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RE 2002-12-10.1RESOLUTION NO. A RESOLUTION OF THE CITY OF TERMS AND CONDITIONS OF A TAX BETWEEN THE CITY OF COPPELL, PARTNERSHIP AND THE CONTAINER 22060~~ 3730083 COPPELL, TEXAS, APPROVING THE ABATEMENT AGREEMENT BY AND TEXAS, TEXAS DUGAN LIMITED STORE, INC.; AUTHORIZING ITS EXECUTION BY THE MAYOR; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Council has been presented a proposed Tax Abatement Agreement by and between the City of Coppell, Texas, Texas Dugan Limited Partnership and The Container Store, Inc., a copy of which is attached hereto and incorporated herein by reference; and WHEREAS, upon full review and consideration of the Agreement, and all matters related thereto, the City Council is of the opinion and finds that the terms and conditions thereof should be approved, and that the Mayor should be authorized to execute the Agreement on behalf of the City of Coppell, Texas; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS, THAT: SECTION 1. The Agreement attached hereto having been reviewed by the City Council of the City of Coppell, Texas, and found to be acceptable and in the best interest of the City and its citizens, be, and the same is hereby, in all things approved, and the Mayor is hereby authorized to execute the Agreement on behalf of the City of Coppell, Texas. SECTION 2. The City Council finds that the improvements proposed to be built upon the Premises described in the Agreement will enhance the economic vitality of the community through a combination of new capital investment, increased sales tax revenues, and the creation of additional job opportunities. SECTION 3. The tax abatement to be granted by the Agreement will not include inventory, and supplies. SECTION 4. The improvements proposed for the Premises will accomplish the tax abatement guidelines of the City of Coppell, Texas. 35 037q5 51800 SECTION 5. The City Manager delivered to the presiding officer of the governing body of each taxing trait in which the property subject to the Agreement is located, a written notice that the City of Coppell, Texas, intends to enter into the Agreement. The notice given by the City Manager included a copy of the Agreement approved by this Resolution. SECTION 6. This Resolution and the Tax Abatement Agreement are hereby approved by the affirmative vote of the majority of the members of the City Council of the City of Coppell, Texas, at a regularly scheduled meeting of the City Council. SECTION 7. This Resolution shall become effective immediately from and after its passage. DULY RESOLVED AND ADOPTED by the City Council of the City of Coppell, Texas, on this the/0 ~day of~,, 2002. CITY&jz,./.~p~.~t~ _OF COP~ELL, _~J C~g}-i~E~)~'-AN, MAYOR '- ATTEST: EIBBIic' BA~CITY SECRETARY (PGS/ttl 11/05/02) 2 oo 035 037 6 STATE OF TEXAS § COUNTY OF DALLAS § TAX ABATEMENT AGREEMENT This Tax Abatement Agreement (the "Agreement") is entered into by and among the City of Coppell, Texas (the "City"), Texas Dugan Limited Partnership ("Owner"), and The Container Store, Inc. ("Lessee"), acting by and through their authorized representatives. WITNESSETH: WHEREAS, the City Council of the City of Coppell, Texas, (the "City"), passed an Ordinance (the "Ordinance") establishing Tax Abatement Reinvestment Zone No. 40 (the "Zone"), for commercial/industrial tax abatement, as authorized by the Property Redevelopment and Tax Abatement Act, Chapter 312 of the Texas Tax Code, as amended (the "Tax Code"); and WHEREAS, the City has adopted guidelines for tax abatement (the "Tax Abatement Guidelines"); and WHEREAS, the Tax Abatement Guidelines contain appropriate guidelines and criteria governing tax abatement agreements to be entered into by the City as contemplated by the Tax Code; and WHEREAS, the City has adopted a resolution stating that it elects to be eligible to participate in tax abatement; and WHEREAS, in order to maintain and enhance the commercial and industrial economic and employment base of the Coppell area, it is in the best interests of the taxpayers for the City to enter into this Agreement in accordance with said Ordinance, the Tax Abatement Guidelines and the Tax Code; and WHE~AS, Owner owns the real property described in Exhibit "A" attached hereto ("Land") and intends to construct certain Improvements (hereinafter defined) on the Land and to lease the Improvements to the Lessee; and WHEREAS, Lessee has or intends to either purchase or lease the Improvements; and WHEREAS, Owner's and Lessee's development efforts described herein will create permanent new jobs in the City; and WHEREAS, the City Council finds that the contemplated use of the Premises (hereinafter defined), the contemplated Improvements thereto in the amount set forth in this Agreement, and the other terms hereof are consistent with encouraging development of the Zone in accordance with the purposes for its creation and/or in compliance with the Tax Abatement Guidelines, the Ordinance adopted by the City, the Tax Code and all other applicable laws; and CONTAINER STORE TAX ABATEMENT AGREEMENT - Page 1 35 037 7 49968 WHEREAS, the City Council finds that the Improvements sought are feasible and practicable and would be of benefit to the Premises to be included in the Zone and to the City after expiration of this Agreement; and WHEREAS, a copy of this Agreement has been furnished, in the manner prescribed by the Tax Code, to the presiding officers of the governing bodies of each of the taxing units in which the Premises is located; and WHEREAS, the City desires to enter into an agreement with Owner and the Lessee for the abatement of taxes pursuant to Chapter 312 of the Tax Code as amended; NOW, THEREFORE, in consideration of the mutual benefits and promises contained herein and for good and other valuable consideration, the adequacy and receipt of which is hereby acknowledged, including the expansion of primary employment, the attraction of major investment in the Zone, which contributes to the economic development of Coppell and the enhancement of the tax base in the City, the parties agree as follows: GENERAL PROVISIONS 1. Owner, is the owner of the Land, which Land is located within the city limits of the City and within the Zone. Owner intends to construct the Improvements on the Land and to lease the same to Lessee. The Lessee has or intends to lease or purchase the Improvements from Owner and locate Tangible Personal Property (hereinafter defined) on the Premises. 2. The Premises are not in an improvement project financed by tax increment bonds. 3. This Agreement is entered into subject to the rights of the holders of outstanding bonds of the City. 4. The Premises are not owned or leased by any member of the Coppell City Council or any member of the Coppell Planning and Zoning Commission, or any member of the governing body of any taxing units joining in or adopting this Agreement. TAX ABATEMENT AUTHORIZED 5. This Agreement is authorized by the Tax Code and in accordance with the City Tax Abatement Guidelines, and approved by resolution of the City Council. 6. Subject to the terms and conditions of this Agreement, and provided the Taxable Value (hereinafter defined) for the Improvements, excluding the Land, is at least Five Million Five Hundred Thousand Dollars ($5,500,000) as of January 1 of the First Year of Abatement (hereinafter defined) and as of January 1 of each year thereafter that this Agreement is in effect, the City hereby grants Owner an abatement of seventy-five percent (75%) of the Taxable Value of the Improvements for a period of five (5) consecutive years and grants the Lessee an abatement of seventy-five percent (75%) of the Taxable Value of the Tangible Personal Property for a period of five (5) consecutive years. The actual percentage of Taxable Value of the Improvements subject to CONTAINER STORE TAX ABATEMENT AGREEMENT - Page 2 2oo30 35 037L 8 49968 abatement for each year this Agreement is in effect will apply only to the portion of the Taxable Value of the Improvements that exceeds the Base Year Taxable Value. The actual percentage of Taxable Value of the Tangible Personal Property subject to abatement will only apply to the Tangible Personal Property added to the Premises after this Agreement is executed. 7. The period of tax abatement herein authorized shall be for a period of five (5) years. 8. During the period of tax abatement herein authorized, Owner and Lessee shall be subject to all taxation not abated, including but not limited to, sales tax and ad valorem taxation on land, inventory and supplies. DEFINITIONS 9. Wherever used in this Agreement, the following terms shall have the meanings ascribed to them: A. "Base Year Taxable Value" shall mean the Taxable Value for the Land for the year in which the Tax Abatement Agreement is executed (2002). B. "Event of Bankruptcy or Insolvency" shall mean the dissolution or termination of a party's existence as a going business, insolvency, appointment of receiver for any part of a party's property and such appointment is not terminated within ninety (90) days after such appointment is initially made, any general assignment for the benefit of creditors, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against such party, and such proceeding is not dismissed within ninety (90) days after the filing thereof. C. "First Year of Abatement" shall mean January 1, 2005, unless otherwise agreed by the parties. D. "Force Majeure" shall mean any contingency or cause beyond the reasonable control of a party including, without limitation, acts of God or the public enemy, war, riot, civil commotion, insurrection, adverse weather, government or de facto governmental action (unless caused by acts or omissions of such party), fires, explosions or floods, strikes, slowdowns or work stoppages. E. "Improvements" shall mean the contemplated improvements to be constructed on the Land and as further described herein, and any additions or expansions constructed on the Land during the term of this Agreement. F. "Premises" shall collectively mean the Land and Improvements but excluding Tangible Personal Property. G. 'q'axable Value" means the appraised value as certified by the Appraisal District as of January 1 of a given year. CONTAINER STORE TAX ABATEMENT AGREEMENT - Page 3 20030 3 5 0 3 7 Q 9 49968 H. "Land" means the real property described in Exhibit A attached hereto and incorporated herein for all purposes. I. "Tangible Personal Property" shall mean tangible personal property, equipment and fixtures owned by or leased by Lessee other than inventory or supplies added to the Premises subsequent to the execution of this Agreement. IMPROVEMENTS 10. Owner owns the Land and intends to construct or caused to be constructed thereon a "warehouse" office building containing approximately 1.1 million square feet of space (and other ancillary facilities such as reasonably required parking and landscaping more fully described in the submittals filed by Owner with the City from time to time in order to obtain a building permit) ("Improvements"). Lessee intends to lease or purchase, and occupy the Improvements and locate Tangible Personal Property on the Premises. Nothing in this Agreement shall obligate Owner to construct the Improvements on the Land, but said action is a condition precedent to Owner's tax abatement pursuant to this Agreement. Nothing in this Agreement shall obligate Lessee to occupy the Improvements and locate Tangible Personal Property on the Premises but said actions are a condition precedent to Lessee's tax abatement pursuant to this Agreement. CONSTRUCTION OF IMPROVEMENTS 11. As a condition precedent to the initiation of Owner's tax abatement pursuant to this Agreement, Owner will diligently and faithfully, in good and workmanlike manner, pursue the completion of the contemplated Improvements on or before December 31, 2004, as good and valuable consideration for this Agreement, and all construction of the Improvements will be in accordance with all applicable state and local laws, codes, and regulations, (or valid waiver thereof); provided, that Owner shall have such additional time to complete and maintain the Improvements as may be required in the event of "Force Majeure," if Owner is diligently and faithfully pursuing completion of the Improvements. 12. Owner and Lessee agree to maintain the Improvements during the term of this Agreement in accordance with all applicable state and local laws, codes, and regulations, and in accordance with the lease between Owner and Lessee. Owner and Lessee agree that the Improvements shall be used only as a "warehouse" and office building and for storage, light assembly, sales and distribution for a period of five (5) years commencing on the date a certificate of occupancy is issued for the Lessee's occupancy of the Improvements. 13. The City, its agents and employees shall have the right of access to the Premises during construction to inspect the Improvements at reasonable times and with reasonable notice to Owner and Lessee, and in accordance with Owner's and Lessee's, visitor access and security policies, in order to insure that the construction of the Improvements are in accordance with this Agreement and all applicable state and local laws and regulations (or valid waiver thereof). CONTAINER STORE TAX ABATEMENT AGREEMENT - Page ~00] 0 3 5 0 3 7 5 0 49968 GENERAL REQUIREMENTS 14. Construction plans for the Improvements constructed on the Land will be filed with the City, which shall be deemed to be incorporated by reference herein and made a part hereof for all purposes. 15. After completion of the Improvements, Owner shall certify in writing to the City the construction cost of the Improvements. Owner and Lessee shall each annually certify to the City that it is in compliance with each term of the Agreement. 16. The Land and the Improvements constructed thereon at all times shall be used in the manner (i) that is consistent with the City's Comprehensive Zoning Ordinance, as amended, and (ii) that, during the period taxes are abated hereunder, is consistent with the general purposes of encouraging development or redevelopment within the Zone. 17. Owner agrees to provide to the Lessee and tenants of the Improvements, the benefit of the abatement for the Improvements granted herein. Owner shall, upon written request, provide the City with satisfactory evidence that the benefits of the abatement for the Improvements have been provided to the Lessee and/or the tenants of the Improvements. 18. Owner agrees to initially lease at least 640,000 square feet of space in the Improvements to Lessee for a period of at least five (5) consecutive years beginning no later than the First Year of Abatement; and to lease at least an additional 120,000 square feet of space in the Improvements to Lessee on or before the 31st month of the lease term under Owner's lease of the Improvements. Lessee agrees to purchase and/or lease and continuously occupy at least 640,000 square feet of space in the Improvements for a period of at least five (5) consecutive years beginning no later than the First Year of Abatement; and to lease and continuously occupy at least an additional 120,000 square feet of space in the Improvements on or before the 31st month of the lease term under Lessee's lease of the Improvements. DEFAULT: RECAPTURE OF TAX REVENUE 19. In the event: (i) Owner fails to complete the Improvements in accordance with this Agreement or in accordance with applicable State or local laws, codes or regulations; (ii) Owner or Lessee has delinquent ad valorem or sales taxes owed to the City (provided such party retains its right to timely and properly protest such taxes or assessment); (iii) Owner or Lessee has an "Event of Bankruptcy or Insolvency"; or (iv) Owner or Lessee breaches any of the terms and conditions of this Agreement, then such party (the "Defaulting Party"), after the expiration of the notice and cure periods described below, shall be in default of this Agreement. As liquidated damages in the event of such default, the "Defaulting Party" shall, within thirty (30) days after demand, pay to the City all taxes which otherwise would have been paid by the Defaulting Party to the City without benefit of a tax abatement for the Defaulting Party's property the subject of this Agreement, with interest at the statutory rate for delinquent taxes as determined by Section 33.01 of the Tax Code as amended but without penalty. The parties acknowledge that actual damages in the event of default termination would be speculative and difficult to determine. The parties further agree that any abated tax, including interest as a result of this Agreement, shall be recoverable against the Defaulting Party, its CONTAINER STORE TAX ABATEMENT AGREEMENT-Page 5 Z00] 0 3 5 0 3 7 5 I 49968 successors and assigns and shall constitute a tax lien against the Defaulting Party's property, the subject of this Agreement, and shall become due, owing and shall be paid to the City within thirty (30) days after termination. 20. Upon breach by Owner and/or Lessee of any obligations under this Agreement, the City shall notify the "Defaulting Party" and the non-defaulting party in writing, who shall have thirty (30) days from receipt of the notice in which to cure any such default. The non-defaulting party shall have the right, but not the obligation, to cure the default of the "Defaulting Party." If the default cannot reasonably be cured within a thirty (30) day period, and the "Defaulting Party", or the non-defaulting party, has diligently pursued such remedies as shall be reasonably necessary to cure such default, then the City may extend the period in which the default must be cured. 21. If the "Defaulting Party" or the non-defaulting party fails to cure the default within the time provided as specified above or, as such time period may be extended, then the City at its sole option shall have the right to terminate this Agreement, with respect to the Defaulting Party, by written notice to the Defaulting Party. For illustration purposes only, in the event that this Agreement is terminated with respect to Lessee such that Lessee is no longer entitled to tax abatement for its Tangible Personal Property under this Agreement, this Agreement shall remain in full force and effect for the Owner and the tax abatement of the Improvements shall not be affected thereby. 22. Upon termination of this Agreement by City with respect to a Defaulting Party, all tax abated as a result of this Agreement, with respect to the Defaulting Party and such Defaulting Party's property the subject of this Agreement, shall become a debt to the City as liquidated damages, and shall become due and payable not later than thirty (30) days after a notice of termination is made. The City shall have all remedies for the collection of the abated tax provided generally in the Tax Code for the collection of delinquent property tax. The City at its sole discretion has the option to provide a repayment schedule. The computation of the abated tax for the purposes of the Agreement shall be based upon the full Taxable Value of the Improvements or the Tangible Personal Property, as the case may be, without tax abatement for the years in which tax abatement hereunder was received by the Defaulting Party with respect to the Improvements or the Tangible Personal Property, as the case may be, as determined by the Appraisal District, multiplied by the tax rate of the years in question, as calculated by the City Tax Assessor-Collector. The liquidated damages shall incur penalties as provided for delinquent taxes and shall commence to accrue after expiration of the thirty (30) day payment period. The City's sole remedy against a "Defaulting Party" shall be the recovery of the liquidated damages and the enforcement of the tax lien against the "Defaulting Party's" property the subject of this Agreement. ANNUAL APPLICATION FOR TAX EXEMPTION 23. It shall be the responsibility of the Owner and Lessee, pursuant to the Tax Code, to file an annual exemption application form with the Chief Appraiser for each Appraisal District in which the eligible taxable property has situs. A copy of the exemption application shall be submitted to the City upon request. CONTAINER STORE TAX ABATEMENT AGREEMENT - Page 49968 SUCCESSORS AND ASSIGNS 24. This Agreement shall be binding on and inure to the benefit of the parties to it and their respective heirs, executors, administrators, legal representatives, successors, and permitted assigns. This Agreement may not be assigned without the consent of the City Manager, except that this Agreement may be assigned without the consent of the City Manager upon ten (10) days prior notice to City: (i) by Owner to Duke Realty Limited Partnership in connection with the sale and transfer of the Land and Improvements to Duke Realty Limited Partnership; (ii) by Lessee to any related corporation or other legal entity which controls Lessee, is controlled by Lessee or is under common control with Lessee, or to a successor entity into which or with which Lessee is merged or consolidated or which acquires substantially all of Lessee's assets, provided that such successor entity of Owner or Lessee, as the case may be, assumes the obligations of such party respectively. For purposes of this section "control" shall mean ownership of not less than fifty percent (50%) of all voting stock or legal and equitable interest in such corporation or entity. NOTICE 25. All notices required by this Agreement shall be addressed to the following, or other such other party or address as either party designates in writing, by certified mail, postage prepaid, or by hand or overnight delivery: If intended for Owner, to: Attn: Jeff Turner Texas Dugan Limited Partnership 5495 Beltline Road, Suite 360 Dallas, Texas 75240 With copy to: Corporate Attorney (Texas Market) Duke Realty Corporation 3950 Shackleford Road Suite 300 Duluth, GA 30096 If intended for Lessee, to: Attn: Chief Financial Officer The Container Store, Inc. 2000 Valwood Parkway Dallas, Texas 75234-8800 CONTAINER STORE TAX ABATEMENT AGREEMENT - Page 7 Z~3 0 3 5 0 3 7 5 3 49968 With copies to: Attn: Vice President of Real Estate Michael L. Robertson The Container Store, Inc. Smith, Robertson, Elliott & Glen, L.L.P. 2000 Valwood Parkway 1717 West Sixth Street, Suite 300 Dallas, Texas 75234-8800 Austin, Texas 78703 If intended for City, to: Attn: City Manager City of Coppell, Texas P. O. Box 478 Coppell, Texas 75019 With copy to.' Peter G. Smith Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Lincoln Plaza 500 N. Akard Dallas, Texas 75201 CITY COUNCIL AUTHORIZATION 26. This Agreement was authorized by resolution of the City Council approved by its Council meeting authorizing the Mayor to execute this Agreement on behalf of the City. SEVERABILITY 27. In the event any section, subsection, paragraph, sentence, phrase or word herein is held invalid, illegal or unconstitutional, the balance of this Agreement shall stand, shall be enforceable and shall be read as if the parties intended at all times to delete said invalid section, subsection, paragraph, sentence, phrase or word. APPLICABLE LAW 28. This Agreement shall be construed under the laws of the State of Texas. Venue for any action under this Agreement shall be the State District Court of Dallas County, Texas. This Agreement is performable in Dallas County, Texas. COUNTERPARTS 29. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and constitute one and the same instrument. co,,rr^~i,~,z s~ro~ ~r,v< ,u,^~,,,t, zm ^o~,z~,,,'r- ,'a,~ 8ZOO3 0 3 5 0 3 7 5 ~ ~ ENTIRE AGREEMENT 30. This Agreement embodies the complete agreement of the parties hereto, superseding all oral or written previous and contemporary agreements between the parties and relating to the matters in this Agreement, and except as otherwise provided herein cannot be modified without written agreement of the parties to be attached to and made a part of this Agreement. CONVENANTS RUNNING WITH THE PREMISES 31. The provisions of this Agreement are hereby declared covenants running with the Premises and are fully binding on all successors, heirs, and assigns of Owner who acquire any right, title, or interest in or to the Premises, or any part thereof. Any person who acquires any right, title, or interest in or to the Premises, or any part hereof, thereby agrees and covenants to abide by and fully perform the provisions of this Agreement with respect to the right, title or interest in such Premises. RECORDATION OF AGREEMENT 32. A certified copy of this Agreement shall be recorded in the Deed Records of Dallas County, Texas. INCORPORATION OF RECITALS 33. The determinations recited and declared in the preambles to this Agreement are hereby incorporated herein as part of this Agreement. EXHIBITS 34. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 35. This Agreement and the Tax Abatement provided herein is conditioned on Owner entering into a lease with Lessee for the Improvements, and Lessee entering into a lease with Owner for the occupancy of the Improvements for a period of at least five (5) years beginning no later than the First Year of Abatement. EXECUTED in duplicate originals this the ]~ay o~2~..~ 2002. By: CANDY STUN, ~MAYOR CONTAINER STORE TAX ABATEMENT AGREEMENT - Pagc 9 2oo3035 03755 49968 ATTEST: By: LIBBY BALL, CITY SECRETARY AGREED~ORM: By: ~RNEY EXECUTED in duplicate originals this the /~day of~(.~ 2002. TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership By: Dugan General Partnership, LLC, a Delaware limited liability company, its general partner By: Dugan Texas, LLC, a Delaware limited liability company, its sole member By: Duke Realty Limited Partnership, an Indiana limited partnership, its Manager By: Duke Realty Corporation, an Indiana corporation, its sole general partner By: EXECUTED in duplicate originals this the /~3~'day ofP~ b~, 2002. THE CONTAINER STORE, INC. Name'. Title: CONTAINER STORE TAX ABATEMENT AGREEMENT-Page 10Z00]0 3 5 0 3 7 5 6 ~0~ CITY'S ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF DALLAS § This instrument was acknowledged before me on the ['7 -Y~day o~.~?_~ 2002, by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas municipality, on behalf of said municipality. My Comrmsslon Expires: .~ b-//-oz E.-.: ,,,,,,o:. t1111111~%%%~ OWNER'S ACKNOWLEDGMENT STATE OF COUNTY This instrument was acknowledged before me on the ~'/.?" day of 2002, by Jeff Turner being the Senior Vice President, Texas of Duke Realty Corporation, an Indiana corporation on behalf of Texas Dugan Limited Partnership. My Commission Expires: ' '-Q~qotary PtJblic, State of~__ ,..~:~:.:.£~,~.... AMY MCCANDLESS ~ ~.~] State of Texas CONTAINER STORE TAX: ABATEMENT AGRE£MENT - Page 11 ~.~[~3 0 3 5 0 3 '7 5 7 49968 STATE OF \'-"-~c~ COUNTY OF~~ LESSEE'S ACKNOWLEDGMENT This instrument was 2002, by Store, Inc. on behalf of said corporation. acknowledged before me on the X."~,~'~ day of ~, being the -,,t'_~r_~.a°c',~.*..~-,~- , of The Container My Commission Expires: ~l~tary Public, State of~.~..~.?.~ CONTAINER STORE TAX ABATEMENT AGREEMENT - Page 12 ~{I[B O 3 5 O 3 7 5 B 49968 PROPOSED LOT1R, BLOCK A DUKE-FREEPORT ADDITION Jo~ VestSu~ey, Abs~actNo. 1508, C~yofCoppe~ Da~s Coun~rexas DESCRIPTION, of a 52.566 acre tract of land situated in the John Vest Survey, Abstract No. 1508, County of Dallas, State of Texas; said tract being a portion of that same tract of land as conveyed in Warranty Deed to Texas Dugan Limited Partnership, recorded in Volume 2000251, Page 2675 of the Deed Records of Dallas County, Texas; said tract being a portion of Lot 1, Block A, Duke-Freeport Addition, an addition to the City of Coppell, Texas, recorded in Volume 2001065, Page 00037, of the Deed Records of Dallas County, Texas; said 52.566 acre tract being more particularly described as follows; BEGINNING, at a point in the intersection of the south right-of-way line of Ruby Road (a variable width right- of-way) and the west right-of-way line of Coppell Road (a 60 foot right-of-way), said point being the northeast corner of said Lot 1; THENCE, South 00 degrees, 27 minutes, 49 seconds West, departing said south line of Ruby Road and along said west line of said Coppell Road and the east line of said Lot 1, a distance of 962.81 feet to a 1/2- inch iron rod with "Pacheco Koch" cap found for corner; said point also being the northeast corner of Lot 4, Block A, Duke-Freeport Addition, an addition to the City of Coppell, Texas, recorded in Volume 2001134, Page 00074, of the Deed Records of Dallas County, Texas; THENCE, North 89 degrees, 29 minutes, 45 seconds West, along the north line of said Lot 4, passing at a distance of 1464.35 feet a 1/2 iron rod with "Pacheco Koch" cap found for the northwest corner of said Lot 4; said point also being the northeast corner of a Drainage Easement as recorded by instrument in Volume 2001098, Page 02943, of the Deed Records of Dallas County, Texas; continuing along the north line of said drainage easement in all a distance of 1769.89 feet to a 1/2" iron rod with "Pacheco Koch" cap found; said point being the beginning of a curve to the left whose center bears South 00 degrees, 30 minutes, 15 seconds West, at a distance of 65.50 feet from said point; THENCE, southwesterly, along said north line of Drainage Easement and curve to the left, through a central angle of 59 degrees, t4 minutes, 33 seconds, an arc distance of 67.73 feet, on a chord bearing and distance of South 60 degrees, 52 minutes, 59 seconds West, 64.75 feet to a 1/2 inch iron rod with "Pacheco Koch" cap set for corner at the end of said curve; THENCE, South 31 degrees, 15 minutes, 42 seconds West, along said north line of Drainage Easement, a distance of 104.69 feet to a 1/2 inch iron rod with "Pacheco Koch" cap set; said point being in the east line of Freeport Parkway (a 110 foot Right of Way), said point being said point being the beginning of a curve to the right whose center bears, North 31 Degrees, 15 Minutes, 42 Seconds East, a distance of 1301.12 feet from said point; THENCE, northerly along the said east line of Freeport Parkway the following four courses & distances; Northerly along the said curve to the right, through a central angle of 48 degrees, 16 minutes, 14 seconds, an arc distance of 1096.17 feet on the chord bearing and distance of North 34 degrees, 36 minutes, 11 seconds West, 1064.03 feet to a 1/2-inch iron rod with "Pacheco Koch" cap set at the end of the said curve; said point being the beginning of compound a curve to the right whose center bears, North 79 degrees, 31 minutes, 56 seconds East, a distance of 240.00 feet from said point; Northerly along the said compound curve to the right, through a central angle of 15 degrees, 14 minutes, 29 seconds, an arc distance of 63.84 feet on the chord bearing and distance of North 02 degrees, 50 minutes, 50 seconds West, 63.65 feet to a 1/2-inch iron rod with "Pacheco Koch" cap set at the end of the said curve; said point being the beginning of a reverse curve to the left whose center bears, North 85 degrees, 13 minutes, 35 seconds West, a distance of 260.00 feet from said point; Northerly along the said reverse curve to the left, through a central angle of 10 degrees, 22 minutes, 26 seconds, an arc distance of 47.08 feet on the chord bearing and distance of North 00 degrees, 24 minutes, 48 seconds West, 47.01 feet to a 1/2-inch iron rod with "Pacheco Koch" cap set at the end of E~IBIT "A" z0030 35 03759 Proposed Lot 1R, Block A Duke-Freeport Addition Page 2 the said curve; said point being the beginning of a reverse curve to the right whose center bears, North 84 degrees, 23 minutes, 58 seconds East, a distance of 1289.12 feet from said point; Northerly along the said cun/e to the right, through a central angle of 04 degrees, 43 minutes, 14 seconds, an arc distance of 106.21 feet on the chord bearing and distance of North 03 degrees, 14 minutes, 25 seconds West, 106.18 feet to a 1/2-inch iron rod with "Pacheco Koch" cap set at the end of said curve; said point being intersection of the said south line of Ruby Road and the east right-of-way line of Freeport Parkway; THENCE, easterly departing said east line of Freeport Parkway and along the proposed south line of Ruby Road the following three courses & distances; South 89 degrees, 32 minutes, 47 seconds East a distance of 128.45 feet to a 1/2-inch iron rod with "Pacheco Koch'" cep set for angled point; South 89 degrees, 06 Minutes, 00 Seconds East, a distance of 1070.09 feet to a 1/2-inch iron rod with "Pacheco Koch" cap set at an angle point; South 89 degrees, 43 minutes, 11 seconds East, a distance of 1303.87 feet to the POINT OF BEGINNING; CONTAINING, 2,289,761 square feet or 52.566 acre of land, more or less. James A. Koch, Jr. Date R.P.L.S. No. 4688 Pacheco Koch Consulting Engineers, Inc. 8350 N. Central Expwy, # 1000, Dallas TX 75206 (972.) 235-3031 EXHIBIT "A' 03760 igL O ~scrlbed real properi~ because of color or rsc® is invalid ami uneeforceeble under federal lawo . STATE OF TEXAS COUNTY OF DA[L~ I hereby croUPy this instrument was filed on the date end time stamped hereon b~ me and was duly recorded in the volume an4 page of the nemmt records of Dallas County, T~r~a as hereon by mo, FEB 20 ?_003 CObNTY CLERK. O~.lla~ CounN,