S.B. No. 2510 AN ACT relating to the creation of the Harris County Improvement District No. 18; 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 3879 to read as follows: CHAPTER 3879. HARRIS COUNTY IMPROVEMENT DISTRICT NO. 18 SUBCHAPTER A. GENERAL PROVISIONS Sec. 3879.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "Director" means a board member. (3) "District" means the Harris County Improvement District No. 18. Sec. 3879.002. NATURE OF DISTRICT. The Harris County Improvement District No. 18 is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 3879.003. 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 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 county services provided in the area in the district. Sec. 3879.004. 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, employees, potential 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. 3879.005. 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. 3879.006. 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. 3879.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 3879.008. LIBERAL CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. [Sections 3879.009-3879.050 reserved for expansion] SUBCHAPTER B. BOARD OF DIRECTORS Sec. 3879.051. 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. 3879.052. APPOINTMENT OF DIRECTORS. The Texas Commission on Environmental Quality shall appoint voting directors from persons recommended by the board. Sec. 3879.053. INITIAL VOTING DIRECTORS. (a) The initial board consists of the following voting directors: Pos. No. Name of Director 1 Robert DeForest 2 Burdette Keeland 3 Bobby Deden 4 Dwayne Mason 5 John Murphy (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 3879.052 does not apply to this section. (d) This section expires September 1, 2014. Sec. 3879.054. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve at the pleasure of the voting directors. Sec. 3879.055. 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. 3879.056. 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 3879.057-3879.100 reserved for expansion] SUBCHAPTER C. POWERS AND DUTIES Sec. 3879.101. 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. 3879.102. 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. 3879.103. 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. 3879.104. 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 of Houston, for the provision of law enforcement services in the district for a fee. Sec. 3879.105. 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. 3879.106. 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. 3879.107. STRATEGIC PARTNERSHIP AGREEMENT. The district may negotiate and enter into a written strategic partnership with the City of Houston as provided by Section 43.0751, Local Government Code. Sec. 3879.108. NO EMINENT DOMAIN. The district may not exercise the power of eminent domain. Sec. 3879.109. USE OF CONDUITS. (a) The district may finance, acquire, construct, improve, operate, maintain, or charge a fee for the use of district conduits for: (1) fiber-optic cable; (2) electronic transmission lines; or (3) other types of transmission lines and supporting facilities. (b) The district may not require a person to use a district conduit. Sec. 3879.110. ANNEXATION OR EXCLUSION OF LAND. (a) The district may annex land as provided by Subchapter J, Chapter 49, Water Code. (b) 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 3879.111-3879.150 reserved for expansion] SUBCHAPTER D. PUBLIC PARKING FACILITIES Sec. 3879.151. PARKING FACILITIES AUTHORIZED; OPERATION BY PRIVATE ENTITY. (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. 3879.152. RULES. The district may adopt rules governing the district's public parking facilities. Sec. 3879.153. 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 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 parking facilities; and (2) issue bonds or notes to finance the cost of the district's public parking facilities. [Sections 3879.154-3879.200 reserved for expansion] SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS Sec. 3879.201. 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. 3879.202. 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. 3879.203. 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. 3879.204. 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 notice. Sec. 3879.205. 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. 3879.206. 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. 