R2008-124 2008-09-08 RESOLUTION NO. R2008-124
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 NEELA, INC.;
FINDING AND DETERMINING THAT TERMS OF SAID AGREEMENT
MEET THE REQUIREMENTS OF CHAPTER 312 OF THE TAX CODE,
V.A.T.S. AS AMENDED, ORDINANCE NO. 1353, ESTABLISHING
REINVESTMENT ZONE#20,AND THE GUIDELINES AND CRITERIA FOR
GOVERNING REINVESTMENT ZONES AND TAX ABATEMENT
AGREEMENTS SET FORTH IN RESOLUTION NO. R2006-121.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
Section 1. That certain Tax Abatement Agreement, by and between the
City of Pearland and Neela, Inc., 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. 1353, which
established Reinvestment Zone #20, and the Guidelines and Criteria for Governing
Reinvestment Zones and Tax Abatement Agreements set forth in Resolution No. R2006-
121.
Section 3. The City Manager or his designee is hereby authorized to execute, and
the City Secretary to attest, said Tax Abatement Agreement and any counterparts thereof.
PASSED, APPROVED, AND ADOPTED this the 8th day of S ptember, A.D., 2008.
TOM REID
MAYOR
RESOLUTION NO. 2008-124
ATTEST:
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APPROVED AS TO FORM:
DARRIN M. COKER
CITY ATTORNEY
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THE STATE OF TEXAS §
§
COUNTIES OF BRAZORIA, §
FORT BEND, AND HARRIS §
TAX ABATEMENT AGREEMENT
This Tax Abatement Agreement("Agreement") is entered into by and between the City of
Pearland, Texas, a home rule city and Municipal Corporation of Brazoria, Fort Bend, and
Harris Counties, Texas, duly acting by and through its City Manager ("City"), and Neela, Inc.
("Neela"), duly acting by and through , its
WIT-NESSETH :
WHEREAS,on.the 25th day of August,2008 the City Council of the City of Pearland,Texas,
passed Ordinance No. 1353 establishing Reinvestment Zone#20 in the City of Pearland,Texas,for
general business tax abatement, as authorized by Chapter 312, Tax Code, V.A.T.S. as amended
("Code");'and
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WHEREAS, the City previously adopted Resolution No. R2006-121, which established
appropriate guidelines and criteria for governing reinvestment zones and tax abatement agreements
to be entered into by the City as contemplated by the Code; and
WHEREAS,the City's objective is to maintain and/or enhance the general business economic
and employment base of the Pearland area for the long term interest and benefit of the City, in
accordance with Resolution No. R2006-121 and the Code; and
WHEREAS,the contemplated use of the Premises,as hereinafter defined,the contemplated
improvements to the Premises in the amount as set forth in this Agreement and the other terms
hereof are consistent with encouraging development of said Reinvestment Zone in accordance with
the purposes for its creation and are in compliance with Resolution No.2006-121 and the guidelines
and criteria adopted by the City and all applicable law; and
WHEREAS, the Improvements as defined below constitute a major investment within the
Reinvestment Zone that will substantially increase the appraised value of property within the zone
and will contribute to the retention or expansion of primary and secondary employment within the
City; and
WHEREAS,there will be no substantial adverse affect on the provision of city services or on
its tax base and the planned use of the Premises will not constitute a hazard to public safety,health,
or welfare; now,
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THEREFORE .
For and in consideration of the mutual agreements and obligations set forth below, the
sufficiency of which is hereby acknowledged by the parties hereto,Neela 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 Neela's improvements on the Premises, described in Exhibit"B"
("Improvements")will cost approximately ($ )and is to be
substantially complete on or about December 31, 2009; provided, that Neela shall have such
additional time to complete the Improvements as may be required in the event of"force majeure"if
Neela is diligently and faithfully pursuing completion of the Improvements. For this purpose,"force
majeure" shall mean any contingency or cause beyond the reasona.ble'control of Neela 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 Neela),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. Neela agrees and covenants that it will diligently and faithfully, in a good and
workmanlike manner,pursue the completion of the Improvements as a good and valuable considera-
tion of this Agreement. Neela 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, Neela shall thereafter, from the date a Certificate of Occupancy is issued
• until the expiration of this Agreement, continuously operate and maintain the Premises as Neela,
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. Neela agrees and covenants that the Improvements shall provide a minimum of
twenty seven(27)jobs during the period of the abatement. Accordingly,Neela shall provide to the
City annual manpower reports ( Exhibit "D") within sixty (60) days following the end of each
calendar year.
