S.B. No. 2507 AN ACT relating to the creation of the Harris County Improvement District No. 16; providing authority to impose an assessment, impose a tax, and issue bonds. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subtitle C, Title 4, Special District Local Laws Code, is amended by adding Chapter 3890 to read as follows: CHAPTER 3890. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 16 SUBCHAPTER A. GENERAL PROVISIONS Sec. 3890.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means the City of Houston. (3) "Director" means a board member. (4) "District" means the Harris County Improvement District No. 16. Sec. 3890.002. NATURE OF DISTRICT. The Harris County Improvement District No. 16 is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 3890.003. PURPOSE; DECLARATION OF INTENT. (a) The creation of the district is essential to accomplish the purposes of Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other public purposes stated in this chapter. By creating the district and in authorizing the City of Houston, Harris County, and other political subdivisions to contract with the district, the legislature has established a program to accomplish the public purposes set out in Section 52-a, Article III, Texas Constitution. (b) The creation of the district is necessary to promote, develop, encourage, and maintain employment, commerce, transportation, housing, tourism, recreation, the arts, entertainment, economic development, safety, and the public welfare in the district. (c) This chapter and the creation of the district may not be interpreted to relieve the city or Harris County from providing the level of services provided, as of the effective date of the Act creating this chapter, to the area in the district. The district is created to supplement and not to supplant the city and county services provided in the area in the district. Sec. 3890.004. FINDINGS OF BENEFIT AND PUBLIC PURPOSE. (a) The district is created to serve a public use and benefit. (b) All land and other property included in the district will benefit from the improvements and services to be provided by the district under powers conferred by Sections 52 and 52-a, Article III, and Section 59, Article XVI, Texas Constitution, and other powers granted under this chapter. (c) The creation of the district is in the public interest and is essential to: (1) further the public purposes of developing and diversifying the economy of the state; (2) eliminate unemployment and underemployment; and (3) develop or expand transportation and commerce. (d) The district will: (1) promote the health, safety, and general welfare of residents, employers, potential employees, employees, visitors, and consumers in the district, and of the public; (2) provide needed funding for the district to preserve, maintain, and enhance the economic health and vitality of the district territory as a community and business center; (3) promote the health, safety, welfare, and enjoyment of the public by providing pedestrian ways and by landscaping and developing certain areas in the district, which are necessary for the restoration, preservation, and enhancement of scenic beauty; and (4) provide for water, wastewater, drainage, road, and recreational facilities for the district. (e) Pedestrian ways along or across a street, whether at grade or above or below the surface, and street lighting, street landscaping, parking, and street art objects are parts of and necessary components of a street and are considered to be a street or road improvement. (f) The district will not act as the agent or instrumentality of any private interest even though the district will benefit many private interests as well as the public. Sec. 3890.005. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act creating this chapter. (b) The boundaries and field notes contained in Section 2 of the Act creating this chapter form a closure. A mistake in the field notes or in copying the field notes in the legislative process does not affect the district's: (1) organization, existence, or validity; (2) right to issue any type of bond for the purposes for which the district is created or to pay the principal of and interest on the bond; (3) right to impose or collect an assessment or tax; or (4) legality or operation. Sec. 3890.006. ELIGIBILITY FOR INCLUSION IN SPECIAL ZONES. All or any part of the area of the district is eligible to be included in: (1) a tax increment reinvestment zone created under Chapter 311, Tax Code; (2) a tax abatement reinvestment zone created under Chapter 312, Tax Code; or (3) an enterprise zone created under Chapter 2303, Government Code. Sec. 3890.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 3890.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. [Sections 3890.009-3890.