R97-42 07-28-97RESOLUTION NO. R97-42
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 THIRD COAST
PACKAGING, INC. ("THIRD COAST") FOR PURPOSES OF ABATING THE
INCREASED VALUE OF THE PROPERTY OWNED BY THIRD COAST
NEAR MYKAWA ROAD WITHIN THE CITY LIMITS OF PEARLAND AT A
RATE OF SEVENTY-FIVE PERCENT (75%) FOR A PERIOD OF THREE (3)
YEARS BEGINNING JANUARY 1, 1998, AND ENDING DECEMBER 31,
2000, AND AT A RATE OF FIFTY PERCENT (50%) ANNUALLY FOR A
PERIOD OF TWO (2) YEARS BEGINNING JANUARY 1, 2001, AND
ENDING DECEMBER 31, 2002; FINDING AND DETERMINING THAT
TERMS OF SAID AGREEMENT AND PROPERTY SUBJECT TO THE
AGREEMENT MEET THE REQUIREMENTS OF CHAPTER 312 OF THE
TAX CODE, V.A.T.S. AS AMENDED, ORDINANCE NO. 805, WHICH
ESTABLISHED REINVESTMENT ZONE #3, AND THE GUIDELINES AND
CRITERIA FOR GOVERNING REINVESTMENT ZONES AND TAX
ABATEMENT AGREEMENTS SET FORTH IN RESOLUTION NO. R96-12.
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 Third Coast, 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. 805, which
established Reinvestment Zone #3, and the Guidelines and Criteria for Governing
Reinvestment Zones and Tax Abatement Agreements set forth in
Resolution No. R96-12.
RESOLUTION NO. R97-42
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
X .~ , A.D., 1997.
ADOPTED this the C~ ~%/4~ day of
TOM REID
MAYOR
ATTEST:
APPROVED AS TO FORM:
2
THE STATE OF TEXAS
COUNTIES OF BRAZORIA
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 and Harris
Counties, Texas, duly acting by and through its City Manager ("City"), and Third Coast
Packaging, Inc., duly acting by and through Partner, Larry Rysavy ("Third Coast").
WITNESSETH:
WHEREAS, on the 281h day of July, 1997, the City Council of the City of Pearland,
Texas, passed Ordinance No. 805 establishing Reinvestment Zone #3 in the City of Pearland,
Texas, for commercial/industrial tax abatement, as authorized by Chapter 312, Tax Code,
V.A.T.S. as amended ("Code"); and
WHEREAS, the City has adopted Resolution No. R96-12, 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 commercial/industrial
economic and employment base of the Pearland area for the long term interest and benefit of the
City, in accordance with Resolution No. R96-12 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 Reinvestmenf Zone in
accordance with the purposes for its creation and are in compliance with Resolution No. R96-12
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,
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, Third Coast 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 Third Coast's facility on the Premises, described in Exhibit "B"
("Improvements") will cost approximately Six Hundred Fifty Thousand Dollars ($650,009.00)
and is to be substantially complete on or about August 1, 1997; provided, that Third Coast shall
have such additional time to complete the Improvements as may be required in the event of
"force majeure" if Third Coast 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 Third Coast 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 Third Coast), 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. Third Coast 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
consideration of this Agreement. Third Coast 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, Third Coast shall thereafter, from
the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously
operate and maintain the Premises as Third Coast, 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. Third Coast agrees and covenants that the Improvements shall provide
approximately 38-43 jobs during the period of the abatement, beginning with 30 employees in
1998. Accordingly, Third Coast shall provide to the City annual manpower reports
(Exhibit "E") 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 valorera 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 seventy-five
percent (75 %) of the taxes assessed upon the increased value of the Property and Improvements,
annually for a period of three (3) years beginning January 1, 1998, and ending December 31,
2000, and at a rate of fifty percent (50%) annually for a period of two (2) years beginning
2
January 1, 2001, and ending December 31, 2002, in accordance with the terms of this
Agreement and all applicable state and local regulations. The taxable value shall be determined
on a 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 Third Coast
to the chief appraiser of said district. Estimated values, estimated abated values, and estimated
base year values for the Improvements are listed in Exhibit "C" ("Estimated Values").
6. Third Coast 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. R96-12, 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
Third Coast written notice of such violation. For the purposes of this Agreement, Third Coast
shall have ten (10) days from the date of the notice to cure or remedy such violation. If
Third Coast fails or refuses to cure or remedy the violation within the ten (10) day period, Third
Coast 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. Third Coast agrees and covenants that the information provided in the attached
Application for Tax Abatement (Exhibit "D") 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) Third Coast allows its ad valorera
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 valorera taxes; or
(3) Third Coast breaches any of the terms or conditions of this Agreement, then this Agreement
shall be in default. In the event that Third Coast defaults in its performance of (1), (2), 'or (3)
above, then the City shall give Third Coast written notice of such default, which notice shall be
delivered by personal delivery or certified mail to: Larry Rysavy, Partner, Third Coast
Packaging, Inc., P. O. Box 367, Friendswood, Texas 77549-0367. If Third Coast 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.
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 3 12.205, 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. R96-12.
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 Third Coast
only upon written permission by the City in accordance with Resolution R96-12, 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 Third Coast, in performing
its obligations hereunder, is acting independently, and the City assumes no responsibilities or
liabilities in connection therewith to third parties.
14. THIRD COAST 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 WHAT-
SOEVER 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 THIRD COAST AND THE CITY AND
SHALL SURVIVE THE TERMINATION, EXPIRATION, OR CANCELLATION OF THIS
AGREEMENT.
15. It is understood and agreed by the City and Third Coast 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 Third Coast
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.
16. This Agreement was authorized by Resolution of the City Council at its council
meeting on the 281h day of July, 1997, authorizing the City Manager to execute the Agreement
on behalf of the City.
17. This Agreement is entered into by Third Coast pursuant to authority granted by
its on the __day of ,19 , whereby Partner,
Larry Rysavy, was authorized to execute this Agreement on behalf of Third Coast.
18. This shall constitute a valid and binding Agreement between the City and Third
Coast when executed in accordance herewith.
19. This Agreement is performable in Brazoria County, Texas.
20. Third Coast agrees and covenants to certify annually to the City, while this
Agreement is in effect, that Third Coast is in compliance with each applicable term of this
Agreement.
Witness our hands this r~ D da of
,1997.
CITY OF PEARLAND
By:
City Manager
ATTEST:
City Attorney
5
THIRD COAST PACKAGING, INC.
By:Larry l~ysav'~'y~'
Partner
ATTEST:
THE STATE OF TEXAS §
COUNTY OF ~.tel~.7..olet ~ §
This instrument was acknowledged before me on ',-/"~t--,t Hr- , 19__~_, by
Larry Rysavy, Partner of Third Coast Packaging, Inc., a Texas corporation, on behalf of said
corporation.
THE STATE OF TEXAS §
COUNTIES OF HARRIS AND BRAZORIA §
This instrument was acknowledged before me on D'Ll, iat~i' 30 , 19 q7 , by
exas ome
Paul Grohman, City Manager of the City of Pearland, Texas, h rule municipal
corporation, on behalf of said corporation.
PrintedName: L
My Commission Expires:
7 97\3C.AGR
P.,rce. l ]
EXItlBIT "A"
BEING 522,719.99 SQUARIS. FEET OR 12.0000 ACRES OF LAND
OUT OF AND PART OF CALLF]) LOT ]4 OF TIrl~ W.
ZYCFILINSKI SUBDrVISION OF THE H,T, & B. R/R CO. SURVEY
NO..~, A-~2, BRAZORLA COUNTY, TEXAS, ACCORDING TO
THt MAP OR HAT THEREOF RECORDED IN VOLUME
PAGE 4.3 OF TIlE DEED RECORDS OF BRAZORIA COUNTY,
TEXAS; SAID 12.0000 ACRES BEING MORE PARTICUIARI.Y
DESCRIBED BY METES AND BOUNDS AS FOLLOW:
COMMENCING, at a (1) inch pinched top pipe found on the east
right-of-way line of Mykawa Road (60 feet wide) a~ the ~outhwest
corner of aforesaid Lot 34, of the W. Zychllnski Subdivision;
THENCE, S 89° 58' 22" E, along the south fine of said Lot 34, a distance
of 40¢~.64 fret to a $/8 inch iron rod set for the POINT OF BEGINNING
of the herein described tract;
· TI-IENCE, continuing, S 89n 58' 22" E, .It~ng the ~outh line of said Lot
24, a distance of 903.10 feet to a point 'for comer on the westerly
right-of-way line of the G.C.E.S.F. Rail Road right-of~wa3r (called 100
feet wide);
TH2ENCE, N 13° 52' 24" W, along the wes'tcrly fight-of-way line of said
G-C.E.S.F. Rail Road right-of-wsy, a distance of 653.01 feet to s 1/2 inch
iron rod found for a point for corner on the northeast comer of said Lot
34;
TI'IENCE, N 89° 58' 35" W, along the north line of said Lot 34,
distance of 746.20 feet to a 5/8 inch iron rod set for a point for comer;
TI-IENCE, S 04)° 01 41, W, across said Lot ~4, a distance of 633.34 f~et
to the POINT OF BEGINNING of the herein described tract and
containing as aforesaid 522,719.99 square feet or 12.0000 acres ofjland.
EXHIBIT "B"
IMPROVEMENTS
The project will be the construction of a new manufacturing facility that will also include
our sales staff. We expect to have approximately 30 employees on site. We expect the project
will require the construction of a building of approximately 50,000 square feet at a cost of
approximately $650,000.00. It is anticipated that fixed manufacturing equipment of approxi-
mately $128,000.00 will be included in the project. The rail spur will cost $110,000.00. Tax
abatement will be sought on all items allowed by law.
97\3C.AGn
EXHIBIT "C"
ESTIMATED VALUES
Estimated value of site as of January 1
immediately preceding abatement
agreement
Current estimated value
Estimated value of ineligible property
Estimated value of eligible improvements
Estimated value of abated properties after
abatement expires
Value upon completion of project
personal property and project improve-
merits not subject to abatement
PERSONAL
PROPERTY
$0.00
$0.00
N/A
$128,000
(Fixed Equipment)
$128,000
$0.00
IMPROVEMENTS
$0.00
$0.00
N/A
$760,000
$760,000
$0.00
$42,952
$42,952
$42,952
N/A
N/A
$42,952
97\3C.AGR
APPLICATIOI' 3R TAX ABATEMENT IN THE C , ¥ OF PEARLAND
This application should be filed at least 90 days prior to the beginning of construction
of the installation of equipment. The filing of this document acknowledges familiarity and
conformance with Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone
Created in the City of Pearland (attached). Please review lmtructions attached before
executing this application. This application will become part of the agreement and any
knowingly false representations will be grounds for the City to void the agreement. Original
copy of this request should be submitted to the City Manager, City of Pearland, 3519 Liberty
Drive, Pearland, Texas 77581. Please attach exhibi~ if additional space is needed.
APPLICANT ~FORMATION
Date May 1, 1997
Company Name Third Coast Packaging
Number of Employees 30 est.
Address PO Box 367 Annual Sales $3,000,000
Friendswood, TX 77549-0367
Corporation (X) Partnership ( ) Proprietorship ( )
PROJECT INFORMATION
Type of facility: Manufacturing (X) Reg. Distribution Center ( )
(See Instructions) Regional Service ( ) Reg. Entertainment Center ( )
Other Basic Industry ( )
Location address and description of area to be
designated as reinvestment zone SEE ATTACItED LEGAL
(attach map showing site and legal description): DESCRIPTION
Description of eligible improvements (real property)
to be constructed: Manufacturing facility with manufacturing equipment.
Description of ineligible (taxable) property to be included in project: Inventory, Land
The proposed reinvestment zone is located in:
City
County
School District
Other Taxing Jurisdictions
Pearland
Brazoria
Pearland I.S. D.
__Brazoria Co. Drainage District #4
Description of product or service to be provided (proposed use):
Blending and packaging of specialty chemicals for major companies
Project Description:
Attach 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.
NEW PLANT (X) EXPANSION ( ) MODERNIZATION ( )
Attach a proposed time schedule for undertaking and completing the planned improvements.
ECONOMIC INFORMATION
A. Construction Estimates
Commencement Date:
Construction Man Years:
Completion Date:
Peak Construction Jobs
June 1. 1997
August 1. 1997
12
IF MODERNIZATION:
Estimated 'Economic Life of
Existing Plant: __ Years
Added Economic Life from
Modernization: Years
B. Permanent Employment Estimates (FTE's)
Current Employment 30
Number of jobs retained ( ) created (0)
at start/opening 30
5 years into operation 38 to 43
in year __1998
__ in year 2000__
Local Transfer
,1997 5 '7
,1998_ 10 3
,1999 9 1
Total
12
25
35
Est. Salaries
$280.000
$713.326
$946.656
C,
Other Estimated Taxes Generated by Project
(1) Sales Taxes:
19_9__: $
1997_: $
199__8_: $
1999_: $
~9 :$
(2) Other (Identify):
D. Estimated Appra~ , Value on Site
Estimated value of site as of January 1
immediately preceding abatement
agreement
Current estimated value
Estimated'value of ineligible property
Estimated value of eligible improvements
Estimated value of abated properties after
abatement expires
Value upon completion of project
personal property and project
improvements not subject to abatement
Personal Improve- Land
Property ments
0 0 $42.952
0 0 $42.952
N/A N/A $42,952
$128.000 $760.000 N/A
(Fixed Equipment)
$128,000 $760.000
N/A
0 0 $42.952
TAX ABATEMENT REQUESTED
75 % of eligible property for year 1 through year 3.
50__ % of eligible property for year 4 through year 5.
VARIANCE
Is the applicant seeking a variance under Section 3(0
of the Guidelines?
If "YES" attach required supplementary information.
OTHER ABATEMENTS: Has company made application
for abatement of this project by another taxing
jurisdiction or nearby counties?
If "YES" provide dates of application, hearing dates,
if held or scheduled, name of jurisdictions and
contacts, and letters of intent.
YES ( ) NO (X)
YES ( ) NO (X)
COMPANY REPRESENTATIVE TO BE CONTACTED
Name:
Title:
Address:
Telephone:
Larry Rysavy
Partner
PO Box 367
Friendswood, Texas 77549-0367
281-482-92 12
PROJECT DESCRIPI ~ ~,N
The project will be the construction of a new manufacturing facility that will also include our
sales staff. We expect to have approximately 30 employees on site. We expect the project
will require the construction of a building of approximately 50,000 square feet at a cost of
approximately $650,000. It is anticipated that fixed manufacturing equipment of
approximately $128,000 will be included in the project. The rail spur will cost $110,000. Tax
abatement will be sought on all items allowed by law.
TIME SCHEDULE
July 1, 1997 Construction of Rail Spur
August 15, 1997 Warehouse A Completed
August 15, 1997 Warehouse Office Completed
August 30, 1997 Equipment Installation
July 30, 1998 Office Building
August 1, 1999 Warehouse B
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
DO NOT WRITE IN THIS AREA -- FOR PROCESSING PURPOSES ONLY
EDC contact
Precinct
Jurisdictions notified / /
Initial review completed __/__/__
Review circulated / /
ISD concurrence`?.
College concurrence'?.
City concurrence'?.
Letter of Intent / /
Hearing noticed on agenda __/__/__
Public hearing / /
ISD action / /
College action __/__/__
City action / /
Agreement signed / /
BRAZORIA COUNTY APPRAISAL DISTRICT
CERTIFICATION OF APPRAISED VALUE OF PROPERTIES
AS OF JANUARY 1, 1996
TO: City of Pearland
FROM: BRAZORIA COUNTy APPRAISAL DISTRICT
DATE: May 1, 1997
The Brazoria County Appraisal District hereby certifies that the following appraised
values as of January 1, 1996, for property of Churchill Land Corp described in
Exhibit "A" attached hereto are listed in the records of the Brazoria County Appraisal
District and indicated by the following account numbers:
PERSONAL PROPERTY ACCOUNT(SL
APPRAISED VALUE(S)
LAND ACGOUNT,(SI
7312-0045-0(X}
$9,270
IMPRQVEMF, NT ACCOUNT(S)
Certi~:l on May 1, 1997.
BRAZOR/A COUNTY APPRAISAL DISTRICT
Cheryl 2hief Appraiser
EXHIBIT "E"
MANPOWER REPORT
Packaging, Inc, ("Third Coast"), do certify that on
__ individuals employed full time at Third Coast.
of Third Coast
,19there were
Printed Name:
Title:
Date:
THE STATE OF TEXAS
COUNTY OF
BEFORE ME, the undersigned Notary Public, on this day personally appeared
, of Third Coast Packaging, Inc., 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.
19
SUBSCRIBED AND SWORN TO BEFORE ME on the
, to certify which witness my hand and official seal.
__day of
NOTARY PUBLIC, STATE OF TEXAS
Printed Name:
My Commission Expires:
97\3C.AGR
Parcel I EXHIBIT "A"
BEING 522,119.99 SQUARE. FEET OR 12.0000 ACRES OF LAND
OUT OF AND PART OF CALLED LOT 14 OF TH~ W.
ZYCHLINSKI SUBDM SION OF THE H.T. & B. R/R CO. SURVEY
NO_ 2, A-232, BRAZORIA COUNTY, TEXAS, ACCORDING TO
THE MAP OR PLAT THEREOF RECORDED IN VOLUME :19,
PAGE 43 OF TIlE DEED RECORDS OF BRAZORIA COUNTY,
TEXAS; SAID 12.0000 ACRES BEING MORE PARTICI.~.ARLY
DESCR IRED BY METES AND BOUNDS AS FOLLOW:
COMMENCING, at a (1) inch pinched top pipe found on the east
rillht-of-way Line of Mykawa Road (60 feet wide) at the southwest
corner of aforesaid Lot 34, of the W. Zychllnski Subdivision;
THENCE, S 89° 58' 22" E, along the south line of said Lot 34, a distance
of 466.64 teat to a 5/8 inch iron rod set for the POINT OF BEGINNING
of the hercin described tract;
THENCE, continuing, S 89° 58' 22" E, along the south line of said Lot
~4, a distance of 903.10 feet to a point for corner on the westerly
right-of:way line of the G.C.E.S.F. Rail Road right-of. way (called 100
feet wide);
TId[ENCE, N 13° 52° 24" W, along the wcs'tcrly right-of-way line of said
G.C.E.S.F. Rail Road right-of-way, a distance of 653.01 feet to a 1/2 inch
iron rod found for a point for corner on the northeast corner of said Lot
34:
TIfF, NCE, N 89° 58' 35" W, along the north line of said Lot 34, a
distance of 746,20 feet to a 5/8 inch iron rod set for a point for comer;
THENCE, ~ 00° 01 41, W, across said tot 34, a distance of 633.34 Feet
to the POINT OF BEGINNING of the herein described tract and
containing as aforesaid $22,719.99 square feet or 12.0000 acres ofjland.
File NO: 9737250354
Amount of Insurance: $185,952.00
Date of Policy: May LI, 1997
OWNER POLICY OF TITLE INSURANCE
SCHEDULE A
Policy No:
at 12~36 P,M.
O~ 1007889
1, Name of Insured:
Third Coast Packaging, Inc.
2. The estate or interest in the land that is.covered by this Policy
3. Title to the estate or interest in the land is insured as vested in;
Third Coast Packaging, Inc.
4, Thu land fefe. fred to in thi-~ Policy is described as follows:
Two paruel~ DE la~d uut o~ LOt 34 o~ ~he 8ubdlvislon ot'Oeu~ion T~ree (3),
H. T, & B. R.R. Company Survey, Abstract No. 232, Brazori6 County, Texas,
according to the recorded map or plot L|&M&UQZ' recorded in Volume 29, Pa~e
43, of the Deed Records of Brazoria County, Texas, and being more particularly
~e~cribed by metes and bounds on E~lbl~ "A" ~|~d hereto.
Alamo Title Company
Authorized Signatory
F0~H ~-I: Owner Po(icy of rit|e Insurenee - Schedu(e A
chioago Title Insurance Company
Effective January 1,199~
OWNER POLICY OF TITLE INSURANCE
SCHEDULE B
FILE NO~ 9737250354 POLICY NO: O- 1007889
EXCEPTION8 FROM COVERAGE
This Policy does not insure
fee~ or ex~n~eS) that arise by read, on of the ter~ and c~{~i~s of the leaGee
~f any, ~hown ~n Scn~u~e A, a~ ~he fot~
1. The foi~ew~ng ~es~Pic~{ve cevenants e{ record ~tffiiz~ ~toff ((~c C~ ~s~ ~ithe~ insert
· ~cific r~cordin8 d~ or dcL~tf ~hi~
This exception is hereby deleted in its entlre~y,
2. Any ~sc~e~ancies, con({ ices, o~ shortages ~n a~ea oP ~y (~nes, o~ any enc~oach~n~s, oP
pm'otru~iun~, ur arty ovel't~ppin~ ~,f
]. H~stead or c~ity pro~rty or su~v{vo~eh~p Pl~hts, tf any, of any s~use of a~y
~. Any [i~es or r~gt~5 asser~ by anyone, ~nct~ing, ~t ~ ~imit~ ~o. ~rso~, cor~rari~s,
9over~rs or 0~her
a.to t~ia~s.0r [a~s c~r~s{~ the shores or ~ds o~ nsvig~Je or ~r~iel rivers aM
lakes, bays, gulfs or ~eans, or
b. to [rods ~yo~ the tins of the hater or ~[khead tines as es~a~ti$~M 0f chaMM ~ ~y
9ove~nt, or
c. to firtH-in [a~s, or artificial isles, 0r
d. s~atu~0ry ~ater righ~s~ inct~{~ ri~r~an riJhte, or
~. tn fh..r.n ~t~nH{no ~r~ th~ ~ine e~ ~an I.~ ti~ to th. I~ ~J v~g~t,f{~. ~f th~ right
against toss or dmge (and the C<xr4)any witt ~ Imly costs, attorney's
or assamants insured
5. standby fees, taxes and aSsesmntS by any taxthe authority for the year lg 97 end subsequent
(e~ usage or ~ership.
6. The fott~ng matters a~ at~ ter~ of the decors creating or offeHng evfd~e of the
mat insert mtters or delete this
a. Pipeline easemen~ as granted to the Texas Pipe Line Co~any in instrumen~
recorded in Volume 419, Page ~3, of the Deed ~ecords o~ eTazerOs County,
Texas, and as conveyed Co Houston Pipe Line Company in instrument recoMed in
volume 597~ Pa~¢ 203, of thc' D¢ud Rccord~ of Brazerid Co~ty, TCxaa. (as to
Parcel 2 )
b. A 20 foot roadway and utility easement as granted to the City of Pea=land in
instrument recorded in Volume 1213, Page 8, of the Deed RecOrdS Of Braloria
Co~ty, Texas. (as Co Parcel 2}
A 1/16tt; royalty interest in all oil, ~as and other minerals, ~ ~L rurLh by
instrument(s) recorded in Volume 606, Page 294, of the Deed Records of
Brazoria Co~ny, Texas. Tltle Eo said interest not checked s~sequenc
dane of execution.
FILE NO: 9737250354
OWNER POLICY OF TITLE INSURANCE NO; O- 10078H9
SCHEDULE B {CONTINUED)
PAGE:
d. Any and all ieaee~. LeuuLded or unr~n~ded. with rightm of
pOsSession.
e. Easement Agreement exeoute~ the 30th day of April, 1997 by and between
~earland Associates, L.P. (Seller) and Third CoaS~ Packing, Inc. (Purchaser)
filed unaer Srazor~a County Clerk's File No. 97-01~095.
f. Rights o~ Par~ ~D Possession.
Alamo Title Company
FCRM T-|~ Oiner PoLicy o~ ~{t[e [nGurance - !;chedute S
ChiCago Title Insurance C~npany
Effective January 1, 1993