5. Subject to the terms and conditions of this Agreement, and subject to the rights and
holders of any outstanding bonds of the City, a portion of ad valorem property taxes assessed to the
Property and otherwise owed to the City shall be abated. City hereby acknowledges that it is not
aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement.
This Agreement shall be effective with the January 15t valuation date immediately following the date
of execution of this Agreement. In each year that this Agreement is in effect, the amount of
abatement shall be an amount equal to the percentage indicated below of the taxes assessed upon the
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increased value of the Improvements and Fixed Equipment over the market value in the year in
which this Agreement is executed. The abatement as herein provided shall be for the following years.
and in the following amounts: Fifty percent(50%)of the taxes assessed upon the increased value of
the fixed equipment and improvements,annually for a period of five(5)years beginning January 1,
2009 and ending December 31,2013. In the event Neela shall move any time during the term of this
Agreement or take any other action that would prevent the City from getting sales tax revenue,then
all rebates previously earned and paid to Neela by the City shall be refundable to the City by Neela
and no further abatement shall be granted under any remaining term of this Agreement.
6. Neela 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. The City will conduct at least
one inspection annually to ensure compliance with the guidelines contained in Resolution No.
R2006-121. 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 Neela written notice of such
violation. For the purposes of this Agreement,Neela shall have ten (10) days from the date of the
notice to cure or remedy such violation. If Neela fails or refuses to cure or remedy the violation
within the ten (10)day period,Neela 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. Neela agrees and covenants that the information provided in the attached Application
for Tax Abatement (Exhibit "C") is true and correct and that any materially false or misleading
information that is provided to the applicable taxing jurisdictions may be grounds for termination of
the agreement with possible liability for recovery of abated taxes.
8. In the event that(1)the Improvements for which an abatement has been granted are
not completed in accordance with this Agreement; or(2)Neela allows its ad valorem taxes owed to
the applicable taxing jurisdictions to become delinquent and fails to timely and properly follow the
legal procedures for protest and/or contest of any such ad valorem taxes;or(3)Neela breaches any of
the terms or conditions of this Agreement,then this Agreement shall be in default. In the event that
Neela defaults in its performance of(1), (2), or (3) above, then the City shall give Neela written
notice of such default, which notice shall be delivered by personal delivery or certified mail to:
Neela, Inc, 8907 Dakota Court, Missouri City, Texas 77459. If Neela.has not cured such default
within sixty(60) days of said written notice,this Agreement may be modified or terminated by the
City. Notwithstanding the provisions set forth herein,this Agreement may be terminated at any time
after the execution hereof by agreement of both parties.
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9. In the event that the facility is completed and begins producing product or service,but
subsequently discontinues producing product or service for any reason except fire,explosion or other
casualty or accident or natural disaster for a period of one year during the abatement period,then this
Agreement shall be in default and shall terminate. The abatement of taxes for the calendar year
during which the facility no longer produces shall also terminate.
10. As liquidated damages in the event of default and in accordance with
Section 312.205,Tax Code,V.A.T.S.,as amended,all taxes which otherwise would have been paid
to the City without the benefit of abatement (but without the addition of penalty; interest will be
charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code)
will become a debt to the City and shall be due,owing and paid to the City within sixty (60)days of
the expiration of the cure period or the termination date, 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.
R2006-121.
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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 Neela only upon
written permission by the City in accordance with Resolution R2006-121,which permission shall not
be unreasonably withheld. No assignment shall be approved if the assignor or assignee are indebted
to the City for ad valorem taxes or other obligations. •
13. It is understood and agreed between the parties that Neela, in performing its
obligations hereunder,is acting independently,and the City assumes no responsibilities or liabilities
in connection therewith to third parties.
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14. NEELA RELEASES,ACQUITS,INDEMNIFIES,AND HOLDS HARMLESS
THE CITY, ITS OFFICERS, AGENTS, EMPLOYEES, SUCCESSORS, AND ASSIGNS,
FROM ANY AND ALL KINDS OF CLAIMS,DEMANDS,LOSSES,DAMAGES,INJURIES,
RIGHTS,CAUSES OF ACTION,OR JUDGMENTS OF WHATSOEVER CHARACTER OR
NATURE, INCLUDING ATTORNEYS' FEES, WHICH MAY ARISE AS A RESULT OF
THIS AGREEMENT. THE PROVISIONS OF THIS SECTION REFLECT THE
EXPRESSED INTENTIONS OF NEELA AND THE CITY AND SHALL SURVIVE THE
TERMINATION, EXPIRATION, OR CANCELLATION OF THIS AGREEMENT.