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 3890.051. GOVERNING BODY; TERMS. (a) The district is governed by a board of five voting directors who serve staggered terms of four years, with two or three directors' terms expiring June 1 of each odd-numbered year. (b) The board by resolution may change the number of voting directors on the board, but only if the board determines that the change is in the best interest of the district. The board may not consist of fewer than five or more than 15 voting directors. Sec. 3890.052. APPOINTMENT OF DIRECTORS. The mayor and members of the governing body of the city shall appoint voting directors from persons recommended by the board. A person is appointed if the majority of the members of the governing body, including the mayor, vote to appoint that person. Sec. 3890.053. INITIAL VOTING DIRECTORS. (a) The initial board consists of the following voting directors: Pos. No.Name of Director 1 Thad Armstrong 2 Ken Melber 3 Bank Jordan 4 Alan Arnold 5 Pat Walters (b) Of the initial directors, the terms of directors appointed for positions 1 through 3 expire June 1, 2011, and the terms of directors appointed for positions 4 and 5 expire June 1, 2013. (c) Section 3890.052 does not apply to this section. (d) This section expires September 1, 2014. Sec. 3890.054. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve at the pleasure of the voting directors. Sec. 3890.055. QUORUM. For purposes of determining the requirements for a quorum of the board, the following are not counted: (1) a board position vacant for any reason, including death, resignation, or disqualification; (2) a director who is abstaining from participation in a vote because of a conflict of interest; or (3) a nonvoting director. Sec. 3890.056. COMPENSATION. A director is entitled to receive fees of office and reimbursement for actual expenses as provided by Section 49.060, Water Code. Sections 375.069 and 375.070, Local Government Code, do not apply to the board. [Sections 3890.057-3890.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 3890.101. DEVELOPMENT CORPORATION POWERS. The district may exercise the powers given to a development corporation under Chapter 505, Local Government Code, including the power to own, operate, acquire, construct, lease, improve, or maintain a project described by that chapter. Sec. 3890.102. NONPROFIT CORPORATION. (a) The board by resolution may authorize the creation of a nonprofit corporation to assist and act for the district in implementing a project or providing a service authorized by this chapter. (b) The nonprofit corporation: (1) has each power of and is considered for purposes of this chapter to be a local government corporation created under Chapter 431, Transportation Code; and (2) may implement any project and provide any service authorized by this chapter. (c) The board shall appoint the board of directors of the nonprofit corporation. The board of directors of the nonprofit corporation shall serve in the same manner as the board of directors of a local government corporation created under Chapter 431, Transportation Code, except that a board member is not required to reside in the district. Sec. 3890.103. AGREEMENTS; GRANTS. (a) The district may make an agreement with or accept a gift, grant, or loan from any person. (b) The implementation of a project is a governmental function or service for the purposes of Chapter 791, Government Code. Sec. 3890.104. AUTHORITY TO CONTRACT FOR LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified person, including Harris County or the city, for the provision of law enforcement services in the district for a fee. Sec. 3890.105. APPROVAL BY CITY. (a) Except as provided by Subsection (c), the district must obtain approval from the city for: (1) the issuance of bonds; and (2) plans and specifications for an improvement project related to the use of land owned by the city, an easement granted by the city, or a right-of-way of a street, road, or highway. (b) The approval under Subsection (a)(1) must be by a resolution or ordinance adopted by the governing body of the city. The approval under Subsection (a)(2) may be any form of official approval of the city, including approval by an administrative process that does not involve the city's governing body. (c) If the district obtains approval of the city's governing body for a capital improvements plan for a period not to exceed 10 years, the district may finance the capital improvements and issue bonds specified in the plan without further city approval. Sec. 3890.106. MEMBERSHIP IN CHARITABLE ORGANIZATIONS. The district may join and pay dues to a charitable or nonprofit organization that performs a service or provides an activity consistent with the furtherance of a district purpose. Sec. 3890.107. ECONOMIC DEVELOPMENT PROGRAMS. (a) The district may establish and provide for the administration of one or more programs to promote state or local economic development and to stimulate business and commercial activity in the district, including programs to: (1) make loans and grants of public money; and (2) provide district personnel and services. (b) The district has all of the powers of a municipality under Chapter 380, Local Government Code. Sec. 3890.108. NO EMINENT DOMAIN. The district may not exercise the power of eminent domain. Sec. 3890.109. ANNEXATION OR EXCLUSION OF LAND. (a) The district may annex land as provided by Subchapter J, Chapter 49, Water Code. (b) In addition to the authority to annex provided by Subsection (a), the board by resolution may annex territory if: (1) the city's governing body by ordinance or resolution consents to the annexation; (2) the board holds a hearing to consider the annexation; and (3) the board determines that the annexation is practicable and in the best interest of the district. (c) An election is required for an annexation under Subsection (b) or Section 49.302, Water Code, only if before the annexation the district held an election at which the voters approved the imposition of an ad valorem tax or the issuance of bonds payable wholly or partly from ad valorem taxes. (d) The district may exclude land as provided by Subchapter J, Chapter 49, Water Code. Section 375.044(b), Local Government Code, does not apply to the district. [Sections 3890.110-3890.150 reserved for expansion] SUBCHAPTER D. PUBLIC TRANSIT SYSTEM AND PARKING FACILITIES Sec. 3890.151. PUBLIC TRANSIT SYSTEM. The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain a public transit system to serve the area in the district. Sec. 3890.152. PARKING FACILITIES AUTHORIZED; OPERATION BY PRIVATE ENTITY; TAX EXEMPTION. (a) The district may acquire, lease as lessor or lessee, construct, develop, own, operate, and maintain parking facilities or a system of parking facilities, including: (1) lots, garages, parking terminals, or other structures or accommodations for parking motor vehicles off the streets; and (2) equipment, entrances, exits, fencing, and other accessories necessary for safety and convenience in parking vehicles. (b) A parking facility of the district may be leased to or operated on behalf of the district by an entity other than the district. (c) The district's parking facilities are a program authorized by the legislature under Section 52-a, Article III, Texas Constitution. (d) The district's parking facilities serve the public purposes of the district and are owned, used, and held for a public purpose even if leased or operated by a private entity for a term of years. Sec. 3890.153. RULES. The district may adopt rules governing the district's public transit system or public parking facilities. Sec. 3890.154. FINANCING OF PUBLIC PARKING FACILITIES. (a) The district may use any of its resources, including revenue, assessments, taxes, or grant or contract proceeds, to pay the cost of acquiring or operating the district's public transit system or public parking facilities. (b) The district may: (1) set, charge, impose, and collect fees, charges, or tolls for the use of the district's public transit system or public parking facilities; and (2) issue bonds or notes to finance the cost of the district's public transit system or public parking facilities. [Sections 3890.155-3890.200 reserved for expansion] SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 3890.201. DISBURSEMENTS AND TRANSFERS OF MONEY. The board by resolution shall establish the number of directors' signatures and the procedure required for a disbursement or transfer of the district's money. Sec. 3890.202. MONEY USED FOR IMPROVEMENTS OR SERVICES. The district may acquire, construct, finance, operate, or maintain any improvement or service authorized under this chapter or Chapter 375, Local Government Code, using any money available to the district. Sec. 3890.203. PETITION REQUIRED FOR FINANCING SERVICES AND IMPROVEMENTS WITH ASSESSMENTS. (a) The board may not finance a service or improvement project with assessments under this chapter unless a written petition requesting that service or improvement has been filed with the board. (b) A petition filed under Subsection (a) must be signed by the owners of a majority of the assessed value of real property in the district subject to assessment according to the most recent certified tax appraisal roll for Harris County. Sec. 3890.204. METHOD OF NOTICE FOR HEARING. The district may mail the notice required by Section 375.115(c), Local Government Code, by certified or first class United States mail. The board shall determine the method of mailing notice. Sec. 3890.205. ASSESSMENTS; LIENS FOR ASSESSMENTS. (a) The board by resolution may impose and collect an assessment for any purpose authorized by this chapter in all or any part of the district. (b) An assessment, a reassessment, or an assessment resulting from an addition to or correction of the assessment roll by the district, penalties and interest on an assessment or reassessment, an expense of collection, and reasonable attorney's fees incurred by the district: (1) are a first and prior lien against the property assessed; (2) are superior to any other lien or claim other than a lien or claim for county, school district, or municipal ad valorem taxes; and (3) are the personal liability of and a charge against the owners of the property even if the owners are not named in the assessment proceedings. (c) The lien is effective from the date of the board's resolution imposing the assessment until the date the assessment is paid. The board may enforce the lien in the same manner that the board may enforce an ad valorem tax lien against real property. (d) The board may make a correction to or deletion from the assessment roll that does not increase the amount of assessment of any parcel of land without providing notice and holding a hearing in the manner required for additional assessments. Sec. 3890.206. UTILITY PROPERTY EXEMPT FROM IMPACT FEES AND ASSESSMENTS. The district may not impose an impact fee or assessment on the property, including the equipment, rights-of-way, facilities, or improvements, of: (1) an electric utility or a power generation company as defined by Section 31.002, Utilities Code; (2) a gas utility as defined by Section 101.003 or 121.001, Utilities Code; (3) a telecommunications provider as defined by Section 51.002, Utilities Code; or (4) a person who provides to the public cable television or advanced telecommunications services. Sec. 3890.207. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held in accordance with Section 3890.210, the district may impose an annual operation and maintenance tax on taxable property in the district in accordance with Section 49.107, Water Code, for any district purpose, including to: (1) maintain and operate the district; (2) construct or acquire improvements; or (3) provide a service. (b) The board shall determine the tax rate. The rate may not exceed the rate approved at the election. (c) Section 49.107(h), Water Code, does not apply to the district. Sec. 3890.208. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS. (a) The district may borrow money on terms and conditions as determined by the board. Section 375.205, Local Government Code, does not apply to a loan, line of credit, or other borrowing from a bank or financial institution secured by revenue other than ad valorem taxes. (b) The district may issue by competitive bid or negotiated sale bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, assessments, impact fees, revenue, contract payments, grants, or other district money, or any combination of those sources of money, to pay for any authorized district purpose. (c) The limitation on the outstanding principal amount of bonds, notes, and other obligations set forth in Section 49.4645, Water Code, does not apply to the district. Sec. 3890.209. TAXES FOR BONDS. At the time the district issues bonds payable wholly or partly from ad valorem taxes, the board shall provide for the annual imposition of a continuing direct annual ad valorem tax, without limit as to rate or amount, while all or part of the bonds are outstanding as required and in the manner provided by Sections 54.601 and 54.602, Water Code. Sec. 3890.210. ELECTIONS REGARDING TAXES AND BONDS. (a) The district may issue, without an election, bonds, notes, and other obligations secured by revenue other than ad valorem taxes. (b) The district must hold an election in the manner provided by Subchapter L, Chapter 375, Local Government Code, to obtain voter approval before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes. (c) Section 375.243, Local Government Code, does not apply to the district. (d) All or any part of any facilities or improvements which may be acquired by a district by the issuance of its bonds may be included in one single proposition to be voted on at the election or the bonds may be submitted in several propositions. Sec. 3890.211. CITY NOT REQUIRED TO PAY DISTRICT OBLIGATIONS. Except as provided by Section 375.263, Local Government Code, the city may not be required to pay a bond, note, or other obligation of the district. Sec. 3890.212. COMPETITIVE BIDDING. Subchapter I, Chapter 49, Water Code, applies to the district. Sections 375.221 and 375.223, Local Government Code, do not apply to the district. Sec. 3890.213. TAX AND ASSESSMENT ABATEMENTS. The district may grant in the manner provided by Chapter 312, Tax Code, an abatement for a tax or assessment owed to the district. [Sections 3890.214-3890.250 reserved for expansion] SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED PROPERTY Sec. 3890.251. AUTHORITY TO ESTABLISH DEFINED AREAS OR DESIGNATED PROPERTY. The district may define areas or designate certain property of the district to pay for improvements, facilities, or services that primarily benefit that area or property and do not generally and directly benefit the district as a whole. Sec. 3890.252. PROCEDURE FOR ELECTION. (a) Before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes of the area defined or property designated under Section 3890.251, the board must call and hold an election as provided by Section 3890.210 only in the defined area or in the boundaries of the designated property. (b) The board may submit the proposition to the voters on the same ballot to be used in another election. Sec. 3890.253. DECLARING RESULT AND ISSUING ORDER. (a) If a majority of the voters voting at the election approve the proposition or propositions, the board shall declare the results and by order shall establish the defined area and describe it by metes and bounds or designate the specific property. (b) A court may not review the board's order except on the ground of fraud, palpable error, or arbitrary and confiscatory abuse of discretion. Sec. 3890.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and adoption of the order described in Section 3890.253, the district may apply separately, differently, equitably, and specifically its taxing power and lien authority to the defined area or designated property to provide money to construct, administer, maintain, and operate services, improvements, and facilities that primarily benefit the defined area or designated property. Sec. 3890.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR DEFINED AREA OR DESIGNATED PROPERTY. After the order under Section 3890.253 is adopted, the district may issue bonds to provide for any land, improvements, facilities, plants, equipment, and appliances for the defined area or designated property. SECTION 2. The Harris County Improvement District No. 16 initially includes all territory contained in the following area: TRACT 1 Description of two tracts of land containing 23.8087 acres (1,037,107 square feet), Save and Except a 0.1389 acre tract (6,048 square feet), and 4.0627 acres (176,970 square feet), located in the Juan Sutton Survey, A-751 and the John Robinson Survey, A-680, Harris County, Texas, and being those two certain tracts, Parcel "X", 25+ acres and Parcel "Y", 4+ acres, as described in deed from Corporate Property Investors to Rouse-Almeda, Inc., as recorded under Harris County Clerk's File No. L484651, said tracts of land are more particularly described by metes and bounds as follows, with bearings referenced to the description of said 23.8087 acre tract: TRACT 1 - PART A BEGINNING at a 5/8-inch iron rod found for the intersection of the northerly right-of-way line of Kingspoint Road (60-foot wide right-of-way) with the easterly right-of-way line of Kleckley Drive (80-foot wide right-of-way) as described by City of Houston Ordinance recorded in Volume 5959, Page 31 of the Harris County Deed Records, said point being the southwest corner of the herein described tract; THENCE North 01 13' 33" West, with the easterly line of said Kleckley Drive, a distance of 614.96 feet to a cut "X" found at the southwest corner of a certain 1.00 acre tract as described under Harris County Clerk's File No. C687380; THENCE North 88 46' 27" East, leaving said easterly right-of-way line and with the southerly line of said 1.00 acre tract, a distance of 200.00 feet to a 1/2-inch iron rod found at the southeast corner of said tract and an interior corner of the herein described tract; THENCE North 01 13' 33" West, with the easterly line of said 1.00 acre tract, a distance of 217.80 feet to a railroad spike found at the northeast corner of said tract and an interior corner of the herein described tract; THENCE South 88 46' 27" West, with the northerly line of said 1.00 acre tract, a distance of 200.00 feet to a 5/8-inch iron rod found for the northwest corner of said tract and on the easterly right-of-way line of the aforementioned Kleckley Drive; THENCE North 01 13' 33" West, with the said easterly right-of-way line, a distance of 240.92 feet to a 5/8-inch iron rod found at the most westerly northwest corner of the herein described tract and the southwest corner of a called 17.1734 acre tract as described under Harris County Clerk's File No. C200933; THENCE North 88 46' 27" East, leaving said easterly right-of-way line and with the southerly line of said 17.1734 acre tract, a distance of 221.47 feet to a 1/2-inch iron rod found for a southeast corner of said tract and an interior corner of the herein described tract; THENCE North 01 13' 33" West, with an easterly line of said 17.1734 acre tract, a distance of 138.58 feet to 5/8-inch iron rod found at an angle point; THENCE North 68 05' 25" East, continuing with said easterly line, a distance of 20.00 feet to an angle point within a building column; THENCE North 21 54' 35" West, continuing with said easterly line, a distance of 105.94 feet to a nail and washer found at the most northerly northwest corner of the herein described tract and an interior corner of said 17.1734 acre tract; THENCE North 68 05' 25" East, with a southeasterly line of said 17.1734 acre tract, a distance of 535.50 feet to a 3/4-inch iron rod found at the most northerly northeast corner of the herein described tract and an interior corner of said 17.1734 acre tract; THENCE South 42 35' 38" East, with a southwesterly line of said 17.1734 acre tract a distance of 251.82 feet to a 1/2-inch iron rod found for the southwest corner of said tract and an interior corner of the herein described tract; THENCE North 47 24' 22" East, with a southeasterly line of said 17.1734 acre tract, a distance of 278.97 feet to a 5/8-inch iron rod found at the most easterly southeast corner of said tract and the most easterly northeast corner of the herein described tract and on the westerly right-of-way line of I.H. 45 (Gulf Freeway, width varies); THENCE South 42 35' 38" East, with the westerly right-of-way line of said I.H. 45, a distance of 442.06 feet to a 5/8-inch iron rod found at the most easterly southeast corner of the herein described tract and the northeast corner of a 13.7382 acre tract as described under Harris County Clerk's File No. C200933; THENCE South 47 24' 22" West, leaving said westerly right-of-way line and with a northwesterly line of said 13.7382 acre tract, a distance of 564.48 feet to a PK nail and washer found at the northeast corner of a 0.7286 acre tract of land described in deed to Federated Department Stores as recorded in Volume 6379, Page 160 of the Deed Records of Harris County, Texas and at an interior corner of the herein described tract; THENCE South 21 54' 35" East, with the northeasterly line of the said 0.7286 acre Federated tract, a distance of 50.00 feet to a cut "X" found at the east corner of the said 0.7286 acre Federated tract; THENCE South 68 05' 25" West, with the southeasterly line of said 0.7286 acre Federated tract, at 634.76 feet, pass the south corner of the said 0.7286 acre Federated tract and the north corner of a 0.7286 acre tract of land described in deed to J.C. Penny as recorded in Volume 6379, Page 160 of the Deed Records of Harris County, Texas, and then with the northwesterly line of the said 0.7286 acre J.C. Penny tract, in all a total distance of 695.69 feet to a 1/2-inch iron rod found at the west corner of said tract and an interior corner of the herein described tract; THENCE South 21 54' 35" East, with the southwesterly line of said 0.7286 acre J.C. Penny tract, a distance of 529.64 feet to a 5/8-inch iron rod found at the southern corner of the said 0.7286 acre J.C. Penny tract and on the northerly line of a Texas Pipe Line Company fee strip as described in Volume 1770, Page 161 of the Deed Records of Harris County, Texas; THENCE South 52 09' 27" West, with the northerly line of said fee strip, a distance of 36.83 feet to a 5/8-inch iron rod found at the most westerly southeast corner of the herein described tract and on the northerly right-of-way line of the aforementioned Kingspoint Road; THENCE North 89 47' 33" West, with the northerly right-of-way line of said Kingspoint Road, a distance of 472.53 feet to the POINT OF BEGINNING containing a computed area of 23.8087 acres (1,037,107 square feet) of land. SAVE AND EXCEPT (TRACT 1 - PART A) SAVE AND EXCEPT that certain 0.1389 acre (6,048 square feet) tract of land conveyed to the City of Houston, by deed recorded under County Clerk's File No. N889207 and described as follows: BEGINNING at a 5/8-inch iron rod found at the intersection of the northerly right-of way line of Kingspoint Road (60 foot wide right-of-way) with the easterly right-of-way line of Kleckley Drive (80-foot wide right-of-way) as described by City of Houston Ordinance recorded in Volume 5959, Page 31 of the Harris County Deed Records, said point being the southwest corner of the herein described tract; THENCE, North 01 13' 33" West, with the easterly right-of-way line of said Kleckley Drive, a distance of 55.00 feet to a 5/8-inch iron rod set at the northwest corner of the herein described tract; THENCE, South 89 47' 33" East, a distance of 110.00 feet to a 5/8-inch iron rod set at the northeast corner of the herein described tract; THENCE, South 01 13' 33" East, a distance of 55.00 feet to a 5/8-inch iron rod set at the southeast corner of the herein described tract and on the northerly right-of-way line of the aforesaid Kingspoint Road; THENCE, North 89 47' 33" West, with the northerly right-of-way line of said Kingspoint Road, a distance of 110.00 feet to the POINT OF BEGINNING and containing 0.1389 acres (6,048 square feet) of land. The subject property contains 23.8087 acres (1,037,107 square feet) save and except 0.1389 acres (6,048 square feet) for a computed net area of 23.6698 acres (1,031,059 square feet). TRACT 1 - PART B COMMENCING at a 5/8-inch iron rod found at the intersection of the northerly right-of-way line of Kingspoint Road (60-foot wide right-of-way) with the easterly right-of-way line of Kleckley Drive (80-foot wide right-of-way) as described by City of Houston Ordinance recorded in Volume 5959, Page 31 of the Harris County Deed Records: THENCE, South 89 47' 33" East, with the northerly right-of-way line of said Kingspoint Road, a distance of 939.74 feet to a 5/8-inch iron rod found for the POINT OF BEGINNING at the southwest corner of the herein described tract and a southeast corner of a 13.7382 acre tract as described under Harris County Clerk's File No. C200932; THENCE, North 00 12' 27" East, leaving said northerly right-of-way line and with an easterly line of said 13.7382 acre tract, a distance of 289.48 feet to a 1/2-inch iron rod set at the northwest corner of the herein described tract and on the southerly line of a Texas Pipe Line Company Fee Strip as described in Volume 1770, Page 161 of the Harris County Deed Records; THENCE, North 52 09' 27" East, with the southerly line of the said Fee Strip, a distance of 495.62 feet to a 5/8-inch iron rod found at the northeast corner of the herein described tract and the northwest corner of a called 10.7966 acre tract as described under Harris County Clerk's File No. E970132; THENCE, South 01 12' 33" East, leaving the southerly line of the said Fee Strip and with the westerly line of the said 10.7966 acre tract, a distance of 595.14 feet to a 5/8-inch iron rod found at the southeast corner of the herein described tract and on the northerly line of the aforementioned Kingspoint Road; THENCE, North 89 47' 33" West, with the northerly line of said Kingspoint Road, a distance of 405.00 feet to the POINT OF BEGINNING containing a computed area of 4.0627 acres (176,970 square feet) of land. The subject property contains 23.8087 acres (1,037,107 square feet) in Tract 1 - Part A, save and except 0.1389 acres (6,048 square feet), and 4.0627 acres (176,970 square feet) in Tract 1 - Part B, for a computed net area of 27.7325 acres (1,208,029 square feet). TRACT 2 13.7382 acres of land out of that tract of land containing 56.7876 acres described in Exhibit A in deed from James P. Lee, Trustee, to Federated Department Stores, Inc. as recorded in Volume 5207, Pages 522, et seq., of the Deed Records of Harris County, Texas, said 56.7876 acres being a part of Block 19 of Genoa Outlots, a subdivision of the Juan Sutton Survey, Abstract No. 751, and the John Robinson Survey, Abstract No. 680, in Harris County, Texas, according to the map of record in Volume 1, Page 1, of the Map Records of Harris County, Texas, and also being a part of Block 3 of Acre Home Addition, a subdivision of the Juan Sutton Survey, Abstract No. 751, and the John Robinson Survey, Abstract No. 680, in Harris County, Texas, according to the map of record in Volume 4, Page 28 of the Map Records of Harris County, Texas, the tract herein described and conveyed being more particularly described by Metes and Bounds as follows: BEGINNING at an iron rod on the north right-of-way line of Kingspoint Road (60 feet wide), said iron rod being located 939.74 feet South 89 degrees 47 minutes 33 seconds East from the intersection of the north right-of-way line of Kingspoint Road with the east right-of-way line of Kleckley Drive (80 feet wide), said iron rod being the southwest corner of a tract, described in deed from John E. Crosland to Trustees of The Presbytery of Houston, recorded in Volume 4035, Page 79, of the Deed Records of Harris County, Texas; THENCE with the North right-of-way line of Kingspoint Road, North 89 degrees, 47 minutes, 33 seconds West for a distance of 467.21 feet to a 5/8-inch diameter iron rod found on the northwest line of a Texas Pipe Line Company Fee strip (60 feet wide) as described in Volume 1770, Page 161 of the Deed Records of Harris County, Texas; THENCE with the northwest line of the said Texas Pipe Line Company Fee strip, North 52 degrees 09 minutes 27 seconds East, for a distance of 36.83 feet to a 5/8-inch diameter iron rod found at the south corner of a 0.7286 acre tract of land described in deed to J.C. Penny Company as recorded in Volume 6379, Page 156 of the Harris County Deed Records; THENCE North 21 degrees 54 minutes 35 seconds West with the southwesterly line of the said 0.7286 acre J.C. Penny tract for a distance of 529.64 feet to a 1/2-inch diameter iron rod found at the western corner of the said 0.7286 acre J.C. Penny tract; THENCE North 68 degrees 05 minutes 25 seconds East, at 60.93 feet, pass the north corner of the said 0.7286 acre J.C. Penny tract and the south corner of a 0.7286 acre tract described in deed to Federated Department Stores as recorded in Volume 6379, Page 160 of the Deed Records of Harris County, Texas and then with the southeasterly line of the said 0.7286 acre Federated tract for a total distance of 695.69 feet to an "X" found scribed in concrete at the easterly corner of the said 0.7286 acre Federated tract; THENCE North 21 degrees 54 minutes 35 seconds West with the easterly line of the said 0.7286 acre Federated tract for a distance of 50.00 feet to a "P.K." nail and washer found at the north corner of the said 0.7286 acre Federated tract; THENCE North 47 degrees 24 minutes 22 seconds East for a distance of 564.48 feet to a 5/8-inch diameter iron rod found on the southeasterly right-of-way line of the Gulf Freeway; THENCE with the southwest right-of-way line of the Gulf Freeway, South 42 degrees 35 minutes 38 seconds East for a distance of 414.58 feet to a 5/8-inch diameter iron rod set on the northwest line of the said Texas Pipe Line Company Fee strip; THENCE with the northwesterly line of the said Texas Pipe Line Company Fee strip, South 52 degrees 09 minutes 27 seconds West for a distance of 868.50 feet to a 1/2-inch diameter iron rod set; THENCE departing the said Texas Pipe Line Company Fee strip, South 00 degrees 12 minutes 27 seconds West at 76.20 feet pass the northwest corner of the said Trustees of the Presbytery of Houston tract, in all a total distance of 365.68 feet to the POINT OF BEGINNING containing 14.4703 acres (630.325) square feet) of land. SAVE AND EXCEPT (TRACT 2) SAVE AND EXCEPT a tract of land containing 0.7321 acres (31,890 square feet), being part of the Texas Pipe Line Company Fee strip and being more particularly described by metes and Bounds as follows: COMMENCING at a iron rod on the north right-of-way line of Kingspoint Road (60 feet wide), said iron rod being located 939.74 feet South 89 degrees 47 minutes 33 seconds East from the intersection of the north right-of-way line of Kingspoint Road with the east right-of-way line of Kleckley Drive (80 feet wide), said iron rod being the southwest corner of a tract, described in deed from John E. Crosland to Trustees of The Presbytery of Houston, recorded in Volume 4035, Page 79, of the Deed Records of Harris County, Texas; THENCE with the north right-of-way line of Kingspoint Road, North 89 degrees 47 minutes 33 seconds West 369.86 feet to a 5/8-inch diameter iron rod set on the southeast right-of-way line of the said Texas Pipe Line Company Fee strip, for POINT OF BEGINNING of the tract herein described; THENCE with the north right-of-way line of Kingspoint Road, North 89 degrees 47 minutes 33 seconds West for a distance of 97.35 feet to a 5/8-inch diameter iron rod found on the northwest line of the said Texas Pipe Line Company Fee strip; THENCE with the northwest line of the said Texas Pipe Line Company Fee strip, North 52 degrees 09 minutes 27 seconds East for a distance of 593.30 feet to a 1/2-inch diameter iron rod set; THENCE South 00 degrees 12 minutes 27 seconds West for a distance of 76.20 feet to a 1/2-inch diameter iron rod set at the northwest corner of the said Trustees of The Presbytery of Houston tract and on the south right-of-way line of the said Texas Pipe Line Company Fee strip; THENCE with the southeast line of the Texas Pipe Line Company Fee strip, South 52 degrees 09 minutes 27 seconds West for a distance of 469.68 feet to the POINT OF BEGINNING containing 0.7321 acres (31,890 square feet) of land. The subject property contains 14.4703 gross acres (630,325 square feet) less 0.7321 acres (31,890 square feet) in the save and except tract for a net acreage of 13.7382 acres (598,435 square feet) of land. SECTION 3. (a) The legal notice of the intention to introduce this Act, setting forth the general substance of this Act, has been published as provided by law, and the notice and a copy of this Act have been furnished to all persons, agencies, officials, or entities to which they are required to be furnished under Section 59, Article XVI, Texas Constitution, and Chapter 313, Government Code. (b) The governor, one of the required recipients, has submitted the notice and Act to the Texas Commission on Environmental Quality. (c) The Texas Commission on Environmental Quality has filed its recommendations relating to this Act with the governor, lieutenant governor, and speaker of the house of representatives within the required time. (d) The general law relating to consent by political subdivisions to the creation of districts with conservation, reclamation, and road powers and the inclusion of land in those districts has been complied with. (e) All requirements of the constitution and laws of this state and the rules and procedures of the legislature with respect to the notice, introduction, and passage of this Act have been fulfilled and accomplished. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 2507 passed the Senate on May 5, 2009, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 2507 passed the House on May 25, 2009, by the following vote: Yeas 142, Nays 0, three present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor