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R96-33 06-10-96RESOLUTION NO. R96-33 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS, AUTHORIZING THE CITY MANAGER TO ENTER INTO A TAX ABATEMENT AGREEMENT WITH MTI ACQUISITION CORP. ("MTI") FOR PURPOSES OF ABATING THE INCREASED VALUE OF THE PROPERTY OWNED BY MTI 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 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. 728, WHICH ESTABLISHED A REINVESTMENT ZONE, 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 MTI Acquisition Corp., 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, 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. R96-33 PASSED, APPROVED, AND ADOPTED this the 6 day of ATTEST: , A.D., 1996. Ya NDA C. BENIT SECRETARY Z APPROVED AS TO FORM: AMY OTES McCU LOUGH CIT TORNEY TOM REID MAYOR 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 MTI Acquisition Corp., duly acting by and through its Vice President and Chief Financial Officer ("MTI"). WITNESSETH: WHEREAS, on the 13th day of May, 1996, the City Council of the City of Pearland, Texas, passed Ordinance No. 728 establishing a Reinvestment 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 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. 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, 1 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, MTI 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 MTI's facility on the Premises, described in Exhibit "B" ("Improvements") will cost approximately Two Million Five Hundred Thousand Dollars ($2,500,000) and is to be substantially complete on or about September 1, 1996; provided, that MTI shall have such additional time to complete the Improvements as may be required in the event of "force majeure" if MTI 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 MTI 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 MTI), 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. MTI 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 con- sideration of this Agreement. MTI 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, MTI shall thereafter, from the date a Certificate of Occupancy is issued until the expiration of this Agreement, continuously operate and maintain the Premises as MTI, 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. MTI agrees and covenants that the Improvements shall provide approximately 65 jobs during the period of the abatement, beginning with 40 employees in 1997 and increasing to 90 employees by 2004. Accordingly, MTI shall provide to the City annual manpower reports (Exhibit "F") within sixty (60) days following the end of each calendar year. 5. Subject to the terms and conditions of this Agreement, and subject to the rights and holders of any outstanding bonds of the City, a portion of ad valorem property taxes assessed to the Property and otherwise owed to the City shall be abated. City hereby acknowledges that it is not aware of any terms or conditions of any outstanding bonds which would invalidate this Agreement. Said abatement shall be an amount equal to 50 % of the taxes assessed upon the increased value of the Property and Improvements, in accordance with the terms of this Agreement and all applicable state and local regulations for a period of seven (7) 2 years beginning January 1, 1997 and ending December 31, 2003. 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 MTI 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. MTI 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 MTI written notice of such violation. For the purposes of this Agreement, MTI shall have ten (10) days from the date of the notice to cure or remedy such violation. If MTI fails or refuses to cure or remedy the violation within the ten (10) day period, MTI 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. MTI 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) MTI 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) MTI breaches any of the terms or conditions of this Agreement, then this Agreement shall be in default. In the event that MTI defaults in its performance of (1), (2), or (3) above, then the City shall give MTI written notice of such default, which notice shall be delivered by personal delivery or certified mail to: David S. Feller, TAFA, 146 Pembroke Road, Concord, New Hampshire 03301. If MTI has not cured such default within sixty (60) days of said written notice, this Agreement may be modified or terminated by the City. 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 3 period, then this Agreement shall be in default and shall terminate. The abatement of taxes for the calendar year during which the facility no longer produces shall also terminate. 10. As liquidated damages in the event of default and in accordance with Section 312.205, Tax Code, V.A.T.S., as amended, all taxes which otherwise would have been paid to the City without the benefit of abatement (but without the addition of penalty; interest will be charged at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code) will become a debt to the City and shall be due, owing and paid to the City within sixty (60) days of the expiration of the cure period stated in paragraph 8 or the termination date stated in paragraph 9, whichever is applicable. The City shall have all remedies for the recapture and collection of the lost tax revenue as provided generally in the Tax Code for the collection of delinquent property taxes and in accordance with Resolution No. 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 MTI 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 MTI, in performing its obligations hereunder, is acting independently, and the City assumes no responsibilities or liabilities in connection therewith to third parties. 14. MTI 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 MTI AND THE CITY AND SHALL SURVIVE THE TERMINATION, EXPIRATION, OR CANCELLATION OF THIS AGREEMENT. 15. It is understood and agreed by the City and MTI 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 MTI 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. 4 16. This Agreement was authorized by Resolution of the City Council at its council meeting on the 10th day of June, 1996, authorizing the Mayor to execute the Agreement on behalf of the City. 17. This Agreement is entered into by MTI pursuant to authority granted by its Vice President and Chief Financial Officer on the 1Z- day of ,X.) 1 , 19`� 66, whereby the Vice President and Chief Financial Officer was authorized to ex�cute this Agreement on behalf of MTI, a copy of which authorization is attached hereto as Exhibit "E". 18. This shall constitute a valid and binding Agreement between the City and MTI when executed in accordance herewith. 19. This Agreement is performable in Brazoria County, Texas. 20. MTI agrees and covenants to certify annually to the City, while this Agreement is in effect, that MTI is in compliance with each applicable term of this Agreement. Witness our hands this c,20 day of ,, c t..19 , 19 q& . CITY OF PEARLAND ATTEST: By: By: Paul Grohman City Manager la da C. Benitez City Secretary APPROVED • . TO FORM: By: A y otes cCullough City A orney 5 MTI.AGR MTI ACQUISITION CORP. By: ATTEST: By: Printed N Mg CY �. 3'cdd Title: Accovnt,;\4: Ncunacler IA Zcc- 6 Dave Feller Vice President and Chief Financial Officer MTI.AGR THE STATE OF § § KNOW ALL MEN BY THESE PRESENTS: COUNTY OF _ § This instrument was acknowledged before me on 71 , 1996, by D Feller, Vice President and Chief Financial Officer of M I Acquisition Corp., a _ corporation, on behalf of said corporation. NOTARY UB1.1 STATE OF Commission Expires:" 1'riniatiNams. THE STATE OF TEXAS § KNOW ALL MEN BY THESE PRESENTS; COUNTIES OF HARRIS & BRAZORIA § This instrument was acknowledged before me on ITLI 2 i7L , 1996, by Paul Grohman, City Manager of the City of •Pearland, Texas, a Te cas home rule municipal corporation, on behalf of said corporation. •: �. LISA D. JONES it: _ ;* E NOTARY P1J.IC • STATE MUSS ��f ��: MY COMMISSION EXPIRES n,a� SEPTEMBER 21, 1999 NOTAY PUBLIC STATE OF TEXAS Commission Expires: 9 f 1q 9 PrintedName: }-15a D. J O ries OW % oyet1wale Exhibit "A" Page 1 of 3 Premises STATE OF TEXAS § COUNTY OF BRAZORIA § FIELDNOTE DESCRIPTION of a 10.207 acre tract of land in the R. B. Lyle Survey, Abstract No. 543 in Brazoria County, Texas. Said 10.207 acre tract is out of the East one-half (1/2) of Tract -47 of the W. Zychlinski Subdivision of H. T & B. R. R. Section 4 in the City of Pearland and is further described as being all of Lot 1 of Block 1 of Mykawa Acres Subdivision as recorded in Volume 16, Page 304 of the Brazoria County Plat Records. Said 10.207 acre tract is more particularly described by metes and bounds as follows: BEGINNING at a 5/8 -inch iron rod found for the Northeast corner of the herein described tract, said point bears west, 20.00 feet from a 5/8 -inch iron rod found at the point of intersection of the north line of said Tract 47 with the original west right -of way line of Mykawa Road (based on width of 60 -feet); THENCE, South, along the west line of a 20 -foot wide strip described in a deed to the City of Peaxland for roadway and utility purposes as recorded in Volume'`1390, Page 18 of the Brazoria County Deed Records, same being the east line of said Lot 1, for a distance of 322.15 feet.to a 5/8 -inch iron rod found for the northeast corner of Lot 2, Block 1 of the aforementioned Mykawa Acres Subdivision; THENCE, North 89°27'45" West, along the common line between said Lot 1 and Lot 2 for a distance of 285.07 feet (called 286.31 feet) to a 5/8 -inch iron rod set for corner; THENCE, South 00°31'00" West, along the west line of said Lot 2 for a distance of 191.37 feet to a 5/8 -inch iron rod set for the most southerly southeast corner of the herein described tract, said point being the southwest corner of said Lot 2; THENCE, West, along the south line of said Lot 2; same being the north line of a 2-1/2 acre tract described in a deed to W & N Enterprises as recorded in Volume 1632, Page 836 of the Brazoria County Deed Records, for a distance of 689.90 feet to a 5/8 -inch iron rod set for the southwest corner of the herein described tract; Exhibit "A" Page 2 of 3 Page 2 10.207 Acre Tract THENCE, North, along the west line of said Lot 2, same being the east line of 15.3 acre tract described in a deed to Henry Flake, Jr. as recorded in Volume 806, Page 655 of the Brazoria County Deed Records for a distance of 510.84 feet to a 2 -inch galvanized iron pipe found for the northwest corner of the herein described tract; THENCE, East, along the north line of said Lot 2, same being the south line of a 22.907 acre tract described in a deed to Jeff Fleming and E.W. Newman as recorded in Volume 914, Page 458 of the Brazoria County Deed Records for a distance of 976.70 feet to the POINT OF BEGINNING, containing a computed area of 10.207 acres (444,600 square feet). Walsh Surveying, Inc. 2006 E. Broadway, Suite 105 Pearland, Texas 77588 (713) 485-3991 Job No. 96-104 Mici-lael D. `1Tilson, R. P. L. S . Registration No. 4821 /23.06' 1. , •.t Exhibit "A" Page 3 of 3 () M a -Ms: .3000A , 4!4?s ; lG>tLIIILtOh1. &uJJP _...TAXL_— _w.e5cco • .._� .Y::.......,,., ....... , i V i r NA :X r G 1c u.Y r. !`0 1 1 k a 0 k -4a CD • 4 v 1 PodatGCi �+4'a •r_ ti • s 2 g r 1dl0s -♦ P.Pao/Ae fY r. C/I •� .•/../ .,•0,1•110d• ir v.�. /�, �/l1 *COG, _. 6, re JO • I or <s.ion/,rei/IsoRIGear.* ,.- �� t5�-%ihfin Tsr��W'..Tr�_,..-- „� 7.'1a- .._ _ �ic.�e, EXHIBIT "B" IMPROVEMENTS The proposed facility will consist of two single story metallic buildings, Building A and Building B. The purpose of the facility is to manufacture thermal spray powders. Building A will contain approximately 15,750 square feet and will be used for shipping and receiving. This building will be equipped with inventory and machinery including but not limited to spray drying and furnacing and sizing equipment. Building B will contain approximately 17,500 square feet and will be used for office space and quality control laboratory purposes. This facility will be equipped with (1) standard office furnishings including but not limited to desks, chairs, file cabinets, and personal computers, and (2) physical testing equipment including but not limited to sieves, microscopes and other particle size analyzers. The facility will include approximately 50 parking spaces. EXHIBIT "C" ESTIMATED VALUES ESTIMATED ABATED BASE VALUE VALUE YEAR VALUE BUILDING A 170000.00 85000.00 85000.00 BUILDING B 150000.00 75000.00 75000.00 DRIVEWAY 30000.00 15000.00 15000.00 PARKING LOT 30000.00 15000.00 15000.00 DRAINAGE & IMPROVEMENTS 89000.00 44500.00 44500.00 MACHINERY 1850000.00 925000.00 925000.00 TOTAL 2319000.00 1159500.00 1159500.00 Exhibit "D" APPLICATION FOR TAX ABATEMENT IN THE CITY OF PEARLANA 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) . 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 Dr., Pearland, Texas 77581, APPLICANT INFORMATION Date February 8, 1996 MUST SUBMIT ANNUAL REPORT' (Sec Instructions.) Number of Employees..._{ ---, Annual Sales (period) _A6 000K 8 months ( _ ) Company Name MTI Acquisition Corp. Address 146 Pembroke Road Concord, NH 03301 Corporation (;<,) Partnership ( PROJECT I NFORMAT ION Proprietorship ( ) Type of Facility: Manufacturing ( ) Reg. Distribution Center ( ) (See Instructions) Regional Service ( ) Reg. Entertainment Center ( ) Other Basic Industry ( ) Location Address and School District Pearland TXM, Legal Description Mykawa Road College District Pearland, TX City .or Town Pearland Attao i ma ,OLDIE rzoI$ed g itg Describe Product or Service to be provided, Metallic/Carbide/Ceramic Powders 'Z2.i,.,DIP;Zi.ption Attach statement fully explaining project, describe existing site and improvements, describe all proposed•improverrents and provide list of improvement and equipment for which Abatement is requested. NEW PLANT (x) EXPANSION ( ) MODERNIZATION ( ) ECONOMIC INFORMATION r(415.1Xligti2A ,Estimats Start Month/Year_,__/ 96 Construction Man Year$ Completion Date_ 6 _/ '__.._.__ Peak Construction PSTMA4€_ilt—EMPlAY1 1—Z 1iC.iL►A/Al_igIE ) Current Plant Employment__„19 Number of plant jobs retained (19) or created ( ) at start/opening in year 1996 5 years Into operation 80 in year 20u1.._ _ Xx' MODERNIZATION: Estimated Economic Life of Existing Plant,,, years Added Economic Life from Modernization veers Eatimated.A alacd_YalUe_ea, ito Value January 1 preceding abatement agreement. . Est. Value of abated properties after abatement expires, . . . . . . Value upon completion of project personal property and project improvements not subject to abatement VARIANCE Personal Property 0 4 Improve- ments 0 Is the applicant seeking a variance under Section 3(f) of the Guidelines? If "YES" attach required supplementary information. OTHER ABATEMENTS. Has company made application for abatement of this project by another taxing juris- diction or nearby counties? 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: Name David S. Feller Tit1e_Treasurer Address 146 Pembroke Road Concord, NH 03301 Telephone (603) 223-2115 YES YES Land $ d0K Elierfare— �) NO( ) Brazoria County tom Signature of Company Official David S. Feller - Treasurer NameTitle of Company Official N. r - - - r .. - .. Oil • Om INSTRUCTIONS Applicants and projects must meet the requirements established by the City of Pearland Guidelines and Criteria (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. Con- formance with all sections, however, is required for eligibility. 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 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 pian. PROJECT INFORMATION Only facilities listed in Section 2(a) of the 4uldeline3 may rective ahnte,ment without applying for a variance Check guideline definitions in Section 1 to sae if project qualifies. If proicct is A Rog Tonal Entertainment Facility, Regional Service Facility, Regional Distribution Center Facility or Other Bae is JndustrY1 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 Pei:m,3nent Employment Estimates - In estimating the permanent employment, include thh total number r,f jobc retained cr created at this ;cite by your firm as well as known permanent jobs of tscrvio contractors required for operation. b;btimated Appraised Value on Site - The value January 1 preceding abatement should be the vAiue established by the Braaoria County Appraisal District. If the applicant must estimate value because the taxable value is not known or is combined with other properties under single tax account, please so state. To qualify, the 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 oil taxability in Texas. The projection of project values not abated should include personal property and ineligible project -related improvements such as office space £r excess of that used for plant administration, housing, etc. DO NOT WRITE IN THIS AREA -- FOR PROCESSING PURPOSES ONLY 1. EDC contact 2. Precinct 3. Jurisdictions notified 4. Initial review completed 5. Review circulated 6. ISD voncurrence?_,..., 7, College concurrence?,,,___ 8. City concurrence? 9. Letter of Intent 10. Hoaxing noticed on 11. Public hearing 12- UJD action 13. College action 14. City action 15. Agreement signed agenda EXHIBIT "E" (Resolution or Other Authorization of MTI's Board of Directors) Exhibit "E" UNANIMOUS WRITTEN CONSENT OF THE BOARD OF DIRECTORS OF MTI ACQUISITION CORP. Pursuant to Section 141(f) of the Delaware General Corporation Law The undersigned, being all of the Directors of MTI ACQUISITION CORP., a Delaware corporation (the "Corporation"), hereby waive any notice of, and dispense with the holding of, a meeting of the Board of Directors of the Corporation and hereby adopt the following resolutions by unanimous written consent: WHEREAS, there has been submitted to the Board of Directors of the Corporation a form of Tax Abatement Agreement (the "Agreement") by and between the Corporation and the City of Pearland, Texas ("City") pursuant to which, among other things, a portion of the property taxes assessed to the Corporation's Premises (as defined in the Agreement) shall be abated by the City. WHEREAS, the Board of Directors of the Corporation hereby deems the Agreement desirable and in the best interests of the Corporation. NOW, THEREFORE, BE IT: RESOLVED, that the Agreement, substantially in the form attached hereto as Exhibit A, the terms and provisions of which Agreement are to be further negotiated and determined by the proper officers of the Corporation in their discretion, is hereby approved and confirmed in all respects; and it is further 40833231 RESOLVED, that the proper officers of the Corporation be, and each of them hereby is, authorized, empowered and directed to negotiate, execute and deliver the Agreement and any amendments, modifications or supplements thereto in the name and on behalf of the Corporation, and containing such additions, deletions and changes as approved by such officers executing the same, such approval to be conclusively evidenced by the execution thereof by such officers; and it is further RESOLVED, that all actions taken by the officers of the Corporation to date in connection with the Agreement, be, and they hereby are, approved and confirmed in all respects; and it is further RESOLVED, that, the proper officers of the Corporation be, and each of them hereby is, authorized, empowered and directed to determine whether the conditions to the Corporation's obligations under the Agreement have been satisfied, or to waive such conditions as such officers may deem necessary, appropriate or advisable in order to effect the transactions contemplated by the Agreement, the taking of such action to be conclusive evidence of such approval; and it is further RESOLVED, that the proper officers of the Corporation be, and each of them hereby is, authorized, empowered and directed to negotiate, execute and deliver in the name of and on behalf of the Corporation, such instruments and agreements and to take all such other actions, as such officer may deem necessary, appropriate or advisable in order to effect the transactions contemplated by the Agreement and to carry out the intent and purpose of the foregoing resolutions, the execution of such instruments or agreements and the taking of such other actions to be conclusive evidence of such approval. -2- 40833251 IN WITNESS WHEREOF, the der..igned have executed this consent on this 7c\ day of Jul 40833251 . H. Roth E. L. Schlaef r P. A. a2a.vtzuk,\AQA, mme O. S. Feller -3- I, EXHIBIT "F" MANPOWER REPORT of MTI Acquisition Corp (MTI) do certify that on individuals employed full time at MTI Acquisition Corp. THE STATE OF TEXAS COUNTIES OF BRAZORIA AND HARRIS , 19 there were Printed Name: Title: Date: BEFORE ME, the undersigned Notary Public, on this day personally appeared of MTI Acquisition Corp. (MTI), 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 1996, to certify which witness my hand and official seat. NOTARY PUBLIC, STATE OF TEXAS Printed Name: My Commission Expires: • • _ __•-_ _The Friendswood Jou' - r LEGAUPUBLIC .1 LEGAUPUBLICI LEGAUPUBLIC ' • NOTICE NOTICE NOTICE • I l I I negotiate additional terms Code and City of Pearlarid .. 4 r:_ with any proposer. . Resolution No.R96-12. •' Posted this the 2$day of i February,1996. NOTICE OF PUBLIC All interested citizens and HEARING ON TAX property owners are hereby , ABATEMENT appearandfbehheard ri ontthe to 1 . Notice is hereby given that matter. . • —— a public-hearing will be held--- -- --- - - .- by the-City Council of th " Yolanda C.Benitez , City of Pearland, Tex ' City Secretary the Council C - rs, • • City of Pearland Ha 519 Libert Dri P aria Texas This site is accessible to • • p.m.on ,. r disabled individuals. For the pur se„ considering special assistance such as th eation of a the need -of deaf re' ent zone and tax interpreters or -braille abatement for . MTI materials please call • Acquisition Corp. located Yolanda Benitez at 485 . • on Mykawa -Road in - 2411, ext. 341 prior to the Pearland in accordance meeting so that appropriate with 312.201 of the Tax arrangements can be made. 1 - , i • i AFFIDAVIT OF PUBLICATION 1 Before me, the undersigned authority, ' on this day :personally appeared GLORIA BOIKE, Business Manager for THE JOURNAL, a ' newspaper having general circulation in Brazoria County, Texas , who being by me duly sworn , deposes and says that the foregoing attached :notice was published in said newspaper on the following date(s) , to wit : 1k.p • 19 19 • , 19 '. • XBUsIlete.) NES MANAGER Subscribed and sworn to this I �� day of M Crl 19aU . i 1 NOTARY PUBLIC ' (SEAL) STATE OF TEXAS 4 NIKKI KLEIN • 4-* „ otary Public,State of Texas' V Al- 4 My Commission Expires :; 1 IF .. 05/17/98 I • rd""‘ naT cuNZ /4490,0-yuivul-- . „ .: • . • . 7... • .. • •