15. It is understood and agreed by the City and Neela 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 Neela has removed the
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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 day of , 2008, authorizing the City Manager to execute the Agreement on
behalf of the City.
17. This Agreement is entered into by Neela pursuant to authority granted by its
President, , on the clay of , 20_
18. This shall constitute a valid and binding Agreement between the City and Neela when
executed in accordance herewith.
19. This Agreement is performable in Brazoria County,Texas.
20. Neela agrees and covenants to certify annually to the City,while this Agreement is in
effect, that Neela is in compliance with each applicable term of this Agreement.
Witness our hands this day of
ATTEST: CITY OF PEARLAND
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By: By:
Young Lorfing, TRMC Bill Eisen
City Secretary City Manager
APPROVED AS TO FORM:
By:
Darrin M. Coker
City Attorney
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ATTEST: Neela, Inc
By: By:
Printed Name:. Printed Name:
"Title: Title:
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THE STATE OF TEXAS §
COUNTY OF BRAZORIA §
BEFORE ME, the undersigned Notary Public, on this day personally appeared Bill Eisen,
City Manager for the City of Pearland, known to me to be the person whose name is subscribed to
the foregoing instrument and acknowledged to me that he executed the same for the purposes and
consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS DAY OF
, A.D.,20 .
NOTARY PUBLIC, STATE OF TEXAS
Printed Name:
Commission Expires:
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THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned Notary Public, on this day personally appeared
of Neela, Inc, known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he executed the same for the
purposes and consideration therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE THIS DAY OF
, A.D., 20
NOTARY PUBLIC, STATE OF TEXAS
Printed Name:
My Corrunission Expires:
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EXHIBIT
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METES AND BOUNDS DESCRIPTION , '
9.4675 ACRES 'age o
(412,404 Square Feet)
Being all that certain 9.4675 acres(412,404 square feet)tract of land situated in Section 27,H.T.
& B.R.R. Company Survey, A-308, Brazoria County, Texas; and being part of Lot 165 and Lot
166 of the W.Zychlinski Subdivision as recorded in Volume 29,Page 9, of the Deed Records of
Brazoria County, and also being a portion of the land conveyed by Charles Edward Knight to
Helen F.Alexander by deed dated July 10, 1946,recorded in Volume 405,Page 540, of the Deed
Records of Brazoria County and being the same 44.119 acre conveyed to Jud's Food Stores,Inc.
on July 01, 1990 under Brazoria County Clerk's File 94-004499, said 9.4675 of one-acre .
(412,404 square feet)tract being more particularly described as follows to wit:
COMMENCING at the southeast corner of the parent 44.119 acre tract (found 44.1077 acres)
located in the westerly margin of State Highway No. 35, from which a 1/2-inch iron rod bears
North 86°36' 50"East, 1.63-feet and held for the south bearing line;
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thence, South 86° 36' 50" West, with the south line of said parent call 44.119 acre tract, a
distance of 920.09 feet to a %-inch iron rod set for the south east corner and POINT OF
BEGINNING of herein described tract;having surface coordinates of North= 13,759,951.79 and
East = 3,155,784.05: bearings and coordinates based on the Texas State Plane Coordinate
System, South Central Zone, NAD 83, U.S foot and may be converted to grid values by applying
a combined scale factor of 0.9998693755;
THENCE,South 86°36' 50"West,with the south line of herein described tract,with the
north line of that certain tract described in deed recorded in Volume 2007, Page 736 of
the Brazoria County Property Records,Brazoria County, Texas and with the south line of
the parent call 44.119 acre tract, at distance of 246.16 feet pass a concrete monument
disturbed by tree growth and continue a total distance of 827.04 feet to a 3/4-inch iron.rod
set for southwest corner,from which the southwest corner of the parent 44.119 acre tract,
a disturbed concrete monument bears South 86°36'50"West,2,046.48 feet;
THENCE, North 03° 23' 16" West, with the westerly line of herein described tract, a
distance of 498.64 feet to a 3/4-inch iron rod set in the south line of that certain 19-foot
wide strip of land conveyed to the City of Pearland(46,583 square feet)described in deed
filed for record under Brazoria County Clerk's File No. 2006032567, from which the
southwest corner of said 19-foot strip corner bears,South 86°36' 44"East, 1,466.65 feet;
THENCE,North 86° 36' 44"East,with the south line of said 19-foot wide strip(46,583
square foot) tract and with the north line of herein described tract, a distance of 827.04
feet to a 3/4-inch iron rod set for the northeast corner of herein described tract, from which
the point of the beginning of a curve corner for said 46,583 square foot tract bears,North
86°36' 44"East, 73.63 feet;
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THENCE, South 03°23' 16"East,with the east line of herein described tract, a distance
of 408.67 feet to a 3/4-inch iron rod set at the POINT OF BEGINNING and containing
9.4675 of one-acre(412,404 square feet)of land.
