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Ord. 1312 2006-10-23ORDINANCE NO. 1312 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AMENDING THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (SECOND AMENDMENT); AUTHORIZING THE CITY SECRETARY TO DISTRIBUTE SUCH PLANS; RESCINDING CITY ORDINANCE NO. 1275; CONTAINING FINDINGS AND PROVISIONS RELATED TO THE FOREGOING SUBJECTS; AND PROVIDING FOR SEVERABILITY. WHEREAS, the City of Pearland, Texas (the "City"), pursuant to the provisions of Chapter 311, Texas Tax Code, created Reinvestment Zone Number Two, City of Pearland, Texas (the "Zone"), for the purposes of redevelopment of the area of the City within the Zone; and WHEREAS, the City approved and adopted the Project Plan and Reinvestment Zone Financing Plan (the "Plans") for the Zone on August 23, 1999, by Ordinance No. 918; and WHEREAS, the City approved and adopted a First Amendment to the Plans on July 10, 2006, by Ordinance No. 1276; and WHEREAS, the City approved a Second Amendment to the Plans to include participation in the Zone by Alvin Community College District (the "College") on July 10, 2006, by Ordinance No. 1275; and WHEREAS, the College has since determined not to participate in the Zone; and WHEREAS, the City therefore now desires to repeal Ordinance No. 1275; and WHEREAS, the Plans should be amended to include additional public improvements needed to serve the land in the Zone, and the Board of Directors of the Zone has prepared, approved and recommended adoption of a Second Amendment to the Plans; and WHEREAS, a public hearing on the Second Amendment to the Plans was held on October 23, 2006, and the required notice of such public hearing was published, all in conformance with the provisions of Sections 311.011(e) and 311.003(c) and (d), Texas Tax Code; WHEREAS, the proposed improvements in the Zone will significantly enhance the value of all taxable real property in the Zone and will be of general benefit to the City; ORDINANCE NO. 1312 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS THAT: Section 1. The findings and recitals contained in the preamble of this Ordinance are hereby found and declared to be true and correct and are adopted as part of this Ordinance for all purposes. Section 2. The Second Amendment to the Plans, a copy of which is attached hereto as Exhibit A, is hereby approved and adopted. The Plans as amended by the Second Amendment are hereby determined to be feasible and are approved. The appropriate officials of the City are authorized to take all steps necessary to implement the Second Amendment to the Plans. Section 3. The City Secretary is directed to provide copies of the Second Amendment to the Plans to each taxing unit currently participating in the Zone. Section 4. Ordinance No. 1275 is hereby repealed. Section 5. If any provision, section, subsection, sentence, clause or phrase of this Ordinance, or the application of same to any person or set of circumstances is for any reason be held to be unconstitutional, void or invalid, the validity of the remaining provisions of this Ordinance shall not be affected thereby, it being the intent of the City Council in adopting this Ordinance that no portion hereof or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionally, voidness or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. Section 6. The City Council officially finds, determines, recites and declares that a sufficient written notice of the date, hour, place and subject of this meeting of the City Council was posted at a place convenient to the public at the City Hall for the time required by law preceding this meeting, as required by the Open Meetings Law, TEx. Gov'T CODE ANN., Ch. 551; and that this meeting was open to the public as required by law at all times during which this Ordinance and the subject matter thereof was discussed, considered and acted upon. The City Council further ratifies, approves and confirms such written notice and the contents and posting thereof. 2 ORDINANCE NO. 1312 PASSED and APPROVED on First Reading this 23rd day of October, A.D. 2006. CITY OF PEARLANLQ; TE S Tom Reid Mayor PASSED and APPROVED on Second and Final Reading this 13th day of November, A.D. 2006. ATTEST: APPROVED AS TO FORM: Darrin M. Coker City Attorney CITY OF PEARLS TEXAS Tom Reid Mayor 3 DRAFT FOR DISCUSSION ONLY REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2nd AMENDMENT TO PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN SHADOW CREEK RANCH HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY CITY COUNCIL 2005-2006 Council Members Mayor Hon. Tom Reid Mayor Pro-Tem Hon. Kevin Cole, Position 5 Council Member Hon. Richard Tetens, Position 1 Hon. Helen Beckman, Position 2 Hon. Steve Saboe, Position 3 Hon. Felicia Kyle, Position 4 City Manager William Eisen 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 2 DRAFT FOR DISCUSSION ONLY BOARD OF DIRECTORS 2005-2006 Board Members Position 1 Position 2 Position 3 Position 4 Position 5 Position 6 Position 7 Position 8 Position 9 Donna Coleman State Senator Designee Gary Davis State Representative Designee Nigel Harrison, Chair City of Pearland Designee Gary Cook, Vice Chair City of Pearland Designee Ken Phillips City of Pearland Designee Jo Knight City of Pearland / Alvin Independent School District Designee Mike Pyburn Alvin Independent School District Designee Ron Castillo Fort Bend County Designee Larry Loessin Brazoria County Designee 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 3 DRAFT FOR DISCUSSION ONLY 2nd AMENDMENT TOTHE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND I. OVERVIEW The City of Pearland (the "City") created Tax Increment Reinvestment Zone Number Two (the "Zone") by City Ordinance No. 891, dated December 21, 1998. The Project Plan and Reinvestment Zone Financing Plan (the "Plan") was approved by the Board of Directors of the Zone and adopted by Council on August 23, 1999. The Zone as originally designated contained 3,467 acres of vacant, undeveloped land generally bounded by Clear Creek on the north, State Highway 288 on the east, County Road 92 (the extension of Broadway west of S.H. 288) on the south, and FM 521 on the west. The Zone was subsequently expanded with the approval of the annexation of an additional 457+ acres and the 1st Amendment to the Project Plan and Reinvestment Zone Financing Plan. The portion of the Zone depicted below (the "Sub -Developer's Site") has been acquired by Pearland Retail Development Partners (the "Sub -Developer") for the proposed development of a retail center to be known as the Shadow Creek Ranch Town Center. The Shadow Creek Ranch Town Center is planned to consist of a grocery anchored retail center consisting of approximately 600,000 square feet of retail space housing approximately 60 tenants. The Sub -Developer or its assignee proposes to enter into a reimbursement agreement with the Zone to facilitate the development of public improvements necessary to make the development: 1.) economically viable; 2.) of high aesthetic quality; 3.) consistent with development standards established within Shadow Creek Ranch; and 4) consisting of retail tenants that add to the quality of life in the City of Pearland. Without the reimbursements contemplated in this amendment to the Plan, the Sub -Developer will not be able to move forward with development of the Shadow Creek Ranch Town Center, as the development will not be economically viable. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 4 DRAFT FOR DISCUSSION ONLY PEARLAND RETAIL DEVELOPMENT PARTNERS SITE The Plan describes the purpose of the Zone as financing public infrastructure improvements necessary to develop the Zone as a quality mixed -use development creating a self-sustaining tax base. The chart below summarizes the total estimated Project Costs for the Zone as approved in the Plan and the 1st Plan Amendment. Eligible Project Description Total Estimated Project Costs Infrastructure & Administration/Creation Zone $144,358,141 City Facilities $5,000,000 Educational Facilities $134,100,000 Grand Total $283,358,141 Presently, there is little retail development in the Zone. In order for Shadow Creek Ranch to mature into a true mixed -use development, a significant retail component is needed. The Sub -Developer proposes to provide that element. However, an amendment to the Project Plan is necessary to make reimbursement of essential, costly public improvements possible. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 5 DRAFT FOR DISCUSSION ONLY The Sub -Developer has performed independent market analysis and determined that the proposed development is viable and probable to succeed if the reimbursements contemplated by this amendment are adopted. II. PRELIMINARY PROJECT PLAN AMENDMENT This 2nd Plan Amendment supersedes and replaces the previously adopted 2nd Amended Project Plan prepared in anticipation of Alvin Community College participation. A. Existing Uses and Conditions (311.011(b)(1)) The photographs and illustrations below reflect the existing uses of the Sub -Developer's Site and the proposed uses of the site upon development of the retail center. The sub - Developer' s site is currently undeveloped raw land. The boundaries of the Zone will not need to be enlarged to facilitate this amendment as the area within which reimbursement for public improvements will be made is wholly within the existing boundaries of the Zone. Existing uses: 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 6 DRAFT FOR DISCUSSION ONLY 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393 v 5 7 DRAFT FOR DISCUSSION ONLY Proposed uses: B. Proposed Improvements and Proposed Uses (311.011(b)(1)) The Plan Amendment is intended to facilitate a program of public infrastructure including: (1) Significant street development and improvements to include the following: a. major widening and other improvements to Broadway Street (also known as FM 518) (depicted below in Section III B); b. development of Business Center Drive, a new segment of the City's major thoroughfare plan which will serve to extend and complete a previous Zone development project (depicted below in Section III B); c. development of Memorial Hermann Drive, a new connector road which is part of the City's major thoroughfare plan (depicted below in Section III B); d. the addition of signalization at the intersections of: 1.) Business Center Drive and Broadway; and 2.) Kirby Road and Broadway; (2) Additional public infrastructure development shall include: a. water improvements (depicted below in Section III B); b. wastewater improvements (depicted below in Section III B); 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 8 DRAFT FOR DISCUSSION ONLY c. detention, storm sewer and drainage improvements including an aesthetically pleasing detention pond with fountain (depicted below in Section III B); d. landscape improvements (depicted below in Section III B); (3) Site remediation and improvements shall include: a. relocation of overhead utilities underground to improve aesthetics and maintain development standards of Shadow Creek Ranch (depicted below in Section III B). b. relocation of pipeline impeding efficient development of the site (depicted below in Section III B). These public improvements will allow the Sub -Developer to move forward with the development of Shadow Creek Ranch Town Center in a manner that is at once economically viable and consistent with the high quality development currently being constructed in the balance of the Zone. C. Proposed Changes of Municipal Ordinances, Master Plan, or Codes (311.011(b)(2)) Other than the ordinance required to approve this amendment to the Plan, this Plan amendment will not require any change to other ordinances, plans or codes of the City of Pearland. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 9 DRAFT FOR DISCUSSION ONLY D. Non -Project Costs (311.011(b)(3)) The Sub -Developer will contribute numerous significant public improvements to the Zone for which no reimbursement from the Zone will be sought. Accordingly, this Plan Amendment will add the following Non -Project Costs to the Plan: PROJECTS FOR WHICH NO REIMBURSEMENT IS SOUGHT ESTIMATE OF COST Infrastructure Major Road Utilities (including water and sewer) Business Center Drive Utilities Memorial Hermann Drive Utilities Clearing and Grubbing Non-public Roads and Utilities (including water and sewer) Town Center Drive Loop Road Pipeline Relocation Other Utilities (including water and sewer) Internal Storm Sewers/Utilities Off Site Trunks Sewers Detention Detention Basin Allocated Engineering $700,000 $300,000 $372,000 $180,000 $375,000 $700,000 $200,000 $301,000 $361,000 $523,350 TOTAL $4,012,350 E. Method of Relocating Persons (311.011(b)(4)) This Plan Amendment does not require any change to the relocation provisions of the Plan. 2nd Amendment to TIRZ 2 Project and Financing Plan HOU S TON: 018492.00013: 1101393 v5 10 DRAFT FOR DISCUSSION ONLY 1 i III. PRELIMINARY REINVESTMENT ZONE FINANCING PLAN AMENDMENT A. Estimated Project Costs (311.011(c)(1)) With the adoption of the Plan Amendment the estimated costs of eligible improvements in the Plan will be amended to include the following additional costs in 2006 dollars: ELIGIBLE PROJECTS ESTIMATE OF COST Infrastructure Major Road Infrastructure Broadway Widening and Signalization $2,831,789 Business Center Drive paving $852,722 Memorial Hermann Drive paving $383,107 Landscaping Business Center Drive $157,500 Memorial Hermann Drive $67,500 Detention/Drainage Land (500,000 sf @ $5.70 per sf) $2,850,000 Beautification/Deepening/Pond creation $200,000 Site drainage facilities $1,842,000 Overhead Utilities Placed Underground $1,200,000 Pipeline Relocation $700,000 Engineering $490,000 Engineering (15%) Subtotal $11,547,618 Plan Amendment Costs (statutorily permissible professional fees such as legal, engineering, architectural etc.) $175,000 Subtotal $175,000 TOTAL $11,749,618 Notwithstanding anything to the contrary in the Plan, the actual costs upon which developer reimbursements are based may be less than or exceed the amount of each estimate of project cost line item above so long as the total of such reimbursed costs 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 11 DRAFT FOR DISCUSSION ONLY (excluding financing costs) does not exceed the amount of $11,749,618 in the aggregate. Additionally, Exhibit G to the Plan will be amended to increase the Annual TIRZ Administration expenses by $25,000 per year. B. Kind, Number and Location of Proposed Public Improvements (311.011(c)(2)) This amendment to the Plan will enable the Zone, via Sub -Developer funding and Zone reimbursement, to facilitate a program of roadway improvements, public infrastructure and site improvements necessary to develop the vacant and undeveloped land that is within the Sub -Developer's Site. It is anticipated that the proposed improvements may include the following: • Streets FM 5 BUSINESS CENTER DRIVE MEMORIAL HERMANN DRIVE -PROPOSED TRAFFIC SIGNAL Shadow Creek Town Center ExHierr Business Center Orkin, Memorial Herman Drive & FM 518 R E, I Lam` FOX Properties 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 12 DRAFT FOR DISCUSSION ONLY • Water and wastewater improvements —SEWER LINE WATER LINE —SEWER LINE SEWER LINE SEWER LINE u. 17 WATERLINE SEWER LINE Shadow Creek Town Center EXHIBIT WATER & SEWER LINE RAIL FOX Properties 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 13 DRAFT FOR DISCUSSION ONLY • Storm sewer inlets and box culverts X 6 BOX CULVERT STORM SEWER INLET CONCRETE MULTIPLE BOXED CULVERT 6 X 5' BOXED CULVERT STORM SEWER INLET • STORM SEWER INLET CONCRETE MULTIPLE BOXED CULVERT Shadow Creek Town Center EXHIBIT BOX CULVERTS & STORM SEWER INLETS RE1AI L FOX Properties 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 14 DRAFT FOR DISCUSSION ONLY • Landscaping, Detention & Overhead Utilities (to be placed underground) 0 LANDSCAPE AREA P DETENTION POND (, ., I LAND OVERHEAD UTILITIES Shadow Creek Town Center EXHIBIT LANDSCAPE & DETENTION POND LAND RETAIL FOX Properties 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 15 DRAFT FOR DISCUSSION ONLY • Pipeline relocation -RELOCATION OF PIPELINE-,, EASEMENT _ .. _....... Shadow Creek Town Center EXHIBIT PIPEUNE RELOCATION RE CAI Lp�9 FOX Properties C. Economic Feasibility Study (311.011(c)(3)) Shadow Creek Ranch has sold over 2,000 homes since opening in 2002. The current sales rate averages between 20 and 25 homes per week through the efforts of 20 merchant homebuilders. Homes prices range from $150,000 to $1 million. Even factoring in a 15- month delay in the start of construction for the development, Shadow Creek Ranch has produced sales volumes and assessed valuations at or above the original financial projections for the Zone. Shadow Creek has been recognized as the fastest selling planned community in the Houston / Pearland market area and is in fact second in the entire region behind only the Woodlands. The dramatic growth of the market has created a demand for additional retail development. The Sub -Developer has verified significant interest from numerous potential retail tenants and is pursuing agreements with them. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 16 DRAFT FOR DISCUSSION ONLY D. Estimate of Bonded Indebtedness to be Incurred (311.011(c)(4)) This Plan Amendment will increase the estimate of bonded indebtedness in the Plan from the amount described in the 1st Amendment to the Project Plan and Reinvestment Zone Financing Plan, by the amount necessary to yield additional net proceeds of $11,749,618. Both amounts may be adjusted according to the Engineering News Record Index over the life of the Zone. E. Time When Related Costs or Monetary Obligations Are To Be Incurred (311.011(c)(5)) The improvements contemplated in this Plan Amendment will be funded by the Sub - Developer, shall be considered Sub -Developer Improvements as defined in the Plan and shall be reimbursed according to the provisions of the amended Plan. F. Methods of Financing And Sources of Revenue (311.011(c)(6)) The Methods of Financing described in the Plan under F.1 Funding Project Costs remains unchanged by this Plan Amendment. Taxing Entity Zone Years Percent Participation City of Pearland 8 9-30 100% (a) 100% (b) Brazoria County 8-30 38% Alvin I.S.D. 8-30 100%(c) (a) 36% to be repaid as an Administrative Cost, provided never more than $0.255 (b) 64% to be repaid as an Administrative Cost, provided never more than $0.44 (c) 25% for non -educational facilities and 75% for educational facilities. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 17 DRAFT FOR DISCUSSION ONLY G. Total Current Appraised Value (311.011(c)(7)) This amendment has no impact on the current captured appraised value within the Zone which is $643,473,510 based on certified 2006 values provided by the Brazoria Central Appraisal District. H. Estimated Captured Appraised Value (311.011(c)(8)) The estimated captured appraised value within the Sub -Developer's Site (beginning with 2007) is provided in the chart below. These projections are based solely upon anticipated development to be generated on the Sub -Developer's Site —they do not include any captured appraised value generated on the land within the site from the base year of the TIRZ to the present time. Appraised Value Year Captured Appraised Value 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 9,930,000 89,809,441 92, 503, 724 95,278,836 98,137,201 101,081,317 104,113, 757 107,237,170 110,454,285 113,767,913 117,180, 951 120,696,379 124,317,270 128,046,789 131,888,192 135,844,838 139, 920,183 144,117,789 148,441,322 152,894,562 157,481,399 162,205,841 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 18 DRAFT FOR DISCUSSION ONLY The following chart shows the revenue projected to be generated from the captured appraised value on the sub -developer's site, for each expected participant. Property Tax Revenue (95% Collection) Appraised Value Year City of Pearland Brazoria County Alvin ISD Total 2007 22,903 12,820 40,229 75,952 2008 207,141 115,948 363,843 686,932 2009 213,355 119,427 374,758 707,540 2010 219,756 123,010 386,001 728,766 2011 226,348 126,700 397,581 750,629 2012 233,139 130,501 409,508 773,148 2013 240,133 134,416 421,793 796,342 2014 247,337 138,449 434,447 820,233 2015 254,757 142,602 447,481 844,840 2016 262,400 146,880 460,905 870,185 2017 270,272 151,286 474,732 896,290 2018 278,380 155,825 488,974 923,179 2019 286,731 160,500 503,643 950,875 2020 295,333 165,315 518,753 979,401 2021 304,193 170,274 534,315 1,008,783 2022 313,319 175,382 550,345 1,039,046 2023 322,719 180,644 566,855 1,070,218 2024 332,400 186,063 583,861 1,102,324 2025 342,372 191,645 601,377 1,135,394 2026 352,643 197,395 619,418 1,169,456 2027 363,223 203,316 638,000 1,204,539 2028 374,119 209,416 657,140 1,240,676 Total 5,962,973 3,337,815 10,473,960 19,774,749 H. Duration of Zone (311.011(c)(9)) The duration of the Zone remains unchanged. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 19 DRAFT FOR DISCUSSION ONLY REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 2nd AMENDMENT TO PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN =PPM 1 SHADOW CREEK RANCH HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY CITY COUNCIL 2005-2006 Council Members Mayor Hon. Tom Reid Mayor Pro-Tem Hon. Kevin Cole, Position 5 Council Member Hon. Richard Tetens, Position 1 Hon. Helen Beckman, Position 2 Hon. Steve Saboe, Position 3 Hon. Felicia Kyle, Position 4 City Manager William Eisen 2nd Amendment to TIRZ 2 Project and Financing Plan 2 HOUSTON: 018492.00013: 1101393v5 E MIR DRAFT FOR DISCUSSION ONLY BOARD OF DIRECTORS 2005-2006 Board Members Position 1 Position 2 Position 3 Position 4 Position 5 Position 6 Position 7 Position 8 Position 9 Donna Coleman State Senator Designee Gary Davis State Representative Designee Nigel Harrison, Chair City of Pearland Designee Gary Cook, Vice Chair City of Pearland Designee Ken Phillips City of Pearland Designee Jo Knight City of Pearland / Alvin Independent School District Designee Mike Pyburn Alvin Independent School District Designee Ron Castillo Fort Bend County Designee Larry Loessin Brazoria County Designee 2nd Amendment to TIRZ 2 Project and Financing Plan 3 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY 2"d AMENDMENT TOTHE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND I. OVERVIEW The City of Pearland (the "City") created Tax Increment Reinvestment Zone Number Two (the "Zone") by City Ordinance No. 891, dated December 21, 1998. The Project Plan and Reinvestment Zone Financing Plan (the "Plan") was approved by the Board of Directors of the Zone and adopted by Council on August 23, 1999. The Zone as originally designated contained 3,467 acres of vacant, undeveloped land generally bounded by Clear Creek on the north, State Highway 288 on the east, County Road 92 (the extension of Broadway west of S.H. 288) on the south, and FM 521 on the west. The Zone was subsequently expanded with the approval of the annexation of an additional 457± acres and the 1s` Amendment to the Project Plan and Reinvestment Zone Financing Plan. The portion of the Zone depicted below (the "Sub -Developer's Site") has been acquired by Pearland Retail Development Partners (the "Sub -Developer") for the proposed development of a retail center to be known as the Shadow Creek Ranch Town Center. The Shadow Creek Ranch Town Center is planned to consist of a grocery anchored retail center consisting of approximately 600,000 square feet of retail space housing approximately 60 tenants. The Sub -Developer or its assignee proposes to enter into a reimbursement agreement with the Zone to facilitate the development of public improvements necessary to make the development: 1.) economically viable; 2.) of high aesthetic quality; 3.) consistent with development standards established within Shadow Creek Ranch; and 4) consisting of retail tenants that add to the quality of life in the City of Pearland. Without the reimbursements contemplated in this amendment to the Plan, the Sub -Developer will not be able to move forward with development of the Shadow Creek Ranch Town Center, as the development will not be economically viable. 2nd Amendment to TIRZ 2 Project and Financing Plan 4 HOUSTON: 018492.00013: 1101393v5 E DRAFT FOR DISCUSSION ONLY 0 J j "o,IZIGINAL PEARLAND RETAIL DEVELOPMENT PARTNERS SITE The Plan describes the purpose of the Zone as financing public infrastructure improvements necessary to develop the Zone as a quality mixed -use development creating a self-sustaining tax base. The chart below summarizes the total estimated Project Costs for the Zone as approved in the Plan and the 1st Plan Amendment. Eligible Project Description Total Estimated Project Costs Infrastructure & Administration/Creation Zone $144,358,141 City Facilities $5,000,000 Educational Facilities $134,100,000 Grand Total $283,358,141 Presently, there is little retail development in the Zone. In order for Shadow Creek Ranch to mature into a true mixed -use development, a significant retail component is needed. The Sub -Developer proposes to provide that element. However, an amendment to the Project Plan is necessary to make reimbursement of essential, costly public improvements possible. 2nd Amendment to TIRZ 2 Project and Financing Plan 5 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY The Sub -Developer has performed independent market analysis and determined that the - proposed development is viable and probable to succeed if the reimbursements contemplated by this amendment are adopted. II. PRELIMINARY PROJECT PLAN AMENDMENT This 2nd Plan Amendment supersedes and replaces the previously adopted 2nd Amended Project Plan prepared in anticipation of Alvin Community College participation. A. Existing Uses and Conditions (311.011(b)(1)) The photographs and illustrations below reflect the existing uses of the Sub -Developer's Site and the proposed uses of the site upon development of the retail center. The sub - Developer's site is currently undeveloped raw land. The boundaries of the Zone will not need to be enlarged to facilitate this amendment as the area within which reimbursement for public improvements will be made is wholly within the existing boundaries of the Zone. Existing uses: 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY l -, C C 1 2nd Amendment to TIRZ 2 Project and Financing Plan 7 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY i 1 Proposed uses: • .I. J /tees. •� 4 B. Proposed Improvements and Proposed Uses (311.011(b)(1)) The Plan Amendment is intended to facilitate a program of public infrastructure including: (1) Significant street development and improvements to include the following: a. major widening and other improvements to Broadway Street (also known as FM 518) (depicted below in Section III B); b. development of Business Center Drive, a new segment of the City's major thoroughfare plan which will serve to extend and complete a previous Zone development project (depicted below in Section III B); c. development of Memorial Hermann Drive, a new connector road which is part of the City's major thoroughfare plan (depicted below in Section III B); d. the addition of signalization at the intersections of: 1.) Business Center Drive and Broadway; and 2.) Kirby Road and Broadway; (2) Additional public infrastructure development shall include: a. water improvements (depicted below in Section III B); b. wastewater improvements (depicted below in Section III B); 2nd Amendment to TIRZ 2 Project and Financing Plan 8 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY L.11 1.11 r c. detention, storm sewer and drainage improvements including an aesthetically pleasing detention pond with fountain (depicted below in Section III B); d. landscape improvements (depicted below in Section III B); (3) Site remediation and improvements shall include: a. relocation of overhead utilities underground to improve aesthetics and maintain development standards of Shadow Creek Ranch (depicted below in Section III B). b. relocation of pipeline impeding efficient development of the site (depicted below in Section III B). These public improvements will allow the Sub -Developer to move forward with the development of Shadow Creek Ranch Town Center in a manner that is at once economically viable and consistent with the high quality development currently being constructed in the balance of the Zone. C. Proposed Changes of Municipal Ordinances, Master Plan, or Codes (311.011(b)(2)) Other than the ordinance required to approve this amendment to the Plan, this Plan amendment will not require any change to other ordinances, plans or codes of the City of Pearland. 2nd Amendment to TIRZ 2 Project and Financing Plan 9 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY 111 D. Non -Project Costs (311.011(b)(3)) The Sub -Developer will contribute numerous significant public improvements to the Zone for which no reimbursement from the Zone will be sought. Accordingly, this Plan Amendment will add the following Non -Project Costs to the Plan: PROJECTS FOR WHICH NO REIMBURSEMENT IS SOUGHT ESTIMATE OF COST Infrastructure Major Road Utilities (including water and sewer) Business Center Drive Utilities Memorial Hermann Drive Utilities Clearing and Grubbing Non-public Roads and Utilities (including water and sewer) Town Center Drive Loop Road Pipeline Relocation Other Utilities (including water and sewer) Internal Storm Sewers/Utilities Off Site Trunks Sewers Detention Detention Basin Allocated Engineering $700,000 $300,000 $372,000 $180,000 $375,000 $700,000 $200,000 $301,000 $361,000 $523,350 TOTAL $4,012,350 E. Method of Relocating Persons (311.011(b)(4)) This Plan Amendment does not require any change to the relocation provisions of the Plan. 2nd Amendment to TIRZ 2 Project and Financing Plan 10 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY L 71 E L 1 1.9 L I"I L C III. PRELIMINARY REINVESTMENT ZONE FINANCING PLAN AMENDMENT A. Estimated Project Costs (311.011(c)(1)) With the adoption of the Plan Amendment the estimated costs of eligible improvements in the Plan will be amended to include the following additional costs in 2006 dollars: ELIGIBLE PROJECTS ESTIMATE OF COST Infrastructure Major Road Infrastructure Broadway Widening and Signalization $2,831,789 Business Center Drive paving $852,722 Memorial Hermann Drive paving $383,107 Landscaping Business Center Drive $157,500 Memorial Hermann Drive $67,500 Detention/Drainage Land (500,000 sf @ $5.70 per sf) $2,850,000 Beautification/Deepening/Pond creation $200,000 Site drainage facilities $1,842,000 Overhead Utilities Placed Underground $1,200,000 Pipeline Relocation $700,000 Engineering $490,000 Engineering (15%) Subtotal $11,547,618 Plan Amendment Costs (statutorily permissible professional fees such as legal, engineering, architectural etc.) $175,000 Subtotal $175,000 TOTAL $11,749,618 Notwithstanding anything to the contrary in the Plan, the actual costs upon which developer reimbursements are based may be less than or exceed the amount of each estimate of project cost line item above so long as the total of such reimbursed costs 2nd Amendment to TIRZ 2 Project and Financing Plan 11 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY (excluding financing costs) does not exceed the amount of $11,749,618 in the aggregate. Additionally, Exhibit G to the Plan will be amended to increase the Annual TIRZ Administration expenses by $25,000 per year. B. Kind, Number and Location of Proposed Public Improvements (311.011(c)(2)) This amendment to the Plan will enable the Zone, via Sub -Developer funding and Zone reimbursement, to facilitate a program of roadway improvements,, public infrastructure and site improvements necessary to develop the vacant and undeveloped land that is within the Sub -Developer's Site. It is anticipated that the proposed improvements may include the following: • Streets D 1 r i I r FM 518(BROADWAY)WIDENING ROPOSEDTRAFFIC SIGNAL 1 1\ Shadow Creek Town Center oo ierr Business Center Drive Memorial Herman Drive & F�1516 RE■AIL FOXPropertiees 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 12 DRAFT FOR DISCUSSION ONLY A r a r t r� r r • Water and wastewater improvements SEWER LINE_ '!"'r',., - 2nd Amendment to TIRZ 2 Project and Financing Plan 13 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY • Storm sewer inlets and box culverts Celthrol �I r.w X 6 BOX CULVERT DIORM SEWER INLET MULTIPLE =1II tf CULVERT X S BO D BOXED CULVERT ORM SEWER INLET STORM SEWER INLET - Shadow Creek Town Center EXHIBIT BOX CULVERTS of STORM SEWER INLETS R EINA I L FOX Properties 2nd Amendment to TIRZ 2 Project and Financing Plan 14 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY • Landscaping, Detention & Overhead Utilities (to be placed underground) ® LANDSCAPE AREA nDETEDNTION POND LAN OVERHEAD UTILmES Shadow Creek Town Center EXHIBIT LANDSCAPE & DETENTION POND LAND REINAI L FOX Properties Nosey 2nd Amendment to TIRZ 2 Project and Financing Plan 15 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY • Pipeline relocation ELOCATION OF PIPELINE -EASEMFNL r I I.I. II Shadow Creek Town Center EXHIBIT PIPELINE RELOCATION RE I: FOX Properties C. Economic Feasibility Study (311.011(c)(3)) Shadow Creek Ranch has sold over 2,000 homes since opening in 2002. The current sales rate averages between 20 and 25 homes per week through the efforts of 20 merchant homebuilders. Homes prices range from $150,000 to $1 million. Even factoring in a 15- month delay in the start of construction for the development, Shadow Creek Ranch has produced sales volumes and assessed valuations at or above the original financial projections for the Zone. Shadow Creek has been recognized as the fastest selling planned community in the Houston / Pearland market area and is in fact second in the entire region behind only the Woodlands. The dramatic growth of the market has created a demand for additional retail development. The Sub -Developer has verified significant interest from numerous potential retail tenants and is pursuing agreements with them. 2nd Amendment to TIRZ 2 Project and Financing Plan HOUSTON: 018492.00013: 1101393v5 16 DRAFT FOR DISCUSSION ONLY D. Estimate of Bonded Indebtedness to be Incurred (311.011(c)(4)) This Plan Amendment will increase the estimate of bonded indebtedness in the Plan from the amount described in the 1st Amendment to the Project Plan and Reinvestment Zone Financing Plan, by the amount necessary to yield additional net proceeds of $11,749,618. Both amounts may be adjusted according to the Engineering News Record Index over the life of the Zone. E. Time When Related Costs or Monetary Obligations Are To Be Incurred (311.011(c)(5)) The improvements contemplated in this Plan Amendment will be funded by the Sub - Developer, shall be considered Sub -Developer Improvements as defined in the Plan and shall be reimbursed according to the provisions of the amended Plan. F. Methods of Financing And Sources of Revenue (311.011(c)(6)) The Methods of Financing described in the Plan under F.1 Funding Project Costs remains unchanged by this Plan Amendment. Taxing Entity Zone Years Percent Participation City of Pearland 8 100% (a) 9-30 100% (b) Brazoria County 8-30 38% Alvin I.S.D. 8-30 100%(c) (a) 36% to be repaid as an Administrative Cost, provided never more than $0.255 (b) 64% to be repaid as an Administrative Cost, provided never more than $0.44 (c) 25% for non -educational facilities and 75% for educational facilities. 2nd Amendment to TIRZ 2 Project and Financing Plan 17 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY G. Total Current Appraised Value (311.011(c)(7)) This amendment has no impact on the current captured appraised value within the Zone which is $643,473,510 based on certified 2006 values provided by the Brazoria Central Appraisal District. H. Estimated Captured Appraised Value (311.011(c)(8)) The estimated captured appraised value within the Sub -Developer's Site (beginning with 2007) is provided in the chart below. These projections are based solely upon anticipated development to be generated on the Sub -Developer's Site —they do not include any captured appraised value generated on the land within the site from the base year of the TIRZ to the present time. Appraised Value Year Captured Appraised Value 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 9,930,000 89,809,441 92,503,724 95,278, 836 98,137,201 101,081,317 104,113,757 107,237,170 110,454,285 113,767,913 117,180, 951 120,696,379 124,317,270 128,046,789 131,888,192 135,844,838 139,920,183 144,117,789 148,441,322 152,894,562 157,481,399 162,205,841 2nd Amendment to TIRZ 2 Project and Financing Plan 18 HOUSTON: 018492.00013: 1101393v5 DRAFT FOR DISCUSSION ONLY The following chart shows the revenue projected to be generated from the captured appraised value on the sub -developer's site, for each expected participant. Property Tax Revenue (95% Collection) Appraised Value Year City of Pearland Brazoria County Alvin ISD Total 2007 22,903 12,820 40,229 75,952 2008 207,141 115,948 363,843 686,932 2009 213,355 119,427 374,758 707,540 2010 219,756 123,010 386,001 728,766 2011 226,348 126,700 397,581 750,629 2012 233,139 130,501 409,508 773,148 2013 240,133 134,416 421,793 796,342 2014 247,337 138,449 434,447 820,233 2015 254,757 142,602 447;481 844,840 2016 262,400 146,880 460,905 870,185 2017 270,272 151,286 474,732 896,290 2018 278,380 155,825 488,974 923,179 2019 286,731 160,500 503,643 950,875 2020 295,333 165,315 518,753 979,401 2021 304,193 170,274 534,315 1,008,783 2022 313,319 175,382 550,345 1,039,046 2023 322,719 180,644 566,855 1,070,218 2024 332,400 186,063 583,861 1,102,324 2025 342,372 191,645 601,377 1,135, 394 2026 352,643 197,395 619,418 1,169, 456 2027 363,223 203,316 638,000 1,204,539 2028 374,119 209,416 657,140 1,240,676 Total 5,962,973 3,337,815 10,473,960 19,774,749 H. Duration of Zone (311.011(c)(9)) The duration of the Zone remains unchanged. 2nd Amendment to TIRZ 2 Project and Financing Plan 19 HOUSTON: 018492.00013: 1101393v5 Darrin Coker/COP To Young Lorfing/COP@ci.pearland.tx.us 12/11/2006 10:22 AM cc bcc Subject Fw: TIRZ 2 Plan amendments nos.2 & 3 see below Darrin M. Coker City Attorney - City of Pearland 3519 Liberty Drive Pearland, TX 77581 Telephone: 281-652-1664 Fax: 281-652-1679 CONFIDENTIALITY STATEMENT This message and all attachments are confidential and may be protected by the attorney -client and other privileges. Any review, use, dissemination, forwarding, printing, copying, disclosure or distribution by persons other than the intended recipients is prohibited and may be unlawful. If you believe this message .:,. has been sent to you in error, please notify the sender by replying to this transmission, or by calling the City of Pearland at (281) 652-1664. Unless expressly stated in this e-mail, nothing in this message should be construed as a digital or electronic signature. Thank you for you cooperation. ----- Forwarded by Darrin Coker/COP on 12/11/2006 10:22 AM "Susan Hostetler" <shostetler@abhr.com> To <DCoker@ci.pearland.tx.us> 12/11/2006 10:07 AM cc Subject FW: TIRZ 2 Plan amendments nos.2 & 3 Mr. Coker: I have attached the final Project and Financing Plan amendments for the Pearland TIRZ No. 2. I am not sure who all at the City should get these: presumably they will should be attached to the Ordinances approving then s„aa.—mol :1PM,f0 hird amendment). Will you please let me know who, if anyone, these amendments should be ciruclated to, or forward this email as appropriate? Thank you and please call or email with any questions. Susan Hostetler Legal Assistant Allen Boone Humphries Robinson LLP 3200 Southwest Freeway, Suite 2600 Houston, Texas 77027 General Notice This e-mail may contain information and documents being sent to the Board of Directors for review. If so, this matter will be discussed at the next Board meeting. Please remember that Board members may not engage in deliberations on any District matter by email correspondence. If you have comments or questions, please only reply to the attorney, legal assistant, or administrative assistant for the District. CONFIDENTIALITY NOTICE The information in this email may be confidential and/or privileged. This email is intended to be reviewed by only the individual or organization named above. If you are not the intended recipient or an authorized representative of the intended recipient, you are hereby notified that any review, dissemination or copying of this email and its attachment, if any, or the information contained herein is prohibited. If you received this email in error please immediately notify the sender by return email and delete this email from your system. CIRCULAR 230 NOTICE The rules imposed by IRS Circular 230 require Allen Boone Humphries Robinson LLP to inform you that, unless expressly stated above or in an attachment hereto, this communication including any attachments, is not intended or written to be used, and it cannot be used, by you or any person or entity for the purpose of avoiding any penalties that may or, could be imposed under the United States Internal Revenue Code, nor for the promoting, marketing or recommending to another party any transaction or tax -related matter(s). Board -adopted 2ndAmendment to Project Plan.doc Board -Adopted 3rd Amendment to Project Plan.doc shostetler@abhr.com (713) 860-6432 phone (713) 860-6632 fax Original Message From: Charles Knight[mailto:cknight@knudsonservices.com] Sent: Tuesday, December 05, 2006 9:20 AM To: Susan Hostetler Subject: RE: TIRZ 2 Plan amendments nos.2 & 3 Here you go. Charles A. Knight, Jr. KNUDSON & ASSOCIATES LP "BUILDING BETTER CITIES BY DESIGN" 8588 Katy Freeway Suite 441 Houston Texas 77024 Phone (713) 463-8200 ext 20 Fax (713) 463-8011 Email: cknight@aknudsonservices.com For more information: www.knudsonservices.com From: Susan Hostetler [mailto:shostetler@abhr.com] Sent: Monday, December 04, 2006 7:47 PM To: Charles Knight Subject: TIRZ 2 Plan amendments nos.2 & 3 Do you have final plan amendments nos. 2 and 3 yet? The ones I have say draft for discussion. These are the final drafts, I am positive, but if you re -run the plans once finally adopted, will you please email me a copy so that I can have the final ones for our files. Thank you, Susan Hostetler Allen Boone Humphries Robinson LLP (713) 860-6432 phone (713) 860-6632 fax Please note my email address has changed. Although the abhllp.com is still valid, we prefer our new one, abhr.com. Also please visit our new website abhr.com. DRAFT FOR DISCUSSION ONLY `I L L f L REINVESTMENT ZONE NUMBER TWO CITY OF PEARLAND, TEXAS 3rd AMENDMENT TO PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN 1111rmidis SHADOW CREEK RANCH DRAFT FOR DISCUSSION ONLY CITY COUNCIL 2006-2007 Council Members Mayor Hon. Tom Reid Mayor Pro-Tem Hon. Kevin Cole Council Member Hon. Richard Tetens Hon. Helen Beckman Hon. Steve Saboe Hon. Felicia Kyle City Manager William Eisen 3rd Amendment to TIRZ 2 Project and Financing Plan DRAFT FOR DISCUSSION ONLY BOARD OF DIRECTORS 2005-2006 Board Members Position 1 Position 2 Position 3 Position 4 Position 5 Position 6 Position 7 Position 8 Position 9 Donna Coleman State Senator Designee Gary Davis State Representative Designee Nigel Harrison, Chair City of Pearland Designee Gary Cook, Vice Chair City of Pearland Designee Ken Phillips City of Pearland Designee Jo Knight City of Pearland / Alvin Independent School District Designee Mike Pyburn Alvin Independent School District Designee Ron Castillo Fort Bend County Designee Larry Loessin Brazoria County Designee 31d Amendment to TIRZ 2 Project and Financing Plan 3 DRAFT FOR DISCUSSION ONLY 3rd AMENDMENT TO THE PROJECT PLAN AND REINVESTMENT ZONE FINANCING PLAN FOR REINVESTMENT ZONE NUMBER TWO, CITY OF PEARLAND, TEXAS (SHADOW CREEK RANCH) I. OVERVIEW This 3rd Amendment" to Tax Increment Reinvestment Zone Number Two, City of Pearland, Texas (the "Zone" or "Shadow Creek Ranch TIRZ") Project Plan and Reinvestment Zone Financing Plan (the "Plan") is necessary to facilitate the improvement and widening of Broadway/FM 518. II. 3rd Plan Amendment Pursuant to inquiries and requests from Brazoria and Fort Bend Counties regarding assurances that Broadway/FM 518 be completed from S.H. 288 to F.M. 521 the Zone boundaries must be amended to include approximately 7 acres of right-of-way, currently outside the Zone, on which two lanes of Broadway/FM 518 will be constructed. This right-of-way is situated between Kirby Drive and Kingsley as shown on the map below: eats Rd acres T. " 11,4 arras 41 auto - rims maul am.. imli IIMala MI 00 �Qilrp{III11111/1t _-A., - singswig"i 1111 ' 4IHiIlq rum 7YY.EEu1 Broadway Extension Southem R.O.W. When adopted, this 3rd Plan Amendment will not amend any portion of the Project Plan and Reinvestment Zone Financing Plan except as described below. With the adoption of this 3rd Plan Amendment, by the Board of Directors of the Zone and City Council of Pearland, the following sections of the Reinvestment Zone Project Plan and Reinvestment Zone Financing Plan shall be amended as follows: Proiect Plan A. Existing Uses and Condition/Boundaries (311.011(b)(1) 3`d Amendment to TIRZ 2 Project and Financing Plan 4 DRAFT.FOR DISCUSSION ONLY The boundary of the Zone will be amended to include the area described on Exhibit "A" to this Plan Amendment. Once amended, the boundary of the Zone will be as described on Exhibit "B." Reinvestment Zone Financing Plan A. Estimated Project Cost Description (311.011(c)(1) Section 1. Infrastructure Improvements. The estimated costs for Infrastructure Improvements, as described on Exhibit E in the Financing Plan, are amended to include $8million for construction of Broadway/FM 518, consisting of $900,000 in engineering and $7.1 million for construction and contingencies. B. Kind, Number and Location of TIRZ Improvements (311.011(c)(2) ,,,. The location of the improvements proposed in this amendment is shown on Page 4 of this amendment. C. Estimate of Bonded Indebtedness 311.011(c)(4) The estimated amount of bonded indebtedness will be increased by an amount sufficient to fund and/or reimburse the estimated $8 million cost of construction of Broadway/FM 518 contemplated herein. 3rd Amendment to TIRZ 2 Project and Financing Plan 5 DRAFT FOR DISCUSSION ONLY EXHIBIT "A" October 23, 2006 Job No. 1546-2006-101 DESCRIPTION OF 7 ACRES, MORE OR LESS SHADOW CREEK RANCH CITY OF PEARLAND, TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 2 ANNEXATION TRACT Being 7 acres of land, more or less, located in the H.T. &"B.R.R. Co. Survey, Section 81, Abstract 300, Brazoria County, Texas, and the H.T. & B.R.R. Co. Survey, Section 80, Abstract 564, Brazoria County, Texas, said 7 acres, more or less, being moreparticularly described as follows; COMMENCING at the common comer of the H.T. & B.R.R. Co. Survey, Section 80, Abstract 564, Section 84, Abstract 538, Section 83, Abstract 305 and Section 82, Abstract 565, Brazoria County, Texas, same being on the centerline of County Road 92 (40-feet wide); THENCE, SOUTHERLY, 20 feet, more or less, with the common line of said Section 84 and Section 80, to the POINT OF BEGINNING, being on the south right-of-way line of said County Road 92; THENCE, EASTERLY, 6253 feet, more or less, leaving said common line, with said south right-of-way line, to a point for comer, THENCE, SOUTHERLY, 50 feet, more or less, leaving said south right-of-way line, to a point for comer on the proposed south right-of-way line of County Road 92; THENCE, WESTERLY, 6168 feet, more or less, along said proposed south right-of-way line, to a point for comer, the beginning of a curve; THENCE, SOUTHWESTERLY, continuing with said proposed southerly right-of-way line, 55 feet, more or less, along the arc of a curve to the left having a radius of 35 feet, to a point for comer, Page 1 of 2 I:1Proldsk1ISURVEY11545120061M&BITIRZ_October 2006 new areadoc 3rd Amendment to TIRZ 2 Project and Financing Plan 6 DRAFT FOR DISCUSSION ONLY 0 7 Acres October 23, 2006 Job No. 1545-2006-101 THENCE, WESTERLY, leaving said proposed southerly right-of-way line, 50 feet more or Tess, to a point for corner on aforementioned common line of Section 84 and Section 80, same being the centerline of County Road 48; THENCE. NORTHERLY, with said common line and centerline, 85 feet, more or less, to the point of beginning and containing 7 acres of land, more or less. "This document was prepared under 22 TAC § 663.21, does not reflect the results of an on the ground survey, and Is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared" LJA Engineering & Surveying, Inc. Page 2 of.2 1:1ProjdskllSURVEY11545120061M&BITIRZ_October 2006_new area.doc 3rd Amendment to TIRZ 2 Project and Financing Plan 7 DRAFT FOR DISCUSSION ONLY EXHIBIT "B" October 23, 2006 Job No. 1546-2006-101 DESCRIPTION OF 3,931 ACRES, MORE OR LESS SHADOW CREEK RANCH CITY OF PEARLAND, TEXAS TAX INCREMENT REINVESTMENT ZONE NO. 2 REVISED BOUNDARY Being 3,931 acres of land, more or less, located in the Dupuy and Roberts Survey, Abstract 726, Brazoria County, William Morris Survey, Abstract 344, Brazoria County, T.C.R.R. Co. Survey, Section 3, Abstract 678, Brazoria County, T.C.R.R. Co. Survey, Section 4 (John W. Maxey), Abstract 675, Brazoria County, Obediah Pitts Survey, Abstract 717, Brazoria County, H.T. & B.R.R. Co. Survey, Section 80 (J.S. Talmage), Abstract 564, Brazoria County, H.T. & B.R.R. Co. Survey, Section 81, Abstract 300, Brazoria County, H.T. & B.R.R. Co. Survey, Section 82 (J.S. Talmage), Abstract 565, Brazoria County, H.T. & B.R.R. Co. Survey, Section 83, Abstract 305 in Brazoria County and Abstract 761 in Fort Bend County, the H.T. & B.R.R. Co. Survey, Section 84, Abstract 538 in Brazoria County and Abstract 767 in Fort Bend County, S.G. Haynie Survey, Abstract 212 in Brazoria County and Abstract 620 in Fort Bend County, Franklin Hooper Survey, Abstract 198, Fort Bend County, George W. McDonald Survey, Abstract 557, Fort Bend County, I.C. Stafford Survey, Abstract 668, Fort Bend County, the H. Levering Survey, Abstract 279, Fort Bend County, and the A.B. Langermann Survey, Abstract 555, Fort Bend County, said 3,931 acres, more or Tess, being more particularly described as. follows; BEGINNING at the common north corner of Lots 3 and 4, Block 10 of the ALLISON- RICHEY GULF COAST HOME CO'S PART OF SUBURBAN GARDENS, SEC.'S 3 & 4, T.C.R.R. SURVEY AND SEC. 82, H.T. & B.R.R. CO. SURVEY & OBEDIAH PITTS SURVEY, a subdivision or record in Volume 2, Page 99 of the Plat Records of Brazoria County, Texas (B.C.P.R.) also being on the common line of the aforementioned T.C.R.R. Co. Survey, Section 4 and the Dupuy and Roberts Survey; THENCE, SOUTHERLY, 782 feet, more or less, along the common line of said Lots 3 and 4, to a point for comer on the southerly right-of-way line of Farm to Market Road 2234, 160 feet wide; Page 1: of 5 eV'roJdsk1ISURVem54512OO5M&BSnRZ_oaober 2O06.doe 3rd Amendment to TIRZ 2 Project and Financing Plan 8 DRAFT FOR DISCUSSION ONLY L E I ' E F E 3931 Acres October 23, 2006 Job No. 1545-2006-101 THENCE, EASTERLY, 998 feet, more or Tess, along said southerly right-of-way line and its easterly extension, to a point for comer on the west line of the J. Crawley Survey, Abstract 174, Brazoria County, Texas; THENCE, SOUTHERLY, 3,482 feet, more or Tess, along the west line of said J. Crawley Survey to a point for comer on the centerline of Hughes Ranch Road, also being the southwest comer of said J. Crawley Survey; THENCE, EASTERLY, 421 feet, more or less, along the southerly line of said J. Crawley Survey and along said centerline of Hughes Ranch Road, to a point for comer on the centerline of State Highway 288; THENCE, SOUTHELRY, 5,326 feet, more or less, along said centerline of State Highway 288 to a point for comer on the southerly line of County Road 92, 40 foot wide, a dedicated road as shown on aforementioned ALLISON-RICHEY GULF COAST HOME CO.'S PART OF SUBURBAN GARDENS; THENCE, WESTERLY, 3,195 feet, more or Tess, along the southerly line of said County Road 92, to a point for comer, THENCE, SOUTHERLY, 50 feet, more or less, to a point for comer on the proposed southerly right-of-way line of County Road 92; THENCE, WESTERLY, with said proposed southerly right-of-way line, 6,168 feet, more or Tess, to a point for comer, the beginning of a curve; THENCE, SOUTHWESTERLY, continuing with said proposed southerly right-of-way line, 55 feet, more or less, along the arc of a curve to the left having a radius of 35 feet, to a point for comer, THENCE, WESTERLY, leaving said proposed southerly right-of-way line, 50 feet more or less, to a point for comer on the centerline of County Road 48 (Old Airline Highway); Page 2 of 5 I:{ProJdskl4SURVEY11545120061RA6a1TIRZ_October 2006.doc 3rd Amendment to TIRZ 2 Project and Financing Plan DRAFT FOR DISCUSSION ONLY I L: E E L 3931 Acres October 23, 2006 Job No. 1545-2006-101 THENCE, NORTHERLY, with said centerline, 35 feet, more or Tess, to a point for comer on the aforementioned proposed southerly right-of-way line of County Road 92; THENCE, WESTERLY, with said proposed southerly right-of-way line, 2,640 feet, more or less, to a point for comer on the east line of that certain called 160.048 acre tract conveyed to Pearland Investments Limited Partnership by instruments of record under File No. 03-044886 and File No. 2004059020, both B.C.O.R., and on the westerly line of that certain called 522.62 acre tract conveyed to Ashton Southem Trails Joint Venture by instrument of record under Fife No. 2004002615, B.C.O.R.; THENCE, SOUTHERLY, along the westerly line of said 522.62 acre tract and the easterly line of said 160.048 acre tract, passing at a distance of 2,570 feet, more or Tess, the northwest comer of Lot 1 of Block 84 of Allison Richey Gulf Coast Home Company Part of Suburban Gardens as recorded in Volume 2, Page 98, Plat Records, Brazoria County, Texas (B.C.P.R.), continuing in all a distance of 5,212 feet, more or Tess, to a point for comer in the southerly line of said H.T. & B.R.R. Co. Survey, Section 84, the northerly line of Section 2 of the H.T.& B.R.R. Co. Survey, Abstract No. 566, Brazoria County, Texas and at the southwest comer of Lot 4 of said Block 84; THENCE, WESTERLY, along the common lines of said H.T. & B.R.R. Co. Survey,. Section 84 and said H.T. & B.R.R. Co. Survey, Section 2, a distance of 2,640 feet, more or less, to a point for comer, same being the southwest of said Section 84 and in the easterly line of the Manuel Escalera Survey, Abstract No. 654, Brazoria County. Texas and Abstract No. 169, Fort Bend County, Texas; THENCE, NORTHERLY, along the common lines of said H.T.& B.R.R. Co. Survey, Section 84 and said Manuel Escalera Survey, a distance of 3,194 feet,more or Tess, to a point for comer, same being the southeast comer of the aforesaid 132.5682 acre tract and the common east corner of said Manuel Escalera Survey and the aforementioned A.B. Langermann Survey; Page 3 of 5 1:1ProJdskltSURVEY11545120061M&BITIRZ October 2006.doc E 3rd Amendment to TIRZ 2 Project and Financing Plan DRAFT FOR DISCUSSION ONLY r•+ L 1 1 E 7_ 3931 Acres October 23, 2006 Job No. 1545-2006-101 THENCE, WESTERLY, along the common lines of said Manuel Escalera Survey and said A.B. Langermann Survey and the southerly line of said 132.5682 acre tract, a distance of 3,359 feet, more or less, to a point for comer, same being the southwest comer of said 132.5682 acre tract and in the easterly right-of-way line of F.M. 521; THENCE, NORTHEASTERLY, along the easterly of said F.M. 521, 11,715 feet, more or less, to a point for comer on the centerline of Clear Creek; THENCE, NORTHEASTERLY, 1327 feet, more or less, along the centerline of Clear Creek to a point for comer on the aforementioned southerly right-of-way line of Farm to Market Road 2234; THENCE, SOUTHEASTERLY, 1519 feet, more or Tess, along said southerly right-of-way line to a point for comer on the Fort Bend and Brazoria County line; THENCE, NORTHEASTERLY, 577 feet, more or less, along said county line, to a point for corner at the common comer of Brazoria, Fort Bend and Harris Counties; THENCE, NORTHEASTERLY, 2426 feet, more or Tess, along. the Brazoria and Hams County line, to a point for comer in the aforementioned centerline of Clear Creek; THENCE, EASTERLY, 8250 feet, more or less, along the centerline meanders of Clear Creek to a point for comer on the northerly line of aforementioned Lot 3, Block 10 of said ALLISON-RICHEY GULF COAST HOME CO.'S PART OF SUBURBAN GARDENS, same being on the aforementioned common survey line of the T.C.R.R. Co. Survey, Section 4 and the Dupuy and Roberts Survey; THENCE, EASTERLY, 453 feet, more or less, along said north line of Lot 3, Block 10 and said common survey line to the POINT OF BEGINNING and containing 3,931 acres of land, more or less. Page 4 of 5 1:1Proldskl6SURVEY11545120061M&B\TIRZ October 2006.doc 3rd Amendment to TIRZ 2 Project and Financing Plan 11 DRAFT FOR DISCUSSION ONLY 714 3931 Acres October 23, 2006 Job No. 1545-2006-101 "This document was prepared under 22 TAC § 663.21, does not reflect the results of an on the ground survey, and is not to be used to convey or establish interests in real property except those rights and interests implied or established by the creation or reconfiguration of the boundary of the political subdivision for which it was prepared" 10-23-2"(o Page 5 of 5 1:1ProJdsk1ISURVEYN545120061AA&BITIRZ October 2006.doc LJA Engineering & Surveying, Inc. 114 3rd Amendment to TIRZ 2 Project and Financing Plan 12