numbered year. (b) The board by resolution may change the number of voting directors on the board, but only if the board determines that the change is in the best interest of the district. The board may not consist of fewer than 5 or more than 9 voting directors. Sec. 39 .052. APPOINTMENT OF VOTING DIRECTORS. The mayor and members of the governing body of the city shall appoint voting directors from persons recommended by the board. A person is appointed if a majority of the members of the governing body, including the mayor, of the city vote to appoint that person. Sec. 39 .053. INITIAL VOTING DIRECTORS. (a) The initial board consists of the followina votin Page -7 - Pos. No. Name of Director 1 2 3 4 5 (b) Of the initial directors, the terms of directors appointed for positions 1 through 3 expire June 1, 2019, and the terms of directors appointed for positions 4 and 5 expire June 1, 2021. (c) Section 39 .052 does not apply to the appointment of directors under this section. Sec. 39 .054. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve at the pleasure of the voting directors. Sec. 39 .055. QUORUM. For purposes of determining the requirements for a quorum of the board, the following are not counted: (1) a board position vacant for any reason, including death, resignation, or disqualification; Page -8 - (2) a director who is abstaining from participation in a vote because of a conflict of interest; or (3) a nonvoting director. Sec. 39 .056. COMPENSATION. A director is entitled to receive fees of office and reimbursement for actual expenses as provided b Section 49.060, Water Code. Sections 375.069 and 375.070, Local Government Code, do not apply to the board. [Sections 39 .057-39 .100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 39 .101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 39 .102. IMPROVEMENT PROJECTS AND SERVICES. The district may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service using any money available to the district, or contract with a governmental or private entity to provide, design, construct, acquire, improve, relocate, Page -9 - rate, maintain, or finance an improvement project or service authorized under this chapter or Chapter 375. Local Government Code. Sec. 39 .103. DEVELOPMENT CORPORATION POWERS. The district using money available to the district, may exercise the powers given to a development corporation under Chapter 505, Local Government Code, including the power to own, operate, acquire, construct, lease, improve, or maintain a project under that chapter. Sec. 39 .104. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in imnlementina a project or providing a service authorized by this chapter. b) The nonprofit corporation: 1) has each power of and is considered to be a local government corporation created under Subchapter D, Chapter 431, Transportation Code; and (2) may implement any project and provide any service authorized by this chapter. Page -10 - (c) The board shall appoint the board of directors of the nonprofit corporation. The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Subchapter D, Chapter 431, Transportation Code, except that a board member is not required to reside in the district. Sec. 39 .105. AGREEMENTS; GRANTS. (a) As provided by Chapter 375, Local Government Code, the district may make an agreement with or accept a gift, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code. Sec. 39 .106. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified party, including the county or the city, to provide law enforcement services in the district for a fee. Sec. 39 .107. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may loin and pav dues to a charitable or nonprofit Page -11 - organization that performs a service or provides an activity consistent with the furtherance of a district purpose. Sec. 39 .108. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district may engage in activities that accomplish the economic development purposes of the district. (b) The district may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the district, including programs to: (1) make loans and grants of public money; and (2) provide district personnel and services. (c) The district may create economic development programs and exercise the economic development powers provided to municipalities bb (1) Chapter 380, Local Government Code; and (2) Subchapter A, Chapter 1509, Government Code. Sec. 39 .109. PARKING FACILITIES. (a) The district ma Page -12 - acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parkina facilities or a system of parkina facilities, includina lots, aaraaes, parkina terminals, or other structures or accommodations for parkina motor vehicles off the streets and related appurtenances. (b) The district's parking facilities serve the public purposes of the district and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years. (c) The district's parking facilities are parts of and necessary components of a street and are considered to be a street or road improvement. The development and operation of the district's parking facilities may be considered an economic development program. Sec. 39 .110. ANNEXATION OF LAND. The district may annex land as provided by Subchapter J, Chapter 49, Water Code. Sec. 39 .111. APPROVAL BY THE CITY. Section 375.207, Local Government Code, does not apply to the District. Sec. 39 .112. NO EMINENT DOMAIN. The district may not exercise Page -13 - the power of eminent domain. [Sections 39 .113- 39 .150 reserved for expansion SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS Sec. 39 .151. TAX AND ASSESSMENT ABATEMENTS. The district ma desianate reinvestment zones and may grant abatements of district taxes or assessments on property within such zones. Sec. 39 .152. DISBURSEMENTS AND TRANSFERS OF MONEY. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of district money. Sec. 39 .153. MONEY USED FOR IMPROVEMENTS OR SERVICES. The district may acquire, construct, finance, operate, or maintain any rovement or service authorized under this chapter or Chapter 375 Local Government Code, usina anv monev available to the district. Sec. 39 .154. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a service or improvement project with assessments under this chapter Page -14 - unless a written petition requesting that service or improvement has been filed with the board. (b) A petition filed under Subsection (a) must be signed by the owners of a majority of the assessed value of real property in the district subject to assessment according to the most recent certified tax appraisal roll for the county. Sec. 39 .155. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this chapter in all or any part of the district. (b) An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the 11 are a first and prior lien aaainst the prooert (2) are superior to any other lien or claim other than a Page -15 - lien or claim for county, school district, or municipal ad valorem 3) are the personal liabilitv of and a.charae against the owners of the property even if the owners are not named in the assessment proceedinas. c) The lien is effective from the date of the board's resolution imposing the assessment until the date the assessment is aid. The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property. (d) The board may make a correction to or deletion from the assessment roll that does not increase the amount of assessment of any parcel of land without providing notice and holding a hearing in the manner required for additional assessments. Sections 39 .157-39 .200 reserved for expansion] SUBCHAPTER E. TAXES AND BONDS Sec. 39 .201. ELECTIONS REGARDING TAXES AND BONDS. (a) The district may issue, without an election, bonds, notes, and other Page -16 - obligations secured by: (1) revenue other than ad valorem taxes; or (2) contract pavments described by Section 39 .203. (b) The district must hold an election in the manner provided Subchapter L. Chapter 375. Local Government Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes. (c) Section 375.243, Local Government Code, does not apply to the district. (d) All or any part of any facilities or improvements that may be acquired by a district by the issuance of its bonds may be submitted as a sinale proposition or as several propositions to be voted on at the election. Sec. 39 .202. OPERATION AND MAINTENANCE TAX. (a) If authorized by a maiority of the district voters votina at an election held in accordance with Section 39 .201, the district may impose an operation and maintenance tax on taxable property in the district in Page -17 - accordance with Section 49.107, Water Code, for any district purpose, includina to: 1) maintain and operate the district; 2) construct or acquire improvements; or (3) provide a service. b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election. Sec. 39 .203. CONTRACT TAXES. (a) In accordance with Section 49.108, Water Code, the district may impose a tax other than an operation and maintenance tax and use the revenue derived from the tax to make payments under a contract after the provisions of the contract have been approved by a majority of the district voters votina at an election held for that purpose. (b) A contract approved by the district voters may contain a rovision statina that the contract may be modified or amended by the board without further voter approval. Sec. 39 .204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND Page -18 - OTHER OBLIGATIONS. (a) The district may borrow money on terms as determined by the board. Section 375.205. Local Government Code, does not apply to a loan, line of credit, or other borrowina from a bank or financial institution secured by revenue other than ad valorem taxes. (b) The district may issue bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources of money, to pay for any authorized district purpose. Sec. 39 .205. TAXES FOR BONDS. At the time the district issues bonds Davable whollv or partly from ad valorem taxes, the board shall rovide for the annual imposition of a continuina direct annual ad valorem tax, without limit as to rate or amount, for each vear that all or part of the bonds are outstandina as reauired and in the manner rovided by Sections 54.601 and 54.602, Water Code. Sec. 39 .206. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS. Except as provided by Section 375.263, Local Government Code, the city Page -19 - is not required to pay a bond, note, or other obligation of the SECTION 2. The Beaumont Municipal Management District No. 1 initially includes all. territory contained in the following area: Being a 364.59 acre tract of land out of the Hezekiah Williams League, Abstract 56, Jefferson County, Texas; and being all of and the same as that certain called 356.24 acre tract as described in Deed to Hilcorp Energy I, L.P. as recorded in File Number 2000033569 of the Real Property Records of Jefferson County, Texas; and being all of and the same as that certain called 3.00 acre tract as described in Deed to Hilcorp Energy I, L.P. as recorded in File Number 2009026928 of the Real Property Records of Jefferson County, Texas; and being all of and the same as that certain called 3.00 acre tract as described in Deed to Hilcorp Energy I, L.P. as recorded in File Number 2009026928 of the Real Property Records of Jefferson County, Texas; also being all of that certain called 5.327 acre tract as described in Deed to City of Beaumont as recorded in File Number 1999017825 of the Real Property Page -20 - Records of Jefferson County, Texas; said 364.59 acre tract of land being more particularly described by metes and bounds as follows with all bearings reference to said Deed: BEGINNING at the intersection of the South right-of-way line of Delaware Street (100-foot right-of-way) and the West right-of-way line of Dowlen Road; THENCE with the East line of said 356.24 acre tract of land and the West right-of-way line of said Dowlen Road as follows: - South 460 38' 29" East, 71.03 feet to a point for corner; - South 01' 29' 54" East, 1,020.43 feet to a point for corner at the beginning of a curve to the right; - Along the arc of said curve to the right, having a radius of 1,103.22 feet, a central angle of 340 52' 43", an arc length of 671.58 feet and a chord of South 15' 56' 27" West, 661.26 feet to a point for corner; Page -21 - South 33' 22' 49" West, 676.38 feet to a point for corner at the Easternmost Southeastern corner of said 356.24 acre tract of land; THENCE with the Southeastern lines of said 356.24 acre tract of land as follows: - North 520 02' 47" West, 895.70 feet to a point for corner; - South 17' 40' 16" West, 979.76 feet to a point for corner; - North 700 37' 12" West, 71.57 feet to a point for corner; - South 880 37' 33" West, 242.50 feet to a point for corner; - South 010 25' 51" East, 570.34 feet to a point for corner; - South 010 27' 47" East, 399.76 feet to a point for corner; - South 88' 35' 58" West, 1,691.15 feet to a point for corner; - South 010 21' 56" East, 539.95 feet to a point for corner; - South 890 12' 54" West, 322.92 feet to a point for corner; - South 000 42' 53" East, 454.55 feet to a point for corner; Page -22 - - South 890 07' 58" West, 150.00 feet to a point for corner; - South 00' 42' 53" East, 199.68 feet to a point for corner in the North right-of-way line of Gladys Avenue (60-foot right-of-way) and being the Southernmost Southeastern corner of said 356.24 acre tract of land; THENCE South 890 05' 45" West with the South line of said 356.24 acre tract of land and the North right-of-way line of said Gladys Avenue, 806.54 feet to a point for corner at the Southwest corner of said 356.24 acre tract of land; THENCE with the West line of said 356.'24 acre tract of land as follows: - North 000 36' 51" West, 1,065.58 feet to a point for corner; - North 00' 36' 45" West, 1,122.34 feet to a point for corner; - South 870 17' 20" West, 351.02 feet to a point for corner; Page -23 - - North 010 24' 42" West, 2,152.60 feet to a point for corner at the Northwest corner of said 356.24 acre tract of land; THENCE North 870 14' 14" East with the North line of said 356.24 acre tract of land, 1,372.55 to a point for corner on the arc of a curve to the right in said South right-of-way line of said Delaware Street; THENCE with the North line of said 356.24 acre tract of land and said South right-of-way line of said Delaware Street as follows: - Along the arc of said curve to the right, having a radius of 3,020.88 feet, a central angle of 29' 15' 52", an arc length of 1,542.95 feet and a chord of North 74° 05' 40" East, 1,526.23 feet to a point for corner; - North 880 43' 36" East, 2,302.43 feet to the PLACE OF BEGINNING: containing 364.59 acres of land, more or less. SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act Page -24 - have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) The general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with. (e) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished. Page -25 - SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2017. Page -26 - w NOTICE OF INTENTION TO INTRODUCE A BILL IN THE LEGISLATURE OF TEXAS Notice is hereby given of the intention to introduce in the Regular Session of the 85th Legislature of Texas a bill creating and establishing a special district in the corporate limits of the City of Beaumont, Jefferson County, under the provisions of Article XVI, Section 59; Article III, Section 52; and Article III, Section 52-a of the Constitution of Texas and pursuant to the inherent power of the Legislature to create special governmental agencies and districts, with powers including those given to municipal management districts created pursuant to Chapter 375, Texas Local Government Code. The bill will provide for the district's administration, powers, name, duties, operation, and financing. The proposed boundaries of the district will include all or part of the following land situated in Jefferson County, Texas: Being a 364.59 acre tract of land out of the Hezekiah Williams League, Abstract 56, Jefferson County, Texas; and being all of and the same as that certain called 356.24 acre tract as described in Deed to Hilcorp Energy I, L.P. as recorded in File Number 2000033569 of the Real Property Records of Jefferson County, Texas; and being all of and the same as that certain called 3.00 acre tract as described in Deed to Hilcorp Energy I, L.P. as recorded in File Number 2009026928 of the Real Property Records of Jefferson County, Texas; and being all of and the same as that certain called 3.00 acre tract as described in Deed to Hilcorp Energy I, L.P. as recorded in File Number 2009026928 of the Real Property Records of Jefferson County, Texas; also being all of that certain called 5.327 acre tract as described in Deed to City of Beaumont as recorded in File Number 1999017825 of the Real Property Records of Jefferson County, Texas; said 364.59 acre tract of land being more particularly described by metes and bounds as follows with all bearings reference to said Deed: BEGINNING at the intersection of the South right-of-way line of Delaware Street (100-foot right-of-way) and the West right-of-way line of Dowlen Road; THENCE with the East line of said 356.24 acre tract of land and the West right- of-way line of said Dowlen Road as follows: - South 46° 38' 29" East, 71.03 feet to a point for corner; - South 01' 29' 54" East, 1,020.43 feet to a point for corner at the beginning of a curve to the right; - Along the arc of said curve to the right, having a radius of 1,103.22 feet, a central angle of 34° 52' 43", an arc length of 671.58 feet and a chord of South 15' 56' 27" West, 661.26 feet to a point for corner; - South 33° 22' 49" West, 676.38 feet to a point for corner at the Easternmost Southeastern corner of said 356.24 acre tract of land; THENCE with the Southeastern lines of said 356.24 acre tract of land as follows: - North 52' 02' 47" West, 895.70 feet to a point for corner; - South 17' 40' 16" West, 979.76 feet to a point for corner; - North 70' 37' 12" West, 71.57 feet to a point for corner; - South 88° 37' 33" West, 242.50 feet to a point for corner; i - South 01° 25' 51" East, 570.34 feet to a point for corner; - South 01° 27 47" East, 399.76 feet to a point for corner; - South 88' 35' 58" West,1,691.15 feet to a point for corner; - South 01' 21' 56" East, 539.95 feet to a point for corner; - South 89' 12' 54" West, 322.92 feet to a point for corner; - South 00' 42' 53" East, 454.55 feet to a point for corner; - South 89' 07' 58" West,150.00 feet to a point for corner; - South 00° 42' 53" East, 199.68 feet to a point for corner in the North right- of-way line of Gladys Avenue (60-foot right-of-way) and being the Southernmost Southeastern corner of said 356.24 acre tract of land; THENCE South 89' 05' 45" West with the South line of said 356.24 acre tract of land and the North right-of-way line of said Gladys Avenue, 806.54 feet to a point for corner at the Southwest corner of said 356.24 acre tract of land; THENCE with the West line of said 356.24 acre tract of land as follows: - North 00° 36' 51" West,1,065.58 feet to a point for corner; - North 00' 36' 45" West,1,122.34 feet to a point for corner; - South 87' 17' 20" West, 351.02 feet to a point for corner; - North 01' 24' 42" West, 2,152.60 feet to a point for corner at the Northwest corner of said 356.24 acre tract of land; THENCE North 87° 14' 14" East with the North line of said 356.24 acre tract of land,1,372.55 to a point for corner on the arc of a curve to the right in said South right- of-way line of said Delaware Street; THENCE with the North line of said 356.24 acre tract of land and said South right-of-way line of said Delaware Street as follows: - Along the arc of said curve to the right, having a radius of 3,020.88 feet, a central angle of 29' 15' 52", an arc length of 1,542.95 feet and a chord of North 74' 05' 40" East,1,526.23 feet to a point for corner; - North 88° 43' 36" East, 2,302.43 feet to the PLACE OF BEGINNING: containing 364.59 acres of land, more or less.