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Freeport NIP(7.0)-CN021217STATE OF TEXAS § COUNTY OF DALLAS § ECONOMIC DEVELOPMENT INCENTIVE AGREEMENT This Economic Development Incentive Agreement ("Agreement") is made by and between the City of Coppell, Texas (the "City"), and Texas Dugan Limited Partnership ("Company"), acting by and through their respective authorized officers.- WITNESSETH: WHEREAS, Company intends to construct and lease certain improvements to The Container Store (hereinafter defined as the "Improvements") on the real property located in Coppell, Texas and being more particularly described in Exhibit "A" (the "Land"). WHEREAS, the Company has advised the City that a contributing factor that would induce the Company to construct and lease the Improvements to The Container Store would be an agreement by the City to provide an economic development grant to the Company to defray a portion of the cost of such construction; and WHEREAS, the City has adopted programs for promoting economic development; and WHEREAS, the City is authorized by TEX. LOC. GOV'T CODE §380.001 to provide economic development grants to promote local economic development and to stimulate business and commercial activity in the City; and WHEREAS, the City has determined that making an economic development grant to the Company in accordance with this Agreement will further the objectives of the City, will benefit the City and the City's inhabitants and will promote local economic development and stimulate business and commercial activity in the City; NOW THEREFORE, in consideration of the foregoing, and on the terms and conditions hereinafter set forth, the parties agree as follows: ARTICLE I TERM 1. This Agreement shall be effective on the date of execution hereof by the City and the Company ("Effective Date") and shall continue until the parties have fully satisfied their respective obligation hereunder, unless sooner terminated as provided herein. ARTICLE H DEFINITIONS 2. Wherever used in this Agreoment, the following terms shall have the meanings ascribed to them: ECONOMIC DEVELOPMENT INCENTIVE, - Page 1 51226 (a) "Appraised Value" shall have the same meaning assigned by Section 1.04 of the T~x CODE, as amended. (b) "City" shall mean the City of Coppeil, Texas. (c) assigns. "Company" shall mean Texas Dugan Limited Partnership and permitted (d) "Completion of Construction" shall mean: (i) substantial completion of the Improvements; and (ii) a final certificate of occupancy has been issued for The Container Store occupancy of the Improvements. (e) "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 such 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. (f) "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, government or de facto governmental action (unless caused by the intentionally wrongfi~l acts or omissions of the party), fires, explosions or floods, strikes, slowdowns or work stoppages. (g) "Grants" shall collectively mean the Start Up Gram and the Improvement Grant. (h) "Improvements" shall mean an office and warehouse facility to be constructed on the Land containing approximately 1.1 million square feet of space and other ancillary facilities such as required parking and landscaping more fully described in the submittals filed with the City. (i) "Impositions" shall mean all taxes, including real estate and ad valorem taxes, assessments, use and occupancy taxes, charges, excises, license and permit fees, and other charges by public or governmental authority, general and special, ordinary and extraordinary, foreseen and unforeseen, which are or may be assessed, charged, levied, or imposed by any public or governmental authority on the Company or any property or any business owned by Company within the City. (j) "Land" means the real property described in Exhibit A attached hereto and incorporated herein for all purposes. (k) "Property" shall collectively mean the Land and the Improvements. ECONOMIC DEVELOPMENT INCENTIVE, - Page 2 ~12e6 (1) "Required Use" shall mean the lease and occupancy of initially at least 640,000 square feet of space in the Improvements by The Container Store, Inc., and the lease and occupancy of at least an additional 120,000 square feet of space in the Improvements on or before the 31~t month of the lease term under The Container Store, Inc.'s lease for the Improvements, and the operation of an office, warehouse, distribution, sales, storage and light assembly facility at the Improvements, by The Container Store, Inc. or other tenant approved by the City. Thereafter Required Use shall mean the continuous lease and occupancy of at least 720,000 square feet of space in the Improvements by The Container Store, Inc., or other tenant approved by the City, and the continuous operation of an office, warehouse, distribution, sales, storage and light assembly facility within such space in the Improvements by The Container Store, Inc. or other tenant approved by the City. (m) "Sales Tax Receipts" shall mean the City's receipts from the State of Texas from the collection of the City's one percent (1%) sales and use tax imposed by the City pursuant to Chapter 321 of the Texas Tax Code (it being expressly understood that the City's sales and use tax receipts are being used only as a measurement for its participation through the use of general funds), attributed to the collection of the City's one percent (1%) sales and use tax as a result of the sale to and purchase by Company of Taxable Items consisting of interior building tenant finish out materials for the Improvements that are consummated in the City. Sales Tax Receipts do not include any sales and use tax imposed by City for the benefit of the Coppell Recreation Development Corporation, pursuant to Section 4B of the Development Corporation Act of 1979, article 5190.6, Vernon's Revised Civil Statutes, or sales and use tax imposed by the City for the benefit of Coppell Education Development Corporation pursuant to Chapter 379 A of the TEX. Loc. GOV'T CODE. (n) SUCCeSSOr. "State of Texas" shall mean the office of the Texas Comptroller, or its ARTICLE HI ECONOMIC DEVELOPMENT GRANT 3.1 Waiver of Buildiw, Permit Fees. Subject to the Company's continued satisfaction of the terms and conditions of this Agreement, the City shall provide to the Company a waiver of fifty percent (50%) of the building permit fees associated with the construction of thc Improvements. 3.2 Detention Pond. Company agrees to construct a lined detention pond on the land to maintain the water level in the detention pond at a level agreed to by the parties for aesthetic appearances in accordance with engineering plans approved by the City. The City agrees to supplement the water in the detention pond as necessary, not to exceed four (4) times per calendar year (excluding the months of July and August) to maintain an agreed upon water level. 3.3 Start-Up Grant. Subject to the Company's Required Use and continued satisfaction of the terms and conditions of this Agreement, the City shall provide to Company ECONOMIC DEVELOPMENT INCENTIVE - Page one economic development grant (the "Start-Up Grant") in an amount equal to one hundred percent (100°4) of the Sales Tax Receipts for the twelve calendar months immediately following the date of issuance of the first building permit for construction of the Improvements (the" Start- Up Period"). The sale of Taxable items subject to the Start-Up Grant shall be for items directly related to the interior building tenant finish out for the Improvements. 3.3. i For purposes of Section 3.3, "Start-Up Sales Tax Certificate" shall mean a certificate or other statement in a form reasonably acceptable to the City setting forth the City's receipts fi.om the State of Texas from the collection of the City's one percent (1%) sales and use tax imposed by the City pursuant to Chapter 321 of the Texas Tax Code for the sale to and purchase by Company of Taxable Items consisting of interior building tenant finish out materials for the Improvements, that are consummated in the City during the Start-Up Period which are to be used to determine the amount of the Start-Up Grant and to determine Company's eligibility for the Start-Up Grant, together with such supporting documentation, as City may reasonably request. The Start-Up Sales Tax Certificate shall at a minimum contain and include or be accompanied by the following: A schedule detailing the amount of the City's one percent (1%) sales and use tax collected and paid to the State of Texas as a result of the sale to and purchase by Company of Taxable Items consisting of interior building tenant finish out materials for the Improvements, that are consummated in the City during the Start-Up Period; A copy of all sales and use tax returns and reports, sales and use tax prepayment returns, direct payment permits and reports, including amended sales and use tax returns or reports, filed by a company, business or other legal entity (the Company's Vendor) showing the City's one percent (1%) sales and use tax collected (including sales and use tax paid directly to the State of Texas pursuant to a direct payment certificate) for the sale to and purchase by Company of Taxable Items consisting of interior building tenant finish out materials for the Improvements that are consummated in the City during the Start-Up Period; A copy of all direct payment and self-assessment returns, including amended returns, filed by Company's Vendor during the Start-Up Period showing the City's one percent (1%) sales and use tax paid by Company for the purchase of Taxable Items consisting of interior building tenant finish out materials for the Improvements that are consummated in the City during the Start-Up Period; Information concerning any refund or credit received by Company of the City's one percent (1%) sales or use taxes paid by Company (including any sales and use tax paid directly to the State of Texas pursuant to a direct payment permit) which has previously been reported by Company as sales and use tax paid or collected during the Start-Up Period; ECONOMIC DEVELOPMENT INCENTIVE - Page 4 5~2~ A schedule detailing the total of sales tax paid by Company for the purchase of Taxable Items consisting of interior building tenant finish out materials for the Improvements that are consummated in the City during the Start-Up Period. City agrees to the extent allowed by law to maintain the confidentiality of the Start-Up Sales Tax Certificate. 3.3.2 As a condition precedent to the payment of Start-Up Grant hereunder, City shall have received a Start-Up Sales Tax Certificate from Company for the Start-Up Period. 3.3.3 Refunds. In the event the State of Texas determines that the City erroneously received Sales Tax Receipts, or that the amount of Sales and Use Tax paid to the City exceeds the correct amount of Sales and Use Tax applicable to the Start-Up Grant, the Company shall, within thirty (30) days at~er receipt of notification thereof from the City specifying the amount by which such Staxt-Up Grant exceeded the amount to which the Company was entitled pursuant to such State of Texas determination, pay such amount to the City. As a condition precedent to payment of such refund, the City shall provide Company with a copy o£ such determination by the State of Texas. The provisions of this Section 3.3.3 shall survive termination of this Agreement. 3.3.4 Adiustments. In the event the Company's Vendor files an amended sales and use tax return, or report with the State of Texas, or if additional Sales and Use Tax is due and owing, as determined or approved by the State of Texas, affecting Sales Tax Receipts for the Start-Up Grant, the City shall pay any under payment of the Start-Up Grant, provided the City has received Sales Tax Receipts attributed to such adjustment. As a condition precedent to payment of such adjustment, the Company shall provide the City with a copy of any such Company's Vendor amended sales and use tax report or return, and the approval thereof by the State of Texas. The provisions of this Section 3.3.4 shall survive termination of this Agreement. 3.3.5 Company shall provide the City with the Start-Up Sales Tax Certificate within thirty (30) days after the expiration of the Start-Up Period. The Start-Up Grant shall be paid within one hundred twenty (120) days following the City receipt of the Start-Up Sales Tax Certificate required in this Section 3.3.1. 3.3.6 Current Revenue. The Start-Up Grant made hereunder shall be paid fi.om current revenue from available funds that have been appropriated by the City. Under no circumstances shall City's obligations hereunder be deemed to create any debt within the meaning of any constitutional or statutory provision. Further, the City shall not be obligated to pay any commercial bank, lender or similar institution for any loan or credit agreement made by the Company. None of the City's obligations with respect to the Start-Up Grant under this Agreement shall be pledged or otherwise encumbered in favor of any commercial lender and/or similar financial institution. 3.3.7 Start-Up Grant Limitation. Under no circumstances shall City be obligated to pay the Start-Up Grant unless there is available Sales Tax Receipts and not until receipt of the Start-Up Sales Tax Certificate for the Start-Up Period. City shall not be required to provide the Start-Up Grant unless the City has received the Sales Tax Receipts for the Start-Up Period ECONOMIC DEVELOPMENT INCENTIVE, - Page 5 sm~ attributed to the sale to and purchase by Company of Taxable Items consisting of interior tenant finish-out materials for the Improvements that are consummated in the City during the Start-Up Period. 3.4 Improvement Grant. Subject to the Company's Required Use and continued satisfaction of the terms and conditions of this Agreement, the City shall provide Company annual economic development grants for five (5) consecutive tax years in an mount equal to eighty-five percent (85%) of the property taxes assessed by the City against the Improvements for the applicable tax year (the "Improvement Grant"). For purpose of calculating the amount of an Improvement Grant the certified Appraised Value of the Improvements, as determined by the central appraisal district, shall by multiplied by the City's tax rote for the applicable year. The Improvement Grants are based on the applicable property taxes for tax years 2010-2014, and shall be paid on April 1 of each calendar year following the end of the applicable tax year beginning April 1, 2011. In the event the Company properly protests or contests the Appraised Value and/or the property taxes for the Improvements the City's obligation to provide the Improvement Grant with respect to such tax year shall be abated until a final determination has been made of such protest or contest. Company shall notify the City in writing in the event of such Company protest or contest. In the event a Company protest, motion or contest of the Appraised Value or taxation of the Improvements results in a final determination that changes the Company's tax liability for the Improvements alter an Improvement Grant has been paid for such tax year, the Improvement Grant for the succeeding tax year shall be adjusted accordingly, or if there are no further Improvement Grants to be paid, the City shall, within thirty (30) days, alter such final determination, pay any underpayment of the Improvement Grant to Company, and Company shall within the same period pay any over payment of the Improvement Grant to the City. In the event the City determines in its sole discretion that the City incorrectly paid to the Company an Improvement Grant, the Company shall, within thirty (30) days after receipt of notification thereof from the City specifying the amount by which such Improvement Grant exceeded the correct amount to which the Company was entitled, pay such amount to the City. As a condition precedent to the City's obligation to pay each Improvement Grant, the Company shall have paid in full, without protest, the property taxes assessed by the City against the Improvements for such tax year. The City shall have no obligation to pay any Improvement Grant for any tax year for which the Company has not paid in full the property taxes assessed against the Improvements. The provisions of this Section 3.4 relating to the obligation of the City and Company to pay any over or under payment of an Improvement Grant shall survive termination of this Agreement. ARTICLE IV COi~rrIONS TO GRANTS Company shall during the term of this Agreement strictly comply and satisfy each of the following conditions. 4.1 The Company agrees to cause Completion of Construction of the Improvements and to lease the Improvements to The Container Store, Inc. on or before December 31, 2004. Company shall initially lease at least 640,000 square feet of space in the Improvements; and shall lease an additional 120,000 square feet of space in the Improvements on or before the 31a month of the lease term of The Container Store, Inc.'s lease for the Improvements. ECONOMIC DEVELOPMENT INCENTIVE - Page 6 sm6 4.2 Company shall not have an uncured breach or default of this Agreement. 4.3 During the term of this Agreement following the issuance of a final certificate of occupancy for The Container Store, Inc.'s occupancy of the Improvements and continuing thereaRer until termination of this Agreement to continuously lease the Improvements to The Container Store, Inc. or other tenant approved by the City; and that the Property shall not be used for any purpose other than the Required Use. ARTICLE V TERMINATION 5.1 This Agreement shall terminate upon any one of the following: (a) by written agreement of the parties; (b) expiration of the Term; (c) by either party in the event the other party breaches any of the terms or conditions of this Agreement and such breach is not cured within thirty 00) days atter written notice thereof} (d) by City, if Company suffers an Event of Bankruptcy or Insolvency; and (e) by City, if any Impositions owed to the City or the State of Texas by Company shall become delinquent (provided, however the Company retains the fight to timely and properly protest and contest any such Impositions). ARTICLE VI MISCELLANEOUS 6.1 Binding, Aereement. The terms and conditions of this Agreement are binding upon the successors and permitted assigns of the parties hereto. This Agreement may not be assigned without the express written consent of the City Manager, except that Company may upon ten (10) days prior written notice to City assign this Agreement without the consent of the City Manager to Duke-Realty Limited Partnership in connection with the sale and transfer of the Land and Improvements to Duke-Realty Limited Partnership. 6.2 Limitation on Liability. It is understood and agreed between the parties that the Company, in satisfying the conditions of this Agreement, have acted independently, and the City assumes no responsibilities or liabilities to third parties in connection with these actions. The Company agrees to indemnify and hold harmless the City from all such claims, suits, and causes of actions, liabilities and expenses, including reasonable attorney's fees, of any nature whatsoever by a third party arising out of the Company's performance of the conditions under this Agreement, excluding actions of third parties with whom Company has not contracted with or whom are not injured on the Land or within the Improvements. 6.3 No Joint Venture. It is acknowledged and agreed by the parties that the terms hereof are not intended to and shall not be deemed to create a partnership or joint venture among the parties. ECONOMIC DEVELOPMENT INCENTIVE - Page 6.4 Authorization. Each party represents that it has full capacity and authority to grant all rights and assume all obligations that are granted and assumed under this Agreement. 6.5 Notice. Any notice required or permitted to be delivered hereunder shall be deemed received three (3) days thereafter sent by United States Mail, postage prepaid, certified mail, return receipt requested, addressed to the party at the address set forth below or on the day actually received if sent by courier or otherwise hand delivered. If intended for City, to: Attn: City Manager City of Coppeil, Texas 255 Parkway Boulevard P.O. Box 9478 Coppell, Texas 75019 With a copy to: Peter G. Smith Nichols, Jackson, Dillard, Hager & Smith, L.L.P. 1800 Lincoln Plaza 500 North Akard Dallas, Texas 75201 If intended for the Company: Attn: Jeff Turner Texas Dugan Limited Partnership 5495 Beltline Road Suite 360 Dallas, Texas 75240 With a copy to: Corporate Attorney (Texas Market) Duke Realty Corporation 3950 Shackleford Road Suite 300 Duluth, GA 30096 6.6 Entire Aereement. This Agreement is the entire Agreement between the parties with respect to the subject matter covered in this Agreement. There is no other collateral oral or written Agreement between the parties that in any manner relates to the subject matter of this Agreement, except as provided in any Exhibits attached hereto. ECONOMIC DEVELOPMENT INCENTIVE - Page 8 5 ~226 6.7 Governing Law. The Agreement shall bc governed by the laws of the State of Texas; and venue for any action concerning this Agreement shall be in the State District Court of Dallas County, Texas. 6.8 Amendment. This Agreement may only be amended by the mutual written agreement of the paRiea. 6.9 Legal Construction. In the event any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect other provisions, and it is the intention of the parties to this Agreement that in lieu of each provision that is found to be illegal, invalid, or unenforceable, a provision shall be added to this Agreement which is legal, valid and enforceable and is as similar in terms as possible to the provision found to be illegal, invalid or unenforceable. 6.10 Recitals. The recitals to this Agreement are incorporated herein. 6.11 Counteroarts. This Agreement may be executed in counterparts. Each of the counterpar~ shall be deemed an original instrument, but all of the counterparts shall constitute one and the same instrument. 6.12 Exhibits. All exhibits to.this Agreemem are incorporated herein by reference for all purposes wherever reference is made to the same. 6.13 Survival of Covenanls. Any of the representations, warranties, covenants, and obligations of the patties, as well as any fights and benefits of the parties, pertaining to a period of time following the termination of this Agreement shall survive termination. EXECUTED on this /~ day of ~J~.d~, 2002. By: ~ A~FEST: ECONOMIC DEVELOPMENT INCENTIVE - Page 9 51226 APPROVED A.Vr-T.O FORM: EXECUTED this the /.~ ~ day of TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limi~d partnership By: Dugan G~neral 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 ECONOMIC DEVELOPMENT INCENTIVE - Page 10 s~ CITY'S ACKNOWLEDGMENT STATE OF TEXAS § COUNTY OF DALLAS § This instrument was acknowledged before me on the/_~day of~ 2002, by Candy Sheehan, Mayor of the City of Coppell, Texas, a Texas mun/¢ipality, on behalf of said municipality. ,,,,,m m'",??tt ~-~tary Publ/~/S taie-of Texas My Commission Expires: .~ ECONOMIC DEVELOPME~IT INCENTIV~ - Page COM]'ANY'S ACKNOWLEDGMENT STATE OF ~ § § COUNTY OF ~ § This instrument was acknowledged before me on the \7..'V~ day of ~ 2002, by .left Turner, Senior Vice President, Texas of Duke Realty Corporation, an Indiana corporation on behalf of Texas Dugan Limited Parmership. My Commission expires: i" '--u..~mm ExO 07-31-200,~ I ECONOMIC DEVELOPMENT INCENTIV~ - Page 12 s~226 PROPOSED LOT IR, BLOCK A DUKE-FREEPORTADDITION ~-~VestStawey, Abst~ctNo. 1508, City~Coppe~ Dallas Coun~ Texas 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 parlicularly described as follows; BEGINNING, al 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 comer 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 comer;, said point also being the northeast comer 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 comer 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 112" 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, 14 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 112 inch iron rod with "Pacheco Koch" cap set for comer 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 fool Right of Way), said point being said point being the beginning of a curve to the dght 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, t6 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 md with 'Pacheco Koch" cap set at the end of the said curve; said point being the beginning of compouod 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, 80 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 cur"ye; 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 [eft, through a central angle of 10 degrees, 22 minutes. 26 seconds, an arc distance of 47.08 feet on the chord beadng 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 ~XH ~BIT "A" Proposed Lot 1R, Block 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 curve to the right, through a central angle of 04 degrees, 43 minutes. 14 secends, 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' Gap 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' cap 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, Ir. Date R.P.L.$. No. 4688 Pacheco Koch Consulting Engineers, Inc. 8350 N. Centzal Expwy, # 1000, Dallas TX 75206 (972) 235-3031