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HomeMy WebLinkAboutPR 13406: SOUTHWOOD CROSSINGinteroffice MEM0 ANDUM TO: Mayor, City Council, and City Manager From: Mark T. Sokolow, City Attorney /~j~¥ ~F. Date: February 3, 2006 Subject: P. R. 13406; Joint EDC/Special Council Meeting February 7, 2006 Attached is P. R. No. 13406 establishing a Neighborhood Empowerment Zone under Chapter 378 of the Local Government Code and approving an Incentive Agreement with One Southwood Crossing, LP. MTS:gt Attachment CC: VIA FACSIMILE (409) 721-6603 Mr. K. T. Akbari ICON BUILDERS, INC. 2901 Turtle Creek Drive Port Arthur, Texas 77642 z.pr13406.memo P. R. No. 13406 02/03/06 ts REg0LUTION NO. A RESOLUTION EgTABLISHIN~ A NEIGHBORHOOD EMPOWERMENT ZONE UNDER CHAPTER 378 OF THE LOCAL GOVERNMENT CODE AND APPROVING AN INCENTIVE AGREEMENT WITH ONE SOUTHWOOD CROSSING, LP NEERHAS, the City is authorized under Chapter 378 (Neighborhood Empowerment Zone) of the Local Government Code to create a Neighborhood Empowerment Zone if the City determines that the zone would promote, (1) the creation of affordable housing, (2) an increase in economic development, (3) an increase in the quality of social services, education, or public safety provided to residents in the zone, or (4) the rehabilitation of affordable housing in the zone; and WHEREAS, the City must make certain determinations pertaining to such zone; and, WHEREAS, the City Council desires to approve an incentive agreement for an approximately two (2) acre tract and a four (4) acre tract as denoted in Exhibits ~A" and "B". NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council of the City of Port Arthur does hereby find and make determinations as follows: z.pr13406 a) That the creation of the zone would promote an increase in economic development in the zone. b) That the creation of the zone benefits is for the purpose of increasing the public health, safety, and welfare of the persons in the municipality. c) That the creation of the zone satisfies the requirements of Section 312.202 of the Tax Code in that it will likely contribute to the retention or expansion of primary employment or attract major investment in the zone that would be a benefit to the property and that would contribute to the economic development of the City. Section 3. That the boundaries of the Port Arthur Neighborhood Empowerment Zone shall be as shown in Exhibits "A" and Section 4. That the City Manager is herein authorized to execute the incentive agreement with One Southwood Crossing, LP in substantially the same form as describe in Exhibit ~C". Section 5. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. z .pr13406 READ, ADOPTED AND APPROVED on this __ day of , A.D., 2006, at a Regular Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Mayor Councilmembers ' ; NOES: MAYOR ATTEST~ CITY SECRETARY APPROVED AS TO FORM: CITY ATTORNEY APPROVED FOR ADMINISTRATION: CITY MANAGER z.pr13406 EXHIBIT "A" TO THE RESOLUTION :-'E "2(:('5 ':5!2f"v' ] ~,>, [-,,F:,,,¥ I,IGVT 409721661i3 ldO. . . .~. ~_ '--' ',," '~T' - ~ F. 2 ......... 4.00 AC~S OF L.~ND P.a,RT OF BLOCK 7, ~NGE "~", PORT ARTItUR LAND COMPANY SUBDI¥ISION, CITY' OF PORT ARTHUR, JI~:FFE~ON COUNTY, TE~S BEING 4.00 acres of l~d cut of ~d a p~t of Lots 6 ~d 7, Block 7, R~ge "H", Po~ A~t~ Land Com]m ,~ * ' ,, t :; o~tr)d~ ~ ision, Cty of Port ~th~, recorded in Volume I, Page 22, Map Reco:rds, Jefferson County, Text; aid 4.00 acre tract being more fully described by metes and bounds as fivllows, to wit: COi~IMENCING at a '"",~ sleel rod s~et, capped, mid m~ked "SOU~EX" on the No~h right of way line of a de;licared road named State Highway 73; said 7z" steel rod being the ~ ......... Sc utheast,com~ ,.,f a tinct of/and conveyed to Perfect Hosp~tahty, recorded n File No. 2004010;'41, Official Public Records of Real Propeny, Jefferson County. Texas; TtIENCE Nc,nh 51 deg., 57 min.," .:4 sec,, East, on the North n~t of way line of said State H/~way 73, a distance of 60.08' to a point for comer being the POINT OF B~.GINNI'N(; ~d So~ati]wesl comer of the herein described tract; YHENCE No~ 41 deg, 0! ~mn., 11 sec., West, a distm~ce of 387.50' to a' point for co]mcr being the No~west corner of~e herein deschbed tract; THI~NCE No,ih 48 deg., 58 min. 49 sec.. East, a dist~ce of 465.39' to a point corner being on fl~e West lirie of .x ~aet of l~d conveyed to McCoy Co¢oration, recorded in Volme 2430, l>,.ige 77, Deed Records, Jefferson County, Texas and Film Code ] 00-fi6-~655, Offi,:ial. Public Records of Real Property, Jefferson Count)', Texas; said point fi): .omer b~.mg th~ No,east comer of the hereto described tract; TItENCE Rel}rence I. ine = South 35 deg., 52 min., 05 sec., East, on the West line of said McCoy Co¢oration tract, a dist~ce of 165.99' to a 5/8" steel rod found ibr ~ angle point on the West line of said McCoy Corporation tract md being ~ interior corner of the herein described tract; TItENCE No~ 54 de~,;., 07 ~nht, 55 sec., East, a dist~ce of 10.00' to a ~5" steel rod set, cappec., and m~ked "SOUTI{':~" on the West line of said McCoy Co~oration tract; THEN ~E South 35 d:g 53 mh]., 19 sec., East, on the West line of said McCoy Co~oration tract; a dis!artec of 209.3~' to a 5/8" steel rod fo~d for ~e Sou~west comer ofs~d McCoy Co~oration ~act on the No~ hght of way line of said State Highway 73; said 5/8" steel rod being the Sou&e~t comer of the herein described tract; THENCE South 46 deg: 15 rain., 15 sec., West, on the North right of way line of said Stat,: Higha'ay 73, a distance of.' 359.28' to a Texas Highway Depa~ment concrete monument found tbr a:t magic ;:.oint on the North n~t of way line of said State Highway 73 trod being m~ ~gle poh:t on ri~e South line of~e herein described tract; - .~ ,' ::~TI{ENCE South 5[ deg., 5 ;' r~lin., I4 sec., West, continuing on the North right of way line of sa/d State Highway 73, a distance of 82.96' to the POINT OF BEGINNING and comainin$ 4.00 acres of land, more or less. Note: Tl~is description is based on a previous survey made by Soutcx Surveyors, Inc., da~ed January 1,3, 2005 and does not represent a cm~ra~t field survey. EXHIBIT "B" TO THE RESOLUTION ,:~,:. 2~?.,3 ~' ,::,~ , :X [ v,.,~ ~i'Y ~G~,T 4Ci972166(~3 NO, 71571 F, 2.00 AC~S OF LAN~ PART OF BLOC~ ~ AND 8, ~NG~ "~,', PORT ARTHUR L~D COMPLY SUBDIVISION, CITY OF PORT ~THUR, JEF~RS ON COUNTY, TE~S BEING ZOO acres of 2and our of ~d a p~ of ~ts 7 ~d 8, Block 7, Range "H", ~d Lots I ~ 2, Block g, Range ~H"', Po~ ~ur L~d Comply Subdivision, C~ty otPoa ~m', recorded in Vc, l~e 1~ Pag~ 22, Map Records, 2efferson County, Texas; said 2.00 aor~ tract being more ~[]y described by metes ~d bounds as ~ollows; to wit: CO~MENCING at a ~A' steel rod ~et, capped, ~d m~k~d "SOUTEX' on th~ No~h ~ght c~ way line ota ,5~d~cated road n~ed State Highway 73; said V~" steel rod being th~ Southe~C co~cr of ~. tract of l~d conwyed to Perfect Hospitality, recorded in File No. 200~10741, Official Puhl~z Records of Real Prop~y~ ~fterson County, Texas; THENCE Noffh 51 d..g.:' 57 ::fin., 14 s~c., East, on the No~h right ot way lin~ ot said State Hi~.v.'ay 73, ~ dt~t~ncc~ ot la3.0~' to a Texas Highway Dep~men~ concrete monument f:~uud tot ~mgle point vn the No~ right o~way line vt said State H~ghway 73; THENCE No~h 46 deg., 15 min., 15 ~c., East, contin~ng on the ~o~ fight of way line oF s~d 8tare Highway 73~ a dist~ac~ ot 359.28' to a 5/8" s~l rod found ~or Sou~w~sc con~er ota ~cact ot I~d conv~y~d to McCoy Co~orafion, recorded in Volumc ~o0. Page ~, D~ed ~cord:~. 5eff~rson Co~y, Texas ~d F~lm Code 100-66-1655, Official Publ~v Records otReaI Propm~y, ~fferson County, T~xas; THENCE No~fl~ 35 deg., 53 mm., 19 scc., West, on the West line of said McCoy Co~orafio~ ~a~t; a distance o~209.34' ro a ~" steel rod teund for ~d angle point on the West ]i:m cf ~aid McCoy Co,pc, radon '~act; THENCE South 54 deg., ~7 rcm~ 55 sec., West; a distance o~ 10.00' to a 5/8" steel rod fo~d for ~ ~g]e poim on th~: ~est l~e otsaid McCoy Co~oration tract; THENCE ~eter~nce Line ~ b,o~h 35 dzg., 52 min., 05 sec., W~st, continuing on the West line otsa~d McCoy Corp,:rafion ~act, a distanc~ ot 535.83' to a 5/8" ~teel rod fom~d for the ]. OINT OF BE(,INNI~G; said 5/8" ~t~l rod b~ing the No~hwest co~er of said McCoy Co~c ration ~ac t ~d ff~e Southwest comer of the herein desc~bed ~act; THENCE No~ 40 deg.~ 28 m~., 27 sec., West, a dist~c~ ot a15.04' to a pom~ ~or zom~r c,n the South ~t otwa~, line of Dr~nage Dis~ict No. 7, 75' wide right of w~y, r~cord~d in Volume 1205, Page 545, l)~d Records, J~fferson County, Text; ~aid poin~ t~r comer being the Northwest corner ofth~ h~rein described tract; THENCL North 57 de[.~ 05 m~., 12 sec., East, on the South right otway lin= ot said 7? wid~ Dra~nag~ Discr~c..t No. '7 fight ~fway, a diet,ce o~ 2~3.59' to a 5/8" steel rod formal f~r ~he No~hwe~t comer ota ~act o~ I~d conveyed to Methodist Temple, recorded h~ Volume I546, Page 309, ~eed Records, J~fferson County, T~xas: sa~d steel rod being the No~lheas/co:tier of the herein described tract; THEI~'C.TE South 35 de~g., 52 min~ 12 sec. East, on the West line of said Methodist Temple tract, a ~istance: of 19~5 I5' to a 5/8" steel rod found on the centerlme ora 25' xvide Gc.lf State5 Ut/lily Company right of way, recorded in Volnme 524, Page 15. Deed -~ ~. ,:tv :.~ [7:,i,F~I'v I~IGV' 41)9/z o6~,~ NO. 7)7, ,. -l~ecor~ ~'efferson Co~m.ty, T,:xa.s; said 5/8" steel rod being ~ ~gle point on ~e line of ~e ~,,erein describe~ tree. t; T~ENCE Sou~ 35 deg., 50 mm, 42 see., East, continuing on ~e West ~ine of said Meaodist Temple ~a~l, a d~.l,~lce 0t ]56.44' to ~ 5/8" steel rod round for ~e No~he~t co.er of said McCoy Co~ora'tion tract ~d the Southeast comer of De h~ein described tract; THENCE .South 41 deg., 05 min., 56 sec., West, on the No~h line of said McCoy Co~orat~on 's 9 tract, a d~.'~ance c _1.5.43 to the POINT OF BEGINNING and containing 2.00 acres of l~d, more oy less. ~ote: This description is bas,ed on ~ previous s~ey made by Soutex Su~eyors, Inc., dated ]anu~7 ] 0, 2~05 and does not r~present a cu~ent field su~ey. Soua,vooa Crossing, L.P, I,S-OS-lO72A ~.~.[..~ , November' 9, 2005 ~~' EXHIBIT "C" TO THE RESOLUTION BETWEEN THE CITY OF PORT A~THUR AND ONE SOUTHWOOD CROSSINg, LP This Incentive Agreement (this ,,Agreement") is entered into as of February 8, 2006 (the "Effective Date") by and between the City of Port Arthur (the "City"), a Texas municipal corporation of the County of Jefferson and State of Texas, and One Southwood Crossing, LP. Article 1. ~eneral Provisions 1.01. This Agreement is authorized and governed by (i) Chapter 378 (Neighborhood Empowerment Zone) of the Texas Local Government Code, Sections 378.001 through 378.004 and {ii) Chapter 380 (Miscellaneous Provisions Relating to Municipal Planning and Development) of the Texas Local Government Code, Sections 380.001 through 380.003. 1.02. One Southwood Crossing, LP, owns or is negotiating a contract to purchase an approximate two (2) acre tract and four (4) acre tract (the ,'Property") in the City of Port Arthur, Jefferson County, Texas described on Exhibits ~A" and ~B" attached hereto and made a part hereof. The Property is situated within the City as a Neighborhood Empowerment Zone, pursuant to Resolution enacted on 2006. One Southwood Crossing, LP, proposes to construct an apartment complex, which the City has found will contribute to an increase in economic development in the Zone. 1.03. The Property is not part of an improvement project financed with tax increment bonds. 1.04. The Property is not owned or leased by any member of the Port Arthur City Council or any member of the City Planning and Zoning Commission. Article 2. Incentive 2.01. As an incentive for the construction of the apartment complex in the Zone, the City agrees to pay to One Southwood Crossing, LP, the lesser of $26,000 per year or .38 per cent of the increased taxable value on the property caused by the construction, for the time period commencing on January 1~t of the year that the apartment complex has received its certificate of occupancy and for ten years thereafter. 2.02. The total funds to be paid by the City shall not exceed $296,000. 2.03. The City will annually pay the amounts as delineated in Section 2.02 to One Southwood Crossing, LP, thereof during the z. southwood_incentive agreement Incentive Period within thirty (30) days after receipt of the taxes paid by One Southwood Crossing, LP. 2.04. The City will either pay or waive all City of Port Arthur building permit fees and tap fees to be charged to One Southwood Crossing, LP, for the apartment complex. Nevertheless, One southwood Crossing, LP, is responsible to pay for all construction costs, which includes, but is not limited to, the cost to tap into the City's water and sewer system and to pay for all meters and related equipment. The building permit fees and tap fees are estimated at approximately $30,000 based on the preliminary estimate by Southwood's engineer. 2.05. Notwithstanding anything to the contrary contained herein, (i) the completion of the apartment complex with the receipt of a certificate of occupancy pursuant to local, state, and federal regulations, (ii) the payment of all taxes and utility bills by One Southwood Crossing, LP to the City of Port Arthur, and (iii) the maintenance of the facility to local, state and federal requirements are essential obligations of One Southwood Crossing, LP, which they have agreed to perform. Article 3. Effect of Sale and Assignment 3.01. One Southwood Crossing, LP shall have the right, with City's consent, which will not be unreasonably withheld, to transfer or assign this Agreement to a financially solvent Affiliate or any other solvent business that will occupy the apartment complex for the purpose of operating an apartment complex. Article 4. Independent Contractor/Indemnity 4.01. In executing this Agreement and in performing their respective obligations hereunder, the City and One Southwood Crossing, LP are acting independently and not in any form of partnership or joint venture. The City assumes no responsibilities or liabilities to any third parties in connection with this Agreement. Article 5. Documentation 5.01. One Southwood Crossing, LP will provide documentation to the City as to the specification for the construction, the name of the contractors, the date that construction is commenced and the date construction is completed, and when they pay all local taxes. One Southwood Crossing, LP will not be paid any funds by the City if they are in arrears in any taxes, utility bills or other charges to the City, and the City can terminate this contract if One Southwood Crossing, LP fails to pay its taxes, utility bills or other charges, or if One Southwood Crossing, LP fails to maintain the property. z. sout hwood_incent ive agreement 2 Article 6. Notice 6.01. All notices required or permitted by this Agreement will be delivered either (a) by certified mail, postage prepaid, effective five days after mailing, or (b) by hand delivery or by a nationally recognized overnight courier, in either case effective upon delivery, in all cases addressed as follows (or to such other address as a party may specify to the other party by notice delivered in accordance with the terms hereof): TO ONE SOUTHWOOD CROSSING, LP= ONE SOUTHWOOD CROSSING, LP ATTN: K. T. Akbari 2901 Turtle Creek Drive Port Arthur, TX 77642 TO THE CITY= CITY OF PORT ARTHUR ATTN: City Manager 444 4th Street P. O. Box 1089 Port Arthur, TX 77641 Artfcle 7. Miscellaneous 7.01. This Agreement was approved by the City Council of the City of Port Arthur at its meeting by Resolution No. on ,2006. 7.02. If any section, subsection, paragraph, sentence, phrase, or word of this Agreement is held invalid for any reason, the balance of this Agreement will remain in effect and will be read as if the parties intended at all times not to include the invalid section, subsection, paragraph, sentence, phrase, or word. 7.03. This Agreement will be construed under the laws of the State of Texas. 7.04. This Agreement may be executed by the parties in multiple counterparts, all of which counterparts when taken together constituting one Agreement. Article 8. Termination Clauses 8.01. This Agreement can be terminated by the City of Port Arthur if One Southwood Crossing, LP does not own the property described in Exhibit 'A" by December 1, 2006, does not complete the construction by December 1, 2008, does not maintain the property pursuant to local, state, and federal regulations, does not pay the city its utility bills and taxes, and does not comply with any terms z. southwood_incentive agreement 3 of this agreement. Furthermore, the apartment complex and improvements shall be taxable. 8.02. If the events delineated in Section 8.01 occurs, the City of Port Arthur shall give One Southwood Crossing, LP ten (10) days written notice thereof. 8.03. The funds made available herein are subject as to the City's annual budget cycle. SIGNED and AGREED to on the day of , 2006. CITY OF PORT ARTHUR, a Texas Municipal Corporation (the "City") BY: Name: Stephen Fitzgibbons Title: City Manager SIGNED and AGREED to on the __ day of , 2006. ONE BOUTHWOOD CROSBIN~, LP Name: Title: President z. southwood_incentive agreement EXHIBIT "A" TO THE AGREEMENT PART OF BLOCK 7, RANGE "H", PORT ARTHUR LAND COMPANY SUBDIVISION, CITY OF PORT ARTHUR, JEFFERSON COUNTY, TEXAS BELN'G 4.00 acres of laird cut of and a part of Lots 6 and 7, Block 7, Range "H", Port Arthur La::~d Compm:~y SuhdNision, City of Port Arthur, recorded in Volume I, Page 22, Map Reco:rds, Jefferson County, Texas; said 4.00 acre tract being more fully described by metes and bounds as follows, to wit: COMMENCING at a ~"" ,2 sk'.el ,'od set, capped, and marked "SOUTEX" on the North right, of way tine of a dedicated road named State Highway 73; said Y2" steel rod being the Southeast comer .al a tract of/and conveyed to Perfect Hospitality, recorded in File No. 2004010,41, Off~c ~1 F ub h c Records of Real Property, Jefferson County. Tcx as: TJ~IENCE N:~th 51 "~ ~ 5" min.. '~ ~ tLb ..... ~, Se(:., East, on the North right of way line of said State Highway 73, a distance of 60.08' to a point for comer being the POINT OF BEGINNING and Somhwes~ comer o£the herein descr/bed tract; THENCE North 41. deg., 0'! min., 11 sec., West, a distance of 387.50' to a' point for corner being the No~,,vest corner oft.he herein descr/bed tract; TH]£NCE No,lb 48 deg., 58 min. 49 sec. East, a distance of 465.39' to a point corner being on tI:e West line of a tract of land conveyed ro McCoy Corporation, recorded in Volta-ne ~43C, P*.:ge 77, Deed Records, Jefferson County, Texas and Film Code ]00-fi6-L655, Official Public Records of Real Property, J'efferson Count}', Texas; said point for comer b~.mg the Northeast comer of the herein described tract; TItENCE Reference Line = ..Sooth, - 35 deg., 52 min., 05 sec., East, on the West line of said McCoy Corporation tract, a distance of 165.99' to a 5/8" steel rod found lbr an angle point on die West lu-~e of said McCoy Corporation tract and being an interior corner of the herein described tract; TItENCE No:ih 54 ' ,-, ~', cee:., ,.7 rnin, 55 sec., East, a distance of 10.00' to a k~" steel rod set, capped, and marked "SOUTL:.);i" on the West line of said McCoy Corporation tract; THEN ,~1].', South 35 deg., 52t min., 19 sec., East, on the West line of said McCoy Co£ooration tract; a dis!anco of 209.34' to a 5/8" steel rod found for the Southwest comer of said McCoy Corporation tract on the North right of way line of said State Highway 73; said 5,'8" steel rod being t ~e Southeast comer of the herein described tract; TItENCE South 46de-~,~: 15 rain. 15 $ec., West, on the North right of way line of said State Hxgh~x'ay 73, a distance o]!' 359~28' to a Texas Highway Department concrele monum,:nt found for a'~ m'~gle ;:.oint on the North right of wa3, line of said State Highway 73 a~d being m: angle poi]et on fiqe South line cf the herein described tract; ,~zc.~. 3.2!](~i =' ,:.,"s~ .... ~ "-z,.. :.'(::F :N~Y_ I,!(}N'T 4097216603 IlO. 7671-~'F. '~ ......... : ._. ,..i TRI,NCI!. South 51 deg., 5;' min., la sec., West, continuing on the No~h right of way line o~ smd State Highway 73, a dJst~ce ofg2.96' to ~e POtNW OF BEGINNING and containing 4.00 acres of land, moro or ]esS. Note: TNs description is based on a previous su~,ey m~e by Soutex Su~'eyors, Inc. da:ed January [ 0, 2003 ~nd does not represent a CUtTm~ field su~ey. Somhwood Crossing, L.P. EXHIBIT "B" TO THE AGREEMENT .... ' ......... :X ....... I~O. 7671 F. ~ 2.00 AC~S OF LAND PART OF BLOC~ 7 AND 8, ~NGE "H", PORT ARTHUR L~D COMPLY SUBDIVISION, CITY OF PORT ~THUR, ~F~RS ON COUNTY, TE~S BEING 2.00 acres of ~and out of ~d a p~ of ~ts 7 ~d 8, Block 7, R~ge "H", ~d Lots I ~d 2, Block g, Range "H", Pon ~ur L~d Comply Subdivision, C~ty of Pon ~m', recc, rded in Voh~e l, Page 22, Map Records, Jefferson County, Texas; said 2.00 acre tract being more ~flly described by metes ~d bounds as follows, to wit: CO~MENCING at a ~A" stee4 rod set, capped, ~d m~ked "SOUTEX" on the No~h right o~ way line of a ~ed~cated road named State Highway 73; said ~'~ steel rod being the Southern;: co~er or' a tract of hind conveyed to Perfect Hospital~ty, recorded in File No. 200a9107~1, Official Publ~z RecoMs of Real Property, ~efferson County, Texas; TtIENCE No~h 51 deg., 57 ~nin., 14 sec., East, on the No~h right of way Tine of said State ]?[i~.v.'ay 73, z distance of la3.04' to a Texas Highway Dep~ment concrete monument f:)und for tangle poir~t on the Nord~ right of way line of said State Highway 73; THENCE No~h 46 deg., 15 min., 15 sec., East, contin~ng on the No~ right of way line of' smd Stare Highway 73. a distance of 359.28' to a 5/8" steel rod found for the Southwest corner of a ~ract of lLncl conveyed to McCoy Co¢oration, recorded in Volume 2430, Page 77. Deed Re~cord:~. Jefferson Cowry, Texas and Film Code 100-66-1655, Official Public Records ofReaI Propmty, Jefferson County, Texas; THENCE Nmfl~ 35 deg., 53 min., 19 sec., West, on the West line of said McCoy Coq~oration ~act; a distance 05209.34' to a V~" steel rod found for and angle point on the West line of said McCoy Co~p,:,ration ~act; THENCE South 54 deg., 07 t-~.i.n., 55 sec., West, a distance of 10.00' to a 5/8" steel red fe~d for an amgle poim on the West line of said McCoy Co¢oration tract; THENCE Reference Line ~ No~q~ 35 deg., 52 min., 05 sec., West, continuing on the West line of said McCoy Corporation ~act, a distance of 535.83' to a 5/8" steel rod found for the POINT OF BEGINNIrqG; said 5/8" steel rod being the No~hwest comer of said McCoy Co¢oration ~act and the Southwest comer of the herein deschb~ ~act; THENCE NoT& 40 dog: 28 m~n., 27 s~., West, a dist~ce of 415.04' to a point for comer on the South n~:t of way line of DrMnage Dis~ict No. 7, 75' wide right of way, recorded in Volume 12()5, Page 545, Deed Records, Jefferson County, Text; said point for comer being the N~z2:hwest oorner of the herein described tract; THENCE North 57 de!;: 05 rain., 12 sec., East, on the South right of way line of said 75' wicl, Drainage District No. '7 fight of way, a dist~ce of 243.59' to a 5/8" steel rod found for the No~hwest comer of ~ tract of l~d conveyed to Methodist Iemple, recorded in Volume I546, Page 309, Deed Records, Jefferson County, Texas; said 5/8" steel roc being the No~lheast co::oer of the herein described tract; THENCE South 35 deg., 52 mio, 12 sec., East, on tee West line of said Metl~odist Temple tract, a distance of 19~5 I5' to a 5/8" steel rod found on the centerline of a 25' wide Golf Stateg Utility Company hg~t of way, recorded ~n Volume 524, Page 15. Deed Reeorrts, Jefferson Cmmty, Texas; said 5/8" steel rod being ~ ~gle point on ~e E~t line of kerein de e bod tract; T~ENCE Sou~ 35 deg,, 50 mm, 42 sec., East, continuing on ~e West line of said Meflm, dist Temple ~act, a dist:mce of 156.44' to a 5/8" steel rod found for ~e Nonhe~t co,er of said McCoy Co¢oration ~act ~d the Southeast comer of ~e hmein described tract; TItENCE South 41 deg., 05 min., 56 sec., West, on the No~h line of said McCoy Cooperation tract, a distance of 2[5.43' to the POINT OF BEGINNING and containing 2.00 acres of l~d, more or less. Note: This description is based on a previous s~ey made by Soutex Su~eyors, Inc., dated Janumy 10, 2005 .~n:t does not represent a cunent field South~ood Crossiag, L,P. LS-05-1072A November 9, 2005