Loading...
R96-60 12-17-96RESOLUTION NO. R96-60 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A TAX ABATEMENT AGREEMENT WITH TEXAS HONING, INC. ("TEXAS HONING") FOR PURPOSES OF ABATING THE INCREASED VALUE OF THE PROPERTY OWNED BY TEXAS HONING ON MYKAWA ROAD WITHIN THE CITY LIMITS OF PEARLAND AT A RATE OF FIFTY PERCENT (50%) ANNUALLY FOR A PERIOD OF SEVEN (7) YEARS BEGINNING JANUARY 1, 1997 AND ENDING DECEMBER 31, 2003; FINDING AND DETERMINING THAT TERMS OF SAID AGREE- MENT AND PROPERTY SUBJECT TO THE AGREEMIENT MEET THE REQUIREMENTS OF CHAPTER 312 OF THE TAX CODE, V.A.T.S. AS AMENDED, ORDINANCE NO. 728, WHICH ESTABLISHED A REINVEST- MENT ZONE, ORDINANCE NO. 757, WHICH AUTHORIZED TAX ABATEIVlENT, AND THE GUIDELINES AND CRITERIA FOR GOVERNING REINVESTIVlENT ZONES AND TAX ABATEMENT AGREE- MENTS 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 Texas Honing, 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. 728, whiCh established a reinvestment zone, Ordinance No. 757, which authorized tax abatement, and the Guidelines and Criteria for Governing Reinvestment Zones and Tax Abatement Agreements set forth in Resolution No. R96-12. Section 3. The City Manager is hereby authorized to execute, and the City Secretary to attest, the said Tax Abatement Agreement and any counterparts thereof. RESOLUTION NO. R96-60 PASSED, APPROVED, AND ADOPTED ~ , A.D., 1996. ATTEST: ' Y~~ ~NDA C. BENIT~ CITY SECRETARY this the //7~ day TOM REID MAYOR of APPROVED AS TO FORM: Y MOTtES McCULLOUGH CITY ATTORNEY 2 Exhibit "A" R96-60 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 Texas Honing, Inc., duly acting by and through its President, Robert Steele ("Texas Honing"). WITN ESS ETH - WI4EREAS, on the 13th day of May, 1996, the City Council of the City of Pearland, Texas, passed Ordinance No. 728 establishing a Reinvestlnent Zone 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 WIIEREAS, 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. R96-12 and the guidelines and criteria adopted by the City and all applicable law; and WHEREAS, the hnprovements 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 WItEREAS, 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 safely, health, or welfare; now, For and in consideration of the mutual agreements and obligations set forth below. ~hc sufficiency of which is hereby acknowledged by the parties hereto, Texas It(ming and City mutually agree as follows: 1. The property to be tile subject of this Agreement shall be that property described by metes and bounds and map attached hereto as Exhibit "A" ("Premises"). 2. Expansion of Texas Honing's facility on the Premises, described in Exhibit "B" ("Improvements") will cosl approximately Eight Hundred Fifty Thousand Dollars ($850,000) and is to be substantially complete on or about December 31, 1996: provided, that Texas I loning shall have such additional time to complete tile Improvements ,ts may be required in the evcnl of "force majeure" if Texas Itoning is diligently and faithfully pursuing completion of the Improvements. For this purpose, "force majeure" shall mean any contingency or cause beyond tile reasonable control of Texas Honing including, without limitation, acts of FOod or the public enemy, war, riot, civil commotion, insurrection, governlnental or de facto governmental action (unless caused by acts or omissions of Texas Honing), 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. Texas Honing agrees and covenants that it will diligent'ly and faithfully, in a good and workmanlike manner, pursue tile completion of the Improvements as a good and valuable consideration of this Agreelnent. Texas Honing 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, Texas Honing shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as Texas ttoning, limiting tile 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. Texas Honing agrees and covenants that the Improvements shall provide approximately 100 jobs by tile end of the abatement period. With 70 employees currently, Texas Honing agrees to add 10 employees during 1997, after improvements are completed, and 20 employees will be added in 1998. Accordingly, Texas Honing shall provide to the City annual manpower reports (Exhibit "E") within sixty (60) days following the end of each calendar year. 5. Subject to tile terms and conditions of this Agreement, and subject to tile rights and holders of any outstanding bonds of tile City, a portion el: ad valorem property taxes assessed to the Property and otherwise owed to the City shall be abated. City hereby acknowledges that it is uot 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 thc taxes assessed upon the increased value o1' thc [)rot)crly and Improvcmcms annually, in accordance with thc Icrms of lhis Agrccmcm and all applicable slate and local regulations for a period of seven ('7) years beginning January 1, 199'7. and ch(ling I)cccmbcr 31, 2003. The laxable value shall be determined on a uniform and equal basis of assessment by Iht methods used by tile Brazoria Courtly Tax Appraisal Districl, which inl'(trmalion necessary for abatement shall be provided by Texas Honing to the chief appraiser of said district. Estimalcd values, eslimatcd abated values, and eslimated base year values for Ibc Improvemenls are listed in Exhibit "C" ("Estimated Values"). 6. Texas Honing further agrees ~tlat the City, ils agenls and employees shall have thc right to enter upon the Premises at any reasonable time and to inspecl ~l~e Improvemems order [o determine whether the construction of the Improvements is in accordance with Agreement and all applicable federal, state, and local laws, ordinances, aud regulations or valid waiver thereof. After completion of tile Improvements, the City shall have lhe 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 accordauce with this Agreement and all applicable federal, state, and local law, ordinances, and regulations. It/accordance with Resolution No. R96-12, tile 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 Texas 14oning written notice of such violation. For the purposes of this Agreement, Texas Itching shall have ten (10) days from the date of the notice to cure or remedy such violation. If Texas Itching fails or refuses to cure or remedy the violation within the ten (10) day period, Texas Honing 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. Texas Honing 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 (I) the Improvements tbr which an abatement has been granted are not completed in accordance with this Agreement; or (2) Texas I4oning allows its ad valorem taxes owed to tile 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) Texas Iloning breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In tile event thai Texas Honing defaults in its performance of(t), (2), or (3) above, then the City shall give r['cxas 14oning written notice of such default, which nolice shall bc delivered by personal delivery or certified mail to: Robert Steele, Presidcm, 1710 Mykawa t>,oad, Pearland, Texas 77581. If Texas 14oning has nol cured such default within sixty (60) clays of said written uoticc, this Agreemem may bc modil'icd or terminated by the City. 9. In Iht cvcm lha~ thc l'acility is completed and begins producing pr(~(lucl or service. but subsequently discominucs producing product or service for any reason cxccpl fire. explosion or other casualty or accident or natural disaster Ibc a period of one year during Iht al)artroom period, then this Agrccmcm shall be in default and shall terminate. Thc abatcmcnl tile calendar year during which thc facility no longer produces shall also terminate. 10. As liquidated damages in tile event of default and in accordance with Section 312.205, Tax ('ode, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City withoul Ihe benefit of abatement (but without the addition of penalty: interest will be charged at tile statutory rate for delinquent taxes as determined by Section 33.01 o~' tile Tax Code) will become a debt to the City aud shall be due, owing and paid to tile City within sixty (60) days of Ihe expiration of the cure period stated in paragraph 8 or tile termination (late stated ill paragraph 9, whichever is applicable. The City shall have all remedies for tile recapture and collection of the lost tax revenue as provided generally in tile 'Fax Code for the collection of dclinquem property taxes and in accordance with Resolution No. R96-12. 11. 'File City represents and warrants that tile 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 tile successors and assigns of all parties hereto. This Agreement may be transferred or assigned by Texas I loning 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 il' tile assignor or assignee are indebted to the City Ibc ad valorem taxes or other obligations. 13. It is understood and agreed between the parties that Texas Itoning, in pcrt0rming its obligations hereunder, is acting independently, and the City assumes no responsibilities or liabilities in connection therewith to third parties. 