Loading...
Ord. 1212 04-25-05ORDINANCE NO. 1212 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, FINDING THAT THE CITY HAS ESTABLISHED GUIDELINES AND CRITERIA FOR GRANTING TAX ABATEMENT PURSUANT TO RESOLUTION NO. R2003-121; DESIGNATING AND DESCRIBING A REINVESTMENT ZONE (TO BE KNOWN AS REINVESTMENT ZONE #13), IN ACCORDANCE WITH THE PROPERTY REDEVELOPMENT AND TAX ABATEMENT ACT; FINDING THAT THE IMPROVEMENTS SOUGHT ARE FEASIBLE AND PRACTICAL AND WOULD BE A BENEFIT TO THE LAND TO BE INCLUDED IN THE ZONE AND THE MUNICIPALITY AFTER THE EXPIRATION OF THE TAX ABATEMENT AGREEMENT; AUTHORIZING THE CITY MANAGER TO SIGN TAX ABATEMENT AGREEMENTS WHEN APPROVED BY THE CITY COUNCIL; HAVING A SAVINGS CLAUSE AND A SEVERABILITY CLAUSE; PROVIDING FOR CODIFICATION AND AN EFFECTIVE DATE. WHEREAS, Chapter 312 of the Texas Tax Code (the "Property Redevelopment and Tax Abatement Act") provides for the designation of a Reinvestment Zone or area; and WHEREAS, the City Council has, pursuant to Resolution No. R2003-121, established Guidelines and Criteria for Granting Tax Abatement; and WHEREAS, a certain area of the City of Pearland meets the criteria and guidelines heretofore established by the City Council required for designation as a Reinvestment Zone; and WHEREAS, the City Council, on April 1 1, 2005, held a public hearing on the designation of a Reinvestment Zone and finds that the improvements sought are feasible and practical and would be a benefit to the land to be included in the zone and to the municipality after the expiration of an agreement under the Property Redevelopment and Tax Abatement Act; now, therefore, ORDINANCE NO. 1212 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS: Section 1. That pursuant to the Property Redevelopment and Tax Abatement Act, the City Council of the City of Pearland, Texas, hereby designates as a Reinvestment Zone the area described in Exhibit "A" attached hereto and made a part hereof for all purposes, to be known as Reinvestment Zone #13. Section 2. That the area described in Exhibit "A" is reasonably likely, as a result of this designation, to contribute to the retention or expansion of primary employment, or to attract major investment into the zone that would be a benefit to the property and that would contribute to the economic development of the City, and that the improvements sought are feasible and practical and would be a benefit to the land to be included into the zone and to the municipality after the expiration of a Tax Abatement Agreement as authorized by the Property Redevelopment and Tax Abatement Act. Section 3. That the designation of the Reinvestment Zone herein expires five (5) years from the effective date of this ordinance and may be renewed by a subsequent ordinance of the City Council for a period not to exceed an additional five (5) years. That expiration of the original designation shall not affect an agreement entered into under the provisions of this ordinance. Section 4. That the City Council hereby authorizes agreements in writing with the owner of any taxable real estate located within the designated Reinvestment Zone, 2 ORDINANCE NO. 1212 subject to the requirements and optional provisions of the Property Redevelopment and Tax Abatement Act and the conditions of the Guidelines and Criteria for Granting Tax Abatement heretofore adopted by the City Council. Section 5. That any agreement to be entered into under the provisions of this ordinance must be approved by the affirmative vote of a majority of the members of the City Council at a regularly scheduled meeting of the City Council. On approval by the City Council, the agreement may be executed by the City Manager. Section 6. Savings. All rights and remedies which have accrued in favor of the City under this Ordinance shall be and are preserved for the benefit of the City. Section 7. Severability. If any section, subsection, sentence, clause, phrase or portion of this Ordinance is for any reason held invalid, unconstitutional or otherwise unenforceable by any court of competent jurisdiction, such portion shall be deemed a separate, distinct, and independent provision and such holding shall not affect the validity of the remaining portions thereof. Section 8. Codification. It is the intent of the City Council of the City of Pearland, Texas, that the provisions of this Ordinance shall be codified in the City's official Code of Ordinances as provided hereinabove. Section 9. Effective Date. This Ordinance shall become effective upon passage and approval of its second reading. PASSED and APPROVED ON FIRST READING this the llth day of April , A.D., 2005. 3 ORDINANCE NO. 1212 ATTEST: of TOM REID MAYOR PASSED and APPROVED ON SECOND AND FINAL READING this the 25th day Apri1 ATTEST: , A.D., 2005. APPROVED AS TO FORM: DARRIN M. COKER CITY ATTORNEY % c.,47 TOM REID MAYOR 4 STATE OF TEXAS § COUNTY OF BRAZORIA § METES AND BOUNDS DESCRIPTION of a 15.175 acre tract in the H.T. & B.R.R. CO. Survey, Abstract No. 232, Brazoria County, Texas. Said 15.175 acre tract is out of Lot 84 of the W. Zychlinski Subdivision as recorded in Volume 29, Page 43 of the Brazoria County Deed Records, and is further described as being all of a 15.1656 acre tract described as Tract One in a deed to Energy Coatings Company, as recorded in Clerk's File No. 90788 558 in the Brazoria County Clerk's Office. Said tract is more particularly described by metes and bounds as follows: COMMENCING at a 5/8-inch iron rod found at the intersection of the north right-of-way line of Knapp Road (based on a width of 50-feet) and the east right-of-way Tine of the Atchison, Topeka, and Santa Fe Railroad (based on a width of 100-feet), said point also being the southwest comer of a 64.6397 acre tract described as Tract I in a deed to Energy Coatings Company as recorded in Clerk's File Number 90788 561 at the Brazoria County Clerk's Office; THENCE, East, along the north right-of-way line of said Knapp Road for a distance of 1,084.39 feet to a 5/8-inch iron rod found for the POINT OF BEGINNING for the herein described 15.175 acre tract, said point being in the west line of the aforementioned Lot 84; THENCE, North, along the west line of said Lot 84 for a distance of 1006.05 feet to a 5/8-inch iron rod set for the northwest comer of the herein described tract THENCE, North 89°36'30" East, along the north line of said 15.1656 acre tract for a distance of 655.60 feet to a 5/8-inch iron rod set for the northeast comer of the herein described tract THENCE, South, along the east line of said 15.1656 acre tract for a distance of 1,010.53 feet to a 5/8-inch iron rod set in the aforementioned north right-of-way line of Knapp Road, said point being the southeast comer of the herein described tract; THENCE, West, along the north right-of-way line of Knapp Road for a distance of 655.60 feet to the POINT OF BEGINNING, containing a computed area of 15.175 acres (661,037 square feet). NOTE: 1. The bearings shown hereon are based on the deed recorded in Clerk's File No. 90788 558 at the Brazoria County Clerk's Office. 2. A separate survey plat has been prepared in connection with this metes and bounds description. 3. All rods set were set with cap stamped 'Wlson Survey Group". The Wilson Survey Group, Inc. 2006 E. Broadway, Suite 105 0 Pearland, Texas 77588 f, (281) 485-3991 Job No: 05-123 t t :to 4 D ciOls Michael D. Wilson Registration No. 4821 o4(0i 1os APPLICATION FOR TAX ABATEMENT IN THE CITY OF PEARLAND It is recommended that this application be filed at least 90 days prior to the beginning of construction of the installation of equipment. The filing of this document acknowledges familiarity and conformance with Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone Created in the City of Pearland (attached). Please review Instructions attached before executing this application. This application will become part of the agreement and any knowingly false representations will be grounds for the City to void the agreement. Original copy of this request should be submitted to the Pearland Economic Development Corp. Executive Director, City of Pearland, 3519 Liberty Drive, Pearland, Texas 77581. Please attach exhibits and additional information. APPLICANT INFORMATION Company Name: ShawCor Pipe Protection LLC Address: 4501 Knapp Road Consecutive years in business 30 Corporation (X) Application Date 19-Jan-05 Number of Current Employees: 101* Annual Sales: $14,000,000* - 2004 *Pearland location Partnership ( ) Proprietorship ( ) Please submit financial statements for the prior two years. PROJECT INFORMATION Type of facility: Manufacturing (X) Reg. Distribution Center (See Instructions) Regional Service ( ) Reg. Entertainment Center Other Basic Industry () () () Location address and description of area to be designated as reinvestment zone (attach map showing site and legal description): 4501 Knapp Road Description of eligible improvements (real property) to be constructed (This includes fixed equipment, buildings, parking lots, etc.): 25,000 sq. ft. building and pipe coating equipment Description of ineligible property to be included in project. (This includes inventory and personal property.): N/A Will this project require any permits by other federal, state or county agencies? If so, please list the name of the permit, the permitting agency and a description of why and what the permit is needed for: The current and existing permits for air emissions, storm water management, and waste management are adequate for this expanded activity. A detailed engineering study of the TCEQ regulations has been completed and all existing permits are valid and correct for this additional activity. Once the facility has been constructed, the current Spill Convention Control and Countermeasures Plan, and Storm Water Pollution Prevention Plan will be amended accordingly and personnel re-trained on the new plans. The proposed reinvestment zone is located in: City Pearland County Brazoria School District College District Other Taxing Jurisdictions Brazoria Pearland ISD Alvin Community Tax ID number 1-02-0641-7 Description of product(s) or service to be provided (proposed use): Application of insulated coating to line pipe Description of operations, processes involved, general overview: See attached method statement ATTACH A STATEMENT explaining the general nature and extent of the project, describing existing site and improvements; describe all proposed improvements and provide list of improvements and equipment for which abatement is requested. Include a proposed time schedule for undertaking and completing the planned improvements as well as the company officials and agents who will oversee the construction. Describe other sites that are under consideration. See attached Project Description NEW PLANT (X) EXPANSION (X) MODERNIZATION ( ) ECONOMIC INFORMATION A. Construction Estimates Commencement Date: Construction Man Years: Completion Date: Peak Construction Jobs 29-Mar-05 2.75 1-July-05 40 B. Permanent Employment Estimates (FTE's) IF MODERNIZATION: Estimated Economic Life of Existing Plant: Added Economic Life from Modernization: 5 Years N/A Years Current Employment: 101 Current Annual Payroll 2,715,926 average annual or hourly salary: $10.00_ Number of jobs retained ( N/A ) created ( 48* ) at start/opening of this project: 48* in year 2005 5 years into operation 48* in year 2010 Local Transfer July 1, 2005 37 11 July 1, 2006 43 5 July 1, 2007 43 5 Total Est. Salaries 48 $500,000 fixed, balance variable 48 $500,000 fixed, balance variable 48 $500,000 fixed, balance variable *When facility is relocated, some automation will be involved and the number could be reduced C. Other Estimated Taxes Generated by Project (1) Sales Taxes: 2006: $106,882 2007: $106,882 2008: $106,882 2009: $106,882 2010: $106,882 20 : $ 20 : $ 20 : $ (2) Other Taxes or fees (if known, impact fees, building fees, etc.): Property taxes are estimated at $32.5K first year and $63K subsequent years. Suggest we inquire as to the possibility of having some of this abated. D. Estimated Appraised Value on Site: Land Building & Fixed Equipment Bus. Personal Property & Inventory I. Total of pre-existing value (Jan 1 preceding abatement) 0.817 million 5.5 million 0.351 million II. Estimated value of NEW land added Estimated value of NEW improvements Estimated value of NEW fixed equipment Estimated value of NEW personal property and inventory added Total of NEW value added (Total columns in Sec. II above) N/A N/A N/A N/A 1.7 million 0.756 million N/A N/A N/A N/A N/A .500 million .500 million 0 2.46 million III. Total value at end of Tax Abatement (Total Part I & II) 0.817 million 7.96 million 0.851 million Above information is per tax statements not Book Value and although we are showing a value in Land, SPPLLC does not own the land but pays property taxes based on above values. TAX ABATEMENT REQUESTED 50 % of eligible property for a term of 3 years (Or) ( ) Requesting Staggered Tax Abatement Terms as follows: VARIANCE Is the applicant seeking a variance under Section 3(f) of the Guidelines? If "YES" attach required supplementary information. OTHER ABATEMENTS: Has company made application for abatement of this project by another taxing jurisdiction or nearby counties? If "YES" provide dates of application, hearing dates, if held or scheduled, name of jurisdictions and contacts, and letters of intent. YES() NO( ) YES() NO( ) COMPANY REPRESENTATIVE TO BE CONTACTED Name: John Andrews Title: Group Controller Address: ShawCor Pipe Protection LLC 2350 N. Sam Houston Parkway, Suite 500, Houston, TX 77032 Telephone: (281) 886-2350 Authorized ny Official: IAy: P 'nted ame: Tit • 6rr204/9 (-1&/ Revised November 21, 2000 INSTRUCTIONS Applicants and projects must meet the requirements established by the City of Pearland Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone found in Resolution No. R98-59 (attached) in order to receive positive consideration. Section 2 of the Guidelines, for example, sets out regulations governing eligible facilities, eligible and ineligible improvements, terms and economic qualifications. Conformance with all sections, however, is required for eligibility. APPLICANT INFORMATION The taxing unit may consider applicant financial capacity in determining whether to enter into an abatement agreement. Established companies for which public information is available, or the wholly owned businesses of such companies, should include with the application a copy of their latest annual report to stockholders. Other applicants and new companies should attach a statement showing when the company was established, business references (name, contact and telephone number of principal bank, accountant and attorney) and may be required to submit an audited financial statement and business plan. PROJECT INFORMATION Only facilities listed in Section 2(a) of the Guidelines may receive abatement without applying for a variance. Check guideline definitions in Section 1 to see if project qualifies. If project is a Regional Entertainment Facility, Regional Service Facility, Regional Distribution Center Facility or Other Basic Industry, the application should include market studies, business plans, agreements or other materials demonstrating that the facility is intended to serve a market the majority of which is outside of the City of Pearland region. ECONOMIC INFORMATION Permanent Employment Estimates - In estimating the permanent employment, include the total number of jobs retained or created at this site by your firm as well as known permanent jobs of service contractors required for operation. Estimated Appraised Value on Site - The value as of January 1 immediately preceding abatement should be the value established by the Brazoria County Appraisal District. If the applicant must estimate value because the taxable value is not known or is combined with other properties under a single tax account, please so state. Projections of value should be a "best estimate" based on taxability in Texas. The projection of project values not abated should include personal property and ineligible project -related improvements such as office space in excess of that used for plant administration, housing, etc. SAMPLE PROJECT DESCRIPTION The project will be the construction of a new manufacturing facility that will also include our sales and engineering staff. We expect to have approximately 150-160 employees on site. We expect the project will require the construction of a building of approximately 70,000 square feet at a cost of approximately $2.6-$2.8 million. It is anticipated that fixed manufacturing equipment of approximately $1,500,000 will be included in the project. Tax abatement will be sought on all items allowed by law. SAMPLE TIME SCHEDULE September - Dec 31, 2001 January 1 - Jan 30, 2002 February 1-February 28, 2002 March 1 - March 30, 2002 April 1-November 15, 2002 November 16 - December 25, 2002 December 30, 2002 Legal work, conceptual phase, contractor selection Wetlands study, 1 St phase architecture, soils engineering, topographical mapping, detention pond engineering Architectural drawings, final engineering, permits and applications Bids and initial site work Construction Move -in, start up Completion DO NOT WRITE IN THIS AREA -- FOR PROCESSING PURPOSES ONLY 1. EDC contact 2. Precinct 3. Jurisdictions notified 4. Initial review completed 5. Review circulated 6. ISD concurrence? 7. College concurrence? 8. City concurrence? 9. Letter of Intent 10. Hearing noticed on agenda 11. Public hearing 12. ISD action 13. College action 14. City action 15. Agreement signed / / / / / / / / / / / / / / SHAWCOR PIPE PROTECTION A SHAWCOR COMPANY February 10, 2005 Project Description Bredero Shaw is currently evaluating where to move its existing glass syntactic polyurethane pipe coating plant (ThermoFlo @) from Mobile Alabama. The current candidates are as follows; i) Leave the plant in Mobile, Alabama ii) Move to our existing Veracruz, Mexico facility iii) Move the plant to our existing Pearland, Texas facility Due to upcoming offshore projects and mobilization times we must select the location very soon. Product/Process ThermoFlo is a coating system which is used to insulate pipe carrying oil from very deep water regions in the Gulf of Mexico and other regions. The system is made up of polyurethane materials and insulation additives which are then mixed and pumped onto the pipe. Please refer to the attached Method Statement in Appendix 1 for a graphic review of the process. Future Site Improvements We provide the attached draft site layout in Appendix 2. The main site improvements would be to bring in additional power, water and install building and coating equipment. Business Operations The coating process is laid out in Appendix 1. We are a contracting company and tender to win coating projects from all the major oil companies, steel mills, and offshore installation contractors. The normal business process is that once we win a contract the Client would free issue the bare steel pipe to us and we would apply a anti -corrosion coating to the pipe using the existing Pearland coating facilities. The pipe would then be brought to the ThermoFlo facility and the ThermoFlo material is mixed and pumped into a mold on the pipe. After the pipe is cured and quality control tests are performed the pipe will be stacked into the existing pipe storage yard. When the offshore installation process begins the pipe will be trucked from the yard to be loaded onto barges (or ships for export work) to be taken to the installation vessel offshore. SHAWCOR PIPE PROTECTION LLC 2350 N. Sam Houston Parkway E., Suite 500, Houston, Texas 77032 Tel: 281-886-2350 Fox, 281-886-2351 www.brederoshaw.com SHAWCOR PIPE PROTECTION A SHAWCOR COMPANY Economic Impacts Running Costs We forecast a market of approximately $20M per year in GoM and export projects. If we obtain a 50% market share (our historical share in Deepwater has been closer to 70%) we could expect the following; $3 million impact to the local community on labor, supplies, logistics, and support State and Federal Permits TCEQ review shows all required permits currently in place with existing operations, no further permitting will be required. Appendix List 1 - Method Statement 2 - Layout Drawing SHAWCOR PIPE PROTECTION LLC ..___..., ,,..-.. 2350 N. Sam Houston Parkway E., Suite 500, Houston, Texas 77032 Tel 281-886-2350 Fax: 281-886-2351 wv✓w. brederoshaw. com BREDERO SHAW Method Statement GsPU Insulation Linepipe Coating L*gi 1. Incoming Pipe Rack 2. FBE Coating Inspection, Holiday Detection After satisfactorily checking for contamination, each pipe will be subjected to 100% holiday detection and all holidays will be marked and recorded. Any necessary repairs will be carried out in accordance with the specified FBE repair procedure and re -detected once cured. FBE Inspection Area: Method Statement: GsPU Insulation Linepipe Coating BREDERO SHAW Method Statement GsPU Insulation Linepipe Coating 3. Cleaning The scope of the FBE Coated pipe shall be abraded to provide a clean, new surface for the application of the GsPU. 4. FBE Coating Inspection Prior to transportation to the preheat station, the washed surface shall be examined. 6. Preheating The pipe is then loaded onto a transport buggy and preheated, using induction coils to the required temperature. The pipe is then transferred to the polyurethane application station. Pipe Pre -heat: Method Statement: GsPU Insulation Linepipe Coating BREDERO SHAW Method Statement GsPU Insulation Linepipe Coating 7. Mould Preparation, Plastic Spacer Installation To maintain concentricity, prior to the installation of the preheated pipe into the mould, a permanent plastic spacer will be located in the lower mould segment. This spacer (designed to have minimal contact with the pipe surface) shall be fixed in the centre of the lower mould segment. Mould Preparation: 8. Pipe Insertion The pipe is lowered into the lower mould segment using an overhead crane. Method Statement: GsPU Insulation Linepipe Coating BREDERO SHAW Method Statement GsPU Insulation Linepipe Coating 9. GsPU/sPU Material Mixing and Transfer The polyurethane components are machine mixed to the required ratio of Polyol and Isocyanate. Mixing Head: Method Statement: GsPU Insulation Linepipe Coating BREDERO SHAW Method Statement GsPU Insulation Linepipe Coating 10. GsPU/sPU Injection Once the pipe has been inserted into the mould, polyurethane is injected through the mould port. During the polyurethane injection the mould is inclined at an angle of 30o-45o to the horizontal. On completion of polyurethane injection the mould will be left inclined for a minimum of eight minutes to allow for the initial coating cure. Mould Injection: Method Statement: GsPU Insulation Linepipe Coating BREDERO SHAW Method Statement GsPU Insulation Linepipe Coating 11. De -mould On completion of coating cure the pipe is de -moulded. 12. Holding Area The pipe is transferred to a controlled holding area and held for a further four hours to allow curing to be completed. During this time any necessary surface repairs are carried out. The pipe will then be subjected to quality control testing and cutback / end formation checks. After the doubler pad attachment area is cleaned, further repairs will be made if necessary. End caps will be re -fitted and color coded pipe identification bands will be applied prior to handling to stockpile or prior to load -out. 13. Transport to Stockpile The pipe is then transported to stockpile. Mould O ' enin . : Pi ' e Removal: Mixin • Facili : Method Statement: GsPU Insulation Linepipe Coating J:\P05'1903.dwg 1C28C20051013:06AM ` � � 8 � ~ I- ' � � � ~ [_ ` | i ----- - L � | | �--------1 ( `| \ � ) 1 `- ' ` r � � ' / </ kl•A e c„-_-11 (0788 563 EXHIBIT "A" TRACT I 64.6397 acres of land, in Brazoria County, Texas and being Tracts Eight -Five (85) and Eighty -Six (86), out of the Zychlinski Subdivision of Section Three (3), and Four (4), H.T. & B.R.R. Co. Survey, Abstracts 232 and 543, as recorded in Volume 29, Page 43, Deed Records of Brazoria County, Texas: BEGINNING at the intersection of the West boundary of Tract Eighty -Six (86), (East right-of-way of G.C. & S.F.R.R.) and the center line of Clear Creek, said point being North 13 deg. 51 min. 40 sec. West 33.87 feet from a one-half (1/2) inch iron rod; THENCE with the meanders of Clear Creek along its center line the following: South 80 deg. 25 min. 18 sec. East a distance of 26.64 feet; South 67 deg. 30 min. 41 sec. East a distance of 100.65 feet; South 50 deg. 29 min. 22 sec. East a distance of 136.75 feet; South 80 deg. 36 min. 16 sec. East a distance of 70.45 feet; North 84 deg. 17 min. 22 sec. East a distance of 50.25 feet; North 69 deg. 22 min. 52 sec. East a distance of 373.42 feet; North 77 deg. 26 min. 05 sec. East a distance of 85.04 feet; North 87 deg. 01 min. 19 sec. East a distance of 86.62 feet; South 65 deg. 17 min. 21 sec. East a distance of 124.39 feet; North 84 deg. 35 min. 46 sec. East a distance of 74.33 feet; North 72 deg. 34 min. 55 sec. East a distance of 53.45 feet; North 38 deg. 39 min. 35 sec. East a distance of 92.85 feet; North 33 deg. 32 min. 56 sec. East a distance of 281.37 feet; North 23 deg. 35 min. 24 sec. East a distance of 124.94 feet; North 87 deg. 03 min. 52 sec. East a distance of 58.58 feet; South 81 deg. 48 min. 58 sec. East, a distance of 163.13 feet to the intersection of said center line of Clear Creek with the East boundary of Tract Eighty -Five (85) of the above described subdivision, for the Northeast corner of this 64.6397 acres of land; THENCE South 00 deg.00 min. 25 sec. East along the said East boundary of Tract Eighty -Five (85), passing a one-half (1/2) inch iron rod set on the high bank at 45.79 feet, continuing and passing an old three -fourths (3/4) inch ircn pipe at 2,418.93 feet, and continuing a total distance of 2,443.98 feet to a point in the center line of Knapp Road for the Southeast corner of Tract Eighty - Five (85) and this 64.6397 acre tract being described. ;J s u8 i64 THENCE South 89 deg. 59 min. 19 sec. West a total distance of 1,078.23 feet to a point for the Southwest corner of this 64.6397 acres tract, said point being in the East right-of-way of the G.C. & S.F.R.R. and being South 06 deg. 58 min. 07 sec. West 0.36 feet from an existing iron rod; THENCE along East right-of-way of the railroad and the West boundary of Tract Eighty -Six (86), North 13 deg. 51 min. 40 sec. West passing a one-half (1/2) inch iron rod at 37.58 feet, and continuing and passing a one-half (1/2) inch iron rod at 2,081.58 feet, and continuing a total distance of 2,115.45 feet to the PLACE OF BEGINNING, and containing 64.6397 acres of land. TRACT II A tract of land containing 10.170 acres of land out of Lot 83, HT&B Railroad Company Survey, Section 3, A-232, Brazoria County, Texas and being a part of a 26.162 acre tract described in Volume 358, Page 402 of the Deed Records of Brazoria County, Texas; being more particularly described by metes and bounds as follows: BEGINNING at an iron rod in the west line of State Highway 35 (100.00' right-of-way) for the southeast corner, said point being the southeast corner of said 26.162 acre tract. THENCE South 80° 14' 35" West along the south line of said 26.162 acre tract and a fence line 1646,58 feet to an iron rod at the southwest corner of said 26.162 acre tract for the northwest corner; THENCE North 1°, 29' 06" West along the west line of said 26.162 acre tract and a fence line, 273.32 feet to an iron rod for the northwest corner; THENCE North 89° 34' 36" East along a fence line 1653.55 feet to an iron rod in the west line of State Highway 36 for the northeast corner, said point being the east line of said 26.162 acre tract; 2 `1O788 5b5 THENCE South along the east line of said 26.162 acre tract and the west line of State Highway 35, 263.69 feet to the PLACE OF BEGINNING. TRACT III An 11.8854 acre tract of land out of a 32.2427 acre tract of land recorded in Volume 1243, Page 692, of the Deed Records of Brazoria County, Texas, out of the HT&B Railroad Company Survey, Section 3, A-232, and the R.B. Lyle Survey, A-542, Pearland, Brazoria County, Texas: being more particularly described by metes and bounds as follows: BEGINNING at a 5/8-inch iron rod found for the southwest corner of this tract and marking the southeast corner of the Ray Bellow 3.0171 acre tract located in the south line of said 38.2427 acre tract and the North right-of-way line of Knapp Road (50.0 feet wide), from which a 5/8-inch iron rod marking the southeast corner of a 15.1656 acre tract recorded in Volume 509 at Page 796, Brazoria County Deed Records, bears west a distance of 130.0 feet; THENCE North along the east line of said 3.0171 acre tract and along a fence line, a distance of 1011.42 feet to a 5/8-inch iron rod found for the northwest corner of this tract and marking the northeast corner of said 3.0171 acre tract; THENCE North 89° 36' 30" East along the northerly line of said 38.2427 acre tract and along a fence line, a distance of 511.02 feet to a 5/8-inch iron rod found for the northeast corner of this tract and marking the northwest corner of a 1.4463 acre tract from which a 5/8-inch iron rod marking the northeast corner of said 38.2427 acre tract located in the east right-of-way line of Main Street (Telephone Road, 100.0 feet wide) bears North 89° 36' 30" East a distance of 350.01 feet; THENCE South along the west line of several small tracts and as extended, passing a 5/8-inch iron rod on line at 180.0 feet, at 330.0 feet, at 360.0 feet and at 517.0 feet, in all a total distance of 1014.91 feet to a 5/8-inch iron rod set for the southeast corner of this tract in the north right-of-way line of 3 (10788 56 Knapp Road which, the southeast corner of said 38.2427 acre tract located 1.7 feet south and 0.5 feet west of fence corner, bears east a distance of 350.0 feet; THENCE West along the south line of said 38.2427 acre tract and the north right-of-way line of Knapp Road a distance of 511.0 feet to the PLACE OF BEGINNING, and containing 11.8854 acres of land. THE STatF OFIF%/3 . CnL11irY OF RPAZORIA IT n ^t.LY PAIL EY, O.rk M the Cooe.r Co.m k..r.d Inr lnrn.,. C.. inry. .or c.rnly th.r1nr11mnun+new..F1IE0 FOP rF7O".r'.,4 o. r..n spine VnwnNe and w!..I Me OFFICIAL RFCOR).rnv In. r- ...mood Morgan b. m. 020590SLB ID 411-4 / Courts, Cork .I Or..o.i. Co... TX FILED FOR RECORD MAY 16 11 22 AH'90 • iK I T TEXAS 4 TRACT ONE: A 15.1656 acre tract being the Western portion; and TRACT TWO: A 3.0171 acre tract; Tract One and Tract Two both being a part of a 38.2427 acre tract of land out of the H.T. & B. RR Survey, A- 232 and the R.B. Lyle Survey, A-542, and being the South portions of Tract 84 and 83 West of Telephone Road of the Zychlinski Subdivision, Pearland, Brazoria County, Texas, and both tracts being more particularly described by metes and bounds on Exhibit "A" attached hereto and made a part hereof. International Steel Group Inc. One Martin Tower Bethlehem, PA 18018-2217 Susan Moss, Paralegal ShawCor Pipe Protection LLC 2350 N. Sam Houston Pkwy. E. Suite 500 Houston, Texas 77032-3130 Dear Ms. Moss: ROGER G. OCHSE Consultant Direct Dial: 610-694-5478 Facsimile: 610-6 94-290 5 E-Mail: rochse@intlsteel.com December 1. 2003 Via Fax 281 886-2355 I am writing in response to your email message of November 25 regarding the acquisition of the Energy Coating Net Lease by Tecumseh Redevelopment Inc. On May 8, 2003 International Steel Group acquired substantially all the assets of Bethlehem Steel Corporation through the bankruptcy process. At closing ISG conveyed the Pearland, Texas property, along with all related real estate documents to Tecumseh Redevelopment Inc., an ISG subsidiary. As a result, all rental payments should be made to Tecumseh. To evidence those transactions, I am enclosing excerpts from the Asset Purchase Agreement between Bethlehem and ISG, and the court order approving the sale: • Portion of the April 23, 2003 court ruling by United States Bankruptcy Judge Burton R. Lifland approving the transaction, and referencing the Acquired Assets and Acquired Contracts. • List of Acquired Contracts from Asset Purchase Agreement — See item 372. • Asset Purchase Agreement Index to Real Estate acquired. — See item XVI. Payments should be made to: Tecumseh Redevelopment Inc. Attn: Keith Nagel 2350 Interstate Drive, 2"d Floor Richfield, OH 44286-9000 By copy of this letter, I am passing on your request that in the future invoices are issued for the quarterly rental payments in the amount of $34,915.00. Please advise if additional information would be helpful. Very truly yours, R. G. Ochse Cc Keith Nagel 330 659-7434