S.B. No. 2276 AN ACT relating to the creation of Lakewood Improvement District of Harris County; providing authority to issue bonds; providing authority to impose assessments, fees, or taxes. 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 3951 to read as follows: CHAPTER 3951. LAKEWOOD IMPROVEMENT DISTRICT OF HARRIS COUNTY SUBCHAPTER A. GENERAL PROVISIONS Sec. 3951.001. DEFINITIONS. In this chapter: (1) "Board" means the district's board of directors. (2) "City" means the City of Houston. (3) "County" means Harris County. (4) "Director" means a board member. (5) "District" means the Lakewood Improvement District of Harris County. Sec. 3951.002. NATURE OF DISTRICT. The district is a special district created under Section 59, Article XVI, Texas Constitution. Sec. 3951.003. 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, the 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, and to accomplish the redevelopment of land in the district. (c) This chapter and the creation of the district may not be interpreted to relieve the city or the county from providing the level of services provided as of the effective date of the Act enacting this chapter to the area in the district. The district is created to supplement and not to supplant city or county services provided in the district. Sec. 3951.004. 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 further the public purposes of: (1) developing and diversifying the economy of the state; (2) eliminating unemployment and underemployment; and (3) developing or expanding 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, parking facilities, and conduit facilities 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 road, bridge, 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 or road 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. 3951.005. INITIAL DISTRICT TERRITORY. (a) The district is initially composed of the territory described by Section 2 of the Act enacting this chapter. (b) The boundaries and field notes contained in Section 2 of the Act enacting 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 bonds for the purposes for which the district is created or to pay the principal of and interest on bonds; (3) right to impose or collect an assessment or tax; or (4) legality or operation. Sec. 3951.006. 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; (3) an enterprise zone created under Chapter 2303, Government Code; or (4) an industrial district created under Chapter 42, Local Government Code. Sec. 3951.007. APPLICABILITY OF MUNICIPAL MANAGEMENT DISTRICTS LAW. Except as otherwise provided by this chapter, Chapter 375, Local Government Code, applies to the district. Sec. 3951.008. CONSTRUCTION OF CHAPTER. This chapter shall be liberally construed in conformity with the findings and purposes stated in this chapter. SUBCHAPTER B. BOARD OF DIRECTORS Sec. 3951.051. 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 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 nine voting directors. Sec. 3951.052. APPOINTMENT OF VOTING DIRECTORS. The Texas Commission on Environmental Quality shall appoint voting directors from persons recommended by the board. Sec. 3951.053. NONVOTING DIRECTORS. The board may appoint nonvoting directors to serve at the pleasure of the voting directors. Sec. 3951.054. 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. 3951.055. 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. Sec. 3951.056. INITIAL VOTING DIRECTORS. (a) The initial board consists of: Pos. No. Name of Director: Pos. No. Name of Director: Pos. No. Name of Director: 1 ____________________ 1 ____________________ 1 ____________________ 2 ____________________ 2 ____________________ 2 ____________________ 3 ____________________ 3 ____________________ 3 ____________________ 4 ____________________ 4 ____________________ 4 ____________________ 5 ____________________ 5 ____________________ 5 ____________________ (b) Of the initial directors, the terms of directors appointed for positions one through three expire June 1, 2019, and the terms of directors appointed for positions four and five expire June 1, 2021. (c) Section 3951.052 does not apply to this section. (d) This section expires September 1, 2021. SUBCHAPTER C. POWERS AND DUTIES Sec. 3951.101. GENERAL POWERS AND DUTIES. The district has the powers and duties necessary to accomplish the purposes for which the district is created. Sec. 3951.102. IMPROVEMENT PROJECTS AND SERVICES. The district may provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service using any money available to the district, or contract with a governmental or private entity to provide, design, construct, acquire, improve, relocate, operate, maintain, or finance an improvement project or service authorized under this chapter or Chapter 375, Local Government Code. Sec. 3951.103. DEVELOPMENT CORPORATION POWERS. The district, using money available to 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 under that chapter. Sec. 3951.104. 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 to be a local government corporation created under Subchapter D, 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 Subchapter D, Chapter 431, Transportation Code, except that a board member is not required to reside in the district. Sec. 3951.105. AGREEMENTS; GRANTS. (a) As provided by Chapter 375, Local Government Code, 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. 3951.106. LAW ENFORCEMENT SERVICES. To protect the public interest, the district may contract with a qualified party, including the county or the city, to provide law enforcement services in the district for a fee. Sec. 3951.107. 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. 3951.108. ECONOMIC DEVELOPMENT. (a) The district may engage in activities that accomplish the economic development purposes of the district. (b) 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. (c) The district may create economic development programs and exercise the economic development powers provided to municipalities by: (1) Chapter 380, Local Government Code; and (2) Subchapter A, Chapter 1509, Government Code. Sec. 3951.109. PARKING FACILITIES. (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 lots, garages, parking terminals, or other structures or accommodations for parking motor vehicles off the streets and related appurtenances. (b) 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. (c) The district's parking facilities are parts of and necessary components of a street and are considered to be a street or road improvement. (d) The development and operation of the district's parking facilities may be considered an economic development program. Sec. 3951.110. ANNEXATION AND 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. Sec. 3951.111. NAVIGATION DISTRICT POWERS. (a) The district has the powers provided by the general law of this state applicable to navigation districts created under Section 59, Article XVI, Texas Constitution, including Chapters 60 and 62, Water Code. (b) The district may purchase, construct, acquire, own, operate, maintain, improve, or extend, inside and outside the district, a canal, waterway, bulkhead, dock, or other improvement or facility necessary or convenient to accomplish the navigation purposes of the district. Sec. 3951.112. ROAD DISTRICT POWERS. The district has the powers provided by the general laws relating to road districts and road utility districts created under Section 52(b), Article III, Texas Constitution, including Chapters 257 and 441, Transportation Code. Sec. 3951.113. ROAD STANDARDS AND REQUIREMENTS. (a) A road project must meet all applicable construction standards, zoning and subdivision requirements, and regulations of each municipality in whose corporate limits or extraterritorial jurisdiction the road project is located. (b) If a road project is not located in the corporate limits or extraterritorial jurisdiction of a municipality, the road project must meet all applicable construction standards, subdivision requirements, and regulations of each county in which the road project is located. (c) If the state will maintain and operate the road, the Texas Transportation Commission must approve the plans and specifications of the road project. Sec. 3951.114. PROPERTY OF CERTAIN UTILITIES EXEMPT FROM ASSESSMENTS AND FEES. The district may not impose an assessment, impact fee, or standby fee on the property, including the equipment, rights-of-way, easements, 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, or a person who owns pipelines used for the transportation or sale of oil or gas or a product or constituent of oil or gas; (3) a person who owns pipelines used for the transportation or sale of carbon dioxide; (4) a telecommunications provider as defined by Section 51.002, Utilities Code; or (5) a cable service provider or video service provider as defined by Section 66.002, Utilities Code. Sec. 3951.115. USE OF ELECTRICAL OR OPTICAL LINES. (a) The district may impose an assessment to pay the cost of: (1) burying or removing electrical power lines, telephone lines, cable or fiber-optic lines, or any other type of electrical or optical line; and (2) removing poles and any elevated lines using the poles. (b) The district may finance, acquire, construct, improve, operate, maintain, or charge fees for the use of the district conduits for another person's: (1) telecommunications network; or (2) fiber-optic cable. (c) Consistent with Title 2, Utilities Code, the district may finance, construct, or maintain conduits for: (1) electronic transmission and distribution lines and supporting facilities; or (2) other types of transmission and distribution lines and supporting facilities. (d) The district may not require a person to use a district conduit. Sec. 3951.116. NO EMINENT DOMAIN POWER. The district may not exercise the power of eminent domain. SUBCHAPTER D. GENERAL FINANCIAL PROVISIONS; ASSESSMENTS Sec. 3951.151. 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 district money. Sec. 3951.152. 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. 3951.153. 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 the county. Sec. 3951.154. 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. 3951.155. TAX AND ASSESSMENT ABATEMENTS. The district may designate reinvestment zones and may grant abatements of a tax or assessment on property in the zones. Sec. 3951.156. RESIDENTIAL PROPERTY NOT EXEMPT. Section 375.161, Local Government Code, does not apply to the district. Sec. 3951.157. 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. SUBCHAPTER E. TAXES AND BONDS Sec. 3951.201. 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 3951.203. (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 that may be acquired by a district by the issuance of its bonds may be submitted as a single proposition or as several propositions to be voted on at the election. Sec. 3951.202. OPERATION AND MAINTENANCE TAX. (a) If authorized by a majority of the district voters voting at an election held in accordance with Section 3951.201, the district may impose an 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. 3951.203. 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. 3951.204. AUTHORITY TO BORROW MONEY AND TO ISSUE BONDS AND OTHER OBLIGATIONS. (a) The district may borrow money on terms 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, 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. 3951.205. 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, for each year that 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. 3951.206. BONDS FOR ROAD PROJECTS. At the time of issuance, the total principal amount of bonds or other obligations issued or incurred to finance road projects and payable from ad valorem taxes may not exceed one-fourth of the assessed value of the real property in the district. SUBCHAPTER F. SALES AND USE TAX Sec. 3951.251. MEANINGS OF WORDS AND PHRASES. A word or phrase used in this subchapter that is defined by Chapter 151 or 321, Tax Code, has the meaning assigned by Chapter 151 or 321, Tax Code. Sec. 3951.252. APPLICABILITY OF CERTAIN TAX CODE PROVISIONS. (a) The provisions of Subchapters C, D, E, and F, Chapter 323, Tax Code, relating to county sales and use taxes apply to the application, collection, and administration of a sales and use tax imposed under this subchapter to the extent consistent with this chapter, as if references in Chapter 323, Tax Code, to a county referred to the district and references to a commissioners court referred to the board. (b) Sections 323.401-323.404 and 323.505, Tax Code, do not apply to a tax imposed under this subchapter. Sec. 3951.253. AUTHORIZATION; ELECTION. (a) The district shall adopt, reduce, or repeal the sales and use tax authorized by this subchapter at an election in which a majority of the voters of the district voting in the election approve the adoption, reduction, or repeal of the tax, as applicable. (b) The board by order shall call an election to adopt, reduce, or repeal a sales and use tax. The election shall be held on the first authorized uniform election date that occurs after the time required by Section 3.005, Election Code. (c) The district shall provide notice of the election and shall hold the election in the manner prescribed by Chapter 54, Water Code, for bond elections for municipal utility districts. (d) The ballots shall be printed to provide for voting for or against the following appropriate proposition: (1) "Adoption of a ___ percent district sales and use tax in the district"; (2) "Reduction of the district sales and use tax in the district from ___ percent to ___ percent"; or (3) "Repeal of the district sales and use tax in the district." Sec. 3951.254. EFFECTIVE DATE OF TAX. A tax imposed under this subchapter or the repeal or reduction of a tax under this subchapter takes effect on the first day of the first calendar quarter that occurs after the date the comptroller receives the copy of the resolution as required by Section 323.405(b), Tax Code. Sec. 3951.255. SALES AND USE TAX RATE. (a) On adoption of the tax authorized by this subchapter, there is imposed a tax of two percent, or the maximum rate at which the combined tax rate of all local sales and use taxes in any location in the district does not exceed two percent, on the receipts from the sale at retail of taxable items in the district, and an excise tax on the use, storage, or other consumption in the district of taxable items purchased, leased, or rented from a retailer during the period that the tax is in effect. (b) 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. Sec. 3951.256. EXAMINATION AND RECEIPT OF INFORMATION. The district may examine and receive information related to the imposition of a sales and use tax to the same extent as if the district were a municipality. Sec. 3951.257. ALTERNATIVE METHOD OF IMPOSITION. Notwithstanding any other provision of this subchapter, the district may impose the sales and use tax as provided by Subchapter F, Chapter 383, Local Government Code, instead of as provided by the other provisions of this subchapter. SUBCHAPTER G. DEFINED AREAS Sec. 3951.301. 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. 3951.302. PROCEDURE FOR ELECTION. (a) Before the district may impose an ad valorem tax or issue bonds payable from ad valorem taxes of the defined area or designated property, the board shall hold an election in the defined area or in the designated property only. (b) The board may submit the issues to the voters on the same ballot to be used in another election. Sec. 3951.303. DECLARING RESULT AND ISSUING ORDER. 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. Sec. 3951.304. TAXES FOR SERVICES, IMPROVEMENTS, AND FACILITIES IN DEFINED AREAS OR DESIGNATED PROPERTY. On voter approval and adoption of the order described by Section 3951.303, 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. 3951.305. ISSUANCE OF BONDS FOR DEFINED AREA OR DESIGNATED PROPERTY. After the order under Section 3951.303 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. SUBCHAPTER H. DISSOLUTION OF DISTRICT Sec. 3951.351. DISSOLUTION. (a) Except as provided by Subsection (b), the board: (1) may dissolve the district; and (2) shall dissolve the district on receipt of a written petition requesting dissolution signed by the owners of 75 percent of the acreage of real property in the district. (b) The board may not dissolve the district until the district's outstanding indebtedness or contractual obligations have been repaid or discharged. (c) After the board dissolves the district, the board shall transfer ownership of all district property and assets to the county. SECTION 2. The Lakewood Improvement District of Harris County initially includes all the territory contained in the following area: All bearings, distance and acreages are grid and are referenced to the State Plane Coordinate System, Texas South Central Zone, NAD83, U. S. survey feet. Mapping angle is +01°54'04" and the scale factor is 0.999915022. TRACT I BEGINNING at an iron rod with cap marked `CENTERPOINT ENERGY' found at the northeast corner of a called 102.152 acre tract recorded in Document No. C683627, Deed Records of Harris County, Texas and in the west line of the T.& N.O. Rail Road right of way (variable width). Said iron rod has a State Plane coordinate value of N: 13895997.02 and E: 3210310.99. THENCE S 47° 04'28" W with the west line of said Rail Road right of way a distance of 926.77 feet to a point for corner. THENCE continuing with the west line of said Rail Road right of way with the arc of a curve to the left having a chord direction of S 35° 23' 19 W, and a radius of 2451.30, a distance of 1101.40 feet to a point for corner. THENCE S 23° 06' 25" W with the west line of said Rail Road right of way a distance of 47.01 feet to a 1/2 inch iron rod with cap marked '5502' set from which a 26" pine marked 'X' bears North 6.5 feet. THENCE S 88°03'39" W with the north line of a called 304.5696 acre tract recorded in Document No. 20130230098 a distance of 2407.13 feet to an iron rod found with cap marked 'RPLS 4615'. THENCE S 87°58'14" W with the north line of the said called 304.5696 acre tract and the south line of the herein described tract a distance of 4489.98 feet to a 1/2 inch iron pipe found from which a 28" sweet gum marked 'X' bears N58°W 3 feet. THENCE S 88°10'16" W with the north line of the said 304.5696 acre tract a distance of 3159.89 feet to the left bank of the San Jacinto River on the line of mean higher high water. THENCE up the river with its meanders on the line of mean higher high water: N 31°25'35" W 84.67 feet; N 15°33'56" W 191.85 feet; N 04°38'06" W 258.15 feet; N 14°00'39" W 87.13 feet; N 20°54'29" W 155.32 feet; N 26°38'13" W 215.05 feet; N 39°38'48" W 353.07 feet; N 50°07'18" W 307.76 feet; N 54°25'26" W a distance of 278.56 feet to a point for corner at the southwest corner of said called 102.152 acre tract. THENCE N 88°23'12" E with the south line of the said called 102.152 acre tract and the north line of the herein described tract 9551.32 feet to an iron rod found with blue cap. THENCE N87°53'38"E with the south line said called 102.152 acre tract a distance of 2593.16 feet to 1/2 inch iron rod set with cap marked '5502'. THENCE S 85°24'11" E with the south line of the said called 102.152 acre tract and the north line of the herein described tract a distance of 225.32 feet to the PLACE OF BEGINNING, containing 394.12 acres of land. TRACT II BEGINNING at a 1" iron pipe found at the most easterly corner of a called 56.50 acre tract recorded in Volume 1458, Page 1, Deed Records of Harris County, Texas, in the south line of the San Jacinto River Authority East Canal right of way, recorded in Volume 1294, Page 256, Deed Records of Harris County, Texas, and at the most northerly northwest corner of this tract, and having a Texas State Plane coordinate value of N: 13902035.22 and E: 3197556.06. THENCE S 58° 23' 02" E with the south line of said San Jacinto River Authority East Canal right of way, and a north line of this tract, a distance of 1,097.21 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with the south line of said San Jacinto River Authority East Canal right of way, and a north line of this tract, with the arc of a curve to the left having a chord direction of S 84° 10' 00" E, a radius of 317.72, a distance of 298.83 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 68° 53' 20" E continuing with the south line of said San Jacinto River Authority East Canal right of way, and a north line of this tract a distance of 1,833.89 feet to a point. THENCE N 72° 25' 46" E continuing with the south line of said San Jacinto River Authority East Canal, and a north line of this tract a distance of 567.07 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of a called 2.866 acre tract recorded in Harris County Clerk's File E018138. THENCE S 01° 15' 13" E with the west line of said called 2.866 acre tract a distance of 329.82' to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southwest corner of said called 2.866 acre tract. THENCE N 88° 44' 57" E with the south line of said called 2.866 acre tract, a distance of 330.05 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southeast corner of said called 2.866 acre tract. THENCE N 01° 15' 14" W with the east line of said called 2.866 acre tract a distance of 426.18 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northeast corner of said called 2.866 acre tract, in the south line of said San Jacinto River Authority East Canal right of way. THENCE N 72° 28' 26" E continuing with the south line of said San Jacinto River Authority East Canal right of way, and a north line of this tract a distance of 312.52 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at a northerly corner of this tract and the northwest corner of Newport Subdivision, Section 4, a subdivision recorded in Volume 206, Page 145, Map Records of Harris County, Texas, from which an iron rod found with cap marked "RUSS AND PARK SURVEYING" bears N 72° 29' 29" E a distance of 167.92 feet. THENCE S 00° 36' 34" E with a west line of said Newport Subdivision, Section 4, and a northerly east line of this tract a distance of 1,261.04 feet to a 1/2 inch iron rod found at the most westerly southwest corner of said Newport Subdivision, Section 4. THENCE N 89° 29' 03" E with a south line of said Newport Subdivision, Section 4 and a north line of this tract a distance of 71.96 feet to a 1/2 inch iron rod found at the most southerly northwest corner of a called 9.29 acre tract (Called Tract 6), recorded in Harris County Clerk's File Z432808. THENCE S 18° 57' 14" W with the west line of said called 9.29 acre tract, passing the southwest corner of said called 9.29 acre tract and the northwest corner of a called 4.29 acre tract recorded in File No. T528516, Deed Records of Harris County, Texas, and continuing a total distance of 512.10 feet to 1/2 inch iron rod with cap marked "SHINE 5502" set at the southwest corner of said called 4.29 acre tract. THENCE S 48° 47' 48" E with the southwest line of said called 4.29 acre tract a distance of 660.77 feet to a 1/2 inch iron rod found at the southeast corner of said called 4.29 acre tract in the west line of Newport Subdivision, Section 2, a subdivision recorded in Volume 195, Page 35, Map Records of Harris County, Texas. THENCE S 04° 57' 10" W with the west line of said Newport Subdivision, Section 2, a distance of 1,073.79 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set in the south right of way line of Diamondhead Boulevard (100 feet wide right of way) and at an interior corner of this tract. THENCE with the south right of way line of said Diamondhead Boulevard with the arc of a curve to the left having a chord direction of N 89° 25' 20" E, a radius of 2,049.25, a distance of 560.15 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of a called 175.61 acre tract recorded in T528516, Deed Records of Harris County, Texas. THENCE S 01° 23' 48" E with the west line of said called 175.61 acre tract a distance of 2,298.34 feet to a 60D nail set at the southwest corner of said called 175.61 acre tract and an interior corner of this tract. THENCE N 88° 30' 12" E with the south line of said called 175.61 acre tract a distance of 2,983.90 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southeast corner of said called 175.61 acre tract. THENCE with the east line of said called 175.61 acre tract with the arc of a curve to the right having a chord direction of N 15° 16' 49" E, a radius of 2,100.00 feet, a distance of 366.97 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 20° 17' 11" E continuing with the east line of said called 175.61 acre tract a distance of 509.92 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with the east line of said called 175.61 acre tract with the arc of a curve to the right having a chord direction of N 26° 19' 31" E, a radius of 2,100.00 feet, a distance of 440.98 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 32° 20' 27" E continuing with the east line of said called 175.61 acre tract a distance of 140.56 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with the east line of said called 175.61 acre tract with the arc of a curve to the left having a chord direction of N 06° 59' 15" E, a radius of 1,200.04 feet, a distance of 949.49 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northeast corner of said called 175.61 acre tract, in the south right of way of said Diamondhead Boulevard. THENCE N 75° 17' 09" E with the south right of way line of said Diamondhead Boulevard, and a north line of this tract, a distance of 769.43 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with the south right of way line of said Diamondhead Boulevard with the arc of a curve to the right having a chord direction of N 77° 44' 32" E, a radius of 1,951.36 feet, a distance of 167.12 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of Newport Subdivision, Section 8, a subdivision recorded in Volume 288, Page 21, Map Records of Harris County, Texas, and a northeast corner of this tract. THENCE S 08° 03' 08" W with a west line of said Newport Subdivision, Section 8, a distance of 515.74 feet to a 1/2 inch iron rod found. THENCE S 62° 25' 36" E continuing with the west line of said Newport Subdivision, Section 8, a distance of 177.89 feet to a 1/2 inch iron rod found. THENCE S 36° 39' 06" E continuing with the west line of said Newport Subdivision, Section 8, a distance of 59.96 feet to a 1/2 inch iron rod found. THENCE S 58° 36' 12" E continuing with the west line of said Newport Subdivision, Section 8, a distance of 96.09 feet to a 1/2 inch iron rod found at a northerly southwest corner of said Newport Subdivision, Section 8. THENCE N 88° 23' 50" E with a northerly south line of said Newport Subdivision, Section 8, a distance of 51.27 feet to a 1/2 inch iron rod found at the northwest corner of a called 14.1645 acre tract recorded in File No. S031457, Deed Records of Harris County, Texas. THENCE S 02° 21' 10" E with the west line of said called 14.1645 acre tract a distance of 1,333.31 feet to a 1/2 inch iron rod found at the southwest corner of said called 14.1645 acre tract, from which a 42" Sycamore bears N 44° E a distance of 36.60 feet, a 12" corner post with old barbed wire bears N 04° W a distance of 12.50 feet, and the north bank of Gum Gully bears South, 26.70 feet. THENCE N 87° 37' 51" E with the south line of said called 14.1645 acre tract, passing the southeast corner of said called 14.1645 acre tract and the southwest corner of a called 15.1515 acre tract recorded in File No. 20070632536, Deed Records of Harris County, Texas, a total distance of 1, 545.45 feet to a 60D Nail found in fence post at the southeast corner of said called 15.1515 acre tract. THENCE N 02° 49' 23" W with the west line of said called 15.1515 acre tract a distance of 326.36 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at a southwest corner of said Newport Subdivision, Section 8. THENCE N 88° 16' 59" E with a south line of said Newport Subdivision, Section 8, and a north line of this tract a distance of 125.02 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 75° 51' 35" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 83.64 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE with a west line of said Newport Subdivision, Section 8, and an east line of this tract with the arc of a curve to the right having a chord direction of S 10° 15' 26" W, a radius of 250.00 feet, a distance of 162.32 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with a west line of said Newport Subdivision, Section 8, and an east line of this tract with the arc of a curve to the left having a chord direction of S 13° 34' 14" W, a radius of 150.00 feet, a distance of 80.05 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 01° 43' 01" E continuing with an east line of said Harris County Flood Control District drainage easement, a west line of said Newport Subdivision, Section 8, and an east line of this tract a distance of 120.00 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 09° 20' 38" W continuing with a west line of said Newport Subdivision, Section 8, and an east line of this tract a distance of 57.36 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 20° 21' 57" W continuing a west line of said Newport Subdivision, Section 8, and an east line of this tract a distance of 165.00 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 20° 24' 23" E continuing with a west line of said Newport Subdivision, Section 8, and an east line of this tract a distance of 381.48 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 32° 47' 17" E continuing with a west line of said Newport Subdivision, Section 8, and an east line of this tract a distance of 244.44 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at a southwest corner of said Newport Subdivision, Section 8 and an interior corner of this tract. THENCE S 81° 16' 59" E with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 195.69 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 04° 41' 04" W continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 30.71 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 85° 27' 13" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 27.39 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 04° 01' 49" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 30.29 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 08° 43' 00" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 207.55 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 81° 16' 59" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 100.00 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 08° 13' 08" W continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 282.01 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at a southerly corner of said Newport Subdivision, Section 8. THENCE continuing with a south line of said Newport Subdivision, Section 8, a north line of this tract, with the arc of a curve to the left having a chord direction of N 60° 58' 25" E, a radius of 400.00 feet, a distance of 195.69 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 46° 57' 29" E continuing with a south line of said Newport Subdivision, Section 8, and a north line of this tract a distance of 202.17 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract, with the arc of a curve to the right having a chord direction of N 53° 03' 29" E, a radius of 450.00 feet, a distance of 95.82 feet to a point. THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract with the arc of a curve to the left having a chord direction of N 45° 33' 29" E, a radius of 400.00 feet, a distance of 189.89 feet to a point. THENCE N 31° 57' 29" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 228.06 feet to a point. THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract, with the arc of a curve to the right having a chord direction of N 45° 27' 29" E, a radius of 500.00 feet, a distance of 235.62 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract, with the arc of a curve to the left having a chord direction of N 32° 42' 29" E, a radius of 300.00 feet, a distance of 274.89 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract with the arc of a curve to the right having a chord direction of N 14° 31' 50" E, a radius of 500.00 feet, a distance of 140.89 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 57° 42' 31" W continuing with a south line of said Newport Subdivision, Section 8, and a north line of this tract a distance of 92.28 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 32° 17' 29" E continuing with a south line of said Newport Subdivision, Section 8, and a north line of this tract a distance of 60.00 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 57° 42' 31" E continuing with a south line of said Newport Subdivision, Section 8, and a north line of this tract a distance of 85.49 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set. THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract with the arc of a curve to the right having a chord direction of N 36° 29' 38" E, a radius of 500.00 feet, a distance of 118.64 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 43° 17' 29" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 374.07 feet to a point. THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract with the arc of a curve to the right having a chord direction of N 52° 47' 29" E, a radius of 600.00 feet, a distance of 198.97 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 62° 17' 29" E continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract a distance of 68.45 feet to a point. THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract with the arc of a curve to the left having a chord direction of N 33° 14' 01" E, a radius of 139.25 feet, a distance of 141.24 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing with a south line of said Newport Subdivision, Section 8 and a north line of this tract with the arc of a curve to the left having a chord direction of N 00° 55' 12" E, a radius of 300.00 feet, a distance of 34.09 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southerly southeast corner of said Newport Subdivision, Section 8 and in the west line of The City of Crosby Town Site, recorded in Volume 7, Page 26, Deed Records of Harris County, Texas, also being the west line of a tract of land referenced as "Tract 1" and "Tract 2" recorded in File No. W314743, Deed Records of Harris County, Texas. THENCE S 02° 45' 41" E with a west line of said City of Crosby Town Site, the west line of said called "Tract 1" and "Tract 2", and an east line of this tract a distance of 229.20 feet to a point in the centerline of Jackson Bayou. THENCE with a south line of said City of Crosby Town Site, a south line of said called "Tract 1" and "Tract 2", a north line of this tract, along the centerline of said Jackson Bayou the following bearings and distances: N 65° 32' 07" E 30.32 feet N 76° 12' 19" E 10.85 feet N 19° 33' 49" E 41.24 feet N 40° 05' 08" W 34.88 feet N 09° 21' 28" W 46.05 feet N 26° 11' 16" E 45.20 feet N 60° 33' 12" E 80.04 feet N 48° 22' 25" E 110.85 feet N 50° 01' 28" E 64.58 feet N 78° 38' 48" E 76.53 feet N 62° 45' 53" E 42.10 feet N 26° 13' 09" E 43.70 feet S 17° 27' 48" E 44.35 feet THENCE S 04° 37' 07" E continuing with a south line of said City of Crosby Town Site, a south line of said called "Tract 1" and "Tract 2", a north line of this tract, along the centerline of said Jackson Bayou, passing the southerly southeast corner of said called "Tract 1" and "Tract 2", and continuing a total distance of 90.52 feet to a point. THENCE continuing with a south line of said City of Crosby Town Site, a north line of this tract, along the centerline of said Jackson Bayou the following bearings and distances: S 31° 33' 28"E 19.00 feet S 89° 42' 03" E 32.70 feet S 65° 08' 41" E 86.19 feet THENCE S 82° 49' 14" E continuing with a south line of said City of Crosby Town Site, a north line of this tract, along the centerline of said Jackson Bayou a distance of 54.91 feet to a point at the most easterly northeast corner of this tract and the northwest corner of a called 7.6429 acre tract recorded in File No. E429933, Deed Records of Harris County, Texas. THENCE S 16° 01' 51" E with the west line of said called 7.6429 acre tract and the most easterly east line of this tract, at a distance of 56.24 feet pass a 1/2 inch iron rod with cap marked "SHINE 5502" set for reference, from which an iron rod with cap marked "PRECISION SURVEYORS" found at the northeast corner of Lot 1, Block 3, said City of Crosby Town Site bears N 19° 38' 01" E a distance of 409.41 feet, an iron rod with cap marked "PRECISION SURVEYORS found in the east line of said Lot 1, Block 3, City of Crosby Town Site bears N 85° 43' 47" E a distance of 471.48 feet, and continuing a total distance of 781.81 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southwest corner of said called 7.6429 acre tract, in the north right of way of T. & N. 0. Railroad, a variable width right of way, and at the most easterly southeast corner of this tract. THENCE S 46° 52' 02" W with the most easterly east line of this tract and the west right of way line of said T. & N. 0. Railroad, a distance of 1,876.95 feet to a 1" iron pipe found in the north line of a called 102.152 acre tract (Tract 2), recorded in File No. C683627, Deed Records of Harris County, Texas, and at the southeast corner of this tract, from which an iron rod found with cap marked "CENTERPOINT ENERGY" found at the northeast corner of herein described Tract I bears S 46° 45' 17" W, a distance of 556.58 feet. THENCE S 87° 53' 52" W with the north line of said called 102.152 acre tract and the south line of this tract a distance of 2,233.36 feet to a 1/4 inch iron rod found at the southeast corner of a called 21.234 acre tract recorded in File No. G553519, Deed Records of Harris County, Texas, and a southwest corner of this tract from which a found 1" iron pipe bears S 87° 53' 43" W, a distance of 999.06 feet. THENCE N 01° 06' 07" W with the east line of said called 21.234 acre tract and a west line of this tract, passing the southeast corner of a called 0.116 acre tract recorded in File No. P220412, Deed Records of Harris County, Texas, a total distance of 308.90 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northeast corner of said called 0.116 acre tract recorded in File No. P220412, and an interior corner of this tract. THENCE N 81° 29' 07" W with the north line of said called 0.116 acre tract recorded in File No. P220412, and a south line of this tract, at a distance of 100.00 feet pass the northwest corner of said called 0.116 acre tract and the northeast corner of a called 0.116 acre tract recorded in File No. R256220, Deed Records of Harris County, Texas, at a distance of 200.00 feet pass the northwest corner of said called 0.116 acre tract recorded in File No. R256220 and the northeast corner of a called 0.1164 acre tract recorded in File No. S300312, Deed Records of Harris County, Texas, at a distance of 300.00 feet pass the northwest corner of said called 0.1164 acre tract recorded in File No. S300312 and the northeast corner of a called 0.116 acre tract recorded in File No. R304758, Deed Records of Harris County, Texas, at a distance of 400.00 feet, pass the northwest corner of said called 0.116 acre tract recorded in File No. R304758 and the northeast corner of a called 0.116 acre tract recorded in File No. P254365, Deed Records of Harris County, Texas, at a distance of 500.00 feet pass the northwest corner of said called 0.116 acre tract recorded in File No. P254365 and a northeast corner of said called 21.234 acre tract, continuing along a north line of said called 21.234 acre tract and a south line of this tract a total distance of 529.21 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 51° 33' 28" W a distance of 799.95 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of said called 21.234 acre tract and at an interior corner of this tract. THENCE S 25° 27' 04" W with the west line of said called 21.234 acre tract and an east line of this tract, a distance of 528.15 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of a called 2.1614 acre tract recorded in File No. K076581, Deed Records of Harris County, Texas. THENCE N 65° 59' 23" W with a north line of said called 2.1614 acre tract and a northerly south line of this tract, a distance of 929.77 feet to a found iron rod with cap marked "RPLS 4615". THENCE continuing with the north line of said called 2.1614 acre tract and a northerly south line of this tract with the arc of a curve to the left having a chord direction of N 85° 42' 42" W, a radius of 509.50 feet, a distance of 238.49 feet to a found iron rod with cap marked "RPLS 4615". THENCE S 74° 30' 20" W continuing with the north line of said called 2.1614 acre tract and a northerly south line of this tract a distance of 417.76 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of said called 2.1614 acre tract and an interior corner of this tract. THENCE S 15° 29' 23" E with the west line of said called 2.1614 tract and an east line of this tract a distance of 60.00 feet to an iron rod with cap marked "RPLS 4615" found at the southwest corner of said called 2.1614 acre tract. THENCE N 74° 30' 26" E with the south line of said called 2.1614 acre tract and a southerly north line of this tract a distance of 418.00 feet to a found iron rod with cap marked "RPLS 4615". THENCE continuing with the south line of said called 2.1614 acre tract and a southerly north line of this tract with the arc of a curve to the right having a chord direction of S 83° 40' 53" E, a radius of 595.34 feet, a distance of 196.44 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE S 65° 59' 23" E continuing with the south line of said called 2.164 acre tract and a southerly north line of this tract a distance of 927.30 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southeast corner of said called 2.1614 acre tract in the west line of said called 21.234 acre tract. THENCE S 25° 16' 50" W with the west line of said called 21.234 acre tract and an east line of this tract, a distance of 441.83 feet to an iron rod with cap marked "RPLS 4615" found at the southwest corner of said called 21.234 acre tract, in the north line of said called 102.152 acre tract and at a southeast corner of this tract, from which a found 1" iron pipe bears N 88° 29' 40" E, a distance of 600.63 feet. THENCE S 88° 21' 40" W with a south line of this tract and the north line of said called 102.152 acre tract, at a distance of 7,048.87 feet, pass a found 3/4" iron rod and continue a total distance of 7,133.88 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southeast corner of a called 1 acre tract recorded in File No. H076771, Deed Records of Harris County, Texas. THENCE N 01° 38' 26" W with a west line of this tract and the east line of said called 1 acre tract, a distance of 208.71 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northeast corner of said called 1 acre tract. THENCE S 88° 21' 40" W with a south line of this tract and the north line of said called 1 acre tract, a distance of 208.71 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northwest corner of said called 1 acre tract. THENCE S 01° 38' 26" E with an east line of this tract and the west line of said called 1 acre tract, a distance of 208.71 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southwest corner of said called 1 acre tract, in the north line of said called 102.152 acre tract. THENCE S 88° 21' 40" W with a south line of this tract and the north line of said called 102.152 acre tract, a distance of 2,021.97 feet to the line of mean higher high water on the San Jacinto River. THENCE meandering the line of mean higher high water along the left bank of the San Jacinto River, the following bearings and distances: N 53° 39' 19" W 446.94 feet N 59° 28' 06" W 369.78 feet N 32° 15' 28" W 88.34 feet N 50° 54' 05" W 129.34 feet N 43° 04' 40" W 188.13 feet N 45° 19' 17" W 78.88 feet N 27° 03' 34" W 250.17 feet N 13° 49' 11" W 192.54 feet N 13° 56' 26" W 103.14 feet N 00° 46' 29" E 503.45 feet N 03° 28' 48" E 224.28 feet N 03° 58' 09" E 246.51 feet N 01° 50' 57" E 180.18 feet N 04° 57' 15" E 202.55 feet N 07° 14' 24" E 177.80 feet N 12° 57' 35" E 166.40 feet N 07° 38' 19" E 108.67 feet N 08° 55' 16" E 130.31 feet N 04° 27' 32" E 158.34 feet N 20° 09' 17" E 102.98 feet N 15° 38' 50" E 168.56 feet N 08° 04' 25" W 320.01 feet N 24° 35' 18" W 119.21 feet N 25° 33' 04" W 239.12 feet THENCE N 32° 33' 43" W continuing along the line of mean higher high water on the left bank of the San Jacinto River, a distance of 117.10 feet to a point at the southwest corner of said called 56.50 acre tract and a southerly northwest corner of this tract. THENCE N 59° 33' 11" E with the south line of said called 56.50 acre tract and a north line of this tract, a distance of 834.87 feet to a 1" iron pipe found at the southeast corner of said called 56.50 acre tract and an interior corner of this tract. THENCE N 22° 44' 35" E with the southerly east line of said called 56.50 acre tract and a northerly west line of this tract, a distance of 1,342.07 feet to the PLACE OF BEGINNING, containing 991.55 acres. TRACT III BEGINNING at a 1" iron pipe found in the south line of the Absalom Reeves Survey, Abstract 60, and the north line of said Abstract 838, in the west line of a called 167.305 acre tract recorded in File No. 2010010605, Deed Records of Harris County, Texas, at the southeast corner of a called 60.0765 acre tract recorded in File No. U922164, Deed Records of Harris County, Texas, and at the northeast corner of this tract. Said 1" iron pipe has a Texas State Plane coordinate value of N: 13910927.97 and E: 3206944.66. THENCE S 02° 37' 23" E (Called S 02° 37' 21" E) with the west line of said called 167.305 acre tract and the east line of this tract, a distance of 1,434.17 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southwest corner of said 167.305 acre tract. THENCE S 87° 47' 10" E with the south line of said called 167.305 acre tract and a north line of this tract, a distance of 51.63 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set in the north right of way of Diamondhead Boulevard North, (100 feet wide R.O.W.), at the northwest corner of Newport Subdivision, Section 10, a subdivision recorded in Volume 220, Page 76, Map Records of Harris County, Texas. THENCE S 02° 12' 50" W with a west line of said Section 10 and an east line of this tract, a distance of 100.00 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set in the south right of way line of said Diamondhead Boulevard North, at a northerly southwest corner of said Section 10. THENCE S 87° 47' 10" E with the south right of way line of said Diamondhead Boulevard North, a northerly south line of said Section 10, and a north line of this tract, a distance of 37.06 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the intersection of the south right of way line of said Diamondhead Boulevard North, and the west right of way line of Golf Club Drive (100 feet wide R.O.W.) in a west line of said Section 10. THENCE S 42° 47' 10" E with the west right of way of said Golf Club Drive, the west line of said Section 10 and the east line of this tract, a distance of 14.14 feet to a 1/2 inch iron rod with cap set marked "SHINE 5502". THENCE S 01° 07' 10" E continuing with the west right of way of said Golf Club Drive, the west line of said Section 10 and the east line of this tract, a distance of 183.64 feet to a 1/2 inch iron rod with cap set marked "SHINE 5502". THENCE continuing with the west right of way of said Golf Club Drive, the west line of said Section 10 and the east line of this tract, with the arc of a curve to the right having a radius of 1,950.00 feet and a central angle of 20° 00' 00", a distance of 680.68 feet to a 1/2 inch iron rod with cap set marked "SHINE 5502". THENCE S 22° 12' 50" W continuing with the west right of way of said Golf Club Drive, the west line of said Section 10 and the east line of this tract, a distance of 660.85 feet to a 1/2 inch iron rod with cap set marked "SHINE 5502". THENCE continuing with the west right of way of said Golf Club Drive, the west line of said Section 10 and the east line of this tract, with the arc of a curve to the left having a radius of 3,050.00 feet and a central angle of 45° 06' 00", a distance of 2,400.79 feet to a 1/2 inch iron rod with cap set marked "SHINE 5502". THENCE S 22° 57' 10" E continuing with the west right of way of said Golf Club Drive, the west line of said Section 10 and the east line of this tract, a distance of 714.81 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northeast corner of a called 3.3685 acre tract recorded in File No. N409807, Deed Records of Harris County, Texas, and the most easterly southeast corner of this tract. THENCE S 74° 57' 26" W with the north line of said called 3.3685 acre tract and a south line of this tract, a distance of 170.16 feet to a 1/2 inch iron rod with cap set marked "SHINE 5502". THENCE S 38° 21' 36" W continuing with the north line of said called 3.3685 acre tract and a south line of this tract, a distance of 375.28 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southerly northeast corner of a called 53.17 acre tract recorded in File No. U652009, Deed Records of Harris County, Texas, and a southeast corner of this tract, from which a 1/2 inch iron rod found at the southeast corner of said called 53.17 acre tract and the southwest corner of said called 3.3685 acre tract bears S 38° 21' 38" W, a distance of 10.86 feet. THENCE N 75° 29' 31" W with a southerly north line of said called 53.17 acre tract and a south line of this tract, a distance of 577.95 feet to an iron rod with cap marked "TERRA SURVEYING" found at a southerly northeast corner of said called 53.17 acre tract, and an interior corner of this tract. THENCE N 05° 37' 30" E with the east line of said called 53.17 acre tract and a west line of this tract, a distance of 480.74 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE N 08° 08' 01" E continuing with the east line of said called 53.17 acre tract and a west line of this tract, a distance of 825.65 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE continuing with the east line of said called 53.17 acre tract and a west line of this tract, with the arc of a curve to the left having a radius of 250.61 feet and a central angle of 98° 17' 48", a distance of 429.95 feet to an iron rod with cap marked "TERRA SURVEYING" found at the northeast corner of said called 53.17 acre tract. THENCE N 89° 04' 41" W with the north line of said called 53.17 acre tract and a south line of this tract, a distance of 407.72 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE S 74° 12' 35" W continuing with the north line of said called 53.17 acre tract and a south line of this tract, a distance of 412.92 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE S 71° 17' 47" W continuing with the north line of said called 53.17 acre tract and a south line of this tract, a distance of 313.23 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE S 64° 30' 39" W continuing with the north line of said called 53.17 acre tract and a south line of this tract, a distance of 250.16 feet to an iron rod with cap marked "TERRA SURVEYING" found at the northwest corner of said called 53.17 acre tract and an interior corner of this tract. THENCE S 30° 45' 58" W with the west line of said called 53.17 acre tract and an east line of this tract, a distance of 938.35 feet to an iron rod found with cap marked "TERRA SURVEYING" from which a 1 1/4 inch iron pipe found in the south line of said called 53.17 acre tract and the north line of The San Jacinto River Authority East Canal tract, recorded in Volume 1294, Page 256, Deed Records of Harris County, Texas bears S 76° 55' 49" E a distance of 700.71 feet. THENCE S 38° 36' 07" E continuing with the west line of said called 53.17 acre tract and an east line of this tract, a distance of 330.48 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE S 50° 28' 00" W continuing with the west line of said called 53.17 acre tract and an east line of this tract, a distance of 392.70 feet to an iron rod found with cap marked "TERRA SURVEYING". THENCE S 34° 53' 53" E continuing with the west line of said called 53.17 acre tract and an east line of this tract, a distance of 54.47 feet to an iron rod with cap marked "TERRA SURVEYING" found at the southwest corner of said called 53.17 acre tract, in a north line of Horizon Drive, a dedicated public road in Newport Subdivision, Section 4, a subdivision recorded in Volume 198, Page 53, Map Records of Harris County, Texas, and at a southeast corner of this tract, from which a 1 1/4 inch iron pipe found in the south line of said called 53.17 acre tract and the north line of said East Canal tract bears N 51° 21' 56" E a distance of 512.15'. THENCE S 51° 21' 08" W along a north line of said Section 4, a north line of said San Jacinto River Authority East Canal Tract, and a south line of this tract, at a distance of 51.71 feet pass a northwest corner of said Horizon Drive and Section 4 and continuing a total distance of 605.52 feet to a 1" iron pipe found. THENCE continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, with the arc of a curve to the left having a radius of 415.36 feet and a central angle of 17° 54' 23", a distance of 129.81 feet to a 1 1/2 inch iron pipe found. THENCE S 32° 37' 00 W continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract a distance of 1,291.52 feet to a 1 1/4 inch iron pipe found. THENCE continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, with the arc of a curve to the right having a radius of 174.95 feet and a central angle of 39° 20' 42", a distance of 174.95 feet to a 1 inch iron pipe found. THENCE S 72° 28' 08" W continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, a distance of 2,448.06 feet to a 1 1/4 inch iron pipe found. THENCE continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, with the arc of a curve to the left having a radius of 333.37 feet and a central angle of 04° 24' 34", a distance of 25.66 feet to a 1 1/4 inch iron pipe found. THENCE S 68° 53' 17" W continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, a distance of 1,832.09 feet to a 1 1/4 inch iron pipe found. THENCE continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, with the arc of a curve to the right having a radius of 144.47 feet and a central angle of 53° 20' 45", a distance of 134.51 feet to a 1 1/4" iron pipe found. THENCE N 57° 13' 44" W continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, a distance of 1,587.58 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, with the arc of a curve to the left having a radius of 402.67 feet and a central angle of 30° 10' 09", a distance of 212.03 feet to a 1/2 inch iron rod set with cap marked "SHINE 5502". THENCE N 87° 29' 31" W continuing along a north line of said San Jacinto River Authority East Canal and a south line of this tract, a distance of 224.45 feet to a 1/2 inch iron rod found at an interior corner of said San Jacinto River Authority East Canal and an interior corner of this tract. THENCE along an east line of said San Jacinto River Authority East Canal and a west line of this tract, with the arc of a curve to the right having a radius of 133.99 feet and a central angle of 63° 17' 53", a distance of 148.03 feet to a 1/2 inch iron rod found in the north line of said Humphrey Jackson Survey, Abstract 37 and the south line of said William Wilson Survey, Abstract 838. THENCE N 24° 23' 35" W along an east line of said San Jacinto River Authority East Canal and a west line of this tract, a distance of 375.95 feet to a 1" iron pipe found. THENCE continuing along an east line of said San Jacinto River Authority East Canal and a west line of this tract, with the arc of a curve to the right having a radius of 174.87 feet and a central angle of 37° 53' 54", a distance of 115.67 feet to a 1 1/4" iron pipe found. THENCE N 14° 24' 42" E continuing along an east line of said San Jacinto River Authority East Canal and a west line of this tract, a distance of 74.82 feet to a 1 1/4" iron pipe found. THENCE continuing along an east line of said San Jacinto River Authority East Canal and a west line of this tract, with the arc of a curve to the right having a radius of 661.43 feet and a central angle of 07° 01' 58", a distance of 81.19 feet to a 1 1/4" iron pipe found. THENCE N 12°17' 19" E continuing along the east line of said San Jacinto River Authority East Canal and a west line of this tract, a distance of 436.82 feet to a 5/8" iron rod found at a northeast corner of said San Jacinto River Authority East Canal, in the south line of a called 39.88 acre tract recorded in File No. T525349, Deed Records of Harris County, Texas and at an interior corner of this tract, from which a 1 1/4" iron pipe found in a north line of said San Jacinto River Authority East Canal tract and the south line of said called 39.88 acre tract bears N 77° 36' 49" W, a distance of 621.39 feet. THENCE S 77° 42' 29" E with the south line of said called 39.88 acre tract and a north line of this tract, a distance of 294.05 feet to a 5/8" iron rod found at the southeast corner of said called 39.88 acre tract. THENCE N 09° 46' 40" E with the east line of said called 39.88 acre tract and a west line of this tract, a distance of 950.00 feet to a 1/2" iron rod found. THENCE N 10° 53' 20" W continuing with the east line of said called 39.88 acre tract, and the west line of this tract, a distance of 394.97 feet to a 1/2" iron rod found at the northeast corner of said called 39.88 acre tract. THENCE N 80° 21' 03" W with the north line of said called 39.88 acre tract and a south line of this tract, a distance of 1,359.57 feet to a point in an east line of called 589.27 acre tract (Lake Houston) recorded in Volume 1458, Page 1, and a west line of this tract. Volume 1458, Page 1 describes this point as being the waterline of the proposed reservoir when at normal pool level at elevation 44.5 feet above mean sea level. THENCE with the west line of this tract and an east line of said called 589.27 acre tract (Lake Houston), the following bearings and distances: N 30° 53' 29" E 376.74 feet N 21° 32' 39" E 300.00 feet N 06° 45' 39" E 864.00 feet N 19° 56' 19" W 882.88 feet N 07° 44' 21" W 184.00 feet THENCE N 52° 28' 21" W continuing with the west line of this tract and the east line of said called 589.27 acre tract (Lake Houston), a distance of 508.00 feet to a point from which a 12"x12" concrete monument found with Aluminum Disc marked "Corp of Engineers U.S. Boundary Mark SL-1 Y1977" bears N 25° 14' 05" W a distance of 59.32 feet. Said concrete monument has a State Plane coordinate value of N: 13907978.68 and E: 3195354.41 THENCE continuing with the west line of this tract and an east line of said called 589.27 acre tract (Lake Houston), the following bearings and distances: N 65° 40' 21" W 422.00 feet N 80° 22' 21" W 300.00 feet N 62° 47' 53" W 641.05 feet N 60° 37' 21" W 600.00 feet N 88° 15' 21" W 540.00 feet S 84 ° 47' 39" W 568.00 feet S 69° 42' 54" W 633.02 feet S 83° 28' 39" W 332.00 feet N 77° 42' 21" W 270.00 feet N 13° 14' 21" W 739.00 feet N 28° 22' 21" W 402.00 feet THENCE N 21° 29' 39" E continuing with the west line of this tract and an east line of said called 589.27 acre tract (Lake Houston), a distance of 394.76 feet to a point in the south line of Lake Shadows Section Four, a subdivision recorded in File No. D620201, Map Records of Harris County, Texas, and at the northwest corner of this tract. THENCE N 86° 32' 15" E with the south line of said Lake Shadows Section Four and the north line of this tract, at a distance of 204.97 feet pass a 1/2" iron rod found, and continuing a total distance of 689.12 feet to a point in a concrete slab at the southeast corner of said Lake Shadows Section Four, the southwest corner of a called 447.0498 acre tract recorded in File No. D759681, Deed Records of Harris County, Texas, and an interior corner of this tract from which a 1/2 " iron rod with cap marked "SHINE 5502" set for reference bears S 04° 44' 22" W a distance of 1.88 feet, a 1" iron pipe found bears N 79° 27' 48" E a distance of 101.22 feet, and a 1/2" iron rod found in the east line of said Lake Shadows Section Four bears N 33° 33' 38" E a distance of 254.84 feet. THENCE N 86° 43' 31" E with the south line of said called 447.0498 acre tract and a north line of this tract, a distance of 10,942.13 feet to a 1/2 inch iron rod next to a 4"x6" fence post found at the southeast corner of said called 447.0498 acre tract and an interior corner of this tract. THENCE N 02° 07' 50" W with the east line of said called 447.0498 acre tract and a northerly west line of this tract a distance of 26.79 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southwest corner of a called 0.1148 acre tract recorded in File No. T653706, Deed Records of Harris County, Texas and a northwest corner of this tract. THENCE N 87° 22' 21" E with the south line of said called 0.1148 acre tract and a north line of this tract, at a distance of 50.02 feet pass the southeast corner of said called 0.1148 acre tract recorded in File No. T653706 and the southwest corner of a called 0.1148 acre tract recorded in File No. T702499, Deed Records of Harris County, Texas, at a distance of 100.02 feet, pass the southeast corner of said called 0.1148 acre tract recorded in File No. T702499 and the southwest corner of a called 0.1148 acre tract recorded in File No. T643967, at a distance of 150.02 feet pass the southeast corner of said called 0.1148 acre tract recorded in File No. T643967 and the southwest corner of a called 0.1148 acre tract recorded in File No. T491404, Deed Records of Harris County, Texas, at a distance of 200.02 feet pass the southeast corner of said called 0.1148 acre tract recorded in File No. T491404 and the southwest corner of a called 0.1148 acre tract recorded in File No. T526225, Deed Records of Harris County, Texas, and continuing a total distance of 250.02 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the southeast corner of said called 0.1148 acre tract recorded in File No. T526225 and an interior corner of this tract. THENCE N 02° 37' 39" W with the east line of said called 0.1148 acre tract recorded in File No. T526225 and a west line of this tract, a distance of 100.00 feet to a 1/2 inch iron rod with cap marked "SHINE 5502" set at the northeast corner of said called 0.1148 acre tract recorded in File No. T526225, in the south line of a called 5.00 acre tract recorded in File No. T684273, Deed Records of Harris County, Texas, in the South line of the Hannah Nash Survey, Abstract 599, in the north line of said Abstract 838, and at a northwest corner of this tract. THENCE N 87° 02' 53" E with the south line of said Abstract 599, the north line of said Abstract 838, the south line of said called 5.00 acre tract and the north line of this tract a distance of 316.67 feet to a 1/2 inch iron rod found at the southeast corner of said Abstract 599, the southwest corner of said Abstract 60, the southeast corner of said called 5.00 acre tract and the southwest corner of a called 45 acre tract recorded in File No. 20080119197, Deed Records of Harris County, Texas. THENCE N 87° 24' 37" E with the south line of said called 45 acre tract, the south line of said Abstract 60, the north line of said Abstract 838 and the north line of this tract, a distance of 986.97 feet to a 1/2 inch iron rod found at the southeast corner of said called 45 acre tract, the southwest corner of a called 8.39 acre tract recorded in File No. 20070675831, Deed Records of Harris County, Texas, and a northerly corner of this tract. THENCE N 87° 48' 26" E with the south line of said 8.339 acre tract, the south line of said Abstract 60, the north line of said Abstract 838 and the north line of this tract, at a distance of 150.00 feet pass the southeast corner of said called 8.39 acre tract and the southwest corner of a called 11.675 acre tract recorded in File No. 20070675831, Deed Records of Harris County, Texas, and continuing a total distance of 359.69 feet to a 1/2 inch iron rod found at the southeast corner of said called 11.675 acre tract and the southwest corner of a called 155.76 acre tract recorded in Volume 438, Page 236, Deed Records of Harris County, Texas. THENCE N 87° 20' 09" E with the south line of said Abstract 60, the north line of said Abstract 838, the south line of said called 155.76 acre tract and the north line of this tract, a distance of 682.33 feet to a 1/2 inch iron rod found next to a 8"x8" square fence post at the southeast corner of said called 155.76 acre tract and the southwest corner of a called 29.15 acre tract recorded in File No. R106573, Deed Records of Harris County, Texas. THENCE N 87° 24' 00" E with the south line of said Abstract 60, the north line of said Abstract 838, the south line of said called 29.15 acre tract and the north line of this tract, and at a distance of 525.51 feet pass the southeast corner of said called 29.15 acre tract and the southwest corner of said called 60.0765 acre tract, and continuing with the south line of said Abstract 60, the north line of said Abstract 838, the south line of said called 60.0765 acre tract and the north line of this tract, a total distance of 1648.87 feet to the PLACE OF BEGINNING, containing 1,942.08 acres 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, 2017. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 2276 passed the Senate on May 19, 2017, by the following vote: Yeas 30, Nays 1; and that the Senate concurred in House amendment on May 28, 2017, by the following vote: Yeas 28, Nays 2. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 2276 passed the House, with amendment, on May 24, 2017, by the following vote: Yeas 138, Nays 8, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor Pos. No. Name of Director: 1 ____________________ 2 ____________________ 3 ____________________ 4 ____________________ 5 ____________________