14. TEXAS ttONING RELEASES, ACQUITS, INDEMNIFIES, AND IIOI~DS HARMLESS THE CITY, ITS OFFICERS, AGENTS, EMPLOYEES, SUCCESSORS, AND ASSIGNS, FROM ANY AND ALL KINDS OF CLAIMS, DEMANDS, I~OSSES, DAMAGES, INJURIES, RIGItTS, CAUSES OF ACTION, OR JUDGMENTS OF WItAT- SOEVER CItARACTER OR NATURE, INCLUDING ATTORNEYS' FEES, WItlClt MAY ARISE AS A RESULT OF TIlIS AGREEMENT. THE PROVISIONS OF Tills SECTION REFLECT TIlE EXPRESSEi) INTENTIONS OF TEXAS HONING AND 'FILE CFFY AND SHALLSURVIVE 'Fill,; TERMINATION, EXPIRATION, OR CANCELLATION OFTlilS AGREEMENT. 15. It is understood and agreed by tile City and Texas Il(ming that il-tile Premises has bee~ 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 Texas Honing has removed the agricultural use designation and all taxes duc pursuant to Section 23.55, 'Fax Code, V.A.T.S., as amended, (roll back taxes) have been paid. 16. This A,~reement was authorized by Resolution of tile City Council at its council meeting oll the /7'to/--day of~]~/~_, 1996, authorizing the City Manager to execute the Agreement on behalf of tile City. 17. This Agreement is entered into by Texas Honing pursuant to authority grante b~, x'~ its President on the ['~°"-day of ,/').g (L~.,,,,Jv_o~, 19 ¢36, whereby the President was authorized to execute this Agreement on behalf of Texas Honing. 18. This shall constitute a valid and binding Agreement between the City and Texas ttoning when executed in accordance herewith. 19. This Agreement is performable in Brazoria County, Texas. 20. Texas Itoning agrees and covenants to certify annually to tile City, while this Agreement is in effect, t!lat Texas Honing is in compliance with each applicable term of this Agreement. Witness our hands this Ir~41Xday of ..~-~_~r~b6¢,--~, 19 q/~ ATTEST: CITY OF PEARLAND Paul Grohman City Manager APPROVal[,,) AS TO FORM: ' Amy]Mot~s M~Cullough (Tity Attorney I I 0 N I N/(zJ~ IN(_: Ro'l)ert ~teele President THE STATE OF TEXAS § COUNTIES OF HARRIS AND BRAZORIA § This instrument was acknowledged before me on -T~e_ee,~koe~, \'7 , 19~(,,, by Paul Grohman, City Manager of the City of Pearland, Texas, a Texas home rule municipal corporation, on behalf of said corporation. NOTARY PUBLI~ STATE OF TEXAS TItE STATE OF TEXAS § COUNTIES OF HARRIS AND BRAZORIA § This instrument Was acknowledged before me on Robert Steele, President of Texas Honing, Inc., a I-'"~a ~ corporauon, corporation. , 19q7, by on behalf of said NOTARY PU~-LIq~ STATE OF TEXAS FIELDNOTE DESCRIPTION of e 3088 acre Iracl of land ,n lh~ R. 13. Lyle Survey, Ab6truct No S43 ~n Brazod~ County. Texas S~ld 3 088 ~cre tree'1 is ,n lbo East one- h~]l! ('~F2) of' Tract 47 of Ihe W. Z¥cl~linskl Subdivision of H. T. & B. R R Section 4 In the City of Peadand and is further d~scnbed a~ being a pen of Lot 1 of Block 1 of Mykawa Acre,: Subdivision as r~corded ~n Volume 16. P~ga 304 of the Brazens County Plat Records. Said 3088 acre trac~ I~ mor~ p~diculody desonbed by mete6 and bounds as follows; BEGINNING nt 8 5/8-inch iron rod found for the northwest comer o( Lei 2 ~o,d Mykawa Acre8 ISubdivlslon, ~ald point being an Intoner comer of sa~d Lot 1 Tt4ENCE, Soulh 00°31'00' West, along the common Ilnu between 6aid Lot 1 and Lot 2 for 8 distanoe of 191.37 feet to - 5/8-inch Iron rod found for the southeast ~omer of the herein described lract. ~ald point being tho ~outhwest c~mer of said Lot 2: THENCE, WesL ~long the south line of smd Lot 2, '~ame being ~¢ nodh line of 2-1/'2 ac~e trod de~;cdbed in a deed to W & N Enterprise., ~ recordod in Volume 1632, Page 83d of the Bra. zoria County Deed Reco(d~, for a diet, nco of 689.90 feet to a 5/8-inch Iron rod found for the ~oulhwe~t comer of tho herein de~cnbed tract, same being the ,~outhwest comer of said Lot 1; THENCE. North. along the west line of said Lot 1, same being ~he east line of a 15.3 ~cre tract described in a deed to Henry Flake, Jr. A~ recorded In Volume 806, Page 656 of the Brazens County Deed Records for a distance of 197.85 fee( to a 518-Inch iron rod sol for the northwest comer of lhe heroin de~cflbed tract, THENCE. South 89°27'45" Ea, sl, along ~ha projected nodh line of the aforementioned Lot 2 for a dislAnce ef 691.68 feat t~ th~ POINT OF BEGINNING. containing a computed area of 3.086 acres (134,431 square feel). Welsh Surveying, Inc. 200~ E. Broadway, Suite 105 Pead~nd, Texo~ 77.588 ('713) 485-3991 Job No 9~-104 The bdadngs ~hown h~reon are ba'~ed on the recorded map el M~kaw8 Acro_~ Subdivision. M~I D. ~l~on, R.P.L.S R~gi~tratlon No. 4821 EX H IBIT "B' IMPROVEMENTS The proposed facility will consist of 28,000 square feet with 25,000 square feet of manufacturing area and 3,000 square feet of office space. 'Fhe manufacturing area will tlc one story and tile off:ice space will be two story. The purpose of the facility is to manufacture precision tubular products (i.e., boring and honing steel pipes). The facility will include 90,000 square feet of concrete. EX 141B IT "C" ESTIMATED VAI.UES t'Xtimatcd value of site as of January 1 immediately preceding abatemcm rcm csmnalcd value Esmna~cd value of ineligible property Esmna~cd value of eligible in~provcmcms Eslhna{cd value of abated properties after abatcmcn~ expires Value upon completion of project pcr~o.al property and project impmvc- lllCIllS HO{ ~ubj~ct to abatelllell{ PERSONAL PROPERTY $0.00 $0.00 $10,000.00 $240,000.00 $500,000.00 $10,000.00 IMPROVEMENTS $0. ()0 $0.o0 $0.00 $850,000.00 $850,000.00 $0.00 LA ND $30,000.00 $ 30. 000. O0 $30,000.O0 $30,000.00 $30;00().00 APPLICATION FOR TAX ABATEMENT IN THE CITY OF PEARLAND '['his 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 Instructions attached before executing this application. This application will become part of the agreement and any knowingly false representations will be grounds for the City to void the agreement. Original copy of this request should be submitted to the City Manager, City of Pearland, 3519 Liberty Drive, Pearland, Texas 77581. Please attach exhibits if additional space is needed. APPLICANT INFORMATION Date October 1, 1996 Company Name Texas ltoninff~ Inc. Number of Employees 66 Address 1710 Mykawa Rd. Pearland. Texas 77581 Annual Sales $5.000.000 Corporation (X) Partnership ( ) PROJECT INFORMATION Proprietorship ( ) Type of facility: Manufacturing (X) Reg. Distribution Center ( ) (See Instructions) Regional Service ( ) Reg. Entertainment Center ( ) Other Basic Industry ( ) Location address and description of area to be designated as reinvestment zone (attach map showing site and legal description): 1710 Mykawa Rd. Description of eligible improvements (real property) to be constructed: 28,000 square foot manufacurlng and office building. 90,000 square feet of concrete. Description of ineligible (taxable) property to be included in project: N/A The proposed reinvestment zone is located in: City County School District Other 'Faxing Jurisdictions Pearland lSD Brazoria County DD__~ Description of product or service to be provided (proposed use)- Manufacturer of Precision Tubular Products 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 ( ) EXPANSION (X) MODERNIZATION ( ) Attach a proposed time schedule for undertaking and completing the planned improvements. Building: Est. December 1996; Equipment: by 1997 for full utilization. ECONOMIC INFORMATION .............................................. A. Construction Estimatcjs Commencement Date: Construction Man Years: Completion Date: Peak Construction Jobs .10/7/96 12/96 N/A IF MODERNIZATION: Estimated Economic Life of Existing Plant: Added Economic Life from Modernization: 2_0_Years 20 Years B. Permanent Employment Estimates (FTE's) Current Employment 66 Number of jobs retained (66) created (60) at start/opening ~ 5 years into operation 100 in year 1997 in year 2002 October 4 May December Local ,1996 ~ ,1~7 ~ ,1~7 ~ Transfer Total Est. Salaries $1,800,000 $3.000,O00 Co Other Estimated Taxes Generated by Project (1) Sales Taxes: 19 : $ N/A 19 :$ 19 :$ 19 :$ 19 :$ (2) Other (Identify): Estimated value of site as of January I immediately preceding abatement agreemem Current estimated value Estimated value of ineligible property Estimated value of eligible improvements Estimated value of abated properties after abatemem expires Value upon completion of project personal property and project ~rnprovements not subject to abatement Personal Improve- Property merits 0 0 ~ 0 240.0OO 850.000 30.000 5OO.0OO 850,000 10,o0o __0__ 30.0O0 TAX ABATEMENT REQUESTED 50% of eligible property for years I through year 7. VARIANCE Is the applicant seeking a variance under Section 3(0 of the Guidelines? I f ' Y ES" attach requ ired 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 tX) NO ( ) YES ( ) NO (X) COMPANY REPRESENTATIVE TO BE CONTACTED Name: Title: Address: Telephone: Robert Steel~. Presidenl IZL0~d2dia~a Road Pearlaed. Texas 7758 {713) 485-833~ Title: Er~ident INSTRUCTIONS Appl~cams and projects must meet the requirements established by tile City of Pearland Guidelines attd ()itena for Granting Tat Abatement itt a Reinvestment Zone found in Resolution No. R%-12 (attached) in order to receive positive consideration. Section 2 of tile Guidelines, for example, sets out regulations governing eligible facilities, eligible and ineligible improvements, terms and economic qualifications. Conformance with all sections, however, ts required for eligibility. APPLICANT INFORMATION Thc taxing unit may consider applicant financial capacity in determining whether to enter into all abatement agreement. Established companies for which public information is available, or the wholly owned businesses of such companies, should include with the application a copy of their latest annual report to stockholders. Other applicants and new companies should attach a statement showing when the company Was established, business references (name, contact and telephone number of principal bank, accountant and attorney) and may be required to submit an audited financial statement and business plan. PROJECT IN FORM ATION Only facilities listed in Section 2(a) of the GuMelines may receive abatement without applying for a variance. Check guideline definitions in Section I to see if project qualifies. If project is a Regional Entertainment Facility, Regional Service Facility, Regional Distribution Center Facility or Other Basic Industry, the application should include market studies, business plans, agreements or other materials demonstrating that the facility is intended to serve a market the majority of which is outside of the City of Pearland region. ECONOMIC INFORMATION Permanent Employment Estimates - In estimating the permanent employment, include the total number of jobs retained or created at this site by your firm as well as known permanent jobs of service contractors required for operation. ~F-2lJmal_(gJJ~I/praised Value on Site - The value as of January I immediately preceding abatement should be tile value established by the Brazoria County Appraisal District. if the applicant must estimate value because file taxable value is not known or is combined with other properties under a single tax account, please so state. To qualify, thc abated properties must be expected to result in an addition to the tax base of at least two million dollars after the period of abatement expires. PrOjections of value should be a "best estimate~ based on taxability in Texas. The projection of project values no~ abated should include personal property and ineligible project-related improvements such as office space in excess of that used for plant administration, housing, etc. 2. 3. 4. 5. 6. 7. 8. 9. I0. 11. 12. 13. 14. 15. DO NOT WRITE IN Tills AREA - FOR PROCESSING PURPOSES ONLY EDC contact Precinct Jurisdictions notified / / Initial review completed / / Review circulated / / lSD concurrence? College concurrence? City concurrence? Letter of Intent / / Hearing noticed on agenda / / Public hearing / / lSD action / / College action / / City action / / Agreement signed / / TEXAS HON IN(~ .51~ClAIJS"P.; IN ~;~£CISION ~Jl~UIJk~ ~ October 7.1996 John Bowman Peatrland Economic Development 3519 Libel' Drive Pearland, Tx 77581 D%r ,Mr, Bowman A proposed me schedule for the a&-tition to Texas Honing, is estimated to be compte;~-t by. December ] 996, The full utilization of ti~¢ addition, is planning to b~ runmn8 October 7,1996 TEXAS HONING INC. Paul Grolnnan City Mtmager Pe,xrland Econonu¢ Development Corp, 3519 Liberty. Drive Pearl,md, Tx 77581 Dear :Mr. Grohnmn Texas Honing, is requesting t~ vewi,'mce to begin construction on site located at 1710 Mykawa as soon as possible. Due to the problems w-ith .~euling the ownership end purchasing of the 1,~ud, it ha.~ delayed our project 3 months. At this time we ~re hopin8 to have the building completed by December 1996. We have ordered the material md is due to amve Nowmber 1 st, along with machine to put in the new e, ddition in December, upon completion, With the building completed end mackims mttdl~ w~ will be in full utilization by December 1997, If'you m.:l en.vmore im~onnation, pl~se, f~l freo to contact me at Robert Steele President ~5-$339. ~ you, cc: Jolm Bowm,-,n EXI41BIT "E" MANPOWER REPORT ("Texas Honing"), do certify that on , 19 individuals employed full time at Texas Honing. of Texas Honing, Inc. there were Printed Name: Title: Date: THE STATE OF TEXAS COUNTY OF BEFORE ME, the undersigned Notary Public, on this day personally appeared , of Texas Honing, 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: '['7.1tON [ N(; A(;R