A survey exhibit of even date accompanies this metes and bounds description.
Prepared and compiled by:
Ratnala&Bahl,Inc.
11767 Katy Freeway, Suite 510
Houston,Texas 77079
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EXHIBIT
• A'' ; CA � - ';() := 'AKA : E NiE :., 1: D , <
It is recommended that this application be filed at least 9Q 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 far 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 beoome part of the agreement
and any knowingly false representations will be• grounds for the City to void the agreement.
Original copy of this request should be submitted.to the Pearland Economic Development Corp.
• Executive Director, City of Pearland,.3519Liberty Drive,Pearland, Texas 77581., Please attach
exhibits and additional information,
APPLICANT INFORMATION .
Application Date 0748,08 •
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Company Name N:eelila LLC • .Number of Current.Employees 1.(one)'. .
Address Pearland Industrial Park Annual Sales $6,1:100,0001st Pu11.Year of Operation .
Consecutive years in business Zero.(0)—.Start Up • . •
Corporation(S•-Corporation). . Partnership( ) • Proprietorship.()
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Please submit inancial.statements for the.prior two years. .
PROJECT INFORMATION
Type of facility: Manufacturing (X) Reg. Distribution Center ( )
(See Instructions). Regional Service ( ) Reg. Entertainment Center ( )
Other Basic Industry ( )
Location address and description of area to be designated as reinvestment zone .(attach map
showing site..andlegal description) 'plpa,sg,.see_a taobed.du'cum;lit"9.0§75,.49_41411.4ue __foar.
meet and'bounds description of the property, •
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Description of eligible improvements (real property) to be constructed (This includes fixed
equipment, buildings, parking lots, etc.): Building Cost Manufacturing Facility and Office):
$1,200;000 Concrete Slab for•Manufacturing&Office Building,Parking Lots,Driveways: •
$600,000 ;:Fixed Equipment S1,004100
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Description of ineligible property to be included in project, (This includes inventory and personal
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property.): Land : $725�000 Preparation$4004000 ; Inventory$75;000
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Wii1 this project require any permits by other federal, state or county agencies? If so,please fiat
the pate of the permit, .the permitting agency and a description of why and what the permit is
needed for; No . . .
The proposed reinvestment.zone is located in:
City
• County . .
School District . . . • •
College District .. • •
Other Taxing Jurisdictions -
• Tax ID number . Noelila LLC Tax 1D•# 26-1131711 . •
Description.of products) or service to be provided (proposed Ise): ):' PIease see'attached
document"Neelai Inc.-Proieet Description(746-08)"
Description of operations,processes involved,general overview: Please see attached.do.enment
"Neely Inc-Pro.ieet Description (7-06-08)" • . .
. _.._.. gyYYYiCWYIaYr4YQY d
ATTACH A•STATEMENT explaining the general nature and extent of the project, describing
existing site and improvements; describe all proposed improvements and provide list of
improvements and equipment for which abatement is requested. Include s. proposed time
sehedule for undertaking and completing .the planned,improvements as well as the company
officials and agents who will oversee the construction. . Describe other sites that are under
consideration, .
• 'NEW PLANT (.X) • EXPANSION ( ) . MODERNIZATION ( )
ECONOMIC INFORMATION . •
A. ` .Construction.Espmates .
. IF MODERNIZATION:
Commencement Date; July 2008 Estimated Economic Life Of
Construction-Man Years; 10-9.5 Months • Existing Plant: • .• • - Years
Conviction Date: ' • June-Oct 2009. . Added Economic Life from. .
Peak'Construction Jobs . 12(Twelve) Modernization; •. Years
B. Permanent Employment Estimates(FTE's) • .
Current Employment One(1)•ETE
Current Annual Payroll N/A(Start up) average annual-or hourly salary -
Number of jobs retained( . ) created.(27 FTE's - 1st Year in Operation )
•at start/opening of this project 27 FTE's. in year. 2010 •
• 5 years into operation 57 FTE's in year 2015
Local Transfer Total Est,Salaries
December 31,2010 23 FTE's 4 FTE's .27 FTE•'s. • $1,214,000 .
December 31,.2011 • • .3.6 FTE's $1,586,472
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December 31,2012' - 43 FTE's . $2,056,972 •
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C. Other Estimated Taxes Generated by Project
(1)Sales Taxes: *2010• : $ 167,481 .
*2011_:.$218,03
*2012^:$283,862 .
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• *2013_;$353,319
• *2014 : $396,135
• • ''Estimated Payroll Taxes based on Employee and Salary Projections
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(2) Other Taxes or fees (if known, impact fees, building fees, etc.): Taxes on
Building—Equipment—$135,000
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D. Estimated A'nnraised Value on Site: •
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13u11(1ing Bus,Personal
Land &Fixed Property
Equipment . &Inventory
I. Total-of preexisting value . $725,000 $0.00- $0.00
(Jan I preceding abatement) • ' '
II. Estimated value of NEW land added $0.00 $0.00 $0.00.
Estimated value•of NEW improvements $600,000 . $1,200;000 $0.,00 .
Estimated• alueof NEW fixed equipment • • $0,00 $1,300,000 $0.00
Estimated value of NEW personal
property and inventory added $0,00 $0,00 $75,900
Total of NEW value added $600,000 $2,500,000 $75,000
(Total columns In See.Il above)
III. Total value at end of Tax Abatement $1,325,000 $2,500,000 $75;000
(Total Part I&II)
• cyaRJHCRGRHAFRRC4gRRRRNRQI{NtlRRRq RRRGCRCRRRNRRRRNYYYR4'QQYRYRYYQQYQY<ilYY4RRYYR4RiYNYYYVf..li4iPRip4MR�4Y441(aW.iHRIjWu4RR:i '
TAX ABATEMENT REQUESTER
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of eligible property for a term of 5_years (Or) •
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• (. )Requesting Staggered Tax Abatement Terms as follows:
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VARIANCE .
•Is'the applicant seeking a variance under Section 3(f) .
• of the Guidelines? • ' • YES ( ) . NO (X).
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• If"YES"attach required.supplementary information.
OTHER ABATEMENTS; Has company made application
• for abatement of this project hp another taxing
jurisdiction or nearby counties? • YES ( ) . NO(X)
If"YES"'provide dates of application,.hearing dates,
. if held or scheduled,name.of jurisdictions and
contacts,and letters of intent.
COMPANY REPRESENTATIVE.TO BE CONTACTED Cc. t&, Al Cket\
Name: Bal K.Sareen . .
Title: -CEO-Neela Inc
Address: 8907 Dakota Court
IVIis4omri City,Texas 77459
Telephone: 337-430-0900(Hone) •
337-540-60.01 (Cell) • .
Authorized Co pany. Official:
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By:
Printed Name: S,( V4
Title: C�. 'Q
• Revised November 21,2000
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INSTRUCTIONS
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Applicants and projects must meet the requirements established by the City of Pearland
Guidelines and Criteria for Granting Tax Abatement in a Reinvestment Zone found in.Resolution
No,R98-59•(attached)in order to receive positive.consideration. Section 2.of the Guidelines,for
example, sets out regulations governing eligible facilities, eligible-and ineligible improvements,
terms and economic qualifications. Conformance with all sections, however, is required for
eligibility,
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APPLICANT INFORMATION
The taxing unit may consider applicant financial capacity in determining whether to enter into an
abatement agreement. Established companies for which public information is available, or the
Wholly owned businesses of such companies,should.include with the application a copy of their
latest annual report to. stockholders, Other applicants and new companies should attach a
statement showing when the company was established, business references (name, contact and
telephone number of•.principal bank, accountant and attorney).and may be required to submit an
audited financial statement and business plan, • .
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PROJECT INFORMATION •
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Only facilities.listed in Section 2(a) of the Guidelines may receive abatement without applying
for a variance. Check guideline definitions in Section 1 to see if project qualifies, If project is a
Regional EntertainmentFacility, Regional Service Facility,Regional Distribution Center•Faeility
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 • • . .
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Permanent Employment Estimates - In estimating the permanent employment, include the total
number ofjobs retained or created at this site by your firm as well as known permanent jobs of
• service contractors required for operation.
Estimated Appraised Value.on Site-The value as of January 1 immediately preceding abatement
should be the value established by the Brazoria County Appraisal District. If the applicant must
estimate value.because the taxable value is not known or is combined With otherproperties.tlnder
a•single tax account please so state, Projections of value should be.a "best estimate"based on
taxability in.Texas. The projection.of project values not abated should include personal property . •
and ineligible project-related improvements such as office space in excess of that used for•plant
administration,housing, etc.
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SAMPLE.PROJECT DESCRIPTION
The project will be the construction of a new manufacturing facility that will •also include our
sales and engineering staff. We.expect to have approximately 150-160 employees on site, We
expect the project will:require the construction of a building of approximately 70,000.square feet
at a cost of approximately $16-$2.8 million, It is anticipated that fixed manufacturing
equipment of approximately $1.,500,0.00 will be included in the project. Tax abatement will be
sought on all items allowed by law. .
SAMPLE TIME:SCHEDULE •
September-Dec 3.1,2001. Legal work,conceptual phase,contractor selection
January 1 -Jan 30,2002 Wetlands study, l$t please architecture,soils engineering,
• topographical.mapping,detention pond engineering
February 1-February 28.,2002 Architectural drawings,.final engineering,permits-and
applications: .
March 1 -March 30,2002 Bids and initial site work •
April 1-November 15, 2002 Construction . •
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November 16-December•25,2002 Move-in,.start up • .
December 30,2002 . " Completion
. DO NOT WRITE IN_'HIS AREA--FOR'PROCESSING PURPOSES ONLY
1. EDC contact
2. • Precinct •
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3. • Jurisdictions notified ,� / " •
4.. Initial review completed • / / •
5. Review circulated • / /
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6. ISI)concurrence? •
7. College concurrence? .
8". City concurrence?
9. Letter of Intent • / /
10. nearing noticed on agenda ./. /
11, Public hearing . / /.
12. ISD action • • / / " . . . •
13. College action / " /
14. City action / / •
•
15. Agreement signed / /
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Neela Inc. — New Plant in Pearland, Texas
ftfeela Inc.
The management of Neela Inc. is pleased to announce that our company is building a state of the art
'nbrication facility in Pearland,Texas. Being strategically located on 9.45 acres in the Pearland Industrial Park,
lieela Inc.will be able to service local petrochemical/chemical customers from Texas City,Freeport, and Baytown
ocations along with Fortune 500 and international clients.
The new facility will have 3 (three) bays. Two identical outer bays 60' (sixty feet)wide by 400' (four
hundred feet) long and an inner bay 80' (eighty feet)wide by 400' (four hundred feet)long with a hook height of
;5'-0". The total lifting capacity will be approximately one hundred(100)tons and the estimated capital
nvestment upon completion will be close to $5MM(five million dollars). The shop will have a weld,machine, and
issembly department. It will also include a clean room for high alloy welding.
Neela Inc.'s product line consist of custom fabricated heat transfer equipment,bulk transport, blender
'pits,filtration/separation equipment and state of the art skid mounted biodiesel units.This diversified product
'ne aligns with varying parts of the energy sector. Neela Inc.plans on employing 26 (twenty-six) people in its
first full year of operation.
New Manufacturing Facility
Total Acreage: 9.45 Acres (Pearland Industrial Park)
Main Shop:
Bay 1 60' x 400' 20 Tons Lifting Capacity
Bay 2 80' x 400' 50 Tons Lifting Capacity
Bay 3 60' x 400' 10 Tons Lifting Capacity
Hook Height: 25'-0"
Maximum Lifting Capacity: 100 Tons
''i•' I S �` t ' f''.
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14 1
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METES AND BOUNDS DESCRIPTION
9.4675 ACRES Page 1 of 2
(412,404 Square Feet)
Being all that certain 9.4675 acres (412,404 square feet)tract of land situated in Section 27,H.T.
& B.R.R. Company Survey, A-308, Brazoria County, Texas; and being part of Lot 165 and Lot
166 of the W.Zychlinski Subdivision as recorded in Volume 29, Page 9, of the Deed Records of
Brazoria County, and also being a portion of the land conveyed by Charles Edward Knight to
Helen F.Alexander by deed dated July 10, 1946,recorded in Volume 405,Page 540, of the Deed
Records of Brazoria County and being the same 44.119 acre conveyed to Jud's Food Stores,Inc.
on July 01, 1990 under Brazoria County Clerk's File 94-004499, said 9.4675 -of one-acre
(412,404 square feet)tract being more particularly described as follows to wit:
COMMENCING at the southeast corner of the parent 44.119 acre tract (found 44.1077 acres)
•• located in the westerly margin of State Highway No. 35, from which a 1/2-inch iron rod bears
North 86°36' 50"East, 1.63 feet and held for the south bearing line;
thence, South 86° 36' 50" West, with the south line of said parent call 44.119 acre tract, a
distance of 920.09 feet to a 3/4-inch iron rod set for the south east corner and POINT OF
BEGINNING of herein described tract;having surface coordinates of North= 13,759,951.79 and
East = 3,155,784.05: bearings and coordinates based on the Texas State Plane Coordinate
System, South Central Zone, NAD 83, U.S.foot and may be converted to grid values by applying
a combined scale factor of 0.9998693755;
THENCE,South 86°36' 50"West,with the south line of herein described tract,with the
north line of that certain tract described in deed recorded in Volume 2007, Page 736 of
the Brazoria County Property Records,Brazoria County,Texas and with the south line of
the parent call 44.119 acre tract, at distance of 246.16 feet pass a concrete monument
disturbed by tree growth and continue a total distance of 827.04 feet to a%-inch iron rod
set for southwest corner,from which the southwest corner of the parent 44.119 acre tract,
a disturbed concrete monument bears South 86°36'50"West,2,046.48 feet;
THENCE,North 03° 23' 16" West, with the westerly line of herein described tract, a
distance of 498.64 feet to a 3/4-inch iron rod set in the south line of that certain 19-foot
wide strip of land conveyed to the City of Pearland(46,583 square feet)described in deed
filed for record under Brazoria County Clerk's File No. 2006032567, from which the
southwest corner of said 19-foot strip corner bears,South 86°36' 44"East, 1,466.65 feet;
THENCE,North 86° 36' 44"East,with the south line of said 19-foot wide strip (46,583
square foot) tract and with the north line of herein described tract, a distance of 827.04
feet to a 3 -inch iron rod set for the northeast corner of herein described tract,from which
the point of the beginning of a curve corner for said 46,583 square foot tract bears,North
86°36' 44"East, 73.63 feet;
C:\Users\GALBR1--1\AppData\LocalCTemp\notesFCBCBE\9.4675_ac m&b.doc
Page 2 of 2
THENCE,South 03° 23' 16"East,with the east line of herein described tract, a distance
of 498.67 feet to a%a-inch iron rod set at the POINT OF BEGINNING and containing
9.4675 of one-acre(412,404 square feet)of land.
•
A survey exhibit of even date accompanies this metes and bounds description.
Prepared and compiled by:
Ratnala&Bahl,Inc.
11767 Katy Freeway,'Suite 510
Houston,Texas 77079
•
C:\Users\GALBRI—IWppData\Local\Temp\notesFCBCEE\9.4675_nc m&b.doc
Pearland Economic Development corporation
Assistance Application Form
Applicant Information
•
Company Name: Neela Inc
Address: , 8907 Dakota Court
Missouri City,Texas 77459
Company Official: Lovkesh Kevin Sareen
Title: President
Telephone: H: 281-778-9163 ;C:302-399-4643 , W: 337-882-1944
FAX: •
Please submit third party reviewed financial statements or IRS tax filings for the prior
two years. ,
Project Description
Applicant MUST attach a statement fully .explaining the project. Describe future site
improvements, business operations, and economic impacts of the proposed project. If the
company will be required to obtain any State or Federal permits, please detail which permits and
why they are required. The company must ask for assistance from the PEDC.
Description of Facility(Select those that apply)
Corporation( ) Partnership( ) Proprietorship( ) New Plant ( )
Expansion ( ) Modernization ( ) Manufacturing(X) Sales ( )
Office/Professional ( ) Other Industry ( ) Distribution Center ( )
Project Location(Attach site plan): 12 Acres of Abstract 0308, HT&BRR Survey, Tract 4(PT)
Total Capital Investment(Excluding Land Value): $—3,800,000.00
Estimated Expenses of Bringing Utilities to Site: TBD
Building Size(Sq.Ft.):—80,000 Sq Ft(Shop);—5,000 Sq Ft(Office)
Estimated Moving Expenses:—$55,000
Estimated Annual Sales Tax Contribution: 8.25%of Avg. Sales Arnt from 2008-12--$895,000
Estimated Value of Fixed Equipment: —$2,200,000.00
Sales Tax Sent to State of Texas (Last year):None
Company Profile:Employment:
Current Employment: 1 Employment in 5 years: —57
Gross Annual Payroll: $100,000 Annual Payroll in S years: $2,870,542
Average Hourly Wage: N/A Avg.Wage in 5 years: —$45,097
Revised November 21, 2000
e
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z ra — f
January 29,2008
Lovkesh Kevin Sareen
Business Development Manager
Brask, Inc _
2300 Louis Alleman Parkway
Sulphur, LA 70663-1544
RE: Project Brask/Millennium Bio Fuel
Dear Kevin:
I am pleased to inform you of the Board's decision at its January 28, 2008 meeting
concerning your project in Pearland on West Industrial Drive. The Board of Directors of
the Pearland Economic Development Corporation made the following offer of assistance
to support this project:
• Project description — Construction of a manufacturing facility for the
manufacturer and re manufacture of vessels and components used in the
petrochemical and refining industry. R&D and manufacture of a skid
mounted reactor capable of producing bio-diesel.fuels.
• Facility will be approximately 80,000 square feet with a 30 foot eave
height for a crane served structure. Welding, fabricating, C&C machines
and equipment to facilitate fabrication of end products.
• Employment of 26 initially growing to over 50 persons in five years.
Average salary estimated at$45,000 per year
• Initial capital investment less land of approximately $2.8 million plus
manufacturing and production equipment.
General assistance to be provided—The Board resolution for assistance:
Term of grant — The Board of Directors will pay a relocation incentive to Brask of
$150,000 upon receipt of a permanent certificate of occupancy from the City of Pearland.
Construction and land development to commence within 180 days of the receipt of this
Pearland Economic Development Corporation
3519 Liberty Drive .
Pearland,TX 77581
Office—281.652.1627 Fax—281.652.1704
offer of assistance from Pearland EDC on property located within the city limits.of the
City of Pearland, Texas. Brask and or its successors will be subject to annual reporting -
requirements for the levels of employment guaranteed within the terms of this agreement
using the standard reports provided to the Texas Work force Commission for the
purposed of workers compensation. Additionally, a report from the Brazoria County
Appraisal District as to the value of all fixed assets and personal property will be
forwarded to the Pearland EDC on an annual basis over the first five years of operation or
upon achieving 50 or more full time employees for twelve consecutive months,
whichever occurs first. A separate performance agreement will follow this letter.
Please be advised that any grant or expenditure that exceeds $100,000 must also receive
the concurrent approval of the Pearland City Council:This item will be placed on a future
agenda to be acted on by Council during a regularly posted meeting.
I commend you and your team for undertaking this endeavor and wish you all the best as
you begin construction. Feel free to contact either Gregg Albritton or myself at
281.652.1627 if you have any other questions on this matter.
Congratulations and best wishes your continued success.
Sincerely,
Fred Welch CEeD
Executive Director
• CC: Bill Eisen
• Gregg Albritton
PEDC Board/City Council
Pearland Economic Development Corporation
3 519 Liberty Drive
Pearland,TX 77581 •
Office—281.652.1627 Fax—281.652.1704
•
EXHIBIT"D" •
MANPOWER REPORT
• I, , of Neela, Inc, do certify that on
, 20 there were individuals employed full time at Neela.
Printed Name:
Title:
Date:
THE STATE OF TEXAS §
COUNTY OF §
BEFORE ME, the undersigned Notary Public, on this day personally appeared
of Neela, 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.
SUBSCRIBED AND SWORN TO BEFORE ME on the day of
, to certify which witness my hand and official seal.
NOTARY PUBLIC, STATE OF TEXAS
Printed Name:
My Commission Expires: