R2005-0084 05-09-05 RESOLUTION NO. R2005-84
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, AUTHORIZING THE CITY MANAGER OR HIS DESIGNEE TO
ENTER INTO A TAX ABATEMENT AGREEMENT WITH SHAWCOR PIPE
PROTECTION ("SCPP"); FINDING AND DETERMINING THAT TERMS OF
SAID AGREEMENT MEET THE REQUIREMENTS OF CHAPTER 312 OF
THE TAX CODE, V.A.T.S. AS AMENDED, ORDINANCE NO. 1212,
ESTABLISHING REINVESTMENT ZONE#13, AND THE GUIDELINES AND
CRITERIA FOR GOVERNING REINVESTMENT ZONES AND TAX
ABATEMENT AGREEMENTS SET FORTH IN RESOLUTION NO. R2003-
121.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1 . That certain Tax Abatement Agreement, by and between the
City of Pearland and SCPP, a copy of which is attached hereto as Exhibit "A" and
incorporated herein for all purposes, is hereby authorized and approved.
Section 2. The City Council finds and determines that the Tax Abatement
Agreement and the property subject to this agreement meet the requirements of
Chapter 312 of the Tax Code, V.A.T.S. as amended, Ordinance No. 1 21 2, which
established Reinvestment Zone #13, and the Guidelines and Criteria for Governing
Reinvestment Zones and Tax Abatement Agreements set forth in
Resolution No. R2003-121 .
Section 3. The City Manager or his designee is hereby authorized to execute,
and the City Secretary to attest, said Tax Abatement Agreement and any counterparts
thereof.
PASSED, APPROVED, AND ADOPTED this the 9th day of May
A.D., 2005.
RESOLUTION NO. 2005-84
C ,k2 aV
TOM REID
MAYOR
ATTEST:
NGL , T C
Y SE ETARY
APPROVED AS TO FORM:
ca,,,,........ / . -
DARRIN M. COKER.
CITY ATTORNEY
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Exhibit "A"
Resolution No. R2005-84
THE STATE OF TEXAS §
COUNTIES OF BRAZORIA, §
FORT BEND, AND HARRIS §
TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement("Agreement") is entered into by and between the City of
Pearland, Texas, a home rule city and Municipal Corporation of Brazoria, Fort Bend, and
Harris Counties, Texas, duly acting by and through its City Manager ("City"), and ShawCor Pipe
Protection,LLC.,duly acting by and through Lee 1iCvc...nS ,its Pres: eekl ("SCPP").
WITNESSETH :
WHEREAS, on the 25th day of April,2005 the City Council of the City of Pearland, Texas,
passed Ordinance No. 1212 establishing Reinvestment Zone#13 in the City of Pearland,Texas,for
general business tax abatement, as authorized by Chapter 312, Tax Code, V.A.T.S. as amended
("Code"); and
WHEREAS,the City has adopted Resolution No.R2003-121,which established appropriate
guidelines and criteria for governing reinvestment zones and tax abatement agreements to be entered
into by the City as contemplated by the Code; and
WHEREAS,the City's objective is to maintain and/or enhance the general business economic
and employment base of the Pearland area for the long term interest and benefit of the City, in
accordance with Resolution No. R2003-121 and the Code; and
WHEREAS,the contemplated use of the Premises,as hereinafter defined,the contemplated
improvements to the Premises in the amount as set forth in this Agreement and the other terms
hereof are consistent with encouraging development of said Reinvestment Zone in accordance with
the purposes for its creation and are in compliance with Resolution No.2003-121 and the guidelines
and criteria adopted by the City and all applicable law; and
WHEREAS, the Improvements as defined below constitute a major investment within the
Reinvestment Zone that will substantially increase the appraised value of property within the zone
and will contribute to the retention or expansion of primary and secondary employment within the
City; and
WHEREAS,there will be no substantial adverse affect on the provision of city services or on
its tax base and the planned use of the Premises will not constitute a hazard to public safety,health,
or welfare; now,
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THEREFORE :
For and in consideration of the mutual agreements and obligations set forth below, the
sufficiency of which is hereby acknowledged by the parties hereto, SCPP and City mutually agree as
follows:
1. The property to be the subject of this Agreement shall be that property described by
metes and bounds and map attached hereto as Exhibit"A" ("Premises").
2. Construction of SCPP's improvements on the Premises, described in Exhibit "B"
("Improvements") will cost approximately five million dollars ($5,000.000.00) and is to be
substantially complete on or about December 31, 2005; provided, that SCPP shall have such
additional time to complete the Improvements as may be required in the event of"force majeure"if
SCPP is diligently and faithfully pursuing completion of the Improvements. For this purpose,"force
majeure" shall mean any contingency or cause beyond the reasonable control of SCPP including,
without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection,
governmental or de facto governmental action(unless caused by acts or omissions of SCPP),fires,
explosions or floods, and strikes. The date of completion of the Improvements shall be defined as
the date a Certificate of Occupancy is issued by the City of Pearland.
3. SCPP agrees and covenants that it will diligently and faithfully, in a good and
workmanlike manner,pursue the completion of the Improvements as a good and valuable considera-
tion of this Agreement. SCPP further covenants and agrees that all construction of the Improvements
will be in accordance with all applicable state and local laws and regulations or valid waiver thereof
In further consideration, SCPP shall thereafter, from the date a Certificate of Occupancy is issued
until the expiration of this Agreement, continuously operate and maintain the Premises as SCPP,
limiting the use of said Premises to that use which is consistent with the terms of this Agreement and
the general purpose of encouraging development or redevelopment of the Reinvestment Zone during
the period that the property tax exemptions evidenced herein are in effect.
4. SCPP agrees and covenants that the Improvements shall provide a minimum of 37
jobs during the period of the abatement. Accordingly, SCPP shall provide to the City annual
manpower reports (Exhibit"D") within sixty(60) days following the end of each calendar year.
5. Subject to the terms and conditions of this Agreement, and subject to the rights and
holders of any outstanding bonds of the City, a portion of ad valorem property taxes assessed to the
Property and otherwise owed to the City shall be abated. City hereby acknowledges that it is not
aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement.
Said abatement shall be an amount equal to fifty percent (50%) of the taxes assessed upon the
increased value of the Improvements and Fixed Equipment, annually for a period of three(3)years
beginning January 1, 2006, and ending December 31, 2008, in accordance with the terms of this
Agreement and all applicable state and local regulations. The taxable value shall be determined on a
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uniform and equal basis of assessment by the methods used by the Brazoria County Tax Appraisal
District,which information necessary for abatement shall be provided by SCPP to the chief appraiser
of said district. Estimated values, estimated abated values, and estimated base year values for the
Improvements are listed in Exhibit "B".
6. SCPP further agrees that the City, its agents and employees shall have the right to
enter upon the Premises at any reasonable time and to inspect the Improvements in order to
determine whether the construction of the Improvements is in accordance with this Agreement and
all applicable federal, state, and local laws, ordinances, and regulations or valid waiver thereof.
After completion of the Improvements, the City shall have the continuing right to enter upon and
inspect the Premises at any reasonable time, after 24 hours' notice has been given, to determine
whether the Premises are thereafter maintained and operated in accordance with this Agreement and
all applicable federal, state, and local law, ordinances, and regulations. In accordance with
Resolution No. R2003-121, the City will conduct at least one inspection annually to ensure
compliance. Notwithstanding any other provision of this Agreement, if the City determines that a
violation of a federal, state, or local law, ordinance or regulation exists on the Premises, the City
may,in addition to any other authorized enforcement action,provide to SCPP written notice of such
violation. For the purposes of this Agreement, SCPP shall have ten(10) days from the date of the
notice to cure or remedy such violation. If SCPP fails or refuses to cure or remedy the violation
within the ten(10)day period, SCPP is subject to the forfeiture, at the discretion of the City,of any
right to any tax abatement for a portion of the period or the entire period covered by this Agreement.
7. SCPP agrees and covenants that the information provided in the attached Application
for Tax Abatement (Exhibit "C") is true and correct and that any materially false or misleading
information that is provided to the applicable taxing jurisdictions may be grounds for termination of
the agreement with possible liability for recovery of abated taxes.
8. In the event that(1)the Improvements for which an abatement has been granted are
not completed in accordance with this Agreement; or(2) SCPP allows its ad valorem taxes owed to
the applicable taxing jurisdictions to become delinquent and fails to timely and properly follow the
legal procedures for protest and/or contest of any such ad valorem taxes;or(3) SCPP breaches any of
the terms or conditions of this Agreement,then this Agreement shall be in default. In the event that
SCPP defaults in its performance of(1), (2), or (3) above, then the City shall give SCPP written
notice of such default, which notice shall be delivered by personal delivery or certified mail to:
ShawCor Pipe Protection,LLC.,2350 N. Sam Houston Parkway, Suite 500,Houston,Texas 77032.
If SCPP has not cured such default within sixty(60)days of said written notice,this Agreement may
be modified or terminated by the City. Notwithstanding the provisions set forth herein, this
Agreement may be terminated at any time after the execution hereof by agreement of both parties.
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9. In the event that the facility is completed and begins producing product or service,but
subsequently discontinues producing product or service for any reason except fire,explosion or other
casualty or accident or natural disaster for a period of one year during the abatement period,then this
Agreement shall be in default and shall terminate. The abatement of taxes for the calendar year
during which the facility no longer produces shall also terminate.
10. As liquidated damages in the event of default and in accordance with
Section 312.205,Tax Code,V.A.T.S.,as amended,all taxes which otherwise would have been paid
to the City without the benefit of abatement (but without the addition of penalty; interest will be
charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code)
will become a debt to the City and shall be due,owing and paid to the City within sixty(60)days of
the expiration of the cure period stated in paragraph 8 or the termination date stated in paragraph 9,
whichever is applicable. The City shall have all remedies for the recapture and collection of the lost
tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes and
in accordance with Resolution No. R2003-121.
11. The City represents and warrants that the Premises does not include any property that
is owned by a member of its council or boards,agencies,commissions,or other governmental bodies
approving, or having responsibility for the approval of, this Agreement.
12. The terms and conditions of this Agreement are binding upon the successors and
assigns of all parties hereto. This Agreement may be transferred or assigned by SCPP only upon
written permission by the City in accordance with Resolution R2003-121,which permission shall not
be unreasonably withheld. No assignment shall be approved if the assignor or assignee are indebted
to the City for ad valorem taxes or other obligations.
13. It is understood and agreed between the parties that SCPP, in performing its
obligations hereunder,is acting independently,and the City assumes no responsibilities or liabilities
in connection therewith to third parties.
14. SCPP RELEASES, ACQUITS, INDEMNIFIES, AND HOLDS HARMLESS
THE CITY, ITS OFFICERS, AGENTS, EMPLOYEES, SUCCESSORS, AND ASSIGNS,
FROM ANY AND ALL KINDS OF CLAIMS,DEMANDS,LOSSES,DAMAGES,INJURIES,
RIGHTS,CAUSES OF ACTION,OR JUDGMENTS OF WHATSOEVER CHARACTER OR
NATURE, INCLUDING ATTORNEYS' FEES, WHICH MAY ARISE AS A RESULT OF
THIS AGREEMENT. THE PROVISIONS OF THIS SECTION REFLECT THE
EXPRESSED INTENTIONS OF SCPP AND THE CITY AND SHALL SURVIVE THE
TERMINATION, EXPIRATION, OR CANCELLATION OF THIS AGREEMENT.
15. It is understood and agreed by the City and SCPP that if the Premises has been
designated and taxed as agricultural land pursuant to Chapter 23,Subchapter C,Tax Code,V.A.T.S.,
that this Agreement shall not be effective and no abatement granted until SCPP has removed the
agricultural use designation and all taxes due pursuant to Section 23.55, Tax Code, V.A.T.S., as
amended, (roll back taxes) have been paid.
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16. This Agreement was authorized by Resolution of the City Council at its council
meeting on the 9th day of May, 2005, authorizing the City Manager to execute the Agreement on
behalf of the City.
17. This Agreement is entered into by SCPP pursuant to authority granted by its
President, fee , on the 224 day of j,,,, , 20 o S:
18. This shall constitute a valid and binding Agreement between the City and SCPP when
executed in accordance herewith.
19. This Agreement is performable in Brazoria County, Texas.
20. SCPP agrees and covenants to certify annually to the City,while this Agreement is in
effect, that SCPP is in compliance with each applicable term of this Agreement.
Witness our hands this 2s' day of Jv 17 goof.
ATTEST: CITY OF PEARLAND
By. By:
'oung of g Bill Eisen
City cretary City Manager
APPROVED AS TO FORM:
By: - ,
C2k---
Dan-in M. Coker
City Attorney
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ATTEST: SHAWCOR PIPE PROTECTION, LLC.
By: t xa„zi By:
Print. Name. 4Jet,4-r 2. Lard Printed Name: Lee Fin 193
Title: Ad mt'nie`irtfive fl ibt i- Title: Rrr idlen+
6
THE STATE OF TEXAS §
§
COUNTY OF BRAZORIA §
BEFORE ME, the undersigned Notary Public, on this day personally appeared Bill Eisen,
City Manager for the City of Pearland,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
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS 26 DAY OF
'Jl c.j , A.D., 2001.
�/ `\\`\00ununnuu�i,, � 1 DER K, S 4. 1"y-ruiir H
.„.. o P� 1 °,'.''' N AR P BLIC, STATE OF TEXAS
N � y = (hi-Wee-Name: W Sinn K. 'fh
9lF of\�+ Commission Expires: 7. /(0 • amp
� *n.IlinCI ' oO������`\\\
THE STATE OF TEXAS §
o §
COUNTY OF IQri(f 16 §
BEFORE ME, the undersigned Notary Public, on this day personally appeared
QAA►p ‘,ve EJ,Qms ,President of ShawCor Pipe Protection,LLC.,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 consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS a a DAY OF
Z‘K,N-9— , A.D., 2005 .
e_PJALRLISIWC{"\-€14-0(
NOTARY PUBLIC, STATE OF TEXAS
Printed Name: CCU ,; L (vn� K) e, s or)
r,A,"" CATHI LYNNE NELSON My Commission Expires: Ow GJ' U 5�- Oq d OD.o
+• 1� Notary Public,State of Texas '
�, 1' 4..,€ My Commission Expires
Villa, August 09,2006
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Exhibit "B"
IMPROVEMENTS
The project will be the expansion of existing facilities for ShawCor Pipe Protection, LLC..
The Company shall have a minimum number of 37 employees on site during the period of the
abatement. Tax abatement will be sought on all items allowed by law. The improvements are
expected to cost approximately five million dollars ($5,000,000.00).
EXHIBIT
APPLICATION FOR TAX ABATEMENT IN THE 3 C.
CITY OF PEARLAND
>ifEC*;J;Ji-I
It is recommended that this applicatiOn be_.filediatIleak 90 days priontoAthe,,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 itquest.shOuld-be,submitted-to.the Pearland-,Economic Development Corp.
Executive Director, City of Pearland,135r Liberty Drive,-Pearland, Texas ,..77581.-Please attach
exhibits and additional information.
APPLICANT INFORIVIATION. • -
;- /7.11Application-DateA9-Jan-05
Company Name: ShawCor ipe Protection LLC Number of Current Employees: 101*
•
Address-:z,4591,Inapp Road il ,• :Annual Sal6§:''$14;000;000's-2004
.*Pearland location
• con§ecutiNe:years.in,business :3024 - , . . : : • •
Corporation(X) - -,,Partnership i(,,): Proprietorship )
, .
/A _
Pletise Subnikfinaifeid stateiiienlifor theisrioriiiv ears.
PROJECT INFORMATION • - -
Type of facility: Manufacturing- (X) Reg. Distribution Center ( )
(See Instructions) Regional Service ( ) Reg. Entertainment Center ( )
Other'basic Ind.ustry • ( )
Location address and description of area:to be designated as reinvestment zone (attach map
showing site and legal description): 401•_1(napp 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-iincludes inventory and
personal • , •
Will this project require-anypermits 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
•
r‘ 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-thew plans.
The proposed reinvestment zone is located in:
City Pearland
County Brazoria
School-District Pearland ISD
College District: • Alvin Community.
Other:Taxing Jurisdictions Brazoria --
Tax ID number 1-02=0641,-3
Description of product(s) or service:to be provided(prdposed use):
Application of insulated coating to line pipe
Description,o I 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 thaVere under
consideration. See attached Project Description
NEW- ANT (X) EXPANSION (X) MODERNIZATION ( )
ECONOMIC INFORMATION
A. Construction Estimates
IF MODERNIZATION:
Commencement Date: 29-Mar-05 Estimated Economic Life of
Construction Man Years: 2.75 Existing Plant: ' 5 Years
Completion Date: 1-July-05 Added-Economic Life from
Peak Construction Jobs 40 Modernization: N/A Years
B. Permanent Employment Estimates (FTE's)
Current Employment: 101
Current Annual Payroll 2,715,926 average annual or hourly salary: $10:00_
Number of jobs retained( N/A ) created(Al* ) 3
at start/opening of this project:47 in year 2005
5 years into operation 3 in year 2010
Local Transfer Total Est. Salaries
July 1, 2005 37 11 48 $500,000 fixed,balance variable
July 1, 2006 43 5 48 $500,000 fixed,balance variable
July 1, 2007 43 5 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 : $
(2) Other Taxes or fees (if,lcnown; mpactffees ibuil'ding Pfees;etc).: Property taxes are
estimated at$32.5K first year and:°$63=K-subsequ.entyears: Suggest we inquire as to
' the possibility of having some of this abated. ;, •
D. Estimated'Appraised`Value on-Site:
•
Building : Bus.Personal
Land ,;&Fixed Property
Equipment &Inventory
I. Total of pre-existing value 0.817 million 5.5 milllion 0.351 million
(Jan 1 preceding abatement)
II. Estimated value of NEW land:added , , _N/A N/A _N/A
Estimated value of NEW unprovements _N/A 1.7 million N/A
Estimated value of NEW fixed equipment N/A 0.756 million N/A
Estimated value of NEW personal
property and inventory added N/A N/A .500 million
Total of NEW value added 0 2.46 million .500 million
(Total columns in Sec.II above)
III. Total value at end of Tax Abatement 0.817 million 7.96 million 0.851 million
(Total Part I&II)
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? YES ( ) NO ( )
c-
If"YES"attach required supplementary information.
OTHER ABATEMENTS: Has company made application
for abatement of this project by another taxing
jurisdiction or nearby counties? YES ( ) NO ( )
If"YES"provide dates ofapplication,hearingdates,
•if held or scheduled,,name-ofjurisdictions and
contacts, and letters of intent. .
COMPANY REPRESENTATIVE TO BE CONTACTED
Name: -'John Andiews
Title: Group Controller
Address: ShawCor Pipe Protection LLC
2350 N. Sam Houston Parkway, Suite 500,Houston, TX 77032
Telephone: (281) 886-2350
Authorized o y Official:
P ted ame:
e7,--,7zeg,)s) • ;oi,e_t5"asgeJ
_ -
Revised November 21, 2000
EXHIBIT"D"
MANPOWER REPORT
I, of ShawCor Pipe Protection,LLC.,do
certify that on ,20 there were individuals employed full time at
ShawCor Pipe Protection, LLC..
Printed Name:
Title:
Date:
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned Notary Public, on this day personally appeared
of ShawCor Pipe Protection,LLC.,being by
me duly sworn on his/her oath deposed and said that he/she is duly qualified and authorized in all
respects to make this affidavit;and that every statement contained in the Manpower Report is within
his/her knowledge and true and correct.
SUBSCRIBED AND SWORN TO BEFORE ME on the day of
, to certify which witness my hand and official seal.
NOTARY PUBLIC, STATE OF TEXAS
Printed Name:
My Commission Expires:
c
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Applicants',and•projects'must •lineet the 3requirements''lestablished:..by the 'City•-•,.of Pearland
Guidelines and ,C1.4tgria,:foivarardink,,•,T .-Abot03.01t,:, 7,1.:•,.fa 4?-einVean3cpt.„Zoq? found in
Resolution No. '.19759-(444044i4-Opz-,.to receive positive Section 2 of the.
GUidelineS, for'4 ;k3,10,:i.- 61§ out regulations ioinin:'. g.0013):6.4Ciliiiel, aigi Ile and Iiieligible
improvements, terms atikeo-Ondhaid' Conformance with all sections, however, is
retiiiirOdiforieligilii14: -•'•-•,•] :}1?i'i :.:!:'i .:i..'..,,: ,F1 ti ,.7 ,it',''''. : -.' ‘, .•.:-Mi:.,:f..i:'. . . , : ' - .
•....I f: ' !--..:-:.ili: .,.Yt , i .''.: . :
APPLICANT INFORMATION
. ,
The taxing unit may consider applicant financial capacity in deterrilining4hether,to enter•into:-th
abatement agreement. Established companies for which public information is available, or the
wholly ovvgekbuSiOsseSIOsuChitcoMpaniess•,shoulstr;d4P-Me with the application a copy of their
latest 0.10kakt'epptp.. ici*OgkbOldersi.:.,:'Othe4pky0:00,.,and new companies.s.should attach ,a
statenienir.showing Wii' n'T.iiie_:,VOI4(.LY was: established, business I references (name. contact'and
,,i,
telephone)Miinbe?.of pmeipV.t.:b4kiCCOunfaileand'atforiley) and may be required to submit an
audited financialstatementAiidbiiSitieSS:plan., , ,,; :)•':1-•'`.''-,'': „ . .
.!i?•1713.!;.!'.:, i..=PROJECT INFORMATION
Only facilities listed in.Section 2(a) of the dii/JaQkiii4, receive'abatement without applying
Cfor a variance. Check guideline definitiOriST,iit'SeetiOn?rte,see-if PrOjebtiqualifie . if project is'a
Regional Entertainment Facility;Regional Servicefgality,aegional Distribution:Center,Facility
or Other Basic industry, the application 'should include market studies, business plans,
agreepaentici.t:pt4etmatet444:.4p0ngraiimfibatrthefacility ja,intendedp serve a market the
maj ority-t•fWhiciis tithitle of the eity-ofleatta-hd•fekkih:
• .
ECONOMIC INFORMATION- - - -
•
,
Permanent Employment Estimates - Imestimating,the_permanent eniplOyment':include the total
number of jobs retained or created at this site by your firm as wellias-knownpermanent,jobs of
..._
service contractors required for operation.
., .:.
Estimated Appraised Value on Site-The value as of January 1 immediately iireceding:abatement
should•be the value established by the Brazoria County Appraisal Di§friet:: If the applicant must
estimate value because the taxable value is not known or is combined with,pthprTroperties 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 iii-eX6esg ofthat used for plant
administration, housing, etc.
, .
. _
. .
SAMPLE PROJECT DESCRIPTION }
The project wili 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 Legal work, conceptual phase;contractor selection
January-1 Jan'30, 2002 Wetlands`study,`1st phase architecture, soils engineering,
topographical mapping, detention pond engineering
February 1-February 28, 2002 Architectural drawings, final-engineering,permits and
applications
March 1 -March 30, 2002 Bids and initial site work
April 1-November 15, 2002 Construction,
November 16 -December-25, 2002 Move in..•start up . .
December 30,.2002 Comp letion
DO NOT WRITE IN THIS AREA FOR-PROCESSING PURPOSES ONLY
1. EDC contact
2. Precinct
3. lunsdictions=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 / /
SHAX/CORPIPE:PROTECTION
A SHAWCOR COMPANY
February 10,2005
Project Description
Bredero'Shaw rs currently evaluating where to moveits existing glass syntactic polyurethane pipe coating
plant(ThermoFlo'@)frfromMobile.AlaEama Tle current`candidatesare as follows; •
i) Leave the plant in Mobile,Alabama ` ' ' ' ..
ii) Move toour.existing Veracruz,:Mexico facility
iii) Move the plant to our existing Pearland,Texas facility
Due to upcoming offshore projects and mobilizatrontimes 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.
C
SI-I VCOR PIPE PROTECTION LLC
r235.0 N. Sam Houston Parkway E., Suite 500, Houston,Texas .77032 Tel: 281-886-2350 . Fax: 281-886-2351 www.brederoshaw.com
:HAVVGOR.;PIPE PRQTECTION
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 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 allrequired 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 Fox: 281-886-2351 www.brederoshaw.com
L� Bit
cc Method Statement
1!:-_-.., -..' Et?ERQ .?HAW G sPU Insulation L'inepipe Coating
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Z. FBE Coating Inspection ., Holida Detection
After satisfactorily checking for contamination, each pipe will be subjected::to 100%holiday •
'detection and all`holidays:will be-marked andirecorded F Anyanecessary•repairs will be carried
out in accordance with the specified FBE repairtprocedure and re detected once cured.
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DBREDERO 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.
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6. Preheating
The pipe is then loaded onto a.aransport-buggy and preheated, using induction coils to the
required temperature. The pipe is then transferred to the polyurethane application station.
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12. Holding Area
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• 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.B: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 secs. . 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. 35 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 ea;.. ` East a distance of 124.;39..-feet;
North 84 'deg. 35 min:; 46 ;sea. ; 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 -se-6: 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 iron pipe at 2*,'418-:98 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.
_ ��rr
`107 8 564
-< THENCE South 8:9 .deg:,-,59rinin 19 .sec:.: West a total distance of
1, 07.8.23 feet to a point for th.eSouthwest 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 3.06; .deg,-- 58 min. 07 sec. West 0.36 feet
from,,an.exist:ing iron rod;<:c : !,
THENCE along,;East• right-ofrway of:.the railroad and the West
• ;boundary of_Tract ,Eighty-Six (8i6).s,. ;North:" 13 deg. 51 min. 40 sec.
.West- :passing a.i 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
F PLACE 012--BEGIN2II:NG,..: and-;containing::64.6397 acres of land.
A tract oif,:rland containing ,1:0�170;acres of land out of Lot 83,
HT&B Railroad ;Company Survey, ;.S;ection :3:,., A-232, Brazoria County,
-Texas and being a part .of..a 2:6.:.162 acre tract described in Volume
; 258Page 402 .of the."DeediRecords ofLL13razoria County, Texas; being
C _ _ - more particularly described by :metes and bounds as follows:
BEGINNING ha+t an ironr;rod,_in,the west line of State Highway 35
4100..00' .right of, way;) for:;•the southeast corner,- said point being
the .:southeast,4,corner-of. said ;2,6.162 :acre tract.
THENCE:-.South.°80°..1.4' "35:" ,':West-along the south line of said
2.6.162 .acre; tract:end a fence=sl.i,ne 1646,513 feet to an iron rod at
. the :southwest,corner o;f ,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;C:
2
0 8 8 5 6 5 • •
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, .2. - - •-• - 2 '
TRACT IM
• An 11.8854 acretract of lancUCUt of a 32.2427 acre tract of
:tl.and recorded: in Volume -12,43 -1,446 692, of the Deed Records of
Brazaria-'County, Texas -oUt ofLthe-HT&B Railroad Company Survey,
Saction , A-232-0- andthe Lyle -.Survey, A-542, Pearland,
1•_.-BratoriZCoUnty,' TekaS:'being more particularly described by metes
_ and bounds aa, folloWs:-
• A3EGINNING at -aj 5/ inch iron rod found for the southwest
corner •of this tract and marking.the southeast corner of the Ray
• Bellow 3.0171 acre tract locited7iiithe south line of said 38.2427
a•.cre. tratt andtherNorth rightdf=WaY line of Knapp Road (50.0 feet
wide)., from which-a 5A8-4inchirdn-rOd'marking the southeast corner
• • . of. a 15.1656 acre .tract recorded in Volume 509 at Page 796,
Brazoria ,CountyDeed:Redorde,-beart -wetz distance of 130.0 feet;
THEN0a.Northalong theleaZt'line eif'said 3..0171 acre tract and
•
• along a tence-aine/ a diStanCeAbf '101.1.42 feet to a 5/8-inch iron
- ro.dtound. for-the: northwestcOrner of this tract and marking the
-northeast cornerrof,:said -3.0ITI4cre- tract;
• THENCE NOrth'89° 36' '30u.lastg:ZIong the northerly line of said
• . -18,2427. acre tractandalong a -fence line, a distance of 511.02
•
-feet to a 5/8-inch i-ron rod fOtincr'fbr 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 markingthe- 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
•
•
y
n0788 56
Knapp Road which, the southeast corner of said 38.2427 acre tract
• . I
located 1.7 feet south and 0.5 feet west of fence corner, bears
• east a 'd.istance 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 tb the PLACE OF BEGINNING,_„and containing 11.8854 acres of
• land.
.. n E STATE OFTEXA4 - • •
, . ., .. . 91
,``CfU' OFBPAZORA ( .,
I n LLY PAl OFrt of the Cwm noun Wandler Omer,.C rnry• FILED FOR RECORD
T oaI c I ly il�.eI!rlM s Inrrnum�1.rn w..FILERFOviE FIOI
; „v i i•b -InoV ai eanCbWl .OFFICI4,LRECORD !in.! •. . MAY IS 22 ! �90
. Burro Clrrk d.limori,Co.TX
On A.;:'::__..•r.y.TEXAS
•
.C
'c
•
i .
•
•
•
020590SLB
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 P. 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.
• •
•
•
•
•
•
. .
•
•
•
•
.27
. -
•
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C ' a --
International Steel Group Inc.
One-Martin Tower ., .. „,
Bethlehem, PA 18018-2217 ROGER G.OCHSE
Consultant
.::,'-m,, Direct Dial: 610-694-5478
Facsimile: 610-694-2905
E-Mail: rochse@intlsteel.com
December 1, 2003
. .Via Fax 281 886-2355
Susan Moss,Paralegal
ShawCor Pipe Protection.LLC _
2350 N. Sam Houston Pkwy. E.
Suite 500
Houston, Texas 77032-3130
Dear Ms.Moss:
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.
C. On May 8, 2003 International Steel Group acquired substantially.all the assets of
Bethlehem Steel Corporation through the'bankruptcy process. At closingISG:conveyed the
Pearland, Texas property, along with:all related.real estate documents:to Tecumseh
_ P
Redevelopment Inc., an<ISG subsidiary. As.a result, all rental p a Yments 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
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 -Kbith Nagel 330 659-7434
: • - :
- •
Method Statement
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EXHIBIT"D"
MANPOWER REPORT
I, of ShawCor Pipe Protection,LLC.,do
certify that on ,20 there were individuals employed full time at
ShawCor Pipe Protection, LLC..
Printed Name:
Title:
Date:
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned Notary Public, on this day personally appeared
of ShawCor Pipe Protection,LLC.,being by
me duly sworn on his/her oath deposed and said that he/she is duly qualified and authorized in all
respects to make this affidavit;and that every statement contained in the Manpower Report is within
his/her knowledge and true and correct.
SUBSCRIBED AND SWORN TO BEFORE ME on the day of
,to certify which witness my hand and official seal.
NOTARY PUBLIC, STATE OF TEXAS
Printed Name:
My Commission Expires: