HomeMy WebLinkAboutC2006-608 - 12/19/2006 - Approved'~'HE STATE OF TEXAS ~ C8]1PT8Zt 380 AGR881LE~iT
§ F08 BCOMOItIC D1~VELOPM8I~T
COUNTY OF NUECES § I1fC".ffi~1'PIV~S
THIS AGRESMENT is executed by and between SAM IC]1N8
~BF PxOCBSSORB, INC., a Texas corporation, (hereafter
referred to as "OWNER"), and the CITY OF CORPIIS CBRISTI,
7~'EXA~, a home-rule city and municipal corporation of Nueces
Gounty, Texas, acting by and through its City Manager or
his designee, (hereafter referred to as "CITY").
W I T N E S S E T H:
i1HER]3AS, CITY has found that providing a program of
incentives to OWNER in exchange for OWN$R'S
completion of the program proposed by OWNER would
promote local economic development and stimulate
business and commercial activity and create or
retain jobs within the City of Corpus Christi
thereafter referred to as "PROGR.AM"); and
~fHER~AS, CITY has determined that the PROGRAM will
directly establish a public purpose and that all
transactions involving the use of public funds
and resources in the establishment and
administration of the PROGRAM contain controls
likely to ensure that the public purpose is
accomplished; and
NHEREAS, Chapter 380 of the Local Government Code provides
statutory authority for establishing and
administering the incentive provided herein; NOW
THERLFORE,
The CITY and ~WNER, for and in consideration of the
~nutual covenants and promises contained herein, do hereby
agree, covenant and contract as set forth below:
I.
Definitions
A. "Base Year Value" is defined as the tax year 2007
taxable value of real property and improvements
located on the Premises in Corpus Christi, Texas on
January 1, 2007.
B, '~Eligible Property" is defined as Real Property
Improvements made for office space, meat packing,
warehouse, manufacturing or distribution use as described
in the attached 8zhibits, owned and/or leased after the
Effective Date of this Agreement.
" "''' ~.ns a permanent, full-time employment position
2006-608 provided or will result in employment of at
12/ 19/06
M2006-445
Sam K.ane Beef Processors
,,,s . ~~ . _,. , . .,,~. _ --~•.- .
least 2,080 hours per position in a year. Each job
shall pay a living wage, which shall mean that annual
amount determined by the U. S. Department of Health
and Human Services for the Corpus Christi area as
being at the paverty level for a family of three,
divided by 2,08o hours per year. Part-time positions
shall not be included in this definition.
E. "Personal Property Improvements" are defined as
tangible peraonal property (except inventory or
supplies) delivered to, installed or located on the
Premises.
F. "Premises" are defined as the real property (land and
improvements) as such existed on January 1, 2007, and
as described in the attached 8xhibita, which are
incorporated herein by reference and made a part
hereof as if written word for word.
G. "Rea3 Property Improvements" are defined as
improvements to the Pre~ises and shall include
buildings, structures or fixtures erected or affixed
to land.
II.
G~nsral Provisions
A. The Premises are not in an improvement project
financed by tax increment bonds.
B. '~he Premises are not owned or leased by any member of
the City Council.
III.
Imprc~remeat Coaditioas and Ssquirsmaats
In order to receive and keep the incentives and
benefits described in this Agreement, the following must
accur:
A. OWNER shall retain 800 jobs in accordance with the
Program described in the attached Sxhibits in
accordance with this Agreement. The attached Sxhibits
are incorporated herein by reference and made a part
hereof as if written word for word.
H, OWNER~S completion of the Program described in the
attached ~xhibits of this Agreement not later than
December 31, 2007 and the result must be at least 800
jobs retained at all times during the term of this
agreement.
C. OWNER shall operate and maintain on the Premises the
Eligibie Property described in the attached Sxhibits
for the term of this agreement.
D. Oi~NER shall timely pay all current utility billings
and timely repay all deferred utility billings owed to
the CITY.
E. All proposed Eligible Property and future development
shall conform to the applicable building codes, zoning
ordinances and all other ardinances and regulations.
IV.
Incentives
In exchange for OWNER'S promise to complete the
P~ogra~, as set forth in the attached $xhibits, in
a~cordance with this Agreement, CITY shall, as an
i~centive, defer the billing of eighty percent (80~) of
0~-ner's utility billings beginning on the effective date of
this agreement through December 31, 2007. Such deferred
u~ility billings shall be payable by Owner to City at 1201
Llopard Street, P. O. Box 9277, Corpus Christi, Texas, in
twenty-four (24) equal installments beginning January 15,
2fl08, and continuing on the same day of each month, until
paid in full, bearing interest at the rate of 5.25~ per
annum, payments credited first to accrued interest, balance
to principal.
v.
Breach and xecapture
A. Breach - A breach of this Agreement may result in
termination or modification of this Agreement and
discontinuance of the incentive and immediate payment
of all deferred utility billings, bearing interest as
set forth in iv. Incentives, above. Funds subject to
repayment shall. become due sixty (60) days following
notice of breach and after the expiration of any cure
period as provided in Section V(B). Penalty and
interest on repaid funds will be charged at the above
rate after opportunity to cure as provided in Section
V(B). The following conditions shall constitute a
breach of this Agreement:
1. OWNER terminates the use of the Premises for meat
packing and related activities as described in
its application as shown in the attached
$xhibits, which is attached hereto and
incorporated by reference as if set out word for
word herein, and fails to retain at least 800
jobs at any time during the term of the
Agreement; or
2. OWNER fails t.o meet the Grant Conditions and
Requirements as specified in Section III A., B.,
C. and D. and Sectiora IV above; or
3. OWNER allows its ad valorem taxes owed to CITY on
any property located within the City of Corpus
Christi to become delinquent; or
4. OWNER seeks ta reduce the taxable value of the
Premises to an amount below the Base Year Value;
e~r
5. OWNER allows its current utility billings or the
deferred utility billings repayment owed to CITY
~.o become delinquent.
B. ~iotice of Breach - In the event that CITY makes a
reasonable determination that OWNER has breached this
Agreement, then CITY shall give OWNER written notice
of such default. OWNER has~sixty (60) days following
receipt of said written notice to reasonably cure such
breach, or this Agreement may be terminated by CITY,
and recapture of deferred utility billings may occur.
Notice of default shall be in writing and shall be
delivered by personal delivery or certified mail to
OWNER at its address provided in Section VII of this
Agreement. It shall be the duty of CITY to determine
whether to require repayment of deferred utility
billings and to demand payment of such.
C. Recapture - During the term of this Agreement, should
OWNER commit a breach of this Agreement according to
items A(11 ,(2) ,{3) ,(4) or (5) of this Section V, CITY may
terminate this Agreement and recapture all incentive
monies under this Agreement up to the time of breach.
D. Lien ~ OWNER shall grant a lien in favor of CITY in
the anticipated amount of deferred utilities. OWNER
shall execute all documents necessary to evidence and
effect the lien
VI.
8flect of Sale or Lea:e of Property
The incentive given by this Agreement shall not be
3ssignable to any new owner or lessee of all or a portion
e~f the Premises or Eligible Properties unless such
aissignment is approved in writing by the City Council,
qrhich shall be at the sole discretion of the City Council.
If all or part of the Eligible Property is sold, City
~ouncil has the sole discretion to discontinue deferral of
utility billings and to require all previously deferred
utility billings be paid immediately.
~,„ ,..,_ ,.. ~,,. . _F.~.,,., r.. _
VII.
NotiCe
All notices called for or required by this Agreement
sY~all be addressed to the following, or such other party or
ac~iress as either party designates in writing, by certified
m~il gostage prepaid or by hand delivery:
OWNER: Sam Kane Beef Processors, Inc.
9001 Leopard Street
Corpus Christi, Texas 78410
CITY: City of Corpus Christi
City Manager's Office
1201 Leopard Street
~.0. Box 9277
Corpus Christi, Texas 78401
vizz.
City Couacil Authorization
This Agreennnent was authorized by resolution of the
City Cauncil authorizing the City Manager or his designee
t4 e~cecute this Chapter 380 Agreement for Economic
D~velcspment Incentives on behalf of the CITY.
I%.
Sevnrability
In the event any section, subsection, paragraph,
s~ntence, phraae or word is held invalid, illegal or
ulnconstitutional, the balance of this Agreement shall
s~and, shall be enforceable and shall be read as if the
p~rties intended at all times to delete said invalid
s~ection, subsection, paragraph, sentence, phrase or word.
g.
8~toppel Certificate
Any party hereto may request an estoppel certificate
from another party hereto, so long as the certificate is
r*~eque~ted in cannect.ion with a bona fide business purpose.
'~e certificate, which if requested, will be addressed to a
s~bsequent purchaser or assignee of OWNER, shall include,
b~.it nat necessarily be limited to, statements that this
~gre~€aent is in full force and effect without default (or
if d~fault exiats the nature of same), the remaining term
af this Agreement, the levels and remaining term of the
incentives in effect and such other matters reasonably
r~quested by the party(ies) to receive the certificates.
xI.
Owaer's Standiaq
OWNER, as a party to this Agreement, shall be deemed a
p~'ope= and necessary party in any litigation questioning or
cl~alle~nging the validity of this Agreement or any of the
u~derlying ordinances, resolutions or City Council actions
authorizing same, and OWNER shall be entitled to intervene
an said litigation.
BII.
l~ipplicable Law
This Agree~ent shall be construed under the laws of
t~-e 3tate of Texas. Venue for any action under this
A~reement shall be the State's District Court of Nueces
Cvunty, Texas. This Agreement is performable in Nueces
CCunty, Texas. ~
%III.
Indemaificatioa
It is uaderstood aad agreed between the parties that
t~ ~R, in perforaiag its obligatioas hereunder, is
a~tia~ iadepeadsntly, aad CITY assumaa ao respoasibility or
l~.abi3.ity to tttird partiea ia coaaectioa thereaith, aad
O~R agrees to ind~aaify aad hold haraless CITY from any
c~,aia~, damages, verdicts or judgments arising out of
a~tio~a or oaissions by 01~INSR or caused by Oi~i1~8R ia breach
of thia agreemeat.
%IV.
Force 1[aj eure
It is expressly understood and agreed by the parties
~W this Agreeme~t that the parties shall not be found in
dlefault of this Agreement if any party~s failure to meet
the requirements of this Agreement is delayed by reason of
wir, Act of God, ~ire or ather casualty of a similar
nzture.
uv.
~o Other Aqreeaent
This Agree~nent embodies all of the agreements of the
g#rties relating to its subject matter as specifically set
a~t herein, supersedes all prior understandings and
a~ree~ents regarding such subject matter, and may be
a~end~, modificd or supplemented only by an instrument or
i~.struments in writing executed by the parties.
avi.
Signatories
This Agreement is effective and binding on those
parties that have duly signed below.
RVII.
8aadings
The headings of this Agreement are for the convenience
ot reference only and shall not affect in any manner any of
t~e terms and conditions hereof.
aviii.
Succe~sors aad Aasigas
The parties to this Agreement each bind themselves and
tY~eir successors, executors, administrators and assigns to
t~e other party of this Agreement and to the successors,
e~ecutors, administrators and assigns of such other party
im re~pect to all covenants of this Agreement.
No successor, executor, administrator or assign is
valid in the place of the parties to this Agreement without
t~e written conaent of City Council and such consent shall
npt be unreasonably withheld, provided however, the
p~ocedures set out in Section VI, Effect of Sale or Lease
of Property, is binding for the assignment situation
specifically described in Section VI.
ZI%.
Lxecutioa of Agresment
This Agreentent must be executed within sixty (60) days
after the date this Agreement is authorized by the City of
Corpus Christi City Council and presented to OWNER for
s~gnature. This Agreement has been authorized by City
Council on Decernber 19, 2006.
BX.
Termination
This Agreeaient shall terminate in accordance with the
t~rms of this Agreement unless extended by written
a~re~nt of the parties or a written instrument signed by
a~l parties evidencing a tielay by force majeure.
_...,~ _~, _, _..~.,~,,.~,
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IN WITNESS WHEREOF, the partie hereto have executed
this A~reement on the ~~,_ day of /~ , 2007.
~F PROCBSSORS INC.
SAM RANB BL .
WITNE9S:
/~.'`~'+",~--~ ~~-~'`-~`~~~-
BY '~--~
Sign tur
lerr~ KanP
Typed or Printed Name
President and CEO
Typed or Printed Title
CITY OF CORPIIS CSRISTI, TLSli18
By:
C~8 1C . NOB
ity Manager
A7"I'EST :
c~
~~;
CSAP11
C~ty 3ecretary
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A~PRO''~ED AS TO FORM :
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Y I
C~.ty torney
.e. ~3 ,~ .~,~ . . ~~... _ . _ ~.k
THE STATE ~r TEXAS § OWNER
~ Acknowledgment
CfJUNTY OF NUECES ~
BEFORE ME; the undersigned authority, a Notary Public
in and fc~r the State of Texas, on this day personally
appeared Jerry Kane , who is known to me to be
the person whose name is subscribed to the forgoing
instrument, and acknowledged to me that he executed same
for and as the act and deed of OWNBR, and for the purposes
and consideration t?~erein expressed, and in the capacity
t~erein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the
t3th day of _Apri 1__ __, 2007 .
•'~ Ii03ALl~i~il S CORTEZ
, Notuy Pubtic
,/ STATE OF TEXAS
„~f" My Comm. Fa~p. 11-24-2008
1~7 C 1 S 1 e
l. ~; ~~t_l~i~~~,- ~~ Ci~ ~` \ _
Notary Public in and ~br
The State of Texas
Notary's Printed Name
'I~iE STATE OF TEXAS ~
§
COUNTY OF NUECES §
CITY OF CORPIIS CHRISTI, TLBAS
Ackaoa edgment
HEFORE ME, the undersigned authority, a Notary Public
in and for the State of Texas, on this day personally
~ppeared GBORGB K. NOE, known to me to be the person whose
riame is subscribed to the foregoing instrument, and
acknowledged to me that he executed same for and as the act
~-nd deed of the CITY OF CORPIIS CBRISTI, a municipal
corporation of Nueces County, Texas, and as the City
~anagsr thereof, and for the purposes and consideration
ther~in expressed, and in the capacity therein expressed.
GIVEN UNDER MY HAND AND SEAL OF OFFICE on this the ~_.
day of , 2007. ~ .
YY~OWT-_ ~-- . --
Notary Public in and for
The State of Texas
biy Commission F~pires
Notary's Printed Name
,~,:~~~~. ROSALHiDA 8 CORTEt
!+~~4° Notary PubNc
t ~ ~ ~ 8TA"TE OF TEXAS
`~~+.as+~ My Comm. Exp. 11-24•2008
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ng actdress : .' ~ ( th~t ~pply}
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~ ionshi~ t~;~ F~cx~enciar~v: Same a~s abovc: ,.~.., Auth~ni~.cxi Reprc~cntative
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4 a ~ }egttl deseri~stion {mete,ti &. boustde} ~~~ ~(~ ~j~{~
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S, A ch a~-mplete dcscripliun uf the pmject utcluding;
1.V~clhud vf $[nxtinciag
- Pri.mary busiuess acti vi ly a.t this sit~
_~`.urnpIcte d~cxxp~on of alI I~d uscs
."1'ime schGCiuTc T'or wr~letion of i.mprOVet~tc~ts
- ~l".AICS Industry God~
. Uescriptive Ii~r r,!'~m~,~~mcnts
~~ 1. Si zc sq ft.
~ 2.. Gc~sc af c:aaistruction $
_ ._ __ 3, .valuc c~f Pcr4an~ T~rt~petty_. . ...
....
___ .__.. . , . .... ._...._._~__._... _ _ .. _.._..
.___-_ _ .__. - -._ ._._..
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;~ lrVhat pc,7cxnt ~:~ cligible far ~Y ---_. . _ _ _.. ...
~.' ee~~t ~x~mp~ian (~ac~arted from Texas
:,, witl~ 175 d~Ys) ~ ° o
~r b_ ~c}w.pment, machin~ty, fumishin~s, et~:.. $
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t~r. V1~hat ta,xab~e sales witl b~ ~;~:neratcd at ~h1s lxa~ion ~
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EXHIBIT
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`I~l~c dcic:umertts ~ust be submitte~ prior to the City sta1~'s rcvicw of the application:
+i, Prop~rEy tax statement from the Cn~urity T~.x t)ffis:c
~
,,.
~' P1~tlmap u~prcrjtsc;t location
r;
Le~e! nf ahatennent raqu~st~ "l~ _~ Yea~s on Ttcal Praperty or
_ ~ _ Business Yexsonal Pro~erty
_~
,:
E~ atrxi tr~xable value o~'pz~n~erty impcnvcrrir~ks: ~i~i ~_,,., Persoma,l ~
' Est~ ed tnxabla valUn is the vsiuc o( che ircrprvverncnts on January 1 nt rhe year ~Ker th{c impRwern~~ts ere
~
Int~truct~~rc improvem~nts/modificati~ns snugh~:
~~
~~- ~~~ ~ppiication b~ matle to Nueces County? Ycs No
~:
l i_ c~ ~' ~,trachmant, d~cribe why inct~tives ~ necessary for the saccess of thi~ pmjfac.~t
an hnw thc imprc-v~ments wiil benefit the pco~rty at the cnnclusion of the it~cmtiv~
(j . g~ny documenta,i.icm nc~sstu'y to subSt~riti~lte your r~ueSt a~t~d 7'~ any od~cr
1 ' ~sns are uIIdcr considerd#i0n}.
r•:
1~. De~ibe, in delail, a11 othcr incentives sought from the City-ather oconomic inc;~ves,
fo~~lveCS, faSt-ttac~ p1anS rcvicw, ctc,
T~rn r~~~c,'stin~; the C`ity of Lorpus Chri~ti deter ti~e billit~g af ~ighty ~rcent (~3U°/a) o# my
u~lity ~gs 'begini~inR on tti~ c~cctivr; date of a Ghaptet' 384 Agrccmenk fc~r Ec~cmt~mic
T~evcg~t Inc~tivt~ through f~cezZtber 31, 20tY7. I agrc~ t~ pay th~ deferred utility
bi~l~n f~t;o the City vf Corpus Christi i7, tW~nry-fi~nr (24) egt~i installmcnts bc~inn~n~
J~uAr~i 15, 2UU~i, and c~~ntinuinb on thc Same d1y of esc,h tttcmih, unhi ~~.id in full, bC~ing
inl~r~t: ~t the rate of 5.25°lo per aunuat, payrn~nt~ c,nditcd first ta accarezed iu~t~res~, bat~ce
Lo prit~;~al. I fnrther abne~ t~ timcty pay a11 currcnt utiiity t~illings ant~ dcfcrrecl u~lity
t
b~in ~~ and cornply wit}~t the tetms ~nd 1:-rovisiaus oi' ~ Ch.tpticr 3$U Agree~tlelTt tor
Ec;~pno '~ t3cv~lc~~ment incentives. This inu.utive descrt`bed above is beirag t~cqu~ted frorn
the crit~r o1F Gotpus Chri~ti sv that 1 can ret~in thc $00 jobs id~nti fi~ci below.
iion & R~Icattic- •
nr ~~t A.~~, ~,~
Ma~~ ,
Reucft2e ProvIdad
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# af k~tttona ~ # a! ~+osltbns
CreAtcd Ret~int+d
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t c~r~71j~. th~,t rhr inf~rmation ~op~ined hcrcin :fi irue and corrt.c;(,
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--.~.~. _
P'~in~.edrNrtmc an Tet)e
pr~,s~,-~ ~c.~a
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~~r~at~j~t _
~l~ust i~ si~ncd hy n~c~r~ar~,te c~fficcr with signature authc~rity)
~~.-.1~- ac o.~
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r„ 4~4
T~is a' lic~~~ticfn must bc compieted ~nd zeturncd fi~r r~c~r~ideration prior to thc sul~mi~ion of
an a~~pli~r. f~r a. In~ilctina pcrm;~ ~r the issu~ne~e o[ a certifii~t~ c~( c~icupaney, whichcv~;r
u~n-c4~;~_ L)~z~ reccipt of this applicatirm, tt~c C',iy of t'orpus Cluisti sh~il rr.~uire sz~ch
~i~nci ~nd otlier inti~rmaiitm ~.~; ,,,<iy. bc dc.~med ,~urupriate 1i~r evf~luA#ing ihe financ;~i
ca~acity~ ~nd othcr fact~x o1'che applicant.
An ete~r+onic capy ufthi~e ~ptic~rion is uvs~il~hfr Fnr m~re informatiun„ plaa~a u~lf (361) S'Zb :SHS~)_
C'cm~piri.t~c3 rrqu~sts shcyuld bc suhmitt~.;c1 ~,i~~
l~rrer. ror af Lru»r~n:ir.~ ~r.velnpnser~l
C'itv vf C'nr f~u, ("hristi
!'t) l3~~x 9277
('~~r,n~~s ~ hr-i.etr.. Tc~xcrs 7<~-tf ~-~777
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Metes and Bounds Description
Of A
70.23b Acre Tract
37302
Bcin~ 7().236 acres of land, more ~r less, bcin~ a)1 Uf Sam Kane Tract A, a~u~ulivisio~ iti the C~tY o~
City af Cor~iu~ Christ[, Nueces County, Texas recordcd in Volume 28, Paf;e 3$, Mar Rccordti of
Nuecsa Cot~ty,'lexas, all ~f a 16.526 acte tract a.nd a 1d.3639 acse tract as recorded in Volume 948,
T'agc 49$, and Volume 1325, Pagc 28, r.cypectively, TJeed Recosds of Nuece;~ Cour~ty~ Texas, at~d this
tract beit~ mrn-c particula,tlv described Uy metes and b~unds as follows~
B~gi.~iuig at the norrhwesr c~rner of this tract, and sa.id 16.526 acxe txact, said corner being o~ the
sauth tight-~£-way boundarq of St~te ~iighway `) (J..c~pard Stceet);
Thcnt~c 5 65° 1Q' 00" E with thc narth bnuridary of this tract and said 16.526 acrc tract, the same
being #he satttlz ri~ht-raf-wap oE said State Highcvap 9, at 462.$6 feet pass the boundary line lxtur~en
said 16.536 acie and 1 G3G39 acrc: r.cacts, at 935.49 feet pass thc bous~dary line between said Sam
I{ane 'I'r~ct A and said 16.3639 acxe tract, in all 2659_9$ f~ct, to the northmost northeast c~rner o~
this tt~tct and s~id Samc Kane Tract A;
Thenc~ S 32° 33' 20" L with the northeast boundary ~t this ttact az~d said Sam Kane 'i'sact A, nc~
samc ~iag t~e south ri~ht-of-v„ay linc of said State Highwaq 9, 98.52 fcet, ~ thc r,astm~~st northea,st
corize.~ of rhis txrct and said Sani K~uze Tract A, a:ud ccnner. be~ng on the West xight of way lin~ o~
C:Iazk~-ood ~oad;
'1'hencc S(H~° 03' 20" W with the ea5t bauiidaiy nf this ttact and said Sam K:~ne Tract A, t~a same
being #he w~t ri~ht~isf-way lime of said Clarb-wood Ttoad, l13 22 fcx.t, tn the southeast comer of this
t~act ~nc~ saicl Sam Kane "1'ract 11;
Thcncx l~ $9° 56' 00" W urith thc soutla bnundary oE this tract, at 1573.,04 fcct pass the bovndary
line bltt~cve,c~ Said Satn Kane '1'ract 11 and said 16.3639 acte ttact, at 2045.6? feet pas3 thc bou~n.dary
I~e laletween said 16.3b39 acxe aad 1b.52b acxe tracts, ui all 2465,67 feet to the southwest comer of
rhis *rJtct and aaid 16..52G acrt rracty
Thencx N Q()° Ol' 40" W vvith rhe wcst G~undary of tbis tract and said iG.526 ~cte tract, 1810.53
~~et, tc~r the point of bcginning and conta.in.ii~ 70,23G acxes c~f land, mote or less.
~;~~t.~' O ~q~Q~4~
C. , .
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+r./~~r • ti
SSIp .:.t~
Note: $car.i~gs based on S 65°1p'00" E on north bounclary of Sam I{ane 7'ract A recardcd in
Voltmie 2$, P~ge 38, Map Records of Nueces County, Tcxas- '~us ~netes and botuids
desctitpt~on prepared fitom tecorded deed and map tecords.
EXHIBIT
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