3879.207. RESIDENTIAL PROPERTY. Section 375.161, Local Government Code, does not apply to a tax imposed by the district or a required payment for a service provided by the district, including water and sewer service. Sec. 3879.208. OPERATION AND MAINTENANCE TAX. (a) If authorized at an election held in accordance with Section 3879.212, 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. 3879.209. CONTRACT TAXES. (a) In accordance with Section 49.108, Water Code, the district may impose a tax other than an operation and maintenance tax and use the revenue derived from the tax to make payments under a contract after the provisions of the contract have been approved by a majority of the district voters voting at an election held for that purpose. (b) A contract approved by the district voters may contain a provision stating that the contract may be modified or amended by the board without further voter approval. Sec. 3879.210. 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 bonds, notes, or other obligations payable wholly or partly from ad valorem taxes, sales and use 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 provided by Section 49.4645, Water Code, does not apply to the district. Sec. 3879.211. 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 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. 3879.212. ELECTIONS REGARDING TAXES AND BONDS. (a) The district may issue, without an election, bonds, notes, and other obligations secured by: (1) revenue other than ad valorem taxes; or (2) contract payments described by Section 3879.209. (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 sales and use 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 that may be acquired by a district by the issuance of district 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. 3879.213. 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. 3879.214. TAX AND ASSESSMENT ABATEMENTS. The district may grant in the manner authorized by Chapter 312, Tax Code, an abatement for a tax or assessment owed to the district. [Sections 3879.215-3879.250 reserved for expansion] SUBCHAPTER F. TAXES FOR CERTAIN DEFINED AREAS AND DESIGNATED PROPERTY Sec. 3879.251. 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. 3879.252. 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 3879.251, the board must call and hold an election as provided by Section 3879.212 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. 3879.253. 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. 3879.254. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES IN DEFINED AREA OR DESIGNATED PROPERTY. On voter approval and adoption of the order described in Section 3879.253, 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. 3879.255. ISSUANCE OF BONDS AND IMPOSITION OF TAXES FOR DEFINED AREA OR DESIGNATED PROPERTY. After the order under Section 3879.253 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. [Sections 3879.256-3879.300 reserved for expansion] SUBCHAPTER G. SALES AND USE TAX Sec. 3879.301. MEANINGS OF WORDS AND PHRASES. Words and phrases used in this subchapter that are defined by Chapters 151 and 321, Tax Code, have the meanings assigned by Chapters 151 and 321, Tax Code. Sec. 3879.302. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS. (a) Except as otherwise provided by this subchapter, Subtitles A and B, Title 2, Tax Code, and Chapter 151, Tax Code, apply to taxes imposed under this subchapter and to the administration and enforcement of those taxes in the same manner that those laws apply to state taxes. (b) Chapter 321, Tax Code, relating to municipal sales and use taxes, applies to the application, collection, change, and administration of a sales and use tax imposed under this subchapter to the extent consistent with this chapter, as if references in Chapter 321, Tax Code, to a municipality referred to the district and references to a governing body referred to the board. (c) Sections 321.106, 321.401, 321.402, 321.403, 321.404, 321.406, 321.409, 321.506, 321.507, and 321.508, Tax Code, do not apply to a tax imposed under this subchapter. Sec. 3879.303. AUTHORIZATION; ELECTION. (a) The district may adopt a sales and use tax to serve the purposes of the district after an election in which a majority of the voters of the district voting in the election authorize the adoption of the tax. (b) The board by order may call an election to authorize a sales and use tax. The election may be held with any other district election. (c) The district shall provide notice of the election and shall hold the election in the manner prescribed by Section 3879.212. (d) The ballots shall be printed to provide for voting for or against the proposition: "Authorization of a sales and use tax in the Harris County Improvement District No. 18 at a rate not to exceed _____ percent." Sec. 3879.304. ABOLISHING SALES AND USE TAX. (a) Except as provided by Subsection (b), the board may abolish the sales and use tax without an election. (b) The board may not abolish the sales and use tax if the district has outstanding debt secured by the tax. Sec. 3879.305. SALES AND USE TAX RATE. (a) On adoption of the tax authorized by this subchapter, there is imposed a tax on the receipts from the sale at retail of taxable items within the district, and an excise tax on the use, storage, or other consumption within the district of taxable items purchased, leased, or rented from a retailer within the district during the period that the tax is in effect. (b) The board shall determine the rate of the tax, which may be in one-eighth of one percent increments not to exceed the maximum rate authorized by the district voters at the election. The board may lower the tax rate to the extent it does not impair any outstanding debt or obligations payable from the tax. (c) The rate of the excise tax is the same as the rate of the sales tax portion of the tax and is applied to the sales price of the taxable item. [Sections 3879.306-3879.350 reserved for expansion] SUBCHAPTER H. HOTEL OCCUPANCY TAXES Sec. 3879.351. HOTEL OCCUPANCY TAX. (a) In this section, "hotel" has the meaning assigned by Section 156.001, Tax Code. (b) For purposes of this section, a reference in Chapter 351, Tax Code, to a municipality is a reference to the district and a reference in Chapter 351, Tax Code, to the municipality's officers or governing body is a reference to the board. (c) Except as otherwise provided by this section, Subchapter A, Chapter 351, Tax Code, governs a hotel occupancy tax authorized by this section, including the collection of the tax. (d) The district may impose a hotel occupancy tax and may use revenue from the tax for any district purpose that is an authorized use of hotel occupancy tax revenue under Chapter 351, Tax Code. (e) The board by order may impose, repeal, increase, or decrease the rate of a tax on a person who, under a lease, concession, permit, right of access, license, contract, or agreement, pays for the use or possession or for the right to the use or possession of a room that: (1) is in a hotel located in the district's boundaries; (2) costs $2 or more each day; and (3) is ordinarily used for sleeping. (f) The amount of the tax may not exceed seven percent of the price paid for a room in a hotel. (g) The district may examine and receive information related to the imposition of hotel occupancy taxes to the same extent as if the district were a municipality. [Sections 3879.352-3879.400 reserved for expansion] SUBCHAPTER I. MUNICIPAL ANNEXATION AND DISSOLUTION Sec. 3879.401. MUNICIPAL ANNEXATION; DISSOLUTION. (a) Section 43.071, Local Government Code, applies to the district, and the district is a "water or sewer district" for purposes of that section. (b) Section 43.075, Local Government Code, applies to the district. (c) Section 375.264, Local Government Code, does not apply to the dissolution of the district by a municipality. SECTION 2. The Harris County Improvement District No. 18 initially includes all territory contained in the following area: TRACT 1 of 3: Being a tract or parcel containing 69.9705 acres of land situated in the F. Limsky Survey, Abstract Number 512, Harris County, Texas, and being all of the called 69.9297 acre tract as described in the deed to Chrymirene Properties Company, Inc., and Springwoods Realty Company recorded under Harris County Clerk's File Number T146401; said 69.9705 acre tract being more particularly described by metes and bounds as follows (all bearings stated herein are based on the Texas State Plane Coordinate System, South Central Zone, NAD 29 (19683 adjustment) as depicted on the Texas Department of Transportation Right-of-Way map for Interstate Highway 45, Account Number 9012-7-30, CSJ 0110-05-068): BEGINNING at a 3/4-inch iron rod found in the south right-of-way line of the Missouri Pacific Railroad (100 feet wide), as described in the deed recorded in Volume 139, Page 452, of the Harris County Deed Records, marking the northwest corner of said called 69.9297 acre tract common with the northeast corner of the called 15.00 acre tract as described in the deed recorded under Harris County Clerk's File Number D798332; THENCE, South 8057'24" East, along said south right-of-way line, a distance of 1,762.44 feet to a 5/8-inch iron rod found marking the northwest corner of the called 10.445 acre tract as described in the deed recorded under Harris County Clerk's File Number F394301; THENCE, South 0249'28" East, along the west line of said called 10.445 acre tract, a distance of 1,630.01 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set in the north right-of-way line of Spring Stuebner Road (60 feet wide); THENCE, South 8654'21" West, along said north right-of-way line, a distance of 1,498.48 feet to a 5/8-inch iron rod found marking the southeast corner aforesaid called 15.00 acre tract; THENCE, North 0253'31" West, along the east line of said called 15.00 acre tract, a distance of 360.27 feet to a 5/8-inch iron rod found marking an angle corner of said called 15.00 acre tract; THENCE, South 8654'45" West, along the east line of said called 15.00 acre tract, a distance of 223.95 feet to a 5/8-inch iron rod found marking an angle corner of said called 15.00 acre tract; THENCE, North 253'31" West, along the east line of said called 15.00 acre tract, a distance of 1,640.27 feet to the POINT OF BEGINNING 69.9705 acres of land. This description is based on the plat of the ALTA/ACSM Land Title Survey prepared by Terra Surveying Company, Inc., dated July 19, 2006, TSC Project Number 0106-0301-A01. TRACT 2 of 3: Being a tract or parcel containing 83.0841 acres of land situated in the F. Limsky Survey, Abstract Number 512, Harris County, Texas, and being all of the called 82.8694 acre tract as described in the deed to Chrymirene Properties Company, Inc., and Springwoods Realty Company recorded under Harris County Clerk's File Number T146401; said 83.0841 acre tract being more particularly described by metes and bounds as follows (all bearings stated herein are based on the Texas State Plane Coordinate System, South Central Zone, NAD 29 (19683 adjustment) as depicted on the Texas Department of Transportation Right-of-Way map for Interstate Highway 45, Account Number 9012-7-30, CSJ 0110-05-068): BEGINNING at a 5/8-inch iron rod found in the south right-of-way line of the Missouri Pacific Railroad (100 feet wide), as described in the deed recorded in Volume 139, Page 452, of the Harris County Deed Records, marking the northeast corner of said called 82.8694 acre tract common with the northwest corner of the called 4.1807 acre tract as described in the deed recorded under Harris County Clerk's File Number H058736; THENCE, South 0215'54" East, along the west line of said called 4.1807 acre tract, a distance of 507.13 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set in the north right-of-way line of Spring Stuebner Road (60 feet wide) marking the southeast corner of the herein described tract; THENCE, South 8654'21" West, along said north right-of-way line, a distance of 3,901.63 feet to a 5/8-inch iron rod found marking the southeast corner of the called 9.4671 acre tract as described in the deed recorded under Harris County Clerk's File Number F773219; THENCE, North 0249'28" West, along the east line of said called 9.4671 acre tract, a distance of 1,346.43 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set in the aforesaid south right-of-way line of the Missouri Pacific Railroad marking the north west corner of the herein described tract; THENCE, South 8057'24" East, along said south right-of-way line a distance of 3,991.87 feet to the POINT OF BEGINNING 83.0841 acres of land. This description is based on the plat of the ALTA/ACSM Land Title Survey prepared by Terra Surveying Company, Inc., dated July 19, 2006, TSC Project Number 0106-0301-A01. TRACT 3 of 3: Being a tract or parcel containing 1,421.1124 acres of land situated in the F. Limsky Survey, Abstract Number 512, Richard Beach Survey, Abstract Number 137, and the James Moore Survey, Abstract Number 583, all in Harris County, Texas, and being all of the called 1,408.0939 acre tract as described in the deed to Chrymirene Properties Company, Inc., and Springwoods Realty Company recorded under Harris County Clerk's File Number T146401, and all of the called 1.4856 acre tract as described in the deed to Springwoods Realty Corporation recorded under Harris County Clerk's File Number T785884; said 1,421.1124 acre tract being more particularly described by metes and bounds as follows (all bearings stated herein are based on the Texas State Plane Coordinate System, South Central Zone, NAD 29 (19683 adjustment) as depicted on the Texas Department of Transportation Right-of-Way map for Interstate Highway 45, Account Number 9012-7-30, CSJ 0110-05-068): BEGINNING at an axle found in the north right-of-way line of the Missouri Pacific Railroad (100 feet wide), as described in the deed recorded in Volume 139, Page 452, of the Harris County Deed Records, marking the southeast corner of said called 1,408.0939 acre tract common with the southwest corner of the called 6.00 acre tract as described in the deed recorded under Harris County Clerk's File Number U173578; THENCE, North 8057'24" West, along said north right-of-way line, a distance of 7,926.68 feet to a 5/8-inch iron rod found marking the southeast corner of the called 140.1685 acre tract as described in the deed recorded under Harris County Clerk's File Number R984278 common with the southwest corner of the herein described tract; THENCE, North 0226'47" West, along the east line of said called 140.1685 acre tract, a distance of 5,748.58 feet to the northwest corner of the herein described tract in the centerline of Spring Creek; THENCE, along the centerline of Spring Creek as meandered in July of 2006 the following Forty-Eight (48) courses and distances; North 3122'36" East, a distance of 142.45 feet; North 4935'22" East, a distance of 116.57 feet; South 8900'36" East, a distance of 292.35 feet; South 5827'00" East, a distance of 85.79 feet; North 8056'30" East, a distance of 164.19 feet; North 6157'17" East, a distance of 269.77 feet; South 6315'16" East, a distance of 349.48 feet; South 8026'06" East, a distance of 208.37 feet; South 4036'00" East, a distance of 274.54 feet; South 8438'53" East, a distance of 113.03 feet; North 5047'47" East, a distance of 543.35 feet; South 8014'02" East, a distance of 212.53 feet; South 4539'14" East, a distance of 195.16 feet; South 2416'46" East, a distance of 186.29 feet; North 8716'43" East, a distance of 92.63 feet; North 6747'36" East, a distance of 416.14 feet; North 2629'19" East, a distance of 95.14 feet; North 945'41" West, a distance of 542.50 feet; North 5246'48" East, a distance of 192.95 feet; South 8436'09" East, a distance of 200.78 feet; North 3909'55" East, a distance of 131.98 feet; North 1359'12" East, a distance of 488.80 feet; North 5554'31" East, a distance of 252.47 feet; North 7150'16" East, a distance of 496.79 feet; North 4534'12" East, a distance of 107.58 feet; North 8130'41" East, a distance of 83.70 feet; South 7538'22" East, a distance of 94.27 feet; South 5803'06" East, a distance of 147.30 feet; South 7645'02" East, a distance of 382.50 feet; North 4806'00" East, a distance of 238.60 feet; North 2225'42" East, a distance of 198.43 feet; North 5954'16" East, a distance of 84.46 feet; North 7224'48" East, a distance of 208.16 feet; South 8443'33" East, a distance of 357.51 feet; North 7230'04" East, a distance of 117.17 feet; South 8726'11" East, a distance of 212.90 feet; South 6913'23" East, a distance of 345.53 feet; South 2906'11" East, a distance of 101.86 feet; North 8954'32" East, a distance of 176.49 feet; North 5926'57" East, a distance of 423.79 feet; North 6631'27" East, a distance of 168.10 feet; South 8332'01" East, a distance of 222.63 feet; North 8420'46" East, a distance of 74.88 feet; North 5440'19" East, a distance of 77.43 feet; North 4103'04" East, a distance of 231.87 feet; North 7135'52" East, a distance of 144.34 feet; South 8133'16" East, a distance of 91.64 feet; South 6642'36" East, a distance of 117.37 feet to the intersection of said centerline and the west right-of-way line of Interstate Highway 45 (width varies); THENCE, along said west right-of-way line the following Sixteen (16) courses and distances South 0311'31" East (called South 0411'25" East), a distance of 366.12 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set; South 0325'46" East (called South 0411'25" East), a distance of 154.92 feet to a found Texas Department of Transportation monument; South 0301'28" East (called South 0411'25" East), a distance of 40.53 feet to a found Texas Department of Transportation from which a found 2-inch iron pipe bears North 4709' East, 0.92 feet; North 8637'31" East (called North 8645'55" East), a distance of 150.29 feet to a found Texas Department of Transportation monument from which a found 5/8-inch iron rod bears North 4310' East, 1.35 feet; South 1015'13" East (called South 1022'11" East), a distance of 647.19 feet (called 649.81 feet) to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set from which a 5/8-inch iron rod found disturbed bears South 0757'24" East, 3.67 feet; South 0453'28" East (called South 0451'18" East), a distance of 303.83 feet (called 300.13 feet) to a found 5/8-inch iron rod; South 0728'17" East, a distance of 99.95 feet to a found 5/8-inch iron rod; South 3941'01" West, a distance of 57.06 feet to a set 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING"; South 8720'13" West, a distance of 10.00 feet to a found Texas Department of Transportation monument; South 0239'47" East, a distance of 80.00 feet to a set 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING"; North 8720'13" East, a distance of 10.00 feet to a set 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING"; South 4626'42" East, a distance of 77.96 feet to a set 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING"; South 0458'48" East, a distance of 208.76 to a found Texas Department of Transportation monument; South 0710'22" East, a distance of 485.85 feet to a set 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING"; South 0523'54" East, a distance of 206.08 feet set 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING"; South 0302'04" East, a distance of 377.43 feet to a 5/8-inch iron rod found marking the northeast corner of the called 10 acre tract as described in the deed recorded in Volume 1048, Page 67, of the Harris County Deed Records; THENCE, South 8819'48" West, along the north line of said called 10 acre tract, a distance of 764.64 feet (called 763.69 feet) to a 1/2-inch iron pipe found marking the northwest corner of said called 10.0 acre tract; THENCE, South 0214'16" East, along the west line of said called 10 acre tract, a distance of 426.96 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking an interior corner of the herein described tract; THENCE, North 8752'57" East, along the south line of said called 10 acre tract, a distance of 770.46 feet (called 771.28 feet) to a 5/8-inch iron rod found in the aforesaid west right-of-way line of Interstate Highway 45 marking the southeast corner of said called 10 acre tract; THENCE, South 0302'04" East, along said west right-of-way line, a distance of 739.59 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking the Point of Curvature of a curve to the left; THENCE, continuing along said west right-of-way line, along said curve to the left having a central angle of 0002'17", an arc distance of 15.34 feet, a radius of 23,099.81 feet, and a chord which bears South 0303'11" East, a distance of 15.34 feet to a 5/8-inch iron rod found marking the northeast corner of the called 6.64 acre tract as described in the deed recorded in Volume 2247, Page 590, of the Harris County Deed Records; THENCE, South 8750'13" West (called South 8745'44" West), along the north line of said called 6.64 acre tract, a distance of 779.22 feet (called 779.49 feet) to a 5/8-inch iron rod found marking the northwest corner of said called 6.64 acre tract; THENCE, South 0212'23" East (called South 0234'59" East), along the east line of said called 6.64 acre tract, a distance of 299.10 feet (called 299.26 feet) to a 1/2-inch iron pipe found marking the northeast corner of the called 1.701 acre tract as described in the deed recorded under Harris County Clerk's File Number T934409; THENCE, South 0216'10" East (called South 0214'48" East), along the west line of said called 1.701 acre tract and then along the west line the called 1.701 acre tract as described in the deed recorded under Harris County Clerk's File Number T934408, a distance of 550.83 feet to a 5/8-inch iron rod found marking the southwest corner of said called 1.701 acre tract; THENCE, North 8617'22" East, along the south line of said called 1.701 acre tract, a distance of 601.99 feet to a 5/8-inch iron rod found marking the southeast corner of said called 1.701 acre tract; THENCE, North 0322'36" West, along the east line of said called 1.701 acre tract, a distance of 550.67 feet (called 550.47 feet) to a 1/2-inch iron rod found in the south line of the aforesaid called 6.64 acre tract; THENCE, North 8611'48" East (called North 8615'38" East), along said south line, a distance of 194.02 feet (called 155.50 feet) to a Texas Department of Transportation monument found marking a point on a curve to the left in the aforesaid west right-of-way line of Interstate Highway 45; THENCE, along said west right-of-way line and said curve to the left having a central angle of 0002'13", an arc distance of 14.88 feet, a radius of 23,099.81 feet, and a chord which bears South 0346'46" East, a distance of 14.88 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking the end of said curve; THENCE, South 0007'56" West, continuing along said west right-of-way line, a distance of 53.41 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking an angle corner of the herein described tract; THENCE, South 0020'00" West (called South 0327'08" East), along the west line of the called 1.590 acre tract as described in the deed recorded in Volume 3274, Page 338, of the Harris County Deed Records, a distance of 642.96 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking an angle corner of the herein described tract; THENCE, South 0318'44" East (called South 0327'08" East), along the west lines of those certain tracts recorded under Harris County Clerk's File Numbers F754657, T406580, U406352, and J617466, a distance of 469.29 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking an angle corner of the herein described tract; THENCE, South 0256'18" East (called South 0327'08" East), along the west line of the called 0.325 acre tract as described in the deed recorded under Harris County Clerk's File Number R872066 and then along the west line of the called 0.729 acre tract as described in the deed recorded under Harris County Clerk's File Number M665530, a distance of 234.23 feet to a 1/2-inch iron pipe found marking the southeast corner of said called 0.729 acre tract; THENCE, North 8645'29" East, along the south line of said called 0.729 acre tract, a distance of 82.21 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set in the aforesaid west right-of-way line of Interstate Highway 45; THENCE, South 0501'46" East, along said west right-of-way line, a distance of 705.37 feet to a Texas Department of Transportation monument found in the north line of the called 1.6920 acre tract as described in the deed recorded under Harris County Clerk's File Number F261338; THENCE, South 8729'17" West, along said north line, distance of 102.64 feet to a 5/8-inch iron rod with plastic cap stamped "TERRA SURVEYING" set marking an angle corner of the herein described tract; THENCE, South 0550'04" East (called South 0327'08" East), along the west line of said called 1.6920 acre tract, a distance of 273.84 feet to 5/8-inch iron rod found marking the southeast corner of the called 12.939 acre tract as described in the deed recorded under Harris County Clerk's File Number U776662; THENCE, South 8617'01" West (called South 8612'32" West), along a north line of said called 12.939 acre tract, a distance of 155.34 feet (called 155.56 feet) to an angle iron found in the east line of the called 3.1232 acre tract; THENCE, North 0345'59" West (called North 0347'28" West), along said east line, a distance of 206.96 feet (called 207.15 feet) to a 1/2-inch iron rod found marking the southeast corner of said called 3.1232 acre tract; THENCE, South 8716'46" West (called South 8715'28" West), along the north line of said called 3.1232 acre tract and then along the north line of the aforesaid called 12.939 acre tract, a distance of 635.71 feet (called 635.50 feet) to a 1/2-inch iron rod found marking the northwest corner of said called 12.939 acre tract; THENCE, South 0214'41" East (called South 0215'34" East), along the west line of said called 12.939 acre tract, a distance of 809.36 feet (called 810.15 feet) to an axle found marking the southwest corner of said called 12.939 acre tract; THENCE, South 0213'55" East, along the west line of the aforesaid called 6.00 acre tract, a distance of 1,708.71 feet to the POINT OF BEGINNING 1421.1124 acres of land. This description is based on the plat of the ALTA/ACSM Land Title Survey prepared by Terra Surveying Company, Inc., dated July 19, 2006, TSC Project Number 0106-0301-A01. 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. 2510 passed the Senate on May 11, 2009, by the following vote: Yeas 31, Nays 0. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 2510 passed the House on May 26, 2009, by the following vote: Yeas 142, Nays 0, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor